Archive for the ‘Asset Building’ Category

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DHS Welfare 101 Campaign Attacks Myths About Welfare

Wednesday, July 14th, 2010

The Michigan Department of Human Services is currently touting a campaign to discredit common myths about welfare and its recipients.  The campaign aims to reduce widespread negative perceptions and show how valuable the welfare system is for Michigan residents, as well as the state’s economy.  In Michigan’s current economic climate an unprecedented number of families qualify for social services, but many who qualify may not apply because of the myths that tarnish the purpose of the welfare system.

The Welfare 101: Busting Myths About Welfare website is a great resource for human service agencies and other organizations that seek to help populations whose members often qualify for public services.  The website offers documents discussing various myths about welfare, including “Welfare recipients are a drain on the system,” “Welfare is full of fraud and no one’s doing anything about it,” and “Welfare recipients only live in poor, urban areas, not the suburbs or wealthier areas of the state.”  These resources can be directed to people who qualify for benefits but may be reluctant to apply or be used to inform the general public.

Please view the Welfare 101: Busting Myths About Welfare website for more information and to access campaign resources.

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Best Practices in Asset Building

Monday, June 14th, 2010

Bank on Kalamazoo meeting, February 2010.

Asset building policy and programs seek to address issues of poverty and financial insecurity through asset accumulation by working families at all income levels. Assets include savings accounts, homes, education, and small businesses. The ownership of assets is critical to financial stability because assets provide financial resources and earned income that can be used to weather financial crises. The Michigan Asset Building Policy Project (ABPP) coordinates the Michigan Asset Building Coalition (ABC) to advance asset building policy initiatives and support diverse asset building practices across the state.

While universal access to asset building opportunities is the main goal of asset building, low-income earners have significantly fewer opportunities for saving and investing than middle to high-income earners.  Therefore, asset building policy often targets the low income population.  Common asset building practices include Individual Development Accounts (IDAs), 529 college saving plans, and initiatives like Bank On that provide access to financial services.

CEDAM members are innovating in asset building initiatives.

Oakland Livingston Human Service Agency (OLHSA) coordinates the Michigan IDA Partnership (MIDAP), which offers matched savings accounts to help low-income workers build assets.

Inner City Christian Federation and Community Action Agency – Jackson also offer accounts through MIDAP to provide a 3-to-1 match for savings toward a home purchase and a 2-to-1 match for savings for education or small business startup.

Northern Initiatives supports rural entrepreneurs through microenterprise loans that can be used for various business costs, including start-up capital, business acquisition, equipment upgrades and facility expansion.

The Kalamazoo-based Poverty Reduction Initiative (PRI) is tackling issues of poverty through programs focused on education and access to economic opportunity. PRI is designing a Bank On program for Kalamazoo that will connect unbanked residents with good financial services targeting their specific needs.

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Blog Highlights from Spring 2010

Thursday, April 8th, 2010

The big picture from all the CEDAM blog posts this spring. Thanks for reading!

Resources

Blog Post Spotlight

The best of the best blog posts by CEDAM staff and guest bloggers.

Asset Building Policy Project

In addition to tax preparation resources and VITA sites (see above sections), ABPP promotes the Earned Income Tax Credit. ABPP is also involved in getting unbanked individuals to open savings and checkings accounts through the Bank On movement. To see all ABPP related blogs, click the “Asset Building” link under “Categories” on the main CEDAM blog page.

Foreclosure

Big news this spring about foreclosure includes the announcement of Troubled Asset Relief Program funds for Michigan and a proposed rule change that would help stop foreclosure scams. To see all foreclosure related blogs, click the “Foreclosure” link under “Categories” on the main CEDAM blog page.

CEDAM Members and Events

From weatherization to affordable housing, gardening to tax preparation, our members are doing great things for their communities. CEDAM’s monthly member news roundup features positive member news from around Michigan.

In addition, CEDAM staff have been interviewing CEDAM members for a short video mission statement. There is no sneak peak (we don’t want to give away the ending), but we will say that the video debuts on the big screen at the CEDAM Annual Event. Look forward to it at the end of April!

To Access Tax Benefits for Free, VITA Is Vital

Posted in All Things CEDAM, Asset Building, Best Practices, Events, Foreclosure, Policy | 1 Comment »

Resources for Tax Preparation

Monday, March 22nd, 2010

For most tax filers, filing a return is a mere click away!  That’s because individuals and families can file simple tax returns online at I-CAN E-File (www.icanefile.org), a website that allows you to fill out and submit a tax return all via the internet.  As long as you have access to a computer and a secure internet connection, you can use I-CAN E-File to do your taxes by yourself without the cost of using a paid preparer.

