People's Voice

A Publication of Northwestern Legal Services, Erie, Pennsylvania

Volume XIV Issue 1

Spring 2002



Get Your TAXBACK/Tax Forgiveness 

Our Mission: To serve the community in assessing and responding to clients’ legal needs and empowering them in attaining justice.
Serving Northwestern Pennsylvania
since 1969
Executive Director:
Robert A. Oakley, Esq.
(814) 452-6949, Ext. 123

Editor:
Salvador A. Parco, Ph.D.
Community Educator
(814) 452-6949, Ext. 105
FAX (814) 452-3734
e-mail: sparco@nwls.org

Articles in this newsletter are for general information only and not specific legal advice.  If you have a specific legal problem, you should consult an attorney.
 Thanks to Twila Bruno for her contribution towards the printing of the People's Voice
Community Education is partially funded by the 

United Way of Erie County
and 
Legal Services Corporation

I f  you received a state income tax refund last year or owed no taxes because you had no taxable income, you may be able to obtain a refund from the state or reduce the amount of state income tax that is withheld from your paycheck. If you worked in 2001, you can either get back all the income tax withheld from your paycheck or you pay partial income tax.
   Pennsylvania’s Tax Forgiveness Program, also known as the Special Provision (SP) Program, is a tax credit that can be used to offset the 2.8% state income tax withheld by your employer(s) from your gross income.
   The TAXBACK/Tax Forgiveness income allowance in 2001 for each dependent child has been increased to $8,500. Depending on your family and filing situation, you can receive hundreds of dollars in credits or refunds. For example, a single parent with two children with eligibility income of $23,500 could get back as much as $658. A family of five could get back up to $1,075.

Offset Programs Can Affect Tax Refunds
T
he PA Department of Revenue, in cooperation with the Department of Public Welfare, will intercept PA income tax refunds of taxpayers that are delinquent in child support, and will provide the offsets to the PA Child Support Enforcement System (PACSES).
   A married person that is liable for child support must file a separate PA tax return (Married, Filing Separately), according to the Department of Revenue.
   The Internal Revenue Service will intercept Federal Income Tax refunds for delinquent PA income tax liabilities. The Department of Revenue will notify delinquent taxpayers about its intention to intercept their federal refund and allow them 60 days to pay their liabilities.

  Your eligibility income is the total amount of your PA taxable and nontaxable income. It is the amount you will use to determine your percentage of TAXBACK/Tax Forgiveness. Your TAXBACK/Tax Forgiveness credit is the percentage of the difference between your PA Tax Liability and your Resident Credit (Line 23 of PA-40). If you have children, you use your Eligibility Income and the number of dependent children to calculate your percentage of TAXBACK /Tax Forgiveness.
   You can claim TAXBACK/Tax Forgiveness as either unmarried (separated) or married. There is no  advantage to filing separately. Married claimants must always report their Joint Eligibility Income, even if they are filing separate returns. File Form PA-40 or PA-40EZ, and PA Schedule SP.



Page 2 People's Voice

   In Case You Didn't Know... 

