JFActivist

A Voice of Disability from Africa, Part 1

Jenifer Simpson, AAPD's Sr. Director, Telecommunications & Technology Policy, recently returned from a trip to Africa in conjunction with work she is doing with the United Nations on the technology accessibility provisions of the United Nations Convention on the Rights of Persons with Disabilities. Jenifer met many advocates from the African continent during her travels, and several intend to share their stories, in their own words, here on the blog.

***************************************************************************
A Voice of Disability from Africa


Guest Column
By Moses Gonsi

I am Moses from Nigeria. Here is my disability story:

I am Moses Gonsi, born on the 3rd of April, 1973. I come from Lewe Town in Gokana, a local government area of Rivers state, Nigeria.

Born deformed, I  was put in a basket and abandoned in a place called the Forbidden Forest in my village by my father, who was amongst the people that stood strong in ensuring that an age-long tradition of killing deformed and twin babies was respected.

So I was kept in the forest where ants moved around the basket but the mystery was that they never got inside. I was exposed to the harsh conditions of the weather and other things for several days but remained alive and unhurt until I was picked up by a hunter. He then handed me over to a nurse that took care of me, and later to a chief, who in turn brought me to Port Harcourt Cheshire Home, where I reside till date.

My guardian, his royal majesty, late king (Justice) Ambros E. Allagoa (King of Nembe Kingdom) till his death and his wife left no stone unturned in giving me a formal education. I had my nursery education at Fatima Nursery School, Port Harcourt.  Thereafter, I proceeded to St. John’s State School, later to Baptist High School, all in Port Harcourt, where I obtained my senior school certificate.

Unfortunately, I haven't been able to get admission into a higher institution yet.

Though disabled I acknowledge the fact that there is ability in disability. I went into a small-scale poultry farming enterprise at the home where I am now residing. I am of the Anglican faithful and totally into Gospel music.  I love singing, planting and growing flowers, traveling and engaging in activities that will improve the problems of humanity.

I have been to London with the opportunity given to me by the late king (Justice) Ambrose E. Allagoa and Leonard Cheshire Foundation International. I strongly believe there are potentials God has embedded in everyone, disabled or not. If given necessary support to unveil my potentials, the heaven will be my limit. Thank you and God bless you.

~Moses Gonsi
Port Harcourt, Nigeria

Growing Our Culture of Voters

Guest Column

By Rachel Freund

“The vote is the most powerful instrument ever devised by man for breaking down injustice and destroying the terrible walls which imprison men because they are different from other men.”
– Lyndon Johnson

Voting does more than elect politicians. Through the act of voting, people become dynamic players in the political arena where policy decisions are made and both their political and personal power grows. They become active citizens, connected with the community of voters.

Unfortunately, according to US Census data, people with disabilities, including mental health disabilities, are 15% less likely to be registered to vote and 20% less likely to vote if registered. Consequently, our issues take a back seat to those associated with groups who have more political clout, groups more likely to turn out voters.

The issue of mobilizing our community as a ‘culture of voters’ is multi-faceted and requires a comprehensive approach to remedy. As an organizer focusing on cross-disability advocacy and citizen participation over the past six years, I’ve been fortunate to work with a community of skilled advocates. Here are three steps we have learned can get results:

1. Use the National Voter Registration Act
The National Voter Registration Act, (NVRA – also known as the Motor Voter Law) requires all state-funded organizations that provide services to people with disabilities, including mental health services, like out-patient, residential, psychiatric rehabilitation, case management and drop-in centers, to assist those they serve with voter registration and to report their registration data every month to their state.

Arm yourself with information about NVRA and work to assure that agencies you work with are fulfilling their obligation. In the 14 years since NRVA was signed into law, its use has declined with each passing year. Learn more about NVRA and how it can be a powerful tool in your voter engagement tool box. Here are some great resources:

• Text of the National Voter Registration Act
• Project Vote is non-partisan and non-profit; their NVRA Implementation Project assures that NVRA is working
  
• The American Association of People with Disabilities (AAPD) provides ideas, data and leadership on mobilizing the disability vote, including the use of the NVRA to make that happen
• Kay Shriner’s research is enlightening

2. Activate the grassroots to register, educate and energize our peers.
NVRA is your ticket into agencies. Staff are often weary and overworked and have little time to make sure that they are offering everyone they serve an opportunity to register to vote. They’ll be happy to have your help.

You can train volunteers to register and educate their peers. At Pennsylvania Mental Health Consumers’ Association (PMHCA), we’ve trained dozens of voter educators who are helping to build a consumer power base. Those who get involved become active voters who continue to be civically engaged by advocating for themselves and other people with disabilities.

People are far more likely to be drawn in if their peers encourage them to get engaged. We set up tables in out- patient clinics, visited personal care homes and other residential facilities and show up at food pantries and at special events with clipboards and voter forms in hand.

This work changes the people who are involved. One volunteer, Ralph, reported that after working hard on our voter outreach project, “I felt a sense of belonging. I feel that I’m here representing a lot of people. I can go back home and share the information with others who aren’t as involved as I am. Being involved in this group, being respected by others, has helped me to have respect for myself. If you have a sense of self-respect, you can go anywhere with it.”

