{ "id": "R43805", "type": "CRS Report", "typeId": "R", "number": "R43805", "active": true, "source": "CRSReports.Congress.gov, EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source_dir": "crsreports.congress.gov", "title": "The Earned Income Tax Credit (EITC): How It Works and Who Receives It", "retrieved": "2023-12-24T04:03:36.782063", "id": "R43805_17_2023-11-14", "formats": [ { "filename": "files/2023-11-14_R43805_5d8c9a3dd1de08f0afca710c06b20f27de2ea19d.pdf", "format": "PDF", "url": "https://crsreports.congress.gov/product/pdf/R/R43805/17", "sha1": "5d8c9a3dd1de08f0afca710c06b20f27de2ea19d" }, { "format": "HTML", "filename": "files/2023-11-14_R43805_5d8c9a3dd1de08f0afca710c06b20f27de2ea19d.html" } ], "date": "2023-11-14", "summary": null, "source": "CRSReports.Congress.gov", "typeId": "R", "active": true, "sourceLink": "https://crsreports.congress.gov/product/details?prodcode=R43805", "type": "CRS Report" }, { "source_dir": "crsreports.congress.gov", "title": "The Earned Income Tax Credit (EITC): How It Works and Who Receives It", "retrieved": "2023-12-24T04:03:36.780712", "id": "R43805_15_2021-01-12", "formats": [ { "filename": "files/2021-01-12_R43805_29742d25f431b0be4428b6ede6dfab501f130cd2.pdf", "format": "PDF", "url": "https://crsreports.congress.gov/product/pdf/R/R43805/15", "sha1": "29742d25f431b0be4428b6ede6dfab501f130cd2" }, { "format": "HTML", "filename": "files/2021-01-12_R43805_29742d25f431b0be4428b6ede6dfab501f130cd2.html" } ], "date": "2021-01-12", "summary": null, "source": "CRSReports.Congress.gov", "typeId": "R", "active": true, "sourceLink": "https://crsreports.congress.gov/product/details?prodcode=R43805", "type": "CRS Report" }, { "source_dir": "crsreports.congress.gov", "title": "The Earned Income Tax Credit (EITC): How It Works and Who Receives It", "retrieved": "2023-12-24T04:03:36.780183", "id": "R43805_14_2020-10-05", "formats": [ { "filename": "files/2020-10-05_R43805_393ce426cf473a7caf9d8cb1637d0c64d152e198.pdf", "format": "PDF", "url": "https://crsreports.congress.gov/product/pdf/R/R43805/14", "sha1": "393ce426cf473a7caf9d8cb1637d0c64d152e198" }, { "format": "HTML", "filename": "files/2020-10-05_R43805_393ce426cf473a7caf9d8cb1637d0c64d152e198.html" } ], "date": "2020-10-05", "summary": null, "source": "CRSReports.Congress.gov", "typeId": "R", "active": true, "sourceLink": "https://crsreports.congress.gov/product/details?prodcode=R43805", "type": "CRS Report" }, { "source_dir": "crsreports.congress.gov", "title": "The Earned Income Tax Credit (EITC): How It Works and Who Receives It", "retrieved": "2023-12-24T04:03:36.777579", "id": "R43805_11_2020-08-07", "formats": [ { "filename": "files/2020-08-07_R43805_a30f63da5d0d929ed9e6d90ffa848ff59e9b41c2.pdf", "format": "PDF", "url": "https://crsreports.congress.gov/product/pdf/R/R43805/11", "sha1": "a30f63da5d0d929ed9e6d90ffa848ff59e9b41c2" }, { "format": "HTML", "filename": "files/2020-08-07_R43805_a30f63da5d0d929ed9e6d90ffa848ff59e9b41c2.html" } ], "date": "2020-08-07", "summary": null, "source": "CRSReports.Congress.gov", "typeId": "R", "active": true, "sourceLink": "https://crsreports.congress.gov/product/details?prodcode=R43805", "type": "CRS Report" }, { "source": "EveryCRSReport.com", "id": 584784, "date": "2018-04-18", "retrieved": "2018-09-12T23:05:30.623551", "title": "The Earned Income Tax Credit (EITC): An Overview", "summary": "The Earned Income Tax Credit (EITC) is a refundable tax credit available to eligible workers earning relatively low wages. Because the credit is refundable, an EITC recipient need not owe taxes to receive the benefit. Eligibility for and the amount of the EITC are based on a variety of factors, including residence and taxpayer ID requirements, the presence of qualifying children, age requirements for childless recipients, and the recipient\u2019s investment income and earned income. Tax filers with income above certain thresholds\u2014these thresholds are based on marital status and number of qualifying children\u2014are ineligible for the credit.