May 15th, 2012 by Moore McLaughlin
Private fee-for-service (PFFS) plans are a way to give private insurance companies access to the vast Medicare market and are part of an effort to further privatize Medicare. PFFS plans are the fastest-growing Medicare Advantage plans on the market. While the additional benefits these plans often offer may look attractive, Medicare beneficiaries should look carefully before they leap into one.
In a PFFS, Medicare pays a set amount each month to a private insurer to provide health coverage on a fee-for-service basis to Medicare beneficiaries. Unlike a health maintenance organization (HMO) or preferred provider organization (PPO), PFFS members can choose from any Medicare-approved provider as long as the provider is willing to accept the plan’s payment terms. PFFS plans differ from original Medicare in that there is no limit to the premiums or co-payments a PFFS can charge. PFFS plans may offer additional benefits, such as vision or dental, but members may have to share some of the costs with Medicare. PFFS plans may let providers charge up to 15 percent above the plan’s payment amount for services.
Although the additional benefits offered through a PFFS plan may seem advantageous, a report by the Medicare Rights Center finds that private Medicare plans actually offer many disadvantages compared to original Medicare. For example, care can be more expensive because co-payments may be higher. In addition, it may be more difficult to find a doctor who will accept the plan’s payment terms. PFFS plans have also come under scrutiny for their aggressive marketing practices. Sales agents have been accused of fraud for signing up seniors who were not aware how PFFS plans differed from original Medicare.
Before you enroll in a PFFS plan, look closely at the monthly premium, co-payments, and the cost of extra benefits to make sure that this is a plan you can afford. You can call 1-800-MEDICARE or go to www.medicare.gov to compare plans.
Prescription drug coverage
Some PFFS plans offer prescription drug coverage. If the plan you choose has drug coverage, you must use the coverage offered by that plan. You may not enroll in a separate drug plan. If your PFFS plan does not offer prescription drug coverage, you can either switch to another plan that has drug coverage or add this coverage separately.
Switching plans
You can only switch to a different PFFS plans or back to original Medicare at certain times of the year. You can switch during the election period from November 15-December 31 or during the open enrollment period from January 1-March 31 of each year. Note that if you are switching from a PFFS plan with drug coverage to one without, the only time you can add drug coverage is during the election period from November 15-December 31.
For more information on how PFFS plans work, click here.
Tags: asset protection, Asset Protection Planning, assisted living facilities, elder law, elderlaw, Elderlaw/Law For Life, Estate Planning, health maintenance organization, Jill E. Sugarman, Jill Sugarman, Long-term care, long-term care insurance, Massachusetts, mclaughlin & quinn, Medicaid, Medicaid planning, Medicare, Medicare Advantage, nurses, nursing homes, PFFS, Private fee-for-service, Providence, Rhode Island, seniors, social security
Posted in Asset Protection Planning, Elderlaw/Law For Life, Estate Planning
May 2nd, 2012 by Moore McLaughlin
If you are caring for your mother or father, you may be able to claim your parent as a dependent on your income taxes. This would allow you to get an exemption ($3700 in 2011) for him or her.
There are five tests to determine whether you can claim a parent as a dependent:
- The person you are claiming as a dependent must be related to you. This shouldn’t be a problem if you are claiming a parent (in-laws are also allowed). Keep in mind, however, that foster parents do not count as a relative. To claim a foster parent, he or she must live with you for a year as a member of your household.
- Your parent must be a citizen or resident of the United States or a resident of Canada or Mexico.
- Your parent must not file a joint return. If your parent is married, he or she must file separately. There is an exception if your parent is filing jointly, but has no tax liability. If your parent files a joint tax return solely to get a refund, you can claim him or her as a dependent.
- Your parent must not have a gross income of $3,700 (in 2011) a year or more. Gross income does not include Social Security payments or other tax-exempt income. (For those with incomes above $25,000, some portion of Social Security income may be includable in gross income.)
