Tax Credits

Description of Indicator
The total number of tax returns is represented in the tax credits indicator. Tax returns receiving Earned Income Tax Credit (EITC) and the average EITC amount for each return are also documented. Additionally, returns receiving Child Tax Credit and the average Child Tax Credit amount for each return are shown.

Why is it important?
The presence of different tax returns, such as EITC and Child Tax Credit, as a form of social aid will help impoverished communities. Working households with lower incomes can become financially stable with support from the federal EITC. Low- to middle-income families with children can also receive Child Tax Credit. These types of tax credits will also strengthen the economy.

How is the region performing?
The share of households receiving EITC fluctuated overall from 2017 to 2021 in all three counties. After 2018, the average amount per return decreased in Lackawanna and Luzerne Counties. A larger percentage of individuals received Child Tax Credit starting in 2018 for all geographies. The average Child Tax Credit amount per return was higher in 2021 compared to the prior years analyzed. COVID-19 was a significant contributing factor in the increase.