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Category: Public Policy
As Republicans roll out their ideological model of welfare reform, work requirements for welfare benefits reemerge for millions of the nation’s poor. The agenda has two primary goals: make the poor earn their government benefits and reduce welfare rolls purported as a necessity to move the dependent to self-sufficiency and restore American prosperity. While it is true that there is a dignity associated with work and self-sufficiency, the fear is a misguided plan that will adversely affect those with legitimate need without adequate support and resources.
This is, of course, not the first time that we’ve seen this plan. President Clinton rolled out a similar mandate back in 1996 – problem was, there were no jobs. Things are a little different because most welfare recipients today are currently employed. Since the advent of TANF (Temporary Aid to Needy Families), our current welfare system, a work requirement for benefits clause is already in place. Trump simply signed an Executive Order to cut funding to major programs (i.e. Medicaid and food stamps) and asking states to reinforce the mandate in effect reducing rolls by eliminating recipient benefits. However, it is a fact that the economy is booming with unemployment rates at all-time lows even below the 5% national standard for full employment. According to the Bureau of Labor Statistics, the national rate stands at 3.9% and a 4.6% rate here in Michigan as of May 2018. Even Detroit carries an estimated low of 8.6% as of March 2018 plummeting from its peak of a 28% unemployment rate in 2009. All things considered, the official numbers (both nationally and locally) would likely double since part-time and discouraged workers are not included. Still, there is a marked improvement in job availability and employment opportunities now than what it was under Clinton’s plan in 1996. People are also more educated these days as high school graduation and college enrollment rates have risen drastically over the past decade. The national high school graduation rate is at 84%. The State of Michigan is holding at about a 79% graduation rate since 2015, and Detroit’s graduation rate stands slightly over 80% for the 2016-17 school year, according to the Michigan Center for Educational Performance. Unfortunately, though, only about 30% of American adults hold a Bachelor’s degree. Only 39.4% of working-age adults (between 25 and 64) hold a two-year degree. That number drops in the Detroit area with a low 28% college graduation rate showing about 11% with Bachelor degrees and just over 8% holding a two-year Associates degree. That’s according to the Open Data Network (2016). White House Budget Director, Mike Mulvaney (CNN Money, May 2017) states, “We are no longer going to measure compassion by the number of programs or the number of people on those programs. We’re going to measure compassion and success by the number of people we help get off those programs and get in charge of their lives.” As such, the employment requisite is set to offer a variety of options for recipients to satisfy the work requirement such as documented job-seeking activities, going to school, performing community service, or participating in a job-training program. But the plan may be misguided or incomplete, at best, because most welfare recipients already have jobs as a requirement of the current benefit structure under TANF. The plan also does not take into consideration the many barriers to employment such as the required job skills and qualifications needed to obtain a job, transportation, child care, or, even, health. Then, what happens when we factor in the part-time workers who are employed but less than the mandated work requirement and can’t find full-time jobs. And, what about the fact that this same plan calls for defunding job training programs. We can be sure that the severely poor will get caught in the cross-fire and lose their safety net in the process. Some tend to forget that the poorest population are children at a national poverty rate of 21% - that’s about 15 million U.S. children who live in abject poverty. We have become so defocused by able-bodied adults on welfare that it is forgotten that those benefits are received because of needy children or disabled persons in the household. Furthermore, the benefit structure of TANF imposes lifetime limits on assistance up to five (5) years and no longer allow benefits to be significantly raised for every additional child born to the household. That was the AFDC (Aid to Families and Dependent Children) program. Yet, these myths continue to be perpetuated to stigmatize the poor who depend on government assistance to survive. Here’s the breakdown of employment for Medicaid recipients: 41% are employed full-time, 18% work part-time, and another 41% are unemployed. The percentage of unemployed recipients include children, seniors, and the disabled. The clear target of the States’ revival of work mandates are the able-bodied, working-age adults who acquired health insurance from the Medicaid expansion provision through Obamacare. This provision, in effect, made Medicaid an entitlement as some would assess. Under TANF, work requirements only applied to food stamps, cash, and housing assistance. Medicaid had no work requirement clause so states could not mandate recipients to work for