Free tax preparation is also available to low-income earners at Volunteer Income Tax Assistance (VITA) sites, where IRS-certified tax preparers help filers to complete their returns.  To see if you qualify for assistance at a VITA site and to view a complete listing of VITA sites in Michigan, visit http://www.michiganeic.org/freetaxprep.

The Michigan Credit Union League provides a good resource to tax filers looking to file returns on their own with its Just File It! We’ll Help. Free State and Federal Tax Preparation Provided by Credit Unions, a web-based program that allows families and individuals to file for state and federal tax credits that often go overlooked.  Access the program at http://www.justfileithere.org/index.php.

Through resources like I-CAN E-File and VITA sites, most tax filers can save by not having to go to a paid preparer.

To get tax refunds faster, filers should sign up for direct deposit of their refunds.  The IRS will deposit tax refunds into a filer’s bank account and filers can divide their funds into multiple checking or savings accounts.  Filers can also purchase U.S. Savings Bonds with all or a portion of their refund.  The fast turn-around of IRS refunds (especially through direct deposit) makes the use of Refund Anticipation Loans (RALs) largely unnecessary.  (The turn-around for direct deposit refunds is 8-12 days).  Waiting a short period for a refund instead of using a RAL saves filers because of the exorbitant fees and interest rates associated with RALs.   To find out more about direct deposit for tax refunds, visit http://www.irs.gov/newsroom/article/0,,id=105957,00.html.

Tax season can be cheaper and easier for people filing simple returns through the useful resources available to help people file for free.  Please contact Megan Kursik at the Michigan Asset Building Policy Project at kursik@cedam.info if you have questions about how to make use of these tax preparation resources.

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Earned Income Tax Credit Reminder

Friday, March 19th, 2010

A brief reminder about the federal Earned Income Tax Credit (EITC). To see who qualifies to claim the EITC on tax returns, visit the Federal EITC Homepage.

The EITC provides great economic benefit to low-income workers and local economies across the state. For individuals and families, the EITC provides financial opportunity in this disastrous economic climate.  EITC refunds can make the difference for staving off foreclosure or providing the basics for a decent life, like paying utilities and buying food.  Every year, federal EITC refunds bring in over $1 billion to Michigan.  Much of this is spent directly in local economies; for every $1 in EITC refund received, $1.67 is spent back in the recipient’s local economy.EITC logo for Michigan

For more information about the EITC please reference:

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To Access Tax Benefits for Free, VITA Is Vital

Thursday, March 11th, 2010

Katie Johnson with tax materials[This post is written by Katie Johnson, CEDAM Policy Associate and VITA Volunteer.]

There are many tax credits and other benefits available to low- and moderate-income Michigan residents, but they can only be claimed by filing an income tax return. For those of us who are not accountants, this can be complicated or even overwhelming. At Volunteer Income Tax Assistance (VITA) sites, trained and certified volunteers use IRS-issued software to prepare the returns, and each return undergoes a quality review before being submitted. Taxpayers can rest assured that their returns are complete and accurate, and the service is free.

Every Monday after work, I head over to the former elementary school now occupied by NorthWest Initiative, a CEDAM member. For the next three hours, I work with individuals and families who had under $50,000 in income for 2009. We review their situations, I enter their information into the tax preparation software, and by the time they leave we have completed their federal, state, and local income tax returns. The federal and state returns are filed electronically, and we put their signed local returns in an addressed envelope ready to be mailed.

The tax benefits my clients receive vary by income and life situation. A few people own their home and can deduct their mortgage interest and real estate taxes, leading to a larger return. Working lower-income families are eligible for the federal and state Earned Income Tax Credit, which can put thousands of dollars back in their pockets. Students may receive an American Opportunity credit based on the tuition they’ve paid. Those who paid taxes on their unemployment benefits can get back the taxes on the first $2400 (federal) and $600 (state). Almost everyone receives  the new Making Work Pay credit, which is up to $400. Low-income homeowners and renters who paid for heating can receive the Michigan Home Heating Credit.

If you hate filling out forms, this probably isn’t your ideal volunteer opportunity. However, if you are careful, don’t mind data entry, and like to meet people, VITA could be perfect for you, and volunteers are desperately needed. It’s a great feeling to tell someone that they will soon be receiving hundreds or thousands of dollars to help pay off debts, pay bills, or save for future goals.

Resources on VITA and Tax Benefits

  • Call 2-1-1 in most areas of Michigan to schedule an appointment.
  • For a great resource on available benefits, download Money Back in Michigan, an up-to-date, comprehensive brochure published by the Michigan League for Human Services.
  • File on your own taxes for free at www.icanefile.com
  • Learn more about VITA sites and find one near you.