- You must provide more than half of the support for your parent during the year. Support includes amounts spent to provide food, lodging, clothing, education, medical and dental care, recreation, transportation, and similar necessities. Even if you do not pay more than half your parent’s total support for the year, you may still be able to claim your parent as a dependent if you pay more than 10 percent of your parent’s support for the year, and, with others, collectively contribute to more than half of your parent’s support. To receive the exemption, all those supporting your parent must agree on and sign the applicable Multiple Support Declaration (Form 2021).
If you cannot claim your parent as a dependent because he or she filed a joint tax return or has a gross income above $3,700 (in 2011) but you have been paying your parent’s medical expenses, you may be able to deduct those expenses from your taxes. For more information on this, contact your CPA or one of the tax attorneys at McLaughlin & Quinn, LLC.
Tags: asset protection, Asset Protection Planning, assisted living facilities, dependent, elder law, elderlaw, Elderlaw/Law For Life, Estate Planning, exemption, income tax, income taxes, internal revenue code, Internal Revenue Service, IRS, IRS and state tax collections, Jill E. Sugarman, Jill Sugarman, Long-term care, long-term care insurance, mclaughlin & quinn, Medicaid, Medicaid planning, Moore McLaughlin, Multiple Support Declaration, nursing homes, parent, Providence, Rhode Island, seniors, tax, Tax planning
Posted in Asset Protection Planning, Elderlaw/Law For Life, Estate Planning, Tax planning
April 26th, 2012 by Moore McLaughlin
A Chicago judge has reversed a death sentence that has been hanging over Boots the cat for months. The feline’s owner, Georgia Lee Dvorak, died last Christmas Eve at age 76. Dvorak left no survivors, and her will, written in 1988, included a provision directing that any cat or cats she owned at the time of her death be euthanized “in a painless, peaceful manner.” 
But trust officers at Fifth Third Bank, which was appointed to manage Dvorak’s $1.4 million estate, were reluctant to follow through on the will’s terms when it came to Boots, age 11.
The bank asked a Cook County (Chicago) probate court to set aside that provision of Dvorak’s will. In its arguments to the judge, the bank noted that Dvorak had left the bulk of her estate to twelve animal-related charitable organizations. They also cited legal precedents in which courts had spared other animals in similar legal predicaments, including two Irish setters in Pennsylvania who had been ordered destroyed in their owner’s will, and horses in Vermont and Canada that had been similarly condemned.
The judge allowed the bank to search for a suitable home for Boots to live out the remainder of her life, and one was found. Cats-are-Purrsons-Too agreed to care for Boots provided it could receive a $2,000 endowment. On April 3, 2012, the judge ruled that $1,000 of Dvorak’s estate could go toward the endowment, and the bank agreed to forego fees of $1,000, according to an article in the Chicago Tribune.
In its fact sheet “Providing for Your Pet’s Future Without You,” the Humane Society of the United States warns that when a pet owner puts a request in a will that an animal be put to death, “that provision is often ruled invalid by the legal system when the animal is young or in good health and when other humane alternatives are available.”
For more on including a pet in an estate plan, contact estate planning attorney Jill E. Sugarman at JSugarman@McLaughlinQuinn.com or by phone at 401-421-5115 ext. 215.
Tags: asset protection, Asset Protection Planning, Boots the cat, cat, cats, dog, dogs, elder law, elderlaw, Elderlaw/Law For Life, Estate Planning, Jill E. Sugarman, Jill Sugarman, Long-term care, long-term care insurance, mclaughlin & quinn, Medicaid, Medicaid planning, nursing homes, pet, pets, probate, Providence, Rhode Island, seniors, will, wills
Posted in Asset Protection Planning, Elderlaw/Law For Life, Estate Planning, Tax planning
April 11th, 2012 by Moore McLaughlin
The tax filing deadline is just around the corner. The IRS has 10 tips to help taxpayers still working on their tax returns:
1. File electronically Most taxpayers file electronically. If you haven’t tried it, now is the time! The IRS has processed more than 1 billion individual tax returns safely and securely since the nationwide debut of electronic filing in 1990. In fact, 112 million people—77 percent of all individual taxpayers—used IRS e-file last year.
