Tax Filing and Other Financial Behaviors of EITC-Eligible Households: Differences of Banked and Unbanked

This article was published by the Association for Financial Counseling and Planning Education. Using data from a 2008 survey data of EITC-eligible households assisted at Volunteer Income Tax Assistance (VITA) sites, authors analyze differences in tax filing between banked and unbanked EITC-eligible households. Results show that unbanked households have a lower likelihood of receiving a federal tax refund for tax year 2007 and the previous tax year (TY 2006). Also, unbanked households have a lower likelihood of receiving tax refunds via direct deposit and a higher likelihood of using check cashing stores.