Many of my tax clients and friends here in the Shakopee, MN area are reaching a stage in life when healthcare decisions become more and more important.

And it’s our business to not only provide counsel and hands-on service to Shakopee, MN 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…

Shakopee, MN 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.

Roger Menden
952-445-8753

Many of my tax clients and friends here in the Shakopee, MN area are reaching a stage in life when healthcare decisions become more and more important.

And it’s our business to not only provide counsel and hands-on service to Shakopee, MN 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…

Shakopee, MN 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.

Roger Menden
952-445-8753

I don’t know about you, but I get pretty excited about the spring around here in Shakopee, MN. When the cold is gone, and the trees don’t seem so desolate … and am I right that the angle of the sun is a bit less harsh?

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 Shakopee, MN 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 Shakopee, MN 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!

Roger Menden
952-445-8753

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 952-445-8753 to set up this complimentary service!
Deadline May 10th
+++++++++++++++++

What a terrible week we suffered through as a nation last week. I’m still trying to process all of it, honestly, here in my Shakopee, MN tax office.

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 Shakopee, MN 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 Menden 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: 952-445-8753

On to the questions…

What To Do When The Taxes Are Done, Per Your Favorite Shakopee, MN 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 Shakopee, MN 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!

Roger Menden

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 952-445-8753 to set up this complimentary service!
Deadline May 10th
+++++++++++++++++

Wow, are we here at Team Menden ever tired! Thanks to you, our Shakopee, MN tax preparation business has been hopping this year. Because of the delays in the IRS system this year, we have many clients going on extension (about which I wrote last week), and we will continue to work with them … after we take a short break around here for some needed rest!

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 Menden 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 Roger Menden’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: 952-445-8753 and let them know I told you to call.” Join us on Facebook: http://www.facebook.com/pages/Menden-Accounting-Tax-Service-Inc/230199503195

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 Shakopee, MN 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,

Roger Menden
952-445-8753

I’ve been saving up all kinds of wise financial and personal strategies to share with you straight from “Shakopee, MN Tax Preparer Central”, but I hope you’ll allow me some forbearance. It’s fair to say that the office has been a little busy these last few months as we’ve been preparing tax returns for our Shakopee, MN and national clients!

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: 952-445-8753
(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/pages/Menden-Accounting-Tax-Service-Inc/230199503195
Here’s something you can say:
“I had my taxes prepared by Roger Menden’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: 952-445-8753 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.)

Shakopee, MN Tax Office Explains What’s Actually Being Extended
Let’s clear some things up with some facts for Shakopee, MN 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. 952-445-8753

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
+++++++++++++++++

Firstly, if your March Madness bracket is busted, apparently, you’re not alone.

Not that we’ve had much time for those shenanigans around here in our Shakopee, MN 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 Shakopee, MN 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: 952-445-8753

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

Firstly, we’re getting some nice feedback on last week’s message re: “making the switch” to Menden — and here is a small reminder for you here in Shakopee, MN (and beyond as well!), in case you missed it…

+++++
Make the “switch” to Roger Menden 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 Menden.

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 952-445-8753.

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

Shakopee, MN Tax Service Explains Social Security Election and Retirement Planning
Social Security benefits can represent a big stack of cash for a Shakopee, MN 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 Shakopee, MN 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.

While I’m still recovering from the weekend’s news that actual government workers owe over $3.5 billion in unpaid taxes, I would like to take a minute here to address you looking for the best tax preparer in Shakopee, MN who haven’t yet made the decision to use our services.

After all, we’ve helped many Shakopee, MN (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 Shakopee, MN 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:

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

952-445-8753
(First ten new clients only)

Now, back to our regularly-scheduled programming…

Menden’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 Shakopee, MN 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…

By the way, I have a couple of important tax season tidbits at the end of this post, after the article.

Well, the “sequester” is here, and nothing has collapsed just yet. Not to say that I’ve been able to watch too closely — we’ve been somewhat busy around our Shakopee, MN tax office here these days.

