The EITC can be a significant tax credit – worth as much as $7,830 for the 2024 tax year and $8,046 for the 2025 tax year. However, the credit amount varies significantly depending on tax filing status, number of qualifying children, and income earned. It is phased in and then phase...
Below is an IRS chart on how one qualifies for the EITC - the figures change year-to-year, see the 2024 year table above. Single taxpayers with no children or dependents are the largest group of qualifying taxpayers who think they do not qualify for the Earned Income Tax Credit on their...
Table 2, Implications for social welfare Having shown that the EITC largely pays for itself in a budgetary sense, we now consider the EITC’s impact on social welfare. Since the EITC is funded through tax revenue—leading to deadweight loss—and requires recipients to work—leading to work dis...
Labour supply Information Experiment Earned Income Tax Credit Sweden 1. Introduction Benchmark neoclassical economic models rely on the assumption of perfect information about the incentives faced by individuals, households, and firms. In order to maximize their utility (or profit), economic agents need...