T his is now the fourteenth year that Northwestern Legal Services is publishing the People’s Voice. Many articles pertaining to civil legal issues have graced its pages. But some people still may not know what Northwestern Legal Services does, in spite of its existence since 1969. So, it’s time again to review what we do, and what we can do.
   Our mission is to serve the low income community in assessing and responding to clients’ legal needs and empowering them in attaining justice. Our most important functions are to give free legal representation to low income clients - individuals and families with incomes at or below 125% of poverty level, and free community education to groups of clients in order to enable them to help themselves through preventive measures, self-representation, or group advocacy.
   In case you didn’t know, you may call 814-452-6957 or 1-800-665-6957 for free telephone advice on certain civil legal issues pertaining to obtaining child support, custody and visitation, landlord-tenant issues, debt collection problems, and name changes. If your case merits personal attention from an attorney or paralegal, you may be invited to one of our six offices located in Erie (1001 State St., Suite 1200 Renaissance Centre); Meadville (231 Chestnut St., 4th Floor Professional Building); Franklin (1243 Liberty St., Suite 420); Farrell (1031 Roemer Blvd.); Warren (213 Third Ave. West, Suite 407 Warr-Penn Bldg.); and Bradford (100 Main St.).
   Income eligible applicants may be considered for free direct representation by an NWLS attorney or paralegal if their case involves specific legal issues, such as:
   Public Benefits - Initial denials and overpayments of Social Security or SSI Disability.
   Public Welfare - Denial, reduction of benefits, or overpayment of Temporary Assistance for Needy Families (TANF), General Assistance, Special Public Assistance Grants and Allowances, Support Pass-Through, Food Stamps, Energy Assistance, State Blind Pension, Women, Infants and Children Food Program, and Department of Public Welfare Appeals from Hearing Officer Decision.
   Unemployment Compensation - Eligibility determination and overpayment.
   Family Law - Custody/Visitation Actions, Contempt Actions, Domestic Violence - Protection from Abuse Petitioners at final hearing, Child and Spousal Support, Adoptions, and Guardianships.
   Education and Employment - Special Education, School Expulsions (Suspensions over 10 days), Alternative Education, Title 1 Program, Job Training, Vocational Rehabilitation, and Economic Development/Jobs.
   Health Care - Medical Assistance, Medicare, Private Medical Insurance, Access to Health Care Facilities, Denial of Medical or Dental Treatment, Lead Poisoning, EPSDT, Living Will, and Power of Attorney.
   Housing - Public Housing and Subsidized Housing.
   To make the general public aware of their legal rights, we conduct free seminars and workshops for organizations and agencies serving low income people. We give legal education and assistance to groups. Aside from the quarterly newsletter People’s Voice, we produce pamphlets, flyers, and other educational materials, including television programs which are aired through Community Access TV (Channel 2 and Channel 17) and other TV stations. We have designed a web site - www.nwls.org - which can be accessed through the internet. To enlarge our audience, we also utilize the print media, such as the Tri-State Senior News.
   If you belong to a group, association, or any organization, you can request for a free community education presentation on any of the topics listed on page 6 of this newsletter by calling 814-452-6949, Ext. 105. The Community Educator or an Attorney will come to your place and conduct an on-site presentation to your group. Our community education program aims to make you become better informed and educated on civil legal matters so that you can become more effective as an advocate for yourself and for others.

Salvador A. Parco, Ph.D., Editor



People's Voice Page 3

Keeping Your Housing Benefits Safe  

By Barbara Mountjoy, Staff Attorney, Northwestern Legal Services, Franklin Office

For Mary, family is the most important thing in her life. She would never deny her brother, her son or her closest friends any help she could give, including letting them stay for a few days if they were homeless or allowing them to receive mail at her house until they could find a place to stay. She never had any trouble – until she got a letter telling her she was being evicted from her Public Housing unit because her adult son was arrested for selling drugs. He hadn’t even been living with her when he was arrested. When he got out of jail, the police wouldn’t release him unless he gave an address where he could receive court notices. He gave Mary’s.
   HUD regulations allow Public Housing Authorities to end assistance to families under the Certificate and Voucher programs if any family member has engaged in drug-related or violent criminal behavior. [24 C.F.R. Sect. 982.553 (1996)]. Amendments have given the Authorities the right to end subsidies or evict tenants if the drug-related activities take place either on or off the premises. [42 USCA Sect. 1437d(I)(5)].
   The agencies are very thorough at tracking down names and addresses in the newspaper police reports, court records and more, and they are not inclined to make exceptions or listen to excuses. If you have let someone stay with you who is picked up for drugs, they can evict you from your housing unit or terminate your Section 8 subsidies, even if they did not get arrested at your apartment or if they have not made a permanent residence there. Not only can you lose benefits at your current living situation, but you can be prohibited from receiving further subsidies in the future.
   However, courts have held that tenants cannot be punished with loss of subsidies or eviction if they did not consent to the illegal activity or had no way of knowing it was going to happen (Georgia); if they did not have direct knowledge of the illegal activity (Illinois); or for the mere existence of another relative arrested for drug dealing who did not live there (Florida). Pennsylvania cases also exist which hold that tenants with no knowledge of or responsibility for the illegal acts cannot be evicted.
   If you are in public housing or you have Section 8 subsidy and you are being evicted for the drug-related criminal activity of ANOTHER person, call Northwestern Legal Services at 452-6957 or 1-800-665-6957 for a determination of eligibility for free legal help.