Get organized! You can find wonderful resources on voter engagement here:

• Wellstone Action’s resources for mobilizing voters
• Faces and Voices of Recovery voter engagement guide
• Tennessee Disability Voter coalition - www.tndisability.org
• Voterization 2008, hosted by the National Low Income Housing Coalition
  

Where will you find volunteers to make your project a success? I like to follow the advice of Michael Gecan, author of ‘Going Public; an Organizer’s Guide to Citizen Action’:

“People who have ideas and drive are on every street, in every walk of life, waiting in the wings, ready to be discovered. Someone has to reach them and recognize them. Someone has to ask them to step out, not to be consumers or props or spectators, but to be players in the unfolding drama of public life.”

3. Make sure your registration work gets counted
Unless policy makers have data to show how many voter registrations we produce, we will not be recognized as a political force. We can use the framework of the NVRA to assure our numbers are documented.

You may have to play detective (I like to see myself as a cross between Erin Brockovich and Velma from Scooby Doo…). First, find out how your community is doing! You can see the grim statistics for your state by checking this report to Congress and looking at page 34. http://www.eac.gov/clearinghouse/docs/the-impact-of-the-national-voter-registration-act-on-federal-elections-2005-2006/attachment_download/file

Find out how the data gets collected in your community. Who reports on how many registrations come from Disability Service Organizations? Start with your Department of Human Services. Ask questions! Your Department of State should be able to explain to you how they collect data from various voter registration sources and how you can be sure your numbers are showing up.

We were displeased to find that the system in our state, Pennsylvania, has broken down over the years since NVRA passed and that most counties in our state reported ZERO registrations from disability service organizations, in spite of our hard work.  We are now working closely with the Department of State to correct the problems in record-keeping.

As you work to implement these three steps, you’ll be enriched with marvelous partnerships – there are strong voters’ rights advocates everywhere who will be happy to work with you, from the League of Women Voters to People for the American Way and the League of Young Voters. All of work becomes more robust as we knit it together. Share your triumphs and challenges with your peers; we’d love to hear about what’s happening in your community!

Civil rights activist Bayard Rustin offers advice that still rings true at this moment in history, “More than voter registration is involved here. A conscious bid for political power is being made, and in the course of that effort a tactical shift is being affected… calling for the building of community institutions or power bases.”

Rachel Freund is the Policy Advocate Coordinator for the Pennsylvania Mental Health Consumers’ Association and a member of the Steering Committee for the Disability Voting Coalition of Pennsylvania. Rachel has been an organizer in cross-disability advocacy and citizen engagement for the past six years.

What About that Microsoft, Yahoo and Google thing? Do We Care?

Staff Column

The TechnoBeat

by Jenifer Simpson (pictured left)

A recent editorial from the Mercury News caught my eye about the Microsoft Yahoo merger thing. The writer points out that the combined company – dare I say  “Ms. Yahoo”? -- would be a big competitor to Google, a favorite search engine, and the truth be told, something I use at least once a day!

The editorial talks about whether there would be more competition and then argues for close scrutiny by the Department of Justice (DOJ). This is to see if Ms. Yahoo would use her new market leverage to create barriers of the sort that got Microsoft in trouble with U.S. and European regulators in past years. Or if there are concerns about how much E-mail might be controlled by the combined company, and about consumer privacy being upheld. I’m sure all of these are good and interesting topics and I certainly want DOJ to do its job, but what I end up wondering is about the accessibility issues for people with disabilities.

Will Ms. Yahoo keep some of the commitments already made to ensure accessibility?  Will the Yahoo and Microsoft staff who work on disability accessibility keep their jobs? Do we need to be worried about any disability losses here as a result of any merger? And should we take a look at what Google does for disability accessibility? Can we make a comparison about the combined new company against Google?  Could we end up with more accessibility one way or the other?  If you have some thoughts on these, please email me at AAPDJenifer@aol.com.

25 Years of Direct Action - Celebrate With Us!

Guest Column

By Anita Cameron
Activist
Rochester ADAPT

25 Years of Direct Action! Celebrate with Us!

ADAPT is having its 25^th birthday! This April will mark the 25^th anniversary of the first national ADAPT action. This year also marks the 20^th anniversary of my first national ADAPT action. I’d been hanging around ADAPT since 1986, always on the fringes -- a shy, quiet young thing, totally unremarkable, except that I was Dennis Schreiber’s attendant and interpreter. Almost anybody around back then remembers Dennis, but probably doesn’t remember the mousy little Black girl with unruly hair who was his attendant. That was me.

What is ADAPT, you ask? Well, ADAPT is a national, grassroots disability rights organization that began in Denver, Colorado. It was started by 19 people with disabilities who wanted access to public transportation and public places in their community. Many of them had been incarcerated in a nursing home for most of their lives, and had only been out a relatively short time. One of their first big battles was with the Regional Transportation District (RTD), Denver’s transportation authority. After countless meetings and negotiations that went nowhere, the group had had enough, and staged a two-day protest where they blocked the intersection of Colfax and Broadway, the busiest streets downtown, blocking buses, and getting out of their wheelchairs and lying in the street. That was the “shot heard ‘round the world”, if you will, and people with disabilities in other cities wanted to learn how to do direct action to bring about change.

