Michael Swayze's Community Resources

Category: Advocacy

  • EITC Awareness Day – January 27, 2012

    The Internal Revenue Service has declared January 27, 2012 as Earned Income Tax Credit (EITC) Awareness Day. It is a program enacted in 1975 during the Nixon Administration and expanded during the Reagan years. Although technically a tax program, it is considered one of the principal social programs for working families. Nationally, in 2011 over 26 million taxpayers received $59 billion in EITC tax refunds. EITC rewards work and reduces poverty.

    An IRS spokesperson recently stated, “If you worked any part of last year (2011) and your income was around $49,000 or less see if you qualify for the Earned Income Tax Credit, or EITC.” It can put extra money in a family’s pocket, up to $5700. In New Jersey in 2011 552,000 households received $1.17 billion via the EITC credit, with an average refund of $2,117. For a single parent with one child it is estimated that EITC effectively raises wages by $1.25 an hour.

    An EITC Tax Tip Video makes a number of suggestions. They include:
    1) Use free brand name tax software through IRS’ Free File program if your adjusted gross income is $57,000 or less. For details visit the IRS Free File: Do Your Federal Taxes For Free page.
    2) Utilize the services of any of the 400 nationwide IRS Taxpayer Assistance Centers to get face-to-face tax help. In New Jersey there are twelve local offices located in Cherry Hill, Edison, Fairfield, Freehold, Jersey City, Mays Landing, Mountainside, Newark, Paramus, Parsippany, Paterson, and Trenton. Visit the link for locations and telephone numbers.
    3) Take advantage of local and free tax preparation sites – known as VITA or AARP Tax-Aide sites – during the tax season. For a comprehensive and up-to-date list of New Jersey tax assistance sites visit the NJ 2-1-1 website. To locate the nearest VITA site, call 800-906-9887, if you do not have Internet access. In New Jersey, dial 2-1-1 or 877-652-1148 to find the closest free tax preparation site.

    There are a couple tips that I also would like to pass on. They fall into the category of consumer protection and financial literacy. Does it make sense to pay $100 or even $200 to a commercial tax preparer if you can have your tax preparation done for free and get your refund via direct deposit? You should be familiar with the term “rapid refund” and currently known as a “refund anticipation check”. They are nothing more than expensive loans. In the consumer affairs community these services are known as Refund Anticipation Loans or RALs. For a good explanation of how expensive RALs are see a recent National Consumer Law Center report. Fortunately, 2011 may be the last year in the life of these loan schemes.

    In the past couple years a number of VITA programs have partnered with financial institutions to enable tax filers to open accounts with the idea of getting a tax refund quicker via direct deposit. New Jersey consumers are fortunate in having available to them low-cost, low-volume basic checking services known as New Jersey Consumer Checking Accounts. If you want to promote financial literacy and encourage consumer education spread the word about consumer checking accounts.

    For additional information on tax preparation programs and organizations that sponsor them, visit the New Jersey Community Resources’ NJ Earned Income Tax Credit web page.

  • Legislature List Updated

    The 215th New Jersey Legislature convenes on Tuesday, January 10. The 214th Legislature ends business on January 9th with votes scheduled in both the Assembly and State Senate. In keeping with tradition, this website has again updated its list of legislators. The new list is temporarily available at
    www.njcommunityresources.info/njlegislators215.html. Once the new group is sworn in the list will be moved to its regular location at www.njcommunityresources.info/njlegislators.html.

    New faces to the Legislature include:
    Chris Brown (District 2 – Rep), Gabriela Mosquera (District 4 – Dem), Christopher Brown (District 8 – Rep), Gregory McGuckin (District 10 – Rep), Robert Clifton (District 12 – Rep), Jack Ciattarelli (District 16 – Rep), Angelica Jimenez (District 32 – Dem), Sean Connors (District 33 – Dem), Shavonda Sumter (District 35 – Dem), Benjie Wimberly (District 35 – Dem), Marlene Caride (District 36 – Dem), Timothy Eustace (District 38 – Dem), and Holly Schepisi (District 39 – Rep). If you learn of these legislators’ district office address please let me know so the web page can be updated.

    Let’s see what Trenton does in 2012.

  • Energy Safety Net Rules Overlooked

    Nearly a month ago safety net rules went into effect which allow low-income families to maintain electric and gas service without fear of disconnection during the winter months. These rules are in place in most states and in New Jersey are known as the Winter Termination Program. Unfortunately, many of the families that are at-risk do not know the regulations, while companies that are supposed to follow the rules disregard them right and left.

    You may have heard stories in which a low-income customer contacts their utility company only to be told they will be shut off soon unless they pay a large portion of their bill. This may be allowable under certain circumstances but may not comply with regulations issued by the state’s Board of Public Utilities. A situation came to this person’s attention and it was obvious the facts did not add up. For example, the customer was advised to pay three quarters of the outstanding balance. State rules allow a protected customer to pay up to 25% of the bill and go on a budget plan. The customer indicated she was receiving welfare. She was told that wasn’t enough, that she had to be receiving energy assistance (LIHEAP) to be protected against a winter shut off. She was further advised that service can be shut off as long as the temperature does not go below 32 degrees. Not true, as the weather does not supercede state regulations.

    Last month the New Jersey Community Resources website featured an article as to which groups of people are protected against disconnections. To further assist social workers and community agencies in an effort to protect vulnerable individuals and families a series of questions have been prepared when they are interviewing their clients. It should be useful in averting unnecessary shutoffs and a source of information about other energy programs. The Utility Questions Guide is available on this site. Feel free to share it.

    Other useful information is available on the following web pages:
    Avoiding NJ Utility Shutoffs,
    Winter Termination Program,
    NJ Energy Assistance Programs.

    Complaints about violations of the Winter Termination Program rules should be directed to the Board of Public Utilities at 800-624-0241.

    In a related matter, we should also wonder what happened to the funding promised to families almost two years ago. Legislation was signed in Trenton in January, 2010 with funds becoming available starting July 1, 2010. It is known as the Temporary Relief for Utility Expenses (TRUE) program but hasn’t been overly successful in averting shutoffs for moderate income families.