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Financial Education, Asset Development, and Tax Incentives
ODEP promotes Financial Education, Asset Development, and Tax Incentives' strategies to ensure the economic self-sufficiency of workers with disabilities, whose employment is their primacy vehicle for avoiding the poverty-level income associated with most disability benefit programs.
Resources:
ODEP's Initiatives -
U.S. Department of Labor -
Federal -
Other
ODEP's Initiatives:
Building a Roadmap out of Poverty for Americans with Disabilities: A Report on the Relationship of the Workforce Development System and Local Asset Building Coalitions
This white paper report was released in May 2009 by DOL's Employment and Training Administration and the Office of Disability Employment Policy. An example of ODEP's research into best practices in asset development, the report focuses on three cities: Detroit, Jacksonville, and Milwaukee and the tie-in between the workforce development system and advancing self-sufficiency for individuals with disabilities. Read the full report [MS Word Version] [PDF Version].
This document was developed by the National Center on Workforce and Disability/Adult. The center was based at the Institute for Community Inclusion at the University of Massachusetts Boston and funded through the U.S. Department of Labor’s Office of Disability Employment Policy (ODEP) grant number E-9-4-1-0071. The opinions expressed herein do not necessarily reflect the position or policy of the U.S. Department of Labor, nor does mention of tradenames, commercial products, or organizations imply endorsement by the U.S. Department of Labor.
Federal Interagency Workgroup on Financial Education and Asset Development for People with Disabilities
ODEP chairs the Federal Interagency Working Group on Asset Development and Financial Education for People with Disabilities (ADFE). This ADFE working group enables Federal agency stakeholders in asset development and financial education initiatives to network with each agency's efforts and to facilitate the coordination and collaboration of Federal government research, policy, and programming in the areas of tax and financial incentives and asset development. The working group addresses the challenges and opportunities encountered by individuals with disabilities in building assets and accessing financial services. ADFE's strategic plan is to disseminate information, facilitate communication among federal agencies, and develop interagency policy, practices, and agreements that promote asset development and financial education initiatives impacting individuals with disabilities and their families.
If you are a Federal agency interested in participating in this Workgroup, please contact Susan Picerno.
Work Opportunity Tax Credit Article in the SSA/IRS Reporter
In March 2008, ODEP published an article on the Work Opportunity Tax Credit (WOTC) in the SSA/IRS Reporter. Read the article which was published on page 4 of the Spring '08 edition of the SSA/IRS Reporter.
Other U.S. Department of Labor Resources
Retirement and Decumulation Resources
Decumulation is the process by which people use their accumulated assets to finance their retirement. ODEP partners with its sister agency, the Employment and Benefits Standards Administration (EBSA) to promote smart retirement planning to ensure the continuing economic self-sufficiency of workers with disabilities into their retirement.
The Women's Bureau's WI$EUp
Wi$eUp is a Women's Bureau financial education project targeted to Generation X and Y women. The centerpiece of the program is an eight-module curriculum offered online, as well as in a classroom setting, in educational institutions and other organizations in all ten Women’s Bureau regions.
Additional Federal Resources
The U.S. Department of Health and Human Services
Independence/Individual Development Accounts (IDAs)
The U.S. Department of Health and Human Services' Assets for Independence (AFI) enables community-based nonprofits and government agencies to implement and demonstrate an assets-based approach for giving low-income families a hand up out of poverty. AFI projects help participants save earned income in special-purpose, matched savings accounts called Individual Development Accounts (IDAs). Every dollar in savings deposited into an IDA by participants is matched (from $1 to $8 combined Federal and nonfederal funds) by the AFI project, promoting savings and enabling participants to acquire a lasting asset. AFI project families use their IDA savings, including the matching funds, to achieve any of three objectives: acquiring a first home; capitalizing or investing in a small business; or enrolling in post-secondary education or training.
U.S. Department of the Treasury
Earned Income Tax Credit (EITC)
The EITC is a refundable Federal income tax credit for low- to moderate-income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of Social Security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit. To qualify, taxpayers must meet certain requirements and file a tax return, even if they did not earn enough money to be obligated to file a tax return. The EITC has no effect on certain welfare benefits. In most cases, EITC payments will not be used to determine eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing, or most Temporary Assistance for Needy Families (TANF) payments.
More information is available on the IRS EITC site.
FDIC and Money Start
The Federal Deposit Insurance Corporation (FDIC) initiated a national financial education campaign in 2001 by launching Money Smart, a comprehensive financial education curriculum designed to help individuals outside the financial mainstream develop financial skills and positive banking relationships.
Tax Assistance for People with Disabilities
The IRS offers community partnership assistance to organizations who work with or serve people with disabilities who have low-to-moderate incomes. The IRS assists thousands of people with disabilities with free tax preparation and other services every year.
VITA (Volunteer Income Tax Assistance)
The IRS' VITA Program offers free tax help to low- to moderate-income (generally, $42,000 and below) people who cannot prepare their own tax returns. Certified volunteers sponsored by various organizations receive training to help prepare basic tax returns in communities across the country. VITA sites are generally located at community and neighborhood centers, libraries, schools, shopping malls, and other convenient locations. Most locations also offer free electronic filing. To locate the nearest VITA site, call 1-800-829-1040.
Social Security Administration Work Incentives
Special rules make it possible for people with disabilities receiving Social Security Disabilitiy Income (SSDI) or Supplemental Security Income (SSI) to work and still receive monthly payments and Medicare or Medicaid. The Social Security Administration (SSA) calls these rules "work incentives." More information on SSA's work incentives.
PASS (Plan for Achieving Self Support)
PASS is a Social Security Income (SSI) provision to help individuals with disabilities return to work. PASS helps someone return to work by basing SSI eligibility and payment amount on income and resources (thingsof value that individual owns). PASS allows an individual with a disability to set aside money and/or things he or she owns to pay for items or services needed to achieve a specific work goal. More information on PASS.
PESS (Property Essential to Self Support)
The Social Security Administration (SSA) does not count some resources that are essential to a person's means of self-support when SSA decides someone's initial and continuing eligibility for Supplemental Security Income (SSI). SSA does not count property that a person uses in a trade or business (e.g., inventory) or use for work as an employee (e.g., tools or equipment). Other use of the items does not matter. More information on PESS from SSA.
IRWE (Impairment-Related Work Experience)
IRWE refers to the Social Security Administration's (SSA) deduction for the cost of certain impairment-related items and services that a person needs to work from his or her gross earnings when SSA decides if the person's "countable earnings" demonstrate performance of Substantial Gainful Activity (SGA). It does not matter if the individual also uses these items and services for non-work activities. See more information on SSA's IRWE which includes a chart of examples of Dedictible and Nondeductible IRWEs.
Blind Work Expenses
Blind Work Expenses are special rules that help individuals with blindness return to work or work for the first time. Congress included language in the law specifically to make it easier for individuals who are blind to go to work. Some of these rules apply only to individuals who are blind.
Other
Access to Assets
The World Institute on Disability Access to Assets project opens doors in the disability community by promoting asset building and financial literacy among persons with disabilities.
The Real Economic Impact Tour
The Real Economic Impact Tour (REI Tour) is a national, public/private initiative assisting low-income persons with disabilities with asset building strategies, free tax preparation, and filing assistance. In the 2008 filing season, REI Tour partners prepared more than 90,000 tax returns in 62 cities. More than $81 million in refunds were received by persons with disabilities.
