Work

How Families View and Use the EITC: Advance Payment versus Lump Sum Delivery

Year: 2000

Type: article

Abstract: We analyze ethnographic data on 42 families' perceptions and uses of the EITC, including the decision to use the lump sum or advance payment form. A behavioral life cycle (BLC) model lends a theoretical framework and a description of family financial situations provides context. Parents discuss and exhibit a strong preference for a lump sum combined tax refund and EITC over the credit's advance payment option. We argue that the preference aligns with the BLC model and is rational given scarce time, money, and personal energy. We conclude with implications and hypotheses for quantitative investigation of labor supply and well being issues.

Source: National Tax Journal

DOI: 10.17310/ntj.2000.4s1.09

Authors: Jennifer L. Romich, Thomas Weisner

Institutions: Northwestern University, Northwestern University, University of California, Los Angeles

Language: English

Topic: Gender, Labor, and Family Dynamics

Subfield: Gender Studies

Field: Social Sciences

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2115214291

FWCI: 6.048

Cites:

Cited by: 142

Related to: 10