And it’s our business to not only provide counsel and hands-on service to Fort Collins families and businesses as it relates to setting up the best way to make tax-related decisions with your assets, but also to give some counsel on navigating the murky waters of other government programs.

Medicare and Social Security fall under this rubric, and I’d like to delve into the fun little world of healthcare funding, which is poised to become even more complex.

This isn’t to yet touch on the wonderful world of Obamacare, and how that is changing things (about which I’ll have more to say in future installments). No, this is stuff I’ve pulled together about programs currently on the books, and how they are not always as simple as they seem…

Fort Collins Tax Expert Guides You Through The New World of Medicare Decisions
As Americans approach age 65, they must begin making complex health insurance decisions related to the government-run Medicare program. Like food choices on a cafeteria line, there are hundreds of ways to assemble your own plate. As you begin this journey, the first big decision is whether to enroll in Original Medicare or one of the newer Medicare Advantage programs.

Medicare Advantage, also known as Part C for its place in the ABCDs of Medicare, was birthed in the Balanced Budget Act of 1997. It was created to offer much needed private competition to the government-run health program whose costs are ballooning out of control.

Public health officials assemble a package of necessary features and benefits, and private health insurers compete on price, service, and additional perks. Seniors can call their Social Security office or go to www.medicare.gov to view all of the Medicare plans offered in their area.

Like many employer-sponsored health insurance plans, Medicare Advantage plans are set up as health maintenance organizations (HMOs) or preferred provider organizations (PPOs). HMOs and PPOs are managed care plans that contract with a set of doctors, hospitals, and other health care providers to manage the costs. For example, an in-network doctor agrees to perform open heart surgery for a predetermined price.

All plans cover emergency care when traveling in the United States, but outside of your network. Most plans also offer international emergency care benefits, but make sure you confirm the details before you book your next cruise. Uninsured traveling can be costly.

Medicare Ratings System
To assist consumers, Medicare now rates Medicare Advantage programs using a star system. Using member satisfaction surveys and plan evaluations, plans are rated between one and five stars. In fact, at any time, you can switch into a five-star Medicare Advantage plan, but only if one is available in your region (only a few states have a five-star plan). Even if your area does not offer a top-rated plan, every state offers at least a four-star plan.

Advantages of Medicare Advantage
Many seniors choose a Medicare Advantage program because it can lower health costs. If you are willing to stay in network, a Medicare Advantage program is likely to have lower costs than the Original Medicare program that has no network restrictions. For this reason, it is important to check with your preferred doctors and specialists to confirm that they are part of the network before joining.

Medicare Advantage also offers greater simplicity. Those who use Original Medicare must purchase a private drug plan (Part D), and they typically buy a supplemental plan (Medigap) to limit costs. This assortment of plans requires carrying around three insurance cards that all have different copayments and deductibles. Medicare Advantage offers one comprehensive plan with one insurance card.

Unfortunately, the only way to really know if Medicare Advantage is right for you is to get an in-depth evaluation. You can pursue this personally by using the cost calculator tool available at www.medicare.gov. This helpful tool will produce a customized report listing your expected total costs for each plan after you enter all of your drug information.

If you do not feel comfortable using the online tool, you can seek advice from an independent advisor who is knowledgeable about the hundreds of Medicare cafeteria line options. Keep in mind that most Medicare insurance advisors are paid more to sell you more expensive policies.

Some of these plans are NOT “advantageous”, so I suggest that you get the help of someone who can inform your decision. Let me know if you’d like advice on that front.

Judy Meyer
970-490-2172

And it’s our business to not only provide counsel and hands-on service to Fort Collins families and businesses as it relates to setting up the best way to make tax-related decisions with your assets, but also to give some counsel on navigating the murky waters of other government programs.

Medicare and Social Security fall under this rubric, and I’d like to delve into the fun little world of healthcare funding, which is poised to become even more complex.

This isn’t to yet touch on the wonderful world of Obamacare, and how that is changing things (about which I’ll have more to say in future installments). No, this is stuff I’ve pulled together about programs currently on the books, and how they are not always as simple as they seem…

Fort Collins Tax Expert Guides You Through The New World of Medicare Decisions
As Americans approach age 65, they must begin making complex health insurance decisions related to the government-run Medicare program. Like food choices on a cafeteria line, there are hundreds of ways to assemble your own plate. As you begin this journey, the first big decision is whether to enroll in Original Medicare or one of the newer Medicare Advantage programs.

Medicare Advantage, also known as Part C for its place in the ABCDs of Medicare, was birthed in the Balanced Budget Act of 1997. It was created to offer much needed private competition to the government-run health program whose costs are ballooning out of control.

Public health officials assemble a package of necessary features and benefits, and private health insurers compete on price, service, and additional perks. Seniors can call their Social Security office or go to www.medicare.gov to view all of the Medicare plans offered in their area.

