Resolve to Get Some Real Free Money

If you are a low income person with earned income, resolve to get some real money from the government this year. No, not from the “free money” losers on infomercials—from the earned income tax credit (EITC). It is the tax credit (NOT a deduction. It’s way better. A deduction just reduces the amount of your income the government can tax. A credit cuts down on your actual tax bill, and can create a refund—or sweeten the refund.) to help out low and moderate income people. In 2008, it was responsible for a payout of over $49 billion for over 23 million people. But if you don’t apply for it, you can’t get it.

Contrary to what you might think, you DON’T need a child to qualify. However, you can qualify with a higher income if you have at least one child. And you don’t need to be a math wizard to figure out the forms. You can get totally FREE help in filling out your income taxes, too. VITA (Volunteer Income Tax Assistance) is available for low-income (up to $49,000), disabled, elderly or those with a poor grasp of English. These volunteers are trained to help you find your EITC if you qualify, and they are available all over the country. To find the nearest one so that you can set up an appointment, call 1-800-906-9887.

And you may not have to settle for just the federal EITC. Twenty two states and the District of Columbia have them as well. See if your state is one, and see if you can get a break—or a refund—on your state income taxes, too. And Happy New Year!

Some Good Extensions into the New Year

Some good things have been extended into 2010. For workers who have lost (or will lose) their jobs between the end of November and the end of February, 2010, the subsidy of COBRA health benefits will be extended. Workers losing their jobs in that time period will still be eligible for a 65% subsidy of their premiums.

The $8,000 tax credit for first time buyers has also been extended to purchases between January 1 and April 30th, 2010. If there is a binding home sales contract signed before April 30th--and the sale is finalized by June 30th--the tax credit still stands. The legislation also offers a chance for repeat home buyers to get a $6,500 tax credit, with the same time restrictions.

Ohio's Heating Page--and Help For People in Other States

The state of Ohio now has a webpage with nearly everything you have to know about keeping the heat on in your home this winter. Of course, the governor has used his public official's perogative to slap his kisser on the front page, but beyond that it's a treasure trove of information, with links to winter heating assistance programs (including your rights to energy reconnection), how to understand your billing, and a page on conservation that has a link to the home weatherization program.

If you live in another state, the office in charge of the Low-Income Home Energy Assistance Program has a page providing links to all the state programs in the U.S. It even has links to online application forms where available. Even if your state does not have an online form, there will be some form of assistance, and information about help available through your local utilities. There is even a page outlining the energy disconnect policies in various states.

State Appliance Rebates are Showing Up. Just Hold Your Horses...

The "Cash-for-Appliance Clunkers" is making its debut, little by little. The reason is that the program is not administered by the federal government, but by state governments, who had to submit their plans to the federal Department of Energy for approval. But, one by one, those plans are being approved and implemented. The Consumer Reports blog has some good q and a information about what is covered, and what isn't. Furthermore, there is a link to a federal site that answers more questions (such as types of appliances covered), which in turn has another link to a state-by-state rundown of how much a state will receive, the approximate date of rollout, and numbers to call for more information.

For Ohioans, the expected rollout date is February 2010, and no phone number is listed yet. But there is a state Department of Development website with more information.