Experimental Design
For the treatment, researchers developed a two-minute information module delivered by H&R Block employees at the end of participants' tax return preparation. The module included a verbal explanation of how the EITC works, a graphical representation of the EITC schedule as a function of income, and a table with EITC ranges. The graph and table representations were customized to the individual's marital status and number of dependents. Together, the H&R Block employee and the participant filled out a worksheet based on the participant's 2006 earnings that gives their 2007 EITC return. This was used to demonstrate the client's location on the graph and table of the EITC schedule. The participants were then given take-home messages based on their location in the EITC schedule. In the increasing range, the take-home message is “Suppose you earn $10 an hour, then you are really making $14 an hour. It pays to work more!” In the peak range, the message is “Your earnings are maxing-out the EIC amount.” In the decreasing range, the message is “If you earn $10 more, your EIC is reduced by $2.10. Earning more reduces your EIC, but you may qualify for additional tax credits.” A printout including all of the above information was presented to the participants at the end of session, and an additional letter summarizing the EITC information was sent to treatment participants in August 2007 to reinforce the treatment.