Like many employer-sponsored health insurance plans, Medicare Advantage plans are set up as health maintenance organizations (HMOs) or preferred provider organizations (PPOs). HMOs and PPOs are managed care plans that contract with a set of doctors, hospitals, and other health care providers to manage the costs. For example, an in-network doctor agrees to perform open heart surgery for a predetermined price.

All plans cover emergency care when traveling in the United States, but outside of your network. Most plans also offer international emergency care benefits, but make sure you confirm the details before you book your next cruise. Uninsured traveling can be costly.

Medicare Ratings System
To assist consumers, Medicare now rates Medicare Advantage programs using a star system. Using member satisfaction surveys and plan evaluations, plans are rated between one and five stars. In fact, at any time, you can switch into a five-star Medicare Advantage plan, but only if one is available in your region (only a few states have a five-star plan). Even if your area does not offer a top-rated plan, every state offers at least a four-star plan.

Advantages of Medicare Advantage
Many seniors choose a Medicare Advantage program because it can lower health costs. If you are willing to stay in network, a Medicare Advantage program is likely to have lower costs than the Original Medicare program that has no network restrictions. For this reason, it is important to check with your preferred doctors and specialists to confirm that they are part of the network before joining.

Medicare Advantage also offers greater simplicity. Those who use Original Medicare must purchase a private drug plan (Part D), and they typically buy a supplemental plan (Medigap) to limit costs. This assortment of plans requires carrying around three insurance cards that all have different copayments and deductibles. Medicare Advantage offers one comprehensive plan with one insurance card.

Unfortunately, the only way to really know if Medicare Advantage is right for you is to get an in-depth evaluation. You can pursue this personally by using the cost calculator tool available at www.medicare.gov. This helpful tool will produce a customized report listing your expected total costs for each plan after you enter all of your drug information.

If you do not feel comfortable using the online tool, you can seek advice from an independent advisor who is knowledgeable about the hundreds of Medicare cafeteria line options. Keep in mind that most Medicare insurance advisors are paid more to sell you more expensive policies.

Some of these plans are NOT “advantageous”, so I suggest that you get the help of someone who can inform your decision. Let me know if you’d like advice on that front.

Judy Meyer
970-490-2172

Or maybe it’s just because tax season has finished and I’m getting more sleep?

Well, I hope you and your family will have some “spring” this year — in the more figurative sense; whether or not it’s in the next couple of months. The winter always seems longer than it really is (even when it really *is* long!), but I’m also reminded of how necessary it is.

You see, like the lifecycle of an economy, I still believe that it’s a *good* thing to experience a time of dormancy. Speaking biologically, plants and flowers often need that time of “being withdrawn” to survive the “facts on the ground” (really cold temps!).

They’re a classic picture of a healthy cycle — pull back a little when it’s harsh, but look for the warmer temps and be ready to bloom.

I don’t know all the details of your personal situation. But I do know that you and I have a choice about how we’re going to weather our different financial seasons. Keep acting like it’s summer (when it’s really winter out there), and you’ll wither, and suffer for it.

But the opposite is also true — keep staying “shut down” and dormant when the weather is turning up … and, well, you’ll miss your chance to really grow up and blossom.

Fine — I’m a Fort Collins tax pro, not a poet, but you get the point. Don’t be afraid to step out again, just because it’s been cold for awhile out there.

And yes, there IS some good news in our economy out there (consumer spending, GDP, to name a few). And speaking of delivering good (or bad) news, this week I thought I would take up the topic of how you and your partner can get on the same page when it comes to finances. I think you’ll enjoy, and as always–send me your feedback!

Financial Conversation Starter from Your Fort Collins Tax Preparation Office
Do you get a knot in your gut when your spouse asks you how the finances are looking? Do you practice a policy of “Don’t ask, Don’t tell”?

One of the best tools I’ve seen to keep your spouse or partner in the loop about your finances is the simple concept of the monthly report. If you find it useful, and once you’ve established the format, you can also do it twice a month to take a look at how you’re meeting your goals.

Why You Should Do This
While there are many benefits to the monthly report that are outside the scope of this discussion, some of the major ones that apply to most families are:

* You keep each other accountable. Neither one of you can step too far outside the artificial boundaries you set up for yourselves (budgets, investments, etc.), because you know that you have to answer to the other every 15 or 30 days. This helps you avoid making major financial mistakes.

* Awareness of your financial situation. Each one of you is fully aware of your current financial situation at all times, including your account balances and other major metrics.

* An opportunity to discuss goals and progress. Your meetings to review and discuss the report give you the opportunity to talk about your major financial goals, how you’re progressing toward meeting those goals, challenges that lie ahead, and potential changes you might have to make in your financial management to meet those goals.

