nursing home in Angle Park, South Australia (Photo credit: Wikipedia)

Firstly, I’m here to offer you a friendly reminder: Sunday is Mother’s Day. Do with this reminder what you will .

And speaking of moms, if you’ve ever spoken with friends who have had to place their parents into a care facility, you know how difficult the process can be.

I was once asked to weigh in on how to make this decision, so I’ve done so, here. I did some digging, and I believe I’ve put together something helpful — and clear.

Because for far too many people, the “story” of their lives doesn’t end as well as they might have hoped. Care facilities (when they’re necessary) can be a blessing … and, well, they can be a nightmare. So, to help you make sure that your family (and your friends’ families) make the best decision possible, I’ve put together a two-part series on nursing home placement — and how to do it right.

Feel free to forward this along to anyone who may be affected by these issues. We’re always here to help! And, of course, I’d love your thoughts (as usual!)…

It’s a fact: most nursing home admissions happen under extremely stressful circumstances.

It’s an overwhelming task to find the best nursing home placement for a loved one, perhaps because, well … where do you even begin?

But, although this is a job that no one wants, it can be done with forethought and confidence that the best decision was made for everyone involved . It’s easier (and better for your loved one), if that first placement is well thought out. Yes–a nursing home resident can be moved from one facility to another, but this type of disruption is rarely in everyone’s best interest, as it can be disturbing on a variety of levels.

So it’s best to do it right–from the beginning.

Here’s a great place to start your search:

The Federal Center for Medicare & Medicaid Services (CMS) has a part of its Web site called “Nursing Home Compare”. Surprisingly (for a government service), it’s actually quite handy:

http://www.medicare.gov/NHCompare

This area of their site identifies facilities that have a history of poor performance–and ones which do well. In fact, the Nursing Home Compare site labels nursing homes it calls “Special Focus Facilities” — those that have repeatedly violated state and federal health and safety rules and that rank in the worst 5 to 10 percent of all inspected facilities in a given state.

You’ll want to cross those off your list from the very beginning.

Using this website, you can see detailed inspection information about each nursing facility that interests you, comparing various government-rated “quality measures” such as:

• Percent of High-Risk Residents Who Have Pressure Sores
• Percent of Residents Who Spend Most of Their Time in Bed or in a Chair
• Percent of Residents Who Have Moderate to Severe Pain
• Percent of Residents Who Were Physically Restrained
• Et cetera.

The site also rates the care and services that each facility provides to its residents, and allows you to view how each facility stacks up in staffing hours for each type of health care worker against the state and national averages.

And there’s other comparison tools available. For example, U.S. News and World Report has recently started providing rankings of America’s nursing homes.

http://health.usnews.com/senior-housing

These rankings rely on the data from the above government site–but they DO provide some advanced search engine capability. Nursing homes are presented in tiers within each star category, based on their total stars in all three of the major areas. The topmost tier, for example, consists only of five-star homes that got 15 stars. The next tier down is five-star homes with 14 total stars, and so on.

Within each tier, nursing homes are listed alphabetically. If you’re looking for a nursing home by location, and turn up too many, search terms can be combined in order to narrow the results.  For example, perhaps you want to search just for nursing homes that have a religious affiliation, or that accept Medicaid residents. Or you can launch a multi-pronged search, perhaps searching for non-profit four-star nursing homes that accept Medicaid and are located within 25 miles of a particular city.

However–here’s my big caveat when it comes to just looking at ratings: Nothing can substitute for visiting a nursing home in person. After all, every nursing home will have some deficiencies; working with extremely disabled and impaired persons is very difficult.

So, to find the best possible nursing home for your family’s situation, the first step is to determine what is most important for your family in looking for a facility. And I hope that you would agree that the potential resident’s needs and desires must be included in this evaluation. Consider variables such as location of the facility, whether a special care unit (such as for dementia) is available, and what types of payment sources are accepted.

The second step is to identify the facilities in your area which meet the criteria you have established.

In my next Note, I’ll give you some pointers on how to conduct an on-site tour properly–what to look for, questions to ask, etc.

Taxes (Photo credit: Tax Credits)

But what about our non clients? And what about your previous years?

Well, since the filing deadline is already past us, they (and you) might think that the proverbial “fat lady” has sung on 2011 returns (and 2010 and 2009). Not so.

Because according to the most recent report on the matter, issued by the General Accounting Office, taxpayers overpay the IRS almost $1 billion every year due to incorrect itemization and preparation.

