Have Questions about the ABLE account and the IRS? See the IRS bulletin below.

IR-2018-139: Tax reform allows people with disabilities to put more money into ABLE accounts, expands eligibility for Saver’s Credit

Internal Revenue Service (IRS) sent this bulletin at 06/15/2018 11:05 AM EDT

IRS Newswire

June 15, 2018

Issue Number: IR-2018-139

Inside This Issue

Tax reform allows people with disabilities to put more money into ABLE accounts, expands eligibility for Saver’s Credit

WASHINGTON – People with disabilities can now put more money into their tax-favored Achieving a Better Life Experience (ABLE) accounts and may, for the first time, qualify for the Saver’s Credit for low- and moderate-income workers, according to the Internal Revenue Service.

The Tax Cuts and Jobs Act, the tax reform legislation enacted in December, made major changes to the tax law for 2018 and future years, including increasing the standard deduction, removing personal exemptions, increasing the Child Tax Credit, limiting or discontinuing certain deductions and changing tax rates and brackets.

The new law also enables eligible individuals with disabilities to put more money into their ABLE accounts, qualify for the Saver’s Credit in many cases and roll money from their 529 plans — also known as qualified tuition programs — into their ABLE accounts.

States can offer specially designed ABLE accounts to people who become disabled before age 26. Recognizing the special financial burdens faced by families raising children with disabilities, ABLE accounts are designed to enable people with disabilities and their families to save for and pay for disability-related expenses. Though contributions are not deductible, distributions, including earnings, are tax-free to the designated beneficiary if used to pay qualified disability expenses. These expenses can include housing, education, transportation, health, prevention and wellness, employment training and support, assistive technology and personal support services and other disability-related expenses.

Normally, contributions totaling up to the annual gift tax exclusion amount, currently $15,000, may be made to an ABLE account each year for an eligible person with a disability, known as a designated beneficiary. But, starting in 2018, if the beneficiary works, the beneficiary can also contribute part or all of what they make to their ABLE account.

This additional contribution is limited to the poverty line amount for a one-person household. For 2018, this amount is $12,140 in the continental U.S., $13,960 in Hawaii and $15,180 in Alaska. However, the designated beneficiary is not eligible to make this additional contribution if their employer contributes to a workplace retirement plan on their behalf.

In addition, starting in 2018, ABLE account beneficiaries can qualify for the Saver’s Credit based on contributions they make to their ABLE accounts. Up to $2,000 of these contributions qualify for this special credit designed to help low- and moderate-income workers. Claimed on Form 8880, Credit for Qualified Retirement Savings Contributions, this credit can reduce the amount of tax a person owes or increase their refund. Like other IRS tax forms, Form 8880 will be revised later this year to reflect changes made by the new law.

In addition, some funds now may be rolled into an ABLE account from the designated beneficiary’s own 529 plan or from the 529 plan of certain family members.

Like other workers, ABLE account beneficiaries and other people with disabilities should make sure they are having the right amount of income tax withheld from their pay. Because of the far-reaching tax changes taking effect this year, the IRS urges all employees to perform a paycheck checkup now. Doing so now will help avoid an unexpected year-end tax bill and possibly a penalty. The easiest way to do that is to use the fully-accessible Withholding Calculator, available on IRS.gov.

For more information about ABLE accounts and the tax reform changes, visit IRS.gov/taxreform.

Don’t Let The 8.5% Cap on Special Ed Continue

In 2016, after the publication of a series of investigative articles by Brian M. Rosenthal in the Houston Chronicle, many parents with children in Texas public schools obtained confirmation of one of their worst fears – their children were missing out on education opportunities that could enrich their children’s lives. It may not sound like much to a parent with a typical child who can catch up on academics with a tutor, but for parents with children who require special education services and accommodations, catching up can feel impossible.

The U. S. Department of Education conducted their own investigation which concluded that Texas Education Agency (TEA) led schoold districts to delay or deny special education services to students by instituting an arbirtrary cap for enrollment of services at 8.5%.

Now, the TEA owes the public school children in Texas a proper education and the TEA is asking for your help. We have until April 18th to offer comments on the draft of the the strategic plan to get our schools in line with rest of the country with regards to special education.

Click on the link below to read more information on the draft and to offer your comments.

https://tea.texas.gov/About_TEA/News_and_Multimedia/Press_Releases/2018/TEA_accepting_comments_on_draft_strategic_plan_for_special_education_through_April_18/

15 Year Anniversary for Filis Law Firm

In July 2002, I sat for the Texas Bar exam. Thankfully I had my friend Mary K. to make the 3 days of testing tolerable. Then, after many months of waiting, we finally received our results. Many people do not know this, but all the Texas law school graduates who take the Bar find out if they passed the Bar all at the same time. The Texas State Bar Examiners post the pass list online. I was thankfully on the list and within a couple of months, I formed The Filis Law Firm, PC.