* You can celebrate successes. Seeing your progress on paper allows you to look back and celebrate how far you’ve come, and encourages you to know you’re moving in the right direction.

What Should You Include?
The great thing about setting up a template like this, is that you’ll likely not change it very much at all after the first month or two. I would include the following:
* The Date (and whether the report is a mid-month check-in or an end-of-month summary).
* Money In: All income and transfers into your accounts.
* Money Out: All expenses and transfers out, categorized by bills, other expenses, investments/savings, and loans. I also recommend breaking down the biggest expenses within each of these major categories.
* In Minus Out: Cash flow for the month, and the plan for the resulting shortfall or surplus.
* Net Worth: A quick overview of all assets and liabilities to determine your month-to-month net worth.
* Credit Score: Update of your credit score from a monitoring service, and a comparison to last month’s score.
* Goal Monitoring: If you set up any special savings or financial goals at the beginning of the year, this is the place where you track them and keep each other accountable.
* Notes: This is where you can explain any unusual activity, or make notes on upcoming expenses or issues. This is also where you can make notes as to important milestones and successes you’ve made, particularly when year-to-year comparisons are important to make.

In particular when one partner is primarily in charge of handling the finances, this kind of reporting can make a huge difference in your peace of mind — and your relationship!

Mint.com can make this extremely efficient, as can other free softwares on the market.

The most important thing I want to communicate? Have that open conversation. And if you need a referee, let me know — I’m always glad to be a neutral sounding board.

And I’m always grateful for our friendship, and for your referrals!

Judy Meyer
970-490-2172

PS — For those of our clients who have previous years’ tax returns at another preparer, OR for their friends…
+++++++++++++++++
“No Charge” Return Review
Special Gift Certificate
As a complimentary service this year, we will provide a Return Review To Any Non-Client.
We will also review prior year returns from clients who did NOT have us handle their taxes during the year under question. No charge will be made, unless we have to file an amended return. Email our office or call 970-490-2172 to set up this complimentary service!
Deadline May 10th
+++++++++++++++++

Life does continue, however, and as such we’re starting to catch our breath around here, after a busier-than-normal tax season. Lots of our Fort Collins clients are on extension (an unfortunate consequence of longer-than-normal IRS delays this year from the last-minute tax deal), so we’ll continue to be around and advising our families and business owners on the best ways to continue their tax minimization strategies.

On that note, I have to point out: last Thursday (the 18th) was our “Tax Freedom Day” – that’s the date pegged as the date when you’ve finally worked enough days to pay off your taxes. The rest of the year is your “take home” pay.

The date varies year to year (this year it is five days later than last), and more information is here: http://www.taxfoundation.org/taxfreedomday/.

(And for some states, the date is even later. Here’s the state-by-state breakdown: http://taxfoundation.org/article/map-tax-freedom-day-state-2013 )

The calculating organization is the Tax Foundation, a non-partisan educational organization dedicated to informing US — the taxpayers — about the burdens of our tax liabilities, and according to the Foundation, here’s a fun little fact: Americans paid more taxes in 2012 than they did on food, clothing and shelter combined.

Which, of course, is why I and my Team Meyer staff are here: keeping your tax bill as low as legally and ethically possible.

But we also deal with lots of questions this time of year related to a variety of “post-preparation” issues, so I thought I’d address many of them in one swell foop. Which is not at all to say that we won’t answer YOUR questions. Here’s our number: 970-490-2172

On to the questions…

What To Do When The Taxes Are Done, Per Your Favorite Fort Collins Tax Office
It’s a familiar feeling.

Relief. Exhilaration (or frustration at having to pay *more* taxes!). Gratitude for a job well done by your preparer.

But that doesn’t mean you may not still have questions. Here are some common ones we get from Fort Collins taxpayers this week…

1. “When will I get my refund?”
Well, the IRS does seem to have entered the 21st century.

If you had us “e-file” your return, you can check your status right now, or if you had us mail a paper return, after about 3 to 4 weeks.

When you’re checking with the following options, make sure you have a copy of your tax return on hand or know your “filing status”, SSN and the exact dollar amount of the anticipated refund.

• Online: Go to IRS.gov and click on Where’s My Refund.
[or go right to: http://www.irs.gov/individuals/article/0,,id=96596,00.html ]
• Automated Phone: Call 1-800-829-4477 24 hours a day, 7 days a week for automated refund information.
• In-Person Phone: Call 1-800-829-1954 during the hours shown in your IRS form instructions. [Of course, the hold time for the IRS is ... somewhat of an issue -- and they're closed for five days this month because of the furloughs ]

2. “Do I need to keep a copy of my return?”
Yes, for a *minimum* of three years. There’s all kinds of contexts where it’s useful. We do keep one on file, on your behalf, but it’s just smart and safe for you to keep one in a secure place at home. (I’ve already written about Amended Returns, and you need a copy for that process, of course).

