When you think of government benefits, you probably think of food stamps and housing vouchers. And while those are important programs that help many people get by, there are much stranger and more surprising benefits out there.
If you’re struggling to make ends meet, the idea of applying for government assistance can seem like a scary proposition. After all, why would they help you if you can’t even afford to feed yourself? The answer is that they want to help your community as a whole thrive: financially, educationally, and in every other way possible. However, getting these benefits isn’t always easy.
Depending on where you live or your specific circumstances, some benefits require long and arduous processes with lots of red tapes. Other programs only accept applications at certain times of the year or may have very specific criteria that disqualify most people from applying in the first place. However, with the right information, navigating these hoops becomes much easier. With that in mind, here is a list of 5 government benefits you may not know about:
Food Benefits
There are many food benefits that are available to low-income families. Some are subsidized by the government, while others are provided by your state’s department of health. Most food assistance programs work through Electronic Benefits Transfer (EBT). This is basically a debit card that you use to purchase food at participating stores.
It’s a great way to get food quickly and easily, but it can be a bit of a trap: don’t misuse it, or your card could be taken away. Eligibility for food assistance programs varies by state. For instance, many states use a standard of 130% of the federal poverty level (FPL) to determine eligibility for SNAP (Supplemental Nutrition Assistance Program, which is used for food stamps).
If your state uses a different standard, consult its website to see if you qualify. While food assistance is obviously helpful for those who need it, it can also be good for the economy as a whole. According to the Center for American Progress, SNAP contributed $1.95 billion to the economy in 2015 alone. Not bad for a program that only costs $72 billion.
Health Care Benefits
The Affordable Care Act (ACA) provides subsidies for low- and middle-income families who do not have access to health care through an employer. These subsidies are known as Advance Premium Tax Credits (APTC). Those who qualify can receive the funds in advance, and then you repay the full amount when you file your taxes.
If you qualify, but you don’t file your taxes, the government can take the money out of your Social Security benefits. This is why it’s important to file taxes even if you don’t make much money. However, there’s a catch: in order to be eligible for these subsidies, you must purchase your health insurance through a healthcare marketplace.
But you’re not the only one who can get the subsidies: any dependent child who is under 26 years old can also receive them. If you’re outside of the marketplace, or you don’t qualify for the APTC, you can still receive health care coverage under the Children’s Health Insurance Program (CHIP). This program is available for low-income families that fall outside of marketplace guidelines. It also covers any children who are eligible for Medicaid.
Housing Help
HUD has many housing assistance programs for low-income families. The most well-known of these is section 8 vouchers. This is when the government gives you a voucher that you can use to pay for a rent-controlled apartment in the private market. It isn’t enough to cover a mortgage, but it is a great way to keep you in your home while helping the government spend less.
Many of these programs have waiting lists that are years long, so if you’re interested in them, start saving now. Most programs require you to work with a HUD-approved housing counselor to navigate the red tape and make sure you get the right assistance for your needs. These programs help millions of people every year and are administered at the state level.
It’s best to contact your state’s housing authority and see what assistance is available to you. Many programs require household income to be less than 80% of the state’s median income. Others have strict requirements based on your family size and where you live.
Education Benefits
If you’re a low-income student who wants to go to college and you have good grades, you may qualify for Pell grants. These grants are given out by the government and can be used at any accredited college or university.
If you’re interested in Pell grants, it’s best to start applying early: the application is due at the beginning of the calendar year, meaning you can’t apply until January. For these grants, you need to fill out the Free Application for Federal Student Aid (FAFSA). Since the application period is so long, the best time to start is in October.
You can also apply for Federal Supplemental Educational Opportunity Grants (FSEOGs). These are smaller grants that don’t require you to fill out the FAFSA. They’re great if you are just starting out and don’t have very high grades.
Tax Breaks and Child Care Credits
Many low-income families qualify for childcare tax credits and tax breaks. These are great because they reduce your taxable income and save you money after all is said and done. There are two child care credits available: the child and dependent care credit and the child and dependent care flexible spending account.
The first one works like this: you spend money on child care, but you don’t get a dollar-for-dollar reduction in your taxes. The second option lets you decide how much you want to spend on child care and then reduces that amount from your taxes.
The child and dependent care flexible spending account also let you decide how much you’re going to spend. The difference here is that you can use this money to pay for child care for yourself or your spouse.
In Summary
Government benefits may seem difficult to obtain, but once you figure out what you need to do, it can be a very rewarding experience. The benefits listed above are just the tip of the iceberg when it comes to government assistance.
There are programs out there for almost everyone, from child care to housing assistance to college tuition assistance. All you need to do is find out what’s out there and apply.
