Why
IDAs? IDAs help low-income
families save money to help them get out of poverty and achieve
economic independence. IDAs, through the use of matching deposits
and supportive community organizations, help low-income families
acquire both the capital and skills they need to "jump-start" their
lives, set goals for their future, and integrate themselves into
the mainstream economy. IDAs are not handouts; they are investments
in people who are willing to save and invest in their future.
Who's eligible to participate
in the IDA demonstration?
Participants in the Temporary Assistance for Needy Families program are automatically
eligible for the IDA program. Others must qualify for the Earned Income Tax
Credit and meet a net worth test. (Household net worth cannot exceed $10,000,
excluding the value of the primary dwelling unit and one motor vehicle owned
by the household). Participants are chosen from among eligible candidates.
What are the most current EITC
Income guidelines?
Income Limits:
To receive the EITC you must fall under certain income limits that increase with family size. Below is a chart with these limits and the maximum federal and N.C. EITC. The amount of the EITC increases with income, reaches a plateau (the maximum amount) and then slowly decreases. Use the EITC Estimator, to estimate the amount of the EITC for your income. The North Carolina EITC is 5 percent of the federal EITC and uses the same eligibility requirements.
Number of Qualifying Children
Income Limit: Earn Less Than
Maxium Federal EITC
Maximum N.C. EITC
Three or more
$45,060 ($50,270 if married filing jointly)
$5,891
$294
Two
$41,952 ($46,044 if married filing jointly)
$5,236
$261
One
$36,920 ($42,130 if married filing jointly)
$3,169
$158
None
$13,980 ($19,190 if married filing jointly)
$475
$23
Investment income:
Less than $3,200 for all income groups
Will the funds in an IDA count
against eligibility for other programs?
Of the funds deposited into an IDA, only those funds deposited by the individual
(including accrued interest) may be considered to be income, assets, or resources
in determining eligibility for any federal program based on need. That
is, the matching funds won't be considered in determining eligibility.
How is the asset acquired? What
about fraud?
The legislation states that IDA funds must be paid directly to the asset provider
(e.g., to the mortgage provider, university, or business capitalization account
at a federally insured financial institution). In addition, written authorization
from the program is required for all withdrawals. Participants can access
their own savings funds only on a narrowly defined "emergency" basis:
participants can never access the matching funds (access to which is impossible
if the program maintains "parallel" accounts). Finally, a federally
insured financial institution must hold all IDAs. Consequently, fraud
or misuse of an IDA is unlikely.