As for the supporting documents from your return, anything that relates to a home purchase or sale, stock transactions, retirement, business or rental property, should be kept much longer than the three years.

3. “I think there’s a mistake in my return. What should I do?”
Sometimes, you’ll find a receipt or a documentation after April 15th which really would have changed your prior year tax return. That’s, again, when you would have us file an “Amended Return”. Here are some other, common reasons to Amend…

•          You neglected to report some income earned.
•          You claimed deductions or credits you should not have claimed.
•          You did not claim deductions or credits you could have claimed.
•          You filed under one filing status, but you should have filed under another.

You might have other questions, which I haven’t addressed here. Let me know!

Judy Meyer

PS — For those of our clients who have previous years’ tax returns at another preparer, OR for their friends…
+++++++++++++++++
“No Charge” Return Review
Special Gift Certificate
As a complimentary service this year, we will provide a Return Review To Any Non-Client.
We will also review prior year returns from clients who did NOT have us handle their taxes during the year under question. No charge will be made, unless we have to file an amended return. Email our office or call 970-490-2172 to set up this complimentary service!
Deadline May 10th
+++++++++++++++++

And speaking of the IRS, perhaps I should also thank the federal government for creating a tax system so complex and counterintuitive that it has provided myself and those who work for me with gainful employment.

Leaving my own personal Meyer circumstances aside though, I’d be thrilled if our tax system was much simpler.

But it isn’t simple, and it is far better to live in the reality of what *is* (and work to make positive change), than to simply moan about a problem that is larger than what any one person can change.

Preparing tax returns is like that — it is dealing with what *is* — not with what “could be”. Which is why tax PLANNING will be the subject of a few of my Notes in the future.

And one last thing: If you have filed your taxes with us, and you had a good experience, would you…

A) Email me a note and tell me about it?

B) Share us on YOUR Facebook wall…?

Here’s something you can say:
“I had my taxes prepared by Judy Meyer’s team, and had a great experience. They’re willing to review your return to make sure that everything was done right for you… Give them a call at: 970-490-2172 and let them know I told you to call.” Join us on Facebook: http://www.facebook.com/MeyerCPA

Or some such… thanks again!

Lastly, I hope you’ll forgive me for taking a break from writing you a Personal Strategy Note for this week … I’m not sure that if I did so, anything besides numbers and spreadsheets would come out. It’s amazing what 4 months of staring at government forms does to a brain!

But hey — this is what we signed up for. And we are extremely grateful for your trust and for the chance you’ve given us to serve you and so many other taxpayers in the Fort Collins area in it, so you don’t have to suffer the same fate.

We will be in touch again soon. As long as this caffeine hangover ever releases me from its grip.

Warmly,

Judy Meyer
970-490-2172

And, well, since we’re coming up against a hard deadline a week from Monday (April 15th), it’s important that I clarify some things for my clients and friends to whom it applies …

But before I get there, a couple quick reminders about what ELSE the 15th means…
1) Monday, April 15 is the deadline to contribute to IRA’s and HSA’s in order to have them count on this year’s (2012) taxes.

2) It is also the deadline to claim the almost $1 billion in unclaimed refunds for returns dating back to 2009. If you, for some reason, didn’t file for that year, you could be missing out. Call us for this special circumstance: 970-490-2172
(Or for any other question — but again, bear with us, as we are extremely busy!)

And one last thing: if you have filed your taxes with us already, and you had a good experience, would you…

A) Email me, and tell me about it?

B) Share us on your Facebook wall…?
Join us on Facebook: http://www.facebook.com/MeyerCPA
Here’s something you can say:
“I had my taxes prepared by Judy Meyer’s team, and had a great experience. They also just told me that they are willing to help procrastinators! So, if that’s you, give them a call at: 970-490-2172 and let them know I told you to call. Or you could do it tomorrow, of course ”

Or some such… thanks again! (And you can even tell them about what’s at the end of this blogpost, if you so choose.)

Fort Collins Tax Office Explains What’s Actually Being Extended
Let’s clear some things up with some facts for Fort Collins taxpayers about getting an “extension”.

As you know, Monday, April 15th is the filing deadline for a federal tax return.  If you need more time to get your paperwork complete, you need to file (or have us file on your behalf) Form 4868 (Automatic Extension of Time to File with the IRS by the end of the day on the 15th.  This gives you an automatic six-month (until October 15, 2013) extension of time to file.

Here’s the deal: An “Extension of Time to File” is not an “Extension of Time to Pay”, unfortunately — except for certain cases (more on these in a moment). In normal circumstances, the Extension simply gives you an automatic six months of additional time to get your paperwork together and file that return.  But, if you owe more than what you paid with your estimate, you’ll be accumulating penalties and interest on the difference–so PLEASE don’t take the entire six months to do this!