You can’t even begin to talk about ADAPT without talking about Wade Blank. Wade was once an activities director in a nursing home called Heritage House This was the place where the original group that started ADAPT was incarcerated. Wade’s history of working for social justice and social change began long before then, but while at Heritage House, he listened to the dreams of the young folks trapped there, and ultimately helped them to free themselves, and move into the community. They founded Atlantis Community, the second oldest independent living center in the nation.

Once the Gang of 19 was out in the community, they realized that there were many barriers—inaccessible public transportation, restaurants, stores, and other places. Wade imparted his knowledge of community organizing and activism to the budding activists, and they began the daunting task of fighting for the right to go where everyone else could go.

Today, ADAPT has grown from the “Gang of 19” to a grassroots network of thousands of people with disabilities and our allies, with at least 500 people from over 30 states, and sometimes other countries, continually showing up at each action. We are a diverse group...by disability, by politics, by gender and orientation, by race, by ethnicity, by age (literally cradle to grave, and even having had people die at actions), by geography, by ability to communicate and/or use assistive communication, by income (though most of us are at or below poverty level), by marital status or arrangement, by work experience or former occupation, or inability to work, by institutional history, and so much more! We are a real community, even family, that celebrates births, and the lives of those who have passed on, and celebrates the achievements of each of us, be it personal or systemic. Though we have no bylaws, elected officials, or directors, we have managed to realize many significant achievements.

We have gone from being considered rag-tag “militants”, “radicals”, and “hippies” to being a powerful force to be reckoned with. We represent the cutting edge of disability rights and activism, and have gained the respect of many elected officials and other powerful people. Some may not like ADAPT, but they do respect us, and it is much easier to get to the table to help shape policy.

I, too, have grown. I started out as a shy, mousy 21-year-old, who rarely spoke, and when I did, it was barely above a whisper. I desperately wanted to work for social justice and social change. Having been born only three years before the death of Dr. Martin Luther King, Jr., I felt guilty for not being able to fight for the civil rights of African Americans. I had been involved in several peace and justice movements, but I never felt at home, and never felt as if I were a real part of things. Also, I often was the only African American taking part in the activities.

I joined ADAPT near the end of 1986. At the time, I was living in , , my home town. A friend of my godmother, a Sister in the order of the School Sisters of Notre Dame (SSND), called her to see if there was anyone that she knew who would be interested in working as an attendant for a man who had a disability. The man belonged to a disability rights organization and traveled, and needed someone as a back-up staff. My godmother immediately thought of me, and suggested that I apply for the job. I did, and the rest is history. For the first year, I just hung out, quietly participating in local actions. I was so amazed at the work that ADAPT was doing locally with transportation issues. I also felt at home because here were people who either looked like me, or had similar experiences. Then, in March of 1988, I was finally able to go on my first national action—DC Siege/DOT! I was forever hooked, and from then on, I went with Dennis on ALL of the actions.

Shortly after I joined ADAPT, I met Wade Blank, and we hit it off immediately. In December, 1988, I moved to , to work with Atlantis/ADAPT. They had recently opened a new office in Colorado   Springs. We often went to  to participate in actions or meetings, so I saw a lot of Wade, and was able to learn more about organizing and activism. In 1991, I moved to to work in the main office as a community organizer, working directly with Wade, who became my mentor. Though Wade passed away only two years later, I felt enriched and blessed by being able to work with him. The pearls of wisdom that he sent my way were countless!

Over time, I grew from the aforementioned mousy chick, to a fiery activist. I have become a ham, of sorts, in ADAPT, singing, chanting, and helping to keep up our troops’ spirits. I have also become a leader, sometimes helping with negotiations, and stuff, but mostly helping to keep people informed, safe, and pumped up during the actions. I now live in , and usually help to plan our local actions.

ADAPT has changed my life. I learned how to be an activist, and catalyst for change. I have learned (and am still learning) the political process, and policymaking. Through ADAPT, I have done some really cool and amazing things like help to plan a successful two-week vigil in to protest budget cuts that could have sent hundreds of people with disabilities back into institutions. I participated in the Free Our People March, where 210 people wheeled and walked from Philadelphia, PA, to Washington, DC, to bring awareness of, and to call for the passage of MiCASSA (Medicaid Community-based Attendant Services and Supports Act), now the Community Choice Act (CCA). I was one of 50 ADAPT members who met with President Bill Clinton in the East Room of the White House. I wouldn’t have been able to do these things had I not been with ADAPT.

That is why I am so excited about ADAPT’s 25 anniversary! We will be in from April 26-May 2, 2008. There will be some amazing stuff happening for this celebration:

April 27
National Fun*Run
ADAPT will hold its 2nd Fun Run/Roll, with the incomparable Marca Bristo as the Honorary National Runner/Roller.

 
April 30
When You Remember Me
Showing of the movie, “When You Remember Me”, a made-for-TV film starring Jeff Savage, Kevin Spacey, and Ellen Burstyn that chronicles Wade Blank's work freeing youth from a  nursing home...work that morphed into the creation of both Atlantis, and ADAPT, will be shown in the evening. For a synopsis of the movie

May 1
The entire day will be given over to the celebration! Here is just some of the amazing things that will be taking place:

StoryCorps— if you listen to NPR, then, you are familiar with StoryCorps, where people record their stories for the Library of Congress, and some of these are aired on NPR. StoryCorps will be at our hotel recording stories from ADAPT folks. I am so excited!