\nThe EITC varies based on a recipient\u2019s earnings. Specifically, the EITC equals a fixed percentage (the \u201ccredit rate\u201d) of earned income until the credit amount reaches its maximum level. The EITC then remains at its maximum level over a subsequent range of earned income, between the \u201cearned income amount\u201d and the \u201cphase-out amount threshold.\u201d Finally, the credit gradually decreases to zero at a fixed rate (the \u201cphase-out rate\u201d) for each additional dollar of adjusted gross income (AGI) (or earned income, whichever is greater) above the phase-out amount threshold. The specific values of these EITC parameters (e.g., credit rate, earned income amount) vary depending on several factors, including the number of qualifying children a tax filer has and his or her marital status. For the 2018 tax year, the maximum EITC for a tax filer without children is $519 per year. In contrast, the 2018 maximum EITC for a tax filer with one child is $3,461 per year; for two children, $5,716 per year; and for three or more children, $6,431 per year. \nTwo temporary modifications to the EITC were enacted as part of the American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5), extended by P.L. 111-312 and P.L. 112-240, and made permanent by the Protecting Americans from Tax Hikes (PATH) Act (Division Q of P.L. 114-113). The first modification was a larger credit for families with three or more children, while the second reduced the EITC\u2019s marriage penalty. \nThe EITC is provided to individuals and families once a year, in a lump sum payment after individuals and families file their federal income tax returns. The credit may be received in one of three ways: (1) a reduction in federal tax liability; (2) a refund from the Treasury if the tax filer has no income tax liability; or (3) a combination of a reduced federal tax liability and a refund. The amount of the credit a tax filer receives is based on the prior year\u2019s income, earnings, and family composition (marital status and number of qualifying children). That is, the EITC earned based on 2018 earned income will not be paid until 2019. \nThe EITC cannot be counted as income in determining eligibility for or the amount of any federally funded public benefit program. An EITC refund that is saved by a tax filer does not count against the resource limits of any federally funded public benefit program for 12 months after the refund is received.\nFor tax year 2015 (returns filed in 2016), a total of $68.5 billion was claimed by 28.1 million tax filers (19% of all tax filers), making the EITC the largest need-tested antipoverty cash assistance program. In that year, 97% of all EITC dollars were claimed by families with children. However, there was considerable variation in the share of returns claiming the EITC by state, with a greater share filed in certain southern states compared to other regions of the country.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R43805", "sha1": "92b2ddb59a4dd0bb4eb097df2ac078ac5900c9f5", "filename": "files/20180418_R43805_92b2ddb59a4dd0bb4eb097df2ac078ac5900c9f5.html", "images": { "/products/Getimages/?directory=R/html/R43805_files&id=/10.png": "files/20180418_R43805_images_617492e72527dba089d2ca345efcee18bb29827e.png", "/products/Getimages/?directory=R/html/R43805_files&id=/4.png": "files/20180418_R43805_images_1a712bb41c20c5f6d03104ae462d0ae7086e7b8b.png", "/products/Getimages/?directory=R/html/R43805_files&id=/8.png": "files/20180418_R43805_images_a5d12b1668a4535d9003db94d8c455ceefa26c2e.png", "/products/Getimages/?directory=R/html/R43805_files&id=/1.png": "files/20180418_R43805_images_d6fed658acf7fa58d76bada998a8cd6cfba3993c.png", "/products/Getimages/?directory=R/html/R43805_files&id=/5.png": "files/20180418_R43805_images_13e4eadcd9ae19244042701df56155d743f2f9c8.png", "/products/Getimages/?directory=R/html/R43805_files&id=/6.png": "files/20180418_R43805_images_ed8b7f74e72c20294797ad357709166703ed1782.png", "/products/Getimages/?directory=R/html/R43805_files&id=/2.png": "files/20180418_R43805_images_4a8a828f5364e19fa238d0c25db5174bab1ec5d6.png", "/products/Getimages/?directory=R/html/R43805_files&id=/3.png": "files/20180418_R43805_images_d718c9693377b3519a7a43af569f3ca9b92