When I dashed off my initial thoughts last Monday about the IRS scandal, I didn’t realize that this story would have the “legs” it has proven to have.

There are too many sub-plots and twists for even the most plugged-in of watchers (or sharp-eyed Terre Haute IN tax professionals) to keep track.

But ultimately, I agree with what the publisher of the highly-respected, non-profit (IRS-approved since 1970!) “Tax Notes”, Christopher Bergin, said in his pre-publication commentary:

So, as we move towards a revenue-collection system in our country that seems to be getting much more work on its plate, with a smaller budget, and filled with very human people, it’s even more essential that you have a Terre Haute IN tax office sherpa at your side who can help you fight your IRS battles, and ensure that things go as smoothly as they should (as they sometimes do, believe it or not!).

Not sure if you can think of anyone for that role? Well here’s a number for somebody who’s pretty good at it: (812) 478-2800

Well, we go from the ridiculous to the sublime sometimes here in the Stadler Real World, and this week proves the case. As we head into the summer marriage season, I thought it appropriate to pen (or type, as it were) my thoughts related to how finances can impact a marriage.

After all, financial peace may be one of the best gifts I could give someone…

Stadler’s Rules For a Financially-Happy Marriage (Part 1 of 2)
An overwhelming number of failed marriages cite financial troubles as a major factor in their breakup. As sad as this is, it really shouldn’t be too much of a surprise, because the way we use our time and money reflects our values.

And, of course, without a strong set of shared values, marriages drift apart — even here in the Terre Haute IN area! But dealing with finances together can bring a couple closer. After working with married couples for so long, I thought I should share seven principles I’ve seen for how you can build wealth and your marriage. (1-4 this week, and 5-7 next.)

Start young.
June is the most common month for weddings, and there’s no better time to establish the rules of a relationship than at the beginning. And every seven years you delay starting a savings plan cuts in half your ultimate net worth in retirement. Chances are you know someone who’s getting married this coming month, so forward them this post … it may well be more valuable than the check you write.

Work as a team on the budget.
Shared activities help you build and integrate your values and keep your finances in sync with the rest of your life. Couples that share church activities or philanthropic causes typically do better financially, because their common vision allows them to work together, instead of pulling in different directions. They do well, while doing good.

The more opportunities to forge shared values, the better the marriage team. Even the simple process of creating and adjusting a family budget provides a forum for discussion of what is really important to the family.

A budget gives you more freedom, not less.
Couples without a budget can, and often do, fight about every dollar spent. Every purchase is an opportunity for values and priorities to clash. But couples who have worked together on a budget are already in agreement on the big picture. Once the difficult decisions are made about what will help further the family’s values, the specific purchases in each category are much less critical.

Couples with a budget do not get concerned about spending until a category goes over the budgeted amount. Having decided how much money the family can afford to spend on clothes for him and for her, it doesn’t matter as much if he prefers lots of inexpensive clothes and she prefers a few nice pieces, or vice versa. A budget allows discretion and freedom to prevail, with cooperation and teamwork.

Always pay yourself first.
The best way to achieve your financial goals is by moderating your spending and staying on track with your savings needs. Only after you have saved several times your annual salary does the rate of appreciation become more important than the rate of savings.

To pay yourself first, set up an automatic monthly transfer from your checking account to an investment account where your contribution is automatically invested in a diversified portfolio. Even a small amount makes a big difference. Just five hundred dollars a month (that’s just $6,000 a year) at 11.5% annual interest would compound to a million dollars by the middle of the 26th year. Money makes money. And the money that money makes, makes even more money.

(To be continued next week …)

I do hope that if one Terre Haute (or otherwise) marriage is served and preserved because of these ideas, that they will be passed along.

And I’m always grateful for our friendship, and for your referrals!

Warmly,

Andrew Stadler
(812) 478-2800

Many of my tax clients and friends here in the Terre Haute IN area are reaching a stage in life when healthcare decisions become more and more important.

And it’s our business to not only provide counsel and hands-on service to Terre Haute IN families and businesses as it relates to setting up the best way to make tax-related decisions with your assets, but also to give some counsel on navigating the murky waters of other government programs.

