Framing and claiming Earned Tax Credit (EITC)

Framing Effect and Tax
Intervention Tax

How framed letters increase participation

Intervention Description

Researchers tested the effectiveness of three different interventions on the likelihood of individuals to claim Earned Income Tax Credit (EITC). In one condition, a standard letter informing participants that they had not claimed their EITC was distributed. In another condition, a simplified version of the standard letter was distributed. In the third condition, the letter openly displayed the benefits of claiming EITC. The results showed that all three of the letters changed participants’ behavior by increasing the chance that in the following year, the EITC would be claimed. However, the condition with the simplified letter as well as the condition with the displayed benefits demonstrated greater levels of claimed benefits than did the standard letter.