Expanding the EITC Would Benefit Veterans and Service Members in Every State
End Notes
[1] These poverty figures use 2014 Census Bureau data. The SPM poverty line for a couple with two children was $25,460 in 2014. The poverty-reduction figures cited here include the entire CTC, both its low-income (that is, refundable) and non-refundable portions. Refundable credits like the EITC and the low-income portion of the CTC help families whose incomes are so low that they owe little or no federal income tax.
[2] Chuck Marr and Bryann DaSilva, “Childless Adults Are Lone Group Taxed Into Poverty,” Center on Budget and Policy Priorities, April 19, 2016, https://www.cbpp.org/research/federal-tax/childless-adults-are-lone-group-taxed-into-poverty.
[3] Chuck Marr et al., “Strengthening the EITC for Childless Workers Would Promote Work and Reduce Poverty,” Center on Budget and Policy Priorities, April 11, 2016, https://www.cbpp.org/research/federal-tax/strengthening-the-eitc-for-childless-workers-would-promote-work-and-reduce.
[4] For more on how these proposals would benefit workers in each state, see our state fact sheets on the Earned Income and Child Tax Credits, https://www.cbpp.org/research/federal-tax/state-fact-sheets-the-earned-income-and-child-tax-credits.
[5] For more on state EITCs, see Erica Williams and Michael Leachman, “States Can Adopt or Expand Earned Income Tax Credits to Build a Stronger Future Economy,” updated January 19, 2016, https://www.cbpp.org/research/state-budget-and-tax/states-can-adopt-or-expand-earned-income-tax-credits-to-build-a.
[6] Published IRS figures show that 28.5 million tax filers claimed the EITC in tax year 2013 (https://www.irs.gov/pub/irs-soi/13in54cmcsv.xlsx). In addition, according to IRS data compiled by the Brookings Institution’s Metropolitan Policy Program (https://www.brookings.edu/interactives/earned-income-tax-credit-eitc-interactive-and-resources/), approximately another 3.4 million tax filers claimed the low-income (refundable) portion of the CTC in 2013, not counting those who also claimed the EITC, for a total of about 31.9 million families who claimed either credit.
[7] Taxes and tax credits in the CPS are estimated by the Census Bureau based on income and other information provided by CPS respondents.
[8] The Census data undercount the total number of households receiving the EITC and CTC. For this reason, we start with the actual number of households receiving the credit in IRS records and use Census data to estimate the share of participating families that are armed-forces families. If we used only the Census data, the results would be similar but somewhat lower. In some respects, our estimates are low. They leave out some armed-forces members and their families that we could not reliably identify from the Census data, such as families with a member of the military who is serving overseas, stationed in barracks, or living in a household without any civilians (such service members are not included in CPS counts of armed-forces members). Moreover, we do not count families where the only current or former service member is a dependent living at home. For example, a recently discharged veteran with service-related disabilities living with his or her parents and working some hours during the year would most likely count as a tax dependent for these calculations and would therefore not be included in our tally.
[9] Numbers helped by the Ryan plan may be slightly smaller than listed for some groups because the Ryan proposal does not extend eligibility to workers age 65 and 66, as the Obama plan does.
[10] We estimate families’ taxes and tax credits in the ACS based on income and other information provided by ACS respondents. The estimates use three years of data from the ACS to improve reliability.