Medicare and Social Security fall under this rubric, and I’d like to delve into the fun little world of healthcare funding, which is poised to become even more complex.

This isn’t to yet touch on the wonderful world of Obamacare, and how that is changing things (about which I’ll have more to say in future installments). No, this is stuff I’ve pulled together about programs currently on the books, and how they are not always as simple as they seem…

Terre Haute IN Tax Expert Guides You Through The New World of Medicare Decisions
As Americans approach age 65, they must begin making complex health insurance decisions related to the government-run Medicare program. Like food choices on a cafeteria line, there are hundreds of ways to assemble your own plate. As you begin this journey, the first big decision is whether to enroll in Original Medicare or one of the newer Medicare Advantage programs.

Medicare Advantage, also known as Part C for its place in the ABCDs of Medicare, was birthed in the Balanced Budget Act of 1997. It was created to offer much needed private competition to the government-run health program whose costs are ballooning out of control.

Public health officials assemble a package of necessary features and benefits, and private health insurers compete on price, service, and additional perks. Seniors can call their Social Security office or go to www.medicare.gov to view all of the Medicare plans offered in their area.

Like many employer-sponsored health insurance plans, Medicare Advantage plans are set up as health maintenance organizations (HMOs) or preferred provider organizations (PPOs). HMOs and PPOs are managed care plans that contract with a set of doctors, hospitals, and other health care providers to manage the costs. For example, an in-network doctor agrees to perform open heart surgery for a predetermined price.

All plans cover emergency care when traveling in the United States, but outside of your network. Most plans also offer international emergency care benefits, but make sure you confirm the details before you book your next cruise. Uninsured traveling can be costly.

Medicare Ratings System
To assist consumers, Medicare now rates Medicare Advantage programs using a star system. Using member satisfaction surveys and plan evaluations, plans are rated between one and five stars. In fact, at any time, you can switch into a five-star Medicare Advantage plan, but only if one is available in your region (only a few states have a five-star plan). Even if your area does not offer a top-rated plan, every state offers at least a four-star plan.

Advantages of Medicare Advantage
Many seniors choose a Medicare Advantage program because it can lower health costs. If you are willing to stay in network, a Medicare Advantage program is likely to have lower costs than the Original Medicare program that has no network restrictions. For this reason, it is important to check with your preferred doctors and specialists to confirm that they are part of the network before joining.

Medicare Advantage also offers greater simplicity. Those who use Original Medicare must purchase a private drug plan (Part D), and they typically buy a supplemental plan (Medigap) to limit costs. This assortment of plans requires carrying around three insurance cards that all have different copayments and deductibles. Medicare Advantage offers one comprehensive plan with one insurance card.

Unfortunately, the only way to really know if Medicare Advantage is right for you is to get an in-depth evaluation. You can pursue this personally by using the cost calculator tool available at www.medicare.gov. This helpful tool will produce a customized report listing your expected total costs for each plan after you enter all of your drug information.

If you do not feel comfortable using the online tool, you can seek advice from an independent advisor who is knowledgeable about the hundreds of Medicare cafeteria line options. Keep in mind that most Medicare insurance advisors are paid more to sell you more expensive policies.

Some of these plans are NOT “advantageous”, so I suggest that you get the help of someone who can inform your decision. Let me know if you’d like advice on that front.

Andrew Stadler
(812) 478-2800

I don’t know about you, but I get pretty excited about the spring around here in Terre Haute IN. When the cold is gone, and the trees don’t seem so desolate … and am I right that the angle of the sun is a bit less harsh?

Or maybe it’s just because tax season has finished and I’m getting more sleep?

Well, I hope you and your family will have some “spring” this year — in the more figurative sense; whether or not it’s in the next couple of months. The winter always seems longer than it really is (even when it really *is* long!), but I’m also reminded of how necessary it is.

You see, like the lifecycle of an economy, I still believe that it’s a *good* thing to experience a time of dormancy. Speaking biologically, plants and flowers often need that time of “being withdrawn” to survive the “facts on the ground” (really cold temps!).

They’re a classic picture of a healthy cycle — pull back a little when it’s harsh, but look for the warmer temps and be ready to bloom.

