If you, your spouse or dependents had significant medical or dental costs in 2011, you may be able to deduct those expenses when you file your tax return. Here are eight things the IRS wants you to know about medical and dental expenses and other benefits.

1. You must itemize You deduct qualifying medical and dental expenses if you itemize on Form 1040, Schedule A.

2. Deduction is limited You can deduct total medical care expenses that exceed 7.5 percent of your adjusted gross income for the year. You figure this on Form 1040, Schedule A.

3. Expenses must have been paid in 2011 You can include the medical and dental expenses you paid during the year, regardless of when the services were provided. You’ll need to have good receipts or records to substantiate your expenses.

4. You can’t deduct reimbursed expenses Your total medical expenses for the year must be reduced by any reimbursement. Normally, it makes no difference if you receive the reimbursement or if it is paid directly to the doctor or hospital.

5. Whose expenses qualify You may include qualified medical expenses you pay for yourself, your spouse and your dependents. Some exceptions and special rules apply to divorced or separated parents, taxpayers with a multiple support agreement or those with a qualifying relative who is not your child.

6. Types of expenses that qualify You can deduct expenses primarily paid for the diagnosis, cure, mitigation, treatment or prevention of disease, or treatment affecting any structure or function of the body. For drugs, you can only deduct prescription medication and insulin. You can also include premiums for medical, dental and some long-term care insurance in your expenses. Starting in 2011, you can also include lactation supplies.

7. Transportation costs may qualify You may deduct transportation costs primarily for and essential to medical care that qualify as medical expenses. You can deduct the actual fare for a taxi, bus, train, plane or ambulance as well as tolls and parking fees. If you use your car for medical transportation, you can deduct actual out-of-pocket expenses such as gas and oil, or you can deduct the standard mileage rate for medical expenses, which is 19 cents per mile for 2011.

8. Tax-favored saving for medical expenses Distributions from Health Savings Accounts and withdrawals from Flexible Spending Arrangements may be tax free if used to pay qualified medical expenses including prescription medication and insulin.

For additional information, see Publication 502, Medical and Dental Expenses or Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans, available at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).

The Cedar Bird Feeder

This place is for the birds—literally. The Cedar Bird Feeder, located at 190 N. Main St. in Cedar Springs, inside the Look Insurance building, opened February 1. Owned by Roger and Linda Bulley, the Cedar Bird Feeder provides seed and feed for birds, and unique feeders and birdhouses, which they build themselves. They offer a wide variety of fresh bird feed, in a variety of price ranges. And they don’t plan to stop at birdhouses and feeders. Coming soon will also be unique cat furniture and doghouses! So make your birds happy! Stop in and check them out today.

Hours are Tuesday through Saturday, 10 a.m. to 6 p.m. For more info call (616) 308-4542.

by Tawra Kellam


Frugal living is all about making the most with what you already have. Here are 11 tips from LivingOnADime.com to help you get started:



1. Barter for services when possible. For example, we exchanged lawn mower repair from our neighbor for a table (garage sale find) that he was looking for.


2. Learn to fix things for yourself. These days, with the Internet making information so easily available, you can fix most things yourself. We do 95 percent of the repairs around our house and we aren’t that handy. We just keep looking for the information about how to do it and keep working until we get it fixed.


3. Stop eating out. I know you hear it all the time but STOP! The average family spends $300-$500 a month just eating out! Eating out truly is one of the biggest causes of debt! I am always amazed how someone can be “totally broke” and can’t pay their bills but are still able to go to the drive-thru of their favorite restaurant.

4. Study nutrition information and find out what you need to eat to have a healthy and balanced diet. Then stop eating the junk and eat healthy inexpensive meals at home. We have a lot of menu ideas here at LivingOnADime.com that can help you get started.

5. Figure out a way to live without it. If something breaks and you don’t have the money to fix it or if you are out of something and you don’t have the money to buy more, figure out a way to live without it. If the lawn mower breaks, can you borrow a friend’s lawn mower? If your washer breaks, go to the laundromat. If you break your tea kettle, use a saucepan to heat water. In most instances, you can find a way to make do or do without something until you have the cash saved up.


6. Do things for free. Go to the library, have a picnic or read a book. Kids are just as happy playing with mom and dad in the backyard as they are going to the zoo. If you can’t pay cash for the “fun stuff” you can always have fun at home.



7. Buy items used. We buy 90 percent of the items for ourselves used. Going to yard sales and thrift stores does not take any longer than going to a retail store but you can save 90 percent off the retail price!