What’s worse is that those who prepared their own taxes (with a software, or on their own) are the most vulnerable, according to the report. But did you also know that taxpayers who used one of the “big chain” preparers are almost as bad off?

An excerpt from an additional report from the GAO: In a Limited Study, Chain Preparers Made Serious Errors

In GAO (United States Government Accountability Office) visits to chain preparers, paid preparers often prepared returns that were incorrect, with tax consequences that were sometimes significant. Some of the most serious problems involved these preparers…

1.  Not reporting business income in 10 of 19 cases;
2.  Failing to take the most advantageous post-secondary education tax benefit in 3 out of the 9 applicable cases; and
3. Failing to itemize deductions at all or failing to claim all available deductions in 7 out of the 9 applicable cases.

So what can your friends do about this? And what could YOU do about it, if you didn’t have us handle your taxes in prior years? Simple: file an “Amended” Return.

Many tax businesses don’t provide this service, but even though we’ve completed our clients’ returns, we WILL review any of our non clients’ returns–at no charge.

Paying taxes is required for both citizens and non-citizens. (Photo credit: Wikipedia)

One of the “hidden” benefits to using a good pro to file your taxes is that we have a hair trigger for avoiding things which might cause an audit.

And I thought that ALL of my clients and contacts would benefit from some (but not ALL) of our little internal list of what we look for, to make sure that clients are doing what they can to keep from getting socked with a notice.

Here’s what we (AND the IRS) look for …

Seven Audit Red Flags
1. Indefensible claims
There are so many old wives’ tales saying that certain items trigger an audit: home office deductions, passive losses, schedule C (sole proprietorship) activities, etc. But you really can’t predict the trigger (and you can drive yourself crazy trying), but you *can* adopt the “be reasonable” mantra about every item on your return (with our help, of course), including these. So if you don’t have a decent claim for a home office, we’ll help you not to claim it. If your money-losing sole proprietorship is really more a fun hobby, treat it as such.

Look–don’t be scared to take deductions and losses you’re entitled to, but don’t take tax positions you aren’t comfortable defending. If you take reasonable tax positions, you’ll likely find you won’t end up needing to defend them. And if you do face an audit, it will likely be far easier.

2. It doesn’t all add up.
This seems like it should go without saying, but make sure you add, subtract and multiply accurately. Check your numbers through each step and do some simple math checks when you finish. If you do make a math mistake, you are likely to get a math correction notice from the IRS. This isn’t an audit. But our goal is to minimize your interaction with the IRS bureaucracy, which, ah… isn’t known for the best mail handling practices.

3. Lost 1099
This can be confusing, because the Form 1099 comes in many varieties, including 1099-INT for interest, 1099-DIV for dividends, 1099-G for tax refunds, 1099-R for pensions and 1099-MISC for miscellaneous income. These forms are sent by payers of such funds to both you and the IRS.

So regardless of how many 1099s you receive, make sure they all are accounted for on your return. There are also Forms 1098 which lenders send (to you and the IRS) recording how much interest you paid. The IRS matches your return against the 1098s and 1099s. So one sure way to guarantee an IRS query is to fail to account for something! If a Form 1099 is wrong–say it reports more income than you had–you can explain or deduct it on the return, but you need to first report it.

4. Suspicious OVER-reporting
I’m not talking about under-reporting income, or holding necessary information back. But you’d be surprised how many professionals and amateurs alike try to submit too much *supporting* information. True, if your return is complex, you may need to add explanations or disclosures in footnotes. Be concise, truthful and accurate, but don’t provide copies of sales agreements, settlement agreements, bank statements, etc., unless you are later asked to by the IRS.

Disclosures can be made on regular paper or special IRS forms. A Form 8275 “Disclosure Statement” on plain paper can be used any time you need to disclose something that can’t be adequately disclosed on the forms. Form 8275-R “Regulation Disclosure Statement,” is for disclosing positions that are contrary to IRS Regulations or other authority. You shouldn’t be filing a Form 8275-R–or taking a tax return position that would require it–without professional help.

Frankly, though, any disclosure statement should be checked with someone who can take you by the hand and ensure it’s done properly (ahem).

5. Fighting unnecessary fights.
Here’s where some of our clients have gotten in trouble in the past, despite our admonitions: If you take reasonable tax positions, and complete your return accurately, checking your math, why should you pay a bill if the IRS sends you one? Frankly, it’s a matter of practicality (and wisdom) rather than principle. It just doesn’t pay to fight with the IRS on small matters. So don’t get into the bureaucratic system and risk bigger problems for a few dollars. Just pay it and move on.

