EITC Use in Shared Placement Cases

2016 ◽  
Vol 46 (3) ◽  
pp. 327-358
Author(s):  
Hsueh-Hsiang Li ◽  
John Karl Scholz ◽  
Patricia R. Brown
Keyword(s):  
Unemployment Insurance ◽  
Low Income ◽  
Income Tax ◽  
Cost Effective ◽  
Court Order ◽  
Data Set ◽  
Earned Income ◽  
Unique Data ◽  
Working Families ◽  
Tax Returns

We use a unique data set containing information from state individual income tax returns, Wisconsin unemployment insurance wage data, and data collected by hand from Wisconsin courthouses to examine the earned income tax credit (EITC) usage by divorced men and women with children. We show that a large percentage of divorced adults with children file tax returns. Moreover, many receive the EITC benefit through the tax system, which results in substantial additional resources for the household. We find little evidence of divorced parents engaging in strategic allocations of their children to maximize EITC claims. We also find that many EITC-eligible low-income parents fail to claim it. A potentially cost-effective way to increase the resources available to low-income working families is to provide easy-to-understand information on child-related provisions in the tax code at the time the court order is established.

scholarly journals State Earned Income Tax Credit policies and intimate partner homicide in the USA, 1990–2016

2020 ◽  
Vol 26 (6) ◽  
pp. 562-565
Author(s):  
Caitlin A Moe ◽  
Avanti Adhia ◽  
Stephen J Mooney ◽  
Heather D Hill ◽  
Frederick P Rivara ◽  
...  
Keyword(s):  
Low Income ◽  
Income Tax ◽  
Intimate Partner ◽  
Earned Income Tax Credit ◽  
Cash Transfer ◽  
Adult Women ◽  
Tax Credit ◽  
Intimate Partner Homicide ◽  
Earned Income ◽  
The Usa

Economic insecurity is a risk factor for intimate partner homicide (IPH). The Earned Income Tax Credit (EITC) is the largest cash transfer programme to low-income working families in the USA. We hypothesised that EITCs could provide financial means for potential IPH victims to exit abusive relationships and establish self-sufficiency. We conducted a national, quasiexperimental study of state EITCs and IPH rates in 1990–2016 using a difference-in-differences approach. The national rate of IPH decreased from 1.9 per 100 000 adult women in 1990 to 1.3 per 100 000 in 2016. We found no statistically significant association between state EITC generosity and IPH rates (coefficient indicating change in IPH rates per 100 000 adult female years for additional 10% in amount of state EITC, measured as the percentage of federal EITC: 0.02, 95% CI −0.03 to 0.08). Financial control associated with abuse and current EITC eligibility rules may prevent potential IPH victims from accessing the EITC.

scholarly journals The EITC, Tax Refunds, and Unemployment Spells

2013 ◽  
Vol 5 (2) ◽  
pp. 188-221 ◽  
Author(s):  
Sara LaLumia
Keyword(s):  
Low Income ◽  
Income Tax ◽  
Time Frame ◽  
Earned Income Tax Credit ◽  
Unemployment Duration ◽  
Tax Credit ◽  
Earned Income ◽  
Tax Refunds ◽  
Unemployment Spells ◽  
Exogenous Source

The earned income tax credit generates large average tax refunds for low-income parents, and these refunds are distributed in a narrow time frame. I rely on this plausibly exogenous source of variation in liquidity to investigate the effect of cash on hand on unemployment duration. Among EITC-eligible women, unemployment spells beginning just after tax refund receipt last longer than unemployment spells beginning at other times of year. There is no evidence that tax refund receipt is associated with longer unemployment duration for men, or that the longer durations for women are associated with higher-quality subsequent job matches. (JEL H24, J64)

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 Rent-To-Own Agreements: Purchases Or Rentals?

2011 ◽  
Vol 20 (1) ◽  
Author(s):  
Michael H. Anderson ◽  
Raymond Jackson
Keyword(s):  
Low Income ◽  
Font Size ◽  
Short Term ◽  
Data Set ◽  
Unique Data ◽  
High Interest ◽  
Financially Distressed ◽  
Credit Check ◽  
Small Periodic ◽  
Common Perception

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">The rent-to-own (RTO) business has emerged as an important component of the retailing sector. By offering immediate access to household goods for a small periodic fee without a credit check or down payment, RTO has strong appeal to low income and financially distressed consumers.<span style="mso-spacerun: yes;">&nbsp; </span>A common perception of RTO is that they are disguised, high-interest installment agreements as most consumers eventually acquire the contracted merchandise by making all scheduled payments. We examine the nature of these agreements by using a unique data set of more than 350 thousand transactions drawn from 100 RTO stores in 46 states. Our main result, derived from an analysis of disposition and duration, is that RTO agreements are more frequently used for short-term needs rather than as a method of acquisition.<span style="mso-spacerun: yes;">&nbsp; </span>Legislative and legal efforts to classify RTO agreements as primarily installment contracts cannot be justified by their pattern of use in the marketplace.<span style="mso-spacerun: yes;">&nbsp; </span></span></span></p>

Moving Forward with the Earned Income Tax Credit and Child Tax Credit: Analysis of Proposals to Expand Refundable Tax Credits

2020 ◽  
Vol 73 (4) ◽  
pp. 1163-1186
Author(s):  
Elaine Maag ◽  
Nikhita Airi
Keyword(s):  
Low Income ◽  
Income Tax ◽  
Large Scale ◽  
The Elderly ◽  
Earned Income Tax Credit ◽  
Tax Credits ◽  
Tax Credit ◽  
Earned Income ◽  
Low Income Children ◽  
Child Tax Credit

Policymakers grapple with the related issues of unequal incomes, relatively poor health, education, and economic outcomes for low-income children, and hardship among low- and moderate-income families. Refundable tax credits provide substantial support and relief to many. This analysis details who benefits from the earned income tax credit (EITC) and the child tax credit (CTC) and four large-scale tax credit proposals that would provide substantial and ongoing benefits through these or similar credits. Broadly, proposals focused on children exclude childless adults and the elderly, and proposals focused on work exclude nonworkers, including most of the elderly, but include many workers with children.

The Obama administration’s vision

2017 ◽  
Author(s):  
Anne Daguerre
Keyword(s):  
Health Care ◽  
Low Income ◽  
Income Tax ◽  
Access To Health Care ◽  
Educational Opportunities ◽  
Social Investment ◽  
Earned Income ◽  
Access To Health ◽  
Antipoverty Programs ◽  
Temporary Assistance

This chapter seeks to define the Obama administration's vision for American social policy. It argues that Obama’s policies were based on a moderate left-leaning modernizing effort through the expansion of existing antipoverty programs, Temporary Assistance for Needy Families (TANF), food stamps, Earned Income Tax Credit and unemployment insurance. The Affordable Care Act (2010) was the most significant antipoverty initiative of the Obama presidency. The administration was committed to a moderate social investment approach centered on expanding educational opportunities and generalizing access to health care, especially for low income Americans.

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