By Sheila Curtis
If you are turning 65 any time soon, you need to be aware that the age for full Social Security benefits differs from Medicare eligibility.
Medicare still takes effect when you turn 65. Those collecting Social Security before age 65 automatically will be enrolled into Medicare A and B the first day of the month they reach that magic age.
But those who waited to collect Social Security need to know there are time frames and penalties associated with Medicare.
Medicare Part A (hospital insurance) is free to those who have worked 10 years and paid into Medicare. There is a monthly premium for Medicare Part B (medical insurance) and Part D (prescription insurance). You have a seven-month period to sign up for Medicare A, B and D when first eligible (three months before turning 65, the month of, and three months after).
If you do not sign up for Medicare Part B when first eligible, you will have to wait until the annual open enrollment period (January 1-March 31) with an effective date of July 1 and you may have to pay a penalty of 10 percent each year you did not sign up for Part B. This penalty will be added to the premium each month as long as you have Medicare Part B coverage.
If you do not sign up for a Part D drug plan when first eligible and you do not have "creditable" drug coverage-meaning at least as good as the Medicare plan-or you lost "creditable" coverage more than 63 days ago, you will have to wait until the annual enrollment period (November 15-December 31) with an effective date of January 1. You may also incur a penalty of one percent each month you did not sign up for a Part D plan.
If you or your spouse are actively working and receive health insurance from your employer, you may not need to take Medicare Part B or D. When you lose this coverage you have an eight-month period to pick up Part B and 63 days to join a Part D plan without incurring a penalty.
This can be very confusing and we are here to help. Contact your local Senior Center to make an appointment with their SHINE (Serving the Health Information Needs of Elders) counselor or call the regional SHINE office at 1-800-334-9999 if you need more information or assistance.
(Ms. Curtis is Regional Director of SHINE, Serving the Health Information Needs of Elders, a division of the Massachusetts Executive Office of Elder Affairs.).
In cooperation with the National Association of Counties, Barnstable County has launched a discount card programs to help consumers cope with the high cost of prescription drugs.
These free cards offer an average savings of 20 percent off the retail price of commonly prescribed drugs. They may be used by all county residents regardless of age, income or existing health coverage at many Cape pharmacies and also at thousands of participating pharmacies nationwide. All you have to do is show the card.
The Barnstable Count Rx cards are available free of charge at the County offices, a wide range of human services agencies and town boards of health.
There is no membership fee, enrollment forms or restrictions on frequency of use. Cardholders may use the card any time their prescriptions are not covered by insurance. Residents do not have to be Medicare beneficiaries to be eligible for this program, Best of all, there is no cost to county taxpayers for administering this program. For more information, contact 1-877-321-22652 toll free or https://naco.advancerx.com.
By G. Robert King II
If you're self-employed and conduct business out of your home, or if you telecommute to your job in your pajamas, the Internal Revenue Service (IRS) may allow you to take advantage of the home office tax deduction.
Before you deluge your accountant with receipts for expensive office furniture and electricity, however, proceed cautiously. Specific and often confusing requirements must be met to claim this.
If these technical requirements are met, you may be able to deduct a percentage of real estate taxes, mortgage interest, rent, utilities, insurance, depreciation, painting, and repairs. This deduction is available to homeowners or renters.
Furthermore, the IRS defines a "home" as a house, condo, apartment unit, or even a boat. Self-employed individuals typically find it easier to qualify for this deduction. The IRS has established these two prerequisites:
The regular-use requirement is not clearly defined, but generally means you must use a designated part of your home for business purposes on a continuous basis. However, this can be taken as a few hours each day or a couple of days a week. But you must use this designated area solely for business. No using your computer for personal e-mails.
The IRS does offer two exceptions:
In the latter case, you can qualify even if the storage area is not used exclusively for business. A salesperson who stores inventory or product samples in the basement also may use the area for, say, a workshop.
But there are limitations. If you have an office-or any other business location other than your home-you won’t qualify for the deduction. Then, the items have to be stored in a specific, dedicated place, such as a garage, closet, or spare room.
If you operate out of more than one business location, including your home, you must determine whether the home is your principal place of business. The home would automatically qualify if you conduct administrative or management activities solely from there and from no other fixed location. You must meet both of these provisions. For example, a consultant who performs services for various clients at various locations might regularly use a home office for bookkeeping or scheduling and thus qualify.
Alternatively, employees who work at home also may qualify if they also satisfy the standards noted above for self-employed individuals. However, use of a home office must be for an employer's convenience. If your company does not provide work space, requiring you to operate from home, you likely would qualify. But if you have an office at your employer's location and telecommute occasionally for convenience, this generally would preclude taking the deduction.
Generally, the amount you can deduct depends on the percentage of your home that is used for business. The deduction will be limited if your gross income from your business is less than your total business expenses. Employees must be able to itemize deductions, using Schedule A. Self-employed individuals use Schedule C.
Finally, be prepared to demonstrate to the IRS that you qualify for this deduction. Take photographs of the office, have your business mail sent home, set up a separate phone line exclusively for business purposes, and log the time that you spend working at home.
(G. Robert King is a CERTIFIED FINANCIAL PLANNNER® practicing in Hyannis and is a registered representative of Commonwealth Financial Network-a member firm of the NASD/SIPC. He can be reached at 800-325-1099 or robert@capitalportfolios.net.)