Closing the Income Gap: Federal Tax Credits for Working Families

One in four working families in the United States earn wages so low they struggle to survive financially. More than 25 percent of working families earn less than $36,000 per year, making it difficult to support their families. One-third of families have zero net worth, or less. Another 25 percent are asset poor, meaning they lack the resources to live at the poverty level for more than three months after losing their income. The federal earned income tax credit (EITC) makes a difference for millions of working families and pulls more families out of poverty than any other federal program. Yet, many who qualify do not claim the credit. State legislators can help families claim these tax credits, using federal money to support working families that are struggling to make ends meet.

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