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It sounds terribly well intentioned but tremendously poorly managed, Smith Howard said. She said the system raises questions about what safeguards are in place to prevent exploitation of a vulnerable population particularly if some parents did not know whether their children were considered employees or volunteers for the work they did. The problem is, whether you call it a stipend or anything else, money these kids theoretically earned is impacting their public benefits and is attached to their individual names, Smith Howard said. Rock Terrace parent Deborah Albert said she learned money was being deposited into her daughter's account after Social Security started reducing her daughters disability checks. The government had considered money her daughter, 21, received at Rock Terrace as income. I gave [the school] permission to open the account so she can learn about how to deal with the bank, said Albert, whose daughter graduated from Rock Terrace in June. I didnt expect them to put any kind of money into the bank account. People who are disabled are allowed up to $85 a month in assets before the Social Security Administration starts reducing certain benefits, said Meghan Marsh, communications supervisor at the Maryland Disability Law Center. The money in student accounts could also jeopardize a familys application for Medicaid, food stamps, public housing or other programs based on family income. Parents and students could also be responsible for back taxes on the money, said Cindy Hockenberry of the National Association of Tax Professionals. They can call it whatever they want, but if theyre requiring services to be performed to get this money ... by nature that is considered compensation and taxable, Hockenberry said. The Educational Systems Federal Credit Union found about two dozen accounts tied to the school over the last decade, said Chris Conway, president and chief executive of the credit union. Last year, the credit union merged with the financially distressed Montgomery County Teachers Federal Credit Union, where student accounts were first opened. Most of the Rock Terrace accounts involve small amounts of cash, and there doesnt appear to be any suspicious activity, Conway said. Red flags would include large or frequent withdrawals or deposits of cash, he said. Tamara Clark learned about money her son received from the school system after he came home with a W-2 in his backpack and her family was almost rejected for food stamps. April and May bank statements for Clarks son show withdrawals ranging from $25 to $200. And a check from the school system for almost $800 was made out to Clark after she started asking the principal questions about the money and the account. Her son performed a variety of jobs through the school and at local department stores, but she thought it was all volunteer work. Clark said her son, who has autism, received about $2,000, based on the financial documents she has reviewed. But Clarks investigation is not complete. She still wonders where the money went and how it will continue to affect her family or her sons public benefits. I dont know what is going to happen to me next, Clark said. I just dont know what all the legalities are and where we fall.
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