a4a1e.png", "/products/Getimages/?directory=R/html/R43805_files&id=/7.png": "files/20180418_R43805_images_cb72a10b10188c2c229cbd6e8e9421ef02a28d35.png", "/products/Getimages/?directory=R/html/R43805_files&id=/0.png": "files/20180418_R43805_images_6789f365e9adad5ba528ed9409047a902911187b.png", "/products/Getimages/?directory=R/html/R43805_files&id=/9.png": "files/20180418_R43805_images_7f8cfbc055c9d91dd3cb5027cbff409847239502.png" } }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R43805", "sha1": "a0b95e78cd2d82065f130f91db1af602ad4a8f35", "filename": "files/20180418_R43805_a0b95e78cd2d82065f130f91db1af602ad4a8f35.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4797, "name": "Cash Assistance" }, { "source": "IBCList", "id": 4799, "name": "Individual Tax" }, { "source": "IBCList", "id": 4824, "name": "Education, Family, & Housing Tax Policy" } ] }, { "source": "EveryCRSReport.com", "id": 460408, "date": "2017-04-11", "retrieved": "2017-08-22T15:11:04.224860", "title": "The Earned Income Tax Credit (EITC): An Overview", "summary": "The Earned Income Tax Credit (EITC) is a refundable tax credit available to eligible workers earning relatively low wages. Because the credit is refundable, an EITC recipient need not owe taxes to receive the benefit. Eligibility for and the amount of the EITC are based on a variety of factors, including residence and taxpayer ID requirements, the presence of qualifying children, age requirements for childless recipients, and the recipient\u2019s investment income and earned income. Tax filers with income above certain thresholds\u2014these thresholds are based on marital status and number of qualifying children\u2014are ineligible for the credit.\nThe EITC varies based on a recipient\u2019s earnings. Specifically, the EITC equals a fixed percentage (the \u201ccredit rate\u201d) of earned income until the credit amount reaches its maximum level. The EITC then remains at its maximum level over a subsequent range of earned income, between the \u201cearned income amount\u201d and the \u201cphase-out amount threshold.\u201d Finally, the credit gradually decreases to zero at a fixed rate (the \u201cphase-out rate\u201d) for each additional dollar of adjusted gross income (AGI) (or earnings, whichever is greater) above the phase-out amount threshold. The specific values of these EITC parameters (e.g., credit rate, earned income amount) vary depending on several factors, including the number of qualifying children a tax filer has and his or her marital status. For the 2017 tax year, the maximum EITC for a tax filer without children is $510 per year. In contrast, the 2017 maximum EITC for a tax filer with one child is $3,400 per year; for two children, $5,616 per year; and for three or more children, $6,318 per year. \nTwo temporary modifications to the EITC were enacted as part of the American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5), extended by P.L. 111-312 and P.L. 112-240, and made permanent by the Protecting Americans from Tax Hikes (PATH) Act (Division Q of P.L. 114-113). The first modification was a larger credit for families with three or more children, while the second reduced the EITC\u2019s marriage penalty. \nThe EITC is provided to individuals and families once a year, in a lump sum payment after individuals and families file their federal income tax returns. The credit may be received in one of three ways: (1) a reduction in federal tax liability; (2) a refund from the Treasury if the tax filer has no income tax liability; or (3) a combination of a reduced federal tax liability and a refund. The amount of the credit a tax filer receives is based on the prior year\u2019s income, earnings, and family composition (marital status and number of qualifying children). That is, the EITC earned based on 2017 earnings will not be paid until 2018. \nThe EITC cannot be counted as income in determining eligibility for or the amount of any federally funded public benefit program. An EITC refund that is saved by a tax filer does not count against the resource limits of any federally funded public benefit program for 12 months after the refund is received.