government healthcare, until now. In Michigan, legislators voted to implement a “workforce engagement rule” under Medicaid. This will require recipients to maintain full-time employment, at least 29 hours per week to retain their health coverage. Trump signed his Executive Order on Tuesday, April 10, 2018, a week later the Michigan Senate passed the work requirements bill for Medicaid on Wednesday, April 18, 2018. The rule will go into effect in October 2019 and does provide for satisfying the requirement by either employment, school, or job-seeking activities. Michigan residents who live in counties with an 8.5% unemployment rate or higher, disabled persons, full-time students, and those receiving substance abuse treatment would be exempt from the rule. Was this post helpful? Leave a comment and share your thoughts. If you’re in need of case management services or assistance please Contact Us by completing the confidential contact form. Also, consider donating to continue this important work and expand our reach to the broader community. Contact Us: http://www.canmichigan.com/reach-out-to-us.html Donate: https://www.paypal.com/donate/?token=u9ZbQw7yTRWAm9K4Yl2MKERd76oKf_lBrejXuVLAx0j5rsSTG72gmICfR9S-bVY4az_Imm&country.x=US&locale.x=US Related Posts: [Opinion] The Working Poor: On Welfare With A Job http://www.canmichigan.com/blog/opinion-the-working-pooron-welfare-with-a-job Community Resources http://www.canmichigan.com/community-resources-michigan.html Links: Trump Signs Executive Order Pushing Work Requirements for Welfare Recipients https://www.cbsnews.com/news/trump-signs-executive-order-pushing-work-requirements-to-receive-welfare-benefits/ MI Senate Passes Bill That Would Require People on Medicaid to Work https://www.wxyz.com/news/mi-senate-to-vote-on-bill-that-would-require-people-on-medicaid-to-work Republicans Want the Poor to Work for their Government Benefits http://money.cnn.com/2017/05/30/news/economy/republicans-work-requirements-poor-benefits/index.html Bureau of Labor Statistics https://data.bls.gov/timeseries/LASST260000000000003 Detroit’s True Employment Rate http://michiganradio.org/post/detroits-true-unemployment-rate Open Data Network https://www.opendatanetwork.com/entity/310M200US19820/Detroit_Metro_Area_MI/education.graduation_rates.percent_bachelors_degree_or_higher?year=2016 Trump’s Budget Proposes 40% Cut to Job Training Programs http://money.cnn.com/2017/05/24/news/economy/trump-budget-job-training-programs/index.html?iid=EL
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Category: Social Topics
Although, some may see the numbers and conclude that the problem is welfare recipients and how they out-number the working people who has to subsidize them. Let’s examine the numbers a little closer so that we have an accurate depiction of what they really mean. Here’s my theory, it’s always better to know the real answers so that we can address the real problem and attempt to resolve the problem with real solutions. First, the reports cited do not take into consideration the estimated three-quarters (3/4) of workers who are employed but still rely on anti-poverty programs like food stamps and Medicaid. These are the “working poor” a new and rising economic class that’s often overlooked. According to a study by the Berkley Center for Labor Research and Education cited by the New York Times (2015), “taxpayers not only support the poor but also pay a huge subsidy for employers with low-wage workers…this is the hidden cost of low-wage work.” The cost of subsidies such as the Earned Income Tax Credit and Medicaid when workers are denied living wages and health insurance also fall into the pockets of other taxpayers. The University of California – Berkley further estimates a $150 billion annual expense for state and federal governments for workers who also rely on welfare to make ends meet. Politicians, generally, like to spew out stats that appear to show that hard working people are being overtaken by the shiftless to justify the need to end welfare. Of course, without giving the full picture of who receives these benefits, why, and for how long. They also do not tell us how the studies were conducted, things like what is being measured, how it was measured, or what portion was taken from a small sample and generalized to an entire demographic. Believe it or not, these factors and others make a significant impact on the outcomes. Instead, stereotypes are created like ‘welfare queens’ and ‘the makers versus the takers’ rather than deal in reality about real social problems that have attainable solutions. I have personally looked at several studies on welfare and in every case the measurements were different. For one, every study supposedly measured the number of people on welfare but some only looked at recipients of TANF, food stamps, and Medicaid. Other studies included SSI and WIC. Some were longitudinal studies which followed a large sample of people over time, others reviewed welfare rolls, and so on. But, none discussed or offset the numbers by workers on welfare or how many workers held their job an entire year, etc. This is important because it gives us a skewed sense of reality about the economy and the human condition. So, in the world of fake news and alternative facts we search for the “truth” - things we need to consider in our political debates and certainly when developing public policy.
