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Individual Benefits in the ARRA
The ARRA provides benefits not only to states, but also directly to individuals and families. Below is a summary of the individual benefits contained in the bill, with resources included on how and where to apply.
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Unemployment: The ARRA kept the extended 33-week unemployment compensation period in place, suspended income tax on the first $2,400 of unemployment benefits, and increased benefits for everyone receiving unemployment by $25 per week. It is possible for the state to access hundreds of millions of dollars in additional unemployment support from the federal government.
How to Access: In Texas, citizens may file a claim over the internet at http://www.twc.state.tx.us/ui/uiclaim.html.
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COBRA: A 65 percent subsidy on COBRA continuation premiums will be offered for up to nine months to those who qualify. The subsidy is available to individuals if they become eligible for COBRA at any time between September 1, 2008 and December 31, 2009.
How to Access: Individuals must work with the plan administrators to opt-in to COBRA coverage. The US Department of Labor has posted model forms (http://www.dol.gov/ebsa/COBRAmodelnotice.html) to aid in the process in the wake of the new ARRA provision. Under the new rules, individuals pay only 35 percent of their premiums for the indicated time period, with the rest being paid by the former employers, who will then be reimbursed for the full amount through a tax write-off.
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Hiring Incentives: Businesses may claim a partial tax credit on the salary of a new hire if that person is a disconnected youth or an unemployed veteran.
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Food Stamps: Individuals who receive benefits under the Supplemental Nutrition Assistance Program will see a 13.6 percent increase in the amount they receive each month starting on April 1. It is estimated that an extra $1.43 billion will be dispersed to Texans.
How to Access: No action need be taken to access these increased benefits. Texans can apply for food stamps at www.yourtexasbenefits.com or by contacting the administrators in your area. Visit www.211texas.org for more information.
Temporary Assistance for Needy Families (TANF): Supplemental block grant funds allocated to Texas for TANF total $52.7 billion. It is possible that the state could access additional funds for TANF. It has yet to be decided if and how those funds will benefit TANF recipients.
How to Access: To find out about how to get TANF benefits, visit www.211texas.org and search for the contacts in your area, or visit www.yourtexasbenefits.com to apply for the program.
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"Making Work Pay" Tax Credits: Over $116 billion of the ARRA will be spent on President Obama's signature "Making Work Pay" tax credits. The provision will provide a refundable tax credit of up to $400 for working individuals and $800 for married taxpayers filing joint returns.
How to Access: For people who receive a paycheck and are subject to withholding, the credit will typically be handled by their employers through automated withholding changes beginning in March or April. Taxpayers who do not have taxes withheld by an employer during the year can also claim the credit on their 2009 tax return.
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Work-Study Program: Work-study programs at postsecondary across the country will receive $200 million that will end up being passed on to students who qualify and participate. Approximately 3,400 institutions currently participate in the federal program.
How to Access: Students must apply for federal assistance via the Free Application for Federal Student Aid (FAFSA). To apply, visit www.fafsa.ed.gov.
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Pell Grants: The federal Pell Grant program will be increased by more than $15 billion, with a $500 increase in the maximum award. Texas students will see an estimated $186.6 million in extra grants.
How to Access: Students must apply for federal assistance via the Free Application for Federal Student Aid (FAFSA). To apply, visit www.fafsa.ed.gov.