6. Ticky-Tack Prior Year Amending
Here’s the reverse situation of my previous point: amended returns are reviewed much more regularly than initial returns. So if you forgot a deduction or otherwise think you can get a small amount back by amending, think twice before amending your return (i.e.–consult with a pro). Consider whether you might have bigger problems if other matters on your return, unrelated to the amendment, are reviewed. Yes, you can win a battle…and lose a larger one.

7. Trying to go it alone.
Yes, this is a bit self-serving — but I’ll also make a “damaging admission” here: some tax professionals argue that a return prepared by a professional is less likely to be audited.  However the facts are that there’s little reliable data to support it. That being said, having a professional prepare your return will give you the added firepower of years of experience in handling such matters in your corner.

So to absolutely ensure that whatever happens, you’ll have such a someone at your side — and that your back will be guarded on the front end, give us a call: 847-243-3600.

And a last word: No matter how careful you are, there’s no way to guarantee you’ll never have a tax controversy. Sometimes your number just comes up. But when your number is called … make sure you aren’t alone.

What is identity theft credit repair?

Though the legal process of identity theft credit repair may take a lot of time and can be strenuous, recovering the lost identity and regaining normalcy can be done in order to boost your credit score in the long run. When a person goes for credit repair, his ultimate objective is to remove all the erroneous information that is dropping down your score. You can negotiate with the credit bureaus thereby proving that you were a victim of identity theft. You may also state that all the charges made with your card are not yours. When you’re successful, this will help boost your credit score.

The first step that a person should take is to contact all the creditors and inform them of your situation. You need to tell them that all the purchases shouldn’t be authorized and the credit should be immediately suspended. Call any of the financial institution and negotiate with them so as to improve your credit score and emerge creditworthy once again. If you’ve been a victim of identity theft, you can contest any item on the credit report in order to remove the inaccurate information that is unverified. The credit bureau usually has 30 days to verify all the details of your credit report and up on request, all the errors are deleted from your report.

Signs of a credit repair scam – Awareness can make you alert

As mentioned earlier, the credit repair scams are on the rise and this is the reason why most of them are meeting with unsuccessful results. Here are some signs of credit repair scams that you can stay aware of.

• When you aren’t given a copy of the contract before you’re asked to sign it.
• When the contract doesn’t contain information of the amount that you’re being charges and the details of the actions that are being taken on your behalf.
• When you aren’t given a copy of the Consumer Credit File Rights under the Federal and state law.

• When you’re asked for the payment and the charges before the actions are taken.

What to do when you’re scammed?

It may happen that you’re subject to credit repair scams but you shouldn’t let the credit repair scams to get away with this. If the information is wrong, you should exercise your right to file a dispute so that the harmful negative information does not hurt your credit score. You can report to the State Attorney General and also visit the National Association of Attorney General’s website to file a complaint. The FTC can also be reported against such scams.

Since you know that identity theft can cost you dearly in the long run, getting an upper hand over the scams can help you breathe easy. Go for credit repair and boost your score so as to grab loans at the best possible rate.

Neil R. Williams is a financial writer, a market analyst and an member of DebtCC community. He consults and writes on global finance. Moreover, he discusses matters with respect to debt consolidation, credit repair, tax and so in the commutity forum. Please follow http://www.debtconsolidationcare.com/ for more updates.

The national average credit card balance for 2011 was $6,576, down from $7,404 the previous year — and while it’s certainly nice to see improvement, I also know that any kind of debt can feel like you have Justin Tuck climbing on your back. (That’s a New York Giants reference, by the way. Google him if you must. Not a small man.)

So, you may be in a better situation … it may also be worse. So, to answer the questions we often get around here from clients facing tough times, I’ve put together a step-by-step process which we often help people work through.

Image via Wikipedia

1. If you ever hope to pay off your credit card debt, pay more than the minimum payment each month.
If you only pay the minimum payment each month, your bill could continue to INCREASE, even if you completely stop using your card. This is called “negative amortization”–where you think you are paying on your debt but the additional fees and finance charges are more than the minimum payment. The bottom line is: Pay more than your minimum or you will eventually be in debt over your head.

2. Implement a regular *system* for credit card debt reduction.
With online banking and automatic payment options, there are GREAT tools for ensuring you don’t mess up because of administrative chaos. If you feel you can’t manage all your bills by pen and paper, there are several good software programs available for keeping track of your financial records.

In fact, I recommend that you automate a payment ABOVE the minimum monthly payment, just to be certain that you start getting ahead of the game. Those minimum payments are rigged against you, and the only way to get ahead is to … get ahead. I have some more thoughts on automation in a moment.

