Important Information for People with Disabilities

Seven Tax Tips for Recently Married Taxpayers

2011-08-19T10:11:00.000-04:00

The Internal Revenue Service is trying to help newly weds and those who will marry yet in 2011. Here are some important steps you need to take to avoid stress at tax time. Here are seven tips for newlyweds.

1. Notify the Social Security Administration Report any name change to the Social Security Administration so your name and Social Security number will match when you file your next tax return. File a Form SS-5, Application for a Social Security Card, at your local SSA office. The form is available on SSA’s website at www.ssa.gov, by calling 800-772-1213 or at local offices.

2. Notify the IRS if you move If you have a new address you should notify the IRS by sending Form 8822, Change of Address. You may download Form 8822 from www.IRS.gov or order it by calling 800–TAX–FORM (800–829–3676).

3. Notify the U.S. Postal Service You should also notify the U.S. Postal Service when you move so it can forward any IRS correspondence or refunds.

4. Notify your employer Report any name and address changes to your employer(s) to make sure you receive your Form W-2, Wage and Tax Statement, after the end of the year.

5. Check your withholding If both you and your spouse work, your combined income may place you in a higher tax bracket. You can use the IRS Withholding Calculator available on www.irs.gov to assist you in determining the correct amount of withholding needed for your new filing status. The IRS Withholding Calculator will give you the information you need to complete a new Form W-4, Employee's Withholding Allowance Certificate. You can fill it out and print it online and then give the form to your employer(s) so they withhold the correct amount from your pay.

6. Select the right tax form Choosing the right individual income tax form can help save money. Newly married taxpayers may find that they now have enough deductions to itemize on their tax returns. Itemized deductions must be claimed on a Form 1040, not a 1040A or 1040EZ.

Choose the best filing status A person’s marital status on Dec. 31 determines whether the person is considered married for that year. Generally, the tax law allows married couples to choose to file their federal income tax return either jointly or separately in any given year. Figuring the tax both ways can determine which filing status will result in the lowest tax, but usually filing jointly is more beneficial.

Back-to-School Tips for Students and Parents Paying College Expenses

2011-08-16T15:33:00.000-04:00

I've started a new blog. Hope you like it.

Paul
paul@paulnidich.com

Medicare Part B Premiums Are Now a Deductible Health Insurance Expense

2011-02-17T17:59:00.000-05:00

Medicare Part B Premiums Are Now a Deductible Health Insurance Expense

New Rule Ensures Students Get Health Insurance Protections of the Affordable Care Act

2011-02-10T11:48:00.000-05:00

New Rule Ensures Students Get Health Insurance Protections of the Affordable Care Act

Earned Income Tax Credit For Your 2010 Tax Return

2011-01-28T13:26:00.000-05:00

Earned Income Tax Credit For Your 2010 Tax Return

IRS Announces 2011 Standard Mileage Rates

2010-12-06T07:43:00.000-05:00

IRS Announces 2011 Standard Mileage Rates

Deficit Commission Report Will Satisfy No One; That's Why It Should Be Studied Dispassionately

2010-11-11T12:07:00.000-05:00

Deficit Commission Report Will Satisfy No One; That's Why It Should Be Studied Dispassionately

Tax Problem -- FTC Cracks Down On "Pennies On The Dollar" Tax Firms - Cincinnati Tax Problem Attorney Blog

2010-10-11T08:50:00.000-04:00

Tax Problem -- FTC Cracks Down On "Pennies On The Dollar" Tax Firms - Cincinnati Tax Problem Attorney Blog

Find out what I can do for you, whether you are an individual, a couple, or a company.

Health Exchanges Move Foward

2010-10-06T06:48:00.000-04:00

Health Exchanges Move Foward

California takes a giant step into the future.

$19.9 Million Awarded in Grants for Training of Special Educators to Improve Services for Children with Disabilities

2010-10-05T11:45:00.000-04:00

$19.9 Million Awarded in Grants for Training of Special Educators to Improve Services for Children with Disabilities

Tax Problem -- House Ways and Means Chair, Sandy Levin, Has No Idea What the Future Holds For Tax Legislation This Year

2010-09-27T17:06:00.000-04:00

Tax Problem -- House Ways and Means Chair, Sandy Levin, Has No Idea What the Future Holds For Tax Legislation This Year

A must read for those who live in southwest Ohio, as well as those concerned about the income tax and estate tax problems.

Tax Problem -- Consider IRS Taxpayer Advocate for Assistance

2010-09-15T11:31:00.000-04:00

Tax Problem -- Consider IRS Taxpayer Advocate for Assistance

Republicans Block Plan To Ease Filing Requirements For Small Businesses

2010-09-14T14:36:00.000-04:00

Republicans Block Plan To Ease Filing Requirements For Small Businesses

Elder Law -- Property Tax Homestead Exemption

2010-09-02T15:09:00.000-04:00

Elder Law -- Property Tax Homestead Exemption

Tax Problem -- State sues TV's 'tax lady' for alleged swindles

2010-08-24T10:19:00.000-04:00

Tax Problem -- State sues TV's 'tax lady' for alleged swindles

Most High Income Bracket Taxpayers Won't See Big Increases From Eliminating Bush Tax Cuts

2010-08-12T13:43:00.000-04:00

Most High Income Bracket Taxpayers Won't See Big Increases From Eliminating Bush Tax Cuts

New Tax Tables Will Save Ohio Taxpayers Millions

2010-08-04T18:09:00.000-04:00

New Tax Tables Will Save Ohio Taxpayers Millions

Increased Medicaid Funding Set To Pass After August Recess

2010-08-04T13:39:00.000-04:00

Increased Medicaid Funding Set To Pass After August Recess

Elder Law -- Life Insurers Give Beneficiaries Checkbooks Not Insurance Proceeds

2010-07-30T11:54:00.000-04:00

Elder Law -- Life Insurers Give Beneficiaries Checkbooks Not Insurance Proceeds

An important alert for life insurance beneficiaries to read.

The Americans With Disabilities Act -- Happy Birthday

2010-07-26T09:02:00.000-04:00

The Americans With Disabilities Act -- Happy Birthday

Americans With Disabilities Act To Celebrate 20 Years

2010-07-22T16:36:00.000-04:00

Americans With Disabilities Act To Celebrate 20 Years

Tax Problems - Expenses of Service Animals May Be A Tax Deductible Medical Expense

2010-07-16T14:32:00.000-04:00

Tax Problems - Expenses of Service Animals May Be A Tax Deductible Medical Expense

Elder Law -- Is Avoiding Probate Enough?

2010-07-14T12:16:00.000-04:00

Elder Law -- Is Avoiding Probate Enough?

Read about why simply avoiding probate may be the wrong objective when you do your estate planning.

Estate Tax Problem -- A Possible Resolution

2010-05-12T09:38:00.000-04:00

Estate Tax Problem -- A Possible Resolution

Tax Reform Bill Extends Medicare's Solvency by Twelve Years

2010-04-29T07:51:00.002-04:00

In an extensive report evaluating the new health care reform legislation, including the reconciliation amendments, passed by Congress on March 23rd and March 30th, respectively, the Chief Actuary for the Centers for Medicare and Medicaid Services projects that the effect of the legislation will extend the solvency of Medicare from 2017 until 2029. The report also estimates that Medicare services will be provided through the end of this decade to an additional 33 million people. Link to Report.

Domestic Terrorism Strikes Cincinnati, Ohio

2010-03-24T09:25:00.000-04:00

A concerted effort is underway by domestic terrorists to intimidate supporters of Health Care Reform. On Sunday night, a brick was thrown through a window at Democratic Headquarters in Cincinnati, Ohio. This was repeated at several Democratic Headquarter sites in various cities in the United States. Also, a Congresswoman received a threatening telephone call that included veiled threats towards her children.

This effort is being promoted by a man living (and blogging) in Alabama, calling on his supporters to be prepared to take up arms to fight the federal government.

To those of you who have thought the intimidation efforts of Tea Party activists and others, including Glenn Beck and Rush Limbaugh were funny, but not dangerous, think again

States' Rights, The Federal Government, and Left-Wing Socialism

2010-03-21T16:07:00.001-04:00

Today is the day the House is supposed to vote on the Health Care bill. As I was watching C-Span, a Republican Congressman was decrying the federal government's takeover of health care. He said that people should first go to their local governments for help. Then they should go to their state governments for help. The federal government had no business trying to socialize health care.

Socialism has always been the second major slur to be thrown against socially necessary legislation. (The first was communism, of course.) One problem with the Congressman's position is that he put no time limit on how long we are supposed to wait for our local governments to solve problems before seeking help at the federal level.

Everyone agrees that there are real, major problems with our health care system. For example, almost everyone agrees that health insurers should not be allowed to discriminate against people with pre-existing conditions. But, who regulates health insurance companies? The States. And who permits them to discriminate? The States. Why does discriminating against people with pre-existing conditions need to be fixed? Because the States have failed to protect their citizens.

This leaves us in a terrible predicament, if we were to use the Congressman's logic. 1) It's wrong to discriminate against people with pre-existing conditions. 2) The states have failed to prevent this discrimination. BUT, 3) the federal government should not do anything about this, because that would be socialism. Does anybody see a problem, here?

Of course, health care is not the first issue to run up against this circular reasoning. Voting Rights have. Retirement issues have. Age Discrimination has. Sex Discrimination has. Labor unions have. Handicap Discrimination has. Is there a pattern? Of course there is.

People get tired of waiting for local government to fix their problems. People get tired of waiting for state government to fix their problems. The only way these problems can get fixed, then, is to have the federal government fix them. And it takes generations for the federal government to get around to it.

The health care bills are not perfect. There is no such thing, and the legislative process guarantees that anything that can get passed the House and the Senate and signed by the President is going to be a three or four humped camel, at best. But socialism and "it's not perfect" are the worst reasons for the federal government not to act.