8. Just say no…to your kids. Let kids buy their own toys and extras! Our kids pay for all their own soda, candy, treats like nail polish, their own computers and extras. You are not the Bank of Mom so just say no!



9. Find a cheaper way to do things. Go to a beauty school to get your hair colored (or don’t have your hair colored at all it isn’t something you need to survive). Go to a mechanic school to get your car fixed. Hire a kid instead of a lawn service to mow your yard (only if you can’t do it yourself for medical reasons). Paint your own house instead of hiring someone, cut the cable and the cell phone (gasp!), and have birthday parties at your house. There is almost always a cheaper way to do things so try to find the cheapest way and save some money!



10. Cut kids’ activities. Most kids are in way too many activities and they’re often expensive. I know families who pay $175 a month for gymnastics lessons but can’t pay the mortgage. There is a problem with this kind of thinking! Kids won’t die if you don’t give them all the lessons and activities you can’t afford.


11. Get it for free. When the landscapers were laying sod in our new neighborhood, I asked for the scraps and we were almost able to put in our entire backyard for free. When they were building houses, I asked for the 2×4′s that were going into the dumpster and got enough wood for our shed. When they were pouring concrete patios, I asked for the leftover concrete and they just poured our entire cement pad for our shed for free!! If friends have kids older than your kids, ask if you can have their hand me downs when they are done.
Get as much as you can for free and you can save thousands of dollars!

Article courtesy of www.LivingOnADime.com.

Making the 0pportunity work for you

 By Brent O’Bryan, SPHR

Whether you have a job and are looking to make a change or are currently unemployed, job fairs can be a great way to meet with recruiters. But, they can also be quite intimidating to the uninitiated. With some job fairs attracting thousands of applicants, it’s important to arm yourself with a plan of action before you arrive. Think of attending a job fair as you would a visit to Disney World^®. Do you want to spend valuable time waiting in a line to get on a random ride you may or may not like, or do you want to do some advance research, get a “FASTPASS,” and spend time enjoying the park? You will get the most out of a job fair when you put in the time to make it work for you.

By reviewing the following tips and techniques for job fair navigation, you’ll be prepared for a successful experience before, during and after a job fair.

The Good

Knowledge is Power Smart candidates take the time to thoroughly research the job fairs they attend. They find out what companies will be on the premises and decide which companies are of interest to them. They then read as much as they can about their favorite companies. When they arrive at the job fair, they have a short list of companies they want to make a personal connection with. A recruiter who is meeting with dozens of people in one day is much more likely to remember the applicant who took the time to read the book from that company’s CEO, for example, or who had carefully reviewed the company’s job postings and website to see where they could offer the most value.

Demonstrate Aptitude To paraphrase President John F. Kennedy, fellow job fair applicants, “should ask not what your ‘company’ can do for you, ask what you can do for your ‘company.’” Savvy job fair attendees focus on how their experience benefits the company and offer tangible insight on how the skills they have garnered translate to on-the-job benefits for the employer.

Presentation Counts If you are going to a job fair, you want to stand out from the crowd in a positive, professional manner. What does that mean? Even if you are applying for a position that will likely require a uniform or carpenter pants, wear a freshly pressed suit and comfortable yet professional shoes, and make sure that hair and nails are freshly groomed. Savvy recruiters look for long term potential. Can this maintenance worker become a supervisor? Can this receptionist become an account coordinator? Dress for the position you would ultimately like to have.

Manners Matter Successful job fair applicants are generally conservative when interacting with hiring personnel. Never assume that Mr. Fred Johnson wants to be called Fred. Reference him as “Mr. Johnson” until he says otherwise.

Link Up for Best Results Not all social media is created equal, but LinkedIn, which was created for the business community, is an ideal online network for job hunters. Many companies are using LinkedIn to research and find candidates.  LinkedIn helps companies leverage the networks of their employees as well. Many successful job fair applicants connect with their recruiters on LinkedIn after their initial meeting.

Traditional Paper Resume Still Rules – Sure, flash drives are cool and can hold a lot of information, but most recruiters are still pretty old-fashioned and would prefer an old fashioned paper resume that they can read on the spot. Successful job fair applicants should bring plenty of one-page, concise and informative resumes with them in a neat briefcase or portfolio.

The Bad

 How Much Does this Job Pay? Asking about salary and benefit immediately is a turn-off to recruiters. Think of a job fair as a way to market yourself to employers to get an interview. Few recruiters will want to move forward with an applicant whose initial questions revolve around salary, benefits and vacation and personal day allotment.