Related Posts:
Redefining Social Welfare...Again http://www.canmichigan.com/blog/redefining-social-welfare-again Wraparound Services Section Free Tax Preparation – Earned Income Tax Credit Panel http://www.canmichigan.com/wraparound-services.html Links: https://www.census.gov/newsroom/press-releases/2015/cb15-97.html https://www.census.gov/newsroom/blogs/random-samplings/2015/05/how-long-do-people-receive-assistance.html https://www.nytimes.com/2015/04/13/business/economy/working-but-needing-public-assistance-anyway.html
Category: Government Benefits and Programs
A homestead is your permanent, primary residence and must be located in the State of Michigan. You must be the owner and occupant or contracted to pay rent and occupy the residence at least six (6) months out of the year. According to Michigan state law, vacation homes, cottages, second homes, property you rent to others, and college/university operated housing does not qualify for the credit. You can only have one (1) homestead at a time. This is a summary of the homestead tax credit. You may claim a property tax credit if all of the following apply:
Homeowners and renters whose total household resources (100%) are received from the Michigan Department of Health and Human Services (i.e. FIP cash assistance, FAP food assistance, etc.), you do not qualify. This rule does not apply to recipients of social security and other disability payments. To calculate your total household resources: www.michigan.gov/documents/taxes/ChecklistDetermineTHR_444822_7.pdf Checklist for preparing a Michigan Homestead Property Tax Credit Claim https://www.michigan.gov/documents/taxes/MI-1040CR-Checklist_405711_7.pdf Sample Property Tax Statement https://www.michigan.gov/documents/TaxStmt_139884_7.pdf You may submit your Michigan Homestead Property Tax Credit Claim (MI-1040CR) with your MI-1040, if you are required to file an individual tax return. However, you are not required to file a Michigan tax return to claim the homestead property tax credit. You have four (4) years from the original due date to file your claim. Additional Recommendations Active military personnel, eligible veterans, or surviving spouse of a veteran should complete both the MI-1040CR and the MI-1040CR-2 (Michigan Homestead Property Tax Credit Claim for Veterans and Blind People). Submit the form that gives you the larger credit. Blind homeowners should also complete both the MI-1040CR and the MI-1040CR-2 and file the form that gives you the larger credit. Renters who are blind must file the MI-1040CR. Total Household Resources The goal in tax planning is to find ways to reduce your taxable income. You begin that process by analyzing your household income and assets. Total household resources include all income received by all household members during the year, including income that might be exempt from federal adjusted gross income. Losses from business activity may not be used to reduce total household resources. Some things to consider as household resources include:
Special Qualifying Circumstances
Renters aged 65 or older qualify for the Alternate Property Tax Credit whose rent is 40% of their total household resources. Visit the Michigan Homestead Property Tax Credit – Homepage for further information on the worksheet and estimator. For cooperative housing you may claim your share of the property taxes on the building and land under the building. If rent is paid on the land, you may claim 20% of that land rent. Association fees do not apply. Family Independence Program (FIP) recipients who receive cash assistance from the Michigan Department of Health and Human Services (MDHHS) can claim a prorated credit based on income from other sources compared to your total income. FIP recipients who receive 100% of their total household resources from MDHHS do not qualify for this credit. Visit the Michigan Homestead Property Tax Credit – Homepage for further information on the Individual Tax Credit instructional booklet and how to calculate the credit. Homeowners involved in a mortgage foreclosure or home repossession will have an impact on their Individual Income Tax Return (MI-1040) and Homestead Property Tax Credit (MI-1040CR). Visit the Michigan Homestead Property Tax Credit – Homepage on Information for Mortgage Foreclosure or Home Repossession and Your Michigan Income Tax Return. Mobile home park residents qualify to claim $3/month specific tax up to $36 and 20% of their annual rent expense less the maximum $36 specific tax. You may also claim tax payments on attached buildings (i.e. garage, tool sheds, etc.). Homeowners