My name is Julie. I am here today to talk to you about the importance of the EITC and what it provides for my family. I am a single mother of three young children and I am currently working full time for a non-profit agency. I also attend Simpson College full time, pursuing a degree in accounting and business management. I feel very grateful to have a full time job and also the opportunity to pursue my degrees.
In my work I deal with a lot of single mothers who are living in poverty and cannot afford to support their families in the way that I can. However, I still have to watch every cent I spend and do not have luxuries that others have. Last year I made $33,173.00. Out of that, $6300.00 went to child care costs and $9900.00 went to rent and utilities. $2,000 more was taken out of my wages for payroll taxes. I of course also pay the gasoline tax and sales tax on items that are necessities for me and my children. Through all of this, the EITC has been an absolutely critical form of relief to my family.
The EITC refund in recent years has also allowed me to put a down payment on a reliable used car that gets me back and forth to work and school. This money also allowed me to save on buying propane because I have been able to buy in bulk.
This year for my federal taxes, I am scheduled to receive a $2279.00 EITC refund and an additional $3000.00 from the child tax credit. These refunds are very important to me and my family. I plan to pay for part of my summer college tuition fees, pay preschool tuition for my youngest child, and catch up on medical bills that were incurred as a result of my daughter’s illness. A portion of my return will go to saving accounts for my children. A few years ago we set savings goals so that they could save to have some money to start with when they become adults, something I wish I would have had at that age. They are encouraged to save birthday, Christmas, or and any money they earn doing chores and at the end of the year when I receive the EITC refund, I match whatever they have saved and we make a deposit into their account. None of my refund is spent on extravagant purchases, but instead represents the priorities of my family. Most of my refund is spent in my home town, on things that are important to us.
- U.S. Census Bureau, “American FactFinder,” 2007 American Community Survey (accessed May 2011). Data came from the following tables: Statewide poverty percentages, GCT1701, Ratio of income to poverty level, C17002
- U.S. Census Bureau, “American FactFinder,” 2009 American Community Survey (accessed May 2011). Data came from the following tables: Statewide poverty percentages, GCT1701, Ratio of income to poverty level, C17002
- Half in Ten analysis of Table 1, 2007 State Expenditure Report, National Association of State Budget Officers.
- Half in Ten analysis of Table 1, 2009 State Expenditure Report, National Association of State Budget Officers.
- IRS EITC09. EITC09PY Table as of 12/31/10. IRS Master File, posted to IRS website, EIC Participation For Tax Year 2009, by State.