ADAPT Museum--There will be two huge rooms of multimedia ADAPT historical displays, including blow-ups of 50 of Tom Olin's incredible photos, every T-shirt from every ADAPT action over the past 25 years, artifacts, memorabilia, first person accounts of every action, videos, slides, music. The folks from  are bringing most of the items, news clippings, etc.

ADAPT Jeopardy—this is Jeopardy! ADAPT style!

Tales Around The Campfire—with Mark Johnson

The Show

The Barbeque
Several dignitaries have been invited. Representative Pat Shroeder, who came to the first  action back in 1975 will be there!

This is only a partial list of what is happening, so come join us for this magnificent celebration of 25 years of activism. I’ll see you there!

Figuring Out the Taxability of Retroactive SSDI Payments

Guest Column

By Paul Gada

Welcome to the last in a series of columns discussing timely tax issues for the 2007 filing season. The initial column looked at the new tax rebate and the second column looked at two important tax credits that may benefit those with disabilities. The third column covered whether or not filing a federal tax return is required.

Saving one of the most complicated topics for last, this column explores the tax treatment of lump-sum (retroactive) payments of Social Security disability income (SSDI) benefits. If there is one tax area that SSDI recipients are most likely to trip up on, this is it.

A lump-sum retroactive SSDI award represents a payment that includes benefits calculated for earlier years. You account for the retroactive award in the tax year you get the award. However, do not treat the entire retroactive award as income in the tax year received. If you do, you are making a mistake that will result in you paying unnecessary taxes.

If you received a lump-sum SSDI payment in 2007 that includes benefits for one or more earlier years, it will be included in box 3 of Form SSA-1099.  The form will also break down the benefits to show the year (or years) to which they apply. 

You would account for the entire lump-sum amount received in 2007 (including the portion for 2007 and portions for earlier years) on your 2007 tax return. Under the lump-sum election method allowed by the IRS, no adjustment is made to returns filed in previous years (so don’t file amended returns).

Looking back over the years covered by the retroactive payment, you refigure the taxable part of your benefits for an earlier year using that year’s income. Once you subtract any taxable benefits for the year that you reported before, the remainder will be the taxable part of the lump-sum payment. You would then add it to the taxable part of your benefits for 2007 (calculated without the lump-sum payments for previous years).

Chances are that if you had no taxable income in previous years, these calculations will be fairly easy. The tricky part usually occurs when looking back at years with additional income, perhaps from a spouse or from employment before going on permanent disability.

To figure out the taxable portion of a retroactive SSDI payment for previous years and examples of how this works, you can use the worksheets provided in IRS Publication 915. Doing these calculations by hand, however, can be extremely difficult.

Because of this, it is highly recommended that you invest in some tax prep software or have your taxes prepared by a tax professional. It is worth the price if you do.

At the same time, you should also be aware that this area of the tax law can be so complicated that professional tax preparers and software have been known to make a mistake. Before seeking to use these options, you should first become an informed consumer and taxpayer by reviewing IRS Publication 915 in detail.

Lump-sum Related Tax Deductions

When figuring out the taxability of a lump-sum SSDI payment, keep in mind that there are two important deductions you may be able to take.

First, you can generally deduct the representation expenses that you pay somebody to help you collect your SSDI retroactive award. The expenses for collecting the taxable part of your SSDI benefits are deductible as miscellaneous itemized deductions on line 23 of Schedule A (Form 1040).

Second, if you received disability payments through an employer’s or insurance company’s long-term disability policy and you had to repay the employer or insurance company for any retroactive SSDI disability payments, you can receive a deduction or credit for all or part of the repayments.

If the amount you repay is $3,000 or less, you would claim it as a miscellaneous itemized deduction on line 23 of Schedule A (Form 1040). If your repayments are more than $3,000, follow the methods described on page 15 of IRS Publication 915 and choose the option that results in the least taxes to you.

Fixing Errors with an Amended Return

If it turns out you incorrectly reported a lump-sum SSDI payment, you may want to consider filing an amended tax return.  To do this, file Form 1040X within three years after the date you filed the original tax return or within two years after the date you paid the tax, whichever is later.  However, the deadline for filing an amended return can be suspended for people who are unable to manage their financial affairs.  The instructions for Form 1040X on the IRS web site go into more detail. 

I hope you have found my guest columns for the AAPD blog helpful. Although there will be no further columns this year, I welcome your questions and will answer them as best I can.

Happy tax season!

~Paul Gada is a tax attorney and the personal financial planning director for Allsup, a national provider of Social Security, health care and financial services for those with disabilities.

Copyright, Allsup, Inc.

To File, or Not to File: That is the Question

Guest Column

By Paul Gada

To File, or Not to File: That is the Question

Welcome to another in a series of columns discussing timely tax issues. The initial column looked at the new tax rebate and the second column looked at two important tax credits that may benefit those with disabilities.

As they get closer to the April 15th filing deadline, last-minute tax filers share at least one common thought: Do I really have to file a tax return? The evasive, yet honest, answer to this question is that it depends.

According to the IRS, you must file a tax return if your total income is above a certain level for the year. This is true whether or not you have earned the income from a job or other forms of income, including from Social Security Disability Insurance (SSDI) benefits.