Over the years I have enjoyed the flexibility of having a general civil practice. In the middle of 2008, I entered into the world of Oil and Gas. We are in Texas so it makes perfect sense to work in energy in some capacity. I enjoyed oil and gas title work, but my son who inspired me to explore a different path in my career. With his diagnosis of Autism Spectrum Disorder, our lives changed – not better or worse, just different. Since then, Filis Law Firm has provided me with the ability to share what I have learned over the years and help protect the legal rights of children with special needs and their family members.

Fifteen years of Filis Law Firm, and many more years to come.

Advising Families With Children With Special Needs — Filis Law Firm
5600 NW Central Drive, Suite 202
Houston, TX 77092

CHIP Health Plan for Working Families

Do you earn too much money to be eligible for Medicaid, but not enough money to pay for private health insurance for your kids? Based on certain income requirements, kids and pregnant women may be qualified for the Children’s Health Insurance Program (“CHIP”). Currently, there are approximately 400,00 Texas kids and pregnant women enrolled in CHIP. Health care services in Texas include prescriptions and post-partum care.

CHIP was created in 1997. Texas adopted the program a couple of years later and since then, over one million children have been enrolled in the health insurance plan and able to obtain proper medical treatment. For a child to be eligible for CHIP, a family of two can earn income up to 200% of the federal poverty level, around $32,000 a year or $2,666 a month. According to a July 2017 article in the Business Insider, the average monthly rent for a 2-bedroom apartment in Houston, Texas is $1,088. After paying rent, there is not much money to cover food, clothing, utilities and transportation, much less private health insurance premiums. CHIP is crucial for low-income working-class families.

On September 30, 2017, Congress failed to renew the authorization for CHIP funding. There is limited hope that six months worth of federal CHIP funding may be authorized prior to the holiday break, however, this would cover October 2017 through March 2018. If Congress fails to authorize temporary funding, states will fund CHIP without their federal partner. According to recent reports, Texas only has funds to keep CHIP active until February 2018 in the event the federal government chooses to discontinue the program.

Have an ARD Meeting Soon? Be Prepared.

In the next week weeks, many parents of children who receive special education services under the federal IDEA Act will be invited to their child’s public school to attend an Admission, Review and Dismissal (“ARD”) meeting.

At this meeting, the ARD team will review the current Individualized Education Program (“IEP”) for the student and propose recommendations for the child’s education plan –

To ensure that all children with disabilities have available to them a free appropriate public education that emphasizes special education and related services designed to meet their unique needs and prepare them for further education, employment, and independent living. – IDEA (§300.1)

At the ARD meeting, parents can agree or disagree with some or all of the proposals. If there is a disagreement with the proposed IEP, the ARD team can take a recess, negotiate terms, and reconvene (in ten days typically).

Preparing for such a meeting can be stressful for parents based on fear and anxiety for possibly failing your child by not protecting their rights or not demanding proper education services.

Parents who are engaged with the IEP process can find success by reading up on the following:

school records (including daily reports),
assessments from school and private sources (and knowing which new assessments should be requested), and
education laws.

U.S. Supreme Court provides guidance in the recent Endrew F. case that a student offered an educational program providing “merely more than de minimis” progress from year to year can hardly be said to have been offered an education at all, setting the floor for the application of the holding in the Rowley case that the school must confer an IEP reasonably calculated to enable the child to make progress appropriate in light of the child’s circumstances.

At the ARD meeting, show up with your questions and notes and if you are considering agreeing to a new service or the removal of a service that you are not comfortable with but are willing to try out the situation temporarily, agree to try it out and have a follow-up meeting in a month to re-assess the situation. Under IDEA, the ARD meeting can occur annually or a often as needed allowing a parent to request a meeting in writing.

Take your time at the ARD, listen to suggestions, and stay on track with your goals for the meeting.

Have an Upcoming ARD?

Fall semester school obligations have begun. Parents of students in general ed have probably had their 15 minute one-on-one meeting with the teacher. For the rest of us, we are preparing for upcoming ARD meetings. ARD stands for Admission, Review and Dismissal. For my son, I am at the review stage of the ARD process. We have an individualized education program (“IEP”) in place from the last school year. The IEP is a contract and all the services described in the IEP must be provided by the school district.

In my situation, at the next ARD meeting, there will be a review of the prior IEP terms and suggested revisions based on my son’s new education needs. One example of what will probably be discussed is the reduction of support. Some members of the ARD committee have informally signaled to me that they will be requesting less paraprofessional in-class support time for my son during his inclusion in his general education classes. When I first heard of this potential change, I was frightened.

Parents involved in the ARD process may suffer an emotional toll. In my situation, I have a concern that once I agree to reduce in-class support, my son may never get the support back when he really needs it. In contrast, I do want my son to gain independence and have an opportunity to blossom without the support of a SpEd professional. Will my decision short-change my son’s educational experience? To make an informed decision, pre-ARD actions need to be taken. I will review my son’s daily reports, his classwork and homework grades, and interview the special ed professionals that observe him in the general ed classroom.