and renters must know the move-in and move-out dates from a home. Renters must know the date you rented and move-out date. Homeowners must know the purchase date and the date you sold a home. Homeowners with more than one property may only claim the prorated taxes for homes with a taxable value of $135,000 or less. The taxable value is the value on which property taxes are calculated (See your tax statement or contact your local city/township/county assessor’s office). If you sell your home for more than you paid, plus improvements, it is considered a capital gain. In general, capital gains are not taxable but must still be added to your total household resources from the sale of your home. When buying or selling a home you must prorate only the taxes levied (billed) to determine the taxes that can be claimed for credit. Taxes are prorated by using the amount billed during the tax year on each homestead and divide based on the days of occupancy. The combined property taxes and/or rent may not exceed twelve (12) months. Residents of “special care” facilities (nursing home, home for the aged, adult foster care) may claim the credit for rent only. If the rent includes other services, you can calculate the portion that constitutes the rent by determining your portion of the property taxes by square footage, or, by dividing the amount of property taxes by the number of residents the home is licensed for. You may be required to submit the landlord’s documentation to verify the claim.
If you live in public housing and the owner does not pay property taxes or a service fee, you are not eligible for the homestead property tax credit. If you live in Section 8 housing and a portion of your rent is paid by MSHDA, or any government agency, you may claim your portion of the rent that you actually paid. If you live in Service-Fee Housing you may claim only 10% of the rent for the homestead property tax credit. Service-Fee Housing is a program where the property owner and the municipality agree on a service-fee payment instead of property taxes. Service-fee housing are typically low-income or senior-citizen housing and may be an apartment or single-family home. Service-fees are usually less than property taxes. In shared housing situations, it should be noted that in all scenarios you are required to include gifts of cash or expenses paid on your behalf in your total household resources. This includes all contributions from other occupants in the home used to pay taxes, rent, utilities, etc. Eligibility criteria for shared housing:
Principle Residence Exemption (PRE) Owner/occupants of their principle residence may be exempt from a portion of your local school operating taxes. The PRE (formerly, the Homestead Exemption) exempts a principle residence from taxes levied by a school district for school operating purposes up to 18 mills. You must be a Michigan resident who owns and occupies the property as a principle residence. The PRE is a separate program from the Homestead Property Tax Credit. A property owner may claim a PRE by submitting Affidavit Form 2368 (link below) to the assessor for the city or township where the home is located. The first deadline is June 1 and a second deadline is November 1 each year. However, when you no longer own or occupy the property as a primary residence, you must file a Request to Rescind Homeowner’s Principle Residence Exemption (PRE) – Form 2602. You must request to rescind the PRE by submitting From 2602 to the city assessor within ninety (90) days of the change or be penalized. Failure to rescind a PRE may result in additional taxes, interest and penalties. A conditional rescission allows an owner to receive a PRE on their current property and previously exempted property simultaneously up to three (3) years. The owner must submit a Conditional Rescission of Principle Residence Exemption (PRE) – Form 4640 to their city or township assessor before June 1 or November 1 of the first year of the claim. Disabled Veterans Property Tax Exemption Disabled veterans may be eligible to receive a full exemption from paying property taxes on their primary residence if 100% disabled, service-connected. They are also eligible for the Homestead Property Tax Credit separate from the property tax exemption program. Disabled veterans or surviving spouse may request the exemption by filing an affidavit to the Michigan Department of Treasury the first two (2) months of the assessment year (January or February). This benefit also qualifies disabled veterans for specially adapted housing. Please contact the Michigan Department of