Pass the bills. Let the opponents fix them when they get the power to do so. They always do get the power. They rarely fix them, though. They just want to defeat the other party, not act in the best interest of the public.

Is Rob Portman a Conservative?

2010-03-07T10:47:00.000-05:00

A recent blog, http://tinyurl.com/ ybmalyy, notes that former Republican Leaders Roy Blount and Rob Portman "are running for Senate seats and discovering their Washington résumés to be something of a liability at a time when the Tea Party and disaffected fiscal conservatives have new political power. "

Ohioans should read the paragraphs about Portman's efforts to reach out to Ohio Tea Party groups, while at the same time avoiding efforts by the same Tea Party groups to get answers from him.

Isn't politics wonderful?

Estate Planning is Not Just For The Wealthy

2010-02-08T10:56:00.001-05:00

Special Needs Estate Planning is critically important to families that include individuals with disabilities. Read more about this important issue at http://tinyurl.com/yzvfk7d

UNEMPLOYMENT FALLS IN NOVEMBER

2009-12-04T09:51:00.002-05:00

Contrary to the expectation of economists and the wishes of the Republican leadership in Congress, unemployment fell in November from 10.2% to 10.0%. The number of jobs lost in November fell from 190,000 in October to just 11,000 in November. Read the article in "The Hill."

REPUBLICAN OBSTRUCTIONISM

2009-12-03T12:44:00.004-05:00

Senator Judd Gregg (R - NH) has written a letter to his Republican colleagues reminding them of most, if not all, Rules of the Senate that can be used to prevent a final vote on any bill being considered by the Senate, but directly aimed at the current Health Care Reform bill. When one looks at these devices, it is clear that the "Greatest Deliberative Body" can be tied into knots by even one reckless Senator, much less all Republicans acting in concert.

So far, the Republicans' bark is worse than its bite. Nonetheless, the closer the Senate gets to actually voting on the reform bill, the harder it will be for the minority Republicans to refrain from using these delaying tactics.

Of course, one cannot complain about the Republicans using delaying tactics, alone. The Democrats are not totally blameless. They, too, interfered with Senate action while they were in the minority. It is time, however, to change these Senate Rules that allow, if not encourage, reckless actions on the part of a minority to frustrate the will of a significant majority of Americans when that will is not subversive to the American way of life.

Informative Comments on Health Care Reform by California Nurses Association

2009-11-10T10:28:00.003-05:00

Once again, Medical News Today publishes a timely and informative comment about the recently House passed Health Care reform bill. Rose Ann DeMoro, Executive Director of the California Nurses Association/National Nurses Organizing Committee, issued a statement on November 9th noting some of the strengths and shortcomings:

Of all the torrent of words that followed House passage of its version of healthcare reform legislation in early November, perhaps the most misleading were those comparing it to enactment of Social Security and Medicare.

Sadly no. Social Security and Medicare were both federal programs guaranteeing respectively pensions and health care for our nation's seniors, paid for and administered by the federal government with public oversight and public accountability.

While the House bill, and its Senate counterpart, do have several important reform components, along with many weaknesses, neither one comes close to the guarantees and the expansion of health and income security provided by Social Security or Medicare. More

Chelation Therapy Drug Treatment & Children with Autism

2009-11-06T11:51:00.002-05:00

Medical News Today reports two small studies involving 65 children from ages 3 - 8 suggests that a drug approved by the FDA for treatment of lead poisoning may help children with autism who have a problem with heavy metal toxicity. These studies used a drug known as DMSA which was reported to increase the excretion of several toxic metals, including lead, with no adverse side effects.

These two studies also suggest that using DMSA might improve some of the symptoms of autism such as language, cognition, and sociability, although formal, randomized, double-blind, placebo-controlled studies are still needed.

News item.

Paul's comment: Small studies are useful to help suggest areas needed for appropriate follow-up trials. At the same time, much of what has plagued the autism community in the past are small, open studies or anecdotal references that send parents desperate to find that "magic bullet" trying yet one more treatment that may help a handful of children but are totally ineffective for the vast majority of those afflicted with autism. We stopped years ago desperately seeking the magic bullet for our son, but that decision has left me ever plagued by the thought "what if?"

One summary of latest House Healthcare bill

2009-11-04T17:44:00.002-05:00

The Academy of Managed Care Pharmacy has issued a summary of the "Pelosi" health care reform bill, HR 3962. Medical News Today has "an AMCP staff summary of some of the key provisions of interest to the Academy." See http://tinyurl.com/ya69j25

Down Syndrome Births Decline

2009-11-04T08:58:00.002-05:00

Patti Dudek posted a note about the decline in Down Syndrome births, primarily due to abortions, on her blog: http://tinyurl.com/ylx39oq The main point is that many of the abortions result from lack of information about Down Syndrome and not having an opportunity to meet families that have a Down Syndrome member.

Follow Patti's blog. It is always quite informative.

Paul

National Resource Directory for Veterans Useful for Others, Too

2009-11-03T11:49:00.008-05:00

I recently came across a Resource Directory as a result of a feed from disability.gov. The title of the particular page that addresses adaptive technology for automobiles is "Where Can I Learn About Adapting Automobiles for Disabilities." (Available at http://tinyurl.com/y8q5syf) Although nominally for "Wounded, Ill, and Injured service members," this site has a wealth of information that would be useful to almost everyone in the disability community. If you are part of the disability community, whether disabled, yourself, a family member, or volunteer, or a person who works with the disabled, please take some time to explore this wonderful site. You might also go to the government's Disabilities Web Site and choose one of the alternatives on the right-hand side of the page to stay updated.

As long as I am making reference to one Resource Directory, another Resource Directory can be found at by the Center for Infants and Children with Special Needs (at Cincinnati Children's Hospital Medical Center). This is a fantastic resource to find help for anyone, child or adult, who has a disability. (Available at http://tinyurl.com/ycagagj)

Blind and Visually Impaired Social Security Recipients Win Major Legal Victory

2009-10-22T10:09:00.003-04:00

Blind and Visually Impaired Social Security recipients won a major victory on Tuesday when Judge William Alsup of the United States District Court for the Northern District of California found that the Social Security Administration was violating the Rehabilitation Act of 1973.

In 2005, The American Council of the Blind sued the Social Security Administration for failing to provide important information to, among others, blind and visually impaired recipients of social security in alternative formats such as Braille or other media besides its standard printed notices.

The case finally came to trial before Judge Alsup for a seven-day trial. On October 20th, Judge Alsup issued his Findings of Fact and Conclusions of Law and his Judgment that Social Security was violating the Rehabilitation Act. Plaintiffs were represented by a number of attorneys, including the Disability Rights Education & Defense Fund.

The DREDF press release with information about other counsel for plaintiffs and links to the decision is found at http://www.dredf.org/SSA/SSA-Judgment-10-20-09.pdf

Paul's Comment:

Four years of litigation to come to a conclusion that seems as plain as the nose on one's face is a slap in the face to the disability community. The amount of money spent by the government to fight this litigation is the height of irresponsible waste of taxpayer's money. This sad saga is a further reminder to the disability community of the need to stand together, support each other's causes, and fight the intellectually weak and spineless, in this case, the Social Security Administration.

Please help by disseminating this information to everyone who may possibility be affected by this decision.

Will First-time Homebuyer Credit Be Extended?

2009-10-21T14:55:00.003-04:00

On Tuesday, Democratic Senator Christopher Dodd, Chair of the Senate Banking Committee, and Republican Senator Johnny Isakson agreed that the first-time homebuyer tax credit should be extended through June, 2010. Both see this tax credit as having a stabilizing effect of the housing market and would like to see it extended.

It's any body's guess, of course, whether this expression of extending the credit will make its way into law. The first-time homebuyer's credit is scheduled to expire at the end of this year.

STARTING SOCIAL SECURITY AT 62: A GREAT IDEA FOR SOME FAMILIES

2009-10-14T10:50:00.005-04:00

Much has been written about the question “When should I start taking my social security benefits?” The pros and cons have been well discussed, but those discussions have left out one element that could make a critical difference in the answer to this very important question. That element is the little known social security benefit called “Disabled Adult Children,” a social security disability income program.

Social Security considers this to be a “child’s” benefit, because it is paid on a parent’s earnings record, not the child’s. To receive benefits under this program, the child need not ever have worked. The qualifications for these benefits are:

■ The adult child must have a disability recognized by social security and have been diagnosed before age 22.

■ The adult child must be at least 18 years old.

■ The adult child must be unmarried.

■ The adult child’s parent (sometimes step-parent or even grandparent or step-grandparent) must be deceased or receiving social security retirement or disability benefits.

Once qualified, even though the adult child must be “totally” disabled, he or she is allowed to earn up to $980 per month. (This figure changes from year-to-year.) Further, since this disability income payment will likely be higher than the current Supplemental Security Income benefit, the adult child should apply as soon as qualified to determine which benefit is higher.

Further, and perhaps more importantly, once the adult child has been receiving Social Security Disability Income benefits for 24 months, he or she qualifies for Medicare, no matter how old he or she is. Hypothetically, then, the adult child could be receiving both Medicaid and Medicare, as well as SSDI benefits, and still only be in his or her twenties.

Moreover, the parent only needs to apply and qualify for social security benefits. The parent still may be employed and even earning too much money to actually receive any social security cash benefit. (IRS calculates your retirement benefit based upon your age and earnings record. For example, assume an individual is entitled to $1,400 per month at age 62. If that individual earns approximately $50,000, he or she will not receive any cash benefit. [These figures are not exact but a rough approximation of a hypothetical situation.] If the individual does not receive any cash benefit prior to full retirement age, qualifying for social security at age 62 will have no negative affect on that individual’s full retirement age monthly cash benefit.)

