If you have a medical flexible spending account, or FSA, one of the key year-end tasks you need to take care of this month is ensuring that you don't lose any of this tax-free money. Yes, some employers give workers a 2½-month grace period, until March 15, to use the prior year's FSA funds. Others let their workers roll over up to $500 left in their medical accounts. Both of those options are at the discretion of the companies offering the tax-favored benefit. A lot of companies, however, still just take advantage of the use it or lose it rule.... Read more →
Healthcare Medical
It's turkey time! Thanksgiving spread photo courtesy Zeetz Jones via Flickr CC. Happy Turkey Day! I hope you and yours are having a wonderful Thanksgiving Day. It's subdued at our house this year, just the hubby and me. My mom is spending the day with some extended family. Plus, due to some dining issues created by recent oral surgery, our menu — OK, my menu — is limited to mashed potatoes and gravy. That means the hubby gets to pig out for the both of us. But I'm thankful that I can still enjoy the super creamy pumpkin pie that... Read more →
Welcome to Part 5 of the ol' blog's 2019 series on tax inflation adjustments. Today we look at changes to some medical tax provisions. You can find links to all 2019 inflation posts in the series' first item: income tax brackets and rates. Note: The 2019 figures apply to 2019 returns that are due in April 2020. For comparison purposes, you'll also find 2018 amounts to be used in filing this year's 2018 tax return due April 15, 2019. Why yes, I am milking this medical situation for all it's worth, both personally (the hubby is such a great nurse!)... Read more →
Since I'm still recovering from my medical procedure last week, I'm following doctor's orders and taking it as easy as possible. Translation: More milkshakes! But I'm nothing if not a slightly obsessive-compulsive creature of habit. So I did want to get a Saturday Shout Out piece up today. Solution: I'm combining both medical directions and blogging impulses and recommending related tax reading today. Specifically, I'm going to the source, the Internal Revenue Service, for its comprehensive list of tax-deductible medical items and procedures. That is, of course, IRS Publication 502. IRS' medical deductions codex: The IRS hasn't updated Pub. 502... Read more →
I'm not nearly as cheery as my smiley face socks in the above photo, but at least I'm recovering from oral surgery at home. The downsides are some pain and (for me, but not the hubby!) not talking very much. There are some pluses, though: ice cream and milkshakes for every meal! Yesterday's procedure also means I'll have more medical expenses to deduct on our 2018 tax return. Yep, we're one of those few people who will be itemizing deductions under the Tax Cuts and Jobs Act (TCJA), primarily because of our medical situation the last couple of years. We... Read more →
Voters across the United States will vote for Congressional and state candidates that will have a profound effect on their lives for the next several years. But just as important are the fates of 155 statewide ballot measures that voters in 37 states will be asked to decide on Nov. 6. And many of those initiatives are about taxes. With a week to go before the midterm elections, here's a bit of background on ballot measures and a look at some of the notable tax-related issues that many of us will decide. Sin taxes not a sure thing: Since we're... Read more →
Today is a great day for my mother. The Social Security Administration announced that she and her fellow Social Security recipients will get a get a 2.8 percent cost-of-living adjustment (COLA) in 2019. The 2019 COLA — the largest since the 3.6 percent bump in 2011 — means the average single retiree's federal retirement benefit will be $1,461 or $39 more a month than this year. My mom is thrilled. Those 30+ bucks will cover her monthly phone bill. Still stretching each month: Unfortunately, the upcoming benefits adjustment won't be enough to make up for more than a decade of... Read more →
My octogenarian mother does an amazing job of taking care of herself and her little dog, aka my furry younger brother. My mother and her pup come to our place, like the Thanksgiving visit pictured here, but usually it's me taking time from work to head her way. (Photo by Kay Bell) But since she no longer drives and hates to impose on friends and neighbors, I make regular trips to her place to help her run errands, take her to doctor appointments and just visit. It's not too much of a hassle because she lives relatively close and it's... Read more →
Freelancing means more flexibility, such as where to work and the option to wear more comfortable attire. It also means you have some new tax responsibilities. (Photo by Lulu Hoeller via Flickr) The gig economy in the United States is growing at a phenomenal rate that shows no signs of slowing down. That's the analysis of BMO Wealth Management. A recent survey commissioned by the international wealth management company found that gigs — defined as jobs of short or uncertain duration — are the new normal. BMO's findings appear to support Upwork's annual Freelancing in America study, which was released... Read more →
Gym memberships could be deductible. Medical flexible spending accounts would be more appealing. Those are just part of tax changes included in a series of health care bills approved last week by the Ways and Means Committee. Now the question is, will they make it into law? Working out at Contours Express. (Photo courtesy Flickr CC) It's hot here in Austin. That's probably why most of my neighbors abandoned their usual outdoor workouts and jammed into my regular exercise class this morning. This happens every so often. Being a West Texas gal used to wide open spaces, I find the... Read more →