Treasury for more information. First-Time Homebuyers and Homesteaded Properties One final note, first-time home buyers should also verify if their property has been homesteaded. In such cases, this means that your property taxes are significantly reduced. In Michigan, the tax break for “homesteaded” properties equate to the millage amount of a school district, which is about one-half of your tax bill. The benefits of a homesteaded property are not only lower taxes, but, lower taxes also mean lower mortgage payments. Be sure to inquire with your realtor regarding properties that are homesteaded vs. non-homestead before you purchase a home. When submitting a request for review if your credit was less than expected, use the following checklists depending on your occupancy status. Homeowner’s Checklist: https://www.michigan.gov/documents/taxes/MI-1040CROwnersChecklist_405714_7.pdf Renter’s Checklist: https://www.michigan.gov/documents/taxes/MI-1040CRRentersChecklist_405697_7.pdf Be sure to visit the Homestead Property Tax Information – Homepage for more information regarding frequently used homestead property tax credit forms and instructions. If you still have questions, it is advised that you contact a local tax professional for further assistance. Was this post helpful? Leave a comment and share your thoughts. If you’re in need of case management services or assistance please Contact Us by completing the confidential contact form. Also, consider donating to continue this important work and expand our reach to the broader community. Contact Us: http://www.canmichigan.com/reach-out-to-us.html Donate: https://www.paypal.com/donate/?token=u9ZbQw7yTRWAm9K4Yl2MKERd76oKf_lBrejXuVLAx0j5rsSTG72gmICfR9S-bVY4az_Imm&country.x=US&locale.x=US Related Posts: Utility Assistance: The Michigan Home Heating Credit http://www.canmichigan.com/blog/the-michigan-home-heating-credit Free Tax Preparation Services http://www.canmichigan.com/wraparound-services.html Links: Michigan Homestead Property Tax Information – Homepage https://www.michigan.gov/taxes/0,4676,7-238-43535_43538-155081--,00.html Michigan Homestead Property Tax Information for Separated or Divorced Taxpayers https://www.michigan.gov/documents/taxes/2105_509978_7.pdf Worksheet for Married, Filing Separately, and Divorced or Separated Claimants https://www.michigan.gov/documents/taxes/5049_609035_7.pdf Checklist for Total Household Resources https://www.michigan.gov/documents/taxes/ChecklistDetermineTHR_444822_7.pdf List of Income and Deductible Items from Total Household Resources https://www.michigan.gov/documents/taxes/CC-41011_608354_7.pdf Qualified Health Insurance Premiums https://www.michigan.gov/taxes/0%2C1607%2C7-238-43535_43538-228583--%2C00.html Information for Mortgage Foreclosure or Home Repossession and Your Michigan Income Tax Return https://www.michigan.gov/taxes/0,4676,7-238-43513-228580--,00.html Michigan Department of Treasury – Individual Income Tax Division https://www.michigan.gov/taxes/0,4676,7-238-43513---,00.html Principle Residence Exemption – Homepage https://www.michigan.gov/taxes/0,4676,7-238-43535_43539-210891--,00.html Homeowner’s Principle Residence Exemption Affidavit – Form 2368 https://www.michigan.gov/documents/2368f_2605_7.pdf Principle Residence Exemption Guidelines https://www.michigan.gov/documents/taxes/2856_PRE_guidelines_607370_7.pdf Request to Rescind Homeowner’s Principle Residence Exemption (PRE) – Form 2602 https://www.michigan.gov/documents/2602f_2607_7.pdf Conditional Rescission of Principle Residence Exemption (PRE) – Form 4640 https://www.michigan.gov/documents/taxes/4640_231633_7.pdf Michigan Homestead Property Tax Credits for Separated or Divorced Taxpayers https://www.michigan.gov/documents/taxes/2105_509978_7.pdf Michigan Married Filing Separately or Divorced and Separated Claimants Schedule https://www.michigan.gov/documents/taxes/5049_609035_7.pdf
Category: Government Benefits and Programs
But, before delving into the tenets of the Michigan Home Heating Credit, let us begin by first stating for the record that understanding tax code is certainly not my strong suit (area of expertise) but I wanted to expound on this important tax credit because it has some strong implications for low-income households. Although, tax season is technically over it is always an appropriate time for tax preparation and planning. Tax preparation is not just filling out forms and putting them in the mail, it is also an active planning process of making informed decisions throughout the year that are most beneficial in maximizing your returns when it’s time to file.