It is, therefore, critical for all adults who have children with disabilities to understand the Disabled Adult Children benefit program of Social Security. Deciding to apply for social security benefits at age 62 seems to be a “no-brainer” for parents of children with disabilities who qualify for DAC benefits.

RESOURCES:

Disabled Adult Children Information from Social Security

Social Security Benefit Calculators

A former social security claims representative who wishes to remain anonymous. She frequently clashed with her supervisors by applying the law the way it was supposed to be applied.

Operation Hero Miles

2009-10-06T15:39:00.003-04:00

Follow this LINK to a really great way to help troops in Iraq and Afghanistan get home for free on leave and families of injured soldiers to fly to hospitals across the country to visit with them. You can donate frequent flyer miles to the Fisher House Foundation for this purpose.

Whatever your feelings are about these wars, we are all sensitive to the tremendous sacrifices being made by our servicemen and servicewomen and want to help where we can. Please try to help, if you can.

Thanks.

Paul

National Report Pegs Autism Prevalance at 1 in 91

2009-10-06T07:05:00.005-04:00

Bethesda, MD (October 5, 2009) --

A national report released today in the journal Pediatrics reveals that 1 percent of U.S. children ages 3-17 have an autism spectrum disorder, an estimated prevalence of one in every 91children. This is a dramatic increase from the one in 150 prevalence rates currently reported.

“This national study charts a dramatic rise in the prevalence of autism in the United States and we applaud this administration’s recognition that autism is an urgent public health priority,” said Autism Society President and CEO Lee Grossman. “But families today are asking: how high must these prevalence rates rise before the nation responds? Significant resources must be directed toward screening and diagnosis, affordable interventions that treat the whole person and comprehensive education plans to foster lifelong skill development so that people with autism will have the ability to work and live independently.”

The report, entitled “Prevalence of Parent-Reported Diagnosis of Autism Spectrum Disorder among Children in the US,” published in today’s issue of Pediatrics, was conducted by the Department of Health and Human Services National Survey of Children’s Health, using data from the Centers for Disease Control and Prevention. The report was conducted via a telephone
survey of over 78,000 parents, and determined a point prevalence of 110 per 10,000 respondents, roughly 1 percent of the population of children in the United States.

On a constituent call to discuss the report, the CDC reported that its initial analysis of the Autism and Developmental Delay Monitoring project data, due out later this fall, confirm the 1 percent figure. This report will also contain more data on age of diagnosis, groups affected, and access
to interventions.

The increasing numbers have long-term economic costs to the country, as autism is a chronic medical condition affecting people across the lifespan. “Lifespan services, particularly for adults, are typically inadequate and inappropriate,” Grossman stated. “This new data should be a call to action to the government to improve and increase services and supports first.”

The Autism Society has been working with Congress on several key bills, which have stalled. “The information in this new report highlights the pressing need for additional services, support and treatments for families affected by autism spectrum disorders,” said Senator Dick Durbin (D-IL). “My bill, the Autism Treatment Acceleration Act, will help children and adults with autism gain better access to coordinated services, improve training for professionals treating these disorders, and will relieve the financial burden on the millions of families struggling with this disability.”

This bill, if funded, would provide funding for applied research into effective interventions, the first ever demonstration grants on adult services, create an adult prevalence study, and fund family support and information networks.

“Autism affects millions of American families, and the cost of diagnosis, early intervention, and treatment imposes a heavy burden on most of them,” said Congressman Mike Doyle (D-PA), co-chair of the Congressional Autism Caucus. “This legislation, the Autism Treatment Acceleration Act of 2009, would improve the dissemination of information between autism researchers and service providers, improve training for professionals treating autism spectrum disorders, and mandate that health insurers cover the diagnosis and treatment of autism spectrum disorders. Enactment of this legislation would do a lot to help millions of American families.”

“The increase in the reported prevalence of autism across the nation testifies to the urgency of executing a comprehensive strategy in response to this public health emergency,” said Congressman Chris Smith (R-NJ), co-chair of the Congressional Autism Caucus. “For its part, Congress must ensure robust funding to support aggressive programs of research, education,
and services. Furthermore, Congress needs to enact additional legislation, such as the Autism Treatment Acceleration Act of 2009, that will establish the infrastructure and mechanisms for delivering appropriate services across the lifespan to individuals with autism and their families. We must look to maximize the reach and impact of our investments and activities by closely
coordinating government efforts with those of national advocacy organizations, such as the Autism Society.”

About Autism

Autism is a complex neurodevelopmental disability that typically appears during the first two years of life and affects a person’s ability to communicate and interact with others. Autism is defined by a certain set of behaviors and is a “spectrum disorder” that affects individuals differently and to varying degrees. There is no known single cause for autism, but increased awareness and funding can help families today.

About the Autism Society

The Autism Society, the nation’s leading grassroots autism organization, exists to improve the lives of all affected by autism. We do this by increasing public awareness about the day-to-day issues faced by people on the spectrum, advocating for appropriate services for individuals across the lifespan, and providing the latest information regarding treatment, education, research and advocacy. For more information, visit www.autism-society.org.

Are the costs of ABA therapy deductible as a medical expense?

2009-10-05T19:57:00.007-04:00

I approach answering this question with some trepidation. I have not found a clear-cut answer, and there are aspects of ABA (applied behavioral analysis) therapy with which I am not familiar. Therefore, I am going to put some disclaimers directly into this post:

I. IRS Circular 230 Disclaimer

NOTHING in this post is intended or written to be used for the purpose of avoiding Federal Tax penalties, and it cannot be used by the reader or any taxpayer to avoid Federal Tax penalties, and this post was not written to support the promotion or marketing of any transaction or matter discussed in it.

II. Consult Your Tax Advisor

This is not legal advice that you can use in any way. Consult your tax advisor about whether you can or should take this as a medical deduction.

III. This does not create an attorney-client relationship.

Now, back to the question:

It is my belief that ABA therapy does qualify, in whole or in some parts, as an expense that is properly deductible on Schedule A as a medical expense. How much of the therapy you can deduct will depend upon the actual modalities used in your particular situation. The fact that something is called ABA therapy does not necessarily make it "medical" in nature. You might have to look at each particular activity and deduct some but not all activities.

Therapy to diagnose, cure, mitigate, treat, or prevent a disease or for the purpose of affecting any structure or function of the body, is deductible as a medical expense. Based upon my understanding of ABA therapy, the premise of ABA therapy would qualify under this test for deductibility as a medical expense.

Mary Travers Dies

2009-09-17T00:49:00.003-04:00

Mary Travers, one of my son's all-time favorite singers, passed away on Wednesday from complications of chemotherapy for a bone-marrow transplant she had after being diagnosed with leukemia a few years ago. Her passing leaves yet another huge void for many of us who grew up in the '60s and '70s. Ms. Travers was 72 years old. Article

A case of questionable taste and questionable tax deductions

2009-09-15T17:23:00.004-04:00

From "Suits & Sentences," a blog written by Michael Doyle:

September 15, 2009

The lawyer, the hooker and the tax deduction

Say this about New York attorney William G. Halby: He's pretty darn ballsy.

As recounted in a U.S. Tax Court case decided Monday, Mr. Halby in 2004 claimed a $65,934 tax deduction for his use of prostitutes and a $2,368 deduction of sundry books, videos and pornographic magazines. For 2005, Mr. Halby claimed $5,005 worth of deductions for books, videos and pornographic magazines and $42,152 for prostitute services.

There was no explanation for the fall-off in commercial sex use.

As noted in the Expatriate Owl blog, Mr. Halby had previously lost a state tax case over similar issues. Nor did the IRS did not look kindly on the medical deductions. As U.S. Tax Court Judge Joseph Robert Goeke noted:

"Petitioner did not visit these prostitutes as part of a course of therapy prescribed by his doctor, nor did petitioner ask his doctor to prescribe any sort of sex therapy. Petitioner kept track of these visits in a journal. The journal included the date, the name of the “service provider”, and the amount. Petitioner did not discuss these visits with his doctors afterwards to determine their impact on his health."

Mr. Halby nonetheless argued that he should be able to deduct expenses because of the health benefits associated with a good sex life. The judge, though, reasoned that a tax deduction can't be allowed for an illegal activity -- frequenting prostitutes -- nor for porn that wasn't prescribed by a therapist. Stated the judge:

"Petitioner has been an attorney for 40 years and specialized in tax law. Petitioner should have known that his visits to prostitutes in New York were illegal and that (regulations and)...caselaw do not support his claimed deductions. Accordingly, petitioner is liable for the (tax) penalty."

Accordingly, Mr. Halby is on the hook for a $21,491 tax deficiency and a $4,298 penalty.

H1N1 Preparedness Guide for Small Businesses

2009-09-15T09:25:00.005-04:00

The U. S. Department of Homeland Security, with the cooperation of the U. S. Small Business Administration, the U. S. Department of Health & Human Services, and the Center for Disease Control and Prevention, has issued a Guide for Small Businesses to prepare for the spread of H1N1 influenza. It is a short booklet, and it is applicable to far more situations a small business faces than just the H1N1 flu. It also has a section containing tips for the individual. Small business owners and their attorneys should review this booklet and take appropriate action. Copies can also be printed out and distributed to employees.

Industry groups weigh in on Obama's speech

2009-09-11T13:31:00.004-04:00

Healthcare industry groups generally agreed with President Barack Obama that the status quo on the current healthcare system was not sustainable, but offered differing views on how the system should be fixed.

Insurance regulation was a chief focus of the president's speech on Wednesday night. Obama said that a government-run public option would be a way to get insurers to lower costs. In a written statement, Karen Ignagni, president and CEO of America's Health Insurance Plans, reiterated the organization's longtime position that a public plan was not the solution to improving coverage. “New health insurance reforms and consumer protections will solve the problem without creating a new government-run plan that will disrupt the quality coverage that millions of Americans rely on today,” she said.

