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Help for Tennessee's rural poor

irs.gov

MURFREESBORO, Tenn. (WMOT/TNS)  --  A new study says a tax credit helping low-income working families keep more of their earnings is proving to be especially important in rural areas and small towns across Tennessee.

Jon Bailey with the Center for Rural Affairs says a Center study suggests the Earned Income Tax Credit is one of the nation’s most effective anti-poverty tools.

Bailey says the number of Americans who claim the credit is less than 19-percent in metropolitan areas, compared to more than 21-percent in rural areas and small towns. Bailey predicts that divide will continue to widen.

"Because the gap between rural areas and urban areas has been growing. So if that trend continues, I would suspect that more people are going to need to use the Earned Income Tax Credit. It's going to be even more important."

Bailey says the higher use of the tax credit tracks right along with the other economic indicators that point to many rural families still struggling financially.