Seniors
Must File Tax Return to Get Stimulus Rebate
Written
By: Attorney
Jeffrey A. Marshall
, CELA*
An
estimated 131 million households will receive one time
payments under an economic stimulus law enacted on February
13th. Under the
legislation, people who pay federal income taxes can get up to
$600 for individuals or $1,200 for married couples, with an
additional $300 per child.
Due to income limits in the law, higher income Americans
will get nothing. Rebates begin to phase out for incomes above
$75,000 for individuals and $150,000 for married couples.
Seniors who pay
little or no income tax may be eligible for payments as well.
$300 payments will go to seniors, disabled veterans and
veterans' widows who can show $3,000 in Social Security or
veterans' disability benefits. In addition, workers who earned
at least $3,000 last year, but not enough to pay income taxes,
will be eligible for payments of $300.
However, to get a
payment this year, you have to file a tax return for 2007.
This means that if you had Social Security income in
2007 but no tax liability you need to file a federal tax
return this year. Filing
a return will not change anything about the taxability of your
Social Security income, but you do need to report that income
on a tax return in order to receive the rebate.
The IRS will calculate the amount of your rebate from
that tax return.
If you file your tax return in a timely manner, your
rebate/stimulus check should arrive in May or June.
The rebate checks will not be subject to income tax.
Seniors should be aware of the potential for con and
identity theft artists to use the rebate law as an opportunity
to commit fraud. Some
seniors are already receiving unsolicited e-mails and
telephone calls from purported IRS agents claiming that the
taxpayers are eligible for rebates. The scammers then state
that they need the senior’s Social Security and bank account
numbers in order to directly deposit the rebate check into the
senior’s account.
Such calls and e-mails are a fraud. Never give out your
personal information in response to unsolicited telephone
calls or e-mails.
Attorney Marshall can be contacted
at webmail@paelderlaw.com
or at 1-800-401-4552
Spousal
Income Minimum Allowance to Increase to $1,750 on
July 1, 2008
Written
By: Attorney
Jeffrey A. Marshall
, CELA*
If
a married nursing home resident receives Medicaid long-term
care benefits, his or her community spouse is entitled to
retain a certain minimum level of income called the Minimum
Monthly Maintenance Needs Allowance (MMMNA). If the
community spouse’s own income is insufficient to provide
this income allowance, income can be diverted from the
institutionalized spouse.
The
MMMNA must be at least 150% of the federal poverty level for a
family of two plus an excess shelter allowance. The minimum
MMMNA is set by federal law and is adjusted no later than July
1st of each year to keep up with inflation.
Pennsylvania
adjusts its MMMNA on each July 1st.
As
of
July 1, 2008
, the minimum MMMNA will be increased from $1,712 to $1,750
per month. The actual MMMNA can be higher depending upon
the monthly shelter related expenses incurred by the community
spouse.
The
federal poverty guidelines for 2008 and prior years are
available through the Department of Health and Human Services
website at http://aspe.hhs.gov/poverty/figures-fed-reg.shtml.
Other spousal protected amounts for 2008 are not linked to
the new federal poverty level.
These include the maximum monthly protected income of
$2,610, the minimum resource allowance of $20,880 and the
maximum resource allowance of $104,400.
Other programs with eligibility levels that are reliant on
the federal poverty level include:
Qualified
Medicare Beneficiaries (QMBs): Medicaid will pay
all Medicare cost sharing for Medicare Beneficiaries with
incomes up to 100% FPL and limited resources:
$866.67/month ($10,400/year) for an individual;
$1,166.67/month ($14,000/year) for a couple.
Specified
Low-income Medicare Beneficiaries (SLMBs):
Medicaid must pay the Medicare Part B premium for Medicare
beneficiaries with incomes between 100% FPL and 120% FPL and
limited resources: $1,040/month ($12,480/year) for an
individual; $1,400/month ($16,800/year) for a couple.
Qualified
Individual (QI): States may pay (based on funds
available) Medicare Part B premium for Medicare beneficiaries
with incomes between 120% FPL and 135% FPL and limited
resources: $1,170/month ($14,040/year) for an individual;
$1,575/month ($18,900/year) for a couple.
Attorney Marshall can be contacted
at webmail@paelderlaw.com
or at 1-800-401-4552
US
Supreme Court Decides Trust Expense Case Against Taxpayer
Written
By: Attorney
Jeffrey A. Marshall
, CELA*
In general, trusts, like individuals, may
deduct only those miscellaneous itemized deductions in excess
of 2% of their adjusted gross income. But, are fees for
investment advice incurred by a trust deductible under an
Internal Revenue Code provision governing costs paid in
connection with the administration of a trust that "would
not have been incurred if the property were not held by a
trust or estate?"
This issue was recently decided in the negative by the
United States Supreme Court in Knight v. Commissioner,
U.S.
