Elder CareTips: Mastering The Eldercare Maze (TM)

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Mastering The Eldercare Maze (TM) to anyone you think might be interested.
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>> Use Your Holiday Break To Dig Up Some Deductions <<

We all *know* that it's almost impossible to deduct medical expenses from our federal taxes because you have to have spent at least 7.5% of your adjusted gross income before you can even start to take a deduction. What many of us don't realize is that there are many expenses that qualify as "medical" that we might not think of right out of the box. As we wind down 2004, it might pay off to look at some things you might have done this year that would qualify -and push you over the top to a legal deduction.

For instance, if you made any changes or improvements to the home where your elder lives to accommodate a medical condition, the costs may well be eductible. $5 here and $10 there for a grab bar or a door handle, or several hundred dollars for a wheelchair ramp are all eligible, and they can all add up to a significant amount.

Here's some information straight from the IRS:

You can include in medical expenses amounts you pay for special equipment installed in a home, or for improvements, if their main purpose is medical care for you, your spouse, or your dependent.

The cost of permanent improvements that increase the value of your
property may be partly included as a medical expense. The cost of the improvement is reduced by the increase in the value of your property. The difference is a medical expense. If the value of your property is not increased by the improvement, the entire cost is included as a medical expense.

Certain improvements made to accommodate a home to your disabled condition, or that of your spouse or your dependents who live with you, do not usually increase the value of the home and the cost can be included in full as medical expenses. These improvements include, but are not limited to, the following items.

* Constructing entrance or exit ramps for your home

* Widening doorways at entrances or exits to your home

* Widening or otherwise modifying hallways and interior doorways

* Installing railings, support bars, or other modifications to bathrooms

* Lowering or modifying kitchen cabinets and equipment

* Moving or modifying electrical outlets and fixtures

* Installing porch lifts and other forms of lifts (but elevators generally add value to the house)

* Modifying fire alarms, smoke detectors, and other warning
systems

* Modifying stairways

* Adding handrails or grab bars anywhere (whether or not in
bathrooms)

* Modifying hardware on doors

* Modifying areas in front of entrance and exit doorways

* Grading the ground to provide access to the residence

Only reasonable costs to accommodate a home to a disabled condition are considered medical care. Additional costs for personal motives, such as for architectural or aesthetic reasons, are not medical expenses.

Don't rely on your tax preparer to ask you about these expenses.

Take the initiative and a little time over the next couple of weeks to
make a list of everything you've spent money on this year. Then, for complete information on how to handle medical expenses - what is and what isn't allowed for 2004 - I recommend that you download and read IRS Publication 502: Medical and Dental Expenses for Use in Preparing 2004 Returns:

http://www.irs.gov/pub/irs-pdf/p502.pdf

You might find that you really did have enough expenses to take a
deduction. In my book, that's *found* money.

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He who deliberates fully before taking a
step will spend his entire life on one leg.

Chinese Proverb

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The Medicare drug card hasn't lived up to expectations for a
lot of people. But, for one group it really is paying off. If your
elder is living on a low income and hasn't signed up yet, he
or she stands to loose $600 in medication credit at the end of
this year.

If your loved one is currently enrolled in Medicare, it's important
that you take the time this month to find out about options.

The Medicare Prescription Drug Card is available to any Medicare
beneficiary who doesn't have prescription drug coverage. However,
it is most helpful to seniors whose income is less than $12,569 for an
individual or $16,862 for a married couple. The open enrollment
period for selecting a Medicare drug card ends December 31, 2004,
so help your senior sign up for a Medicare card now if you haven't
already.

Up to $1200 Credit

In addition to the savings every Medicare beneficiary will get on
prescription costs, low-income seniors may qualify for a credit of
up to $1200 to use towards the cost of their prescription medicines
between now and the end of 2005. And, if they qualify for that
credit, there is no annual enrollment fee for the Medicare card.

In order to get the $600 credit for 2004, you must sign up for
a card before December 31, 2004. Any portion of the $600 credit
that isn't used in 2004 carries over into 2005. Then, in 2005, an
additional $600 is added.

