The proportion of people filing taxes who receive the Federal Earned Income Tax Credit (EITC).
The tax credit helps low-income individuals and families by reducing the taxes they pay or in some cases providing refunds. When the credit exceeds the amount of taxes owed, qualified filers receive a federal refund, bringing Federal resources to the community. Not everyone who qualities for the credit claims it.
In 2016, 14% of Essex County residents who filed taxes received the Federal Earned Income Tax Credit (EITC). The rate has remained steady since 2011 and is higher than the state rate of 12% but below the national rate of 18%.
Essex County had the highest rate of residents who received the credit. Lake, IL and Westchester, NY each had a rate of 12% and Middlesex, MA had a rate of 8% in 2016. The rates for Essex County and each comparison county have changed little since 2011.
People must claim the credit to receive it; therefore, these numbers do not reflect the number of people eligible for the credit. The IRS and other experts estimate that 80-85% of those who are eligible for the credit claim it. Data for Essex County, MA, Middlesex, MA and Lake, IL was not available prior to 2011.