1. Asset Development Strategies Asset Development Webinar Series – Part II February, 2010 1

2. Objectives Review the meaning and importance of Asset Development Learn about different strategies persons with disabilities can use to save and build assets – Earned Income Tax Credit (EITC) and ability for split refunds – Volunteer Income Tax Assistance (VITA) sites – Real Economic Impact (REI) Tour – Individual Development Accounts (IDAs) Home Ownership Micro Enterprise Continuing Education Learn about the importance of connecting persons with disabilities to the Work Incentives Planning and Assistance Project (WIPA) when considering asset building. The DPNs Role – how the DPN can support Asset Building Strategies for Individuals with Disabilities – Using Asset Development 30-Second Trainings 2

3. Quick Review – Asset Development, What is it and Why is it important? Asset Development is a series of strategies that has the potential to: – help people with disabilities improve their economic status, – expand opportunities for community participation, and – positively impact the quality of life experience. Examples of Assets: – Money you have in the bank – Cash on hand – Securities (shares) (retirement accounts, other investments) – Property you own – Owner equity in a home or business – Education level and work experience 3

4. Asset Building Strategies  The Earned Income Tax Credit (EITC)  Volunteer Income Tax Assistance (VITA) Locations  The Real Economic Impact (REI) Tour 4

5. Strategies for Saving and Building Assets Earned Income Tax Credit (EITC) http://www.irs.gov/individuals/article/0,,id=96406,00.html 5

6. Strategies for Saving and Building Assets: Earned Income Tax Credit (EITC) A 2007 IRS Benchmark Study found that 51% of taxpayers with disabilities earn less than $20,000 and that 1.3 million working persons with disabilities are not filing and missing out on available credits. The EITC is the largest federal support program for low income individuals and families – helps over 15 million low-income wage earners each year. – a refundable tax credit – taxes must be filed to receive this refund, even if there is no tax liability. – first time filers may claim the credit for a three-year period. 6

7. The Earned Income Tax Credit (EITC): Basic Facts To claim the EITC, a person must: – have earned income. – be at least 25 and under 65. – have earned no more than $13,440 in the 2009 calendar year if you are single. – have earned no more than $18,440 if married without children. If single or married and a household with one or more children, the income limit is substantially higher ($48,279 for 3 or more children; $45,295 for 2, etc.) 7

8. The Five Myths of EITC You have to be married or have children to be eligible. False You have to owe taxes to be eligible. False You do not have to file to get your tax refund. False The EITC refund will impact other public benefits. False You cannot be self-employed and receive the EITC. FALSE 8

9. Time for some 30-Second Asset Development Trainings… “What is the Earned Income Tax Credit?” “You have to file your federal income to receive the Earned Income Tax Credit (True or False)?” 9

10. Reminder about 30-Second Training series on Asset Development Both the basic & advanced trainings are TARGETED TO INDIVIDUALS The advanced trainings contain useful information for your STAFF & PARTNERS The idea is to share these trainings with your staff & partners to enlist their help in getting this information out to individuals / consumers / customers via any available listservs or through showcasing at workshops / meetings / events. 10

11. Strategies for Saving and Building Assets: Earned Income Tax Credit (EITC) The money received as a result of the EITC can be used to build assets…By saving the money, or part of the money, one can begin to build assets. – For example, the money could be used to establish a relationship with a financial institution (e.g. Opening a Savings or Checking Account). Persons now have the ability to split the refund they receive in up to three different accounts making saving the money easier than ever. For example: – Checking, – Savings, and/or – Money Market Account. 11

12. Time for another 30-Second Training on Asset Development “How can I use my tax refund to start building assets?” 12

13. Strategies for Saving and Building Assets Volunteer Income Tax Assistance (VITA) http://www.irs.gov/individuals/article/0,,id=107626,00.html 13

14. Strategies for Saving and Building Assets: VITA Locations The IRS is responsible for outreach to eligible individuals and families to help with tax preparation assistance. The IRS is working with diverse community partners to establish Volunteer Income Tax Assistance (VITA) Sites to help prepare tax returns and help people claim the EITC. 14

15. Tax Preparation Assistance The VITA Program offers free tax help to low- to moderate-income (generally, $49,000 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. 15