I don’t know all the details of your personal situation. But I do know that you and I have a choice about how we’re going to weather our different financial seasons. Keep acting like it’s summer (when it’s really winter out there), and you’ll wither, and suffer for it.

But the opposite is also true — keep staying “shut down” and dormant when the weather is turning up … and, well, you’ll miss your chance to really grow up and blossom.

Fine — I’m a Terre Haute IN tax pro, not a poet, but you get the point. Don’t be afraid to step out again, just because it’s been cold for awhile out there.

And yes, there IS some good news in our economy out there (consumer spending, GDP, to name a few). And speaking of delivering good (or bad) news, this week I thought I would take up the topic of how you and your partner can get on the same page when it comes to finances. I think you’ll enjoy, and as always–send me your feedback!

Financial Conversation Starter from Your Terre Haute IN Tax Preparation Office
Do you get a knot in your gut when your spouse asks you how the finances are looking? Do you practice a policy of “Don’t ask, Don’t tell”?

One of the best tools I’ve seen to keep your spouse or partner in the loop about your finances is the simple concept of the monthly report. If you find it useful, and once you’ve established the format, you can also do it twice a month to take a look at how you’re meeting your goals.

Why You Should Do This
While there are many benefits to the monthly report that are outside the scope of this discussion, some of the major ones that apply to most families are:

* You keep each other accountable. Neither one of you can step too far outside the artificial boundaries you set up for yourselves (budgets, investments, etc.), because you know that you have to answer to the other every 15 or 30 days. This helps you avoid making major financial mistakes.

* Awareness of your financial situation. Each one of you is fully aware of your current financial situation at all times, including your account balances and other major metrics.

* An opportunity to discuss goals and progress. Your meetings to review and discuss the report give you the opportunity to talk about your major financial goals, how you’re progressing toward meeting those goals, challenges that lie ahead, and potential changes you might have to make in your financial management to meet those goals.

* You can celebrate successes. Seeing your progress on paper allows you to look back and celebrate how far you’ve come, and encourages you to know you’re moving in the right direction.

What Should You Include?
The great thing about setting up a template like this, is that you’ll likely not change it very much at all after the first month or two. I would include the following:
* The Date (and whether the report is a mid-month check-in or an end-of-month summary).
* Money In: All income and transfers into your accounts.
* Money Out: All expenses and transfers out, categorized by bills, other expenses, investments/savings, and loans. I also recommend breaking down the biggest expenses within each of these major categories.
* In Minus Out: Cash flow for the month, and the plan for the resulting shortfall or surplus.
* Net Worth: A quick overview of all assets and liabilities to determine your month-to-month net worth.
* Credit Score: Update of your credit score from a monitoring service, and a comparison to last month’s score.
* Goal Monitoring: If you set up any special savings or financial goals at the beginning of the year, this is the place where you track them and keep each other accountable.
* Notes: This is where you can explain any unusual activity, or make notes on upcoming expenses or issues. This is also where you can make notes as to important milestones and successes you’ve made, particularly when year-to-year comparisons are important to make.

In particular when one partner is primarily in charge of handling the finances, this kind of reporting can make a huge difference in your peace of mind — and your relationship!

Mint.com can make this extremely efficient, as can other free softwares on the market.

The most important thing I want to communicate? Have that open conversation. And if you need a referee, let me know — I’m always glad to be a neutral sounding board.

And I’m always grateful for our friendship, and for your referrals!

Andrew Stadler
(812) 478-2800

PS — For those of our clients who have previous years’ tax returns at another preparer, OR for their friends…
+++++++++++++++++
“No Charge” Return Review
Special Gift Certificate
As a complimentary service this year, we will provide a Return Review To Any Non-Client.
We will also review prior year returns from clients who did NOT have us handle their taxes during the year under question. No charge will be made, unless we have to file an amended return. Email our office or call (812) 478-2800 to set up this complimentary service!
Deadline May 10th
+++++++++++++++++

What a terrible week we suffered through as a nation last week. I’m still trying to process all of it, honestly, here in my Terre Haute IN tax office.

