The IRS Deductions Blog

Archive for September, 2008

Question: I try to buy from “Goodwill” or “Salvation Army” so the money goes to a good cause, but is that tax deductible

I guess that I’ve always considered shopping at these places as “a charitable contribution” because I can get the items new elsewhere. I just think that its a great charity to help support so I try to do as much there as possible. But I’ve never claimed all the money that I put towards that on my taxes. I was told I could by someone at work but they’re not an expert so i thought I would try and get a solid answer. Anyone have any insight?

Answer: NO
Buying isn’t tax deductible DONATING is

Items on Amazon Right Now for Tax Deductible Goodwill:

Charities see change in post-holiday donations

A roof and walls may offer shelter, but its hardly a place to live.

Your Goodwill will go a long way

Question: Which provides better health Insurance coverage? Traditional Medical Coverage or Short-Term Medical Coverage?

I just transitioned from a student to a worker! In school, my university provided insurance services to me so it was not a big deal. However now I have to look for one myself. My employer says that I can select any type of plan I want and he will pay 50% of it, subject to a $100 per month cap.
I have never fallen sick, touch wood, and have never used insurance.
So, for a person who seldomly visits a doctor, which is better. Traditional: $ 70 per month $1500 deductible $7500 max. annual out of pocket. Roughly 30% Co-Payments an most of the services.
Short Term: $ 30 per month $500 Deductible $1000 max. annual out of pocket. Roughly 30% Co-Payments an most of the services.
Traditional +s: No need to pay in bulk, includes dental, vision and life.
Short Term +s: Low premium, deductable and Annual OOP.
Traditional -s: High Premium, deductable, Annual OOP and Co-Payments.
Short Term -s: Need to buy every 6 months, no dent. no life.

Answer: This is an excellent question!

In America people are purchasing “Short Term” Policies are opening themselves up to a “world of problems”. You see in the United States we passed a law that enables employees be offered “Cobra” , Cobra is for your “protection”. Let me give you a couple of “What ifs”
a. I go work for ABC Corp. and call up a few “slick” agents who sell healthcare and they sell me a Short Term policy, sounds great!..11months into the policy the Doctor discovers a tumor in my body, and says it is Malignant- I have cancer. So I call my short term company, and they say well your policy ends in 30days, I ask the company can I convert to a Permanente policy, and they say “NO”, because of your medical conditions.
b. Second Ex. I sign up with my employers plan, and I am diagnosed 11months into the plan with Cancer, and I decide to quite employment, I am offered Cobra!. So lets keep going, lets say I pay for Cobra for 18months (until it ends) and I am still having Chemotherapy, and thus un-insurable by health companies. Here is the Good news!!!..I am eligible for HIPPA coverage !!!..”lifesaver”..any company offering health insurance will have to accept me into a HIPPA plan.

As you can see the only way a person can take a risk with a short term policy if they can “See the future”.. and if your crystal ball shows you not needing any health services over your lifetime, then just refuse coverage!..

Do not trust any salesperson, read articles and do your research, Paul Zane’s books are pretty good.

Items on Amazon Right Now for Health Coverage Deductible:

Health Calendar for Dec. 31 to Jan. 7

If you want an item listed in this calendar, please e-mail ittwo weeks in advance to calendar@santamariatimes.com, fax it toAttn: Calendar at 928-5657, or mail it to Health Calendar, SantaMaria Times, 3200 Skyway Drive, Santa Maria, CA 93455. Include theevent time, date, address and a contact phone number.

Short Term Health Insurance Plan 30 – 180 days Coverage

Question: Is my new insurance policy a good deal? (Progressive)?

I just got new auto insurance and it seems too good to be true because I’ve been paying $300/month prior to this for just my fiancé and I. It’s through Progressive and here are the details:

Answer: It is not bad, but you might want to up the property damage to at least 100,000. If you were in an accident that was your fault and totaled your car and an expensive Mercedes or BMW it could easily be more than 50,000 in damage. The company will only pay that amount and will come after you for the difference. You might raise your Comprehensive Deductible to 500 and see if that won’t help offset the difference in premium.

Items on Amazon Right Now for Deductible Reimbursement Insurance:

Doctors’ offices, clinics getting busier

Hospitals, clinics, including eye clinics, pharmacies and other medical providers gear up to be busy at the end of the year. This December is no different.

Health Reimbursement Arrangements with The Choice Care Card