Judge Brett Kavanaugh spoke at the White House after being nominated to be the next Supreme Court justice. (Official White House photo by D. Myles Cullen via White House Instagram) Federal judge Brett Kavanaugh was tapped last night (July 9) by Donald J. Trump to replace retiring Justice Anthony Kennedy on the Supreme Court Supreme Court of the United States (SCOTUS) Kavanaugh, 53, has served on the D.C. Circuit Court of Appeals since 2006, a position for which he was nominated by the last Republican Oval Office occupant, President George W. Bush. Like Trump's prior Supreme Court justice nominee, Neil... Read more →
One of those hammocks has my name on it, after I finish a few July tax tasks. (Photo by Roberto La Forgia via Flickr CC) School is out. The fireworks have been shot (except for the stashes of my neighborhood's teens, which based on prior post-July 4 experiences, probably will last another week). And the heat is definitely on. That means it's finally, fully summer. And that means that it's time to get down to some serious summertime tax moves. Yes, I know you want to head to the pool or beach or catch up on neglected novels or just... Read more →
The hubby and I, like every other person, are getting older every day. That means we're getting closer to claiming Social Security and Medicare benefits. Two recent reports on the status of those federal programs make me glad to be closer to our collection dates. Both Social Security and Medicare, according to the programs' trustees, will run out of money to pay beneficiaries in 16 years and 8 years, respectively. At least the grayer-every-day hubby and I will get some of the full payouts. Sorry about all you youngsters! OK, I'm really not that selfish. But we are a bit... Read more →
Tax law changes mean that some previously deductible miles can no longer be claimed. (Traffic photo by Jo via Flickr) Back in March, the Internal Revenue Service announced revised inflation changes for many tax provisions that were affected by the recently-enacted Tax Cuts and Jobs Act (TCJA). One area that didn't change, however, was the list of 2018 standard mileage amounts used to calculate the driving-related tax breaks associated with medical, business, charity and moving costs. For the 2018 tax year, those cents-per-mile amounts are shown in the table below, along with the 2017 figures for folks who might be... Read more →
Losing your job. It's one of the worst things that can happen, especially when it comes as a total surprise. That's what folks who worked on Roseanne are dealing with after ABC pulled the plug on the rebooted sitcom. Being out of work is not so high-profile for most of us. But we all share the panic, anger and helplessness of suddenly losing the reason we get up every morning. To help you get through being let go, here are six steps you can take. And, of course, there are tax implications (nine total) for each of these post-job moves.... Read more →
Selecting health care coverage definitely isn't child's play. Hey there, Health Savings Account (HSA) owners. The Internal Revenue Service has more numbers for you. Don't freak out. Your 2018 HSA amounts, which were tweaked thanks to changes in the Tax Cuts and Jobs Act and then reinstated to the original limits, are safe. This time, it's the inflation-adjusted limits on your high deductible health plan, or HDHP, and its associated HSA for the 2019 tax year. Popular health plan: First a quick bit of background on this health care coverage that is becoming quite popular as medical insurance costs continue... Read more →
Substantially more than half of Americans say recreational marijuana use should be legalized. The October 2017 Pew Research Center survey that found the pro-marijuana majority is the latest analysis that documents a steady increase in weed acceptance over the past decade. The currently slow-but-steady support for weed — the 61 percent approval in the latest survey is up just 4 percentage points from a 2016 poll, but it's nearly double the 31 percent pro-pot results recorded in 2000 — offers hope to the marijuana industry. Part of that pro-pot progress is the herb's prospects as a job creator and revenue... Read more →
Still trying to figure out what you need to do to ensure that your family's health savings account (HSA) doesn't violate the new tax law's changes to maximum contributions? You can stop worrying. The Internal Revenue Service has relented on this issue. Almost 22 million people enrolled in high-deductible health plans (HDHP) and associated health savings accounts (HSA) in 2017, according to research by America's Health Insurance Plans. The political advocacy and trade association says that's up from just more than 20 million HDHP/HSA participants in 2016. Younger people, particularly millennials, are big fans of HSAs. A key reason for... Read more →
Source: CafePress tax jigsaw puzzle Still trying to put the pieces of your Form 1040 (or 1040A or even 1040EZ) together? Time's running out. Tax Day is almost here. Since the tax filing deadline is April 17 this year, here are 17 tax tips. Not only do they earn this week's By the Numbers honor, some could help you put together a return to send to Uncle Sam on time and at the least possible tax cost to you. 1. File on time. Yes, this first tip is obvious, but a lot of people let the filing date slip by... Read more →
Tax Day is less than a week away. But finishing up your 2017 Form 1040 is not the only tax task facing millions of Americans. Here are 10 tax matters that must be taken care of by April 17. 1. File your 2017 tax year federal tax return. Yeah, I started with the easy (so to speak), obvious one. But it is the reason for the tax season. If you don't get your return into or on the way if snail mailing by Tax Day, the late-filing penalty is 5 percent of the additional taxes owed amount for every month... Read more →