What About All Those Grants From the Stimulus?

Surprise! A lot of them are as fake as three dollar bills! Those ads you see in Google? The ones in Facebook? Fake, fake, and fake. Slate's Chadwick Matlin lays down the smack on these. Those apparently worthy and stalwart people, who got free cash on official-appearing checks with fuzzy signitures? Are apparently identical. Many of these "grants" require a "handling fee," and what they won't tell you is that if you don't cancel the "subscription" you sign up for (what, you didn't know that you subscribed to anything?), you could be on the hook for some big fees that will be run up on your credit card. To repeat: nobody is writing grants to people from the stimulus bill. And the government never requires a "handling fee" to do this for you.

If you are a working low-income person, your best bet for money you have coming to you is getting earned income tax credits through your tax returns. If you really want to save money, have those returns prepared by VITA volunteers (call 1-800-906-9887 to find the nearest one and set up an appointment). If you are in the metro Toledo, Ohio area, call 211 for the nearest location.

If you seek job training, find your nearest job center, because they have probably received job retraining money for their clients. Inquire about the training programs available there. But don't answer ads telling you you have a $12,000 check waiting for you that just requires a handling fee. Because you don't.

Finally--EITC Information for Tax Year 2009

I knew the IRS would come through if I waited long enough--the numbers you need to know for Earned Income Tax Credit qualification. I pussyfooted around in my last post because I could not find where the IRS was hiding the exact numbers for 2009, but here they are. If you have no children, and are filing single, you must make less than $13,440 in earned income ($18,440 if married and filing jointly). But if you have one "qualifying" child (see the IRS webpage), that figure jumps to $35,463 for singles (and $40,463 for married couples filing jointly). There is also a temporary increase in the EITC for tax years 2009 and 2010 because of the ARRA (stimulus act).

The Clunkers are Gone

...and the program has passed into history, $3 billion later.

Watch Out for CARS Scams

The new Cash for Clunkers program, in which owners of low-mileage cars can trade in those models for more efficient ones--and get money towards the new car (details here), has already attracted scam artists. According to MSNBC, people are told at various scam sites that they, the car buyers, have to register for the program. No, it's the car dealer, not the buyer, who has to register. You just have to show up at a registered dealer with your gas guzzler. See the details at the FAQ site.

Get an ARC Loan For Your Business--While You Can

The federal Small Business Administration has announced rollout of the much-awaited ARC (America's Recovery Capital) loans. What's ARC? These are loans for struggling (but still viable) for-profit businesses to get through the though economic period. They are no-interest 12-month deferred payment loans to pay either the interest or principle on previous loans. The maximum size is $35,000, and they are NOT for new businesses, only existing businesses that are deemed viable by the SBA. For more details, see the FAQ.

The money is there until September 30, 2010, or until the money runs out, whichever comes first. Since the amount of money is pretty limited, though, I'm betting on "whenever the money runs out." If you are possibly eligible, call 866-947-8081 or check the web sites above for more information.

Good Stuff on the Health Insurance Front

Some found goodies for people who are having problems finding or keeping their health insurance. The new stimulus package has a provision to help newly unemployed people get a subsidy to pay for their COBRA coverage. COBRA allows you to keep your employer health insurance for 18 months after you lose your job (in companies of 20 or more), but you must pick up the cost. The new law means that the government can subsidize 65% of the premiums for the first 9 months if you lose your job between September, 2008 and December, 2009. Note that it's only for those with no other access to group insurance. See the Chicago Tribune's blog for further details on its application, and how to get coverage. If you have any questions, call the hotline of the U.S. Employee Benefits Security Administration (1-866-444-3272) to clear them up.

Also, there's a good website on how to get coverage in the first place. The Foundation for Health Coverage Education has a website that gives health insurance information on each state, from both public and private sources. You can call up a matrix from your own state to find out your health insurance options, or take a short quiz to find out possibilities. Just plug in your state, answer a couple questions, and they will spit out some possibilities. If you want to talk to a human, try their toll-free hotline (800-234-1317) 24/7.

Where "Free Money" Comes From, And Where It Goes.

"If there's no free money, where does all this grant money go to? Like to retrain for jobs?"

I hear it every day. A little article came out in the Toledo Blade that illustrates the facts of free money life. It noted that Lucas County will receive over $5 million for job training. Surely, this is free money for the taking. But no. The money can be used by clients of The Source, the county's employment agency, for retraining and education.

O.K., so you just ask there, and they give you the money? Well, no. I had a chance to speak to Jim Flynn of The Source. He told me that the money was part of their mission to retrain workers, as part of the total package of job counseling, testing, and other methods of determining the best employment course for the trainee. According to their literature: "The ITA recipient must be an active job seeker of The Source, be eligible for Workforce Investment Act services, have completed both Core and Intensive services, and be determined in need of training." You can't just walk in and ask for the money. You have to work with a counselor, and the work for which you train most likely has to be on the list of "demand occupations." That is, good-paying jobs for which there is a demand. If a new high-paying field pops up, say, in the "green energy" field that is popular now, you can probably get financial help for training in that field. But if it's a low-paying or low-demand job, the state or federal government may not help you out.

So the money doesn't go straight to you, the job seeker/trainee, but to agencies that create programs. To get access to the resources, you have to work with the agency, and around their rules. Still, it's a great opportunity. Just be ready to deal with its conditions. To see about workforce development training in Lucas County, contact the source at 419-213-5627 or see their website at http://www.thesourcenwo.com.

Speak of the Devil, and He Shall Appear. And Start Phishing.

Right after my post re: stimulus scams, lookee what came into my spam filter:
_______________________________

Date: Mon, 26 Jan 2009 17:36:32 -0000
From: "Internal Revenue Service"
Subject: Economic Stimulus Payment online form [Message ID: xxxxxxxxxxxxxx]

After the last annual calculations of your fiscal activity
we have determined that
you are eligible to receive a Stimulus Payment.
Please submit the Stimulus Payment Online Form
in order to process it.

A Stimulus Payment can be delayed for a
variety of reasons.  For example submitting
invalid records or applying after the deadline.

To submit your Stimulus Payment form, please
download the attached document.


Note: If filing or preparation fees
were deducted from your 2007 Refund or you
received a refund anticipation loan, you will
be receiving a check instead of a
direct deposit.

Regards,
Internal Revenue Service

_____________________________________________

Hmmm. Does vodaphone.net seem like www.irs.gov (the IRS website)? I'm thinking not. I don't dare actually open this attachment, even to see what's in it, but I bet they want some juicy details that would allow them a whole lot of access into my finances. And the IRS would NOT send you stuff like this through the email.

But I'm glad it came. My own little personal illustration of a scam/phish, delivered just for me.

The Thing's Not Even Signed, but...a Scam Already.

Watch out for a new "free money" scam that is spurred by the much awaited stimulus package in Washington. According to one news source, people are being mailed checks that are reputedly worth several thousand dollars. Oh, the catch is, you have to call an 800 number and give up some personal information. Ya think?

The Detroit Free Press reports that there is an ad on Facebook, in which it's claimed you just have to give up a few dollars for a grant kit, and get your own stimulus check. Unsurprisingly, law enforcement people say that this too is a ruse to get people to fork over personal information.

The truth is, while there may be some tax breaks out of the new stimulus plan, there won't be money falling out of the sky. If the information on "how to apply" is coming from a private source--not a .gov source like the IRS website--don't believe it, and DON'T FORK OVER PERSONAL INFORMATION. Or the money for a grant kit.