When higher wages have a big catch
Families with a lower income are more likely to use certain public benefits—and lose them with a small raise or higher-paying job. Here are some of the most common benefits people can lose when they go over a benefits cliff.
By Gabriella Chiarenza
December 2, 2022
Child Care Development Fund (CCDF) helps cover the cost of child care for lower-income families. A child care benefit subsidy based on the family’s income may be paid directly to a child care center, or may be issued as a voucher to the family.
Medicaid and the Children’s Health Insurance Program (CHIP) are health insurance coverage for lower-income adults and children.
Temporary Assistance to Needy Families (TANF) is a financial benefit that might cover a range of needs, including work training, childcare, and early education programs.
The Earned Income Tax Credit (EITC) gives working people with low and middle incomes a tax credit for a percentage of their earnings. When the maximum level of earnings is reached, the credit phases out.
Child Tax Credit (CTC) is available to parents of dependent children under 17.