Dear Liz: I’m 80 years old and my wife is 76. Our only retirement income is Social Security, and we have less than $50,000 in savings. We have about $600,000 equity in our house, which we bought in 1971. We presently have property taxes deferred, at 6% interest. The house is in disrepair. We have two […]
Recent Blog Posts
Q&A: When receipts of home renovations are lost, is the tax break gone too?
Dear Liz: I have sold my family home recently after almost 50 years. I had done lots of improvements throughout those years. Due to a fire 15 years ago, all the documentation for these improvements has been destroyed. How do I document the improvements for the capital gains tax calculation? Answer: As you probably know, you can […]
Q&A: When an employee is misclassified as contractor
Dear Liz: A parent recently wrote to you about a son who was being paid as a contractor. I know someone else who got a job that did not “take out taxes from his paycheck.” Such workers believe they are pocketing more money, but unfortunately, too many do not know about the nature of withholding. They […]
Q&A: Be aware of these issues when switching between Medicare Advantage and Medicare
Dear Liz: I am planning to retire this year. If I choose a Medicare Advantage Plan, am I able to switch back to original Medicare without paying a fine? Answer: Medicare won’t charge you extra, but you won’t necessarily have “guaranteed issue” rights for a Medigap supplemental policy. If you want to switch after the first 12 […]
Q&A: Don’t confuse Social Security’s spousal and survivor benefits
Dear Liz: I waited until 70 to start taking Social Security. My wife, who is the lower earner, took a spousal benefit at her full retirement age. I know she is entitled to my benefit when I pass. However, I understand she does not get my current benefit but the amount I would have received if […]
Q&A: Health savings accounts offer a rare triple tax break. Here’s what to know
Dear Liz: Can I contribute additional money to my health savings account, above the amount I’m contributing through payroll deduction? Also, I have an HSA account from a previous employer and one from my current employer. Can I combine the two? Answer: If you have a qualifying high-deductible health insurance plan, you can contribute up to $4,300 […]