16. Do we have a 30-Second Training on that?.... YES WE DO: “What is the Volunteer Income Tax Assistance Program?” 16

17. Strategies for Saving and Building Assets Real Economic Impact (REI) Tour http://realeconomicimpact.org/ 17

18. Strategies for Saving and Building Assets: The Real Economic Impact Tour (REI Tour) In cooperation with the National Disability Institute (NDI), the Real Economic Impact Tour (REI Tour) was established to deliver free tax preparation and filing assistance, along with other asset building strategies to low-income people with disabilities and their families. REI Tour Objectives: – Increase awareness, understanding and use of beneficial tax provisions and the availability of free tax preparation through local and national media outreach and education strategies. – Develop, expand and strengthen the capacity of disability workgroups within free tax preparation coalitions at a community level to serve more individuals with disabilities and their families. – Expand savings and asset development opportunities including financial education through planned special events, training and outreach activities 18

19. REI Tour, cont. In the 2009 tax filing season REI Tour partners prepared over 181,152 returns in 84 different cities accounting for over $176 million in refunds that people with disabilities received. In 2010, 100 cities will participate in the REI Tour REI Tour representing all 50 states plus the District of Columbia: http://www.realeconomicimpact.org/map/ http://www.realeconomicimpact.org/map/ 19

20. Hmmnn… is it time for another 30- Second Training??? “What is the Real Economic Impact Tour (REI Tour) and how can I get involved?” 20

21. Asset Building Strategies Individual Development Accounts (IDA) http://cfed.org/programs/idas/ 21

22. Strategies for Saving and Building Assets: Individual Development Accounts (IDAs) Individual Development Accounts or IDAs are matched savings accounts designed to help low income workers plan for and reach specific asset building goals. Federally supported IDA programs offer low-income workers three choices to obtain asset goals: – Buy a Home – Start a Business – Continue higher education 22

23. Strategies for Saving and Building Assets: Individual Development Accounts (IDAs) Savings Agreement – An eligible individual who is working signs a savings agreement with an IDA provider to establish a specified asset goal and the amount of income that will be placed in a special savings account for the identified goal. Identifies the Asset Objective Sets a goal of the total amount to be saved and matched Sets a savings/investment schedule of the specific amount to be deposited at regular intervals Agreement reached with the Program Manager on a match rate 23

24. Strategies for Saving and Building Assets: Individual Development Accounts (IDAs) In addition to setting an asset goal and a plan for saving to meet the goal, the IDA has two other core program elements: 1. There is a match the IDA program provider will offer for each dollar saved in the account. 2. Each participant will also be required to participate in financial education classes. To locate an IDA Provider in, visit the IDA Online Directory at: http://cfed.org/programs/idas/ida_directory/ 24

25. 30-Second Training Time!!! “What is an IDA?” 25

26. Strategies for Saving and Building Assets: Individual Development Accounts (IDAs) Impact on Other Public Benefits Federally funded IDAs are exempt from counting as an asset for the purposes of remaining eligible for SSI and Medicaid. An IDA with savings plans could actually help preserve eligibility for Social Security benefits. 26

27. Our last Asset Development 30- Second Training (for today) “An Individual Development Account (IDA) will affect my eligibility determination or continued eligibility for Supplemental Security Income (SSI) and Medicaid?” 27

28. Disability Program Navigators What is your role as a DPN? – Resource – Facilitator 28

29. The Navigator’s Role… As a Navigator, part of your role is to be a resource and a facilitator. – Asset Development is a crucial piece of economic self- sufficiency and greater community participation and choice. – In addition to understanding what Asset Development is, it is essential that the Navigator is familiar with some of the Asset Development Strategies to serve as a resource in the community. – By familiarizing yourself with different Asset Development strategies and educating the community about these possibilities, the Navigator may create opportunities for new partnerships and economic advancement of people with disabilities in the community. 29

30. The Navigator’s Role… Work with a local EITC coalition to spread the word about this refundable tax credit Work with key One-Stop Career Center staff (such as the WIA Counselor and Case Management staff) to educate them about the EITC and how it may be beneficial to One-Stop customers. If there is not an EITC Coalition then find other ways to get the word out about the EITC and VITA locations. – Radio and Newspaper PSAs – Disability Listservs – Partner Meetings 30

31. The Navigator’s Role… There are a number of ways that DPNs can get involved in the REI Tour. Access http://www.realeconomicimpact.org/map/ to see the list of 2010 REI Tour cities. To learn more information and become involved in this Tour, contact the following NDI members who work very closely with the IRS on this initiative. – Johnette Hartnett O: 202-296-2043 / jhartnett@ndi-inc.org – Judy Stengel (retired IRS representative) O: 316 619-2776 / jstengel@ndi-inc.org Educate the One-Stop Career Center system about IDAs and create and disseminate a list of local IDA providers. Share the Asset Development 30-Second Trainings with appropriate staff and partners. 31

32. Contact Information DJ Diamond ddiamond@ndi-inc.org 740-398-5247 Miranda Kennedy mkennedy@ndi-inc.org 720-890-3990 32