As my son’s advocate, preparation for the ARD meeting is time-consuming and sometimes frustrating. To assist with organization aspect of the preparation, I will update my IEP binder with daily reports, progress reports, copies of communications with the school, therapist and doctor reports, and previous IEPs. For those of you who are preparing an IEP binder, if you discover that you are missing school records, give your school a written request for the records, as you are allowed under Family Educational Rights and Privacy Act (“FERPA”). The IEP binder will help you decide on IEP goals and provide you with evidence to support your arguments during the ARD meeting, if needed.

Being a present and contributing member of the ARD team can be hard work, but your child will need your involvement to get the most out of his or her public school experience.

Tired of Being Denied Government Services – Sign Your Child Up For Medicaid Waiver Programs

Texas Department of Aging and Disabilities (“DADS”) was the agency that, for many years, parents with children with disabilities reached out to for government assistance of support and services. Texas programs were administered by DADS until its abolition on September 1, 2017.

The Texas Health and Human Services Commission (“HHS”) is now charged with protecting vulnerable Texans. HHS administers programs formally serviced by DADS, including:

Community Living Assistance and Support Services (“CLASS“)

Deaf Blind with Multiple Disabilities (“DBMD“)

Home and Community-based Services (“HCS“)

Medically Dependent Children’s Program (“MDCP“)

A common complaint I hear from parents who are in search of help from the government is that their family fails to qualify for support due to household income. Although income is not necessarily a factor for eligibility for benefits from these Medicaid Waiver programs, waiting on an interest list for can take years.

As of July 31, 2017, tens of thousand of Texans are on interest lists. HCS has 86,989 people on its interest list, CLASS has 61,926 people on its interest list, and MDPC has 18,867 people on its interest lists. Parents should contact HHS and their local benefits provider, such as the Harris Center, to begin the application process.

https://hhs.texas.gov/about-hhs/records-statistics/interest-list-reduction

More Children in Need, Less Resources?

Although the Center for Disease Control issued their assessment in 2014 that 1 in 68 school-aged children are on the Autism spectrum, federal funding for the care of these Americans is in jeopardy. A person diagnosed with Autism Spectrum Disorder, or diagnosed with any of the many other related conditions may qualify to receive disability-related Medicaid benefits.

Analysis from Avalere predicts that Medicaid, which provides supports and services to disabled children and adults, could see a reduction funding of up to $215 billion should the Graham-Cassidy bill be passed.

Three Republican senators and all Democratic senators vowed to vote against the latest attempt to repeal and replace the ACA, stalling the vote. The effort to change healthcare laws is not over. Parents and advocates of children and adults with special needs must get educated and involved in the healthcare debate. The Affordable Care Act has many problems that need to be addressed, but if you or a loved one is the recipient of Medicaid benefits, speak out to block a disaster and offer a solution.

Temporary Extension of Medicaid for Certain IDD Waiver Program Recipients

Parents of Children with Special Needs –

Once your child with special needs comes off a Medicaid Waiver Program list, or becomes eligible for SSI on his or her own, it is of great importance to keep your child’s eligibility for benefits. If SSI is denied or lost, so is Medicaid.

Under certain circumstances, a SSI and Medicaid recipient who loses such benefits may be allowed to temporarily continue to be Medicaid eligible.

To review eligibility terms, click

HHC Texas Information Letter

and

https://www.yourtexasbenefits.com/Learn/Home

Where Are Our Special Education Teachers?

I recently visited a popular job posting site and conducted a search for Special Education Teacher jobs in Houston, Texas. The results were amazing – 221 jobs in Houston waiting to be filled. Why so many? Has the general population not realized the growing need for qualified people to care for our children? Are our SpEd teachers burnt out from the extreme demands placed on them and have moved on? As I prepare to send my son back to school next week, I am relieved to know that his SpEd teacher is still at our school, but what about other schools in Texas?

In December 2015, the No Child Left Behind Act (2002) was replaced with the Every Student Succeeds Act (“ESSA”) with goals set to ensure students not only graduate from high school, but also attend college. In order for this federal Act to succeed, states are encouraged to be innovative accountable for results. According to their website, the Texas Education Agency (“TEA”) will attempt to fully implement ESSA by focusing on four goals: (i) improving our low-performing schools; (ii) tying high school success to a future with college and a career; (iii) getting back to basic reading and math; and most importantly (iv) “recruiting, supporting and retaining teachers and principals.”

As a parent of a child with special needs, your voice should be heard during this planning process. Provide feedback on the key policy decisions concerning your child’s education. We need keep our SpEd teachers from leaving their professions by paying these teachers proper compensation for all that they do every day with our kids. We need to attract additional skilled professionals and paraprofessionals.

ACT NOW – The Texas Education Agency is now accepting comments on the ESSA State Plan until August 29^th.

IR-2018-139: Tax reform allows people with disabilities to put more money into ABLE accounts, expands eligibility for Saver’s Credit

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Issue Number: IR-2018-139

Inside This Issue