2. Check the identification numbers Carefully check identification numbers—usually Social Security numbers—for each person listed. This includes you, your spouse, dependents and persons listed in relation to claims for the Child and Dependent Care Credit or Earned Income Tax Credit. Missing, incorrect or illegible Social Security numbers can delay or reduce a tax refund.
3. Double-check your figures If you are filing a paper return, double-check that you have correctly figured the refund or balance due.
4. Check the tax tables If you e-file, the software will do this for you. If you are using Free File Fillable Forms or a paper return, double-check that you used the right figure from the tax table for your filing status.
5. Sign your form You must sign and date your return. Both spouses must sign a joint return, even if only one had income. Anyone paid to prepare a return must also sign it and enter their Preparer Tax Identification Number.
6. Send your return to the right address If you are mailing a return, find the correct mailing address at www.irs.gov. Click the Individuals tab and the “Where to File” link under IRS Resources on the left side.
7. Pay electronically Electronic payment options are convenient, safe and secure methods for paying taxes. You can authorize an electronic funds withdrawal, or use a credit or a debit card. For more information on electronic payment options, visit www.irs.gov.
8. Follow instructions when mailing a payment People sending a payment should make the check payable to the “United States Treasury” and should enclose it with, but not attach it to, the tax return or the Form 1040-V, Payment Voucher, if used. The check should include the Social Security number of the person listed first on the return, daytime phone number, the tax year and the type of form filed.
9. File or request an extension to file on time By the April 17 due date, you should either file a return or request an extension of time to file. Remember, the extension of time to file is not an extension of time to pay.
10. Visit IRS.gov Forms, publications and helpful information on a variety of tax subjects are available at www.irs.gov.
Tags: business tax, Capital gains tax, Child and Dependent Care Credit, corporate tax, earned income tax credit, extension, income tax, internal revenue code, Internal Revenue Service, IRS, IRS and state tax collections, mclaughlin & quinn, Moore McLaughlin, preparer tax identification number, Providence, Rhode Island, state taxes, tax, Tax planning, Thomas P. Quinn, United States Treasury
Posted in IRS and state tax collections, Tax Current Events and News, Tax planning
April 9th, 2012 by Moore McLaughlin
If you need to make a payment with your tax return this year, the IRS wants you to know about its payment options. Here are 10 important facts to help you make your tax payment correctly.
1. Never send cash!
2. If you file electronically, you can file and pay in a single step by authorizing an electronic funds withdrawal via tax preparation software or a tax professional.
3. Whether you file a paper return or electronically, you can pay by phone or online using a credit or debit card.
4. Electronic payment options provide an alternative to checks or money orders. You can pay taxes or user fees 24 hours a day, seven days a week. Visit the IRS website at www.irs.gov and search e-pay, or refer to Publication 3611, Electronic Payments for more details.
5. If you itemize, you may be able to deduct the convenience fee charged for paying individual income taxes with a credit or debit card as a miscellaneous itemized deduction on Form 1040, Schedule A, Itemized Deductions. The deduction is subject to the 2 percent limit.
6. If you file on paper, you can enclose your payment with your return but do not staple it to the form.
7. If you pay by check or money order, make sure it is payable to the “United States Treasury.”
8. Always provide on the front of your check or money order your correct name, address, Social Security number listed first on the tax form, daytime telephone number, tax year and form number.
9. Complete and include Form 1040-V, Payment Voucher, when mailing your payment to the IRS. Double-check the IRS mailing address. This will help the IRS process your payment accurately and efficiently.
10. For more information, call 800-829-4477 and select TeleTax Topic 158, Ensuring Proper Credit of Payments. You can also find out more in Publication 17, Your Federal Income Tax and Form 1040-V, both available at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).
