Are federal taxes progressive? Q.Are federal taxes progressive? A.Overall, yes. But that’s not the case for each tax. Read more about Are federal taxes progressive?
How do IRS audits affect low-income families? Q.How do IRS audits affect low-income families? A.The IRS audits a disproportionate (but still small) share of tax returns that include EITC claims. The agency has found that average discrepancies between taxes owed and taxes paid are smaller on EITC returns than on all returns. Read more about How do IRS audits affect low-income families?
Why do low-income families use tax preparers? Q.Why do low-income families use tax preparers? A.Many low-income families owe no income tax but still must file a tax return to receive refundable tax credits, including the earned income tax credit. Those who do file often seek help, which nearly always comes from a paid preparer. The cost of that help erodes the net value of refundable credits. That cost might be worth bearing if preparers helped their clients claim tax benefits that otherwise might be missed, but many don’t. Read more about Why do low-income families use tax preparers?
