UPDATE: A team of graduate students from Carnegie Mellon University (CMU) has launched a groundbreaking campaign aimed at helping low-income workers secure their share of the $7 billion in unclaimed Earned Income Tax Credit (EITC) funds. This initiative, developed in partnership with the National League of Cities, is designed to empower thousands of eligible workers who often miss out on substantial tax refunds.
Every year, millions of low-income families overlook the EITC, which can provide refunds ranging between $632 and $7,830 based on income and household size. The CMU students have crafted user-friendly materials and an online tool to raise awareness about these credits and direct individuals to free tax preparation services.
This urgent campaign highlights the real-life impact of the EITC, revealing how an average refund of $2,400 can cover a month’s rent or provide groceries for eight weeks. The initiative is already gaining traction, with resources being shared across cities and nonprofits nationwide.
As part of Professor Chris Goranson’s Policy Innovation Lab course, the five-member team — comprising Samiha Islam, Yuxin Zheng, Ana Rowley, Mitul Jhaveri, and Laura Santos — focused on addressing the barriers that prevent eligible individuals from claiming their benefits. “There’s millions of people that are eligible for these tax refunds that can help you pay for groceries, rent, child care,” Islam stated. “But structural barriers in the tax filing system make it difficult for people to get the benefits.”
Through interviews with local organizations, including the United Way of Southwestern Pennsylvania, the team identified key challenges such as lack of awareness and intimidation associated with the filing process. To combat this, they developed infographics and posters in plain language, simplifying the complex tax jargon typically found in IRS materials.
Additionally, the campaign provides information on accessing Volunteer Income Tax Assistance (VITA) sites, where individuals earning $67,000 or less can receive free tax preparation. “We’re not just letting you know that you’re eligible for the EITC, but giving you a place to go to help you file for it,” Islam emphasized.
After creating the marketing materials, the team shifted focus to developing an online platform to help taxpayers locate nearby VITA sites. They gathered crucial data on language accessibility and transportation options to ensure that all potential claimants could benefit from the services.
“I love the students’ curiosity,” said David Park, director of data and business analytics at the National League of Cities. “It seems like basic stuff, but when I’d send them a stack of readings, they’d come back with questions and ideas.”
As the project progressed, the team faced challenges, including the need to pivot from their initial plan to use AI for data analysis. “In order to use AI, you need a pretty complete dataset, which is not what we had,” Zheng admitted. After consulting with Goranson, they shifted to the marketing campaign and VITA site tool, while still outlining how the National League of Cities could eventually leverage AI for future initiatives.
The urgency of this work is underscored by the students’ ongoing commitment to public service. This summer, Islam is interning at the Tax Policy Center, evaluating strategies for a statewide EITC uptake campaign in Maryland, backed by $300,000 in funding. She credits her experience at CMU for landing this opportunity, stating, “The EITC project is the whole reason that I managed to get this internship.”
The team’s diverse backgrounds brought a wealth of perspectives to the project, showcasing the interdisciplinary focus of CMU’s Heinz College. “It speaks to Heinz’s curriculum, which is really about bringing people with different backgrounds together and working together,” Zheng concluded.
As this campaign continues to unfold, it represents a significant step forward in ensuring that eligible workers can access the financial support they deserve, making a tangible difference in their lives.