\nFor tax year 2014 (returns filed in 2015), a total of $68.3 billion was claimed by 28.5 million tax filers (19% of all tax filers), making the EITC the largest need-tested antipoverty cash assistance program. In that year, 97% of all EITC dollars were claimed by families with children. However, there was considerable variation in the share of returns claiming the EITC by state, with a greater share filed in certain southern states compared to other regions of the country.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R43805", "sha1": "b4b94339b7be62c3d0531dd476e8473f1a436819", "filename": "files/20170411_R43805_b4b94339b7be62c3d0531dd476e8473f1a436819.html", "images": { "/products/Getimages/?directory=R/html/R43805_files&id=/10.png": "files/20170411_R43805_images_93be4aa4df702360712368caacda7eaa87994aa7.png", "/products/Getimages/?directory=R/html/R43805_files&id=/6.png": "files/20170411_R43805_images_6a5578d33ab6100bc80aaf7df20f6e041e52860e.png", "/products/Getimages/?directory=R/html/R43805_files&id=/8.png": "files/20170411_R43805_images_ecabdef3dd6ec14c6683f46acc83f510d7ddf2b9.png", "/products/Getimages/?directory=R/html/R43805_files&id=/1.png": "files/20170411_R43805_images_a64533f94cb53c05bcafb21481fd567b33a33232.png", "/products/Getimages/?directory=R/html/R43805_files&id=/9.png": "files/20170411_R43805_images_7f8cfbc055c9d91dd3cb5027cbff409847239502.png", "/products/Getimages/?directory=R/html/R43805_files&id=/4.png": "files/20170411_R43805_images_1acfdc1392d3d14de5285c3ddde0d1a6ae3b9f1f.png", "/products/Getimages/?directory=R/html/R43805_files&id=/2.png": "files/20170411_R43805_images_4f58573ce59e5eb2a46c437fae2cda0574a67ebd.png", "/products/Getimages/?directory=R/html/R43805_files&id=/3.png": "files/20170411_R43805_images_7dbf7010a9a84f98be5afd43018329e72443236d.png", "/products/Getimages/?directory=R/html/R43805_files&id=/7.png": "files/20170411_R43805_images_60fa62c6d78e5d0dc08fcf68523fd010c44b5c11.png", "/products/Getimages/?directory=R/html/R43805_files&id=/0.png": "files/20170411_R43805_images_a4221b356cf23ec7a455ab8a643a61d780e56432.png", "/products/Getimages/?directory=R/html/R43805_files&id=/5.png": "files/20170411_R43805_images_593e1e6aa0de62571c221348bfbda92c9e704f89.png" } }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R43805", "sha1": "9850b79f40325fc0f6e99feb2ac5bca977b47582", "filename": "files/20170411_R43805_9850b79f40325fc0f6e99feb2ac5bca977b47582.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4797, "name": "Cash Assistance" }, { "source": "IBCList", "id": 4799, "name": "Individual Tax" }, { "source": "IBCList", "id": 4824, "name": "Education, Family, & Housing Tax Policy" } ] }, { "source": "EveryCRSReport.com", "id": 449105, "date": "2016-01-19", "retrieved": "2016-04-06T17:27:41.776022", "title": "The Earned Income Tax Credit (EITC): An Overview", "summary": "The Earned Income Tax Credit (EITC) is a refundable tax credit available to eligible workers earning relatively low wages. Because the credit is refundable, an EITC recipient need not owe taxes to receive the benefit. Eligibility for and the amount of the EITC are based on a variety of factors, including residence and taxpayer ID requirements, the presence of qualifying children, age requirements for childless recipients, and the recipient\u2019s investment income and earned income. Tax filers with income above certain thresholds\u2014these thresholds are based on marital status and number of qualifying children\u2014are ineligible for the credit.\nThe EITC varies based on a recipient\u2019s earnings. Specifically, the EITC equals a fixed percentage (the \u201ccredit rate\u201d) of earned income until the credit amount reaches its maximum level. The EITC then remains at its maximum level over a subsequent range of earned income, between the \u201cearned income amount\u201d and the \u201cphase-out amount threshold.