Central Ohio Real Estate - Sandra Thomas Blogs

Understanding your insurance can help you save time, money and maybe your own health. 
 
(NAPSA) - With the right information, you may be able to save money on your medications right now. That's because an often overlooked part of any health care plan can be the prescription drug benefit. Knowing how to make the most of prescription drug coverage can be key to keeping your medical expenses as low as possible. 
 
"When problems with coverage arise, often patients will pay out of their own pockets or, worse, go without the medicines they need to stay healthy. Because that can take a tremendous toll physically and financially, it's important for consumers to know whether they really should be shouldering those costs or if their plan can help them," says Sally Greenberg, executive director of the National Consumers League. 
 
It's one of several organizations supporting an educational effort called Your Pharmacy Benefit (YPB) that helps consumers understand the rules of their coverage, how to get the most out of their coverage and how to tackle problems that may arise. 
 
For example, the organization advises, if you've been told there's a problem filling your prescription, don't walk away from the pharmacy counter until you know what the problem is. It may be easy to fix. If the information in the pharmacy computer doesn't match what is on your current pharmacy ID card, you may just need to show your card to update your record. 
 
Sometimes the problem is something your doctor should know about. For example, if the medicine could react badly with another medication you take, your plan may need your doctor to confirm that you should take it before the plan will pay. 
 
Even if you're told a medicine you need is not covered, if your doctor thinks it's important for you to have it, you can appeal the plan's decision. Write a letter to the plan and ask for the medicine to be covered or to be paid back for the cost of the medicine if you have already paid for it yourself. Your doctor may have to explain why you need this specific medicine. 

Dan Leonard, president of the National Pharmaceutical Council, another organization sponsoring YPB, said, "One common problem patients encounter is that the pharmacist cannot fill the prescription. There are a variety of reasons this might happen. YPB materials help with troubleshooting and even provide guidance on how to file an appeal with the insurance company if needed." 
 
For Medicare beneficiaries, there is special information on how to navigate the "coverage gap" and how to navigate appeals and exceptions within the Medicare Part D program. 

www.coldwellbanker.com/sandrathomas

How many of you have ever purchased a private label product only to be disappointed with 
the quality or taste? Me, too. Well, how would it be if you could buy stuff every bit as good as the nationally advertised 
brands and save a bundle (as much as 50+ percent) at the same time? I see most of the same hands are still up. Here goes 
then. 
 
Table Salt: At discount grocery stores, like Save-A-Lot or Aldi, you can buy a 26-ounce round box of salt for as little 
as $.37. Or, you could spend twice as much or more for the same size container of salt with that cute little girl and her 
umbrella on the label. Remember that all table salt (sodium chloride), iodized or not, is the exactly the same no matter 
who packages it. 
 
Baking Soda: At the discount grocery, a yellow one-pound box of baking soda typically sells for less than $.50. The same 
size yellow box sporting the muscular bicep on the label retails for around $.79. Just like table salt, all baking soda 
is the same stuff with the identical chemical composition, sodium bicarbonate. I can't explain why all boxes of baking 
soda are yellow, but it's probably for the same reason that all window cleaners are blue. 
 
Baking Powder: All double acting baking powders work basically the same way. They contain two types of acid salts, one for 
room-temperature reaction and another (like calcium aluminum phosphate) for reaction during baking. So you can buy the 
little red can with Chief Calumet on it, or pick up a can of essentially the same stuff at the discount grocer for about 
half as much. As an aside, many of the cereal box toys I purchased from Battle Creek, Michigan for two box tops and 
$.25 were all powered by the CO2 released from baking powder. I must have been 10 or 11 before it dawned on me that baking 
powder could be used for baking too! 
 
Aspirin Tablets: Aspirin (salicylic acid) is another specifically defined chemical compound that is the same and 
works the same regardless of which bottle you shake it from. At the dollar store, a 300 count bottle is a steal at just a 
buck, as opposed to a 100 count bottle of aspirin sporting those cute little "+" signs, which usually sells for about 
twice as much. And I doubt that your headache or hangover will care which variety you toss down. A third as many pills for 
twice as much? If you do the math, that's six times as expensive per pill. Ouch! I don't know about you, but I simply 
can't "bear" that. 
 
Butter: You can pick up a one-pound box of "Native American Princess" butter at most grocers for about $3.29/lb. Or, you 
could buy the same size box of AA grade butter at the discount grocer for less than two dollars. The funny thing about 
expensive versus inexpensive butter is that it tastes exactly the same. It should too; it's the exact same stuff. 
 
White Vinegar: Most of us use white vinegar for cleaning the crud out of our coffee makers and other household chores. And 
most, if not all, white vinegars are made from grain and water. Now you could buy a quart of the stuff made by the 
pickle guys for about $1.69, or you could buy the same size bottle at the discount grocery for $.89. I might be wrong, but 
I'm guessing your coffee maker won't know the difference, but your wallet will. 
 
