The Earned Income Tax Credit: Sustainable Poverty Alleviation in Research and Practice
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Date
2019-04
Authors
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Journal ISSN
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Publisher
Ohio State University. Office of Outreach and Engagement
Abstract
The Earned Income Tax Credit (EITC) is the largest anti-poverty program in the United States, and reaches nearly one million Ohio families every year. Many low-income families are able to access the credit thanks to the Volunteer Income Tax Assistance (VITA) program, which provides free tax preparation services in partnership with community organizations across the country. Two highly successful VITA sites are operated by Ohio State's Fisher College of Business and Moritz College of Law, where student-volunteers help more than 250 Columbus-area families file their taxes every year. We will provide an overview of the EITC and VITA programs, review important research demonstrating how the EITC has led to sustainable economic well-being for families, and discuss the successes and challenges of developing and operating a student-powered VITA clinic.
Description
The Earned Income Tax Credit (EITC) is the largest anti-poverty program in the United States, and in 2017 lifted nearly 10 million families out of poverty. In Ohio, nearly 1 million families received the credit in 2017, with the average family receiving about $2,500. Since the advent of the program in the mid-1970s, researchers have linked the EITC to many positive outcomes for families and children, and have demonstrated that the program produces sustainable economic well-being for families. One important roadblock to participation is the fact that to obtain the credit, families must file taxes. This is not always easy because low-income families are often limited in time and resources, and as such, struggle to complete their taxes and apply for the EITC. In response to this problem, the IRS developed the Volunteer Income Tax Assistance (VITA) Grant Program, wherein local organizations can apply for funds to operate a free tax preparation clinic for low-income and other eligible families. The VITA program in central Ohio is administered through the United Way's Tax Time program, which partners with community 1organizations across the region to support 72 sites in Franklin County. Two sites are administered by Ohio State's Fisher College of Business and Ohio State's Moritz College of Law VITA program, where student volunteers work to help tax filers at Godman Guild (in the Weinland Park neighborhood) and the African American and African Studies Community Extension Center. Founded in 2003, these sites have been successful in filing upwards of 270 tax returns every year, and generating more than 4.6 million in refunds during their first 12 years of operation. Thanks to programs like Fisher College VITA, Ohio ranks 4th in EITC participation rates among eligible families. This session will explore the EITC and VITA programs from two lenses. Lauren Jones, whose research focuses on the effects of the EITC on family well-being, will provide an overview of the EITC program and present research findings demonstrating the program's effectiveness in generating sustained economic well-being. Susan Colbert, a co-founder of the Fisher College and Moritz College VITA program, will provide an overview of the implementation and development of the program, and discuss successes and challenges in creating a sustainable, student-powered program to help alleviate poverty in the Columbus community. The session's intended audience will include both researchers and practitioners interested in learning about the enormously important EITC and VITA programs.
AUTHOR AFFILIATION: Lauren Jones, assistant professor, Ohio State Department of Human Sciences, and OSU Extension, jones.2846@osu.edu (Corresponding Author); Susan Colbert, OSU Extension program director, community and economic development, Franklin County
AUTHOR AFFILIATION: Lauren Jones, assistant professor, Ohio State Department of Human Sciences, and OSU Extension, jones.2846@osu.edu (Corresponding Author); Susan Colbert, OSU Extension program director, community and economic development, Franklin County
Keywords
poverty alleviation, family well-being, EITC, tax preparation, student volunteers
Citation
Engaged Scholars, v. 7 (2019).