Thoughts on taxes

Here is one that ended up being so long that I did not do a section on preparedness for that month. Still, taxes do relate to financial preparedness, so I thought it worked. The author is very savvy about taxes, and has ideas for things that don't really come up in my life, but that could apply to many people.

Thoughts on Taxes by Debbie Moulton

I was asked to give some advice about taxes. My first piece of advice is to keep accurate records. Get in the habit of logging the mileage of your vehicles, especially if you have a calling that requires a lot of driving (like scouts or YW leader) or travel a lot for medical appointments. Your time isn’t deductible because there is no way to measure the value of one persons time as compared to another’s, but mileage is deductible because is can be easily measured.

When you get your tax forms at the beginning of the year, verify the information on the forms. The people who prepare the forms are human and can misunderstand the tax laws or make mistakes based on the information they were given to prepare the forms. A common mistake I have seen is related to employee stock transactions as they are reported on brokerage statements. Compare your yearend pay stub with your W-2 and make sure that all the employee stock transaction amounts included in your W-2 wages have also been included in the cost basis on your brokerage statements so that you aren’t double taxed on those amounts. It is a common enough problem that this year the IRS even adapted the Schedule D form to allow you to easily make corrections to what was reported on your brokerage statements. You may want to get a professional to help you figure this out if you aren’t quite sure if everything is correct.

As you may know, medical expenses have to exceed 7.5% of your income to be deductible (including the set rate for the medical miles you have logged), however, if either spouse is over 62 years of age the medical expenses are fully deductible on your Oregon return.

By owning a home you get income tax deductions for the property taxes, mortgage interest and any mortgage insurance premiums you pay on your home. If you have a business you run out of your home you are also allowed a deduction for the space in your home you dedicate to the business. You are allowed to deduct a percentage of the home expenses (utilities, homeowners insurance, any repairs made on the home, etc.) besides the property taxes, mortgage interest, and mortgage insurance premiums. A home business is only allowed to report a net loss for a certain number of years before it is classified as a hobby and loses its deductibility, so be careful about that.

Those who have children attending college need to be sure and take advantage of the education credits. Generally, if you can claim a person as a dependent then you can claim school expenses paid for that person. The expenses could have been paid by either the child or the parent. For a child who has not yet finished 4 years of college education this includes tuition, books, computers, lab fees, etc. Check the IRS website for a complete listing of what is deductible. Make sure you/they keep receipts for all those purchases. There are various deductions for education other than that first college degree, such as classes you take to improve your own education. Generally, these expenses reduce your income rather than giving you a tax credit. Tax credits are preferable to income adjustments, so be sure to classify those education expenses correctly. The tax software you use should help you select the education deduction that will give you the best tax benefit. If you do have student loans, remember that the interest on those loans is deductible.

Don't forget the moving expenses. Keep the receipts! As long as the move was job related and the distance from your old house to your new job is over 50 miles more than the distance from your old house to your old job, then you can deduct the expenses. There no longer is a house-hunting trip deduction, but the actual move is deductible. Again, check with the IRS website to get the current list of what is deductible for the year of your move.

If you pay daycare so that you can work, make sure to get the SSN of the provider and their address so that you can take a deduction for it.

Get and keep official receipts for those charitable contributions you make.

There are guidelines about the limits of IRA contributions based on how many spouses work and what their company offers as far as retirement plans. Check about your specific situation if you want to make IRA contributions. Donating to education funds for your children also gives you a tax credit.

One other thing to be aware of is that fact that some tax credits are refundable and some are not. A refundable tax credit is one that will be paid to you even if your tax liability has been reduced to zero. If you look at a 1040 tax return, the items listed below the line that says, This is your total tax.. are refundable tax credits. Increasing tax credits that are non-refundable gets you no benefit if your income tax liability has already been reduced to zero by your itemized deductions, exemptions and other non-refundable tax credits. For instance, the residential energy credit you get for buying that new energy efficient washing machine may not get you any benefit if your income tax is already wiped out by your itemized deductions, and exemptions.

If you have questions about tax issues, the IRS website is really quite easy to easy to navigate and you can search for different topics and find examples of most scenarios of tax situations. If you find information to justify something you chose to deduct on your tax return, print it out and keep it with your tax file in case you are audited.

