SHEEPSHEAD BAY'S ONLY INDEPENDENT NEWS BLOG

Sending your parents to jail as they approach decrepitude in lieu of a nursing home is one way to ensure they will get the care they need. I keed, I keed… Source: Wikipedia

Telling Tips is a series of articles from local experts to help you save money, make better decisions and plan for a better future.

We are such a mobile society that many only see their parents infrequently and, usually, during this holiday month. Your folks are getting a little older every day, and there may be some changes in their ability to do various things. Pay attention to some telltale signs including:

• Weight loss
• Less attention to personal hygiene
• Dirty or messy home
• Change in behavior — louder or quieter than usual, paranoia or agitation
• Remarks from their friends or other relatives
• Desire for isolation
• Not attending activities or usual social events
• Unopened mail, paying bills twice
• Unusual purchases

What can you do? Take them for a medical exam, including a physical and neurological visit. Check with their doctor to see if he can arrange for a home health aide through Medicare, Medicaid, the Veteran’s Administration, or others to visit regularly, or possibly a day care facility, or a money manager. A local family member, including grandchildren, might be able to visit a couple times a week. A frequent phone call during those other days can help. Some hospitals and schools have volunteer programs for their degrees.

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Source: Jhawk/Flickr

Telling Tips is a series of articles from local experts to help you save money, make better decisions and plan for a better future.

Happy Holidays to our seniors. Here are a few of the benefits that the re-election of Obama has made possible for you:

The ‘Donut Hole’ is Being Eliminated: Seniors are responsible for a co-pay of their prescription drugs as well as for 100 percent of these medicines until they have paid an amount, known as the ‘gap,’ or ‘donut hole.’ This gap was projected to be $6,000 by the year 2020. Now, it will be totally eliminated by 2020. In 2010, Medicare recipients who hit the donut hole received a $250 rebate. In 2011, recipients received a 50 percent discount on covered brand-name drugs, as well as a discount on generic drugs. (In New York for 2012, 126,907 seniors are projected to save an average of $663.)

Annual Wellness Visits are Now Free: There are no deductibles or co-payments for essential preventive care such as screenings for pelvic exams, pap smears, or diabetes or prostate cancer.

Hospital Stay Policy: Many times a patient will pick up a condition they did not have before being admitted to the hospital. The new policy will reduce payments to hospitals that are in the bottom 25 percent of patients contracting new health conditions after being admitted.

‘Readmissions Reduction Program’: If a patient is readmitted for the same or similar condition shortly after being discharged, the hospital will have a ‘payment adjustment’ from Medicare.

Purchase of Durable Medical Aids: The cost is reduced significantly by allowing competitive bidding for the purchase of items such as wheelchairs, oxygen tanks, and nebulizers.

Support for Women: As of the policy renewal date on or after August 1, 2012, women will receive free preventive care for: wellness visits; gestational diabetes screening; ‘domestic and interpersonal’ violence screening and counseling; contraceptives as well as contraceptive education and counseling; breastfeeding support, supplies and counseling; HPV DNA testing (over age 29); sexually transmitted infections counseling; HIV screening and counseling; as well as mammograms, cholesterol screenings, and flu shots. (More info at www.healthcare.gov/prevention.)

Nursing Home Short-Term Medicare Coverage Progress Not Required: If a Medicare-covered patient has a chronic condition like Alzheimer’s, Parkinson’s, ALS, diabetes, multiple sclerosis, hypertension, arthritis, heart disease, or stroke, Medicare coverage will continue, even if no improvement is shown. The coverage is still limited to 100 days, and only if skilled nursing care is required, but improvement is no longer a part of the equation.

‘Extra Help’ Program: This is estimated to be worth about $4,000 a year. The program requires the person to be receiving Medicare, enrolled in a Medicare prescription drug plan, have Medicare Part A and/or Part B, no more than $26,120 in savings, investments, and real estate if living with a spouse, $13,070 if not married or not living with spouse.

Personal homes, vehicles, personal possessions, life insurance, or burial plots are not counted towards that amount.

Protection of Patients who are Gay, etc.: Hospitals (including the V.A.) are mandated to grant visitation rights to gay men and lesbians. In addition, medical decisions for partners will be easier to make.

Medicare Prescription Drug Premium: There will be no increase in the Medicare prescription drug premium for the third straight year, which is about $30 a month.

Community Health Centers: These centers provide comprehensive and quality primary health care to communities which are medically underserved. Their plan is provide support services like education, translation, and transportation to promote access to health care. These services are available to the entire community, with fees adjusted based upon the ability to pay. Of the $128.6 million in new grants, L’Refuah Medical and Rehabilitation Center, the only one in Brooklyn, received $650,000.

Congress is now trying to figure out how to pay for this. Any thoughts?

Tax Tip: CP-2000 for Individuals and Businesses: Although there have been a number of CP-2000 notices telling taxpayers that some information reported to the IRS is not shown on their 2011 tax returns, many more are scheduled to be sent out this month. Last year, the IRS sent about 4.7 million notices, of which about half were not correct. In addition to notices to individuals, this year many businesses will receive letters because their credit card sales are less than their reported gross sales. (Want more tax tips. Sign up at www.TaxHelp1040.com.)