The exception to this rule is for:
1) Wage earners who have been unemployed at least thirty consecutive days during 2012 or in 2013 up to this year’s April 15 tax deadline; or
2) Self-employed individuals who experienced a 25 percent or greater reduction in business income in 2012 due to the economy.

So, if that’s you — let us know! We’ll get you payment relief. 970-490-2172

For the rest of you, when filing your “Extension of Time to File”, you’ll need to estimate what you think you owe to the IRS.  This should not be pulling numbers out of thin air (or various body parts)!  You’ll still need to go through your receipts and tax documents and get them “somewhat” organized.

From here, you can estimate both your income and your expenses, and then approximate what you owe Uncle Sam.  Keep in mind that this is an ESTIMATE.  And, you’ll have to pay what you estimate you owe at the time we file for the extension.

You can do this all electronically through our office, you can mail in the form WITH estimated payment (must be postmarked by the 15th), or you can call a specialized provider and pay by credit card. We can provide you with the appropriate number to call.

And it’s NOT TOO LATE! See below, and come by right away!

To more of your money in your wallet!

+++++++++++++++++
“PROCRASTINATORS ONLY” Special Gift Certificate
$23 Towards Any Tax Service
“Yes, I Have Procrastinated Filing My Taxes This Year … But I Still Want to Protect Myself from All the New Tax Laws and Get MORE Money Back from Uncle Sam with A Peace-Of-Mind Guarantee that’ll Keep Me Sleeping like a Baby when My Taxes are Filed with the IRS!”
Deadline April 15th
Not valid with any other offer
+++++++++++++++++

I was meaning to write

Writing these every week can be a grind! Especially with barely two weeks left in tax season … I swear I’ll get to it soon though. I know how important it is. But it can wait — for now. Hey, now that I’m outside maybe I’ll go for a walk!

Hopefully by now you realize I’m kidding.

I truly don’t mean to mock procrastination. I can be guilty of it just as much as the next person at times, when it comes to things I don’t really want to do.

And I’ve heard rumors that (for some unknown reason) many people don’t like to file taxes — even here in Fort Collins?

It appears that most folks do NOT like to fill out reams of paperwork only to finally discover how much money they are really giving to the IRS!

This, of course, is why we here at Team Meyer work so hard — to make this process as painless as possible, and to ensure that you keep all the money you deserve to keep, legally and ethically, under the current tax code.

And we’re in full “all-irons-in-the-fire” mode around here these days, with two weeks left to go in tax season.

So here’s my question — have you been in to see us yet? If you haven’t (or you have a friend who hasn’t), see the end of this post for a special “Procrastinators Only” Gift Certificate.

In fact, did you know that many Fort Collins tax firms (and “off the shelf” software companies) actually raise their prices on procrastinators? But that’s not how I believe clients should be treated.

But, although I will NOT raise prices…I will encourage my procrastinating friends with some wisdom from a former procrastinator…

A Fort Collins Tax Preparer’s Take on Beating Procrastination
When your day wraps to a close, are you leaving tired and satisfied? Or just … tired?

You’ve spent the day in nearly constant activity.

And you may have been procrastinating the whole time.

“Huh?” you say, “I can’t have been procrastinating.  I’ve been really busy!”

But there’s the rub: when we’re busy, we can easily trick ourselves into thinking that all of that activity means we’re not procrastinating. Yeah, we’re busy — but we’re not focused on the things that should really have our attention. If someone were to tap us on the shoulder and say, “that thing you’re doing — is that the best use of your attention right now?,” we would hesitate to agree.

We’re busy procrastinating.

The explosion of digital channels and the mobile web makes it very easy to integrate busy-ness and procrastination. There are a lot of “channels that lead to you.”  Email, sure. But also Facebook and Twitter and instant messaging and LinkedIn and … etc., etc.

The inputs from these channels come at us thick and fast. That makes it tempting to let the real-time arrivals drive us. Procrastination is always only a click away.

But ask yourself: what are the odds that email at the top of your inbox is the best thing to focus on next? If it’s not, and you choose to deal with it next anyway, then you’re being driven by “latest and loudest,” and are letting your channels dictate your priorities.

So, if you’re struggling with procrastination, then what should you do? To get it under control, we need to make getting moving on the right things as attractive as possible.

Procrastination usually boils down to: 1) Not Thinking or 2) Not Doing. Here’s how to beat each…

1) Not Thinking.
I’m avoiding thinking about things I know I should think about.

There can be all kinds of reasons we don’t want to think about a given item, or issue. Whatever the reason, it is usually because of the size or complexity of the issue.