Life does continue, however, and as such we’re starting to catch our breath around here, after a busier-than-normal tax season. Lots of our Terre Haute IN clients are on extension (an unfortunate consequence of longer-than-normal IRS delays this year from the last-minute tax deal), so we’ll continue to be around and advising our families and business owners on the best ways to continue their tax minimization strategies.

On that note, I have to point out: last Thursday (the 18th) was our “Tax Freedom Day” – that’s the date pegged as the date when you’ve finally worked enough days to pay off your taxes. The rest of the year is your “take home” pay.

The date varies year to year (this year it is five days later than last), and more information is here: http://www.taxfoundation.org/taxfreedomday/.

(And for some states, the date is even later. Here’s the state-by-state breakdown: http://taxfoundation.org/article/map-tax-freedom-day-state-2013 )

The calculating organization is the Tax Foundation, a non-partisan educational organization dedicated to informing US — the taxpayers — about the burdens of our tax liabilities, and according to the Foundation, here’s a fun little fact: Americans paid more taxes in 2012 than they did on food, clothing and shelter combined.

Which, of course, is why I and my Team Stadler staff are here: keeping your tax bill as low as legally and ethically possible.

But we also deal with lots of questions this time of year related to a variety of “post-preparation” issues, so I thought I’d address many of them in one swell foop. Which is not at all to say that we won’t answer YOUR questions. Here’s our number: (812) 478-2800

On to the questions…

What To Do When The Taxes Are Done, Per Your Favorite Terre Haute IN Tax Office
It’s a familiar feeling.

Relief. Exhilaration (or frustration at having to pay *more* taxes!). Gratitude for a job well done by your preparer.

But that doesn’t mean you may not still have questions. Here are some common ones we get from Terre Haute IN taxpayers this week…

1. “When will I get my refund?”
Well, the IRS does seem to have entered the 21st century.

If you had us “e-file” your return, you can check your status right now, or if you had us mail a paper return, after about 3 to 4 weeks.

When you’re checking with the following options, make sure you have a copy of your tax return on hand or know your “filing status”, SSN and the exact dollar amount of the anticipated refund.

• Online: Go to IRS.gov and click on Where’s My Refund.
[or go right to: http://www.irs.gov/individuals/article/0,,id=96596,00.html ]
• Automated Phone: Call 1-800-829-4477 24 hours a day, 7 days a week for automated refund information.
• In-Person Phone: Call 1-800-829-1954 during the hours shown in your IRS form instructions. [Of course, the hold time for the IRS is ... somewhat of an issue -- and they're closed for five days this month because of the furloughs ]

2. “Do I need to keep a copy of my return?”
Yes, for a *minimum* of three years. There’s all kinds of contexts where it’s useful. We do keep one on file, on your behalf, but it’s just smart and safe for you to keep one in a secure place at home. (I’ve already written about Amended Returns, and you need a copy for that process, of course).

As for the supporting documents from your return, anything that relates to a home purchase or sale, stock transactions, retirement, business or rental property, should be kept much longer than the three years.

3. “I think there’s a mistake in my return. What should I do?”
Sometimes, you’ll find a receipt or a documentation after April 15th which really would have changed your prior year tax return. That’s, again, when you would have us file an “Amended Return”. Here are some other, common reasons to Amend…

•          You neglected to report some income earned.
•          You claimed deductions or credits you should not have claimed.
•          You did not claim deductions or credits you could have claimed.
•          You filed under one filing status, but you should have filed under another.

You might have other questions, which I haven’t addressed here. Let me know!

Andrew Stadler

PS — For those of our clients who have previous years’ tax returns at another preparer, OR for their friends…
+++++++++++++++++
“No Charge” Return Review
Special Gift Certificate
As a complimentary service this year, we will provide a Return Review To Any Non-Client.
We will also review prior year returns from clients who did NOT have us handle their taxes during the year under question. No charge will be made, unless we have to file an amended return. Email our office or call (812) 478-2800 to set up this complimentary service!
Deadline May 10th
+++++++++++++++++

I was meaning to write my Stadler blogpost this morning, but something else came up. I had to go outside and …I don’t know, sit for while.

Writing these every week can be a grind! Especially with barely two weeks left in tax season … I swear I’ll get to it soon though. I know how important it is. But it can wait — for now. Hey, now that I’m outside maybe I’ll go for a walk!

