Carsey Institute Fact Sheet on EITC

A new Carsey Institute Fact Sheet shows that working Americans in rural areas are more likely to benefit from the Earned Income Tax Credit (EITC) to make ends meet than their neighbors in urban areas. Families in the rural South take advantage of the tax credit the most.

The study, “EITC is Vital for Working-Poor Families in Rural America,” finds that while only 16 percent of U.S. tax filers in 2004 were from rural areas, rural EITC filers claimed 20 percent of the $39.8 billion EITC funds.

In 2004, rural EITC recipients collectively received $7.8 billion through the credit. The vast majority of EITC dollars go to working families with children who have earnings below $35,000 a year.

{source: Carsey Institute}