Accessibility Tools

Image
Image

News

My parent is struggling to afford groceries and would like to know if they are eligible for food stamps or any other type of assistance program?

There are several food assistance programs that can help low-income individuals with their grocery costs. However, what is available to your parent will depend on their income level. Here is what you should know.

SNAP Benefits

The largest hunger safety net program in the U.S. is the Supplemental Nutrition Assistance Program (SNAP), formerly known as Food Stamps. Your state may use a different name for their version of SNAP. While there are millions of people who are eligible for SNAP, only approximately 40% or 4.8 million take advantage of this benefit.

For older adults to qualify for SNAP, their net income must be under 100% of the federal poverty guidelines. Households that have at least one person aged 60 and older, or who are disabled, must have a net monthly income less than $1,255 per month for an individual or $1,704 for a family of two. These amounts are higher in Alaska and Hawaii. Households receiving Temporary Assistance for Needy Families (TANF) or Supplemental Security Income (SSI) are also eligible.

Net income is calculated by subtracting allowable deductions from gross income. Allowable deductions include a standard monthly deduction, out-of-pocket medical expenses that exceed $35 per month, rent or mortgage payments, utility costs, taxes and other eligible expenses.

In addition to the net income requirement, some states also require that a senior’s assets be below $4,500, excluding home, personal property and retirement savings. In some instances, vehicles are also excluded although the rules vary by state. Most states, however, have much higher asset limits or they do not count assets at all when determining eligibility.

To apply for SNAP benefits, complete a state application form, which can be done by mail, by phone, or online, depending on your parent’s state of residence.

If eligible, your parent’s benefits will be provided on a plastic Electronic Benefits Transfer (EBT) card that is used like a debit card and accepted at most grocery stores. The average SNAP benefit for 60-and-older households is around $105 per month.

To learn more or apply, contact your local SNAP office by visiting fns.usda.gov/snap/state-directory or calling 800-221-5689.

Other Programs

In addition to SNAP, there are other food assistance programs that can help lower-income individuals like the Commodity Supplemental Food Program (CSFP) and the Senior Farmers’ Market Nutrition Program (SFMNP).

The CSFP is a program that provides supplemental food packages to those with income limits at or below the 150% poverty line. The SFMNP offers coupons that can be exchanged for fresh fruits and vegetables at farmers’ markets, roadside stands and community supported agriculture programs in select locations throughout the U.S. To be eligible, your parent’s income must be below the 185% poverty level. To learn more about these programs and find out if they are available in your parent’s area, visit fns.usda.gov/programs.

There are also many Feeding America member food banks that host grocery programs that provide free food boxes to older adults. Contact your local food bank to find out if a program is available nearby.

In addition to food assistance programs, there are also various financial assistance programs that may help your parent pay for medications, health care, utilities and more. To locate these programs, and learn how to apply for them, go to BenefitsCheckUp.org.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Senior” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

 

Published January 3, 2025

At any given time, the average American maintains between 30 and 80 online accounts. These may be with banks, financial institutions, utility companies, email providers, social media outlets, commercial shopping or travel sites and accounts unique to technology such as an account to purchase apps for a smartphone.

Modern estate plans should include an “ePlan” to manage online accounts and online data. There are four specific steps to creating an effective ePlan. These include compiling a list of each account along with an explanation of how each is used; developing a plan for storing electronic information; naming an executor to manage the accounts; and providing appropriate direction to your executor.

1. Compile a List of Accounts and How to Access Them

The first part of an effective ePlan is to gather information and to compile a list of your accounts together with information about the accounts. Your list should specify the username, password account number and a description of what is included in each account. Because passwords frequently change, you should be sure to keep this list up to date.

There are four major types of online accounts: personal, financial, business and social media. Examples of personal accounts include email accounts and those used in conjunction with photos, videos, music and apps for smartphones or tablets. The information associated with these accounts is typically backed up on a computer hard drive, a backup drive or cloud account.

Financial accounts might include savings and checking accounts, retirement accounts, utility accounts, and accounts related to travel and shopping. Increasingly, people are using electronic devices to bank online, including linking accounts for automatic payments, to manage retirement and investment accounts, and to shop online at sites such as Amazon, eBay, airlines and other companies. Online financial accounts also allow for the management of digital currency such as Bitcoin. In many cases, the estate executor will need the account holder’s username, password and account number to identify and access any online financial accounts and to ensure that they can be left to family.

Business related accounts could include intellectual property that is part of a website or blog, including written work, photos, videos and musical compositions and software. If you own business assets like these, be sure to discuss these specific assets with your attorney.

Examples of social media accounts are Facebook, Twitter and LinkedIn. These accounts may be valuable because they contain photos and comments that should be passed on to family. A good ePlan will instruct the executor how to dispose of these assets, such as whether the executor should copy the data from these accounts to share with family and whether to wind down and close these accounts. Social media companies have specific procedures for closing accounts of decedents.

