The earned income tax credit (EITC) is a refundable credit based on taxpayers' earnings and number of children. Because the credit is refundable, taxpayers who qualify for the EITC receive a payment if the credit exceeds the rest of their tax liability.
Taxes for Low-Income Households (EITC)
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Growth in Means-Tested Programs and Tax Credits for Low-Income HouseholdsFeb 2013 - During the past 40 years, federal spending for major means-tested programs and tax credits for low-income households more than tripled as a share of gross domestic product. In 2012, such spending totaled $588 billion.
Refundable Tax CreditsJan 2013 - The number and cost of refundable tax credits have grown considerably since 1975. Federal costs (in 2013 dollars) peaked at $238 billion in 2008, but costs will fall to $149 billion in 2013, CBO projects, before reaching $213 billion in 2021.
Effective Marginal Tax Rates for Low- and Moderate-Income WorkersNov 2012 - Effective marginal tax rates among low- and moderate-income workers are about 30 percent, on average, with about one-third of that rate stemming from the federal income tax, more than a third from federal payroll taxes, and the remainder from state income taxes and the phaseout of SNAP benefits.
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Testimony on Means-Tested Programs and Tax Credits for Low-Income Households
reportJune 18, 2013Growth in Means-Tested Programs and Tax Credits for Low-Income Households
reportFebruary 11, 2013Refundable Tax Credits
reportJanuary 24, 2013Offsetting Costs of a Carbon Tax on Low-Income Households
presentationNovember 16, 2012Effective Marginal Tax Rates for Low- and Moderate-Income Workers
reportNovember 15, 2012CBO Releases a Report on Effective Marginal Tax Rates for Low- and Moderate-Income Workers
blog postNovember 15, 2012Illustrative Examples of Effective Marginal Tax Rates Faced by Married and Single Taxpayers: Supplemental Material for Effective Marginal Tax Rates for Low- and Moderate-Income Workers
data or technical informationNovember 15, 2012Offsetting a Carbon Tax’s Costs on Low-Income Households: Working Paper 2012-16
working paperNovember 13, 2012
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