Benefit Programs

Earned Income Tax Credits (EITCs) are refundable tax credits that give low-income households a tax break. The Internal Revenue Service (IRS) administers the federal EITC, which can reduce the amount of federal taxes owed or increase the refund for qualifying households. In 2022, approximately $2 billion of the EITC was disbursed to 786,000 workers and families in North Carolina alone. The average EITC amount across the state was $2,585 per recipient, which mirrored closely the national average of $2,541 per recipient.

While many states offer a state-level EITC that reduces the state tax liabilities to eligible families, North Carolina eliminated their state EITC in 2014.

Food and Nutrition Services (FNS), also known as “food stamps” and federally referred to as the Supplemental Nutrition Assistance Program (SNAP), provides low-income individuals and families with cash assistance for food. Eligible participants receive an Electronic Benefits Transfer (EBT) card, pre-loaded monthly with their benefit amount. EBT cards can be used anywhere SNAP benefits are accepted but cannot be used to purchase hot or cold prepared food items (e.g., sandwiches, salad bar), pet food, alcohol, tobacco, or other non-food items like household supplies.

The Housing Choice Voucher program, often referred to as Section 8, is administered by the Housing Authority of Winston-Salem (HAWS) and provides rent subsidies to low-income families in the form of vouchers. HAWS issues the voucher directly to the owner or landlord, and then the tenant pays the difference between the actual rent charged and the voucher amount. Families may have to pay up to 40% of their income towards their housing costs.

To learn more about the Housing Choice Voucher program in Forsyth County, you can read the report here.

With state and federal funding sources, the North Carolina Child Care Subsidy Program provides financial assistance to families to help cover childcare costs. Most families receiving the subsidy must pay 10% of their gross income in child care costs, and the subsidy program covers the rest, up to a given maximum.

North Carolina offers different Medicaid programs for various populations, each with specific eligibility criteria. The following focuses on three key Medicaid programs: Medicaid for Families with Dependent Children (MAF), Medicaid for Infants and Children (MIC), and Medicaid Expansion (MXP).

Medicaid for Families with Dependent Children (MAF): MAF provides full Medicaid coverage for children aged 21 and under, as well as for parents, caretaker relatives, and spouses caring for a related child under age 18 in their household. The family must have a very low income; for example, the monthly income of a family of two cannot exceed $569, while a family of four cannot exceed $744.

Medicaid for Infants and Children (MIF): MIC offers full Medicaid coverage for children aged 18 and under living in low-income households. Families must have incomes at or below 211% of the Federal Poverty Level (FPL) to qualify.

Medicaid Expansion (MXP): North Carolina expanded its Medicaid program, and as of December 1, 2023, low-income adults between the ages of 19 and 64 without insurance may apply for Medicaid coverage. Families must have incomes at or below 211% of the Federal Poverty Level (FPL) to qualify.

Families with incomes between 100% and 400% of the FPL may also qualify for health insurance tax credits under the Affordable Care Act (ACA). These tax credits help reduce the cost of health insurance purchased on the ACA marketplace. While the Benefits Cliff simulator does not account for ACA tax credits, their availability can help with the transition for those moving from Medicaid to ACA marketplace plans.

Smart Start Child Care Scholarships are managed by Smart Start of Forsyth County. The scholarships help subsidize child care expenses for children ages 0-5. Generally, guardians pay a copay equaling 10% of household income.

The Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) serves low-income and nutritionally at-risk pregnant, breastfeeding, or postpartum women, as well as infants and children up to age 5. WIC provides specific voucher amounts and types of WIC-approved foods that vary depending on the participant’s category (e.g., infants and children vs. postpartum or breastfeeding mothers). A complete list of WIC-approved and non-approved foods can be found here.

North Carolina’s Temporary Assistance for Needy Families (TANF) program, Work First (WF), provides cash assistance and job training to low-income families. Families can receive Work First benefits for up to 24 months (extensions are available), and then they must wait 36 months before reapplying.

Our information for Work First comes from the NC TANF State Plan, hereinafter “State Plan”.