Information on Education Tax Credits and College Enrollment Decisions

The United States federal income tax provides tax benefits for households with college-enrolled students. Nonetheless, the complexity of the tax code may prevent eligible individuals from fully taking advantage of this financial aid for college. In this project, we test the hypothesis that providing information on tax benefits for college enrollment can increase college attendance. The research is based on a randomized mailing experiment conducted in collaboration with the Texas Higher Education Coordinating Board. In the experiment, we will randomly select applicants to receive information on federal tax benefits related to college-enrolled dependents will be mailed to households with student children who are considering college attendance. The analysis will measure the impact of providing this tax-benefit information on college application and enrollment outcomes. This experiment will be implemented beginning in the Fall of 2013, with outcome data becoming available by late Fall of 2014.