Halting the Loss of Billions of Dollars in Earned Income Tax Credit Benefits

Release Date: March 24, 2008
File Size: 256 KB
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"Halting the Loss of Billions of Dollars in Earned Income Tax Credit Benefits," from March 2008, reports on how low-income families lose billions each year in Earned Income Tax Credit (EITC) benefits to high-interest, short-term loans, tax preparation fees, and other financial products issued by commercial tax preparers. The report warns low-income families to avoid Refund Anticipation Loans (RAL) whose high interest rates cause families to forfeit a significant percentage of their refunds in order to receive their money a little earlier. The report provides action items that lifts children out of poverty by helping their working families keep more of the money they've earned.

From the report:

Chart: Total Dollars Lost to Tax Preparation Fees, RALs, and RACs in U.S. Cities with Highest Number of Returns Filed (.pdf)

Chart: U.S. Counties with Highest Percentage of RAL Purchases (.pdf)

Chart: Total Dollars Lost to Tax Preparation Fees, RALs in U.S. States (.pdf)

Clickable Map: Total Dollars Lost to Tax Preparation Fees, RALs in U.S. States

State level reports:

California

District of Columbia

Mississippi

New York

Ohio

South Carolina

Tennessee

Texas