Finances:  Other Financial Concerns

SOCIAL SECURITY
Social Security provides retirement income and disability income to you and/or your spouse if either of you were employed and contributing to the Social Security Fund. The Social Security Administration publishes a series of brochures that can help answer your questions. If you have been in the workforce, you may also request an estimate of your Social Security benefits at retirement age. A woman who divorces after at least 10 years of marriage is entitled to one half of the Social Security benefit her ex-husband will receive. The woman becomes eligible upon reaching age 62 (reduced benefit) or 65 (full benefit) and if the man is at least 62, regardless of whether or not he has retired. For more information, call the Social Security's nationwide toll-free number: 1-800-772-1213.

INDIVIDUAL RETIREMENT ACCOUNTS
IRAs are retirement accounts generally used by people who do not have pension plans through their employment. Self-employed individuals can set up a KEOGH or IRA-SEP account. These kinds of accounts are available at banks and other financial institutions. 

CHILD CARE AND DEPENDENT CARE TAX CREDITS
Both state and federal income tax forms allow you to get credit for part of your child care costs while employed or looking for work. Expenses to care for an adult dependent (spouse, parent, adult child) are also eligible. 

For information call: 
Minnesota Department of Revenue: 
(651) 296-3781 or 1-800-652-9094 

Federal Internal Revenue Service:
1-800-829-1040 

DEPENDENT CARE AND MEDICAL EXPENSE ACCOUNTS
Some companies allow employees to pay their child care or dependent adult care expenses, and/or their out-of-pocket medical expenses with "pre-tax" dollars, which can reduce the amount of annual income taxes paid by their employees. 

CHILD CARE ASSISTANCE
If you are working or going to school, you may be able to get help paying your child care costs. Contact your county's social service office and ask about the child care Basic Sliding Fee program. Also, beginning July 1, 1998, parents of infants (less than one year old) who qualify for the Basic Sliding Fee Program may be able to receive a subsidy to stay home with their own child. Ask your county's social service agency about the At-Home-Infant-Care Program. 

WORKING FAMILY TAX CREDIT AND THE EARNED INCOME TAX CREDIT
Some low income working families can receive a larger state income tax refund by claiming a Working Family Credit. On federal income taxes, they can claim the Earned Income Tax Credit. Since this credit is refundable, even families who do not have to pay any taxes should file tax forms to get this money back. 

TAX RESOURCES
For information call:

* Minnesota Department of Revenue,
(651) 296-3781 or toll free 1-800-937-5437 

* Internal Revenue Service
1-800-829-1040. 

For help in filling out tax forms, call:
(651) 297-3725 or toll-free 1-800-652-9094 

    This brochure is designed to provide general information on these topics.  It is not intended to provide legal advice on personal credit, pension and insurance matters.  For questions regarding individual finances, contact an accountant or attorney. 

Last Updated: Wednesday, 23-Aug-2006 15:25:59 CDT (mmp)