Depending on your filing status and age, most people will have to file a 2007 tax return based on the following income levels:



If your filing status is…          AND at the end of            THEN file a return if
                                             2007 you were*…             your gross income**
                                                                                     was at least…            

SINGLE                                      under 65                                    $8,750
                                                65 or older                                  $10,050

Married filing jointly***            under 65                                    $17,500
                                                65 or older                                 $18,550

Married filing separately          under 65                                    $19,600
                                                65 or older                                 $3,400

Head of household                   under 65                                    $11,250
                                                65 or older                                $12,550


Qualifying widow(er)              under 65                                    $14,100
with dependent child               65 or older                                $15,150


* If you were born on January 1, 1943, you are considered to be age 65 at the end of 2007.

**Gross income means all income you received in the form of money, goods, property and services that is not exempt from tax, including any income from outside the United States (even if you can exclude part or all of it).

*** If you did not live with your spouse at the end of 2007 (or on the date your spouse died) and your gross income was at least $3,400, you must file a return regardless of your age.


Special Considerations for Those Receiving SSDI Benefits

Taxability of SSDI monthly payments, however, receives special consideration.  SSDI payments are treated like regular Social Security payments reported to you on Form SSA-1099. So in general, up to 50 percent of your benefits may be taxable each year, plus all your other income (including tax-exempt interest).

Here is a relatively quick way to check if your benefits may be taxable. First, fill out the worksheet on page four of IRS Publication 915.

When you get through the worksheet, compare the amount on line E to your base amount for your filing status (see below). If the amount on line E equals or is less than the base amount for your filing status, none of your benefits are taxable this year. If the amount on line E is more than your base amount, some of your benefits may be taxable.

For the 2007 tax year, the base amounts are:

• $25,000 if you are single, head of household, or qualifying widow(er);
• $25,000 if you are married filing separately and lived apart from your spouse for all of 2007;
• $32,000 if you are married filing jointly; or
• $0 if you are married filing separately and lived with your spouse at any time during 2007.

One more thing you should know is that there are situations when more than 50 percent of your SSDI payments may be taxable. Up to 85 percent of your monthly benefits can be taxable in the following cases:

• If the total of one half of your benefits and all your other income for the tax year is over $34,000 if filing single or $44,000 if you are married filing jointly; or
• If you are married filing separately and lived with your spouse at any time during the tax year.

For more detailed information, please consult IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits, available on the IRS website. This also would be a good time to consult with a tax preparer or use a tax filing program.

Don’t Need to File a Return? Why You Still May Want to

Even if you don’t have to file a tax return because your disability has forced you to stop working or reduces the amount you make to below the income thresholds, you may still want to do so for several important reasons. Three important ones are:

1. Whether it’s a federal or state income tax return, you want to file if you or your spouse had any income taxes withheld by an employer during the year. Simply put, if you don’t file a return, you will not get a tax refund.

2. You want to file a tax return to take full advantage of any tax breaks or credits available to low and moderate income taxpayers. As discussed in the previous tax column on credits, there are even some credits (like the Earned Income Tax Credit) that are refundable. This means that if you qualify for the credit, your taxes could be reduced to the point that you get a refund instead of owing any taxes.   

3. Even if you haven’t had to file a federal tax return in previous years, filing a 2007 federal tax return is a must in order to get the one-time tax rebate that the federal government is issuing this year. More information on the 2008 tax rebate can be found by clicking here.   

I plan to contribute a guest column next week for the AAPD blog on tax issues impacting individuals with disabilities. I welcome your questions as possible topics to cover in the column. Please post your comments here.

Happy tax season!

~Paul Gada is a tax attorney and the personal financial planning director for Allsup, a national provider of Social Security, health care and financial services for those with disabilities.

Copyright, Allsup Inc.

How Tax Credits Benefit People with Disabilities

Guest Column

By Paul Gada

Available Tax Credits Can Help Individuals with Disabilities

Welcome to the second in a series of columns discussing timely tax issues. The initial column looked at the tax rebate and how to make sure you take the steps needed to get your rebate.  But, rebates aren’t the only way to save on taxes.

In fact, if you are looking for a real world example of the principle of “give and take,” look no further than our federal tax code. Our tax system both takes and returns our tax dollars (through various credits, deductions and exemptions) in a way that is seemingly designed only to confuse the average taxpayer.

The good news is that there are a number of tax credits that are available only to taxpayers with lower incomes or disabilities. The following—the Earned Income Tax Credit and the Saver’s Credit—are two in particular you should know about.

Earned Income Tax Credit (EITC). The EITC was the subject of a reader’s question submitted through this blog.

If you or your spouse earned any taxable income for the year, you may be eligible for the Earned Income Tax Credit (EITC). The most appealing feature of the EITC is that it is a refundable tax credit. This means that if your credit amount is higher than your tax bill, you can actually get the unused part of the credit back as part of a tax refund.

The EITC is part of a federal tax program designed to help low-income workers and families by offsetting the burden of Social Security taxes and providing an incentive to work. Even if you don’t earn enough to owe federal income taxes you may get a refund from the IRS if you qualify for the EITC. If you qualify, it could be worth up to $4,716 for the 2007 tax year.

