In this life, there are only a few certainties and one of them are taxes. Most of us hate paying those taxes but a tax credits calculator can make the process seem less painful. If a single mother of two young children is struggling to make ends meet, tax credits can greatly help her provide for herself and her children.
However, this is not a replacement for employment. Those at the lower end of the financial spectrum often see these credits for a short time. This is a way of gauging how much of a refund will be given back to people. The Urban Institute, a nonpartisan think tank for social policy in Washington, has been instrumental in devising this calculator.
Elaine Maag, a co-director for the calculator at the institute, stated that many people feel it is almost useless to work anymore due to the declining amount of credits. What was once a glimmer of hope for the poor has become a fleeting dream. The Tax Credits Calculator also helps shed light on how each individual state rolls out tax credits.
Ms. Maag goes on to state that our hypothetical mother could receive approximately $18,000 in funds from groups such as Temporary Assistance for Needy Families (TANF), the Supplemental Nutrition Assistance Program (SNAP) and a Women, Children and Infants subsidy (WIC). Once the mother begins working at a minimum wage job, she will earn around $18,000 in wages but the benefits will begin to rapidly decline because she is now “making her own way.” Using the Tax Credits Calculator will reveal that unlike before, she is not getting back credits as much.