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Bank on Michigan

Friday, February 19th, 2010

Bank On Michigan is part of a nationwide Bank On movement aiming to connect unbanked individuals and families with high-quality financial products through a relationship with a formal financial institution like a bank or credit union. The Bank On Michigan campaign launched in late 2009 and is currently designing and implementing programs in the cities of Detroit, Lansing, and Kalamazoo.

The Bank On concept argues that local governments can leverage their resources to engage with local financial institutions to offer products and services to the unbanked, many of whom would traditionally be excluded from formal products due to poor credit history, a ChexSystems record,  and other barriers to a banking relationship.  The first Bank On program was designed by the city of San Francisco and began in 2006.  By 2009, Bank On San Francisco helped 18,000 city residents open bank accounts.  The average account balance of these accounts was $976 and the program has achieved an estimated total savings of $19,802,400.

The Bank On programs in Michigan are currently in early phases of implementation, but the programs have the potential to help many unbanked Michigan residents open a savings and/or checking account and make important steps toward building savings and financial security.

For more information on Bank On, please visit the Join Bank On Website.

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Asset Building in President Obama’s Budget Request

Friday, February 5th, 2010

[This is the first post in a new blog series on the FY2011 State and Federal budgets.]

President Obama’s budget request for FY2011, released on February 1st, included specific proposals geared toward asset-building, primarily aiming to expand economic opportunity to low and moderate-income Americans.  The budget request expands the Saver’s Credit, which provides a 50% match on the first $1,000 saved in a retirement account by families earning less than $65,000 through direct deposit into the account.  President Obama also proposed requiring employers who do not offer a retirement plan to enroll their employees in a direct deposit IRA, extending the Make Work Pay tax credit for another year, and expanding financial aid for students through strengthened income-based repayment plans for student loans and an American Graduation Initiative to support community colleges and graduate five million students by 2020.

Additionally, the budget proposes to expand the Earned Income Tax Credit, reform asset limits in Federal means-tested programs, and take steps to reverse the system of upside-down wealth subsidies by revising mortgage interest deduction, charitable donations, and other itemized deductions.

For more information, reference President Obama’s budget request for FY2011.

See also, CFED’s Asset Building Policy Priorities for the 111th Congress.

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Earned Income Tax Credit Awareness Day 2010

Friday, January 29th, 2010

The Earned Income Tax Credit (EITC) provides great economic benefit to low-income workers and local economies across the state. For individuals and families, the EITC provides financial opportunity in this disastrous economic climate.  EITC refunds can make the difference for staving off foreclosure or providing the basics for a decent life, like paying utilities and buying food.  Every year, federal EITC refunds bring in over $1 billion to Michigan.  Much of this is spent directly in local economies; for every $1 in EITC refund received, $1.67 is spent back in the recipient’s local economy.EITC logo for Michigan

Volunteers and organizations across the state have helped connect qualified Michigan workers with the EITC through efforts in financial education and asset building, free tax preparation, and outreach about tax laws and benefits.  However, there are still more taxpayers to be reached. To further outreach efforts, the IRS is holding an EITC Awareness Day today, Friday, January 29, 2010.  The event represents an outstanding opportunity to reach out and involve the entire community, and the State, in celebrating and publicizing what has been called the working person’s best work incentive and antipoverty program.  Please visit the EITC Awareness Day Webpage to learn more.

For more information about the EITC please reference:

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Displaced Workers Guidebook

Wednesday, January 27th, 2010

Last week, Congressman Dingell released the Second Edition of his Displaced Workers Guidebook, which is freely available on his website at http://www.house.gov/dingell/pdf/displacedworkerguidebook.pdf. The success and demand for the original Guidebook, along with new assistance programs initiated by both the government and local organizations, led the Congressman to compile this updated version.

The Second Edition now includes over sixteen additional pages of resources and government aid programs identified specifically for the constituents of the 15th Congressional District and the people of Southeast Michigan. It also features a comprehensive table of contents and a full index – sorted by organization and by type of aid – to make browsing for the kind of help most relevant to each person that much easier.

Please feel free to post the Guidebook online or distribute it to the communities and populations you serve. The last edition of this book was viewed nearly half a million times, and it is Congressman Dingell’s goal that with your help this updated version will be able to reach as many families and individuals who may yet benefit from some new directions in seeking further aid as possible. Printed copies of the Guidebook are available for free at any of the Congressman’s district offices in Dearborn, Monroe, and Ypsilanti.

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