Earned Income Tax Credit

2013 ◽  
Author(s):  
Melinda Lewis ◽  
Sondra G. Beverly
Keyword(s):  
Social Workers ◽  
Income Tax ◽  
Earned Income Tax Credit ◽  
Political Support ◽  
Tax Credit ◽  
Policy Changes ◽  
Earned Income ◽  
Working Families ◽  
Families With Children ◽  
The Impact

The federal Earned Income Tax Credit (EITC) is a refundable tax credit for working families with low and moderate incomes. The credit provides a substantial income supplement to families with children and thus helps families finance basic necessities or invest in longer-term household development. In recent years, political support for the EITC has declined. Social workers should be prepared to advocate against policy changes that would reduce the impact of the EITC. Social workers could also support EITC outreach campaigns and advocate for more and expanded state EITCs.

scholarly journals Billions Lost Yearly To Earned Income Tax Credit: Errors Or Fraud?

2016 ◽  
Vol 14 (4) ◽  
pp. 145-152 ◽  
Author(s):  
Joel Barker ◽  
Chadrick Frederick
Keyword(s):  
Income Tax ◽  
Earned Income Tax Credit ◽  
Tax Credit ◽  
Due Diligence ◽  
Poverty Level ◽  
Earned Income ◽  
Professional Skepticism ◽  
Head Of Household ◽  
Working Families ◽  
Families With Children

The Earned Income Tax Credit is a refundable credit designed to assist working families with children; especially those who are considered to be living at or close to the poverty level. Over the last decade billions of dollars have been lost due to the improper application and fraudulent claims of the Earned Income Tax Credit (EITC). Critics believe that the program no longer serves its intended function because of the cumulative increase in the amounts lost each year; the legislation needs a major overhaul. The IRS have claimed that over 60 percent of the overpayments of EITC is due to manipulation of self-employed income and expenses, unqualified dependents being claimed, and misuse of single and head of household filing status. Even though the penalties for fraud and the lack of exercising due diligence are severe, these crimes continue to occur. While the tax authorities and other legislative bodies explore ways to combat these fraudulent claims, CPAs and other tax-preparers can assist in the fight against these crimes. As the de facto gatekeepers of the tax revenues, they are encouraged to exercise intensive due diligence and professional skepticism when claiming EITC for their clients. 

scholarly journals The Impact of Family Income on Child Achievement: Evidence from the Earned Income Tax Credit

2012 ◽  
Vol 102 (5) ◽  
pp. 1927-1956 ◽  
Author(s):  
Gordon B Dahl ◽  
Lance Lochner
Keyword(s):  
Income Tax ◽  
Family Income ◽  
Causal Effect ◽  
Earned Income Tax Credit ◽  
Tax Credit ◽  
Earned Income ◽  
Short Run ◽  
Reading Test Scores ◽  
Run Test ◽  
The Impact

Using an instrumental variables strategy, we estimate the causal effect of income on children's math and reading achievement. Our identification derives from the large, nonlinear changes in the Earned Income Tax Credit. The largest of these changes increased family income by as much as 20 percent, or approximately $2,100, between 1993 and 1997. Our baseline estimates imply that a $1,000 increase in income raises combined math and reading test scores by 6 percent of a standard deviation in the short run. Test gains are larger for children from disadvantaged families and robust to a variety of alternative specifications. (JEL H24, H31, I21, I38, J13)

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