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EITCRED
Earned income tax credit

Codes

9999 = N.I.U. (Not in Universe).

See User Note for an explanation of these codes.

Description

EITCRED represents the value of the Earned Income Tax Credit for an individual or couple filing a federal income tax return. The federal Earned Income Tax Credit (EITC) is a refundable tax credit that reduces or eliminates the amount of income tax that low-to moderate-income working people are required to pay, and it frequently operates as a wage subsidy for low-income workers. If the amount of the credit exceeds the amount owed in federal income taxes, the difference is received as a cash payment. The value of the EITC depends on the amount of earned income and family size (e.g., whether a single-parent or two-parent family and number of dependent children).

EITCRED, like other tax-related variables included in the ASEC CPS (ADJGINC, CAPGAIN, CAPLOSS, FEDRETIR, FEDTAX, FICA, FILESTAT, MARGTAX, STATETAX, and TAXINC) was not determined by direct questioning of respondents. Rather, values for these variables come from the Census Bureau's tax model, which simulates individual tax returns to produce estimates of federal, state, and payroll taxes. The model incorporates information from non-CPS sources, such as the Internal Revenue Service's Statistics of Income series, the American Housing Survey, and the State Tax Handbook. For more information about the model, see Current Population Reports, Series P60-186RD. The IPUMS-CPS staff welcomes further information from users about the interpretation of this variable or other tax-related variables in the ASEC CPS.

Amounts for EITCRED are expressed in dollars of the given year, rather than in constant dollars adjusted for inflation. Users can adjust for inflation using Consumer Price Index adjustment factors.

Comparability

Apart from the effects of inflation, EITCRED is largely comparable over time. Comparability may, however, be limited by changes in the Census Bureau's tax model. The Bureau implemented a new model to produce tax estimates in 2004, and the previous tax model was updated annually to account for changes in marginal tax rates.

Universe

  • Persons age 15+.

Availability

Years Jan Feb ASEC Apr May Jun Jul Aug Sep Oct Nov Dec
1992 – 2017 - - X - - - - - - - - -

Flags

This variable has no flags.