Who Are the Ineligible EITC Recipients?

@article{Liebman2000WhoAT,
  title={Who Are the Ineligible EITC Recipients?},
  author={Jeffrey B. Liebman},
  journal={National Tax Journal},
  year={2000},
  volume={53},
  pages={1165 - 1185}
}
The IRS estimates that more than 20 percent of Earned Income Tax Credit (EITC) payments are made in error. By matching the Current Population Survey (CPS) to tax return data, this paper finds that a large portion of the overpayments went to families with children. Depending on the exact measure used, only 11 to 13 percent of EITC recipients lacked children in their household at the time they received the EITC. While some of these erroneous payments to households with children are received by… 

EITC Noncompliance: The Determinants of the Misreporting of Children

Internal Revenue Service data indicate that $ 4.4 billion in excess EITC was claimed for tax year 1994, largely due to violations of the qualifying child eligibility criteria. I find that the

EITC Eligibility, Participation, and Compliance Rates for AFDC Households: Evidence from the California Caseload

In this report, we examine the eligibility for and participation in the earned income tax credit (EITC) for low-income families in California during the 1990s. The EITC is a federal in-come tax

The Antipoverty Impact of the EITC: New Estimates from Survey and Administrative Tax Records

We reassess the antipoverty effects of the earned income tax credit (EITC) using unique data linking the Current Population Survey (CPS) Annual Social and Economic Supplement to Internal Revenue

Single Mothers’ EITC Receipt Dynamics

This paper uses a 1987-2006 panel of tax returns to examine how EITC claiming behavior among single mothers changed following the 1990s EITC expansions and the passage of welfare reform. We find that

The Earned Income Tax Credit and Reported Self-Employment Income

The EITC subsidizes earnings from both wages and self-employment. This paper uses tax return data to investigate how the EITC affects the reporting of self-employment income to the 1RS. A

EITC Use in Shared Placement Cases

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

EITC and the Self-employed

Saez finds that the budget constraint nonlinearities caused by the earned income tax credit (EITC) lead to bunching behavior for the self-employed but not for salaried workers. Possible explanations

The earned income tax credit and fertility

Government programs designed to provide income safety nets often restrict eligibility to families with children, creating an unintended fertility incentive. This paper considers whether dramatically

Are In-Work Tax Credits Effective in the Presence of Generous Public Assistance? Evidence from the 1975 Earned Income Tax Credit

It is well known that the Earned Income Tax Credit (EITC) expansions in the 1980s and 1990s had a positive impact on female employment. In contrast, the original 1975 EITC has commonly been described

References

SHOWING 1-10 OF 26 REFERENCES

EITC Eligibility, Participation, and Compliance Rates for AFDC Households: Evidence from the California Caseload

In this report, we examine the eligibility for and participation in the earned income tax credit (EITC) for low-income families in California during the 1990s. The EITC is a federal in-come tax

THE EARNED INCOME TAX CREDIT: PARTICIPATION, COMPLIANCE, AND ANTIPOVERTY EFFECTIVENESS

This paper examines the participation rate of the earned income tax credit (EITC). After examining a variety of data sources on EITC recipiency, my preferred estimates indicate that 80 to 86 percent

The Impact of the Earned Income Tax Credit on Incentives and Income Distribution

For more than three decades, economists have advocated the use of the tax system as a means of transferring income to low-income families. Studying the Earned Income Tax Credit (EITC) offers the

The Earned Income Tax Credit and the Labor Supply of Married Couples

Over 18 million taxpayers are projected to receive the Earned Income Tax Credit (EITC) in tax year 1997, at a total cost to the federal government of about 25 billion dollars. The EITC is refundable,

Labor Supply Response to the Earned Income Tax Credit

In a series of major expansions starting in 1987, the earned income tax credit (EITC) has become a central part of the federal government's anti-poverty strategy. In this paper, we examine the impact

When Do Women Use Afdc & Food Stamps? The Dynamics of Eligibility vs. Participation

This paper investigates dynamic patterns in the relationship between eligibility and participation in the AFDC and food stamp programs, using monthly longitudinal data from the Survey of Income and

The Optimal Design of the Earned Income Tax Credit

This paper uses a microsimulation model calibrated to microdata from the 1999 Current Population Survey (CPS) to illustrate the tradeoffs that arise in designing an Earned Income Tax Credit, focusing

The Earned Income Tax Credit and Transfer Programs: A Study of Labor Market and Program Participation

The cornerstone of the Clinton administration's welfare reform agenda is a large expansion of the earned income tax credit (EITC), a refundable tax credit directed primarily toward low-income

PROMOTING WORK THROUGH THE EITC

Consideration of EITC rate structure changes that promote work, and examination of the impact of 1990 and 1993 tax laws on EITC eligibility, delivery, and interactions with other programs. Finds that

The Efficiency Cost of Increased Progressivity

Increases in income tax progressivity generally entail some efficiency cost due to increased distortion of individuals' labor supply decisions. This paper quantifies the magnitude of the efficiency