Federal CTC and EITC

Redesigning the EITC: Issues in Design, Eligibility, Delivery, and Administration

06. 10. 2019

Monthly or quarterly payments might provide substantial benefits to recipients whose income is already volatile.

Click to add an image!

This article originally appeared in the Tax Policy Center.

The earned income tax credit provides substantial assistance to low- and moderate-income workers. Benefits tilt heavily to families with children. Prompted in part by the success of the credit and in part by shortcomings in the credit, policymakers, advocates, and analysts have offered up reform proposals. In this report, we describe the credit’s current effects and then analyze the credit’s basic elements (its eligibility requirements, design, timing, administration, and effects on other programs including State EITCs and transfer programs) to help guide thinking on these potential reforms.