Peninsula Daily News column 1-27-11 "Need tax help? Tax-Aide can provide it"

As we’re reminded every time we saunter into any retail establishment, we are  teetering on the brink of Valentine’s Day, so I think it’s safe to declare the “December Holiday Honeymoon” officially over, including (I hope!) whatever form of “hangover” (residual visitors, unidentifiable leftovers and faces frozen into perpetual smiles ala’ BOTOX, etc.) might have resulted from said unbridled gaiety.

                So, now what? Well, never at a loss for ways to keep us entertained and off the streets, Uncle Sam will now present “Tax Season!” I know that you thought that just trying to decipher Medicare Part D and Advantage Plans could have easily kept us occupied until, at least, Independence Day, but our Great Uncle underestimates our collective attention span and, so, injects The Graduated Income Tax.

                This is probably not the best possible forum to debate the relative pro’s and con’s (Did I say “Con’s?”) of this particular approach to taxation, but I am struck with the ever-escalating level of complexity associated with it; a reasonable person can only conclude that we must have a national concern about the economic survival of professional tax preparers and Congresspeople, because if we didn’t there would be no justification for it at all.

                One really does have to wonder at the complexity of it all – Part D, Advantage Plans, taxes, healthcare, remote controls – Whatever happened to Roy Rogers and rotary phones? Well, nonetheless, here we are and here we’ll stay, eyeball-to-eyeball with the IRS.

                Not all Elders and/or retired folk are faced with this unfortunate prospect, so if your income is such that you can sidestep the whole event, this may well represent the only time of the year that you feel fortunate – We, who are about to die, salute you.

                Many of us, however, remain conspicuously on the radar of the Internal Revenue Service, and the Ides of April looms large in our collective psyche (actually, this year, we have until April 18^th, due to Divine Intervention and the vagaries of the calendar), but still producing the anticipated, annual whimper: Help.

                Help, Indeed! “Help” is the only rational response to an irrational situation! Oddly, ironically, coincidentally (and adverbally), this very column happens to be called “Help Line,” so let me see if I can help: How ‘bout “TAX AIDE?”

                These are the Good Guys, remember? These are volunteers who, voluntarily, submit to IRS-induced training in order to sit down with you and help you get your taxes done – For free. This is a program jointly sponsored by AARP and IRS (No, you do not have to be a member of AARP – Being a member of IRS is optional). Who’s eligible? “Middle and low income” folks who don’t have income from rental properties or complicated business returns, with particular attention to those 60 or better (regardless of how much better).

                What’s the catch? Well, you can’t be rich (and isn’t it refreshing to be able to openly discriminate against “rich people?!”), and you have to show up and you have to bring your W-2’s, 1099s and last year’s tax return. You’ll also want to bring a photo ID and Social Security card for yourself and your dependents. AND, because of some new wrinkles, you’ll also want to bring:

• Evidence of any energy efficiency improvements you may have made to your home;
• Real estate closing statement, if you purchased a new home in 2010 and are eligible for the “First-Time Homebuyer Credit;
• Bank account numbers, if you want a refund via direct deposit, and…
• …anything else you can think of.

                Now, about the “show up” part and remember, these all begin on February 1^st, but you can start making appointments now:

• Port Angeles Senior Center, Mondays, 9:00-3:00, call 457-7004 for appointment;
• Port Angeles Library, Tuesdays and Saturdays, 9:00-3:00 – Just show up;
• Forks Community Center, Saturdays, 10:00-4:00, on 2/5, 2/19, 3/5, 3/19 and 4/2 – Call 374-6193 for appointment;
• Sequim Senior Center, Wednesdays, 12:30-3:00 and Saturdays, 9:00-3:00, call 683-6806 for appointment;
• Sekiu Community Center, Friday March 4^th, 10:00-2:00;
• Tri-Area Community Center, Wednesdays, 3:00-7:00 (pm!)  and Thursdays, 10:00-2:00 – Call 732-4822 for appointment;
• Port Townsend Community Center, Tuesdays and Fridays, 10:00-2:00, call 385-9007 for appointment.

Now, before you get the other foot out the door, consider this: If you are a taxpayer who itemizes deductions (as opposed to just taking the “standard deduction” and making a run for it), OR you’ll be taking the “Tuition & Fees” OR “Educator Expense” deductions, please schedule your TAX AIDE appointments for March. The reason for this is that changes to tax law were made so late in 2010 that the IRS didn’t have a chance to catch-up.

