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Neoliberalism and Anti-poverty Tax Policy: How Single Mothers Negotiate Tax Filing and the Use of the Earned Income Tax Credit with Their Young Adult Children

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Abstract

Few social policies provide financial support to parents whose children are transitioning to adulthood. The earned income tax credit (EITC) is one exception. Parents with children between 18 and 24 years old who are enrolled in school full-time can claim their children for the EITC on their tax returns. Yet, scholars have largely overlooked how families access and use the EITC when they have adult children. Drawing on 30 interviews with low-to-moderate-income single mothers, primarily women of color, I illustrate how neoliberal socio-cultural values of independence, self-sufficiency, and responsibility dominate the mothers’ decisions regarding tax filing and tax refund allocations. Some mothers forego claiming their adult child for EITC and encourage their child to “claim themselves” to foster independence and responsibility. Their child receiving a tax refund also gave mothers an opportunity to observe their child’s financial responsibility. Other mothers balanced fostering independence with the family’s financial needs by explaining to their child that as a parent they would receive a larger tax refund if they claimed them but wanted their child to decide how to file their tax returns. Still, some mothers who could not claim their adult child for the EITC due to the school attendance requirements felt the policy did not respond to the financial responsibilities they had to their children, who navigated harsh economic circumstances produced under neoliberalism. Given neoliberalism’s influence on socio-cultural values and public policy, reforms that center the socialization goals and financial needs of economic and racially marginalized families are discussed.

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Acknowledgements

The author acknowledges Dr. Julia Henly, Dr. Marci Ybarra, Dr. Kristin Seefeldt, Dr. Gina Samuels, and Dr. Susan Lambert for their critical review of early versions of this manuscript. The author acknowledges Dr. Kess Ballentine, Dr. Alix Gould-Werth, Dr. Alejandra Ros Pilarz, and Dr. Jaeseung Kim for their critical review and helpful discussion of the manuscript.

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    Dylan J.F. Bellisle

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Bellisle, D.J. Neoliberalism and Anti-poverty Tax Policy: How Single Mothers Negotiate Tax Filing and the Use of the Earned Income Tax Credit with Their Young Adult Children. J Fam Econ Iss (2023). https://doi.org/10.1007/s10834-023-09919-7

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