Weather the Storm:

Safeguard Your Financial Records against Rain, Sleet, and Snow…

 

It’s hurricane season. You have an evacuation plan, but will your financial/tax records and valuables also survive when disaster strikes?

Reconstructing records after a disaster is often essential for tax purposes, receiving federal assistance, and insurance reimbursement.

Taking the time to protect your data will save you a flood of tears when the storm clouds finally clear.

 

 The personal and business records you’ll need in order to prove your loss could be damaged – or even destroyed – in an emergency. You can safeguard your bank statements, tax returns, insurance policies, etc., by creating and frequently updating a backup set of records. This is much easier now that financial institutions provide electronic statements and make most of your financial information available online. Even if you only have paper copies of the original records, you can quickly scan these documents onto your computer.

 

Once all your information has been converted to an electronic format, just transfer it to a backup storage device, such as an external hard drive. Another option is to burn the files to a CD or DVD and create multiple copies. Along with many affordable online backup systems, many websites also offer free online storage with ample space for your electronic records; you can easily restore or access your files and keep them current with no hassle. Whether you do one or all of the above, ALWAYS insure that your data is password protected and kept in a secure location!

 

 For a full list of tips on preparing for a hurricane and other disasters…

 

check-out IR-2011-59.

 

On the Money,

Sufen Wang

Wang Solutions

 

The Affordable Care Act Gets a Check-Up…

IRS Prescribes Premium Tax Credit Regulations

 

There’s some good news and bad news this month. The good news is that the IRS proposed regulations on August 12 for health care premium tax credits – which means affordable healthcare is one step closer to becoming a reality. The bad news is that the IRS proposed regulations for health care premium tax credits – which means you might be ineligible to receive them.

 

The health insurance premium tax credits were created under the Patient Protection and Affordable Care Act (ACA) of 2010. When the ACA goes into effect in 2014, individuals who are unable to access affordable health insurance through their employers will be able to buy insurance through state-run insurance exchanges. The tax credit is geared toward lower and middle-income individuals who can’t afford to pay their premium costs out-of-pocket.

Of course, calculating the credits will be another task for tax return preparers…..

So who exactly can get the tax credit? The IRS regulations say you must be an applicable taxpayer with a household income between 100 percent and 400 percent of the federal poverty line. That’s about $22,350 to $89,400 for a family of four. Applicable also means you can’t be claimed as a dependent by another taxpayer and if you’re married, you have to file a joint return. The tax credits will average $5,000 per individual.

You also won’t be eligible if you have “minimum essential coverage” available through your employer. Under the ACA, businesses with more than 50 full-time workers over the course of a year will face tax penalties of up to $3,000 per employee if they fail to offer affordable coverage (the regulations help define affordable). Employers must report which employees are not covered by insurance and are thus eligible to participate in health insurance exchanges.

The IRS wants to hear what you think about the proposed regulations! Give them a piece of your mind by October 31:

 http://www.regulations.gov/ 

via e-mail at E-OHPSCA2715.EBSA@dol.gov.

On the Money,

Sufen Wang

Wang Solutions