What else do you have to do? Well, feel free to thank these folks profusely! They’re not getting paid to do this, just like they’re not asking us to pay. They get to sit through training, take tests and then give away substantial parts of their lives, all in the name of helping us (not to mention having to listen to us whine), so “thank you” seems inadequate – But, it’s a start. GEEZ! – Even Santa Clause got milk and cookies!

Peninsula Daily News Column 1-20-11 "Medicare Gobbledygook - Important Stuff"

This is Gobbledygook Column #2.

                The reason I’m putting us through this is because it could do a lot of people a lot of financial good, if they know about it, so stay with me; even if it doesn’t touch you, it might touch (read, “help”) somebody you care about.

                Here’s what I said last week:

                “You’re probably going to have to read this several times – It took me several times to write it. If it still doesn’t make any sense, but you think it might touch you or yours, just call any of the numbers at the end of this column and decent human beings will help you, without making you feel like an idiot.”

                That still applies. OK, ready? Here we go.

                There are things called “Medicare Savings Programs.” They are:

• Qualified Medicare Beneficiary (QMB);
• Special Low-Income Medicare Beneficiary (SLMB);
• Qualified Individual (QI-1).

QMB will pay for your Part A premiums (if you have any), your Part B premiums, and all Medicare deductibles, co-insurances and co-pays.

SLMB will pay for your Part B premiums and so will QI-1. Don’t ask why there are two programs that do the same thing – It will just give us both migraines.

These have been around for a while, and in order to play, you have to qualify by virtue of your (a) income, and (b) assets. The “problem” for a lot of folks has always been that the asset levels were REALLY low, so a lot of folks were “X’ed” out. Well, the assets limits have increased to the same levels as LIS (that’s “Low Income Subsidy”) which means the same thing as “extra help” for Medicare Part D, which we talked about last week in Gobbledygook Column #1.

That means that a lot of folks who have never been eligible will be eligible now, and we’re talking about hundreds of dollars per year, so stay with me here.

To qualify for QMB, the income for a single person can’t be above $903 per month, and for a married couple, $1,214. The asset limit is now $8,100 (+ up to $1,500 for burial expenses) for a single, and $12,910 for a couple (+ $3,000 for burial).

For SLMB, income for single = $1,084 per month, $1,457 for a couple. Assets are the same as above.

For QI-1, income = $1,219 for single, $1,639 for a couple – Same assets.

“Assets” means bank accounts, stocks, bonds, IRA’s, real estate and so on. It does NOT mean your house, your car or your stuff.

So: If you, or someone you care about, qualify for any of these acronyms, they will automatically qualify for Part D’s Extra Help! This could represent a lot of money to people who don’t have a lot of money.

And, by the way, if you’re eligible for QMB and have any Medicare Parts A or B “late enrollment penalties,” they will go away. If you’re eligible for SLMB or QI-1, and have a Part B penalty, it will go away. And, as noted last week, if you’re eligible for Extra Help and have a Part D penalty, IT will go away.

Some of the social service wonks among us are thinking, “You can’t fool me, Harvey. Those ‘Medicare Savings Programs’ are a form of Medicaid, and when you’re on Medicaid, they can come take your house!” Wrong. You’re talking about “estate recovery,” and estate recovery is specifically prohibited for Medicare Savings Programs (nice try, though).

So, what do you do? Go to any office of the “Department of Social and Health Services” (DSHS) and apply, or call any of the numbers at the end of this column for help from decent human beings. If (as noted last week) you go to www.socialsecurity.gov to apply online for Extra Help (which is a good idea), they will automatically (unless you tell them not to) send that info to the State, to start your application for the applicable Medicare Savings Program – Look: Why not? This is the government, and they already know everything they care to know about you, so why not get something out of it?

In fact, this year, Social Security will be sending info and applications to folks who appear, according to their records, to qualify for Extra Help and/or a Medicare Savings Program. I know better than most how much crap we’re all getting in the mail anymore; in fact, I’m the one who’s always screaming at you to beware of identity theft! – So, how would you know if the very official-looking thing you get in the mail is the “real deal?” Well, it will say, rather conspicuously, “Social Security Administration,” but if you’re not sure (and who could blame you?), bring it into any of our offices and we’ll help you figure it out.