So, boil it down to its contingent parts, and address the smaller issues within the larger whole. Ask yourself: What’s the exact, smallest action that can be taken to move this forward? And, What do I want to see happen from that action? You can always address those questions.

Which leads to…

2) Not Doing.
I’m avoiding doing things I know I should be doing.

Again, break it down into something smaller. Take the tiny action, do it again … and you’ll find yourself suddenly settled into taking the larger action you had been putting off in the first place.

Here’s one small action…

Consider us “The Ultimate Procrastination Solution”.

Allow us to take the pain away from that big pile of forms and obligations … and allow yourself to move into sustained action on those bigger things.

Call us: 970-490-2172

And, of course, here’s something which will make it even easier…
+++++++++++++++++
“PROCRASTINATORS ONLY” Special Gift Certificate
$23 Towards Any Tax Service
“Yes, I Have Procrastinated Filing My Taxes This Year … But I Still Want to Protect Myself from All the New Tax Laws and Get MORE Money Back from Uncle Sam with A Peace-Of-Mind Guarantee that’ll Keep Me Sleeping like a Baby when My Taxes are Filed with the IRS!”
Deadline April 15th
Not valid with any other offer
+++++++++++++++++

To your family’s financial and emotional peace … even if you’re a procrastinator!

Not that we’ve had much time for those shenanigans around here in our Fort Collins offices — we’re running faster than hamsters in a research lab!

Seriously though, it’s crunch time around here … but that doesn’t keep us from reaching out to you this week. And before I get into my main note to you this week, I wanted to make brief mention of an article someone sent us from the New York Times, and its “Ethicist” column. Apparently, there’s a [name withheld] tax lawyer who doesn’t like his clients very much:

http://www.nytimes.com/2013/03/24/magazine/a-tax-lawyers-quandary.html?ref=magazine&_r=0

Because let me be abundantly clear: finding *legal* loopholes for our clients is our job. And, of course, we do so ethically. If the tax law allows it, and it retains the spirit of the law, we do everything we can to help our clients find ways to save their hard-earned revenue.

If you don’t like that … well, I’m not sure why you wouldn’t like that!

Now, we’re under the 3-week mark for when personal taxes are due. Believe it or not, there are some out there who don’t yet think we’re in the “procrastination” stage yet. I’ll address you more next week. Perhaps some have learned too well what I’m addressing this week….

Expert Fort Collins Tax Advisor on The Power of Waiting
You can learn a lot from marshmallows.

In the late 1960s, a five-year-old named Craig Weisz was presented with a tempting offer. Walter Mischel, a research professor from Stanford University, gave Craig a marshmallow and said that he (Mischel) needed to go out of the room for a few minutes. If Craig did not eat the marshmallow during that time, he would be rewarded with a second marshmallow. Those who have years of practicing impulse control may have a hard time imagining the agony this proposition would cause a young child.

This study has been reproduced many times over, and the videos of the children participating, some of which can be found online, are quite entertaining. Some stare closely at their target; others try to distract themselves by singing. One child hits his head on the table, and another pulls his hair while waiting. Some start off by licking the marshmallow, and others take tiny bites before consuming the rest.

In the end, most kids eat the marshmallow before the researcher reenters the room fifteen minutes later. Craig ended up eating his marshmallow before Mischel returned; his sister delayed and earned a second.

Michel continued to track the behavior of all these students through adulthood. The results of his research showed an overwhelming connection between the power to delay and high academic and professional achievement. The delayers also displayed lower levels of obesity and were less likely to use narcotics. They had developed a strong future-time perspective.

I was especially interested in the fact that the children who came from poorer backgrounds were more likely to eat the marshmallow immediately. This makes intuitive sense because these children are more likely to have experienced insecurity at home. I would guess that some may have endured a time when there was no food in the house at all. Others may have suffered when money they had saved was taken by another family member to pay for groceries or some less essential purchase.

My point is that you need to have a basic level of trust in the security of a system before you will delay. If there is great risk to saving part of your allowance, you learn quickly that it’s better spent than saved. The ability to delay is probably due in part to our specific genetic makeup (Craig ate his marshmallow but his sister did not), but it is also highly dependent on the environment in which we have been nurtured.

Researchers are now looking for ways to teach delayed-gratification. Mental distraction is one such tool when tempted with instant gratification. The children who took to singing were exercising this strategy.

Mischel also taught children to pretend the marshmallow was only a picture surrounded by an imaginary frame. By mentally shifting the marshmallow from the plate in front of them to a pretend place, children who were barely able to wait 60 seconds learned to delay for the entire 15 minutes.

Like the marshmallow study, saving and investing for your retirement requires putting something small at risk with the expectation that it will grow significantly over time. Disciplined investors have exercised these muscles of delayed gratification for many years. And like the marshmallow study, investment discipline also requires trust. No one will invest if they believe they may not be treated fairly or if they think the result too unpredictable. To encourage risk-taking, investors need to have a reasonable expectation that they will receive their capital back with appreciation.

