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Whose Child Is This? Shifting of Dependents among EITC Claimants within the Same Household

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  • David Splinter
  • Jeff Larrimore
  • Jacob Mortenson

Abstract

Using a panel of household level tax data, we estimate the degree to which dependents are "reassigned" between tax units within the same household, and how these reassignments affect combined tax liabilities. Reassigning dependents reduces combined tax liabilities on average, suggesting some household level coordination. Additionally, when earned income tax credit (EITC) benefits expanded in 2009, reassignments increasingly involved adding a third child to tax returns to claim these new benefits. However, the subgroup reassigning towards three child tax units actually increased total household tax liabilities, suggesting that some tax units may prioritize minimizing their own tax burden or focus on particularly salient aspects of tax policy.

Suggested Citation

  • David Splinter & Jeff Larrimore & Jacob Mortenson, 2017. "Whose Child Is This? Shifting of Dependents among EITC Claimants within the Same Household," National Tax Journal, National Tax Association;National Tax Journal, vol. 70(4), pages 737-758, December.
    • Handle: RePEc:ntj:journl:v:70:y:2017:i:4:p:737-758
    DOI: 10.17310/ntj.2017.4.02
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    Cited by:

    1. Bruce D. Meyer & Derek Wu & Grace Finley & Patrick Langetieg & Carla Medalia & Mark Payne & Alan Plumley, 2020. "The Accuracy of Tax Imputations: Estimating Tax Liabilities and Credits Using Linked Survey and Administrative Data," NBER Chapters, in: Measuring Distribution and Mobility of Income and Wealth, pages 459-498, National Bureau of Economic Research, Inc.
    2. David Splinter, 2019. "Who Pays No Tax? The Declining Fraction Paying Income Taxes And Increasing Tax Progressivity," Contemporary Economic Policy, Western Economic Association International, vol. 37(3), pages 413-426, July.

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    More about this item

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs

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