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Income Sources
I want to go back to work, but I've been disabled by the disaster. Will I be able
to keep my old job? Use
these suggestions as you consider going back to work after a disabling injury:
- Know that the Americans with Disabilities Act (ADA) may
protect you from job discrimination. In general, the ADA applies to employees
with disabilities who work for employers with 15 or more employees. Under the
ADA, you have a “disability” if your injury substantially limits you in one or
more major life activities, such as seeing, walking, speaking, performing manual
tasks, learning, or working.
- Ask your employer for a “reasonable accommodation”
(change) if one is needed. The ADA requires employers to make a “reasonable
accommodation,” or change, so workers with disabilities can do their jobs. A reasonable
accommodation might be as simple as making room for a wheelchair or providing
you with special tools.
- Keep in mind, however, that the employer is not required
to make any changes unless you request them. The employer also is not required
to make changes that cause an undue hardship for the business. For example, an
employer may not be required to make very expensive accommodations.
- Understand that you must be able to do the job after
a reasonable accommodation is made.
- Consider
how a job may affect your other benefits. For example, Social Security benefits
may be affected by how much you earn. However, there are special rules, called
work incentives, which make it possible to return to work and still receive some
benefits. To learn more about SSA’s Ticket to Work Program and Trial Work Period,
call your local SSA office or go to www.ssa.gov/work.
- Protect your rights.
If you think you are being unfairly discriminated against because of your injury,
talk with your employer. If you need further assistance, contact the U.S. EqualEmployment
Opportunity Commission at 1-800-669-4000. Or visit www.eeoc.gov.
Note: This Web site also has useful information about the ADA and employment
for people with disabilities.
What other sources of income can I tap into? In
addition to a job and disability benefits, explore the following resources:
- Find
out about special disaster relief funds from federal, state, and local governments.
Tax note: These funds are generally income-tax free.
- Talk to
your employer. Ask if you can receive your bonus early or work overtime.
- Collect
unemployment benefits. If the disaster forced your employer to lay off workers,
you may be eligible for state unemployment benefits. Tax note: These benefits
are taxable.
- Tap into your retirement plan. You may be able
to borrow against your retirement plan at work. If you are permanently disabled,
you can withdraw money in the retirement plan without penalty. However, you likely
will have to pay income tax on the money withdrawn.
- Consider using
your life insurance. A whole life or a universal life policy can have a cash
value. If you have one of these, you may be able to use the cash value to get
a loan from the insurance company or withdraw some of the cash value. (Term insurance
has no cash value.) Keep in mind, however, that the insurance company may charge
a fee, and a portion of the cash value may be taxable income to you. Continue
to pay premiums promptly so that the policy does not lapse, or if you are disabled,
find out if your policy will waive the premium because of your disability.
- Be
careful about using a reverse mortgage. If you are at least 62 years old and
own your own home (or nearly own it), you may be able to get cash out of the equity
in the house by using a reverse mortgage. (Equity is the value of your house minus
the money you still owe on it.)
A reverse mortgage is a loan against the equity
you have in your home. The loan does not have to be paid back as long as you live
in the house. It can be an expensive loan, however, and can result in a substantial
loss of equity. Before you take out a reverse mortgage, talk to your CPA financial
planner or other financial advisor. Make sure you understand the full cost of
the loan.
- Sell personal property. A coin, stamp, doll, or gun
collection might be worth a great deal of money.
Expenses
I'm having a hard time covering my bills. What can I do?
- Call your local housing authority if you are having trouble
paying your rent. Ask about rent-rebate programs or Section 8 programs, which
you pay part of the rent based on your income and the government pays the rest.
- Ask your mortgage company for a forbearance agreement. This
agreement allows you to postpone payments or make partial payments for a set period
of time.
- Take advantage of tax deductions and credits. If you
have a lot of medical expenses, you may be able to deduct them from your income
tax. Also keep track of expenses related to replacing or repairing property that
was not covered by insurance. These expenses also may be deductible on your income
tax return. In addition, lower/income taxpayers may be eligible for Earned
Income Credit. To learn more about tax deductions and credits, talk to your CPA
financial planner or other tax advisor, or go to the IRS Web site at www.irs.gov.
Debt If
debt starts to pile up, try not to feel overwhelmed. The following ideas may help:
- Call the businesses to which you owe money. Ask
for smaller payments or more time to pay. Call before you miss a payment. It may
be hard to make these calls, but most creditors will work with you.
- Consider
working with a nonprofit debt counseling service, if you owe money to many businesses.
Consumer Credit Counseling Service (CCCS) is one such organization. Call 1-800-388-2227 or go to the National Foundation for Credit Counseling at www.nfcc.org.
Stay away from credit repair companies that promise to “fix” your credit for a
fee. This is a scam. Only you can repair your credit history.
- Pay
off credit card debts with the highest interest rates first, if possible.
If you cannot pay off the entire amount, at least pay more than the minimum every
month.
- Consider bankruptcy only as a last resort. If you declare
bankruptcy, it will be difficult to get new credit for many years. If you find
yourself in this situation, call a lawyer or legal aid clinic before taking action.
Professional Advice Should
I get professional financial advice?
That depends on your situation, of course. If you
already have a trusted financial advisor, you will likely turn to that person
for help. If you don’t, you may want to consider finding free financial counseling
through a community agency or AICPA. You may wish to hire the services of a professional
financial advisor.
Here is a checklist to use when selecting a financial advisor:
 -
Ask for recommendations. Your friends or other professional advisors, such
as your lawyer, may be able to give you references.
-
Contact a professional association for names. Four national professional
organizations that can provide you with the names of their members are: (1) AICPA
(for a list of CPA Personal Financial Specialists (PFS) go to www.cpapfs.org)
or state CPA societies (check the business pages of your phone or view a state
by state listing of CPA societies at www.aicpa.org/states/stmap.htm);
(2) the Financial Planning Association (1-800-322-4237; www.fpanet.org);
(3) the National Association of Personal Financial Advisors (1-800-366-2732; www.napfa.org).
(4) the Society of Financial Service Professionals, (1-610-526-2500;
www.financialpro.org).
- What are your
credentials (such as CPA/PFS) Ask the following questions:
- What are your credentials?
- Are you bound to a professional code
of ethics?
- Do you specialize in a type of client, level of income,
or type of service?
- Do you have experience working with disaster victims? What general approach would you take to address my particular needs?
- Do you prepare written plans? How extensive are they?
- Have you ever been
disciplined by a professional or regulatory agency?
- How are you paid?
(Fee? Commission? Combination?)
- What do you expect from me?
- May
I have the names of several of your clients to call for a reference?
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