THE DANDELION CONNECTION
Ellicott Square Building., 295 Main Street Room 495, Buffalo, New York 14203
(716) 847-0655 ext. 402   dandelion@nls.org    www.nls.org
Volume 9 Issue 2                                                                  March/April 2001
Copyright 2001, Neighborhood Legal Services, Inc., all rights reserved

in this issue..
Adding a child to your household
Earned Income Tax Credit
Child Care Corner
Spending Habits Quiz
Dandelion of the Month
Maggie’s Corner
Student Loan Clinic

Adding a Child to Your Household

        Adding a child to your household can be a very big adjustment, whether the child is a newborn, comes from foster care, or another family home. Making sure that you are receiving the proper amount of benefits for a new child can make the financial transition smoother. The amount of public assistance you receive for a child depends on many factors: your relationship to the child, whether or not you are receiving public assistance, and the way you pay household expenses.

                    How do I apply for benefits for a new child?
        When a child comes to live in your home, apply for benefits immediately. Many caretakers put off applying for benefits because they are busy with other aspects of settling a child in. If the child is eligible for public assistance, benefits may be backdated to the date you filed an application. Newborns should be added to your grant effective to their date of birth, as long as the application is filed and the birth verified by the time the child is 6 months old.

        Whether you are adding a child to an existing grant or applying to have a new case opened, file a written application for benefits with the Department of Social Services (DSS). Your application should be accepted or denied in writing within thirty days of filing, assuming you have provided all the documentation requested by DSS. You may request a fair hearing if you feel you’ve been unfairly denied.

        A non-legally responsible caregiver (such as a grandparent, aunt or uncle, or non-relative) should not be required to prove that they have legal custody of a child in order to receive public assistance for that child. They must only verify that the child is living with them. (A landlord statement listing the child should be sufficient.)

            How does my relationship to the child affect my benefits?
      Your relationship to a child is important in terms of how your public assistance grant will be budgeted. Remember that natural and adoptive parents are legally responsible for their children until age 21. If you are a child’s parent, your income and resources will be considered when a child applies for public assistance. If you are a parent on public assistance, your minor child will probably be added to your case. If you are a stepparent, your income and resources will be considered but they will be budgeted differently than a parent’s, unless you have adopted the child. When you are an adoptive parent, you are treated the same as a natural parent. If you are a “non-legally responsible” caretaker, your income and resources should not be considered, and an applying child should be eligible for his or her own grant. You will still have to provide information regarding your income as part of the application process. However, your income will not be counted against the child’s grant.

        What if I am a non-parent caretaker receiving public assistance?
        If you are a caretaker and already receive public assistance benefits for yourself or your own children, a new child (related or not) will probably automatically be added to the existing case.

        However, a new child should be eligible for his or her own grant. You may need to ask your worker to put the child on a separate grant. If you do this, the two grants will be “co-oped.” This means that in some ways, the two grants will be treated as one larger grant. Having a separate co-oped grant for a new child can give your household more income under certain circumstances.

        For instance, if your co-oped shelter allowance is not enough to cover your entire rent and you are at risk of eviction, tell your caseworker. Your shelter allowances should not be co-oped in a case like this and you should get more money in your grant for shelter costs. If your case worker refuses to give your household two full shelter grants, call our office.

   What if I am a non-parent caretaker NOT receiving public assistance?
        If you are a non-parent caretaker and there is no case open in your household, there are two types of grants a child living with you may receive. You may request either one. Ask your caseworker which will give your household more money.

        The first is a “room and board” grant. In this situation, a child receives a full public assistance grant for one, and his/her shelter allowance will be budgeted with heat included. They will not be given a separate heat allowance or a food stamp grant, but they will receive an extra $45 a month.

        The second is a regular full public assistance grant. Heat allowances will depend on the situation, the child may be eligible for food stamps (depending on all household income), and there is no extra $45 allowance.

How much rent should I charge?
        In order for a child living with you to receive a shelter allowance, he or she must have a shelter cost. In other words, they must be required to pay rent. Usually, the grantee (the adult that receives a child’s grant) asks for rental payment for the child from the Department of Social Services. A grantee can do this whether they rent themselves or own a home. Many caregivers are confused as to how much they should charge for rent when they are filling out a child’s application. If you tell the Department of Social Services that you are charging a rent lower than the shelter allowance, the child will only be given a shelter grant for the amount you request.

                            Monthly shelter allowances are as follows:
* one person—$155 without heat, $169 with heat
* two people—$182 without heat, $201 with heat
* three people—$205 without heat, $215 with heat
* four people—$223 without heat, $234 with heat.

