How do the impacts of tax policies vary by race and ethnicity? Q.How do the impacts of tax policies vary by race and ethnicity? A.The IRS does not ask for tax filers’ race or ethnicity on tax forms, but that does not mean the tax system affects people of different races and ethnicities similarly. Read more about How do the impacts of tax policies vary by race and ethnicity?
Do all people eligible for the EITC participate? Q.Do all people eligible for the EITC participate? A.The IRS and Census Bureau estimate that almost 80 percent of workers eligible for the earned income tax credit (EITC) claim it. Because people eligible for higher credits are more likely to claim the credit than those eligible for lower credits, about 85 percent of potential benefits are claimed each year. Read more about Do all people eligible for the EITC participate?
What is the earned income tax credit? Q.What is the earned income tax credit? A.The earned income tax credit subsidizes low-income working families. The credit equals a fixed percentage of earnings from the first dollar of earnings until the credit reaches its maximum. The maximum credit is paid until earnings reach a specified level, after which it declines with each additional dollar of income until no credit is available. Read more about What is the earned income tax credit?