Failure to Differentiate An applicant who arrives at the job fair with no advance information on what companies will be on-site and who they want to impress, runs the risk of waiting in endless lines to talk to recruiters at companies that aren’t the right fit. By failing to do advance research, time is wasted for both the applicant and the recruiter.

Resume Has Typos It is important to proofread a resume for typos and misspellings that undermine an applicant’s ability to get interviews and secure a job. The resume should be an error-free showcase of your experience, skills and capabilities.

Twittering Away to Irrelevance Job hunters who are social media aficionados run the risk of information overload. While a professional, updated LinkedIn profile is always a plus to human resource professionals, a Facebook page “gone wild” with postings about raucous nights at the casino or a Twitter account detailing compromising personal information, can be a liability.

The Ugly

Gum Chewing While it seems incredulous than anyone would chew gum and talk to a recruiter simultaneously, it happens more than I’d like to admit. Sometimes, the gum-chewing applicant is a cigarette smoker who is trying to cover their tracks. Whatever the reason, there is no place for gum chewing on the job search circuit! Likewise, munching on chips or engaging in any other manner of food consumption in front of a recruiter is strictly off-limits.

Hygiene Matters Meeting with recruiters is not the time to forget to brush your teeth, take a shower, or groom your nails. Being remembered due to body odor or bad breath is not a ticket to employment satisfaction.

Employment Stalker At every job fair, there are applicants who fail to recognize the social cues that their interview is over. They linger at the booth, or return to the recruiter again and again during the fair. Or they send daily emails to the recruiter asking for progress reports. While appropriate follow up is important, harassment will not land you your dream job.

Job fairs sometimes offer workshops on any variety of topics related to employment. Take the time to attend these free events to bone up on skills and information. Be sure to judiciously follow up with the recruiters you’ve made a good connection with at the job fair. Assemble the business cards you amassed from human resource professionals and fellow attendees and link up to them on LinkedIn. Recruiters appreciate receiving a follow up thank you email which signals your interest in contributing to the organization. Just as recruiters have to keep track of multiple applicants, applicants need to develop their own system for logging information on all potential job leads.

Before you file your 2011 federal income tax return in 2012, you should be aware of a few important tax changes that took effect in 2011. Check www.IRS.gov before you file for updates on any new legislation that may affect your tax return.

Due date of return. File your federal tax return by April 17, 2012. The due date is April 17, instead of April 15, because April 15 is a Sunday and April 16 is the Emancipation Day holiday in the District of Columbia.

New forms. In most cases, you must report your capital gains and losses on the new Form 8949, Sales and Other Dispositions of Capital Assets. Then, you report certain totals from that form on Schedule D (Form 1040). If you had foreign financial assets in 2011, you may have to file the new Form 8938, Statement of Foreign Financial Assets, with your return.

Standard mileage rates. The 2011 rates for mileage are different for January 1 through June 30 than for July 1 through December 31. For business use of your car, you can deduct 51 cents a mile for miles driven the first half of the year and 55 ½ cents for the second half. Medical and moving mileage are both 19 cents per mile for the early half of the year and 23 ½ cents in the latter half.

Standard deduction and exemptions increased.

The standard deduction increased for some taxpayers who do not itemize deductions on IRS Schedule A (Form 1040). The amount depends on your filing status. The amount you can deduct for each exemption has increased $50 to $3,700 for 2011.

Self-employed health insurance deduction. This deduction is no longer allowed on Schedule SE (Form 1040), but you can still take it on Form 1040, line 29.

Alternative minimum tax (AMT) exemption amount increased. The AMT exemption amount has increased to $48,450 ($74,450 if married filing jointly or a qualifying widow(er); $37,225 if married filing separately).

Health savings accounts (HSAs) and Archer MSAs. The additional tax on distributions from HSAs and Archer MSAs not used for qualified medical expenses increased to 20 percent. Beginning in 2011, only prescribed drugs or insulin are qualified medical expenses.

Roth IRAs. If you converted or rolled over an amount from a traditional IRA to a Roth IRA or designated Roth in 2010 and did not elect to report the taxable amount on your 2010 return, you generally must report half of it on your 2011 return and the rest on your 2012 return.

Alternative motor vehicle credit. You can claim the alternative motor vehicle credit for a 2011 purchase only if the vehicle is a new fuel cell motor vehicle.

First-time homebuyer credit. The credit expired for most taxpayers for 2011. Some military personnel and members of the intelligence community can still claim the credit in 2011 for qualified purchases.

