JFA Exclusive: Tax Tips

Our friends at Allsup, Inc. have offered to guest blog on the Tax Preparation and financial news for the disability community for the month of March. We hope these columns will be helpful for you and your families.  Look for more in the weeks to come.

 Guest Blog for AAPD

How the $787 Billion Economic Stimulus Package Affects People with Disabilities

By Paul Gada
March 3, 2009

In these difficult economic times, you may be looking for help. How will the $787 billion economic stimulus package enacted Feb. 17, 2009, affect you? This column, the first in a series of posts discussing timely tax and financial issues, will tell you how. The American Recovery and Reinvestment Act of 2009 (the Act) offers individuals assistance in many forms including a one-time $250 payment, reduced taxes on your take-home pay, and COBRA at a reduced price. The Act includes many credits and deductions; so, there is something for nearly everyone. The following are a few of the important benefits you should know about.
 
Help for those on fixed incomes…
You are eligible for a one-time $250 payment in 2009 if you receive Social Security Disability Income (SSDI), Supplemental Security Income (SSI) or disabled veterans benefits. To qualify, you must have been entitled to receive Social Security benefits Nov. 1, 2008, through Jan. 31, 2009. Payments are expected to go out by late May. If you also receive the Making Work Pay credit (see below), then the $250 will be deducted from the MWP amount you could receive.

Tax credit help for workers…
In 2009 and 2010, you could receive up to $400 individually or $800 per couple filing jointly based on your earnings from a job or self-employment. The Making Work Pay (MWP) tax credit is a refundable credit of 6.2 percent of earned income. If you qualify, your paycheck will increase slightly when the credit against income tax is applied. Lower-income workers who do not owe taxes may be eligible for the full refundable credit. The credit is retroactive to the beginning of 2009 and expires at the end of 2010. Eligibility for the MWP credit begins phasing out for individuals earning more than $75,000 and couples filing jointly earning more than $150,000.

Help for those who have lost their jobs…
If you are paying for COBRA health insurance, you now may be able to reduce your costs. The legislation reduces monthly premiums to only 35 percent of the cost for up to nine months. To be eligible, you must have been involuntarily terminated between Sept. 1, 2008, and Dec. 31, 2009. To qualify, your income must not exceed $125,000 for individuals or $250,000 for couples filing jointly. Eligible workers who initially declined COBRA may be able to sign up at the reduced premium cost. Contact your former employer for details.

To see helpful charts with more detail, visit Allsup’s report on the economic stimulus package.

In addition to the above provisions, you may benefit from the following:

•    Help for homebuyers and car buyers
•    Tax relief for families with children
•    Energy and nutrition assistance for families

Click here to read Allsup’s full report on

“The American Recovery and Reinvestment Act of 2009.”

Throughout the tax season, I’ll provide the latest information on tax issues affecting people with disabilities. If there is something you would like for me to cover, please post your comments here.

Happy tax season!

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

Copyright 2009, Allsup Inc., used with permission

Comments

[al fullbright]

Haven't seen anything yet that will help the average disabled Person-if there is an average. The average disabled guy or gal is probably having cash and debt problems; needs better communications and computer modernization; could have some serious challenges with transportation and mobility; and in addittion, they have on-going medical issues.

[Bonnie Welbaum]

I was wondering if there is anything available (credit or stimulus) available that schools and 4 year universities can apply for, to assist in becoming more physically accessible, build ramps, purchase a bus with lift, etc? Please replay to my email. Thanks

[Paul Gada]

Bonnie,

There are no specific provisions I'm aware of, but some of the infrastructure money may filter down to the university. It depends on how it is split up for your area.

[Micahael R.Del Plato]

Hello,
I'm a lay off teamster,local 375 Buffalo
NY.We need your help PRONTO!You see still
laid off but on call on a daily basis.And with ZERO HOURS thing we're screwed!I'm
speaking on behave of all the laid off teamsters who are laid off and sit by the
phone.Just cause i work called in and worked 4 days in the month of Mar.and Apr.
I'm better off not answering my phone cause
I'll loose money.Please help us out. Would
like to hear from you.