3. You can negotiate with your credit card company.
No, you do not need to be an attorney or other professional to negotiate with your credit card company (you will need patience and persistence though). The rising amount of consumer debt in this country has made creditors realize that they need to be more understanding of their customers — if they hope to get any money back. If you file bankruptcy they are only going to get pennies on the dollar, so they are willing to make deals.

4. Write letters to each of your creditors acknowledging your debt and the situation, and tell each one when you can begin repayment.
Open communication always helps. Usually credit card companies get ignored and end up sending delinquent files to a collections agency. So they’ll actually appreciate your openness in contacting them and may be more understanding of your situation. Proactively dealing with your debt problem rather than hiding will not only help your financial problem but make you feel better about yourself.

5. Keep track of what you are able to pay each creditor every month.
If you are not able to pay the full amount of your credit each month, you still should still pay something to stay on top of it. You should work off a written budget so you know exactly where you stand. Some experts suggest that you divide your monthly debt budget by the percentage each bill makes of the total and pay that amount.

Here’s an example: If you owe a total of $1,000, and one credit card is $800 and the other is $200, and you only have $100 available to pay for that month… You should pay $80 on the $800 balance, and $20 on the $200 balance. This way you are reducing each debt by the same percentage.

6. Don’t fall prey to intimidation tactics
No matter how forthcoming and honest you are, some creditors have been taught to be mean and downright nasty. Hang in there and don’t let this tactic intimidate you.

Lastly–don’t let the IRS be one of those creditors. Let us help you this tax season, and THAT will be one less creditor to worry about, I assure you! You can reach us at 847-243-3600 or email us at Howard@savemoretaxes.com

Image via Wikipedia

If you haven’t gotten your W-2 by now, here are some basic steps for you (you might want to print out or save this link, by the way):

1) Contact your payroll department/boss. Be nice about it — after all, they’re just as burdened by the paperwork junk as you are!

2) If, however, the days roll by and the form is indeed lost or your employer is inordinately slow in issuing a replacement, or you worked for a company that went out of business and there’s no one to bug about getting a W-2 … what then?

“Make” your own! Well, actually, you contact the IRS at this number: (800) 829-1040 with the following info from your last paystub handy:

• Year’s wages.
• Payroll taxes withheld.
• Federal and state income taxes withheld.
• Contributions to your company retirement/401(k) plan.
• Employer’s tax identification number.

Wait on hold, and ask for Form 4852. Basically, this will inform your employer “officially” that they’re delinquent, and you can even use this form in a pinch, if your employer never gets their act together.

If you need further help, please feel free to email us at Howard@savemoretaxes.com or call us at 847-243-3600.

Related articles

• Happy Tax Season Series: Where’s my W-2? (ataxingaffair.com)

Image by 401K via Flickr

Kaufman’s Financial Resolutions for 2012

Here’s the thing about most financial resolutions: They don’t usually last even until the end of January. That’s because making a permanent change in our behavior requires both time and a steely resolve. But I’ve found that we can develop financial character one action at a time. That is why I am giving these out now so you can really get going.

So in that vein, here are some financial practices to take you from pauper to prince or princess if you add one each year. If you’ve already got one down, move to the next on the list.

#1 MOST CRITICAL: Resolve to become (and stay) debt free. Now, I’m not Dave Ramsey, but there’s a reason why he’s become so popular: his approach works. I’d say that  you can have a fixed-rate fixed-year traditional mortgage on your house — but nothing else, please. No equity line of credit on your house. No car payments. Certainly no credit card debt. Because you simply have to learn to live within your income — which, unfortunately, sometimes means going without. The millionaires among us really are frugal. So learn to enjoy that process, and it’s a fantastic start.

#2 Automate your savings (AKA Pay Yourself First). You can start by getting the entire match if your company offers a 401(k) plan. Usually this translates to saving 5% of your salary while the company contributes a 4% match, which is the fastest way to get an 80% return on your money. Most Americans forgo this match, believing they need to spend 100% of their salary. But you can learn to think like a millionaire and live well on 95% of what you make.  If you don’t have a 401(k) plan, act like you do, and sock away 5% automatically by following step 4 below .

#3 Fully fund your 2012 Roth IRA. This is $5,000 in 2012 and $6,000 if you are older than age 50. If you can’t manage the entire amount in January, put in $416 monthly. Automating deposits in an employer-defined contribution plan is easy. Fortunately, automating saving in a Roth IRA or a taxable savings plan is equally painless. Most brokers offer an automatic money link between your checking account and an investment account. Set your savings on autopilot, baby!