2. Store and Protect Your Information

The second part of an effective ePlan is the development of a plan for storing information. This will involve saving the list that you compiled as well as backing up important data files and account information.

Because an ePlan account list contains sensitive information such as usernames and passwords, it is essential to maintain the security and confidentiality of this list. There are three basic options for securing an ePlan account list. First, this list could be handwritten and stored in a safe place. Second, it could be in electronic format such as a spreadsheet saved to a thumb drive. Extra security measures can be taken to password protect or encrypt the file or drive. Third, there are programs that manage, save and encrypt passwords. These programs allow people to connect multiple devices to a password management program and the program will keep the passwords up to date on each device. If you password protect a file, encrypt a drive or use a password management program, be sure to provide your executor or a loved one with the file password or encryption key or with access to one of your devices so your executor can access the password program.

For purposes of security, and in order to keep the list up to date, maintain a single list. Avoid saving the list on a computer in case of data loss or a data breach. Do not include this list in a will or living trust; these documents may become public. Save the list in a secure location such as in a locked, fireproof home safe or safety deposit box. Some states require that a safety deposit box cannot be opened after the owner passes away without the approval of the probate court. Ask your attorney if you live in one of these states. If you do, consider storing your list in a home safe.

There are several options for maintaining a backup of important electronic information such as pictures, videos, music and archived email. You can back up this information on your personal computer, in a cloud account or on an external backup drive, thumb drive or DVD, which can then be stored in a home safe or safety deposit box.

3. Select Your Digital Executor

After compiling a list and selecting a storage method, the third part of an ePlan will be the selection of a digital executor. Many states have passed laws that give access to online accounts to the executor of an estate. In some cases, however, state law may limit access if the executor does not have the password or an estate plan does not clearly grant powers to the executor to access these accounts. Accordingly, your estate plan should be explicit in the granting of authority with respect to online accounts, and the ePlan should provide the necessary passwords to the executor. Institutions that provide online account access may give the executor access upon a showing of appropriate authorization in the estate plan or, in some cases, may require an order from the probate court. For some accounts such as Bitcoin, the executor will need the password to access the account.

4. Provide Your Executor with "Digital Directions"

The fourth and final part of an ePlan includes a letter of instruction to the digital executor. This letter will tell the executor how to manage your online accounts and digital assets. It may also provide recommendations for the distribution of various accounts, assets, files and information to family. Information in personal accounts, such as photos and videos, can easily be duplicated. Accordingly, the letter may instruct the executor to produce copies of those files to share broadly with family. Assets in any financial accounts will be transferred to your chosen heirs according to your will, trust or beneficiary designation form, after which the financial institutions will close your accounts. A letter can also tell the executor how to manage social media accounts. Options for dealing with social media accounts include transferring account management to a loved one so that the account can remain active and serve as a memorial to the original account holder, or the account can simply be closed down.

Account Specific Information

Google, Facebook, Twitter, Apple and other companies have adopted policies to address the situation when an account holder has passed away. These policies may allow an account holder to designate a “Legacy Contact” to manage the account; require specific documentation before a deceased person’s account can be closed, such as a copy of a death certificate, court order, notarized letter or obituary; or automatically close an account after an extended period of inactivity, such as three to twelve months. These policies are subject to change, so a digital executor should familiarize themselves with the policies of each account provider and may need to act quickly to preserve important and sentimental information for family and loved ones.

Protect Your Digital Assets

Digital estate planning is a new and rapidly changing field. By incorporating an ePlan into your estate plan, you can ensure that your executor will take the right steps to preserve and protect these accounts and that valuable and sentimental data can be passed on to family and loved ones.

A new year provides an excellent opportunity to consider plans for charitable gifts in 2025. These gifts could include an IRA charitable rollover, a gift of cash or a gift of appreciated property.

1. IRA Charitable Rollover — The IRS refers to the IRA charitable rollover as a qualified charitable distribution (QCD). An individual over age 70½ is permitted to make a direct transfer from his or her IRA custodian to a qualified charity. The transfer is not included in taxable income. If the IRA owner is over age 73, the distribution may fulfill part or all of the IRA owner’s required minimum distribution (RMD).

Since many individuals have invested their IRAs in stocks, bonds or other securities, it may be necessary for the IRA custodian to exchange the IRA stock or bond account for a money market fund prior to the distribution. Most IRA custodians require a QCD to be paid from a money market account or similar fund. With equities markets at high levels, some individuals may choose to transfer funds from equities to a money market fund early in the year to prepare for their IRA charitable rollover. Talk with your IRA custodian to determine the next steps to make a QCD.

There are some limits for the IRA charitable rollover. The IRA owner must be at least age 70½ and the maximum transfer in 2025 is $108,000. The transfer must be to a qualified exempt charity and may be for a designated purpose or a field of interest fund. Transfers to donor advised funds or supporting organizations are not permitted. In addition, transfers may not be for a charity dinner or other event that involves a partial benefit to the donor. The entire QCD must be for a qualified charitable purpose.