“America's hospitals stand ready to do our part to extend coverage to more Americans and to continually strive towards providing high-quality care for patients that is more efficient and affordable,” said Richard Umbdenstock, president and CEO of the American Hospital Association, in a written statement. The AHA continues to have concerns on how a public plan would be constructed, but is “glad to see that President Obama is open to exploring other ideas that would help us achieve our shared goal of universal coverage.” -- Jennifer Lubell

From ModernHealthcare.com

Posted: September 10, 2009 - 1:00 pm EDT

Paul’s Comment: Why has the insurance industry not already put into effect those “insurance reforms and consumer protections” that Ms. Ignagni finds acceptable? Since it takes an earthquake-sized shift in electoral politics to move Congress to enact fundamental reforms, if Congress doesn't enact some type of public option now, will there ever come another time when Congress will adopt a public option before it is too late?

College Tax Credit Changes Could Help Students with Disabilities

2009-09-11T11:12:00.003-04:00

Section 1004 of The American Recovery and Reinvestment Act ("ARRA") made several changes affecting college expenses and tax credits for the 2009 and 2010 tax years. Tax-free distributions from 529 plans are expanded, and the Hope Credit for college expenses are significantly broadened.

While contributions to 529 plans are not deductible for federal income purposes, distributions from 529 plans are tax-free, if they meet certain criteria. The ARRA adds computer technology and equipment or Internet access and related services to the list of expenses that qualify for tax-free treatment. The existing list of qualified expenses include tuition, required fees, books, supplies, equipment, special needs services, and, if the student is at least a half-time student, room and board.

The Hope Credit can now be used for a student's first four years of college, rather just the first two years. The ARRA also increases the maximum amount of the tax credit to $2,500; increases the income limitations to qualify to $80,000 of modified adjusted gross income for individuals and $160,000 for "married filing jointly" with a phaseout for taxpayers with higher incomes; adds books to the allowable expenses; and, in some cases, allows up to 40% of the credit to be refundable.

For more information, see the "Tax Benefits for Education: Information Center."

Note: For some families, generally at the higher end of the tax brackets, it might be more advantageous for the student to file his/her own tax return to get a tax refund because of this refundable credit. Check with your tax advisor about this issue.

The Time for Bi-Partisanship is Over

2009-09-08T17:15:00.004-04:00

Like virtually every President in recent memory, President Barack Obama came to Washington with one of his stated goals being to emphasize bi-partisanship. In more colloquial terms, President Obama seemed to be a lover, not a fighter. But the time to fight, every President learns, is now. Except that some Presidents learn this lesson too late to be an effective President.

Everytime President Obama has talked about bi-partisanship, the Republican leadership has kicked him in the teeth. They have no interest in bi-partisanship. They want the stimulus package to fail. They want health care reform to come to naught. They are desperately looking for campaign issues for 2010 and 2012. They are interested in returning to power only for power's sake, not for the sake of the country.

It's time President Obama jettisons "bi-partisanship" and goes about the business of governing. He may need the votes of two or three Republican Senators to get health care reform passed, but that is not bi-partisanship. It is simply cobbling together a viable majority to get critical legislation passed. If the cost of getting health care reform legislation passed is watering down the proposal to get 70%, then do it.

Democrats never seem to get the message. There is no purity in politics. When Hubert Humphrey was not pure enough for many Democrats, we got Richard Nixon as President. When Jimmy Carter wasn't great enough, we got Ronald Reagan, then George W. Bush. It's time for progressives to lead the way, picking up support where possible; sacrificing perfection where necessary.

Lyndon Johnson understood the need to get important legislation passed. When he proposed his War on Poverty, a Commission studied the issue and suggested that it would take about $30 billion dollars to do it right. All President Johnson could get out of Congress was $5 billion. While this was a prescription for failure, he took what he could get, and we are better off for it. The "War" was lost in the first days, but we did get Head Start out of the ashes. What a wonderful gift to the country. We may not have gotten all of the community organizing we needed to make the War successful, but we got some very treasured programs and principles that have proved successful and long-lasting.

It's time for President Obama to "break some eggs." He needs to get significant health care reform passed this year. It doesn't have to be perfect; it just has to be real reform. Mr. President: Your Presidency and the country hang in the balance. The time to act is now.

UBS Settlement -- We Can Help

2009-08-18T19:05:00.006-04:00

If you are or know of someone about to be ensnared in the UBS settlement with the Justice Department, we can help. You are not necessarily destined to go to jail because of the settlement; but you need to act fast.

Call me at 513.563.1595 or e-mail me at info@paulnidich.com ASAP.

Liar, Liar, Pants on Fire

2009-08-12T18:49:00.002-04:00

August 12, 2009 (From NPR News Headlines)

The story has spread so fast even President Obama got asked about it at one of his town hall meetings. But no, the health care overhaul bill now working its way through Congress would not require seniors to learn how to die prematurely.

It's not, however, because people aren't saying it. The most notable spokeswoman for the cause is Elizabeth McCaughey, the former lieutenant governor of New York. McCaughey's last brush with major public prominence came during the debate over then-President Bill Clinton's health plan, when she wrote a highly controversial critique of the proposal published in The New Republic arguing the bill would have bound everyone inside the new system.

This time McCaughey has been making the talk radio rounds arguing that the latest version of a health overhaul has the government sponsoring suicide education.

"One of the most shocking things I found in this bill, and there were many, is on Page 425, where the Congress would make it mandatory — absolutely require — that every five years, people in Medicare have a required counseling session that will tell them how to end their life sooner, how to decline nutrition, how to decline being hydrated, how to go into hospice care," McCaughey said on former Sen. Fred Thompson's radio show July 16.

That claim won her a "pants on fire" rating for its lack of truth from the nonpartisan Politifact.com Web site run by the St. Petersburg Times. But it has nonetheless spread like wildfire, being repeated not just on blogs and radio shows but by Republican members of Congress as well. Said a joint statement from House Minority leader John Boehner (R-OH) and Republican Policy Committee Chairman Thaddeus McCotter (R-MI), "this provision may start us down a treacherous path toward government-encouraged euthanasia if enacted into law."

The claims have been highly upsetting to groups like the National Hospice and Palliative Care Organization, which strongly support what the bill really does — pay health care providers to talk to Medicare patients about creating so-called advance directives, or ways to express their health care desires in writing before they become incapacitated.

In fact, says Kathy Brandt, vice president of professional leadership, consumer and caregiver services, advance directives need not be about cutting off care at all. "If you want everything to be possibly done; all medical treatment to be done for you until your last breath, that's what advance directives can do for you," Brandt says. "I think most people who are healthy adults, not facing a terminal or life-limiting conditions, would want treatment, and nothing that's in any of the health care reform bills that I've heard or seen does anything that would prohibit that."

So why have the demonstrably false claims about death gotten so much life? Harvard public opinion expert Robert Blendon says it's because seniors are very sensitive about their health care. "Seniors worry more about their health care than any other group in American life," Blendon says. "They feel more vulnerable."

Blendon says it's no accident that opponents of the health overhaul chose to single out a provision aimed at seniors to make their case, because if seniors think they have something to lose from the current health care overhaul, "[they] are really going to be very active opponents of this, because that's not what they signed up for," he says.

And seniors, unlike many younger people, are very likely paying more attention to the health care debate.

"The seniors are really going to read and listen to everything and be concerned if they think as a result of the bill their current circumstances are going to deteriorate," Blendon says.

Senate Committee Hears Testimony on Autism

2009-08-07T09:48:00.004-04:00

From the August 7, 2009, edition of Autism Speaks e-Speaks Newsletter:

"U.S. Senator Tom Harkin (D-IA), chairman of the Senate Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies, chaired a hearing Wednesday, August 5 on the state of autism research, treatments and interventions. Senator Harkin was joined by Senator Thad Cochran (R-MS), ranking member on the Senate Appropriations Committee, and Senator Arlen Specter (D-PA), member of the Senate Appropriations Committee. The Senators heard testimony from Tom Insel, M.D., director of the National Institute of Mental Health; Geraldine Dawson, Ph.D., chief science officer for Autism Speaks; and four parents of children with autism, Joshua Cobbs, chair of the Iowa Autism Council, Nicole Akins Boyd, vice chair of the Mississippi Autism Task Force, David Miller, board member of the Northern Virginia Community College, and Dana Halverson, co-founder of BEAT-Iowa. Click here to view the hearing on CSPAN.org."

Paul's Comment: I watched a repeat of the testimony on Tuesday night on C-SPAN. They all did a wonderful job presenting their positions on the needs of the autism community. At several points, there was some light friction between Dr. Insel and some of the others about NIMH's research agenda. It is well worth watching, but I would recommend having some tissues with you when you do.

However, while Chairperson Harkin and Ranking Republican Thad Cochran were very sympathetic and supportive, at one point they leaned towards each other and suggested that they might want to introduce a bill to end insurance discrimination against people on the autism spectrum. This was extremely disheartening, because they apparently didn't know (or remember) that the House Energy and Commerce Committee had adopted an amendment to this effect to President Obama's Health Care Reform effort last week and a similar effort in the Senate had already been effectively killed.

===

House Energy and Commerce Committee passed an autism insurance reform amendment to “America’s Affordable Health Choices Act of 2009,” H.R. 3200, sponsored by Rep. Mike Doyle (D-PA), Chairman of the Congressional Autism Research and Education Caucus in the House. Link to article.

Does the IRS Owe You Money?

2009-08-05T10:50:00.007-04:00

Who couldn’t use a little extra cash this summer! The IRS may have some money for you.

