Schmudget Blog

New Report - Working Family Tax Credits Help Military Families

Posted by taral at Jul 02, 2013 01:05 PM |

In Washington state, an estimated 37,000 veteran and armed forces families with children receive the Earned Income Tax Credit (EITC) or the low-income component of the Child Tax Credit.

According to a new report released today by the Center on Budget & Policy Priorities, nationally, roughly 1.5 million military families, which include about 3 million children under age 18, received one or both of the credits.  The credits make a major difference to their economic security: 

  • The EITC and CTC together keep more than 140,000 military families — with nearly 300,000 children and 600,000 total family members —above the poverty line, based on the federal government’s Supplemental Poverty Measure, which counts income from tax credits.
  • These credits reduce the severity of poverty for about another 800,000 members of military families.
  • The credits also help working families with incomes modestly above the poverty line who still struggle with basic expenses like housing, school clothes, car repairs, and groceries.

The tax credits can also increase opportunity for children in military families.  Recent academic research demonstrates that EITC receipt is linked to improved performance (including better test scores) by children in school — and to increased employment and earnings when the children reach adulthood. 

Only people who are working can claim the credits, which were modestly expanded in recent years so they provide more help to more families.  On average the credit amounts to $1,000 per household from the low-income portion of the Child Tax Credit in 2011 and $2,650 from the EITC.

The Washington state version of the EITC is the Working Families Tax Rebate (WFTR). It was enacted in 2008, but never funded.

 The Center on Budget and Policy Priorities’ full report, Working-Family Tax Credits Help Over One Million Military Families can be found here.

Document Actions
HIGHLIGHTS

A BIG Thank You!

Thanks to our generous community, we surpassed our GiveBIG 2017 fundraising goal and raised almost $10,000! Thank you to everyone who made an investment in the Budget & Policy's work advancing policies that promote shared prosperity. If you'd still like to support us, you can always make a gift here

Watch Our Budget Beat Webinars

We host regular Budget Beat webinars throughout legislative session to bring you updates and breaking news from Olympia and timely policy analysis. Visit our YouTube channel to watch our previous Budget Beats. 

Testimonies in Olympia

To advance our legislative priorities, the Budget & Policy Center team is in the state capitol throughout session testifying on a wide range of bills. Watch our recent testimonies on TVW:
Misha TVW

View Our School Funding Plenary 

Roxana_BMC_plenary_2016View the Budget Matters 2016 conference plenary, "What's at Stake in the 2017-2019 Budget: Funding McCleary and Beyond." Moderated by Ann Dornfeld of KUOW, the plenary features Nathan Gibbs-Bowling, the 2016 Washington State Teacher of the Year; Lew Moore of the Washington Research Council; Roxana Norouzi of OneAmerica; and Sen. Christine Rolfes. The plenary starts after an intro by Executive Director Misha Werschkul and an intro video by Gov. Inslee.