TABLE 1

Table 1: Questionable Refund Program Data for 1993 Through 1996

Calendar year	Number of fraudulent returns detected	Amount of fraudulent dollars detected (in millions)	Percent of fraudulent returns that involved the EIC

1993	77,840	$136.8	98
1994	77,781	160.5	91
1995	62,309	131.7	73
1996	24,919	82.5	72

Source: IRS data.

TABLE 2

Earned Income Credit Parameters (1997)

	Two or more qualifying children	One qualifying child	No qualifying children

Credit rate (percent)	40.00	34.00	7.65
Earned income amount	$9,140	$6,500	$4,340
Maximum credit	$3,656	$2,210	$332
Phaseout begins	$11,930	$11,930	$5,430
Phaseout rate (percent)	21.06	15.98	7.65
Phaseout ends	$29,290	$25,760	$9,770

TABLE 3

	1 Child	2 or more Children	No Children

Credit rate (%)	26.30	30.00	7.65
Phaseout rate (%)	15.80	17.68	7.65
Earned income threshold	$7,750	$8,425	$4,000
Phaseout threshold	11,000	11,000	5,000
Phaseout limit	23,755	25,296	9,000
Maximum credit	2,038	2,528	306