Parents can encourage these traits of delayed gratification in their children by teaching them mental tricks to cope with hot impulses. Assuming you have a sound investment strategy, disciplined investors also need to nurture mental games that encourage delay.

Learning to avoid these hot impulses can be particularly challenging for investors and families because the financial media is more likely to capture your attention by inflaming the very emotions you wish to control. And while the children sang and played mental games to redirect their attention for a time, adult investors will need to develop their own coping mechanisms.

Even though we’re primarily tax advisors, we can still provide you with a sounding board and a planner’s perspective on what you are doing with your assets.

Call us today: 970-490-2172

To your family’s financial and emotional peace … even if it means waiting sometimes.

+++++
Make the “switch” to Judy Meyer for your 2012 tax filing — and receive a complimentary post-season tax planning session.
($250 value)
First TEN new clients only
+++++

And, of course, last week’s news that over 600,000 returns would be delayed due to training errors by Block came on top of the news from the state of Minnesota that TurboTax users would be delayed and affected by programming issues. And then we hear over the weekend that the State of New Jersey will be delaying refunds by 90 days in many cases …

It’s already been a wild tax season for Team Meyer.

But I do hope that you’re assured that having a carefully-trained expert on top of YOUR file has been (or will be) the way to go for your tax filing.

And, as much as I’d like to say that things will improve in the future … with the IRS taking the forefront on enforcing and implementing the ACA Act (aka Obamacare) … we can expect that “more user-friendly” won’t be said of future tax forms.

But enough about all this. You should have received information from us about what you need to bring in, and if you have any further questions, feel free to drop us an email or give us a call at 970-490-2172.

Now, I’d like to switch gears for bit, and address my clients and contacts who are facing momentous retirement decisions…

Fort Collins Tax Service Explains Social Security Election and Retirement Planning
Social Security benefits can represent a big stack of cash for a Fort Collins couple. A typical monthly benefit of $2,200 has a present value of well over $500,000.00! So, despite the fact that it seems like an easy decision, you need to consider all your Social Security options carefully to avoid making a costly mistake.

Like all government law, Social Security is not a simple piece of legislation. Since the Social Security Act became law in 1935, hundreds of amendments have been piled onto it, and have thereby added to the complexity. So to make the best decision about how to file for it, you’ll need to consider four things: 1) health, 2) income before retirement and 3) income during retirement, and 4) taxes.

Retirees cannot rely on conventional wisdom! Simplistic “rules” such as “Always file for early benefits” or “You need to stop working to receive benefits” are NOT always true. There are specific cases that break every rule of thumb. And these one-size-fits-all answers leave many retirees failing to maximize the benefits they have earned.

At least four methods are used when electing how to take Social Security. And if you’re married, the two of you can mix and match these in more than 16 different ways (!). Each choice results in a different cash flow. By using the cash flows and the time value of money, you can determine which method will offer you the best maximum value.

So these methods differ significantly… they depend on your historical earnings, marital or divorce status, continued work in retirement, life-longevity and rates of return. The choice alone could be worth $250,000 of income or more. Filing options include “early filing,” “standard filing,” “delayed filing,” “file and suspend,” and many combinations of these options for married couples. It is DEFINITELY worth careful study and analysis of each option… yet a majority of Americans make their choice impulsively and emotionally.

The decision is even more crucial for women. For 42% of single women older than 62, Social Security is their sole source of income. Women on average outlive men. Thus, planning for retirement is usually much easier for men (who statistically tend to have more assets and die younger). Widows are twice as likely to live under the poverty line as men who have lost their wives. And the poverty rate for elderly single women is 23% compared with just 5% for retired couples.

So couples must take their joint longevity into account before either one files for benefits. The person with the longer life expectancy will inherit either a wise or a foolish decision that will last a lifetime. Given that a husband’s benefits are often higher and the wife’s life expectancy longer, each case needs to be analyzed carefully.

Unfortunately, many people file after considering only one or two options in isolation. Even worse–the Social Security Administration’s new online filing system enables quick decision-making. People can easily submit their request without any professional advice or planning.

Before filing, then, you obviously should be informed about all the options. To begin, you need to know your personal Social Security earnings and the projected benefits for both you and your spouse. You can request an estimate at www.ssa.gov/estimator and then print the results. Or call the Social Security Administration at 800-772-1213. You can also get a copy of “Retirement Benefits” (Publication No. 05-10035) online.

Social Security planning is crucial for everyone. People with significant assets should carefully consider both the lifetime benefits and tax consequences of Social Security in light of their overall portfolio strategy. For the less well-off, Social Security benefits will dictate their retirement lifestyle. Proper planning could well determine what they can afford to eat.