Remember — these steps build off one another, so if you already have done the first 3, here’s your next step:

#4 Save another 5% in a Private Reserve Strategy. This is a strategy designed to help develop or improve one’s financial position by avoiding or minimizing unnecessary wealth transfers where possible, and accumulate an increasing pool of capital providing accessibility and control.  Want to know how to set one up,  give us a call at 847-243-3600.  Do it now!

Let us know how you are doing.  Leave a comment below.

Image by Fikra via Flickr

As of this writing, it’s a fact that almost 60% of Americans don’t have a basic will, and that’s a big problem.

One of the big reasons that most families don’t yet have this kind of plan in place is because of some incorrect thinking about whether it’s right for them, or if it’s even necessary. And sure –some people just haven’t gotten around to creating a will or trust. Others think they don’t need an estate plan because they’re not “rich”.

But here’s the problem–if you continue without an estate plan, you could leave a legacy of bad feelings and attorneys’ fees.

So I wanted to speak to some of the more common misconceptions out there. I’ll start with a couple big ones this week, and when the time is right, address a few more in 2012…

MYTH #1: Only rich people prepare estate plans.

Do you own ANYTHING? Because if so, you need a will. You see, a will allows you to designate who will receive your property should anything happen. Continuing without one ensures that your assets will be distributed under the terms of your state’s “intestate succession” laws. That means your money and property could end up with family members you haven’t spoken to in years, instead of who you’d really like to see control your assets.

I won’t go into all of the different components of a will, trust, health care directive etc., as my purpose here is to emphasize that failing to plan is simply a decision to trust your assets to government bureaucrats who don’t know you from Adam.

Even if you think your situation is pretty straightforward, you may feel more comfortable hiring a lawyer to guide you through the process.

MYTH #2: Everything goes to your spouse, if something happens.

Unfortunately, that’s not always the case. We deal with clients from different states around the country, and state laws vary. In fact, in most states, if you continue without a will (intestate), your inheritance will be divided among your spouse and your children. In New York, for example, when someone dies intestate, the spouse gets the first $50,000 of the estate and what’s left is divided 50-50 among the spouse and the children.

You can imagine how this could create all kinds of problems, particularly if your spouse was financially dependent on you or you have children from a previous marriage.

I’ll send a few more in the future, but I hope you can already see that things are not always as we “think”. And let’s take advantage of tax season and move towards getting this done (or updated) in 2012!

To your family’s financial and emotional peace…

Let me know if you agree by leaving a comment below.

Check out some of these articles for further reading

Related articles

• Why you should write a will (telegraph.co.uk)
• 5 Reasons You Need a Will (fpaforfinancialplanning.org)

It’s pretty obvious that the big-shot bankers
on Wall Street have been getting richer and
richer during this economic crisis, while your
friends and family members haven’t.

Well this really ticked-off my friend Mike Dillard,
(who made his first million by the age of 26),
and he’s basically started a “movement”,
in order to even the score and allow the rest
of us to profit from the current economic chaos
just like they are.

Despite the fact that he’s not an investor, trader,
or financial guru of any kind, he’s made a
300%+ return since 2008, while the rest of the world
has lost 30-40% of their portfolio.

How?

Get this… He found a “map” back in 2007 that’s
allowed him to basically predict the financial future.

Like I said… VERY COOL… (And yes, it’s the real deal).

Anyway, he recorded a three-part, “Year-In-Review”,
video series this month showing how he’s managed
to discover and use these little-known investment
strategies, and has decided to share it with the
public over the next few days.

I just finished watching Part I here about his economic
predictions for 2012, and it’s a MUST WATCH. Just copy and paste this in your browser.

http://theelevationgroup.net/yearinreview/index.php?a_aid=156393&a_bid=418a665e

I’d have to say my favorite part about his strategies
is that you don’t need to be a trader, and you
don’t need to be rolling in money. All you need is
the desire to learn how the rich are getting richer
these days, so you can too…

You can watch all three videos along with me this
week by going to his site with the link below.

http://theelevationgroup.net/yearinreview/index.php?a_aid=156393&a_bid=418a665e

Enjoy,

Howard

Check out the link below and pick up a valuable lesson. We offer a free consultation and you can see if you are ready for retirement or not in a matter of minutes.  We have helped people save thousands on their retirement planning.  Check out the story and come back to us for your personal no obligation review.

: http://cnnmon.ie/sgeB1E