Social Security benefits

Often Social Security benefits are a mystery especially when a spouse passes.  The surviving spouse is entitled to a benefit equal to 100% of the deceased benefits as long as the survivor wants until their full retirement age.  At 60 you could collect a survivor benefit but the benefit will be reduced.  What that means is do an analysis of what is best for you when considering taking a survivor benefit from Social Security.  Yes, it may be hard to understand but once you know what to do, you will rest easier.

New Medicare Cards

Medicare has begun to mail new ID cards to its millions of members.  The replacement cards will have a new assigned ID number.  These cards don't have your social security number.  The process of mailing new cards will take about a year.

It is important to note that scammers have found another new way to steal from the elderly.  The scammer calls and states you must pay a processing fee before you receive a new card.  Not True!  They may state you are due a refund on old cards so you give them your bank account number so they can deposit the refund into your account ( never give out your bank account number over the phone).

New Tax Rate "C" Corporations

Clients have asked and maybe hoped that under the new tax law "C" corporations no longer have what is considered a double taxation problem.

The new tax rate for "C" corporations is a flat rate of 21%.  Before the new tax laws "C" corporations were taxed at a graduated rate ranging from 15% to 35%.  The dividends paid to the shareholders are still taxed to them at their individual tax rates, so in fact "double taxation" has not gone away.

Sexual Harassment and businesses

In today's climate with numerous sexual harassment claims filed, it should be noted that all companies must, I repeat must take all sexual harassment issues seriously!  In fact, the IRS is taking sexual harassment so seriously that any business that settles a sexual discrimination or harassment claim cannot deduct the payment or attorney fees that are subject to a non-disclosure agreement on their tax return.

Vote

Don't Forget to Vote Tomorrow! 6/12/18

Sale of Home Requirements

If you own your home but are unable to take care of yourself, here is something to think about. A taxpayer who has owned and used their home as their principle residence for at least 2 out of the 5 years leading up to the sale can exclude $250,000 or $500,000 if married on the gain when the home is sold, however the IRS has lowered the length of use requirement to 1 out of 5 years preceeding the sale for those who are in nursing homes.