Even more relevant to the topic, for our purposes, is that new work requirement legislation has passed in Michigan. It will mandate all able-bodied adults to return to work, school, or job training for a minimum of 29 hours a week to keep their Medicaid. This new legislation termed the “workforce engagement rule” is actually a revisit to President Clinton’s “welfare-to-work” initiative under the Personal Responsibility and Work Opportunity Act (PRWORA) of 1996 that created TANF. Temporary Aid to Needy to Families (TANF) is our current system of welfare benefits that replaced Aid to Dependent Children (ADC), created by President Roosevelt’s New Deal during the 1930s Great Depression. It later became Aid to Families with Dependent Children (AFDC) in the 70s. Of course, the open-ended benefit structure of ADC/AFDC is a thing of the past and lawmakers are doing everything possible to be sure of it. To the point, the new “workforce engagement rule” passed in the Michigan Senate in April 2018 and will go into effect in October 2019. One month after the expiration of the Michigan Energy Assistance Program (MEAP) which funds utility bill payment assistance programs across the state. Needless to say, lots of changes are coming and many will be required to enter the workforce and encounter tax laws that they may not understand. Still, many others who are already employed may not be fully aware of the existing tax structures and how they may benefit or be adversely affected by them. This information is critically important to recipients of unearned income (i.e. state cash assistance (FIP), disability, etc.) and low-wage earners, particularly those who supplement their incomes with food stamps (FAP). The first issue with the Home Heating Credit is to understand what a “homestead” is and what it isn’t. The short answer is that a homestead is your primary residence. A homestead is not the house that you use for rental property, a vacation home, cottage, college or university operated housing (i.e. dorms, apartments, resident halls), or a home you have in another state. You are only qualified to claim the Homestead Credit for your permanent home where you live in Michigan. You must be the owner and occupant or contracted to pay rent and occupy the home. You can only have one (1) homestead at a time. General eligibility criteria are as follows:
The Standard Credit You must be eligible to use the standard method and indicate on the Home Heating Claim if your heating costs are in someone else’s name or included in the rent. The standard credit computation is based on the standard allowances for the number of exemptions you claimed. You may be eligible to use the standard method if:
Table A - Standard Allowance Table
(Note: If you lived in your homestead less than 12 months, the standard allowance must be prorated)
The Alternate Credit
The alternate credit allowance utilizes home heating costs to calculate your credit. You must add up the amounts you were billed for heat from November 1, 2016 to October 31, 2017. If you buy bulk fuel (oil, coal, wood, or bottled gas), add your receipts to get your total heating cost. Be sure to maintain receipts as treasury may request them to verify your claim. You Are Not eligible to calculate the credit using the Alternate method if:
Table B – Alternate Credit Computation Table
Total Household Resources
The goal in tax planning is to find ways to reduce your taxable income. You begin that process by analyzing your household income and assets. Total household resources include all income received by all household members during the year, including income that might be exempt from federal adjusted gross income. Losses from business activity may not be used to reduce total household resources. Some things to consider as household resources include:
Other Qualifying Special Circumstances
You may claim the credit if you share a home with another contracted renter who pays a share of the rent (i.e. roommates). Each occupant should file a claim based on their individual total household resources and share of the standard allowance. Use Table A to determine the standard allowance for the number of occupants in the home. You may qualify for the credit as a Part-Year Resident if you occupied your Michigan home (own or rent) for less than twelve (12) months. See the link “Michigan Home Heating Credit – Homepage” for information on how to calculate the credit. You do not qualify for the credit if you live in a licensed care facility (i.e. Adult Foster Care, Licensed Home for the Aged, Nursing Home, and Substance Abuse Treatment Centers). However, subsidized senior apartments are not licensed care facilities and senior citizens may apply for the credit.
