Archive for the ‘Tax refunds’ Category

Why Tax and Transfer Programs Often Discourage Work and Savings

Economists and many policymakers generally agree that our tax and transfer systems should promote opportunity, work, saving, and education rather than consumption. The problem is these programs often penalize people for earning that extra dollar of income. Rather than promoting work and savings, these implicit taxes punish such otherwise positive behavior. These penalties occur in […]

Earned Income Tax Awareness Day

As tax filing season approaches, the IRS is reminding  low-income families about the Earned Income Tax Credit (EITC). The EITC provides a wage subsidy for low- and moderate-income families and is an important income support for many.  In 2012, a family with two children could receive an income boost of 40 cents for every dollar […]

Can Filing Taxes Connect Low-Income Families to Bank Services and Save the Government Money?

Is there a way for low- and moderate-income households who do not have bank accounts to receive tax refunds electronically? A new Urban Institute study found these households may be willing to participate in a program that delivers their refunds directly to a prepaid card account. We evaluated a Treasury Department pilot program called the […]