Hopefully by now you realize I’m kidding.

I truly don’t mean to mock procrastination. I can be guilty of it just as much as the next person at times, when it comes to things I don’t really want to do.

And I’ve heard rumors that (for some unknown reason) many people don’t like to file taxes — even here in Terre Haute IN?

It appears that most folks do NOT like to fill out reams of paperwork only to finally discover how much money they are really giving to the IRS!

This, of course, is why we here at Team Stadler work so hard — to make this process as painless as possible, and to ensure that you keep all the money you deserve to keep, legally and ethically, under the current tax code.

And we’re in full “all-irons-in-the-fire” mode around here these days, with two weeks left to go in tax season.

So here’s my question — have you been in to see us yet? If you haven’t (or you have a friend who hasn’t), see the end of this post for a special “Procrastinators Only” Gift Certificate.

In fact, did you know that many Terre Haute IN tax firms (and “off the shelf” software companies) actually raise their prices on procrastinators? But that’s not how I believe clients should be treated.

But, although I will NOT raise prices…I will encourage my procrastinating friends with some wisdom from a former procrastinator…

A Terre Haute IN Tax Preparer’s Take on Beating Procrastination
When your day wraps to a close, are you leaving tired and satisfied? Or just … tired?

You’ve spent the day in nearly constant activity.

And you may have been procrastinating the whole time.

“Huh?” you say, “I can’t have been procrastinating.  I’ve been really busy!”

But there’s the rub: when we’re busy, we can easily trick ourselves into thinking that all of that activity means we’re not procrastinating. Yeah, we’re busy — but we’re not focused on the things that should really have our attention. If someone were to tap us on the shoulder and say, “that thing you’re doing — is that the best use of your attention right now?,” we would hesitate to agree.

We’re busy procrastinating.

The explosion of digital channels and the mobile web makes it very easy to integrate busy-ness and procrastination. There are a lot of “channels that lead to you.”  Email, sure. But also Facebook and Twitter and instant messaging and LinkedIn and … etc., etc.

The inputs from these channels come at us thick and fast. That makes it tempting to let the real-time arrivals drive us. Procrastination is always only a click away.

But ask yourself: what are the odds that email at the top of your inbox is the best thing to focus on next? If it’s not, and you choose to deal with it next anyway, then you’re being driven by “latest and loudest,” and are letting your channels dictate your priorities.

So, if you’re struggling with procrastination, then what should you do? To get it under control, we need to make getting moving on the right things as attractive as possible.

Procrastination usually boils down to: 1) Not Thinking or 2) Not Doing. Here’s how to beat each…

1) Not Thinking.
I’m avoiding thinking about things I know I should think about.

There can be all kinds of reasons we don’t want to think about a given item, or issue. Whatever the reason, it is usually because of the size or complexity of the issue.

So, boil it down to its contingent parts, and address the smaller issues within the larger whole. Ask yourself: What’s the exact, smallest action that can be taken to move this forward? And, What do I want to see happen from that action? You can always address those questions.

Which leads to…

2) Not Doing.
I’m avoiding doing things I know I should be doing.

Again, break it down into something smaller. Take the tiny action, do it again … and you’ll find yourself suddenly settled into taking the larger action you had been putting off in the first place.

Here’s one small action…

Consider us “The Ultimate Procrastination Solution”.

Allow us to take the pain away from that big pile of forms and obligations … and allow yourself to move into sustained action on those bigger things.

Call us: (812) 478-2800

And, of course, here’s something which will make it even easier…
+++++++++++++++++
“PROCRASTINATORS ONLY” Special Gift Certificate
$23 Towards Any Tax Service
“Yes, I Have Procrastinated Filing My Taxes This Year … But I Still Want to Protect Myself from All the New Tax Laws and Get MORE Money Back from Uncle Sam with A Peace-Of-Mind Guarantee that’ll Keep Me Sleeping like a Baby when My Taxes are Filed with the IRS!”
Deadline April 15th
Not valid with any other offer
+++++++++++++++++

To your family’s financial and emotional peace … even if you’re a procrastinator!