Health coverage tax credit.Recent legislation changed the amount of this credit, which pays qualified health insurance premiums for eligible individuals and their families. Participants who received the 65 percent tax credit in any month from March to December 2011 may claim an additional 7.5 percent retroactive credit when they file their 2011 tax return.

Mailing a return. The IRS changed the filing location for several areas. If you’re mailing a paper return, see the Form 1040 instructions for the correct address. Detailed information on these changes can be found on the IRS website – www.irs.gov.

The IRS has a new form taxpayers must use to report most capital gains and losses from transactions relating to investment property. In previous years, these transactions would have been reported on your IRS Schedule D or D-1, but for tax year 2011, use Form 8949, Sales and Other Dispositions of Capital Assets.

Here are eight important points about the new Form 8949 and IRS Schedule D, Capital Gains and Losses:

1. Short-term capital gains or losses (assets held for one year or less) are now reported on Part I of Form 8949.

2. Long-term capital gains or losses (assets held for more than one year) are now reported on Part II of Form 8949.

3. Fill out Form 8949 before you fill out line 1, 2, 3, 8, 9 or 10 of Schedule D.

4. Most property you own and use for personal purposes, pleasure or investment is a capital asset. Use Form 8949 to report the sale or exchange of a capital asset you are not reporting on another form or schedule (such as Form 6252 or 8824).

5. At the top of each Form 8949 you file, you’ll need to check box A, B or C, based on what is indicated in box 3 of the Form 1099-B or substitute statement.

Check box A if your broker reported the transaction to you and the basis of the securities sold also was reported to the IRS

Check box B if the transaction was reported to you but box 3 of the Form 1099-B is blank or your statement says the basis was not reported to the IRS.

Check box C for all other transactions.

6. If you have a lot of transactions, use as many Forms 8949 as necessary to report all of them, but make sure that each Form 8949 includes only the type of transactions described in the text for the box you checked (A, B or C).

7. The reporting of certain transactions has changed. If you have to adjust your gain or loss, you may have to enter a code in column (b) and an adjustment in column (g). For details, see the 2011 Instructions for Schedule D (and Form 8949).

8. For 2011 transactions, Schedule D-1 is no longer in use. Form 8949 replaces it.

If you changed your name after a recent marriage or divorce, the IRS reminds you to take the necessary steps to ensure the name on your tax return matches the name registered with the Social Security Administration. A mismatch between the name shown on your tax return and the SSA records can cause problems in the processing of your return and may even delay your refund.

Here are five tips from the IRS for recently married or divorced taxpayers who have a name change.

1. f you took your spouse’s last name, or if you hyphenated your last names, you may run into complications if you don’t notify the SSA. When newlyweds file a tax return using their new last names, IRS computers can’t match the new name with their Social Security number.

2. If you recently divorced and changed back to your previous last name, you’ll also need to notify the SSA of this name change.

3. Informing the SSA of a name change is easy. Simply file a Form SS-5, Application for a Social Security Card, at your local SSA office or by mail and provide a recently issued document as proof of your legal name change.

4. Form SS-5 is available on SSA’s website at www.socialsecurity.gov by calling 800-772-1213 or at local offices. Your new card will have the same number as your previous card, but will show your new name.

5. If you adopted your spouse’s children after getting married and their names changed, you’ll need to update their names with SSA too. For adopted children without SSNs, the parents can apply for an Adoption Taxpayer Identification Number – or ATIN – by filing Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions with the IRS. The ATIN is a temporary number used in place of an SSN on the tax return. Form W-7A is available on the IRS.gov website or by calling 800-TAX-FORM (800-829-3676).

Although most income you receive is taxable and must be reported on your federal income tax return, there are some instances when income may not be taxable.

The IRS offers the following list of items that do not have to be included as taxable income:

*Adoption expense reimbursements for qualifying expenses

*Child support payments

*Gifts, bequests and inheritances

*Workers’ compensation benefits (some exceptions may apply; see Publication 525, Taxable and Nontaxable Income)

*Meals and lodging for the convenience of your employer

*Compensatory damages awarded for physical injury or physical sickness

*Welfare benefits

*Cash rebates from a dealer or manufacturer

Some income may be taxable under certain circumstances, but not taxable in other situations. Examples of items that may or may not be included in your taxable income are:

Life insurance If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. Life insurance proceeds, which were paid to you because of the insured person’s death, are generally not taxable unless the policy was turned over to you for a price.

Scholarship or fellowship grant If you are a candidate for a degree, you can exclude from income amounts you receive as a qualified scholarship or fellowship. Amounts used for room and board do not qualify for the exclusion.