Tags: asset protection, Asset Protection Planning, business tax, corporate tax, Form 1040-V, income tax, internal revenue code, Internal Revenue Service, IRS, IRS and state tax collections, mclaughlin & quinn, Moore McLaughlin, Providence, Publication 3611, Rhode Island, tax, Tax planning, Thomas P. Quinn, United States Treasury
Posted in Asset Protection Planning, IRS and state tax collections, Tax Current Events and News, Tax planning
April 4th, 2012 by Moore McLaughlin
If you owe tax with your federal tax return, but can’t afford to pay it all when you file, the IRS wants you to know your options and help you keep interest and penalties to a minimum.
Here are five tips:
1. File your return on time and pay as much as you can with the return. These steps will eliminate the late filing penalty, reduce the late payment penalty and cut down on interest charges. For electronic and credit card options for paying see IRS.gov. You may also mail a check payable to the United States Treasury
2. Consider obtaining a loan or paying by credit card. The interest rate and fees charged by a bank or credit card company may be lower than interest and penalties imposed by the Internal Revenue Code.
3. Request an installment payment agreement. You do not need to wait for IRS to send you a bill before requesting a payment agreement. Options for requesting an agreement include:
- Using the Online Payment Agreement application and
- Completing and submitting IRS Form 9465-FS, Installment Agreement Request , with your return IRS charges a user fee to set up your payment agreement. See www.irs.gov or the installment agreement request form for fee amounts.
4. Request an extension of time to pay. For tax year 2011, qualifying individuals may request an extension of time to pay and have the late payment penalty waived as part of the IRS Fresh Start Initiative. To see if you qualify visit www.irs.gov and get form 1127-A, Application for Extension of Time for Payment . But hurry, your application must be filed by April 17, 2012.
5. If you receive a bill from the IRS, please contact us immediately to discuss these and other payment options. Ignoring the bill will only compound your problem and could lead to IRS collection action.
If you can’t pay in full and on time, the key to minimizing your penalty and interest charges is to pay as much as possible by the tax deadline and the balance as soon as you can. For more information on the IRS collection process go to or see IRSVideos.gov/OweTaxes .
Tags: Application for Extension of Time for Payment, asset protection, Asset Protection Planning, Capital gains tax, corporate tax, extension of time to pay, federal tax return, income tax, installment payment agreement, internal revenue code, Internal Revenue Service, IRS, IRS and state tax collections, IRS.gov, late filing penalty, mclaughlin & quinn, Providence, Rhode Island, state taxes, tax, Tax planning, Thomas P. Quinn, United States Treasury
Posted in Asset Protection Planning, Bankruptcy, Financial workout, IRS and state tax collections, Tax Current Events and News, Tax planning
April 2nd, 2012 by Moore McLaughlin
Following the death of singer Amy Winehouse from alcohol poisoning last July, the British paper the Daily Mail reported that not only did the 27-year-old have a will but that she had recently updated it to ensure that her ex-husband Blake Fielder-Civil would not inherit any of her estate. That the troubled singer could be organized enough to plan her estate seemed somewhat incongruous, but news sources picked up the story as an example of the importance of planning no matter one’s age. 
It turns out the story was too good to be true. Winehouse died intestate, in other words without having executed any will at all, according to probate documents reported by the Associated Press. Her entire probate estate, which has an after-tax value of $4.7 million, will go to her parents. Winehouse may have wanted to leave some of that money to others besides her parents – perhaps to her brother or to Fielder-Civil — but if she did, she failed to make a will to make that clear.
Winehouse’s fortune was earlier estimated to be about $16 million, and it may turn out to be more than $4.7 million because a probate estate does not include assets held held jointly with someone else, or that had a beneficiary designation (like an insurance policy), or held in trust (although it is unlikely Winehouse had a trust if she had no will).
“By having no will at all, despite earning millions of dollars in her short career, Winehouse joined the dozens of other famous celebrities who procrastinated with their estate planning,” celebrity estate experts Danielle and Andy Mayoras write in Forbes.
Although it turns out Amy Winehouse had no will, the moral of the story remains the same: it’s never too early to plan your estate. If you have accumulated some assets (it doesn’t have to be Winehouse’s millions) or have young children that will need a guardian, then it is time to start thinking about an estate plan. Planning your estate with a will or trust is the best way to ensure your estate is distributed the way you want it to.
