Effects of a Tax-Time Savings Experiment on Material and Health Care Hardship Among Low-Income Filers

Publication Date

9-14-2017

Summary

Material and health care hardship is common among households with low incomes and is associated with a host of adverse financial, health, and social outcomes. But recent evidence has suggested that these outcomes can be mitigated with modest savings. Using data from the Refund to Savings Initiative, a team of CSD researchers assessed whether R2S interventions informed by behavioral economics can positively impact hardship among a sample of low- and moderate-income tax filers (N = 4,738). The authors find that filers who received an intervention had a statistically significant, lower probability of both types of hardship 6 months after tax filing, compared to the control group.

Document Type

Article

Category

Financial Inclusion

Subarea

Financial Behaviors

Original Citation

Despard, M. R., Taylor, S. H., Ren, C., Russell, B. D., Grinstein-Weiss, M., & Raghavan, R. (2018). Effects of a tax-time savings experiment on material and health care hardship among low-income filers. Journal of Poverty, 22(1), 156–178. doi:10.1080/10875549.2017.1348431

Project

Refund to Savings (R2S)

Keywords

Refund to Savings (RS), TurboTax Freedom Edition, Household Financial Survey (HFS), material hardship, Earned Income Tax Credit (EITC), savings

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