If a claimant dies before the end of the tax year, a personal representative or surviving spouse may claim the standard heating credit but may not claim the alternate credit. In the case of a surviving spouse, file a joint claim using the same number of exemptions you would have used had your spouse lived all year. You must report the deceased’s income, date of death, and write that you are “Filing as a Surviving Spouse” in the appropriate sections of the claim. There are additional special instructions if you are filing as a personal representative for a deceased single taxpayer or if both taxpayers are deceased. See the Michigan Home Heating Credit – Homepage link below. Other important factors to keep in mind:
People rarely think of tax credits as a utility assistance program such as the Michigan Energy Assistance Program (MEAP) or Low-Income Self-Sufficiency Program (LSP) both of which we have previously discussed. But, the Home Heating Credit is, in fact, a federally-funded energy assistance program, administered by several State of Michigan agencies and designed to benefit low-income households. But it is important to know that the Home Heating Credit can affect the amount food assistance benefits you receive. According to the Michigan Department of Health and Human Services, food benefits for some renters may be increased if the household received a home heating credit greater than $20 in the current month or previous twelve (12) months. This is important for renters whose heating costs are included in their rent. You can make sure that your home heating credit is used to calculate your food benefits by informing your DHS worker or indicating it on your MDHHS public assistance application. If you receive any type of public assistance your Home Heating Credit will be paid directly to your utility provider and credited to your account. Be sure to visit the Michigan Home Heating Credit – Homepage for more important information regarding mistakes to avoid in filing your claim, the payment process, how to check the status of your home heating credit, forms and instructions, and other helpful information. Click the links below for more information on free tax preparation services, tax planning, how to calculate your Total Household Resources, qualified health insurance premiums, and how to file your Michigan Home Heating Claim. See the link “Home Heating Credit and Shared Housing Situations” for information on how to calculate the credit. Was this post helpful? Leave a comment and share your thoughts. If you’re in need of case management services or assistance please Contact Us by completing the confidential contact form. Also, consider donating to continue this important work and expand our reach to the broader community. Contact Us: www.canmichigan.com/reach-out-to-us.html Donate wih PayPal Related Posts: Free Tax Preparation Services www.canmichigan.com/wraparound-services.html Community Resources - Utility Assistance http://www.canmichigan.com/community-resources-michigan.html Links: Tax Planning for Beginners (Turbo Tax article) turbotax.intuit.com/tax-tips/tax-planning-and-checklists/tax-planning-for-beginners/L1zd34qfu Michigan Home Heating Claim Instruction Booklet www.michigan.gov/documents/taxes/MI1040CR7_BOOK_610872_7.pdf Michigan Home Heating Credit - Homepage www.michigan.gov/taxes/0,4676,7-238-43513_66852-330928--,00.html Checklist for Total Household Resources www.michigan.gov/documents/taxes/ChecklistDetermineTHR_444822_7.pdf List of Income and Deductible Items from Total Household Resources https://www.michigan.gov/documents/taxes/CC-41011_608354_7.pdf Qualified Health Insurance Premiums https://www.michigan.gov/taxes/0%2C1607%2C7-238-43535_43538-228583--%2C00.html Home Heating Credit and Shared Housing Situations https://www.michigan.gov/taxes/0,4676,7-238-43513-228582--,00.html MI Bridges: Apply for Assistance or Manage Your Account https://www.mibridges.michigan.gov/access/
Category: Consumer Services
 Know Your Legal Rights or Lose Them
The purpose of the No Fault Act is to guarantee payment of certain benefits to all accident victims regardless of fault in causing the accident. It was originally intended to simplify the auto claims process but the opposite occurred mainly due to the broad language of the law leaving it up to legal interpretation and maneuvering thereby complicating the system.