Even though it sounds too good to be true, it isn’t. In 2007, more than 22.4 million taxpayers received over $43.7 billion in earned income credits by filing their 2006 federal income tax returns. Unfortunately, the IRS estimates that approximately one in four people who could have been eligible failed to claim the EITC.

According to the IRS, the main reason people fail to claim this important tax credit is because they simply don’t know about it. To help solve this problem, here is what you need to know about the EITC.

If you or your spouse were employed for at least part of 2007, you may be eligible for the EITC based on these general requirements:

2007 EITC Eligibility
Maximum Earnings
   
Single               Married Filing Jointly     Qualifying Children         
$12,590             $14,590                            None
$33,241             $35,241                            One
$37,783             $39,783                            Two or more                  

Additionally, to be eligible, your maximum investment income cannot exceed $2,900.   
 

The amount of the EITC itself depends on your income and family size. For 2007, the maximum credit amounts are as follows:

2007 Maximum EITC Amounts

Number of Qualifying Children                Maximum Credit
Two or more                                            $4,716
One                                                         $2,853
None                                                       $428

Based on tables provided by the IRS, the maximum credit amounts are phased in from the first dollar earned. The EITC phases out completely when the earning levels mentioned earlier are reached.

When figuring out your EITC, benefits you receive under an employer’s disability retirement plan (providing pensions to workers who lose their jobs because of disability) are considered earned income until you reach minimum retirement age. According to the IRS, minimum retirement age is considered the earliest age at which you could have received a pension if you were not disabled. The taxable disability payments you claim on line 7 of either Form 1040 or Form 1040A count toward qualifying for the EITC.

However, you should be aware that benefits such as Social Security Disability Insurance, SSI or military disability pensions are not considered earned income that qualify for the EITC. The same is true for payments you received from a disability insurance policy on which you paid the premiums. You or your spouse must have earned income to qualify for the EITC.

There are several ways to determine EITC eligibility and the actual amount of the credit. The hard way is to work through the worksheets and tables provided in the instructions to IRS Forms 1040, 1040A or 1040EZ. An easier way is to use the EITC Assistant tools provided by the IRS that walk you through the entire process. If you elect to do so on your tax return, the IRS can also figure out your EITC for you. If none of these choices work for you, seeking professional tax help is highly recommended because of complexities involved.

Saver’s Credit. For those struggling with the financial hardships caused by a permanent disability, putting away money for retirement may seem like a tough thing to do. However, the reality is that you will need money in later years as well (perhaps even more so than today).

The good news is that there is a way for the federal government to add to your private retirement nest egg through a special tax credit called the Saver’s Credit. This credit is available only to lower-income taxpayers.

Based on the most recent information available, taxpayers claimed more than $900 million in Saver’s Credits on nearly 5.3 million individual income tax returns. The average savings for those filing jointly was $216.

Provided you or your spouse have any earned income, the Saver’s Credit helps offset part of the first $2,000 workers voluntarily contribute to IRAs and to 401(k) plans and similar workplace retirement programs. This credit can be claimed by:

•    Married couples filing jointly with incomes up to $52,000 in 2007 or $53,000 in 2008;
•    Heads of household with incomes up to $39,000 in 2007 or $39,750 in 2008; and
•    Married individuals filing separately and singles with incomes up to $26,000 in 2007 or $26,500 in 2008.

The maximum Saver’s Credit is half of the first $2,000 saved in a retirement account. This means a tax savings up to $1,000 for a single taxpayer earning $15,500 in 2007 and up to $2,000 for married couples earning $31,000 or less. This savings is in addition to any other tax savings for contributing toward retirement.

It is important to note that the Saver’s Credit amount decreases when earnings are above $15,500 for single taxpayers and $31,000 for married couples. This credit is phased out completely above the income levels listed earlier (e.g., $52,000 for married couples in 2007).

To figure out and claim the Saver’s Credit, use IRS Form 8880, Credit for Qualified Retirement Savings Contributions.

Other tax breaks for low-income taxpayers. Depending on your particular situation, there may be many more tax breaks that can take the sting out of filing your taxes and even help your financial situation in the end. To take full advantage of these tax breaks, consider seeking out professional tax assistance or tax preparation software that can help walk you through filling out your tax return.

I plan to contribute a guest column each of the next few weeks for the AAPD blog on tax issues impacting individuals with disabilities. I welcome your questions as possible topics to cover in these columns. Please post your comments here.

Happy tax season!

~Paul Gada is a tax attorney and the personal financial planning director for Allsup, a national provider of Social Security, health care and financial services for those with disabilities.

Copyright, Allsup Inc., used with permission.

How the Tax Rebate Applies to People with Disabilities

Guest Column
By Paul Gada

This column is the first in a series of columns discussing timely tax issues.

With the April 15th tax filing deadline close at hand, people can use all the help they can get to survive another challenging tax season.

Although most dread dealing with another tax season, there is something good to look forward to this year.   As I’m sure you know, the federal government, via the IRS, is issuing one-time economic stimulus payments to more than 130 million households starting in May.

The amount of the stimulus payment is $300 for qualifying single individuals receiving just Social Security or veterans-disability benefits and $600 for married couples. However, the payment amount could be more for a couple where one individual is also working (up to a $1,200 rebate) or where a single person with a disability had earned other income (up to a $600 rebate). Also, anyone getting a rebate may be eligible to get an extra $300 for each of their children under 17.

