Effects of Expanded Access to the Earned Income Tax Credit on Household Well-being among Older Adults

• In Event: Examining the Reach and Impact of Tax Credits and Transfers at the State and Federal Level

Abstract

The Earned Income Tax Credit (EITC) was temporarily expanded through the American Rescue Plan Act of 2021, allowing childless adults aged 65 and older to be eligible to receive the tax credit for the first time. The impacts of the additional income on older adults are an important research topic that has so far received limited attention in the literature. We use data from the Census Household Pulse Survey to examine how EITC eligibility impacted well-being, food insufficiency and mental health. We employ a difference-in-differences approach to identify and estimate the effects of expanded EITC eligibility among older adults. Our research findings delve into whether and in what ways the EITC payment improved overall well-being and health for low-income older adults.

Author

• Madelaine Reid L'Esperance, University of Alabama
  Presenting Author