The New York Noncustodial Parent EITC: Its Impact on Child Support Payments and Employment

In 2006, New York instituted a noncustodial parent earned income tax credit (NCP EITC) to encourage low-income noncustodial parents to work and pay child support. This study examines the credit’s impacts through 2009. Researchers use a regression discontinuity approach exploiting a drop in NCP EITC eligibility when taxpayers’ youngest children turn 18, and find the NCP EITC increased the proportion of noncustodial parents paying their child support in full by approximately 1 percentage point. Effects were stronger among parents with low child support orders. Researchers’ estimates may represent upper-bound impacts, but reflect only the first four years of implementation.

The New York Noncustodial Parent EITC: Its Impact on Child Support Payments and Employment.pdf