Workers with Disabilities and Families Raising Children with Disabilities

Lower-wage workers with disabilities and families that are raising children with disabilities face profound challenges. Finding transportation to and from the job may be costly and difficult to arrange. Out-of-pocket health care expenses may be higher than for other families. Securing child or adult day care for a family member with special needs may pose a financial burden. For these reasons, the income boost that the EIC and the CTC provide can be vital. Outreach efforts can inform families that special rules may help them qualify if they work and have a severe disability or are raising a child with a severe disability. Such efforts also can allay fears that claiming the credits will jeopardize the public benefits that people with disabilities depend on.

The 2009 IRS Benchmark Study found that 54 percent of taxpayers with disabilities earn less than $20,000. Only 36 percent of taxpayers with disabilities are aware of free tax preparation services, and just six percent reported using them. Many families and individuals may not know about the tax credits.

  • Enlist groups that advocate for people with disabilities. The Consortium for Citizens with Disabilities (CCD) is a coalition of approximately 100 national disability organizations. CCD members include organizations such as Easter Seals, Family Voices, the Arc of the United States, United Cerebral Palsy, the National Alliance for the Mentally Ill and others that have members throughout the country. To contact CCD members, visit www.c-c-d.org. You also may find potential partners by contacting the National Council on Independent Living. For more information, visit www.ncil.org.
  • Encourage “Disability Program Navigators” (DPNs) to incorporate tax credit outreach into their routine discussions with people seeking employment. The Disability Navigator Initiative is a joint project of the U.S. Department of Labor (DOL) and the Social Security Administration, which aims to help people with disabilities better understand work support programs and other services available through DOL One-Stop Career Centers. Provide DPNs and One-Stops with tax credit outreach materials. For more information, visit www.doleta.gov/disability/new_dpn_grants.cfm. To locate DOL One-Stop Career Centers in your state, visit  www.doleta.gov/usworkforce/onestop/onestopmap.cfm.
  • Reach out to your state’s Work Incentive Planning and Assistance (WIPA) Project. The Social Security Administration (SSA) funds community-based organizations in every state to help SSA beneficiaries with disabilities make informed choices about work. Ensure that WIPA Community Work Incentive Coordinators have the information they need to alert people to the tax credits and how to claim them. To find a WIPA Project in your area, as well as Employment Networks providing counseling and job placement and Vocational Rehabilitation Agencies, visit: www.choosework.net/resource/jsp/searchByState.jsp.
  • Encourage state agencies that provide services to people with disabilities (such as agencies for vocational rehabilitation, supported employment, supported living, mental health, mental retardation or developmental disabilities) to share information about the EIC and the CTC with program participants and their families.
  • Take steps to ensure that free tax assistance sites are accessible to people with disabilities. Until existing sites can be modified, a mobile tax assistance site or home visiting program may be good alternatives.
Tax Credit Outreach IN ACTION

United Way Suncoast (UWS) in Tampa, Florida, partners with the National Disability Institute to provide Virtual VITA services for taxpayers with disabilities. In 2013, UWS worked with seven intake sites in Tampa Bay, Tallahassee, Orlando, and Sarasota to file tax returns remotely.

Volunteer tax preparers at the main UWS office prepared tax returns four days a week, using laptops and the web service Go to Meeting to conduct virtual meetings with clients at the intake sites. Once clients completed the intake and interview forms, intake site staff scanned and uploaded all necessary documents and submitted them to UWS tax preparers using the file-sharing program You Send It. During the appointment, the tax preparer and client communicated through web cameras; the client could see the preparer complete the tax return using TaxWise Online. UWS sent completed returns to the intake site using You Send It, and the intake specialist printed the return for the client to sign. Tax preparers could watch the client sign the return through a web camera and would then transmit the return online; the client did not need to send back a copy of the signed return.

In 2013, UWS completed 130 Virtual VITA returns, plus 14,972 returns through the Prosperity Campaign of Hillsborough County and the Pinellas Prosperity Partnership.

Contact: Ellen Stoffer, UWS, (813) 274-0939, estoffer@uwsuncoast.org

Glad You Asked That!

Q: Can a person who receives disability benefits get the EIC and the CTC?

A: To be eligible for the EIC, individuals must have earned income. Most disability-related benefits are not considered earned income, but a person who received long-term, employer-paid disability benefits and is under the minimum retirement age can qualify for the EIC, even if he or she did not work during the tax year. Such disability benefits are considered earned income. Social Security Disability Insurance, SSI and military disability pensions are not counted as earned income.

Q: Can children with disabilities be claimed for the tax credits?

A: A person of any age with total and permanent disabilities may be claimed as a “qualifying child” for the EIC. A child claimed for the CTC, including a child with disabilities, must be under age 17 at the end of the year.

Resource:

The National Disability Institute’s Real Economic Impact Network operates in more than 100 cities and focuses on developing the economic advancement of people with disabilities, including connecting them to tax credits and free tax filing assistance.  For more information visit: www.realeconomicimpact.org.