And there's 2% milk, ordinary flour, five-pounds bags of cane sugar, 60 watt bulbs, and heaps of other stuff I honestly 
can't think of where the "off brands" or store brands are the 100% equivalent of their pricier nationally advertised 
counterparts. 
 
Will the one-time purchase of any of these items save you enough to buy that villa in Tuscany? Definitely not! But added 
up over time, buying the same darn thing for heaps less money will save you a pile. By Rich Finzer 

www.kingthompson.com/sandrathomas

As many consumers tighten their belts, gardening is once again 
gaining popularity. Across the country, victory gardens, once 
popular during World War II, are springing up as consumers 
look to trim their budgets by growing their own produce. But 
did you know that there are ways to cut down your expenses, 
even in the garden? 
 
With a little bit of foresight and organization, you can make 
your gardening effortless while at the same time eliminating 
the need for expensive tools such as tillers, sprinklers and 
electric timers. How? Through sheet composting. 
 
More popularly known as Lasagna Gardening (thanks to writer 
and gardener Patricia Lanza), sheet composting involves 
layering mulch and compost over your garden rather than 
tilling the soil. As the layers decompose, they enrich the 
soil. Best of all, this is a no-till garden, as plants are 
planted directly into the layers of the garden. 
 
To begin the process, mark out the area in which you want your 
new bed to sit. Then trample or cut down any vegetation in 
that area. Over the top of this, place a layer of either 
newspaper or cardboard to act as a barrier against weeds or 
grass. Then add a layer of peat moss or manure. 
 
Next come layers of organic materials such as grass clippings, 
dead leaves and kitchen scraps. Remember that the 
microorganisms that break down these materials need both 
nitrogen and carbon-rich materials, so try to add your layers 
by alternating between the carbon rich "brown" layers like 
leaves and straw and the nitrogen rich "green" layers, which 
include grass clippings and kitchen scraps. 
 
Some examples of the materials that you might use include 
weeds, grass clippings, leaves, manure, hay, straw, fruit and 
vegetable scraps, tea and coffee grounds, manure, compost, 
sawdust, peat moss, shredded newspaper or junk mail, pine 
needles, bark chips, seaweed and coconut husk. 
 
Materials that should not be put into the sheet compost layers 
include weeds that have gone to seed, animal fats or ***. 
 
The best time to sheet compost is in the fall to give the 
layers time to decompose and to kill off the vegetation 
underneath the paper layer. However, if you start your garden 
in the spring, you can still plant it. Simply pull back your 
layers of compost and plant the plants right in it. 
 
Cutting your mulch particularly dead leaves or plant stalks 
into smaller, more uniform sizes will not only speed up the 
decomposition time, but will also make your garden look 
better. 
 
Maintaining the sheet-composted garden is also simple. Just 
add more layers of mulch as time goes on. 
 
Best of all, sheet composting saves your budget in many ways. 
Firstly, you are saved the expenses of purchasing and 
maintaining a tiller as well as the cost of gas. Secondly, 
your water bill is trimmed because the layers of mulch hold 
more water than a tilled earth garden. Thirdly, for those who 
pay for trash haul-away, sheet composting reduces the volume 
of trash by giving you a place to put your kitchen scraps and 
grass clippings. And fourthly, there is no need to purchase 
expensive fertilizers, as the sheet composting materials are 
already very nutrient rich. 
 
Additionally, many sheet-composting aficionados swear that 
produce grown in a sheet composted bed is more abundant and 
healthy. In fact, you may have so much produce that you'll be 
tempted to either give it away or sell it. 
 
Sheet composting is also an inexpensive way to fill containers 
for your container garden. Simply layer the compost directly 
in a container the way you would in the ground. 
 
Finally, many of the mulch items used for composting are 
either free or can be found for little or no cost. For 
example, many supermarkets will give you the produce that they 
would ordinarily throw away if you ask them for it. For 
another source for compost layers, large chain coffeehouses 
like Starbucks often save their coffee grounds for gardeners. 
 
And neighbors are often glad to give you their grass clippings 
and leaves if you will simply haul them away. But, beware! If 
your neighbors know why you want their grass clippings, they 
may want some of your produce in exchange. 

First, the FTC amended its rules last year to prohibit telemarketing sales calls through prerecorded messages, whether the call is answered by a consumer or by an answering machine, unless the seller has previously obtained the recipient's signed, written agreement to receive such calls. The consumer's permission may be obtained electronically through a lawful e-signature. The rule does not prevent companies from making prerecorded messages that are informational in nature, such as calls that reconfirm appointments or reservations. All prerecorded sales calls must also contain an automated opt out mechanism that is provided at the beginning of a prerecorded message.

Second, the fee for accessing the Registry for specific area codes rises from $54 to $55 and the total cost for the whole Registry increases to $15,058. Last year, the law implementing the Registry linked the Consumer Price Increase index to the access fee cost, and so the access fees will increase as the CPI increases. The new access fees reflect the slight rise in the CPI over the past year.