If you have not filed a prior year tax return and are due a refund, you should consider filing the return to claim that refund. If you are missing a refund for a previously filed tax return, you should contact the IRS to check the status of your refund and confirm your current address.

Unclaimed Refunds

Some people may have had taxes withheld from their wages but were not required to file a tax return because they had too little income. Others may not have had any tax withheld but would be eligible for the refundable Earned Income Tax Credit.

· To collect this money a return must be filed with the IRS no later than three years from the due date of the return.

· If no return is filed to claim the refund within three years, the money becomes the property of the U.S. Treasury.

· There is no penalty assessed by the IRS for filing a late return qualifying for a refund.

· Current and prior year tax forms and instructions are available on the Forms and Publications web page of IRS.gov or by calling 800-TAX-FORM (800-829-3676).

· Information about the Earned Income Tax Credit and how to claim it is also available on the IRS web site, IRS.gov.

Undeliverable Refunds

Were you expecting a refund check but didn't get it?

· Refund checks are mailed to your last known address. Checks are returned to the IRS if you move without notifying the IRS or the U.S. Postal Service.

· You may be able to update your address with the IRS on the “Where’s My Refund?” feature available on IRS.gov. You will be prompted to provide an updated address if there is an undeliverable check outstanding within the last 12 months.

· You can also ensure the IRS has your correct address by filing Form 8822, Change of Address, which is available on IRS.gov or can be ordered by calling 800-TAX-FORM (800-829-3676).

· If you do not have access to the Internet and think you may be missing a refund, you should first check your records or contact your tax preparer. If your refund information appears correct, call the IRS toll-free assistance line at 800-829-1040 to check the status of your refund and confirm your address.

Hamilton County Commissioners Need to Hear From You!

2009-08-03T12:23:00.002-04:00

Once again the Hamilton County Commissioners are about to deal a devastating blow to the disabilities community. Here is a letter from Cheryl Phipps, Superintendent of the Hamilton County Board of MR/DD. Please read it and take action to help.

July 31, 2009

Dear MR/DD Supporter:

On August 12, the Hamilton County Commissioners will decide the amount of the levy that will be placed on the November 3 ballot for us. We need your help in the next two weeks to convince them to choose an amount that will enable us to serve new people.

They are considering three options for the 5 year levy period, all of which are below the amount recommended by the tax levy consultants who reviewed us earlier this year. Those options are:

1) $416.8 million – our requested amount. We will be able to serve new people each year of the levy, and we will have enough money to use as match for Medicaid waivers
2) $400.2 million– an amount that will result in waiting lists. We can only serve 10 new adults each year (the need is 70) and enroll 10 people each year on waivers (the need is 100) with this amount.
3) $388.6 million - a devastating amount! We will have to cut services currently provided and not be able to serve new people who need us.

Please contact the County Commissioners before August 12, tell them what MR/DD services mean to you, and urge them to vote for the $416.8 million. Their address is 138 E. Court Street, Cincinnati, OH 45202, and their e-mail addresses and phone numbers are:

David Pepper david.pepper@hamilton-co.org 946-4410
Todd Portune todd.portune@hamilton-co.org 946-4401
Greg Hartmanngreg.hartmann@hamilton-co.org 946-4405

On behalf of the 8,000 individuals we now serve and the thousands more who will need our services in the next 5 years, thank you!

Sincerely,

Cheryl Phipps, Superintendent
HCBMR/DD

The Sad State of The Healthcare Debate

2009-07-29T10:00:00.007-04:00

The following was found on "The Hill's pundits blog." The author, Peter Fenn, comments on "The Republicans and Small Business and Healthcare." As an illustration of the way ALL politicians spin issues, it is sickeningly accurate. The politician's rule is: ignore what the other (person) (reporter) (candidate) says or the question he or she asks. Answer the question you wanted the reporter to ask; address the issue you want to address, whether relevant or irrelevant to the issue to which you are responding. But, most importantly, never, ever let the facts get in the way.

July 28, 2009 – 9:36 am

By Peter Fenn

The Republicans and Small Business and Healthcare

I just love the Republicans’ rhetoric on how they stand up for small businesses.

Democrats propose any kind of tax on millionaires and it suddenly becomes an attack on “America’s small businesses.” We try and put together a healthcare plan that makes it possible to keep costs down for small businesses and allows them to insure employees and it becomes about “big government.”

Democrats go after Goldman Sachs for their average salaries of $900,000 when unemployment is nearing 10 percent and we are “socialists.” Democrats complain that Goldman received over $10 billion last year in bailout money, parlay that into $5.1 in first-quarter profits and prepare to shell out $11.4 billion to their executives so far this year and we are attacking the capitalist system.

Now we find out that Goldman has a Cadillac of a healthcare plan that costs over $40,000, just less than the average American family makes in a year. This plan is truly amazing — no co-pays, no deductibles, no cost for prescriptions and don’t worry about pre-existing conditions. And, of course, all free — and it is not taxed, all deductible. Now, tell me, how does that help our small businesses?

Here are the facts on small businesses: 1. Firms with fewer than 20 employees account for 18 percent of private-sector jobs but almost 25 percent of net employment growth in the past 15 years; 2. However, small businesses pay nearly 20 percent more for the same health insurance policy than larger firms because of broker fees, administrative costs and adverse selection; 3. While 99 percent of firms with over 200 employees offer health insurance only 49 percent of firms with three to nine employees do.

Furthermore, there has been a decrease from 2002 to 2008 of small businesses (three to nine employees) offering health insurance — 58 percent down to 49 percent.

Now, explain to me how this is working so well for small businesses. Since I started my firm over 25 years ago I have paid 100 percent of my employees’ health plans. I was glad to do it and lucky enough to be successful. But, like all small-business owners, I have seen those costs rise considerably. My partner and I saw first-hand how pre-existing conditions can raise the costs; we watched as our premiums went up over the years much faster than inflation or the cost of living. Again, we are fortunate that we can afford it, but many small businesses cannot.

To say that we can’t afford health insurance reform is counterintuitive — we cannot afford not to pass real change to the current system. Small business deserves it and needs it — now. Republicans should get on board and really help America’s small businesses.

© 2009 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc.

How to Create a Special Needs Trust in Ohio

2009-07-23T01:54:00.001-04:00

How to Create a Special Needs Trust in Ohio

Shared via AddThis

Some Useful Articles

2009-07-20T09:42:00.005-04:00

For those of you who have not yet filed your 2008 income tax return, here's How to Find Your 2008 Stimulus Payment.

For more information about about non-profits, here's How to Start a Non-Profit Organization.

Paul

Take Action to Support Autism Insurance Reform in Congress

2009-07-08T09:13:00.001-04:00

Federal Action on Health Care Reform legislation is taking center stage in Congress. Even though more and more states are passing laws to require insurance companies to provide full treatment coverage for people with autism, the vast majority of states do not. Thus, there is good cause for federal legislation in this area.

Please follow this link to Autism Speaks. You will find the telephone numbers for House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid, so you can call their offices and leave messages. You will also be able to send e-mails to your local representative and senators. Please take time to do this. This is very important to parents (like me) and people with autism (my son). Please spread the word.

Thank you very much.

Sincerely,

Paul A. Nidich

Case of autistic Marine brings recruiting problems to the forefront

2009-07-07T15:09:00.001-04:00

Here is an incredibly sad article from the Los Angeles Times about a young man with high-functioning autism who was recruited into the Marines. Not surprisingly, he didn't quite understand the rules, being yelled at constantly by his drill instructors, and all the other matters faced by a new recruit at boot camp. So, he simply decided to leave to go home (to a group home where he had been living when he signed up) but didn't make it out the gate. When his drill instructors finally learned he had autism, instead of having him evaluated for discharge, they simply eased up on him; so he could get through boot camp successfully.

He did get through the eleven-week program (somehow). He was then sent to Camp Pendleton for infantry training. Shortly thereafter, he was arrested for desertion and another crime. That was one year ago. That's right: He has been in the brig at Camp Pendleton for one year. He is also facing another charge, FRAUDULENT ENLISTMENT. The young man is under a conservatorship and cannot legally enter into a contract by himself. A motion to dismiss the charges against him on the ground that he didn't have the legal capacity to enlist was denied. Another hearing in this matter is scheduled for July 27th.

PLEASE pass on this post to everyone else you know who might want to help this young man. Also send it to your Representative and Senators.

READ MORE

Supreme Court Approves Reimbursement for Private Special Education Services

2009-06-24T10:29:00.003-04:00

In Forest Grove School District v. T. A., decided by the Supreme Court on June 22, 2009, the issue decided was whether the 1997 Amendments to the IDEA prevented Courts from ordering school districts from having to pay for private special education services. An Administrative Due Process Hearing Officer held that the Forest Grove School District violated the IDEA by not providing a free appropriate public education (FAPE) and ordered the school district to reimburse T. A. for private special education services in T. A.'s junior and senior years of high school. The school district refused and filed suit in the federal district court.

The district court held in favor of the school district, but the United States Court of Appeals for the Ninth Circuit reversed. The Supreme Court accepted the case for review. The 6 - 3 majority (perhaps to become a 7 - 2 majority if and when the Senate confirms Judge Sonia Sotomayor) held that the 1997 Amendments did not change the law and affirmed the Ninth Circuit's decision. The following quotation from the end of the majority's opinion sets out the standard:

"When a court or hearing officer concludes that a school district failed to provide a FAPE and the private placement was suitable, it must consider all relevant factors, including the notice provided by the parents and the school district's opportunities for evaluating the child, in determining whether reimbursement for some or all of the cost of the child's private education is warranted."

