Tax-Time Saving and the Earned Income Tax Credit: Results from Online Field and Survey Experiments
Social Policy Institute at Washington University in St. Louis
Tax refunds are an opportunity for Earned Income Tax Credit (EITC) recipients to build emergency savings. Randomly assigned behavioral interventions in 2015 and 2016 have statistically significant impacts on refund saving take-up and amounts among EITC recipients who filed their taxes online. From a survey experiment, we also find that EITC recipients have a 49 percent and 59 percent increased likelihood of deferring 20 percent of their refunds for six months when hypothetically offered 25 and 50 percent savings matches (p < .001), respectively. These findings can inform policy development related to encouraging emergency saving at tax time.
Refund to Savings (R2S)
Despard, Mathieu; Grinstein-Weiss, Michal; Roll, Stephen; Hardy, Bradley; Perantie, Dana; and Oliphant, Jane, "Tax-Time Saving and the Earned Income Tax Credit: Results from Online Field and Survey Experiments" (2020). Social Policy Institute Research. 26.
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