Brief Paying the Price?
Low-Income Parents and the Use of Paid Tax Preparers
Elaine Maag
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Low-income parents use paid preparers more frequently than other parents. This high reliance may be a good thing. Among low-income parents who know about the Earned Income Tax Credit (EITC) those who receive help are more likely to receive the EITC than their peers who prepare their returns independently. Although use of a paid preparer could obfuscate one's knowledge of important tax benefits if the paid preparer does not explain their calculations, this does not appear to be the case. We continue to note that significantly fewer Hispanic parents know about the EITC than other low-income parents.
Research Areas Families Social safety net Taxes and budgets
Tags Low-Income Home Energy Assistance Program (LIHEAP) Economic well-being Individual taxes
Policy Centers Urban-Brookings Tax Policy Center