Opinion

History, Briefs, and Other Information

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HHS Announces Initiatives in Support of the “Year of Community Living”

2009-06-23T11:38:00.001-04:00

June 22, 2009 -

Goal is to create Aging and Disability Resource Centers in every State

In support of President Obama’s proclamation of the “Year of Community
Living,” HHS Secretary Kathleen Sebelius today announced a funding
opportunity that will make it easier for older people, younger adults,
and their families to learn about and access health and long-term care
options through Aging and Disability Resource Center Programs (ADRCs).
ADRCs provide “one-stop shop” sources of information, one-on-one
counseling, and streamlined access to programs and services that can
enable people to remain in their own homes and communities.

Read Full Press Release with excellent hyperlinks for more information

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HUD TO OFFER HOUSING ASSISTANCE TO 4,000 AMERICANS WITH DISABILITIES

2009-06-23T11:18:00.002-04:00

June 22, 2009 - The U.S. Department of Housing and Urban Development today joined President Obama's commemoration of the tenth anniversary of the Supreme Court's Olmstead decision by announcing that it will offer rental assistance to 4,000 non-elderly families with disabilities, including 1,000 vouchers specifically targeted to those transitioning out of nursing homes and other care facilities. Through its funding notice, HUD is seeking comment from public housing authorities and others to ensure this critically needed assistance is distributed and administered in the most effective manner possible.
Read Full Press Release

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Student Loans, Loan Forgiveness Program, and More

2009-06-22T10:36:00.001-04:00

President Obama's budget contained programs for tuition and loan forgiveness for students.

Go to the GovCentral Web site for more information.

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EEOC Votes to Revise Rules to Conform to ADA Amendments Act

2009-06-19T10:02:00.001-04:00

The U.S. Equal Employment Opportunity Commission (EEOC) has voted to revise its regulations to conform to changes made by the ADA Amendments Act (ADAAA) of 2008, which would make it easier for an individual seeking protection under the ADA to establish that he or she has a disability.

View Original Article

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Federal Health Care Reform Legislation

2009-06-16T14:18:00.002-04:00

There seems to be general agreement among members of Congress that there is a significant need for health care reform. The rising cost of health care cannot continue unabated, and the need to provide affordable health care for most, if not all Americans, is subject to little debate.

Legislative action on this issue cannot be allowed to turn on anecdotes. Unfortunately, people always have and always will fall through the cracks. During the debate in Congress, one will hear of isolated incidents after isolated incidents; the person who had to wait an inordinate amount of time to get a follow-up appointment; the person who was sent to the wrong specialist. These are the statements of members of Congress who realize the need for reform, but want the reform to wind up looking as much like the current system as possible.

The real question for people to focus on is how large are the cracks in the system, and how to close those gaps? A person with cerebral palsy may need physical therapy every week for his or her life. It is a common feature of health insurance plans to pay for only 10 visits per year for physical therapy. This is a major crack in the system and needs systemic reform.

A number of organizations that are involved with people with disabilities are working hard to try to shape the legislation to address the needs of people with disabilities. One such organization is Easter Seals. You can go to its Health Care Reform Web Site for information or directly to its "Support Health Care Reform Legislation" site to send messages to your members of Congress. I hope you will go to its "Support" web page; but, if not, at least, become familiar with the issues at its Health Care Reform site.

Thank you.

Paul

Emergency Information Forms for First Responders and Families

2009-06-12T09:54:00.001-04:00

Autism Speaks, an organization devoted to helping people with Autism Spectrum Disorders in many, many ways, has posted a Web Site for its Autism Safety Project, a collaborative project of families and first responders. This project has provided pdf files where all families who have have people with disabilities in them can print out the files to have on hand in case of an emergency or even a simple trip to the doctor. These forms can be found at this web site, http://www.autismsafetyproject.org/site/c.kuIVKgMZIxF/b.5058283/k.BE40/Home.htm?sid=200546156.

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Ethical Wills and Legacy Letters

2009-06-11T12:40:00.001-04:00

Ethical Wills and Legacy Letters may be particularly helpful to parents and siblings of children with special needs. The following is an except from an article written by Attorney Andrew Hook of Portsmouth, Virginia and published on Attorney Robert Fleming's blog at http://gerilaw.typepad.com/elderlaw/

A recent Investment News article by Kathleen M. Rehl discussed the value of parents leaving “legacy letters’ for their children and grandchildren to share after the parents are gone. The author described the letter her mother had written shortly before her death. “Please know how important you are to me and how much I love you. Life has been such a fascinating and interesting adventure with you, my family, being a big part of this journey.” She wrote about her values, lessons life taught her, and her love for each member of the family. Ms. Rehl says that “[w]hat she experienced during her 84 years of life was much more valuable than the material stuff she left behind.”

Moe information about Ethical Wills can be found at www.ethicalwill.com. The website includes samples of ethical wills, written by people at various stages of their lives.

Ms. Rehl says that writing a legacy letter not only helps loved ones by communicating the meaning of the author’s life, but is a gift for the writer. “In reflecting upon the past and recording thoughts on paper, writers learn about themselves, ponder what they stand for and have the opportunity to articulate that which is closest to their hearts.” People can write their initial letter and keep it updated each year.

View Original Article

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Federal Student Aid - Opportunity.gov

2009-06-11T08:34:00.001-04:00

Provides information on federal student aid and career resources to help unemployed workers pay for education and training to find new job opportunities.

View Original Article

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Comprehensive Autism Legislation Introduced in House of Representatives

2009-05-19T10:34:00.005-04:00

The Autism Society of American reports that major legislation regarding autism was introduced into the House of Representatives last week as a companion to a bill introduced into the Senate in April.

"The Autism Society applauds this comprehensive autism legislation focused around enhancing the quality of life for individuals on the autism spectrum and their families.

The Autism Society especially applauds the inclusion of support services for adults on the autism spectrum in this bill. Currently, the federal government provides for educational services until age 21; however, autism is a lifelong disorder, and when the school bus stops coming, individuals and families are often left to fend for themselves. ATAA creates a demonstration project to provide an array of services to adults with autism spectrum disorders, including: postsecondary education; vocational and self-advocacy skills; employment; residential services, supports and housing; nutrition, health and wellness; recreational and social activities; and transportation and personal safety.

The legislation also would provide for the establishment of a national network in order to strengthen linkages between research and service initiatives at the federal, regional, state and local levels, and facilitate the translation of research on autism into services and treatments that will improve the quality of life for individuals with autism and their families. A national data repository would be created to share emerging data, findings and treatment models.

Other key aspects of the bill include:

* the establishment of a national training initiative on autism and a technical assistance center to develop and expand interdisciplinary training and continuing education on autism spectrum disorders; and
* a requirement that health insurers cover the diagnosis and treatment of autism spectrum disorders, including Applied Behavior Analysis therapy, assistive communication devices and other effective treatments.

The Autism Society needs your help in order to help pass this critical legislation. Please contact your U.S. Representative and ask him or her to co-sponsor the bill. We’ve composed an e-mail describing all the vital aspects of this bill but it will be especially effective if you add your own story describing how ATAA would help you and your family.

The time to act is now. Please support this important issue today, and urge your friends to take action as well. Together, we can improve the quality of live for individuals with autism across the lifespan."

Keeping Track of Healthcare Reform in Washington

2009-05-12T07:24:00.002-04:00

For those of you interested in President Obama's effortsd to reform the nation's healthcare system, here is an article regarding the pledge of some healthcare providers to reduce the cost of healthcare and to support portions of the President's program.

Ohio Insurance Reform

2009-05-11T15:12:00.011-04:00

ACT NOW

Your Senator Can Bring About Fair

Health Insurance Rates

Ask Your Senator to "Keep the Open

Enrollment Reforms in H.B. 1"

Paying claims costs insurers money, so they
have a powerful reason to protect themselves
against covering individuals in less-than-perfect
health. In Ohio, insurers can deny coverage to
individuals with pre-existing conditions, exclude
coverage for a pre-existing condition, or charge
higher premiums.

Over a decade ago, Ohio created an Open
Enrollment Program for people who were denied
coverage. Unfortunately, that Program no longer
works because the extremely high premiums are
out of reach for most Ohioans. Over 196,063
Ohioans between ages 50-64 are uninsured and
that number is growing with more lay-offs and
plant closures every day. For these individuals,
who do not have employer-based coverage,
insurance rates in 2010 are expected to average
$815 per individual per month. Some insurers
are advertising rates that exceed $3,000 per
individual per month.

This can be fixed. The new Open Enrollment
Program in House Bill One will narrow the
wide variation in premiums. It will also limit
"cherry picking"... also known as "segmentation,"
to prevent unfair discrimination against individuals
with less-than-perfect health or with perceived
health risks.

There's no time to delay.

Please Call 1-888-844-5009

You will be connected to the office of Your Senator.

Tell Your Senator...

"Fix It Now. Keep the Open Enrollment Reforms

that were passed

by the House. HB 1 -- State Budget Bill."

Please send this Alert to others who support fair insurance rates.

From AARP

Tax Disaster May Await You

2009-04-30T19:37:00.004-04:00

The "Making Work Pay" tax credit will result in tax savings of up to $400 for individuals and up to $800 for couples, depending upon your earned income. The credit is 6.2% of your earned income up to the maximum credit amounts. (Individuals making more than $95,000 and couples making more than $190,000 are ineligible to receive any of this credit.

To implement this tax credit, the IRS adjusted the withholding taxtables, effective April 1, 2009. So employees have started receiving more money in their paychecks. Unfortunately, the withholding tables do not withhold enough money for several groups of taxpayers.

Those at greatest risk are workers with more than one job, retirees who have federal income taxes withheld from their pension payments, college students who are claimed as dependents on their parents' tax returns, and couples who file joint returns and both work.

This problem has been brought to the IRS' attention, but so far, the IRS has yet to figure out a way to fix the problem.

Some examples:

A. A single taxpayer who has two jobs making at least $20,000 at each job. The withholding tables will give her an extra $800, but she will only get a $400 tax credit. This means she'll have her tax refund reduced by that extra $400, or she will have to repay Uncle Sam the extra withholding she has already spent.

