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)
Feb 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.
Jan 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.
Nov 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.
- reportFebruary 11, 2013
- reportJanuary 24, 2013
- presentationNovember 16, 2012
- reportNovember 15, 2012
- blog postNovember 15, 2012
Illustrative Examples of Effective Marginal Tax Rates Faced by Married and Single Taxpayers: Supplemental Material for Effective Marginal Tax Rates for Low- and Moderate-Income Workersdata or technical informationNovember 15, 2012
- working paperNovember 13, 2012
- blog postOctober 25, 2012
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