Non-cash income Taxable income may be in a form other than cash. One example of this is bartering, which is an exchange of property or services. The fair market value of goods and services exchanged is fully taxable and must be included as income on Form 1040 of both parties.

All other items—including income such as wages, salaries, tips and unemployment compensation—are fully taxable and must be included in your income unless it is specifically excluded by law.

These examples are not all-inclusive. For more information, see Publication 525, Taxable and Nontaxable Income, which can be obtained at the IRS.gov website or by calling the IRS at 800-TAX-FORM (800-829-3676).

The Internal Revenue Service and community partners nationwide have launched their annual outreach campaign aimed at helping millions of Americans who earned $49,078 or less take advantage of the Earned Income Tax Credit (EITC).

The outreach campaign is necessary because one-third of the eligible population changes annually as their financial, marital and parental statuses change. Although an estimated four out of five eligible workers and families get the credit, one in five still miss out on it, either because they don’t claim it, or don’t file a return at all.

“The EITC provides a financial boost for millions of hard-working Americans. But people can easily overlook this important credit, especially if their financial situation has changed. The IRS reminds taxpayers to look into this valuable credit to see if they qualify,” said IRS Commissioner Doug Shulman.

The EITC varies by income, family size and filing status. People can see if they qualify by visiting IRS.gov and answering a few questions using the EITC Assistant. In tax year 2010, almost 26.8 million eligible workers and families received over $59.5 billion total in EITC. The average EITC amount last year was around $2,200.

Workers who earned $49,078 or less from wages, self-employment or farm income last year could receive larger refunds if they qualify for the EITC. That could mean up to $464 in EITC for people without children, and a maximum credit of up to $5,751 for those with three or more qualifying children. Unlike most deductions and credits, the EITC is refundable. In other words, eligible people may get a refund from the IRS even if they owe no tax.

How to Claim the EITC

To get the EITC, workers must file a tax return, even if they are not required to file, and specifically claim the credit. Those eligible for the EITC have free options to file a tax return to claim the credit:

Free File on IRS.gov: Free brand-name tax software walks people through a question and answer format to help them prepare their returns and claim every credit and deduction for which they are eligible. The program also allows people to file electronically for free, giving them access to all their money often in as little as ten days.

Free tax preparation sites: EITC-eligible workers can seek free tax preparation at more than 12,000 Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) sites. To locate the nearest VITA site, people can call the IRS at 800-906-9887. Taxpayers can also find VITA/TCE sites by calling their community’s 211 or 311 line for local services.

IRS Taxpayer Assistance Centers: EITC-eligible workers can seek free assistance in IRS locations across the country. Locations are listed online at www.IRS.gov. Hours and services offered vary by location and should be checked before visiting.

More information on EITC and detailed eligibility rules are available at www.irs.gov/eitc.

Determining your filing status is one of the first steps to filing your federal income tax return. There are five filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household and Qualifying Widow(er) with Dependent Child. Your filing status is used to determine your filing requirements, standard deduction, eligibility for certain credits and deductions, and your correct tax.Some people may qualify for more than one filing status. Here are eight facts about filing status that the IRS wants you to know so you can choose the best option for your situation.
1. Your marital status on the last day of the year determines your marital status for the entire year.
2. If more than one filing status applies to you, choose the one that gives you the lowest tax obligation.
3. Single filing status generally applies to anyone who is unmarried, divorced or legally separated according to state law.
4. A married couple may file a joint return together. The couple’s filing status would be Married Filing Jointly.
5. If your spouse died during the year and you did not remarry during 2011, usually you may still file a joint return with that spouse for the year of death.
6. A married couple may elect to file their returns separately. Each person’s filing status would generally be Married Filing Separately.
7. Head of Household generally applies to taxpayers who are unmarried. You must also have paid more than half the cost of maintaining a home for you and a qualifying person to qualify for this filing status.
8. You may be able to choose Qualifying Widow(er) with Dependent Child as your filing status if your spouse died during 2009 or 2010, you have a dependent child, have not remarried and you meet certain other conditions.
There’s much more information about determining your filing status in IRS Publication 501, Exemptions, Standard Deduction, and Filing Information. Publication 501 is available at www.irs.gov or by calling 800-TAX-FORM (800-829-3676). You can also use the Interactive Tax Assistant on the IRS website to determine your filing status. The ITA tool is a tax law resource on the IRS website that takes you through a series of questions and provides you with responses to tax law questions.