In this day of doing everything electronically, I still recommend making sure you have paper copies of receipts or logs to back up all the numbers on your tax return. If you do get audited and they find a discrepancy, they are justified in auditing prior years also. Keep those tax returns and backup in a safe place in case you should need them.

Dealing with health challenges

I'm sick. I do not have a lot of energy for writing today. Also, I feel like I need to catch up some more on the Relief Society letters.

When this particular blog started, it was specifically for storing the emergency preparedness newsletters somewhere. I had started out as a ward preparedness specialist, then for the stake, then on the ward level again, and in each of those roles I did a monthly newsletter.

When I started doing the Relief Society newsletter, it was not specifically for preparedness at all, at least not at first. For the first year there would be one piece by different women in the ward, and then a section from the Fly Lady. (Those were home tips from a web site. She drove me nuts, but a lot of people like her.)

The Fly Lady section was replaced by a preparedness section, and I did write that, but a lot of it was based on things I had written before, so there never seemed to be a need to capture them here. Now I keep feeling drawn back to the material. It isn't even necessarily my own.

I think there are two things going on. One is that I am currently in between project phases, and I will start having new things to write soon, but I am not really there yet. I could force the issue, or I could take a break from this blog, but neither feels quite right. I suspect this is because of the other thing, in that many of the women shared really good information, and maybe it is meant to reach additional people. So, we will do some catching up, with credit where credit is due.

Thoughts on Dealing with Health Challenges by Sandy Christensen

I’ve been asked to share a few thoughts about caring for family members with health challenges. While this isn’t a particularly exciting topic, it is something that most, if not all of us, will face at some point in our lives. While I don’t claim to be an expert on the subject, I hope that the insights that I have gained over the past year caring for my husband and son during their extended illnesses can be of some benefit to you in dealing with not only health challenges, but other types of “stretch assignments” as well.

1. Trials are part of life. They are part of the plan and part of the reason we chose to come to earth. Try to accept them and not fight them too much. Although unpleasant, our trials can be our greatest teachers as illustrated by this quote by Elder Orson F. Whitney.

“No pain that we suffer, no trial that we experience is wasted. It ministers to our education, to the development of such qualities as patience, faith, fortitude and humility. All that we suffer and all that we endure, especially when we endure it patiently, builds up our characters, purifies our hearts, expands our souls, and makes us more tender and charitable, more worthy to be called the children of God…and it is through sorrow and suffering toil and tribulation, that we gain the education that we come here to acquire and which make us more like our Father and Mother in heaven.” (as quoted in Faith Precedes the Miracle, p. 98)

2. Prepare temporally as much as possible. You never can tell what is around the corner in life. There is no way to prepare for some events, but for other challenges we can prepare. Obtain health insurance if at all possible. Save $ for unexpected emergencies. Establish a relationship with a good primary care physician. Keep basic health supplies on hand : fever reducer and OTC pain medicine, pedialyte, chicken broth, crackers, cold remedies, Benadryl, toilet paper, peptol bismol, etc. This will save you a late night trip to the store.

3. Prepare spiritually for the unexpected. If we add “spiritual oil to our lamps” each and every day, we will be prepared to face the challenges that come to us. It doesn’t mean that it won’t be difficult, or that we won’t suffer, but we will be able to turn to our Savior and feel his love and support, and that will strengthen us and carry us through. With His help we can become a better person, not a bitter person.

4. Seek spiritual power during the trial.  Pray for guidance and strength. Listen to the Spirit. Read the scriptures, and a conference talk every day. Pray for your Doctor and other medical providers that they will be inspired. Fast. Attend the temple. Put the patient’s name on the prayer roll of one or more temples. Obtain priesthood blessings as needed. Both the patient and the long-term caregiver may need a blessing. Priesthood blessings do not need to be our last resort. Heavenly Father loves us and desires to bless us. He is pleased when we exercise our faith in Him.

5. Have an attitude of gratitude. Learn to recognize and express gratitude for the many tender mercies Heavenly Father blesses you with each day. Record these in your journal to provide you with strength later on.

6. Be a good patient/caregiver. You will get better medical care if you prepare in advance for your Doctor’s appointments. Do your research on reputable sites. Knowledge is power, but don’t believe everything you read on the internet. Bring written questions (and your written logs of symptoms, and other pertinent info) to your Doctor’s appointments. Discuss them. Bring another adult—two heads are better than one. Take notes at the appointment so you can remember everything. Find an excellent Doctor and then follow their advice.