B. A married couple with a combined income of at least $50,000 will get the full $800 tax credit. But if they both work and each earns at least $13,000, they will have $400 too little withheld from their paychecks.

C. A college student claimed as a dependent by his parents and making at least $10,000 will have $400 too little withheld from his paychecks. He'll have to repay the whole $400 to the IRS by April 15, 2010.

D. Pension benefits are not earned income. Those taxpayers who have taxes withheld from these benefits will likely have to repay the $250 payment social security is sending them this month (May). If they do qualify for the tax credit, they will have to deduct this $250 from their credit.

What can you do to try to protect yourself? The IRS, recognizing that there is a problem has created a "Withholding Calculator" on its web site, http://www.irs.gov.

Go to the IRS web site and in the Search box on its home page, type in "IRS Withholding Calculator." The first result will likely be a link to the calculator. You will need to have your most recent pay stubs and your most recent tax return. Follow the directions carefully and fill in the information requested. You may find that you will have to fill out a new withholding form, Form W-4, to give to your employer(s), or you may need to get Publication 919, "How Do I Adjust My Tax Withholding?"

This may turn out to save you from possible financial disaster next Spring.

Special Needs Trust

2009-04-21T22:14:00.001-04:00

Check out this SlideShare Presentation:

Special Needs Trust

View more presentations from PaulNidich.

New Sales Tax Deduction for Vehicle Purchases in 2009

2009-04-20T16:53:00.000-04:00

The Stimulus package passed in early 2009 created a special sales tax deduction for new vehicles purchased between February 16 and December 31, 2009. Here's a brief article about the deduction:

How to Take Advantage of the New Sales Tax Deduction for Vehicle Purchases

Bill Introduced in the Senate to Eliminate 2-Year Medicare Waiting Period

2009-04-02T14:16:00.003-04:00

Here is some information about a bill introduced in the Senate on March 25th.

S.700
Title: A bill to amend title II of the Social Security Act to phase out the 24-month waiting period for disabled individuals to become eligible for Medicare benefits, to eliminate the waiting period for individuals with life-threatening conditions, and for other purposes.

Sponsor: Sen Bingaman, Jeff [NM] (introduced 3/25/2009) Cosponsors (3)
Latest Major Action: 3/25/2009 Referred to Senate committee. Status: Read twice and referred to the Committee on Finance.

COSPONSORS(3), ALPHABETICAL [followed by Cosponsors withdrawn]: (Sort: by date)

Sen Brown, Sherrod

Sen Collins, Susan M.

Sen Stabenow, Debbie

How to Find Your 2008 Stimulus Payment Amount

2009-04-01T13:14:00.003-04:00

Everyone who files a 2008 federal income tax return needs to know what he/she/they received as their 2008 Stimulus Payment. If you're like me, you have no idea. Here is an article I wrote that explains how you can obtain this information. How to Find Your 2008 Stimulus Payment Amount.

How to Get an Automatic Sixth Month Extension to File Your Tax Return

2009-03-15T12:03:00.003-04:00

If you are having trouble getting your tax return ready to file b y the April 15th due date, you are entitled to receive an automatic 6 month extension to file your return. BUT, you cannot get an extension to pay your taxes. Your extension application must include a payment of all taxes you will owe; otherwise you will be subject to possible penalties and interest. If you don't file you return by April 15th, and don't get an extension, you will be subject to penalties and interest for failing to file your return on time, plus penalties and interest for failing to pay your taxes on time. Here's how to get your automatic extension: How to Get an Automatic Six Month Extension to File Your Tax Return.

Do you qualify for the new Making Work Pay tax credit?

2009-03-09T10:50:00.003-04:00

The American Recovery and Reinvestment Act of 2009 created a new, refundable personal tax credit for 2009 and 2010. This credit is known as the "Making Work Pay" tax credit. For those who qualify, the credit equals 6.2% or earned income, up to $400 for individuals and $800 for married couples who file jointly.

Most working Americans will qualify for the credit, but nonresident aliens and taxpayers who can be claimed as dependents by someone else do not qualify. A taxpayer must include a valid social security number on your tax return. Couples filing jointly need only to have one valid social security number to qualify.

The other issue to qualify for this credit is your Modified Adjusted Gross Income. If your MAGI is less than $75,000 for individuals or $150,000 for couples filing jointly you qualify for the full amount ofthe credit. If you MAGI falls between $75,000 and $95,000 for individuals, $150,000 and $190,000 for joint filers, your credit will be reduced on a sliding scale. If your MAGI exceeds the top level, you won't qualify for the credit at all.

Also, some people will receive the $250 payments provided by the Act. These individuals, recipients of social security railroad retirement benefits, or veteran benefits, will have their credits reduced by that amount.

The IRS has issued new withholding tables to account for this credit, so you don't have to do anything. When your employer begins using these new withholding tables in the beginning of April, you should see an increase in your take home pay which will continue through the rest of the year.

If, however, you are self-employed and pay estimated taxes through the year, you can either wait until the end of the year to take the credit or reduce your estimated payments to reflect the amount of the credit to which you are entitled.

More information is available on the IRS web site, www.irs.gov.

Flexible Spending Arrangements (FSA)

2009-03-03T22:19:00.004-05:00

I posted an article on eHow about Flexible Spending Arrangements (FSA)(aka Flexible spending accounts). The article explains the basic requirements for an FSA, the risks and benefits, the amount of money you can put into the FSA, and the tax treatment of contributions and withdrawals. You can find the article at http://www.ehow.com/how_4821716_arrangement-fsa-maximum-tax-savings.html

UNFILED 2005 RETURNS OWED $1.3 BILLION

2009-03-03T10:49:00.004-05:00

The IRS issued a press release on March 2nd calling attention to the fact that people who have not yet filed their 2005 tax returns may be owed as much as $1.3 billion in tax refunds. These unfiled returns must be filed by April 15, 2009, or the possible refunds will be lost forever.

If you are one of these individuals, please take action immediately. If you have lost your W-2s or other tax information, there are ways of getting this information directly from the IRS. Don't let this stand in the way of your getting a refund.

For more information, see the following IRS press release.

Tax Workshop in Cincinnati on 2/26/09

2009-02-24T12:35:00.001-05:00

I will be doing a workshop on tax issues for people with disabilities this Thursday, February 26, 2009, from 6:30 pm until 8:00 pm at the Pleasant Ridge Community Center, 5915 Ridge Road. For more information, or to register, please call or e-mail Sue Schindler at sue@archamilton.org or 513-821-2113 x 112.

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How to respond to nasty letters from the IRS

2009-02-19T14:33:00.001-05:00

A three-part "series" I posted on eHow may help you, if you ever get into a fix with the IRS:

Part 1 - http://www.ehow.com/how_4792037_respond-nasty-letters-irs-part.html

Part 2 - http://www.ehow.com/how_4792091_nasty-letters-irs-part-ii.html

Part 3 - http://www.ehow.com/how_4792148_nasty-letters-irs-part-iii.html

I hope you never need these, but here they are, if you do.

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IRS lists some benefits for disabled taxpayers

2009-02-12T08:53:00.003-05:00

Tax Benefits for Disabled Taxpayers

There are several tax credits and benefits available to qualifying taxpayers with disabilities as well as to the parents of disabled children. Listed below are several tax credits and other benefits available if you or someone else listed on your federal tax return is disabled.

The Earned Income Tax Credit The EITC is available to disabled taxpayers as well as to the parents of a child with a disability. The EITC is a tax credit that not only reduces a taxpayer’s tax liability but may also result in a refund. Many working individuals with a disability, who have no qualifying children, but are older than 25 and younger than 65 do, in fact, qualify for EITC. Additionally, if the taxpayer’s child is disabled, the age limitation for the EITC is waived. The EITC has no effect on certain public benefits. Any refund you receive because of the EITC will not be considered income when determining whether you are eligible for benefit programs such as Supplemental Security Income and Medicaid.

The Credit for the Elderly or Disabled
This credit may be available to taxpayers who are age 65 or older, or who are younger than 65 and are retired on permanent and total disability.

Child or Dependent Care Credit
Taxpayers who pay someone to come to their home and care for their dependent or spouse may be entitled to claim this credit. There is no age limit if the taxpayer’s spouse or dependent is unable to care for themselves.

Impairment-Related Work Expenses
Employees who have a physical or mental disability limiting their employment, may be able to claim business expenses in connection with their workplace. The expenses must be necessary for the taxpayer to work.

Impact on the Standard Deduction
Taxpayers who are legally blind may be entitled to a higher standard deduction on their tax return.

Gross Income
Certain disability-related payments, Veterans Administration disability benefits, and Supplemental Security Income may be excluded from a taxpayer’s gross income.

For more information on tax credits and benefits available to disabled taxpayers, see Publication 3966, Living and Working with Disabilities, or Publication 907, Tax Highlights for Persons with Disabilities, available on IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Links:

Publication 3966, Living and Working with Disabilities
Publication 907, Tax Highlights for Persons with Disabilities

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Do people who receive SSI have to pay taxes?

2009-02-02T09:12:00.006-05:00

Q My son with autism turned 18 this summer and started receiving SSI in August. Does he file a tax return? Do you know what forms he would use? Does SS send out a w-2 of some kind? So far, we haven’t received anything.

A. If your son's only income is SSI, he would not file a tax return. SSI is not considered income for tax purposes. The Social Security Administration does send out tax notices, Form SSA-1099, to people who need to report this on their tax returns. Your son should not receive the SSA-1099, and you don't need to be concerned about filing a tax return. By the same token, recipients of SSI are not eligible for the 2008 tax stimulus payment, nor the 2009 credit for any unreceived stimulus payment.

How Does US Tax Court Decide Amount of Deduction?

