Tax Credit Access

Tax credits are among the most effective tools we have to reduce poverty and provide stability for families. In 2023 alone, the federal Earned Income Tax Credit (EITC) and the refundable portion of the Child Tax Credit (CTC) lifted 6.4 million people out of poverty. In 2021, an expansion of the CTC contributed to a 40% drop in child poverty nationwide. For families, these benefits can mean the difference between instability and access to secure housing, food, and improved health and developmental outcomes.

So it’s devastating that every year, nearly 1 in 5 eligible individuals miss out on these life-changing benefits—primarily due to barriers to tax filing.

At the New Practice Lab, we’re working to improve the number, experience, and timeliness of economically excluded families receiving the tax credits they deserve. We do this by partnering with state governments and others to test innovative approaches that help identify those not accessing credits, motivate them to act, and reduce the barriers to filing.

Our goal is to support the implementation of promising interventions that measurably increase access to tax credits. We aim to build on existing insights, test new strategies, and help more states eager to adopt effective, scalable strategies.

There is no one-size-fits-all solution. Barriers to credit access are diverse and layered—ranging from lack of awareness, to fear or confusion about tax filing, to the cost of filing itself. Each intervention can address part of the problem, but real progress requires ambition and a multi-pronged approach.

We’re excited to share what we learn and eager to connect with others doing this work. If you would like to connect with our tax team, please send us an email at npl_work@newamerica.org.