Extending the EITC to Noncustodial Parents: Potential Impacts and Design Considerations. VI. NCP EITC Design and Implementation Considerations

05/23/2009

As demonstrated above, the age and income eligibility criteria along with the benefit level for an NCP EITC substantially influence the number of noncustodial parents eligible for an NCP EITC and the potential cost of the credit. Policies focused on narrow age ranges (such as 18–30) are much less expensive than identical policies that would extend eligibility to a broader age range. Policies that base eligibility on the current or an expanded childless EITC will reach fewer noncustodial parents than those that extend eligibility into the income ranges covered by the child-based EITC—not just because more noncustodial parents fall into the broader income range covered by the child-based EITC but also because those with higher incomes are more likely to pay their child support in full.

Besides determining the eligibility criteria regarding age and income, and the benefit level for the NCP EITC, several other issues should be considered when designing an NCP EITC.

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