This has changed for the better under the terms of this year’s economic stimulus package. According to the IRS, under the American Recovery and Reinvestment Act of 2009 qualified first-time homebuyers who purchase a home before December 1, 2009, are eligible to receive a tax credit of up to $8,000, and unlike the previous tax credit I talked about above, people can claim the credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year, and they do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. (http://www.irs.gov/newsroom/article/0,,id=204672,00.html)

Let’s dig into the basics of this tax credit a little further with some basic FAQ’s that will help you understand the full scope of how this credit works: (source: http://www.nahb.org/)

Who is eligible to claim the tax credit?
First-time homebuyers purchasing any kind of home-new or resale-are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the homeowner.

What is the definition of a first-time homebuyer?
The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the homebuyer and his/her spouse.

For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time homebuyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time homebuyer. 

How does someone claim the tax credit? Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, homebuyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on line 67 of the 1040 income tax form for 2009 returns (line 69 of the 1040 income tax form for 2008 returns). No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time homebuyer tests. Note that you cannot claim the credit on Form 5405 for an intended purchase for some future date; it must be a completed purchase.

How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

Are there any income limits for claiming the tax credit?
Yes. The income limit for single taxpayers is $75,000; the limit is $150,000 for married taxpayers filing a joint return.

What types of homes will qualify for the tax credit?
Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.

It is important to note that you cannot purchase a home from your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse. Please consult with your tax advisor for more information. Also see IRS Form 5405.

What is the $10,000 tax credit that I’ve heard about? Californians can take advantage of a state tax credit passed by the state legislature as part of the budget deal in February. This $10,000 credit applies to homebuyers who purchase a newly built home as their primary residence between March 1, 2009 and March 1, 2010. Unlike the $8,000 federal credit, the California credit is not limited to first-time homebuyers!

If I’ve already filed to receive the $7,500 tax credit on my 2008 tax returns for a home purchased in 2009, can I claim the new $8,000 tax credit instead?
Yes, homebuyers in this situation may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.

I bought a home in 2008. Do I qualify for this credit?
No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit. Please consult with your tax advisor for more information.

Is there any way for a homebuyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
Yes. Prospective homebuyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the down payment.

Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective homebuyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

In addition, rule changes made as part of the economic stimulus legislation allow homebuyers to claim the tax credit and participate in a program financed by tax-exempt bonds. As a result, some state housing finance agencies have introduced programs that provide short-term second mortgage loans that may be used to fund a down payment. Prospective homebuyers should check with their state housing finance agency to see if such a program is available in their community.

The Secretary of Housing and Urban Development has announced that HUD will allow “monetization” of the tax credit. What does that mean?
It means that HUD will allow buyers using FHA-insured mortgages to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 income taxes to receive a refund. These funds may be used for certain down payment and closing cost expenses.

Under the guidelines announced by HUD, non-profits and FHA-approved lenders will be allowed to give homebuyers short-term loans of up to $8,000.

The guidelines also allow government agencies, such as state housing finance agencies, to facilitate home sales by providing longer-term loans secured by second mortgages.

Housing finance agencies and other government entities may also issue tax credit loans, which home buyers may use to satisfy the FHA 3.5 percent down payment requirement.

In addition, approved FHA lenders will also be able to purchase a homebuyer’s anticipated tax credit to pay closing costs and down payment costs above the 3.5 percent down payment that is required for FHA-insured homes.

First-Time Homebuyers Have Several Filing Options

Per IR-2009-27, March 18, 2009 –  For people who recently purchased a home or are considering buying in the next few months, there are several different ways that they can get this tax credit. 

The filing options to consider are:

• File an extension. Taxpayers who haven’t yet filed their 2008 returns but are buying a home soon can request a six-month extension to October 15.  This step would be faster than waiting until next year to claim it on the 2009 tax return.  Even with an extension, taxpayers could still file electronically, receiving their refund in as few as 10 days with direct deposit.
• File now, amend later. Taxpayers due a sizable refund for their 2008 tax return but who also are considering buying a house in the next few months can file their return now and claim the credit later.  Taxpayers would file their 2008 tax forms as usual, then follow up with an amended return later this year to claim the homebuyer credit.
• Amend the 2008 tax return. Taxpayers buying a home in the near future who have already filed their 2008 tax return can consider filing an amended tax return. The amended tax return will allow them to claim the homebuyer credit on the 2008 return without waiting until next year to claim it on the 2009 return.
• Claim the credit in 2009 rather than 2008. For some taxpayers, it may make more financial sense to wait and claim the homebuyer credit next year when they file the 2009 tax return rather than claiming it now on the 2008 tax return. This could benefit taxpayers who might qualify for a higher credit on the 2009 tax return. This could include people who have less income in 2009 than 2008 because of factors such as a job loss or drop in investment income.