Joseph Reisman, of Joseph S. Reisman & Associates, has been serving tax prep and business accounting expertise from his Coney Island Avenue office for more than 25 years. Check out the firm’s website.

Source: alancleaver_2000/Flickr

Telling Tips is a series of articles from local experts to help you save money, make better decisions and plan for a better future.

I’ve compiled a few tax planning tips and strategies, as well as a few fun things, for you to think about as we enter December – and your year-end tax planning season.

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Source: charlesfettinger / Flickr

May your stuffing be tasty

May your turkey plump,

May your potatoes and gravy

Have never a lump.

May your yams be delicious

And your pies take the prize,

And may your Thanksgiving dinner

Stay off your thighs!

HAPPY THANKSGIVING TO ALL

Telling Tips is a series of articles from local experts to help you save money, make better decisions and plan for a better future.

Obamacare will affect everybody. The big winners are the 37 million Americans who don’t have insurance. In addition, it will add to the Medicaid numbers, and will also allow “affordable” care through the new government “exchange” for those who are unemployed, self-employed, and independent contractors who don’t qualify for Medicare or Medicaid. Many of you have already seen your premiums increase by more than 10 percent. In the end, it’s going to be very expensive in dollars and care for all.  Free is never cheap.

A 2010 Review (These are only a few of the enactments):

• Lifetime limit on coverage is prohibited; various insurance policies could not be rescinded; health coverage is provided for those with pre-existing conditions through a national high-risk pool.
• Non-dependent children up to age 26 are covered.
• Indoor tanning salons hit with a 10 percent tax.
• Medicare Part D enrollees who hit the “donut hole” receive a $250 rebate.

A 2011 Review (These are only a few of the enactments):

• A 50 percent discount on brand name prescriptions filled in Part D coverage gap is mandated upon pharmaceutical manufacturers.
• Medicare Advantage payments are frozen.
• The penalty for withdrawals from Health Savings Accounts prior to age 65 not used for qualified medical expenses increased from 10 to 20 percent.
• Various medical items, such as over-the-counter remedies, are not allowed to be purchased with HSAs or FSAs.
• Manufacturers and importers of branded drugs pay a fee based upon their company’s share of the total market.

A 2012 Review:

• Federal benchmark payments to Medicare Advantage plans, which cover about 20 percent of seniors, are reduced.

A 2013 Review (These are only a few of the enactments):

• The health Flexible Spending Account (FSA) is capped at $2,500, but indexed to inflation. Many used this to pay for their family’s health expenses such as medical insurance, co-pays, and over-the-counter cold and other items such as band-aids, pain relievers, antacids, and children’s vitamins. Other expenses the FSA is used for includes those not covered by their insurance, including hospital stays, dental visits, nursing care, as well as expenses of special needs children such as education. For 2012 and prior, there was no federal limit, although many employers did set a cap.
• Medical device manufacturers are hit with a 2.3 percent excise (sales) tax. However, eyeglasses, contact lenses, and hearing aids are exempt.
• The medical itemized tax deduction threshold increases from 7.5 percent to 10 percent. So, if you have high medical expenses, you get less of a deduction. Those over 65 are not affected by this until 2016.
• The Medicare Part A hospital insurance tax rate increases by 0.9 percent (from 2.9 percent to 3.8 percent) on single taxpayers earning more than $200,000, and for married taxpayers earning more than $250,000. Note that if you are in this bracket at work, the additional tax will be withheld, but if you and your spouse separately don’t hit the threshold, but together you do, you may need to make a W-4 adjustment at work, or pay estimated taxes.
• This 3.8 percent ‘Medicare’ tax also applies to net investment income (interest, dividends, and capital gains) in the income range noted above. This is in addition to the capital gains tax.
• Corporations can no longer deduct prescription expenses for their retirees.

2014: More To Come.

And for your leisurely reading, here is the link to the full bill [PDF].

Security Tips:

• Use passwords of eight characters or more with mixed types of characters. Tip: Use short words with spaces or other characters separating them. For example, “new work by 8!” or “dog_park_run?”
• Use a different password for each new website or service.
• Don’t use these common passwords: password, 123456, 12345678, abc123, qwerty, monkey, letmein, dragon, 111111, baseball, iloveyou, trustno1, 1234567, sunshine, master, 123123, welcome, shadow, ashley, football, jesus, michael, ninja, mustang, password1.

Have a good week.

Joseph Reisman, of Joseph S. Reisman & Associates, has been serving tax prep and business accounting expertise from his Coney Island Avenue office for more than 25 years. Check out the firm’s website.

Source: agrilifetoday / Flickr

Telling Tips is a series of articles from local experts to help you save money, make better decisions and plan for a better future.

Despite the inaction of Congress, some changes are known for next year:

Tip #1: FICA Max Rises To $113,000

The Social Security Administration has announced that the maximum earnings subject to the 6.2 percent FICA tax rises to $113,700 for 2013 from the 2012 maximum of $110,100. This includes your 12.4 percent retirement portion of the self-employment tax.