Erie County SHOUT Outreach Program 
Takes to the Streets 

SHOUT  Outreach workers will take to the streets in high risk communities where they can target at-risk youth between the ages of 14-25, including drug users and those having unprotected sex. Their goal is to prevent and reduce the spread of HIV/AIDS in Erie County through risk-reduction education classes and prevention programs.
   Through grass-roots street outreach, SHOUT Outreach workers distribute free personal care items and give confidential HIV counseling and testing. Funded by the Pennsylvania Prevention Project, Northwest Pennsylvania Rural Aids Alliance, and Bureau of Drug and Alcohol Prevention, the project aims to reduce or eliminate barriers to behavioral change among its target audiences and work to change their environment.
   Substance abuse and HIV/AIDS professionals provide free and confidential counseling and testing by appointment at the following locations: Erie County Department of Health (814 -451-6700; 800-352-0026; and 814-663-3891 - Corry Office); Multicultural Health Education Delivery System (MHEDS) (814-453-6229); St. Paul’s Neighborhood Free Clinic (814-451-6716); and Hispanic American Council (814-455-0212). Gaudenzia/Crossroads (814- 459-4775) provides on-site and off-site testing by appointment.

 


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To be eligible for the Earned Income Credit, your total earned income in 2001 must be less than $32,121 if you have more than one qualifying child; less than $28,231 if you have one qualifying child, or less than $10,710 if you do not have a qualifying child.

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  Claim Your Earned Income Tax Credit

T  o be eligible for the Earned Income Credit, your total earned income in 2001 must be less than $32,121 if you have more than one qualifying child; less than $28,231 if you have one qualifying child; or less than $10,710 if you do not have a qualifying child.
  
A qualifying child is your own son or daughter, adopted child, grandchild, step child, or eligible foster child who, at the end of 2001 was less than 19 years of age or under age 24 if a student, or any age if permanently and totally disabled, who lived in your household for more than half of 2001 (or for all of 1002 if an eligible foster child).
   A foster child may be your brother or sister, stepbrother or stepsister; a child or adopted child of your brother, sister, stepbrother, or stepsister; or a child placed with you by an authorized placement agency.
   If you do not have a qualifying child, you must be 25-64 years old, you cannot be the dependent or a qualifying child of another person, and you must have lived in the U.S. more than half the year.
   To further qualify for the Earned Income Credit, you must have a valid social security number; your filing status cannot be “Married, filing separately;” you must be a U.S. citizen or resident alien all year; you cannot file form 2555 or Form 2555-EZ (relating to foreign earned income); your investment income must be $2,450 or less; and you must have earned income.
   Earned income includes all the income you get for working, even if it is not taxable. Taxable earned income includes wages, salaries, and tips; net earnings from self-employment; and gross income received as a statutory employee. Nontaxable earned income includes salary deferrals and reductions, meals and lodging, and excludable employer-provided benefits.
   File IRS Form 1040 and 1040A and IRS Schedule EIC.

Child and Dependent Care Credit:  Is It For You? 

You may be able to claim the Child and Dependent Care Credit if you pay someone to care for your dependent child who is under 13 or for your physically or mentally disabled spouse or dependent who is not able to care for himself or herself. They must be identified in the tax return by name and social security number. To qualify for the credit, which can be up to 30% of your expenses, you must pay these expenses so you can work or look for work.
  
To claim the credit, you (and your spouse if you are married) must have earned income during the year, you and your dependents must live in your home that you keep up, and you must identify all persons or organizations that you paid to provide care for your child or dependent. You must make payments for child and dependent care to someone you (or your spouse) cannot claim as a dependent.
   If you pay someone to come to your home and care for your dependent or spouse, you may be a household employer who has to pay employment taxes. You are not a household employer if the person who cares for your dependent or spouse does so at his or her home or place of business.
   You must file Form 1040 and Form 2441, or Form 1040A and IRS Schedule 2.


