Accepting a new job with a higher salary is a major step toward financial independence. It’s a moment of pride and a chance to build a better future. However, that bigger paycheck can have a hidden downside for many low to moderate-income families. They often face the loss of critical government benefits. This is known as the “benefits cliff.” It occurs when a small increase in earnings pushes a household’s income just over an eligibility limit. Suddenly, the modest pay raise is wiped out by the loss of benefits that were worth far more. You must understand which government programs you lose access to when evaluating a new job offer.
Here are seven key government programs that are tied to strict income limits.
