Prevalence and Patterns of Earned Income Tax Credit Use Among Eligible Tax-Filing Families: A Panel Study, 1999-2005

This study expands our understanding of participation in the Earned Income Tax Credit (EITC) program among prime working-age individuals from EITC-eligible families between 1999 and 2005. It identifies gaps in program use over time such that outreach efforts might better target low-income working families to increase EITC take-up rates. Relying on National Longitudinal Survey data, findings indicate that more than one third (37.8%) of the population sample was EITC-eligible at least 1 year (3,034 of 8,033 individuals). Less than 20% of EITC-eligible families filed for the credit, and about half of these filed more than 1 year. Robust correlates of EITC use included lower income; larger families; separated, divorced, or widowed persons; and women versus their respective counterparts. Strategies to increase the EITC take-up rates are discussed.