People's Voice  Page 5


Advanced EITC = Higher Take-Home Pay 

T o get part of your earned income credit now instead of waiting until after the end of the year, you must fill out a 2002 IRS Form W-5 (Earned Income Credit Advance Payment Certificate) and give the lower part of the form to your employer. If your spouse is also employed, separate W-5 forms should be filed with your respective employers. You will get part of the credit regularly in your paychecks. You will get the rest of any earned income credit you are entitled to when you file your 2002 tax return and claim the EIC. You must file Form 1040 or Form 1040A if you received advance payments.
   The Advanced EITC (Earned Income Tax Credit) is only available if you have a qualifying child (defined elsewhere on page 4) and you expect to earn less than the amount indicated in the 2002 Form W-5. In 2001 the earned income and modified AGI (adjusted gross income) amount was $28,281. If you change jobs, fill out another W-5 and give the new form to your new employer. If you have more than one
employer, give a Form W-5 to only one of them. Give your employer a new Form
W-5 each year you think you are eligible for the credit. However, you will have to pay back any advance payment you are not entitled to.
   You cannot claim the Advanced EITC if the federal income tax, social security tax, or Medicare tax are not withheld from your wages, or you are paid on a daily
basis as a farmer worker.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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The maximum child tax credit for each qualifying child in 2001 is $600. 

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Child Tax Credit Can Reduce Your Tax 

I you have dependent children, you are eligible for the federal Child Tax Credit (CTC), which can reduce your tax. The maximum child tax credit for each
qualifying child in 2001 is $600.00. The CTC can be combined with the Child and Dependent Care Credit.
   If your tax liability is zero, there is no tax to reduce with a Child Tax Credit. However, if you have three or more children and you claim the Earned Income Tax Credit, you may qualify for the Additional Child Tax Credit, which may give you a refund even if you do not owe any tax.
   You may want to arrange with your employer to have less income tax withheld from your pay if you know you will be eligible for the Child Tax Credit in the following year. If you want to decrease your withholding, you must fill out a new Form W-4.
   For the Child Tax Credit, the qualifying child you are claiming as a dependent must be your son or daughter, stepson or stepdaughter, adopted child, grandchild, or
eligible foster child who was under age 17 at the end of 2001, and a U.S. citizen or
resident alien. A kidnapped child is a qualifying child if the child is presumed to have been kidnapped by someone who is not a member of your family or the child’s family.
   The income eligibility for the Child Tax Credit is up to $75,000 if a single parent, $110,000 if married filing jointly, and $55,000 if married filing separately.
   You must file Form 1040 or Form 1040A and IRS Form 8812 to claim the Child Tax Credit. You must identify each qualifying child with a social security number.


People's Voice Page 7
Note:  Page6 is not displayed here (Pull Out Informational Sheet)


Incapacity:  Guardianship v. Power of Attorney 

By John P. Gagliotti, Staff Attorney, Northwestern Legal Services, Meadville Office 