See? I told you this was gobbledygook, but think about this: You worked hard all your life, doing whatever you had to do, to take care of yourself and your family, so just think of this as your “job,” and go take care of business, one day at a time.

And remember that where there’s life, there’s hope.

Peninsula Daily News Column 12-30-2010 "Resolve/Remember" (out of order, sorry, but a great read!)

I know what you’re thinking, and it isn’t pretty.

                But another thing you’re thinking is that we’re one day away from breaking last year’s New Year’s resolution, which was to never make another New Year’s resolution, by making more New Year’s resolutions.

                And we’re going to do that because (a) we think we SHOULD, and (b) we think everybody else is going to, which is a perception that certainly served us well in our teenage years; nonetheless, many of us will fall victim to the feeling that, because we are about to have a new year, we should also embark upon a new life.

                Thus, many of us will leap at the opportunity to further frustrate, disappoint and sully our image of ourselves by, once again, failing to accomplish what we have, to date, failed to accomplish, so allow me offer to some unsolicited advice: Don’t do it.

                I offer that insight because I have done it – Repeatedly! – And have the character defects to prove it! Alas, I’m under no delusion that any of you will actually take that advice; in fact, that could serve as your premiere 2011 New Year’s resolution: Don’t take this guy’s advice.

                OK, then, we’ll move on. I’m equally certain that the more mature (or scarred) among us have long since confronted some of the obvious “structural problems” associated with potential resolutions, like not thinking them all the way through; for instance, “I resolve to be more like my dog,” disregards the social faux pas of drinking out of toilets and marking a neighbor’s territory.

                I think you get it.

                And being the astute observer of human behavior that I am, I know full well that, by tomorrow night, many of us will be busily ignoring logic, experience and reality by “resolving” our little hearts out, so permit me to attempt to reduce the stress associated with this futile endeavor by offering up a few potential, if irresolute, resolutions; remember, none of us can do all of them and all of us can do none of them. So, for 2011, I resolve to:

• …give up guilt; further, I resolve to give up doing things that make me feel “guilty” (…and Yes: Everybody DOES already know);
• I resolve to remember whose fault I am;
• I resolve to remember that people who make a lot of money telling me what to believe, make a LOT of money!
• …and while I’m remembering to remember, I’ll recall that the “conventional wisdom” once said that the world was flat, and that if “change” were always bad, there wouldn’t be enough caves to house us all.
• I’ll keep in mind that the fact that something is “legal” doesn’t necessarily make it “right,” and that “debates” can be won, but “arguments” can’t, which will remind me that “disagreeing” and “disliking” are two very different things.
• I will note, on a regular basis, that it’s 2011, not 1776;
• I’m not going to spend money I don’t have on things I don’t need, then wonder why I don’t have money to spend on things I need;
• I’ll remember that, if everyone were as smart as I am, I’d having nothing to aspire to, so…
• …I’ll resolve to smile at people who make me feel stupid.
• I resolve to remember how I looked at “that age,”
• …and to remember why.
• I will NOT analyze enthusiasm!
• I resolve not to sing in the shower and breathe, at the same time.
• I resolve to say, “I love you” at least three times a day – More is better.
• I’ll keep in mind that the “Seven Deadly Sins” do not constitute a “bucket list”…
• …but that the “Golden Rule” probably does.
• I resolve to ask for help when I need it; then, take it.
• I’m going to remember that it’s exceedingly difficult for me to learn when I’m talking; in fact, I’ll note that my mouth is a lot like a gate at the zoo: Best to leave it shut until I know what’s going to come out of it.
• I’ll resolve to master “simple human courtesy;”
• …and I’ll remember that freedom is NOT just another word for “…nothing left to lose,”
• …but that “loneliness” probably is.

Where there’s life, there’s hope. Have a 2011 that you can be proud of.

Peninsula Daily News Column 1-13-2011 "Medicare Extra Help, or Gobbledygook"

This is a column about gobbledygook; at least, it’s going to sound like gobbledygook.

                In the interests of full disclosure, in which I’m only marginally interested, we ran this same column at about this time last year, except that these numbers are updated, and the reason that I’m putting you (and me!) through this is because this gobbledygook could save a lot of people, who could stand to save some serious money, some serious money.

                This relates to people who are on Medicare, about to be on Medicare or care about people who are. If none of those apply to you, or if you’re income and assets are such that none of this gobbledygook applies to you, your instinct is going to be to stop reading and turn to something less taxing, like taxes – Please don’t.