2. Gifts of Cash — In 2025, individuals who itemize deductions may deduct charitable gifts of cash up to 60% of their contribution base, which is usually their adjusted gross income (AGI). While the 60% limit is substantial, some generous individuals give more and may carry forward the excess gift amounts and deduct them over the following five years. Some donors “bunch” their charitable gifts, meaning they itemize one year with the larger gifts and take the standard deduction the next year.

3. Gifts of Stock or Land — With substantial increases in value for both equities and real property, many donors find that a gift of appreciated property is attractive. A gift of appreciated stock or land provides two benefits for the donor. First, the donor may receive a charitable income tax deduction for the fair market value of the stock or land. Second, because the charity is tax-exempt, the donor can bypass tax on the capital gain. If a donor purchased stock eight years ago for $10 per share and it is now worth $50 per share, the donor would pay capital gains tax on $40 if he or she sold the stock. However, by giving the stock to charity, the donor may receive a charitable income tax deduction for the $50 in value and bypass the tax on the $40 of potential gain. Since the donor is receiving both the deduction and capital gain bypass benefits, this type of gift is permitted up to 30% of the donor’s AGI. Once again, if the gift value is over this limit, it may be carried forward for five years. For example, Mary has adjusted gross income of $100,000 this year and makes a gift of appreciated stock with fair market value of $40,000. She can deduct $30,000 this year and carry forward the remaining $10,000 charitable income tax deduction to the next year.

Editor’s Note: The first month of a year is a good time to make plans. In January, donors may wish to consider their options for charitable gifts in 2025.

The Internal Revenue Service (IRS) reminds taxpayers that the 2025 filing season is rapidly approaching. The IRS is attempting to provide improved taxpayer services. One of the primary ways for taxpayers to benefit is to sign up for an IRS Online Account.

There is an IRS Get Ready page on IRS.gov. It has many practical tips and resources for taxpayers.

  1. IRS Online Account — You may create an Online Account and enjoy multiple benefits. With the Online Account, you can review your most recent tax return and adjusted gross income. You can obtain an Identity Protection PIN or sign a power of attorney for your tax preparer. The Online Account allows you to select your language preference and to receive up to 200 various IRS electronic notices. You can review and cancel payments and set up a payment plan.
  2. Identity Protection Personal Identification Number (IP PIN) — An IP PIN is a six–digit number that protects you from having your identity stolen and prevents the filing of a federal tax return. This increases your personal and financial information safety. A new feature is that the IRS will accept a return with an already claimed dependent if you have a valid IP PIN. This will allow the IRS to accelerate the issuance of your tax refund.
  3. Quarterly Estimated Payments — Some taxpayers have non-wage income and must make estimated payments. There is a Tax Withholding Estimator on IRS.gov that may help you calculate the amount of your estimated payment. The last quarterly estimated payment for 2024 is due on January 15, 2025.
  4. 1099-K Reporting — If you received over $5,000 in payments for goods or services through an online marketplace, you can anticipate receiving IRS Form 1099-K in January 2025. While income from part-time work, side jobs or sale of goods and services is taxable, taxpayers who exceed the $5,000 limit may receive Form 1099-K. The IRS reminds taxpayers that they are taxable on all income even if they did not receive this form.
  5. Digital Asset Taxes — Many taxpayers own or trade Bitcoin or other digital assets. The income from virtual currencies, cryptocurrencies, stablecoins or non–fungible tokens (NFTs) must be reported. Taxpayers should keep records about the purchase, sale or exchange of digital assets. The 2024 federal tax return will ask taxpayers to answer “Yes” or “No” whether they have received a payment for services, sold, exchanged or otherwise disposed of a digital asset. If the taxpayer checks the "Yes" box, he or she must report all income related to the digital transaction.

The IRS often takes less than 21 days after it receives your tax return to issue a refund. An exception exists for returns that claim the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC). Returns claiming the EITC or ACTC are blocked from refunds until the middle of February.

You should gather your tax information and have a good record-keeping system. Your records generally are collected by the end of January. They could include Forms W-2, Forms 1099, Form 1099-K from third-party payment vendors, Form 1099-NEC for nonemployee compensation, Form 1099-MISC for miscellaneous income and Form 1099-INT for interest income.

Filing electronically and selecting direct deposit is both fast and safe. An estimated 70% of taxpayers will be qualified to use the complementary filing system that is called IRS Free File. All taxpayers can use the IRS Free File Fillable Forms. The IRS has added another 12 states where taxpayers with fairly simple tax returns can use the Direct File program. Older adults and military members also may benefit from the Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) programs.

 

Published December 27, 2024

FOLLOW US

vimeo logo

ADDRESS

Washington County
Community Foundation
Suite 100
1707 North Shelby Street
Salem, Indiana 47167

CONTACT

AccreditedCF Seal   Donate Now