2009-01-29T12:57:00.002-05:00

Q. I wasn't able to keep complete records of my Schedule A deduction for ______________, but I was able to estimate the deduction pretty accurately. If I am audited and the deduction is disallowed, how will the US Tax Court decide if I am entitled to the deduction?

A. While the IRS requires a taxpayer to keep sufficient records to establish the amount of a deductible expense, the Courts have been more accepting of human behavior. In 1930, a Federal Court of Appeals established a rule of law known as the "Cohan Rule." This rule is named after George M. Cohan whose case prompted the Court to adopt the rule. The Cohan Rule is still alive and well and applied by the Tax Court as recently as this month.

The Cohan Rule was stated this way in a recent Tax Court opinion: "Generally, when evidence shows that a taxpayer incurred a deductible expense, but the exact amount cannot be determined, the Court may approximate the amount, bearing heavily if it chooses against the taxpayer [because it is the taxpayer's fault that an exact amount cannot be established]. . . . The Court, however, must have some basis upon which an estimate can be made."

I believe the Rule could be used in the following situation. Taxpayer volunteers at her church (or synagogue or mosque) once a week doing office work. Taxpayer has recorded from her car's odometer that it is 13.2 miles from her home to the church (26.4 miles round trip). Taxpayer also knows that she did not volunteer every week, because she had the flu once or twice, and she was away on vacation for three weeks. She thinks she also missed one or two other days. Taxpayer decides to take a mileage deduction for her charitable volunteer work at the church by multiplying 45 days by 26.4 miles to get 1188 miles. She takes this figure and multiplies it by the standard mileage rate of 14 cents per mile for charitable volunteering. 1188 times $.14 equals $166.32.

IRS audits taxpayer. Even though the auditor knows the Cohan Rule and should apply it in the audit, he denies taxpayer the entire $166.32 deduction, because the taxpayer does not have a log or calendar showing exactly which weeks she did and did not volunteer at the church. Perhaps there are other audit changes made by the IRS, and the IRS sends taxpayer a report stating that taxpayer owes an additional $100 in taxes and $65 in penalties and interest. The taxpayer is so angry about this, she decides to file a Tax Court petition herself.

If no satisfactory settlement is arrived at prior to trial, the case will be tried to one of the tax court judges or special trial judges. At the trial, the taxpayer calmly explains to the Judge how she arrived at the mileage deduction for her volunteering at her church. (She might also present testimony from another volunteer to prove that she did, in fact, volunteer quite regularly.) The Judge decides that she is a credible witness, that her calculations make sense, but the Judge is not completely convinced that 45 days was correct. Applying the Cohan Rule, the Judge decides that the evidence showed that the taxpayer incurred the deductible expense and decides that the taxpayer should receive a deduction for 43 days, believing that the taxpayer probably missed a few more days than she remembered. Therefore, the Judge allows a deduction calculated as 43 days times 26.4 miles times $.14 per mile or $158.93.

The moral of this example is that the taxpayer should have kept a complete and accurate log of her volunteer days at her church, but, even though she failed to do so, she shouldn't lose the entire deduction for lack of specificity.

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CAPITAL EXPENDITURES

2009-01-26T12:37:00.004-05:00

Q. My doctor has recommended that I have heart surgery in the next few months because of my heart condition. I am going to need to install an elevator in my home, so I will be able to get to my bedroom on the second floor. Is any of this expense tax deductible?

A. Yes. The general rule is that capital expenses for medical care can be deducted as a medical expense to the extent that the cost of the permanent improvement exceeds any increase in fair market value of your property. With the help of a real estate professional, determine the amount, if any, the value of your house will increase with the installation of the elevator. Subtract the cost of the increase in value from the cost of installing the elevator. Any amount greater than zero equals the amount of medical expense you can add to other medical expenses for you, your spouse, and your dependents to arrive at the "Medical and dental expenses" figure to enter on Line 1 of your Form 1040, Schedule A.

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Standard Mileage Rates

2009-01-22T01:52:00.002-05:00

The 2008 standard mileage rates were:

Business miles driven - 50.5 cents per mile from January 1, 2008, through June 30, 2008, and 58.5 cents per mile for July 1, 2008 through December 31, 2008.
Medical and Moving miles driven - 19 cents per mile from January 1, 2008, through June 30, 2008, and 27 cents per mile for July 1, 2008 through December 31, 2008.
Miles driven in service of charitable organizations - 14 cents per mile for the whole year.

The 2009 standard mileage rates are:

Business miles driven - 55 cents per mile.
Medical and Moving miles driven - 24 cents per mile.
Miles driven in service of charitable organizations - 14 cents per mile.

(Reference: IRS Announcement, November 24, 2008)

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Medical Transportation Expenses

2009-01-22T00:40:00.003-05:00

Q. Can you help us understand the rules regarding deducting mileage for medical care?

A. Transportation expenses for medical care (including dental care) for you, your spouse, and your dependent(s) should be included in the "Medical and Dental Expenses" part of Form 1040, Schedule A. Most people use the "standard mileage rate" allowed by the IRS, rather than the actual cost of gasoline, tires, oil, etc.

The standard mileage rate in 2008 for medical care was 19 cents per mile for the first six months of the year, and 27 cents per mile for the last six months of the year. If you kept a log or diary showing how many miles you drove your car for medical purposes, you would multiply the miles driven from January 1, 2008, through June 30, 2008, by 19 cents and the miles driven from July 1, 2008, through December 31, 2008, by 27 cents. You can also deduct parking fees, tolls, taxi fares, and bus fares.

For example, John drove 1,000 miles between January 1st and June 30th for medical care for himself, his wife, and their two minor children. During that same period, Mary, John's wife, also drove 1,000 miles for medical care for herself and the children. Since John and Mary file a joint return, they would multiply 2,000 by 19 cents to arrive at one part of their medical care expense ($380) for 2008. If John and Mary each drove 1,000 miles between July 1st and December 31st, they would multiply 2,000 by 27 cents to arrive at another part of their medical care expense ($540) for 2008.

To this $920, John and Mary would add their other medical expenses, such as out-of-pocket costs for health insurance, medicines, doctor and dental visits, eyeglasses, etc., to arrive at their total medical and dental expenses. Sadly, since the amount of the allowable deduction is the total of all medical and dental expenses (line 1 on Schedule A) minus 7.5% of their adjusted gross income (line 38 on their 1040), many taxpayers find that they spend a lot of money on medical and dental care but wind up with little or no allowable deduction.

For more information about medical and dental expenses, see IRS Publication 502.

Can parents claim a teenager residing in a supported living facility as a dependent on their tax return?

2009-01-22T00:35:00.003-05:00

Q. Our teenage son moved into a supported living facility this past February. He receives SSI and Medicaid benefits. Can we still claim him as a dependent on our 2008 income tax return?

A. Unfortunately, no. In this situation, as in almost every other situation other than one involving divorced parents, the rule is that the teenager must have lived in his parents' household for more than six months of the year to be considered a dependent. (Internal Revenue Code Section 152(c)(1)(B).)

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Can I deduct the cost of a special diet for my child?

2009-01-19T12:24:00.003-05:00

Q. My son's physician has prescribed a special diet to treat my child's medical condition. Is that a deductible medical expense?

A. Yes, if the physician has actually written out a prescription (and not just given you a paper as a guide). As a rule of thumb, it would be deductible, if you can use the prescription to avoid sales tax on the items, if they would ordinarily be subject to sales tax.

Treasury Regulation section 1.213-1(e)(ii) states: "ii) Amounts paid for operations or treatments affecting any portion of the body, including obstetrical expenses and expenses of therapy or X-ray treatments, are deemed to be for the purpose of affecting any structure or function of the body and are therefore paid for medical care. * * * Deductions for expenditures for medical care allowable under section 213 will be confined strictly to expenses incurred primarily for the prevention or alleviation of a physical or mental defect or illness. * * * However, an expenditure which is merely beneficial to the general health of an individual, such as an expenditure for a vacation, is not an expenditure for medical care."

In my opinion, taxpayers will get different answers to the question posed from different auditors. However, in my opinion, special diets to ameliorate or "cure" a medical condition are "treatments affecting [a] portion of the body" and therefore meet the definition of "medical care." Further, since this care is for the alleviation or cure of "a physical or mental defect or illness," such expenditures are deductible as medical expenses under IRS Code Section 213.

The IRS, if it challenges the deduction, could argue that if the cost of substituting one type of flour for another to meet the strictures of a specific diet does not exceed the cost of the "typical" flour, there is no medical expense. For example, if the cost of oat flour is $4.00 per pound and the cost of wheat flour is also $4.00 per pound, the IRS would probably argue that the money spent for the oat flour is not a deductible medical expense. If, however, the cost of the oat flour is $10.00 per pound versus $4.00 per pound for the wheat flour, I can't see how IRS could argue that a $6.00 per pound deduction would be improper.

See Circular 230 Notice, below.

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Does "rent" paid by a family member constitute income to parents?

2009-01-19T12:00:00.000-05:00

Q.: My son lives at home and receives SSI. He pays us a flat amount per month for rent and food. Does the money received from my son have to be reported as income on our tax return?

A. No. Payments by a family member for "rent" or other living expenses to another family member does not constitute income. It is more akin to reimbursement for expenses, and should not be reported on your tax return.

See Circular 230 Notice, below.

Circular 230 Notice:

2009-01-19T11:52:00.000-05:00

Internal Revenue Service regulations require that certain types of written advice include a disclaimer. To the extent the preceding message contains advice relating to a Federal tax issue, unless expressly stated otherwise the advice is not intended or written to be used, and it cannot be used by the recipient or any other taxpayer, for the purpose of avoiding Federal tax penalties, and was not written to support the promotion or marketing of any transaction or matter discussed herein.