Earned income tax credit 2012 single parents

The qualifying child can be: [3] a person's daughter, son, stepchild, or any further descendant such as grandchild, great grandchild, etc.

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Census Bureau. As Figure 1 shows, single mothers experienced a marked increase in paid employment following the EITC expansions of the early s, relative to married women and single women without children.

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As a result, information needed to verify wages often got to the IRS well after the first returns had been processed. Washington, D. Cook, Nancy. Hungerford, Thomas L.

Earned income tax credit history

Washington, D. Cherry and Sawicky Cherry and Sawicky propose a number of reforms to the EITC to address some of the issues that have dogged the EITC over its lifetime, such as its high implicit marginal tax rate in the phase-out range, the possibility of a marriage penalty, and finally, its complexity. Numerous studies show that working-family tax credits boost work effort. That is, the younger person can be 18 years and days old on December 31 and the age requirement is met. Current Population Survey basic monthly microdata. And a single parent under age 24 who is also a full-time college student one long semester or equivalent living in an extended family situation is also potentially claimable. The EITC is particularly effective at encouraging work among single mothers working for low wages. A qualifying child can also be in the process of being adopted provided he or she has been lawfully placed. In short, studies indicate that young children in low-income families that receive income support which could include the EITC and CTC perform better in school, on average. Data Sources ———. He suggests that a separate work credit would be based on this framework, and include a childless EITC.

Urban-Brookings Tax Policy Center. Brown, ed.

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What is the earned income tax credit?