Effects of a Tax-Time Savings Experiment on Material and Health Care Hardship among Low-Income Filers.

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Title: Effects of a Tax-Time Savings Experiment on Material and Health Care Hardship among Low-Income Filers.
Authors: Despard, Mathieu R.1 mdespard@umich.edu, Taylor, Samuel2, Ren, Chunhui3, Russell, Blair4, Grinstein-Weiss, Michal5, Raghavan, Ramesh6
Source: Journal of Poverty. Mar-Apr2018, Vol. 22 Issue 2, p156-178. 23p.
Subject Terms: Medical care, Hardship, Tax credits, Income tax, Behavioral economics
Abstract: Material and health care hardship is common among households with low incomes and is associated with a host of adverse outcomes but can be mitigated with having savings. The authors assessed the effects of online tax-time savings interventions informed by behavioral economics on hardship among a sample of low- and moderate-income tax filers (N = 4,738). The authors find that filers who received an intervention had a statistically significant, lower probability of both types of hardship 6 months after tax filing, compared to the control group. However, this result does not hold when incorporating household financial characteristics and prior hardship to models. [ABSTRACT FROM AUTHOR]
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Abstract:Material and health care hardship is common among households with low incomes and is associated with a host of adverse outcomes but can be mitigated with having savings. The authors assessed the effects of online tax-time savings interventions informed by behavioral economics on hardship among a sample of low- and moderate-income tax filers (N = 4,738). The authors find that filers who received an intervention had a statistically significant, lower probability of both types of hardship 6 months after tax filing, compared to the control group. However, this result does not hold when incorporating household financial characteristics and prior hardship to models. [ABSTRACT FROM AUTHOR]
ISSN:10875549
DOI:10.1080/10875549.2017.1348431