Description of Indicator
The tax credits indicator represents the total number of tax returns. Tax returns receiving Earned Income Tax Credit (EITC) and the average EITC amount for each return are also documented. Tax returns receiving the Child Tax Credit and the average Child Tax Credit amount for each return are also shown.
Why is it important?
Applying different tax returns, such as EITC and Child Tax Credit as a form of social aid functions similarly to other supports. Working households with lower incomes can supplement their earnings with the assistance of the federal EITC. Low- to middle-income families with children can also receive the Child Tax Credit. These types of tax credits also strengthen the economy.
How is the region performing?
The average amounts per return decreased in Lackawanna and Luzerne Counties between 2017 and 2022, but the average amount per return for all geographies increased in 2022. Compared to Wayne County and Pennsylvania, relatively large percentages of Lackawanna County and Luzerne County residents received the Child Tax Credit in 2022. The average Child Tax Credit amount per return was higher in 2021 compared to the prior years analyzed, though it decreased significantly in 2022.