, No. 06-1286, decided
1/16/08
. The Court
unanimously held that deductions for investment advisory fees
paid by a trust are subject to the two percent floor pursuant
to Internal Revenue Code Section 67.
Writing for the court, Chief Justice John Roberts affirmed
the decisions of the Internal Revenue Service, the U.S. Tax
Court, and U.S. Court of Appeals for the Second Circuit, which
held that because investment advisory fees are costs of a type
that could be incurred if the property were held individually
rather than in trust, their deduction is subject to the two
percent floor.
The
Court’s opinion is available online at http://www.supremecourtus.gov/opinions/07pdf/06-1286.pdf
Attorney Marshall can be contacted
at webmail@paelderlaw.com
or at 1-800-401-4552
Life
Care Planning Department Announces Promotions
Suzanne K. Starr
and
Josephine Reviello
have been promoted to Assistant Department Managers of the
Life Care Planning Department of the Law Firm of Marshall,
Parker & Associates. In
their new positions, Suzanne and Josephine will take on added
responsibilities of providing management supervision and
assistance to other Planning Specialists in the department.
They will also continue to meet with clients and their
families to provide needed long term care while minimizing the
cost of that care.
Suzanne
will serve as the Assistant Department Manager for the
Williamsport
and
Jersey
Shore
offices of Marshall, Parker & Associates. For the past 6
years, Suzanne has been helping families utilize federal,
state, and local programs to help protect their financial
security from health care costs. She has over twenty years
total experience in the long-term care field.
Josephine
will be responsible for overseeing the
Wilkes-Barre
and
Scranton
offices of Marshall, Parker & Associates.
A social worker and LPN, Josephine has worked as a
Planning Specialist with the firm for over five years.
Prior to joining the firm, she worked in various
aspects of long term care including hospice and skilled
nursing across
Northeastern Pennsylvania
.
Three
Qualify as Advance Care Planning Facilitators
Written
By: Melissa Bottorf, Director of Marketing & Public
Education
Three
Marshall
, Parker staff members have qualified as Advance Care Planning
Facilitators. Patti
Turner, Debbie
Berrigan, and Jeff
Marshall have all completed training on helping people
create enforceable advance care plans that represent their
preferences for future treatment. The training was
conducted
using the nationally-renowned Respecting Choices®
curriculum.
Someday,
due to accident or illness, any of us may no longer be able to
make health care decisions for ourselves.
Someday, those closest to us may have to make decisions
for us. We can
help our families make decisions that are consistent with our
preferences, and unburden them from potential guilt and doubt,
if we talk with them now.
To plan effectively, we need to think
about the care we want to receive at the end of our lives,
discuss our preferences with our family and others close to
us, and complete documents that record those decisions for the
future.
Considering these issues now, before a
crisis arises, is called Advance Care Planning.
Planning in advance can help us ensure that our values, wishes
and choices for health care will always be respected.
Although we recognize that someday others may need to make
health care decisions for us, most of us are reluctant to talk
about it. Perhaps we fear that such talk might be
uncomfortable and depressing. Or we don’t know how to start
such a conversation with our loved ones.
A
local task force has been created to assist people in
overcoming these barriers to planning.
The Task Force is in the process of training local
facilitators and putting together a system that will allow
local residents to get the help they need to plan effectively.
Its services should become available by summer 2008.
By including a trained facilitator as
part of your advance care planning, you will be able to
increase the likelihood that your plan will accurately
represent your values and preferences.
A facilitator can help you through the process of
reflection, discussion, and documentation that will help
ensure that your values will always be respected.
If you reside in Northcentral
Pennsylvania
and are interested in receiving training as an advance care
planning facilitator, contact Melissa Bottorf, at mbottorf@paelderlaw.com
or call 570-321-9008.
More
information on Advance Care Planning is available on the
Marshall, Parker and Associates’ website at http://www.paelderlaw.com/advance_care_planning.html
Learn How to Protect
Your Assets from Long Term Care Costs at our FREE Community
Workshops
-The staff at
Marshall
, Parker & Associates will
present several free consumer workshops on Protecting
Your Assets from Long Term Care.
Reserve
your seat by calling 1-800-401-4552 or visit our registration
page online.
PITTSTON
Saturday,
February 23, 2008
from 10:00 AM until
12:00
PM
Convention Hall
1073
Oak Street
Click
Here to Register
LOCK HAVEN
Saturday,
March 8, 2008
from 10:00 AM until
12:00
PM
Clinton
Country Club
Click
Here to Register
MATAMORAS
Saturday,
March 15, 2008
from 10:00 AM until
12:00
PM
Best
Western at Hunt’s Landing in Matamoras
Click
Here to Register
If you would like someone from
Marshall
, Parker &
Associates to speak at your next meeting, please contact
Melissa Bottorf at 570-321-9008 or mbottorf@paelderlaw.com.