For more on estate planning, contact elderlaw attorney Jill E. Sugarman at 401-421-5115 ext 215 or by e-mail at JSugarman@McLaughlinQuinn.com.
Tags: Amy Winehouse, asset protection, Asset Protection Planning, elder law, elderlaw, Elderlaw/Law For Life, Estate Planning, income tax, Jill E. Sugarman, Jill Sugarman, mclaughlin & quinn, Medicaid, Medicaid planning, Moore McLaughlin, nursing homes, Providence, Rhode Island, seniors, Tax planning, Winehouse
Posted in Asset Protection Planning, Current Events, Elderlaw/Law For Life, Estate Planning, Tax Current Events and News, Tax planning
March 27th, 2012 by Moore McLaughlin
If you make a mistake on your tax return, it can take longer to process, which in turn, may delay your refund. According to the IRS, here are eight common errors to avoid.
1. Incorrect or missing Social Security numbers When entering SSNs for anyone listed on your tax return, be sure to enter them exactly as they appear on the Social Security cards.
2. Incorrect or misspelling of dependent’s last name When entering a dependent’s last name on your tax return, make sure to enter it exactly as it appears on their Social Security card.
3. Filing status errors Choose the correct filing status for your situation. There are five filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household and Qualifying Widow(er) With Dependent Child. See Publication 501, Exemptions, Standard Deduction and Filing Information, to determine the filing status that best fits your situation.
4. Math errors When preparing paper returns, review all math for accuracy. Or file electronically; the software does the math for you!
5. Computation errors Take your time. Many taxpayers make mistakes when figuring their taxable income, withholding and estimated tax payments, Earned Income Tax Credit, Standard Deduction for age 65 or over or blind, the taxable amount of Social Security benefits and the Child and Dependent Care Credit.
6. Incorrect bank account numbers for direct deposit Double check your bank routing and account numbers if you are using direct deposit for your refund.
7. Forgetting to sign and date the return An unsigned tax return is like an unsigned check – it is invalid. Also, both spouses must sign a joint return.
8. Incorrect adjusted gross income If you file electronically, you must sign the return electronically using a Personal Identification Number. To verify your identity, the software will prompt you to enter your AGI from your originally filed 2010 federal income tax return or last year’s PIN if you e-filed. Taxpayers should not use an AGI amount from an amended return, Form 1040X, or a math-error correction made by IRS.
Tags: asset protection, Asset Protection Planning, Capital gains tax, Head of Household, income tax, internal revenue code, Internal Revenue Service, IRS, IRS and state tax collections, Married Filing Jointly, Married Filing Separately, mclaughlin & quinn, Moore McLaughlin, Providence, Publication 501, Rhode Island, social security, Social Security numbers, tax, Tax planning, Thomas P. Quinn
Posted in Current Events, IRS and state tax collections, Tax Current Events and News, Tax planning
March 26th, 2012 by Moore McLaughlin
Donations made to qualified organizations may help reduce the amount of tax you pay.
The IRS has eight essential tips to help ensure your contributions pay off on your tax return.
1. If your goal is a legitimate tax deduction, then you must be giving to a qualified organization. Also, you cannot deduct contributions made to specific individuals, political organizations or candidates. See IRS Publication 526, Charitable Contributions, for rules on what constitutes a qualified organization.
2. To deduct a charitable contribution, you must file Form 1040 and itemize deductions on Schedule A. If your total deduction for all noncash contributions for the year is more than $ 500, you must complete and attach IRS Form 8283, Noncash Charitable Contributions, to your return.
3. If you receive a benefit because of your contribution such as merchandise, tickets to a ball game or other goods and services, then you can deduct only the amount that exceeds the fair market value of the benefit received.
4. Donations of stock or other non-cash property are usually valued at the fair market value of the property. Clothing and household items must generally be in good used condition or better to be deductible. Special rules apply to vehicle donations.
5. Fair market value is generally the price at which property would change hands between a willing buyer and a willing seller, neither having to buy or sell, and both having reasonable knowledge of all the relevant facts.
