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

Sign Up and Save the Date!

We will host two Budget Matters policy summits this year – one in Spokane on October 31 (register now) and one in Seattle on December 6 (registration coming soon)! 

Our Policy Priorities

Washington state should be a place where all our residents have strong communities, great schools, and the chance for a bright future. Our 2017-2019 Legislative Agenda outlines the priorities we are working to advance to build a better Washington.

Budget Beat!

Check out the Budget Beat webinars we hosted throughout the 2017 legislative session, including our most recent Budget Beat about federal budget proposals, featuring Louisa Warren of the Center on Budget and Policy Priorities, on our YouTube channel

Testimonies in Olympia

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