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.
Bibliographical noteFunding Information:
The Center for Social Development at Washington University in St. Louis gratefully acknowledges the funders who made the Refund to Savings Initiative possible: the Ford Foundation, the Annie E. Casey Foundation, Intuit, Inc., the Intuit Financial Freedom Foundation, the Smith Richardson Foundation, and JPMorgan Chase & Co.
© 2017 Taylor & Francis Group, LLC.
- Behavioral economics
- earned income tax credit
- health care hardship
- material hardship