6. Regardless of the amount, to deduct a contribution of cash, check, or other monetary gift, you must maintain a bank record, payroll deduction records or a written communication from the organization containing the name of the organization and the date and amount of the contribution. For text message donations, a telephone bill meets the record-keeping requirement if it shows the name of the receiving organization, the date of the contribution and the amount given.
7. To claim a deduction for contributions of cash or property equaling $ 250 or more, you must have a bank record, payroll deduction records or a written acknowledgment from the qualified organization showing the amount of the cash, a description of any property contributed, and whether the organization provided any goods or services in exchange for the gift. One document may satisfy both the written communication requirement for monetary gifts and the written acknowledgement requirement for all contributions of $ 250 or more.
8. Taxpayers donating an item or a group of similar items valued at more than $ 5,000 must also complete Section B of Form 8283, which generally requires an appraisal by a qualified appraiser.
For more information on charitable contributions, refer to Form 8283 and its instructions, as well as Publication 526, Charitable Contributions. For information on determining the value of donations, refer to Publication 561, Determining the Value of Donated Property. All are available at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).
Tags: asset protection, Asset Protection Planning, Charitable Contributions, Donated Property, Donations, elder law, elderlaw, Elderlaw/Law For Life, Estate Planning, income tax, internal revenue code, Internal Revenue Service, IRS, IRS and state tax collections, IRS Form 8283, IRS Publication 526, Jill E. Sugarman, Jill Sugarman, mclaughlin & quinn, Medicaid planning, Moore McLaughlin, Noncash Charitable Contributions, Providence, Publication 561, qualified organizations, Rhode Island, tax, tax deduction, Tax planning, Thomas P. Quinn
Posted in Asset Protection Planning, Estate Planning, Tax Current Events and News, Tax planning
March 21st, 2012 by Moore McLaughlin
Some employees may be able to deduct certain work-related expenses. The following facts from the IRS can help you determine which expenses are deductible as an employee business expense. You must be itemizing deductions on IRS Schedule A to qualify.
Expenses that qualify for an itemized deduction generally include:
- Business travel away from home
- Business use of your car
- Business meals and entertainment
- Travel
- Use of your home
- Education
- Supplies
- Tools
- Miscellaneous expenses
You must keep records to prove the business expenses you deduct. For general information on recordkeeping, see IRS Publication 552, Recordkeeping for Individuals available on the IRS website at www.irs.gov , or by calling 1-800-TAX-FORM (800-829-3676).
If your employer reimburses you under an accountable plan, you should not include the payments in your gross income, and you may not deduct any of the reimbursed amounts.
An accountable plan must meet three requirements:
1. You must have paid or incurred expenses that are deductible while performing services as an employee.
2. You must adequately account to your employer for these expenses within a reasonable time period.
3. You must return any excess reimbursement or allowance within a reasonable time period.
If the plan under which you are reimbursed by your employer is non-accountable, the payments you receive should be included in the wages shown on your Form W-2. You must report the income and itemize your deductions to deduct these expenses.
Generally, you report unreimbursed expenses on IRS Form 2106 or IRS Form 2106-EZ and attach it to Form 1040. Deductible expenses are then reported on IRS Schedule A, as a miscellaneous itemized deduction subject to a rule that limits your employee business expenses deduction to the amount that exceeds 2 percent of your adjusted gross income.
For more information see IRS Publication 529 , Miscellaneous Deductions, which is available on the IRS website at www.irs.gov , or by calling 1-800-TAX-FORM (800-829-3676).
Tags: accountable plan, corporate tax, form 1040, income tax, internal revenue code, Internal Revenue Service, IRS, IRS and state tax collections, IRS Form 2106, IRS Form 2106-EZ, IRS Publication 552, itemized deduction, mclaughlin & quinn, miscellaneous itemized deduction, Moore McLaughlin, Providence, Rhode Island, tax, Tax planning, Thomas P. Quinn, work-related expenses
Posted in Tax Current Events and News, Tax planning