                I’m not saying “please don’t” because my ego is that fragile. I’m saying it because a lot of people who could be significantly affected by this stuff will never hear about it, so I have to rely on you to tell them, and maybe help them – Because you’re a decent human being, that’s why.

                You’re probably going to have to read this several times – It took me several times to write it. If it still doesn’t make any sense, but you think it might touch you or yours, just call any of the numbers at the end of this column and decent human beings will help you, without making you feel like an idiot.

                OK, ready? Here we go.

                We’ve just survived the 2010 “open enrollment” (OK, “annual election period”) for Medicare Part D prescription drug coverage plans – It ran from November 15^th through December 31^st. You may have heard the acronym “LIS,” which stands for “Low Income Subsidy,” or the phrase “extra help,” which means exactly the same thing.

                Folks who are eligible for Extra Help receive full or partial financial assistance, up to the “benchmark premium” (don’t worry about that right now), with their Part D premiums, deductibles and co-pays – That’s good! – And, in many cases, saves folks hundreds of bucks. To get this “Extra Help,” you have to be eligible for Part D, which means that you’re on Medicare Part A, Part B, or both.

                Assuming any of those apply to you, then you have to qualify for Extra Help by virtue of your income and financial assets. If you’re single, is your income at or below $1, 219 per month? If you’re married, is your income at or below $1, 639 per month?  You could even qualify for some partial assistance if you’re single and raking in $1,355 per month, or married and wallowing in $1, 821 per month. Maybe so? Good – We’re OK, so far. NOTE: Even if you’re income is a bit about above that, you may still qualify if you have earnings from a job or have other family living with you.

                Now, assets: Single = $8,100 up to 12, 510, and if married = $12, 910 up to $25,010. “Assets” means pretty much what you’d think it means: bank accounts, stocks, bonds, IRAs, real estate, etc. It does NOT count your home, your car, your stuff, like jewelry, furniture, blah blah. Now here’s what changed on January 1, 2010:

1. The cash surrender value of any life insurance policy is no longer counted as an asset;
2. If someone else helps pay some household expenses (e.g. South Dakota son pays the rent or Delaware daughter pays the utilities), that is no longer counted as “income;”

So, if either of those things has DISqualified you for Extra Help in the past, they’ve gone away, so it’s worth your time to reapply – Now! You can do that by going to www.socialsecurity.gov where there’s a very straightforward online application, or as noted, call any of the numbers at the end of the column for help. There’s no “penalty” for reapplying, or for being “wrong;” in other words, when you’ve got nothing, you’ve got nothing to lose.

Did I say “penalty?” Listen: We’ve all heard of the dreaded Part D “penalty,” wherein if you didn’t sign-up for a Part D plan when you were first eligible, you get socked with 1% of the national base premium for every month that you diddled around, and it NEVER GOES AWAY, right? Well, if you qualify for this Extra Help, any “penalty” goes away!

Now, anyone who reads this column with any degree of regularity is probably pretty certain that I have my…disagreements with Medicare Part D; nonetheless, I see it do a lot of good for a lot of people and it beats-the-heck out of nothing!

I know what you’re thinking. You’re thinking, “Is this some of that ‘health care reform’ stuff?” No. This is right now and was going to happen, anyway, so if it applies to you or yours, jump on it!

The other thing you’re thinking is, “Well, that wasn’t so bad – I think I get it,” to which I say “Hallelujah!” Then we’re ready to move on to Gobbledygook Part 2, “Medicare Savings Programs,” which have radically changed and can really do some folks some serious good, but we’re going to have to do that next week, so I’ll meet you here next Thursday, and we’ll all want to have our seatbelts on.

Peninsula Daily News for 1-6-11 "Some Medicare Updates"

Welcome to the first Thursday of 2011! Presumably (Hopefully!), most of us are “holiday survivors,” and with the exception of the odd leftover or fugitive piece of wrapping paper, are moving on to the new year; thus, if you happen to live in my world (which I almost always do), what do you need to know? Well:

• In case you missed it, somehow, Congress and the President managed to delay, once again, a 25 percent cut in Medicare reimbursements to doctors for one year. We look forward to replaying this traditional holiday crisis later this year;
• The traditional holiday crisis that we WON’T have to look forward to later this year is the Part D and Medicare Advantage Plan “annual election period” (think, “open enrollment”) running from November 15 through December 31^st, effectively nullifying any possibility of holiday joy. This year, it will run from October 15^th through December 7^th, sparing Christmas while sacrificing Halloween;
• Beginning last Saturday (January 1, 2011) and running through February 14^th, anyone with an Advantage Plan who wants to get out, can; specifically, you can move to “original” Medicare and will be allowed to pick up a Part D plan for drug coverage. You cannot switch from one Advantage Plan to another, nor can you join one, but you can disenroll; remember, any changes you make will take effect on the first day of the following month;
• Did I mention Part D? OK, this year, if you’re unfortunate enough to hit the “donut hole,” you’ll get discounts of 50% off brand-name drugs and 7% off generics. This replaces last year’s $250 windfall, so you will NOT get another $250 in 2011. And remember, if you receive the “low income subsidy” (“LIS,” also known as “extra help”), you have no donut hole. More on this later. And if you have no idea what the “donut hole” is, good for you! Forget the whole thing and go have a Danish;
• If you slept through the last half of 2010, you’ve probably figured out by now that there was no Social Security “COLA,” which puts a lid on the Part B premium, so what does that mean? Well, if you were on Medicare before 2010, your Part B premium will stay the same: $96.40 per month. If you joined up in 2010, your Part B premium will continue to be $110.50, and if you plan on enrolling in 2011, you can anticipate a premium of $115.40. If your annual income is more than $85,000 for a single person or $170,000 for a couple, you can expect to pay (or already are paying) more, and you’ll get socked with a higher Part D premium, too. Glutton for punishment? Want to know more? OK, go to http://www.socialsecurity.gov/pubs/10536.html and have a real nice day. Are you honestly having trouble affording your Part B premium? OK, think “Medicare Savings Programs,” and we’ll come back to that.
• And do you remember that when you first get Medicare Part B, you get (or got) a “Welcome to Medicare” physical exam as a freebie? OK, beginning this year (which is 2011, remember? Short-term memory is the second thing to go…), and sounding like a thinly-veiled ploy to lull us all in to thinking that “prevention” might make more sense than highly dramatic and highly EXPENSIVE “cures,” you can access a yearly “wellness visit,” which includes a pretty comprehensive health risk assessment, personalized prevention plans and advice and referral. This can only happen after 12 months on Medicare, which means (more or less) 12 months after your “Welcome to Medicare” physical. If you’re on “original” Medicare, you will have no copay for this, even if you haven’t met your Part B deductible, assuming that your medical provider accepts assignment. If you’re on an Advantage Plan, ask them about a copay or deductible first. Have no idea what I’m talking about? Have another Danish.
• Also beginning this year, there will be no out-of-pocket costs for some preventive services, like cardiovascular disease screening, diabetes screening, flu shots, pap test and pelvics, including breast exams, pneumococcal pneumonia shots and more; again, if you’re on original Medicare, there’ll be no copay, even if you haven’t met Part B deductible, assuming your provider accepts assignment. And if you have an Advantage Plan, ask them – First!
•  Last one for today: We’re all hearing a lot about budget cuts, and it doesn’t take long for them all to blur into a mass of unfathomable acronyms and programs, but here’s one that matters. If you are enrolled in a Medicare Part D prescription plan, and you are on BOTH Medicare and Medicaid, you know that the State of Washington has been paying your prescription copays - Beginning six days ago, that stopped. That means that you will paying anywhere from $1.10 to $6.30 per prescription, depending upon your actual income. Now, to some folks, that doesn’t sound like much, but if your income is low enough to qualify you for Medicaid, and you have 5,6,7 or more meds, it’s going to get expensive real quick. Be sure that you document these costs to your DSHS Financial Worker, and remember that you can always call any of the numbers at the end of this column to talk to decent folks who will try to help you, for free.

Enough? Pretty boring stuff, you say? Well, you ought to be in here! – But, the fact is that we’re all just trying to stay alive in America in 2011, and that requires paying attention – Entertainment, alas, is secondary.

And because that is what most of us are trying to do, I’m going to torture us all for the next two Thursdays talking about a couple of programs that I happen to know – For a fact! – Are allowing some people to eat more than once a day, so bear with me; specifically the “LIS” and “Medicare Savings Programs” that I threatened you with above.

So, if you really need some entertainment, go see what’s in that tin foil behind the butter – And DON’T call me!