The temporary reduction to 4.2 percent of the employee FICA is not expected to be renewed, meaning that if you are at the maximum earnings, your FICA tax rises by $2,425.

There is no change in the 2.9 percent Medicare tax split between employees and employers. This tax has no wage or self-employment income cap.

Tip #2: 2013 401(k) Max $17,500; IRS Issues Updated Retirement Plan Limits

The IRS has announced the inflation adjustments to retirement plans for 2013. Some highlights:

• Maximum contributions to 401(k) and 403(b) plans rise to $17,500 (from $17,000 in 2012). Taxpayers who are 50 years old by the end of 2013 will be able to contribute an additional $5,500.
• The maximum contribution to defined contribution plans increases from $50,000 to $51,000.
• The annual defined benefit plan limit increases from $200,000 to $205,000.

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Photo by Erica Sherman

Telling Tips is a series of articles from local experts to help you save money, make better decisions and plan for a better future.

My family, staff, and I hope that you and your families are safe. I am happy to say that my electric is back, the internet is working, the water is out of my basement, the fallen tree is out of the driveway, and my heating system is about 75 percent fixed.

As Mark Twain said, “Kindness is the language which the deaf can hear and the blind can see.” This storm has brought many people together — family, friends, and neighbors — and has brought out the best in you. New York is a great place to live, because of you.

Before I tell you the tax aspects, here are a few things you need to be doing:

1. Act. Don’t sit back and wait for your insurance company’s claim adjusters or others. Protect your property.
2. Take Pictures. Documentation of what your home and property looked like before and after the damage. Any before pictures will help, like a family gathering showing items you owned.
3. Hire Contractors. If you have water in the basement, it’s in your best interest to minimize the damage, as well as that of the insurance company. You will not be penalized.
4. Take Action. Everyone has problems, including the insurance company. So if their phones don’t work, take action anyway.
5. Hurricane Deductibles Waived. The winds had abated from hurricane force when Sandy hit, so hurricane deductibles don’t apply. Unfortunately, it looks like we are still on our own as far as flood expenses are concerned.
6. Be Patient. Roads are still blocked, gasoline is in short supply, and contractors are having trouble getting gas for their trucks and parts for your repairs. Everyone is hurting. If you are not hurt, and if you still have a house, you’re in good shape.

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Source: Wikimedia

Telling Tips is a series of articles from local experts to help you save money, make better decisions and plan for a better future.

The advantage of Section 529 college savings plans is that contributions can be deductible on your state tax return, the earnings grow tax-free (federal and state), and withdrawals used for qualified higher education expenses are free from federal income tax and state income taxes. Some questions you should ask are “What are qualified expenses?” and “What happens if I take out money for expenses that aren’t qualified?”

By February 1, Form 1099-Q is issued when a withdrawal is taken from a 529 account. It will have the Social Security number of the person receiving the money — the beneficiary (student) or the account owner (you). The form will show the withdrawal and the earnings. The IRS also receives a copy of the form, which they will match with the recipient’s tax return.

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In case it’s not entirely obvious, that’s supposed to be money in the shape of an origami heart. Source: s-berries / Flickr

Telling Tips is a series of articles from local experts to help you save money, make better decisions and plan for a better future.

Congratulations to all of you newlyweds — you are now on the hook for your spouse’s taxes. You remember, “For better or for worse?” Your tax liability, known or unknown, is now a joint responsibility as well.

These liabilities include back federal and/or state taxes, child support, and unpaid student loans.

The IRS wants all couples to know that:

1. Tax, interest and penalties are a joint responsibility — even after divorce or death.
2. A divorce decree, written in stone, that your ex is responsible for your joint taxes, does not mean the IRS won’t hold you liable.
3. Even if none of the income on your joint tax return is yours, the IRS can still come after you.

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Source: stephen robinson/Flickr

Telling Tips is a series of articles from local experts to help you save money, make better decisions and plan for a better future.

Last Thursday’s headline in the New York Daily News was “Let Me Die.” The story concerns Grace Sung Eun Lee, who is paralyzed from the neck down, on life support, and wants to have her breathing tubes removed [Ed. – Updated reports indicate that Ms. Sung Eun Lee now wishes to remain on life support]. In 1998 there was another case of a woman on prolonged life support, Terri Schiavo; and before that, Karen Ann Quinlan, a New Jersey 21-year-old.

The point is that we all need certain legal documents beginning at the age of emancipation. As most people have more contact with their tax preparer than they have with their attorney, I think it is part of the accountant’s job to make a few suggestions every year. Here are a few of mine:

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Source: FusionTaxes.com

Telling Tips is a series of articles from local experts to help you save money, make better decisions and plan for a better future.

Now that autumn is upon us, and your concentration is upon your upcoming income tax return, you may have wondering how IRS personnel meet new people.

One way is the IRS version of Match.com. Using this approach, IRS computers match W-2s, bank interest, dividends, student interest deductions, alimony, other 1099s, and various other pieces of information that third parties give you and the IRS against your tax return. This game isn’t really fair because the IRS knows the ending. And, if you don’t play the game their way, you lose.

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