The Demographics of Earned Income Tax Credit
Abstract
The Earned Income Tax Credit (EITC) is a refundable federal income tax credit available to low- income taxpayers filing tax returns and is intended to help low-income individuals improve their living conditions. The geographic dispersion of EITC utilization during a ten year period using county-level tax return data from 1999-2008 for western South Dakota taxpayers was analyzed to identify differences. Six regions were identified including metropolitan, rural, and four Indian reservations. Significant sustained differences were identified between taxpayers residing on versus off reservations, as well as differences between reservations. Where taxpayers live makes a difference in the likelihood to claim and the amount of EITC that is claimed.