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Extending the EITC to Noncustodial Parents: Potential Impacts and Design Considerations

机译:将EITC扩展到非监护父母:潜在影响和设计考虑因素

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The state of New York and the District of Columbia are the first jurisdictions to implement an innovative policy--an earned income tax credit (EITC) for low-income noncustodial parents who work and pay their child support in full. A similar tax credit was introduced by Senator Bayh and then-Senator Obama in 2007 (S. 1626). A noncustodial parent (NCP) EITC operates like the child-based EITC, which provides a refundable tax credit to low-income working families with children and encourages work. Under current federal income tax rules, low-income noncustodial parents are ineligible for the EITC benefits available to low-income families with children, even when they support their children through full payment of child support. While the EITC and child support have successfully removed many low-income working families from poverty, the combined effect of taxes and child support payments can impoverish noncustodial parents working at or near the minimum wage. NCP EITC policies work to reduce this disparity and to increase incentives for work and payment of child support.

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