To get an estimate of what your stimulus payment may be, use the IRS calculator offered on their site.

The stimulus payments are not taxable and will not affect your 2007 or 2008 tax returns in any way. The IRS also assures the public that the stimulus payments will not count toward or negatively impact any income-based government benefits, such as Social Security benefits, food stamps and other similar programs.

To be eligible to receive a stimulus payment, you must meet three simple requirements:

•    Have a valid Social Security number (SSN);
•    Have at least $3,000 in qualifying income; and
•    File a 2007 federal tax return.

The first requirement is fairly straightforward. Only those with a valid SSN are eligible for the one-time stimulus payment. Those with an Individual Taxpayer Identification Number (ITIN) instead of an SSN are not eligible. If married filing jointly, both must have valid SSNs, otherwise neither can receive the payment. 

The second requirement is a bit harder to meet. Fortunately, the definition of qualifying income is broad and includes earned income from a job, net self-employment income, Social Security benefits such as Social Security Disability Income (SSDI) and veterans-disability payments.

However, Supplemental Security Income (SSI) does not count as qualifying income. Dividends, interest and capital gains income also do not count towards qualifying income.

For most taxpayers, the last requirement is no more a burden than usual. If you normally file a federal tax return from year to year, you will not have to do anything else other than file your 2007 individual income tax return to receive a stimulus payment this year. Payments are calculated and sent automatically by the IRS. No extra forms or applications are necessary.

For many people, however, there is a catch to the third requirement. Specifically, individuals that only receive minimal SSDI benefits or otherwise have low incomes, and who may not generally owe taxes, will need to file a 2007 federal tax return in order to receive the one-time stimulus payment.

If you normally don’t have to file a federal tax return and need to for the stimulus payment, the IRS form for you is the 2007 Form 1040A.  The IRS provides a sample pre-filled Form 1040A on its site to illustrate what’s required of those that normally don’t need to file a return. We’ve also posted an informational Tax Resource Center, which links to this and other documents related to the rebate.

If it doesn’t look like you qualify for this year’s government bounty, take heart. If your circumstances change and you become eligible after you file your 2007 federal tax return, you can still file an amended return using IRS Form 1040X to get the stimulus payment. If you are not eligible this year but become eligible next year, the economic stimulus payment can be claimed next year on your 2008 tax return according to the IRS.

Hopefully, this explains the details so that you may receive the economic stimulus payment you qualify for.

Have Questions?

I plan to contribute a guest column each of the next few weeks for the AAPD blog on tax issues impacting individuals with disabilities. I welcome your questions as possible topics to cover in these future columns. You can post comments here, so others can see what has been asked.

Happy tax season!

~Paul Gada is a tax attorney and the Personal Financial Planning Director for Allsup, a national provider of Social Security, health care and financial services for those with disabilities.

Copyright, Allsup Inc., used with permission.

Neither Political Party Represents Us

Guest Column
By Rahnee Patrick

Somewhere on the Internet (I ♥ Google) is a picture of my face hanging over a large piece of red poster board, hand painted, with the word LIFE.  The photo is for sale, right now.  I imagine how the picture will be used: my round face protesting legal abortion.  I envision the photo placed on websites and other propaganda that strives to criminalize abortion and other reproductive health even further.  I do not want to limit access to reproductive health for women in the United States and around the world although the photo floating around the Internet could tell a different story.

Actually, I made the sign I held but the words I painted read: LIFE + DISABILITY = LIFE WORTH FEEDING.  If you’ve ever made a sign to hold at a protest, you know you only have so many square inches to send a message.  I was referring to Terri Schiavo, whose stomach tube that delivered nutrients to her disabled body was being removed.  I do not agree that her feeding tube should have been removed so I joined other disability rights activists to protest and celebrate all the tubes that the disability community uses to live our lives – tubes for breathing, for hearing, for feeding, for peeing.  However, there I stood, next to a man holding a sign with a photo of the fetus – a pro-life protester.  I quickly moved away from him but the collective effect was present for the media and passers-by: we wanted to not only keep Terri fed but that we also supported making abortion illegal in this country.  The overall effect made my stomach turn. 

I support women to be able to feely make choices about our own bodies, especially when it comes to our reproduction.  Women with disabilities cannot afford to ally ourselves with criminalizing abortion in our country and in our world.  Our country’s limited access to abortions and general reproductive health services has endangered so many women’s lives.  Three years after Roe V. Wade, Congress decided Medicaid dollars cannot be spent to cover the cost of an abortion.  The decision leaves those of us in poverty and on Medicaid to often forego abortion services, when we need them.  Mississippi has only one clinic in its entire 898 square miles to provide abortions and is not the only state to limit its women’s rights to reproductive health services.  We are grinding back to a time when women had to depend on a loose, underground network of people to access abortions, at the risk of the woman’s life and dignity.  Other countries in the world, such as Romania, where abortion is illegal, leave women powerless, without any control or self-determination in their own lives. 