If you miss the December 31 deadline you can still enroll in 2005,
but you will lose the $600 credit for 2004. You must apply in the
first three months of 2005 to receive the full $600 credit for the
year.
If you apply later, your credit will be reduced:

If You Join Between. You Will Receive

January 1 - March 31, 2005 $600 credit
April 1 - June 30, 2005 $450 credit
July 1 - September 30, 2005 $300 credit
October 1 - December 31, 2005 $150 credit

- "Wrap-Around" Programs -

If you qualifiy for the transitional assistance credit, consider
choosing a card program that offers a Medicare Assistance Program, or "MAP" - also known as a "wrap-around" program.

Wrap-around programs offered by the drug manufacturers offer
additional savings once the patient has used all of their available
credit. If an enrolled beneficiary is eligible, he or she is
automatically enrolled in that company's MAP. The patient then pays only a small fee (up to $15 a month per prescription) plus the pharmacy's dispensing
fee.

More than 200 drugs are available through these MAPs, including some
of the drugs most commonly prescribed to seniors

For more information about MAPs, including a list of the discount
cards participating, a list of drugs available, and eligibility
criteria,
visit www.cms.hhs.gov/medicarereform/drugcard/mfragreements.asp

How to Enroll

To enroll in a Medicare-Approved Drug Discount Card, call
1-800-MEDICARE (1-800-633-4227) or visit
http://www.medicare.gov

When you call, have the following information ready:

1. Your Zip code

2. Your medicines and doses

3. The name of the manufacturer of your prescription

4. The name of your preferred pharmacy, and

5. Your total monthly income (if you are interested in the
$600 credit and wrap-around savings programs)

For More Information

The Medicare website http://www.medicare.gov, has information
on the Medicare-approved discount cards, including tools that you
can use to locate the one best suited to you or your loved one.

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By the time a man realizes that his father was usually right,
he has a son who thinks he's usually wrong.

--Anonymous

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If you're still looking for a gift for someone who has just
about everything he *needs,* and who may not have the
attention span or the physical abilities he once had, a book
you can read together - or that you can read aloud - may be
just the ticket.

Although it's been around for a while, I just discovered
A Caregiver's Book of More Read-Aloud Stories for the
Elderly. I bought a copy to take along when I visit with
some of my clients. They often have trouble managing an
open-ended conversation, and they do get so very tired of
answering questions. This book gives us something entertaining
to do, and the stories are a perfect bridge to reminiscence
about the past.

These very short stories aren't written for children, and they
don't *talk down* to the reader/listener in any way. They are
quite a bit deeper and more intelligent than anything else I
have come across for older people. Frankly, I have enjoyed
reading it, and my 24-year-old son picked it up one evening
and read it straight through.

You still have time to order a copy before Christmas, though
you'd better move quickly if you want it before the 25th. You'll
find it at

http://service.bfast.com/bfast/click?bfmid=2181&sourceid=
41175206&bfpid=091478370X&bfmtype=book

Highlight this address and paste it in your browser if it has wrapped and lost its link. I've also included it in the Library at http://www.eldercareteam.com/resources/booksandmore.htm

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Don't keep us a secret. If you know other people who should be reading this too, then do them and us a favor by telling them about Elder CareTips: Mastering The Eldercare Maze (TM). Just send them to this link:
http://eldercareteam.com/resources/newsletter.htm

We have an ever-growing collection of articles on the subject of
caring for older adults. Some have appeared in this newsletter,
some haven't. Browse around as much as you'd like at
http://www.eldercareteam.com/resources/articles/index.htm

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Christmas--that magic blanket that wraps itself about us, that something so intangible that it is like a fragrance. It may weave a spell of nostalgia. Christmas may be a day of feasting, or of prayer, but always it will be a day of remembrance--a day inwhich we think of everything we have ever loved.

-- Augusta E. Rundell --

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A safe, warm and happy Christmas to each and every one of you. See you next year...

Molly

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Molly Shomer
Head Coach
The Eldercare Team
http://www.eldercareteam.com
mshomer@eldercareteam.com
Box 700291
Dallas, TX 75370
(972) 395-7823

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© 2004 Molly Shomer, All rights reserved. You are free to use material from Elder CareTips: Mastering The Eldercare Maze (TM) as long as you include complete attribution, including live web site link and email link. I would appreciate it if you would let me know where the material will appear.