Kaufman’s Long-Term Care Guide (Part 1)

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.

The First Step To Reclaiming Control Over Your Taxes!

Our clients who filed with us this year already feel the peace-of-mind that you were able to claim every possible deduction which is legally allowed in the tax code for 2011. After all, we put each return through an extensive review process to ensure you keep as much of your hard-earned income as the IRS allows. 

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.

Two Common Estate Plan Myths- Busted

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)

Money Worries

With all of the news about spiraling federal debt, it’s natural that Americans are taking a hard look at their own situation, and it sometimes leads to worry–even for those who are relatively secure.

Interestingly, my clients who have MORE cash in the bank often worry more! Funny, right? But it’s normal human nature….

You see, under all guidelines and measures, my finances are very solid. I’ve got a thriving business which is more secure than most people’s jobs. I work with numbers and am very good at taming balance sheets.

Yet, I still sometimes worry about money.

After a lengthy time of thinking, discussion and some more thoughts into the matter, below are a  few techniques I’ve settled on which can help us ALL reduce our worries over money.

1. Realize that It’s Exaggerated – Worry is a funny feeling – it seems to exaggerate any problem. While there are certainly many people who actually run out of money, those are usually not the people that tend to worry.

2. Spend the Same Time Making Money Instead – If you are going to spend time worrying about money, why not use that time and get a side job instead? Maybe start a website (or two, or three). I know it’s easier said than done, but the more you work at it, the easier it gets.  I have some clients who have set up a side job being their own boss and looking for partners, maybe you should connect with them? Contact me if you want out to find out more about these opportunities!

3. Confidence – Part of the reason why we worry about money is because of the lack of confidence in our own abilities to earn an income. How can we boost our confidence you ask? Confidence comes from success, and success starts from taking action. So try a few low-risk entrepreneurial ventures. If they bomb, see it as a laboratory: learn from it and try again.

But never (never) allow it to touch your identity as a person.

4. The workplace plays a big role in worry. Are your colleagues encouraging? Is your boss supportive? If not, then do something about it. Don’t get into the thinking of “I can’t find another job”. Yes you can — especially if you HAVE a job right now. If you got this job, you can get another one!

5. Worrying is Actually Good – A little, measured worrying is actually healthy for us. It’s what drives us to be better. It’s what turns our energy switch to the “On” position. The right way to deal with it is to channel it into your work ethic, and your desire to be better.

Of course, what I listed above is just the tip of the iceberg. How do you deal with worrying about the lack of money? Or do you? What has worked for you? I’d be interested to hear.

Lastly–ELIMINATE worry by calling us for advice! You do NOT have to walk this financial road alone…

Until then…

Howard

IRS changes the Standard Mileage Rate

The Internal Revenue Service announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes.

The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011.

The real question is whether this rate is realistic for the increasing costs we face while using our vehicles for business.  The only way to know for sure is to keep track of your expenses and see which method works best.

If you need help in setting up a daily system to keep track of your expenses, let us know, we can help.

The Tax Paper Chase List-Check out our discount

This has ALREADY been one of our most intense years, in preparing the groundwork for “tax season”, simply because the tax code is getting even MORE complex. And, truly–it seems as if I write that *every* year, which isn’t a great sign for families who are wanting to do their own taxes!

And, of course, Congress’ last-minute tax agreement didn’t make things any easier.

Don’t cry for us — this is our full-time occupation, after all! But I truly do pity those who attempt to wade through all of the different codes and forms on their own, and not devote a week’s labor to the transaction. It really doesn’t pay to “go it alone” for certain tasks.

So, for those of you who want our help, I’ve got a special incentive for you at the end of this blog post l … AND, I’ve got a handy little list of what you’ll need to bring in or will need to complete your tax organizer we send to you. It’s mostly complete, but there may be certain situations where we’ll need other documentation to get you even more deductions. But, of course, we’ll let you know about that, should the situation arise!

Let me know your thoughts … and, of course, if you’d like to talk this over with us we DO have a couple slots left! Call or email soon, though.

The Tax Paper Chase List
Yes, this is a long list — but it’s the unfortunate reality of our tax code that it’s not even comprehensive! But these items will cover 95% of our clients.  Really, this is for ensuring that we’re able to help you keep everything you deserve to keep under our tax code.

Even if for some strange reason you won’t be using our cost-effective services this year, feel free to use this list as a handy guide…

Personal Data
Social Security Numbers (including spouse and children)
Child care provider tax I.D. or Social Security Number

Employment & Income Data
W-2 forms for this year
Tax refunds and unemployment compensation: Form 1099-G
Miscellaneous income including rent: Form 1099-MISC
Partnership and trust income
Pensions and annuities
Alimony received
Jury duty pay
Gambling and lottery winnings
Prizes and awards
Scholarships and fellowships
State and local income tax refunds
Unemployment compensation

Homeowner/Renter Data
Residential address(es) for this year
Mortgage interest: Form 1098
Sale of your home or other real estate: Form 1099-S
Second mortgage interest paid
Real estate taxes paid
Rent paid during tax year
Moving expenses

Financial Assets
Interest income statements: Form 1099-INT & 1099-OID
Dividend income statements: Form 1099-DIV
Proceeds from broker transactions: Form 1099-B
Retirement plan distribution: Form 1099-R
Capital gains or losses

Financial Liabilities
Auto loans and leases  (account numbers and car value) if vehicle used for business
Student loan interest paid
Early withdrawal penalties on CDs and other fixed time deposits

Automobiles
Personal property tax information
Department of Motor Vehicles fees

Expenses
Gifts to charity (receipts for any single donations of $250 or more)
Unreimbursed expenses related to volunteer work
Unreimbursed expenses related to your job (travel expenses, entertainment, uniforms, union dues, subscriptions)
Investment expenses
Job-hunting expenses
Education expenses (tuition and fees)
Child care expenses
Medical Savings Accounts
Adoption expenses
Alimony paid
Tax return preparation expenses and fees

Self-Employment Data
Estimated tax vouchers for the current year
Self-employment tax
Self-employment SEP plans
Self-employed health insurance
K-1s on all partnerships
Receipts or documentation for business-related expenses
Farm income

Deduction Documents
State and local income taxes
IRA, Keogh and other retirement plan contributions
Medical expenses
Casualty or theft losses
Other miscellaneous deductions

We hope this helps, and we look forward to seeing you this year!

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Warmly,

Howard

+++++++++++++++++++++++++++++++++
Special Early 2011 Blog Offer
$29.00 Off Any Tax Service
Special Gift Certificate
Print This blog post and bring it to our office–and receive an instant $29 credit towards any tax or financial service for 2011

Expires February 11th, 2011
Not valid with any other offer
+++++++++++++++++++++++++++++++++

Buying a new house, don’t be rushing to file your 2009 tax return!

If you bought a home in 2009 or early 2010,you may qualify for thousands of dollars of tax relief, thanks to a home buyer tax credit. The first home buyers credit which was originally offered back in 2008 has been updated to a tax reduction up to $8,000.  In addition, this credit has been extended to home buyers who have owned and lived in a home for at least five consecutive years of the eight years before the purchase of a new home.

This credit has been extended for contracts made before April 30, 2010 and closing on the purchase by June 30, 2010.  You can elect to take the credit for 2009 even though the transaction is in 2010.   If you close soon, you can take this credit on your 2009 tax return without amending the return or going on extension. There are certain requirements as far as income and the cost of the home that have to be met. Bottom line, if you are about to close on your new home, hold off filing your return.  We can help you figure what is the best way to get what is entitled to you.