Together, the federal Child Tax Credit (CTC) and Earned Income Tax Credit (EITC) keep more than five million children out of poverty. North Carolina's state EITC builds on these successful investments, offering North Carolina kids additional protection. Together, these credits typically provide enough to help parents make a mortgage or rent payment or buy several months of groceries.
In Raleigh: Supporting Essential Workers Through The N.C. Earned Income Tax Credit
Stagnant wages, declining benefits, and higher costs for basic needs (2009 county data here) have created family challenges to balancing budgets — leading to missed bill payments, increased debt, or the inability to provide for the family’s most basic needs.
In 2010, 893,213 working families — 21 percent of all NC taxpayers — filed for the EITC and received a total of more than $2.05 billion, an average of $2,291 per family. The EITC should be strengthened in North Carolina.
A family earning less than $49,078 in 2011 could receive a credit up to $6,039 in federal and N.C. EITC refunds. EITC Eligibility makes many firefighters, nurses and teachers eligible.
Fact Sheet on North Carolina’s EITC, click here.
In Washington: Raising Taxes on 5.5 Million Children
With child poverty at a 20-year high, the Child Tax Credit is a lifeline to many kids, covering necessities such as rent, food, and clothes. But the U.S. House of Representatives has passed budget legislation that would deny the credit to 5.5 million children (four out of five of whom are U.S. citizens) living in immigrant families, taking $1,800 a year from families with average incomes of only $21,000. The same House budget process has also produced legislation to cut child care and child abuse prevention and response.
At a time when one-in-four North Carolina children lives in poverty, government shouldn't be making it harder for any parent to meet their children's basic needs. For more details on the House budget's threats to kids, read the First Focus fact sheet.