Tax credits like the earned income tax credit (EITC) and child tax credit (CTC) lift millions of US households out of poverty each year and reduce food insecurity and other hardships.
Their success in rewarding working individuals has spurred the District of Columbia and over thirty states, including Maryland, to create their own state-level EITCs or state-level CTCs. Some states have also expanded credit eligibility to go beyond the federal counterparts: for example, young adults without children and taxpayers with individual taxpayer identification numbers are eligible for Maryland’s EITC.
However, claiming federal and state tax credits can be complicated.
The Urban Institute is conducting a mixed-methods research project on how Maryland’s changemakers can better connect underserved residents to the state’s largest income tax credits.
Through stakeholder interviews with Maryland’s government and nonprofit leaders, quantitative data analysis of de-identified state tax data, and focus groups with diverse households across the state, this project is answering two key questions:
- What are the barriers preventing Maryland residents from accessing state tax benefits?
- What are the most effective outreach, community engagement, and tax filing supports to increase the uptake of tax benefits for eligible Maryland residents?
Importantly, this is a uniquely qualified research-to-action project: its findings will inform the Comptroller of Maryland’s evidence-based outreach programs in FY 2026 (HB0845 (maryland.gov): Income Tax - Individual Income Tax Credit Eligibility Awareness Campaign).
The project is co-led by Luisa Godinez-Puig, senior research associate in the Center for Equity and Community Impact at the Urban Institute, and Aravind Boddupalli, senior research associate in the Urban-Brookings Tax Policy Center. They are guided by an advisory group convened by the Comptroller, including policymakers, researchers, tax practitioners, and civic leaders.
This project is supported by the Annie E. Casey Foundation, T. Rowe Price Foundation, Greater Washington Community Foundation, and the Abell Foundation.
