Thornapple Financial Center, Inc. and Money Concepts

IRS Announces increased HSA Contribution Limits

Newspapers, industry websites and television pundits have been buzzing for the last few months about the future of healthcare. Will it be government sponsored, will the market set prices, or will it look like a combination of the two? At this point, we do not know. The Congress and the President will be discussing the details all summer, but we believe the market for the Health Savings Account has never been better.

The Internal Revenue Service recently released the 2010 Health Savings Account contribution and High-Deductible Health Plan levels.The catch-up contribution, available to account holders over age 55, will remain at $1,000.

About FlexHSA

FlexHSA combines a bank deposit account and a standard Pershing retail brokerage account in one. This integrated structure allows for the automatic movement of the funds from the bank account to brokerage account (and back again), adding flexibility and simplicity to the process. Other advantages of the FlexHSA solution include:

• Investments in the FlexHSA account are on the Pershing Platform – its “business as usual” for you to manage the assets
• You are compensated for the advice and management of your clients’ healthcare dollars in the brokerage account
• Your clients can monitor and track their accounts through Personal Cash Manager, a secure web-based account management tool
• Banking activity and value of HSA investments are combined on one FlexHSA statement available 24/7

To learn more about FlexHSA, please call 866-472-0892.

      

As the economy continues its climb out of recession, many families might be thinking twice about what they spend on the annual summer vacation. But there are ways to preserve the tradition by being smart about spending. Some ideas:

Get on the mailing list:

For any possible destination you can think of, go to their Web sites early and get on their mailing list. You might get plenty of endless chatter from the hotels, amusement parks and other destinations you’re interested in, but you might also find coupons to those locations and other linked businesses that could save you money.  [Read the rest...]

      

It’s always a good idea to be vigilant about your credit score, but even if borrowing loosens up a bit in 2009, you still need to do everything necessary to keep your credit score high.

Fair Isaac, the company that created the FICO score, has been working on a new version of its credit scoring method that might have serious consequences for you if you’re planning on borrowing for a home or opening any new credit line in 2009.  [Read the rest...]

      

This year one of our goals is to double check all of your beneficiaries for you.  During tax season we had two different events where the people were our tax clients but not our investment clients.  First a husband and father of a little girl was killed in a car accident.  He had started his job prior to being married and had listed his mother as his primary beneficiary.  Unfortunately his mother kept the life insurance proceeds and is not giving them to her daughter-in-law and grandchild.  The second involved an ex-wife receiving the proceeds.  Please set up a beneficiary review!

      

If you are without health insurance because you have been laid off, your employer no longer offers this benefit or you have lost your job please call our office so that we can help you look into some affordable  options for you.  The quickest way to bankrupt your family and your extended family is to not have health insurance.  Please give us a call at 269-795-3387.

 

      

Residential Energy Property Credit (Section 1121): The new law increases the energy tax credit for homeowners who make energy efficient improvements to their existing homes. The new law increases the credit rate to 30 percent of the cost of all qualifying improvements and raises the maximum credit limit to $1,500 for improvements placed in service in 2009 and 2010.

The credit applies to improvements such as adding insulation, energy efficient exterior windows and energy-efficient heating and air conditioning systems.

A similar credit was available for 2007, but was not available in 2008. Homeowners should be aware that the standards in the new law are higher than the standards for the credit that was available in 2007 for products that qualify as “energy efficient” for purposes of this tax credit. The IRS has issued guidance that will allow manufacturers to certify that their products meet these new standards.

Until the guidance is released, homeowners generally may continue to rely on manufacturers’ certifications that were provided under the old guidance. For exterior windows and skylights, homeowners may continue to rely on Energy Star labels in determining whether property purchased before June 1, 2009, qualifies for the credit. Manufacturers should not continue to provide certifications for property that fails to meet the new standards.

Residential Energy Efficient Property Credit (Section 1122): This nonrefundable energy tax credit will help individual taxpayers pay for qualified residential alternative energy equipment, such as solar hot water heaters, geothermal heat pumps and wind turbines. The new law removes some of the previously imposed maximum amounts and allows for a credit equal to 30 percent of the cost of qualified property. See Notice 09-41.

      

The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1.

For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer’s main residence within a three-year period following the purchase.

First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date. But, if the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting an extension of time to file or by filing an amended return. News release 2009-27 has more information on these options.

      

WASHINGTON — The Internal Revenue Service announced today that taxpayers who buy a new passenger vehicle this year may be entitled to deduct state and local sales and excise taxes paid on the purchase on their 2009 tax returns next year.

“For those thinking about buying a new car this year, this deduction may give them a little more drive to make their purchase this year,” said IRS Commissioner Doug Shulman. “This deduction enables taxpayers to buy now and get cash back later on their tax returns.”

The deduction is limited to the state and local sales and excise taxes paid on up to $49,500 of the purchase price of a qualified new car, light truck, motor home or motorcycle.

The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.

IRS also alerted taxpayers that the vehicle must be purchased after Feb. 16, 2009, and before Jan. 1, 2010, to qualify for the deduction.

The special deduction is available regardless of whether a taxpayer itemizes deductions on their return. The IRS reminded taxpayers the deduction may not be taken on 2008 tax returns.

      

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Watch for upcoming QuickBooks seminars this fall.

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Ingredients:

Boiled potatoes with skin on

Diced onions

Bacon pieces

Shredded Cheese

Dressing:

Light Miracle Whip

Milk

Seasoning Salt

Sugar

Cut up cool boiled potatoes into pieces.  Toss with  onions, bacon pieces ( I use  Hormel Real Crumbled Bacon ), and shredded cheese.  Mix dressing in separate bowl and add a generous amount as the salad will absorb the dressing.  Refrigerate.  Stir before   serving and add additional dressing if necessary.