Are you receiving the proper benefits?
        Ask your caseworker about the budgeting options listed above. If you need help understanding your budget or believe your benefits are incorrect, contact Project Dandelion at 847-0650, ext. 402.

        As you begin to put together your tax returns for 2000, do not forget to see if you qualify for the many different kinds of credits and programs that are available on both the federal and state level. This section outlines the Earned Income Tax Credit. Take a look at the next page regarding the Child Care Tax Credit!

        There are several others you should be aware of  including a New York State credit for renting an apartment or home! Make sure to call the numbers below if you have questions about any of these programs.

                                        Earned Income Tax Credit (EITC)
    The EITC is a credit that is available to working, low-income people. Both families and individuals are eligible for the EITC, and you don’t have to owe any federal income tax in order to qualify for the credit (you can still file a return in order to get this credit)!

                                                        Who is eligible?
    If you worked in the last year, and filed federal taxes last year - then you may be eligible, based upon your income. The income guidelines are different for people with and without children. First, if you have two or more children in your home, and you earned less than $31,152 last year, you will be eligible. If you have one child, you must have earned less than $27,413 in order to be eligible, and if you are single, you may be eligible if you live on your own, are 25 years of age or older, and earned under $10,380.

                                            Are there any other requirements?
    If you are married, you cannot file separate tax returns and claim the EITC. There are certain restrictions on the amount of investments that you may have. Also, if you received any EITC payments in advance through your paycheck, you must report this on your taxes.

                                                How do I claim the EITC?
        You must file a federal tax return, on 1040A, or 1040 (if you do not have children, you can use the 1040EZ).

                                        How much can you receive for the EITC?
    If you have two or more children, your credit can be $3888. If you have one child, your maximum credit can be $2353, if you have no children, you may be eligible for up to a $353 credit.

                                        Will the EITC affect my Public Assistance?
    It will not count as income or as a resource for public assistance purposes, although it can count for food stamp resource purposes. If you have questions about how this works, or receive a notice that your EITC is going to affect your benefits, call Project Dandelion immediately.

                                Where can I get help with my taxes?
    For general information or tax forms, call 1-800-829-1040. You can obtain FREE assistance with your tax returns at a local Volunteer Income Tax Assistance Center (VITA) - you can find out about locations near you by calling 686-4777. You can also get copies of tax forms at most public libraries.

        As a child care provider you are a small business - even if you watch children in your own home! You may qualify for many types of tax deductions, credits, and programs. It is important for you to know your rights and responsibilities in filing your taxes.

        For more information, call Mindy Marranca at Neighborhood Legal Services at 847-0650, or the IRS Business Assistance Center at 686-4880.

Next Issue: What to look for in a child care provider-parent contract.

Spending Habits Quiz

A. I have a savings or a checking account. Yes (1 point) No (5 points)                       ____

    i. Each time I receive money, I deposit at least some into this account.
       (if you have no account, give yourself 5 points)                                                    ____

ii. I balance my checkbook, or my EBT balances at least once every two weeks.        ____

B. I have a spending and savings plan written down which tells me what I owe each
month, how much I earn each month, and how much I would like to save.                   ____
    i. My food and grocery spending is planned in advance with a list.                            ____
    ii. I pay all of my bills in full each month.                                                                   ____
    iii. I am never late paying any of my bills.                                                                  ____
    iv. I use coupons whenever I can, and take advantage of rebate-offers.                    ____
    v. I make no more than two trips to a grocery or convenient store each week.          ____
    vi. I eat out two or less times a week, including getting coffee or a snack.                 ____
    vii. I have comparison shopped for purchases at least twice in the last year.              ____
    viii. I never buy larger items on impulse, or the very first time I see them.                    ____

C. I have no more than two credit cards (including store cards).
True (1 point) False (4 points)                                                                                       ____
    i. I have never been denied a credit card or a loan. True (1 point) False (3 points)     ____
    ii. I do not have any credit cards with an outstanding balance.                                     ____
    iii. I do not charge dining out, groceries or small entertainment (like movies).               ____
                                                                                                                             _______
                                                                                        TOTAL POINTS:

Less than 23 points: A Money Whiz! You are very smart with your money! You may be ready for the next level of savings and investment! Start researching your options!

24 to 37 points: It’s a good start! You could easily jump to the next level with a few minor changes. Check your highest scored questions - work on these issues first!

38 to 50 points: You are close! You have the right idea - but it is time to make a plan and start to learn how to keep track of - and ultimately keep more of your money for yourself!

51 to 62 points: Buyer Beware!! You need to make changes immediately, or else face long-term financial troubles. Contact Project Dandelion for more assistance!

Over 63 points: Dangerous Dollars! You need to start with the basics. Write out a chart of your monthly income and expenses. Contact Project Dandelion for more assistance!