So … there’s obviously a lot to consider here. I recommend you sit down with somebody here in Fort Collins you trust that can walk you through your different options. It could make a BIG difference in your lifestyle!

Regardless, I do hope this helps.

After all, we’ve helped many Fort Collins (and beyond) families “make the switch” over to us, year after year. I know that you’ve probably established a rhythm with your current provider (even if it’s not a “good” rhythm), and that you may dread the prospect of having to teach a new tax preparer about your family’s financial dreams and goals.

(By the way, are you using a tax professional who cares about those?)

Which is why this blogpost would be for you. (And if you’re already using us, then you can safely ignore this particular message, and skip to the end where we do have some information for you, perhaps merely as a reminder.)

Many Fort Collins families are pulling together their paperwork to deliver to their preparer this week … and before you do that with your existing preparer, I’d like to give you a reason to try us out.

I’d rather not “bad mouth” other tax accountants in the area, but suffice to say that we’ve had to do our share of re-doing other accountants’ work. In some cases, we’ve recovered significant sums during an amendment process, by reviewing an old return (from the last 3 years), and taking advantage of ethical and legal tax credits and deductions which other accountants don’t utilize.

But even more than that … we want to give you a gift:

+++++
Make the “switch” to Judy Meyer for your 2012 tax filing — and receive a complimentary post-season tax planning session.
($250 value)
First TEN new clients only
+++++

Call us now, and we’ll book your tax planning session for sometime in May or June (after the chaos of tax season subsides), and we’ll work PRO-ACTIVELY on your asset and accounting mix to ensure that your 2013 returns are as well-protected from Uncle Sam’s grasping hands as possible.

970-490-2172
(First ten new clients only)

Now, back to our regularly-scheduled programming…

Meyer’s Tax Time Checklist (Again)
In early January, I sent a “checklist” email to our list (and if you’re not receiving our weekly emails, you really should fill out the quick form here on this page to receive a copy of one of our free reports — we’ll add you to our list as well, so you’ll be the among the first to receive important updates and exclusive offers from us), and it was one of our most popular messages. I guess it was handy!

Putting together this list may run slightly counter to my business goals — after all, we do get paid to do this on behalf of clients! That said, our mission is to ensure that EVERYONE in our local Fort Collins area saves the most possible when the IRS comes calling! Some of these may seem small, but trust me when I say that they add up.

So…even if for some strange reason you won’t be using our cost-effective services this year, and because we’re getting so close to April 15th, here it is again for you: what you’ll need to prepare your taxes…

Personal Data
Social Security Numbers (including spouse and children)
Child care provider tax I.D. or Social Security Number

Employment & Income Data
W-2 forms for this year
Tax refunds and unemployment compensation: Form 1099-G
Miscellaneous income including rent: Form 1099-MISC
Partnership and trust income
Pensions and annuities
Alimony received
Jury duty pay
Gambling and lottery winnings
Prizes and awards
Scholarships and fellowships
State and local income tax refunds
Unemployment compensation

Homeowner/Renter Data
Residential address(es) for this year
Mortgage interest: Form 1098
Sale of your home or other real estate: Form 1099-S
Second mortgage interest paid
Real estate taxes paid
Rent paid during tax year
Moving expenses

Financial Assets
Interest income statements: Form 1099-INT & 1099-OID
Dividend income statements: Form 1099-DIV
Proceeds from broker transactions: Form 1099-B
Retirement plan distribution: Form 1099-R
Capital gains or losses

Financial Liabilities
Auto loans and leases  (account numbers and car value) if vehicle used for business
Student loan interest paid
Early withdrawal penalties on CDs and other fixed time deposits

Automobiles
Personal property tax information
Department of Motor Vehicles fees

Expenses
Gifts to charity (receipts for any single donations of $250 or more)
Unreimbursed expenses related to volunteer work
Unreimbursed expenses related to your job (travel expenses, entertainment, uniforms, union dues, subscriptions)
Investment expenses
Job-hunting expenses
Education expenses (tuition and fees)
Child care expenses
Medical Savings Accounts
Adoption expenses
Alimony paid
Tax return preparation expenses and fees

Self-Employment Data
Estimated tax vouchers for the current year
Self-employment tax
Self-employment SEP plans
Self-employed health insurance
K-1s on all partnerships
Receipts or documentation for business-related expenses
Farm income

Deduction Documents
State and local income taxes
IRA, Keogh and other retirement plan contributions
Medical expenses
Casualty or theft losses
Other miscellaneous deductions

While some of these statements, and their ensuing deductions, may seem like “pocket change”…just a few minutes of effort can pay a nice hourly rate! And, better in YOUR pockets than in Uncle Sam’s, right?

So, I hope this helps.

To your family’s financial and emotional peace…