Single moms

A single mom with two children cannot make it without some childcare. If she makes the minimum wage of $7.25 her annual income is $14,500 less $1,105 for payroll tax plus $5,572 earned income tax credit (eitc) plus $4,000 child tax credit for a net of $22,962 At $15 per hour her annual income is $30,000 less $2,295 for payroll tax plus $3,000 eitc plus $1,900 child tax credit for a net of $32,605 At $22.50 per hour the annual income is $45,000 less $3,442 for payroll tax plus $1,120 child tax credit plus 500 eitc for a net o$43,178. In each case as the gross income increases by $15,000 the net goes up by $10,000. She loses a third of her income because government benefits decrease. Childcare in Mpls is $300 per week per child so this young mother would spend $2,500 per month for childcare. Two bedroom apts rent for $1,500 and up. It takes $48,000 per year for childcare and rent. The first mom whose income is less than the poverty level qualifies for Medicaid to cover medical expenses. She qualifies for up to $532 cash benefit per month. She qualifies for SNAP (food) up to $352 per month. Also WIC which is more food for women and children. Also breakfast and lunch are free for school age children. In addition there are grants for low income moms. If a young woman graduates from high school and does not have children until she is married there is a 95% chance that she will not end up in poverty.