Media coverage of Senate Bill 609, the Prenatally Diagnosed Condition Awareness Act, co-sponsored by Senators Brownback – R (KS) and Kennedy – D (MA) strikes a chord.  The bill aims to amend the Public Health Service Act to increase the provision of scientifically sound information and support services to patients receiving a positive test diagnosis for Down syndrome or other prenatally diagnosed conditions.  Too many times, disability or even its possibility, in a fetus has been cause for support of legal abortion.  Disability is a part of the natural diversity of our human and animal lives.  Its eradication diminishes the genetic diversity of our world and devalues the disability experience.  People’s worth cannot be measured by whether s/he has a disability, whether we can work, do step aerobics or appreciate a Woody Allen movie.

Please note the phrase, “support services.”  We disabled folks use a lot of support services, to feed, bathe, dress ourselves, to provide respite to our caregivers and families and to pay our bills.  Support services means having government-funded help to improve the quality of our lives with our disabilities.  Past and looming cuts to S-CHIP, educational acts, Medicare, Medicaid and Social Security threatens our lives as much as a mother and father who fear disability in their child’s life.

The disability community’s issues must bring the two political parties together, as Senators Brownback and Kennedy have done.  But neither camp solely represents us.  It’s important that we, women with disabilities, do not ally ourselves with either political party on the issue of reproductive health.  They don’t quite understand our position.  Yet.

Rahnee Patrick is one of AAPD's 2008 Paul G. Hearne / AAPD Leadership Award recipients.

It's Okay to Stare... Then Engage a Question!

Guest Column

By John Register
Associate Director, Outreach & Development, U.S. Paralympics
2007 Paul G. Hearne / AAPD Leadership Award Winner

When I was five or six-years-old and saw a person with a physical or cognitive disability, I would stop, stare, point my finger and might have said, “Look at them Mom and Dad!” as I tugged on her skirt or his coat tail.  It was a new discovery time for me!

My mother or father would usually tell me that it was impolite to stare.  They may have even offered an apology to the person who was the focus of my attention. Then, they would then promptly take me down another aisle, or usher me in some other direction so as not to cause anymore embarrassment to the person or to me.

How many times has this played out in the lives of persons with disabilities?  How many times have we had to endure the ignorance of others? 

Later on in my teens, I would see these same individuals through eyes of pity and wonder how they acquired their misfortune. Inevitably, I would avert my eyes or find myself looking for a path of escape and flee to safety so as not to make direct contact with them. I thought those windows of the soul would be able to see right down to my own shallowness. What was I afraid of?  Why did I feel sorry for them?

Amazingly, my perspective has since changed since my accident and subsequent physical disability.  It is ironic that five-year-old kids now staring at me as I walk the store aisles in my shorts that expose my artificial leg.  I can see them out of the corner of my eye tugging on their Moms’ skirts or Dads’ coats , pointing in the direction of their new discovery…me!  I over hear the whispers, “It's impolite to stare!”

It took a few months for me to overcome the stares of others.  Though I was self conscious about it, I did not do anything about it.  In fact I was very good at becoming oblivious and indifferent to it.  In my opinion it was their ignorance that was the real disability.  I chose not to give the uncomfortable situation life; I chose not to react, not to respond nor give it any attention.  Was some unwritten cycle of avoidance to a social issue was being allowed to continue?

During one of these occasions of perpetual avoidance, I began to think how I might change the outcome of this expected scenario.  After thinking about it, I boiled it down to this - our need for information and the answering of questions, "What happened to you?" and "Why are you different than I?"

My perspective changed the day I sat on a warm summer day in  an airport gate area. I was wearing shorts.  Not so much because it was hot but because I seem to get through the TSA security lines faster!

As I sat there two young kids came up to me looked at my leg, and asked me,  "Hey Mister, what happened to your leg?"

The question caught me a bit off guard. At the same moment I noticed a smiling woman walking toward me who was probably the mother of one of these two little inquisitive monsters.  I prepared myself for the apology she would offer.  But what she did next shocked me.  Her words were the platform and catalyst for a personal change in my perspective.

“Excuse me sir,” she began as she pulled her two children close to her. 

“My name is Jenny, and these are my two sons (Kevin and Chris), they are fascinated by your artificial leg.  Would you mind explaining to them how you lost your leg and how this leg helps you get around now?”

I was blown away!  What a simple thing to ask! She just flipped the script on me.  Now, with the other passengers in the area looking at me for a response, I knew the next words out of my mouth would have the impact of giving them a positive or a negative experience about this current situation and perhaps reinforce their perceptions about persons with disabilities.

I looked at the lady and her two kids and said, “Sure!”

I proceeded to speak about my athletic career which culminated in winning the silver medal at the 2000 Paralympic Games.  I ended on a positive note saying that no matter what happens to you in life, you can choose to make your life bitter or better because of it.

Jenny thanked me.  Her kids thanked me and said, “You’re cool!”  I heard a few chuckles by passengers who were eavesdropping on the conversation.   

I realized at that moment that I was just as much a cause for their ignorance and perception about my leg.  If I wanted people to treat me for who I am then I would have to accept all types of attitudinal perceptions.  From that moment I began to look for teachable moments and do my part to decrease attitudinal and social barriers for the disabled.  With and emphasis on the physical disabled population.

Those of us who have a limitation physical or otherwise do not have to shy away from the rest of the people who appear normal.  We have a voice and can effectively use it to foster a better world.

John F. Register Inspirational Catalyst Co-Owner Inspired Communications www.johnregister.com "Who Did You Inspire Today?"

*************************************

Read more about John and view a video about John.