The goal of Guardianship or Power of Attorney is to have a substitute decision maker appointed by the Court (in the case of a Guardianship) or pre-appointed by the incapacitated person him/herself while he/she still retains capacity (in the case of a Power of Attorney).
   A Power of Attorney may be a “general power” giving the appointed person broad powers to act on behalf of the incapacitated person, or may be limited in time and scope. For instance, if parents are placing their children in the care of the grandparents for a limited time while they are on vacation, a “limited” power of attorney can be executed so that the grandparents can act for the grandchildren until the parents return; or they can be limited to act for the persons only in certain areas. The person in whom the power of attorney is given is called an “attorney-in-fact,” the person giving the power is called the “maker.” The power of attorney can be over the “person” (i.e., the care of the person, such as his/her care or medical treatment) or it can be over the “estate” of the person (i.e., the income and assets of the person, in order to protect the property and/or pay the expenses). The maker of the power of attorney, so long as he/she is still competent, may revoke that power at any time. Once incapacitated, however, the ability to revoke the power is gone.
   If a person has become incapacitated and has not set up a power of attorney beforehand, or the attorney-in-fact is acting in a manner not in the best interest of the incapacitated person, then interested parties (most often, relatives) may petition the court for Guardianship of the incapacitated person. In guardianship proceedings, a person can be declared totally or partially incapacitated. There is a preference in the statute governing guardianship for a limited guardianship. Only that power which is absolutely necessary shall be transferred to the guardian, given the circumstances of the physical or mental health of the intended ward of the court. The court rules on whether the person is incapacitated, whether it is a long or short-term disability, and how much power the guardian will have. Medical evidence must be produced and the alleged incompetent must be present in court unless it can be shown that it would be harmful to himself or others to produce him in court.
   Procedurally, an emergency petition is brought before the court and if the evidence warrants an emergency order, the court will grant it. The petition and emergency order must be served on the alleged incompetent 20 days before the hearing is held. The alleged incompetent has the right to counsel. That order is generally limited in scope and in time. A hearing must be held for the full powers sought by the petitioner. The petitioner and proposed guardian are most often the same person, but need not be. If control, including the buying and selling, of real estate is to be a power sought by the guardian, then it must be specifically mentioned in the petition. The burden of proof to adjudicate one as incompetent is on the proposed guardian by “clear and convincing evidence”. If the guardian is seeking control of the assets or income of the person as well, then an estimate must be given of the alleged incapacitated person’s worth and a bond must be posted. The proposed guardian must be present in court and must testify as to his understanding of the alleged incapacitated person’s problems and an understanding of the duties he/she is to undertake.
   Once the person is no longer incapacitated, either by getting well enough to act on his/her own or by his/her death, then the guardianship is to be terminated.


IMPORTANT: ® Report landlords who use lockouts and utility shutoffs to the Bureau of Consumer Protection (814-871-4371) for enforcement action. Landlords will then have to enter into an Assurance of Voluntary Compliance and may be fined. . . .*The Department of Public Welfare has extended the deadline for submitting applications for the LIHEAP Cash Grant to March 6, 2002.


Page 8 People's Voice



Inside This Issue:

Get Your TAXBACK/Tax Forgiveness
In Case You Didn't Know...
Keep Your Housing Benefits Safe
Erie County SHOUT Outreach Program Takes to the Streets
Claim Your Earned Income Tax Credit
Child and Dependent Care Credits:  Is It For You?
Advanced EITC = Higher Take-Home Pay
Child Tax Credit Can Reduce Your Tax
Incapacity:  Guardianship vs. Power of Attorney
Employment Discrimination

 

 

 

People's Voice

 

A Publication of:
Northwestern Legal Services
Ste. 1200 Renaissance Centre
1001 State Street
Erie, Pennsylvania 16501-1822
(814) 452-6949 or 1-800-753-5704
New Clients Call: (814) 452-6957; or 1-800--665-6957
Visit Our Website:  www.nwls.org

 

Employment Discrimination

By Mary Jane Weed, Paralegal, Northwestern Legal Services, Erie Office


It is against the law for employers to discriminate based on a person’s race, color, sex, religion, national origin, age, or disability. It is also against the law for employers to tolerate discriminatory actions in the workplace.
   Incidents of harassment and discrimination which occur in the workplace should be reported immediately in order to address the issue and prevent future occurrences as well as to preserve legal rights. Most employers have internal complaint policies and procedures for employees to report improper conduct and for the employer to investigate and take action to resolve the issues.
   If the employer does not address the issues, or if the employer itself engages in unlawful acts, such as improper hiring or termination practices or unequal treatment in the workplace, employees may also file a complaint with the Pennsylvania Human Relations Commission (PHRC), Pittsburgh Regional Office, State Office Building, 300 Liberty Ave., Pittsburgh, PA 15222-1210 (412-565-5395) or the U.S. Equal Employment Opportunity Commission (EEOC), Pittsburgh Regional Office, 1000 Liberty Ave. #2038, Pittsburgh, PA 15227 (412-644-3444).
   By law, an employer is prohibited from intimidating or retaliating against an employee who files such a complaint with the government agency.
   For detailed information, access EEOC’s website: www.eeoc.gov or call EEOC toll free at 1-800-669-4000 or (TDD) 1-800-669-6820.

                            

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