It sure would be interesting to be a fly on the wall of some of these budget meetings happening in government offices lately, though.

Because I’m always fascinated by the “behind the scenes” of what happens in different organizations or businesses. For instance, I wonder what the board meetings are really like for professional sports teams, or how those TV shows really get written and promoted. Some people think about the teams, the shows … I find myself thinking a lot about the business behind them. That’s just how I’m wired.

Well, one of the “behind the scenes” aspects of OUR work is our interaction with other tax professionals. We go to conferences (put on by the IRS, etc.), we share strategy with one another (unless we’re in fierce local competition — but even then, I make it a point to be giving), and we often get to see each other’s work (reviewing returns).

Last week, I wrote about how you could be a good Menden tax client … well, now I’m speaking of what my commitment is to YOU.

Because one of the problems with many tax professionals out there are the “terms” by which they operate, and a lack of communication about what happens when … well, read on.

Tax Filing Expert Roger Menden Explains What You Should Have in Place When There is a Mistake On The Return
Do you have a tax accountant who guarantees their work…in writing?

Sure, some guys might say: “We’ll make it right if we screw up”, but then the stuff hits the fan and they fight you every step of the way.

I’ve heard too many horror stories about taxpayers getting a letter from the IRS, then they take it to their accountant, and then the letter sits on a desk gathering dust.

Or stories about the CPA who makes some calls on your behalf, but then you get charged an arm and a leg in the process.  Or sadly, a taxpayer doesn’t get any help from the person who prepared their taxes for them so they “go it alone”, call the IRS themselves and have to try to figure out what to do and not to do during this normally ugly IRS correspondence … THIS can be a nightmare!

Don’t let that happen to you. You need to have a written understanding with your tax professional that you won’t be left in the lurch. Oh, and also: does this guarantee actually do something you want it to?

I’ve seen some accountants guarantee they will file your taxes for you by April 15th or they will file an extension for you.  Well…great!  That sure makes you feel good in the morning, doesn’t it?   Other weak guarantees I’ve seen in the tax industry are, “We guarantee we will begin preparing your tax return the same day we meet with you.”

That means nothing to me.  I don’t care when you start preparing my taxes.  I want to know how long it is going to take you to finish it, and to do so without silly errors you know you should have caught.

So remember–the guarantees should be in areas you care about, like:

Tax Return Accuracy … Speed of Service … Most Money Legally Yours … Ongoing IRS Protection For Years After Filing …

These are the things YOU care about!  Make sure the tax professional you choose stands behind these critical areas of tax preparation, so you get the most out of your tax filing experience.
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Now for those tidbits I mentioned:

1) There are (literally) BILLIONS of dollars in unclaimed refund money available from the IRS from 2009 returns. Here’s the catch: You must claim it by April 15th, 2013.

How do you do that? Have us take a look at your return, and file an amendment if we find something which needs changing, updating, etc. There are all kinds of reasons why this might be — suffice it to say, “nothing ventured, nothing gained”.

Or, alternatively, there are people who simply didn’t FILE a return, but just trusted that the taxes withheld from paychecks was correct. Oops — that’s where the IRS gets the billions figure, because there are so many unclaimed refunds due to unfiled returns.

Either way, we can help (and routinely do). Call us: 952-445-8753

2) The IRS is reporting problems with the “Where’s My Refund” tool: http://www.irs.gov/Refunds. Because of filing delays, there has been a surge in use of it. I guess their servers weren’t expecting people to, you know, use it.

3) And speaking of filing delays, this week, we’re able to file some returns we’ve had to sit on. If you had to use one of the forms on this page (http://www.irs.gov/uac/Newsroom/List-of-IRS-forms-that-1040-filers-can-begin-filing-in-late-February-or-into-March-2013), then we’ve been waiting on notification that we can file for you. As of this writing on Monday morning, we JUST got word that all forms and processes are updated and every kind of return can now be handled by their systems.