\u201d Finally, the credit gradually decreases to zero at a fixed rate (the \u201cphase-out rate\u201d) for each additional dollar of adjusted gross income (AGI) (or earnings, whichever is greater) above the phase-out amount threshold. The specific values of these EITC parameters (e.g., credit rate, earned income amount) vary depending on several factors, including the number of qualifying children a tax filer has and his or her marital status. For the 2015 tax year, the maximum EITC for a tax filer without children is $503 per year. In contrast, the 2015 maximum EITC for a tax filer with one child is $3,359 per year; for two children, $5,548 per year; and for three or more children, $6,242 per year. \nTwo temporary modifications to the EITC were enacted as part of the American Recovery and Reinvestment Act of 2009 (ARRA; P.L. 111-5), extended by P.L. 111-312 and P.L. 112-240, and made permanent by the Protecting Americans from Tax Hikes (PATH) Act (Division Q of P.L. 114-113). The first modification was a larger credit for families with three or more children, while the second reduced the EITC\u2019s marriage penalty. \nThe EITC is provided to individuals and families once a year, in a lump sum payment after individuals and families file their federal income tax return. The credit may be received in one of three ways: (1) a reduction in federal tax liability; (2) a refund from the Treasury if the tax filer has no income tax liability; or (3) a combination of a reduced federal tax liability and a refund. The amount of the credit a tax filer receives is based on the prior year\u2019s income, earnings, and family composition (marital status and number of qualifying children). That is, the EITC paid in 2016 will be based on factors from 2015. \nThe EITC cannot be counted as income in determining eligibility for or the amount of any federally funded public benefit program. An EITC refund that is saved by a tax filer does not count against the resource limits of any federally funded public benefit program for 12 months after the refund is received.\nIn 2013, a total of $68.1 billion was claimed by 28.8 million tax filers (19% of all tax filers), making the EITC the largest need-tested anti-poverty cash assistance program. In that year, 97% of all EITC dollars were claimed by families with children. However, there was considerable variation in the share of returns claiming the EITC by state, with a greater share filed in certain southern states compared to other regions of the country.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R43805", "sha1": "7de872ce2cab52fdd52af000c6a1fda7c03fbda9", "filename": "files/20160119_R43805_7de872ce2cab52fdd52af000c6a1fda7c03fbda9.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R43805", "sha1": "02e7f763e6dcf6d838d627934f1e2832a86801cd", "filename": "files/20160119_R43805_02e7f763e6dcf6d838d627934f1e2832a86801cd.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 350, "name": "Individual and Family Tax Policy" }, { "source": "IBCList", "id": 4326, "name": "Benefits and Services for Low-Income Households" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc491354/", "id": "R43805_2014Dec03", "date": "2014-12-03", "retrieved": "2015-01-27T19:40:46", "title": "The Earned Income Tax Credit (EITC): An Overview", "summary": "The Earned Income Tax Credit (EITC) is a refundable tax credit available to eligible workers earning relatively low wages. This report provides an overview of the EITC, first discussing eligibility requirements for the credit, followed by how the credit is computed and paid. The report then provides data on the growth of the EITC since it was first enacted in 1975. Finally the report concludes with data on the EITC claimed on 2012 tax returns, examining EITC claims by number of qualifying children, income level, tax filing status, and location of residence.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20141203_R43805_833aeb87d26f4afd45a189c5d9770d53724b29af.pdf" }, { "format": "HTML", "filename": "files/20141203_R43805_833aeb87d26f4afd45a189c5d9770d53724b29af.html" } ], "topics": [ { "source": "LIV", "id": "Earned income tax credit", "name": "Earned income tax credit" }, { "source": "LIV", "id": "Public welfare", "name": "Public welfare" }, { "source": "LIV", "id": "Taxation", "name": "Taxation" } ] } ], "topics": [ "Domestic Social Policy", "Economic Policy" ] }