The IRS Deductions Blog

Archive for October, 2010

Question: Anyone have any experience with SureHealth medical coverage? My plan at work stinks and I am looking elsewhere

Currently some Aetna plan that has a high deductible, minimal coverage, and costs $650 a month for my family. I am working in NY but live in NJ if that helps.

Answer: tri going to usnews.com it looks like some good plans for NJ residents.

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Consumer Reports: Picking A Health Insurance Plan

With open enrollment season now underway, consumers with employer-based health insurance can take advantage of the once-a-year opportunity to switch plans. To help consumers compare health insurance plans, Consumer Reports Health recently published rankings of 227 HMOs and Point-of-Service (POS) plans.

4 Steps to Saving Money on Health Insurance and Medical Expenses

Question: Are CLE courses tax deductible?

I understand that Continuing Legal Education courses (CLE’s) are deductible, as are professional dues and unreimbursed travel expenses…as a business deduction.

However, could you use the Lifetime Learning Credit? And would you be better off doing so?

Answer: If you are a solo practitioner, they would be business expenses on your schedule C, not subject to the 2% floor. If you are in a partnership, get the partnership to pay, even if it reduces your draw and have the deduction specially allocated to you on your K-1. If you are an employee and you had to pay for the CLE, you will be subject to the 2% floor.

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A budget for economic transformation

KUALA LUMPUR (Oct 15, 2010): Prime Minister Datuk Seri Najib Razak has tabled Budget 2011 with the theme Transformation Towards a Developed and High-Income Nation with a proposed allocation of RM212 billion – 2.8% higher that the amount for this year – to accelerate the transformation process by ensuring the successful implementation of projects and programmes under the 10MP, National Key Result …

Institute of Professional Bookkeepers of Canada

Items on Amazon Right Now for Standard Deduction Table 2008:

16. Full text of PM Najib’s Budget 2011 speech

Full text of PM Najib’s Budget 2011 speech

Senate Session 2010-04-20 (10:49:40-11:45:08)

Question: My group is an IRS exempt organization, but not a 501c3. How can we change designation to a 501c3?

Volunteer Firefighter Association: The person in charge before me listed us as a “Code 6″ (an organization described in section 170(c) other than a charity) & “Code 7″ (An organization to which contributions are deductible if made for the use of a goernmental unit.), but I believe that is incorrect. I am pretty sure that we are a 501c3 instead. Many years ago, funds were donated to support the fire department, now, the funds strictly support the volunteers. The department is now paid by tax dollars and mostly paid firefighters.
Thanks for the responses. Our association does ease the burden on the city by purchasing uniforms, etc for the volunteers so the city doesn’t have to.
Reason to change: I think most people (like myself) don’t understand the tax code and are hesitant to donate if an organization is not a 501c3. Additionally, my employer (and a few other volunteers) will match my hours with a donation, but only if the org is a 501c.

Answer: Whether your association can be a 501(c)(3) depends on what money contributed to the association will do. A volunteer firemen’s relief association that receives contributions that benefit only the volunteers and their families cannot be a 501(c)(3). If your organization exists only to provide disability and/or retirement benefits to members, then it cannot qualify. For a firemen’s association to qualify, it must “lessen the burdens of government.” If contributed money goes toward training volunteers to fight fires, for example, this is considered to be lessening the burdens of government.

If you wanted to change to a 501(c)(3), you would have to complete Form 1023 and wait for the IRS to rule. It’s a pretty complicated form, and quite a bit of narrative writing and documentation is involved.

So I have to ask, why it would matter so much whether you are a 501(c)(3) or a different type of organization described in section 170(c)? Whether or not you’re a 501(c)(3), contributions to the association will be tax deductible. That’s what section 170(c) permits–deductions for contributions to various kinds of organizations, including 501(c)(3) and others.

Items on Amazon Right Now for Irs Deductible Contributions:

Secret donations and gift tax _ a new conundrum

Outside poltical groups and the 35 percent gift tax _ a legal muddle for big donors

Churches to defy IRS on sermons Church and State uniting?

Question: Does Tricare for Life pay for Medicare Deductible of 135.00 dollars?

Answer: It looks like the Medicare dedutible will be taken out of your Social Security. Here’s what I found:

There is no fee for TRICARE For Life. All you need to do is pay your monthly fee for Medicare Part B. Your monthly fee for Medicare Part B is automatically deducted from your Social Security check once you are enrolled. Services in Military Facilities – You may continue to obtain medical services at military hospitals and clinics. Under a program known as TRICARE Plus, some beneficiaries may be allowed to enroll for primary care at military facilities, based on local availability. Check with your local military treatment facility for details. Services Payable by TRICARE and Medicare – In most cases, Medicare will pay first and the remaining out-of-pocket expenses will be paid by TRICARE. Services Payable by TRICARE but Not Medicare, such as overseas care – TRICARE will pay and the patient will be responsible for an annual deductible and cost share. Services Payable by Medicare but Not TRICARE, such as chiropractic services – Medicare pays as usual with TRICARE paying nothing. You must pay Medicare copays. Services Not Payable by Medicare or TRICARE, such as most cosmetic surgery – You are responsible for the cost of non-covered services

HOW REIMBURSEMENT WORKS
When you receive medical care, your doctor or hospital will usually file a claim with Medicare since by law Medicare must pay your bills first. When Medicare receives your claims, they will determine if the services you received are a benefit and, if so, pay your doctor and/or hospital. Medicare will then automatically send your claim to TRICARE for payment of the remaining amount. The TRICARE payment will automatically be sent to your doctor or hospital. You will receive an Explanation of Benefits from TRICARE indicating the amount they paid with a tear-off notice/appeal.

Hope this answers your question. If not you can call:

F O R M O R E I N F O R M A T I O N 1-888-DOD-LIFE (1-888-363-5433)

Items on Amazon Right Now for Tricare For Life Deductibles:

Knives Come Out to Slash Medicare in Deficit Reduction Committee’s New Draft

Dec. 2, 2010 – Senior citizens and baby boomers should have been restless last night – the two most important government programs they will depend on in their old age – Social Security and Medicare – were the major victims in a cost-slashing proposal by a government deficit reduction panel for improving the financial future of the U.S. government.

SHIIP Medicare Part D, Advantage & Supplemental Plans.flv