However, this fact works in favor of claimants if, and, when there is the unfortunate occurrence of a motor vehicle accident. In Michigan, there is a growing trend of attorney tv advertisements bolstering personal injury claims resulting from motor vehicle accidents. The reason is that few policy holders are aware of the compensable benefits they are entitled to when injured by a car. Although we pay the enormous costs to insure vehicles, claims are rarely filed in fear of raising insurance costs. But what policy holders usually don’t know is that in cases of injury the benefits can be just as significant, at least, here in Michigan. Thus, it is of critical importance for accident victims to fully understand their legal rights regarding auto claims or they may lose them. The ability to file personal injury claims for auto-related accidents stems from the statutory Section 3105 of the Michigan No Fault Act which is considered the pivotal or gateway section to No Fault PIP benefits. While Section 3105(2) gives the No Fault system its name, Section 3105(1) sets forth the basic legal entitlement test for compensable PIP benefits. The Section reads: “Under personal protection insurance an insurer is liable to pay benefits for accidental bodily injury arising out of the ownership, operation, maintenance, or use of a motor vehicle, as a motor vehicle, subject to the provisions of this chapter.”
Entitlement disqualifications fall into two (2) categories: (a) the parked vehicle exclusion, and (b) the statutory disqualification. The parked car exclusions are outlined in Section 3106(1) and Section 3106(2). It is important to know that neither section does not expressly state you are disqualified from entitlement benefits if accidental bodily injuries are sustained in a collision with a parked car but does require specific circumstances that make those benefits payable. Also, when an accident occurs involving, both, a parked and moving vehicle at the same time, the moving vehicle takes precedence for eligibility to benefits and the parked car criteria are not applied. An accident with a parked vehicle must fall into the following four (4) scenarios:
The fifth parked car exclusion criteria as stated in Section 3106(2) specifies that benefits are not payable when an accident occurs with a parked car and an injury occurs during loading, unloading, performing mechanical duties, or getting in or out of a vehicle while in the course of employment. The reason is that injuries sustained in the course of employment are generally covered under workers’ compensation laws. Exceptions to this exclusion is when the injured person is an occupant of the vehicle or driving the vehicle in the course of employment. In the case of either occupying, or, driving a vehicle in the course of employment, the employee would be entitled to both workers’ compensation and PIP benefits. Statutory disqualifications are outlined in Section 3113 which states that an injured persons are not entitled to PIP benefits when operating: (1) a stolen vehicle or motorcycle; (2) an uninsured vehicle; (3) a vehicle registered and insured in another state outside of Michigan and the occupant is a foreign resident; and, (4) a vehicle or motorcycle as an unauthorized user. Finally, PIP benefits can be payable to Michigan residents when an accident occurs out-of-state. But the injured party must be covered under a Michigan No Fault policy as the insured, the spouse or resident relative of the insured, or the occupant of a Michigan insured vehicle. Out-of-state residents may also be entitled to PIP benefits when occupying a Michigan insured vehicle, or as a pedestrian, bicyclist, or motorcyclist injured by a insured moving vehicle. Furthermore, out-of-state citizens may draw benefits if insured by an insurance company authorized to do business in Michigan stipulated by a maximum $500,000 limitation in certain cases. Out-of-state claimants should seek legal counsel to interpret the complicated scenario of non-resident entitlements. If you have questions, please complete the Contact Form for more information. Related Posts: AUTO ACCIDENT VICTIMS AND NO FAULT INSURANCE auto-accident-victims-and-no-fault-insurance.html AUTO INJURY CASE MANAGEMENT SERVICES www.canmichigan.com/case-management-services.html |
Deborah MitchellWelcome to The Community Advocate Network. My name is Deborah Mitchell, I am a graduate in Social Work and Registered Social Work Technician. My human service background began in 2007 which includes medical case management and service navigation for the indigent population, outpatient mental health counseling with substance use and abuse disorders, supportive employment and job development for mental health consumers, and structured living domicile management. Archives
February 2019
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