Calculating Family Resources
The Family Resource Simulator calculates the family's resources as the family's earnings increase. In addition to earnings, resources may include child support and work supports such as tax credits, TANF cash assistance, and supplemental nutrition assistance program (food stamps). Work support receipt varies based on user choices in Step 4 and on the Simulator's calculations regarding the family’s eligibility for work supports. For more information about how the Simulator determines eligibility, see Assumptions for Determining Work Support Eligibility. Some work supports, including all in-kind work supports--such as public health insurance, child care subsidies, and housing vouchers--, are not reflected in family resources. These work supports are reflected in family expenses; for more information, see Calculating Family Expenses.
Parental earnings. If the family has more than $5,000 in savings (based on the choices made in Step 3), a small amount of interest income is also included based on the federal passbook rate.
Child support income received by the family from non-custodial parent(s) (based on the choices made in Step 3). Note that if the family is receiving TANF cash assistance, this reflects the amount of child support passed through to the family (if any) by the state’s TANF program
Federal Tax CreditsFederal Earned Income Tax Credit, Federal Child Tax Credit, and Federal Child and Dependent Care Tax Credit. The Making Work Pay Tax Credit from 2009 and 2010 is also included for Colorado, Mississippi, Montana, and North Dakota. Note that for Simulators beginning in 2015, premium tax credits are considered reductions in healthcare costs, rather than as net gains to family resources.
For Simulators dated 2003 to 2005, however, the Federal Child Tax Credit and Federal Child and Dependent Care Tax Credit are reflected in tax calculations (see Calculating Family Expenses).
State Tax Credits
State Earned Income Tax Credit, State Child Tax Credit, and State Child and Dependent Care Tax Credit, where applicable. In some cases, the value of state credits may be too small to be visible in the graphs. Vermont's State Renter Rebate is also included as a resource.
For Simulators dated 2003 to 2005, however, nonrefundable state earned income tax credits and nonrefundable state child care tax credits are reflected in tax calculations (see Calculating Family Expenses).
Note: In Maryland, which offers both a nonrefundable and a refundable EITC, the combined value of these credits is displayed.
Local Tax Credits
Local Earned Income Tax Credit and Local Child Care Tax Credit, where applicable. In some cases, the value of the local EITC may be too small to be visible in the graphs.
For Simulators dated 2003 to 2005, however, nonrefundable local earned income tax credits and nonrefundable local child care tax credits are reflected in tax calculations (see Calculating Family Expenses).
Temporary Assistance for Needy Families (TANF) cash assistance.
Supplemental Nutrition Assistance Program (SNAP or food stamps)
Cash value of SNAP benefits.
Low Income Home Energy Assistance Program (LIHEAP). LIHEAP benefits are included in the Iowa, Montana, North Dakota, Vermont, Ohio, Florida, and Colorado Simulators.
This site copyright ©2019 The Trustees of Columbia University in the City of New York, for its
National Center for Children in Poverty (NCCP). All rights reserved.