The Earned Income Tax Credit (EITC) is one of the nation’s largest anti-poverty programs. Because of this, Volunteer Income Tax Assistance (VITA) programs dedicate a lot of time to marketing their services as a way to help low-income households claim the EITC. However, the IRS estimates that more than 20% of eligible taxpayers do not claim the credit. Not much research exists on who EITC non-claimants are, but Prosperity Now was able to estimate and infer from available data sources in the Earned Income Tax Credit Participation Gap report.  

Here is what we found: 

EITC non-claimants are more likely to be from certain subgroups, including: 

• Rural residents 

• Self-employed workers 

• Persons with disabilities 

• Persons without EITC-qualifying children 

• Persons who are not English-proficient 

• Grandparents raising grandchildren 

• Households in flux because of divorce, unemployment, etc. 

Additionally, EITC-eligible workers are more likely to work in the following sectors: 

• Accommodation and food services 

• Health care and social assistance 

• Retail trade 

• Manufacturing 

In the summer of 2021, Prosperity Now conducted a focus group with the Ensuring Expanding Access to Tax Preparation Services in Underserved Communities cohort, which was comprised of VITA programs in six of the nation’s most vulnerable communities. From them, we learned more about barriers to claiming the EITC in their communities, including language and cultural barriers; geographic isolation and the digital divide. Chances of success improve if a community sustains trusting relationships across cultures. 

So how do VITA programs tackle the EITC participation gap?  

The first step in conducting EITC outreach is to consider the existing data and demographics in your community. This information can tell you whom to target, and where, with your services. 

• Are you located in a rural area?  

• What are the income, child poverty rates and liquid asset poverty rates in your community (which can be found in the Prosperity Now Scorecard)?  

• Does your community have a large population of non-English speakers?  

• What industries exist in your community?  

• What does the tax filing data say about the gap between who is eligible and who is claiming the EITC?   

The next step is to try to offset barriers to EITC participation. Here is what we suggest based on our work with local VITA programs: 

1. Recruiting staff and volunteers who are trusted leaders and/or who are from the communities you are targeting.  

2. Meeting people where they are by doing outreach in local meeting places, libraries, grocery stores and restaurants. 

3. Using both online and offline outreach approaches, like social media, fliers, radio ads and word-of-mouth. 

4. Partnering with trusted community partners like schools, employers, health care centers, childcare centers and more. 

5. Utilizing your local VITA coalition to solidify and build trusted community partnerships who can help spread the word in their communities.  

The VITA field continues to learn more about tax filers, EITC-eligible populations and those who do not claim the EITC. To stay informed about new research and field discussion on this topic, join the Taxpayer Opportunity Network today.