7. Take steps to minimize the stress of having a chronic illness, or of being a long-term caregiver. Exercise as vigorously as possible, spend time in nature, listen to uplifting music, record your thoughts in your journal, practice relaxing, (progressive muscle relaxation or guided imagery are two useful techniques). Find joy in small and simple things. Get adequate sleep and good nutrition. If you can’t sleep because of excessive worrying get up and do a “brain dump” – write down all of your thoughts, then go back to sleep. Spend time with the people that encourage and uplift you. Embrace opportunities to serve others. Serving others will lift your own spirits. Send out e-mail/Facebook updates so you can benefit from the love and support of those that care about you, and so you don’t use all of your precious energy giving updates about your patient. This is especially important if things aren’t going so well--it is just too emotionally draining to have to talk about the same distressing news over, and over, again.

Minimize/avoid things that cause you stress: watching/ listening to the news, doing too much internet research on potentially deadly health conditions etc.

I’d like to close with this encouraging, and uplifting quote by Elder Bruce R. McConkie.

“…anything that befalls us here in mortality is but for a small moment, and if we are true and faithful God will eventually exalt us on high. All our losses and sufferings will be made up to us in the resurrection…and God shall wipe away all tears.” ELDER BRUCE R. MCCONKIE, The Dead Who Die in the Lord, November 1976 Ensign

Things to think about

Two things have had me thinking recently, and I am going to try and put them into a unified whole.

One was a report on Oregon's readiness for a major quake, as we are expecting, and the plan they have for getting things ready would take fifty years to implement. Well, it could be fifty years before the next major quake hits, or it could be sooner, and also, I don't think they are actually starting the plan, which could be another concern.

As dismal as that may sound, that wasn't what struck me. They did mention wanting people to have two weeks worth of supplies rather than three days, and the liquefaction of the soil, and we have talked about all that, but the other thing that was really interesting to me was the estimation that it would take three months to restore the power grid. That's a long time in the dark.

And we have talked about dealing without electricity before, but with such an extended time period, new factors are introduced. Batteries may run out that would have been sufficient for two weeks or even a month. You may get really sick of eating uncooked food. Everything in your freezer will thaw.

The other thing that got me thinking was the storm moving in on the East Coast, and a sister was asking me if a blizzard is a big deal now, compared to what it once would have been. Of course, we have all read the Laura Ingalls Wilder books, and I am sure Nemo will be nothing like the Hard Winter, but still, how difficult can it make things?

There are a few concerns. If you are caught traveling in it, there is definite danger. You can still get lost and freeze, though in a densely settled area it should be a little harder. You can still see property damage from heavy winds, heavy snow accumulation can cave in a roof, and there is concern that flooding will be a problem, so there are all of those things, and while people are still recovering from Sandy.

However, there is another aspect that I had not thought of before, relating to the economy. We have so many people living on the edge. If there are people who have lost their heating due to being unable to pay bills, that makes it more dangerous. If there are people living paycheck to paycheck who can't stock up on food, and then cannot get out to buy more food, that is dangerous. There are people for whom a few extra days off of work can be disastrous.

I don't have any easy solutions for these things, but the blog is generally standard practices, and these might require some very individual solutions. Raising the questions, and thinking about the issues, can lead us to the information we need.

I want an additional cooking option. There was a folding stove that used Sterno that I intend to pick up soon. I probably will not get enough fuel to cook three months worth of meals, but if I can cook more often than I would be able otherwise, that gives us some flexibility, and I will take it.

A few weeks ago our freezer was getting really empty, and I was concerned. With some sale scouting and coupons, it is pretty full again, and and we have more cans. That makes me feel better.

We are not living on the edge with our heating bills yet, but at some point I may feel like I want to stock up on blankets, and then I will find a way to do it. I am a strong believer in thinking.

In the earthquake discussion, this group was mentioned: http://www.preporegon.org/

I haven't had a chance to look around much, but I will, because I am always looking for ideas.

When to seek help for mental and emotional issues

I have been more aware lately of those who struggle with depression and suicidal tendencies, and I wanted to post something that I had collected for a Relief Society newsletter about a year ago. This was written by Emily Alder, and is a good starting point. As the year progresses I am going to be reading a lot more on the topic, and I may have other things to say, but this is written by someone with some expertise, and with compassion:

As Latter-day Saints we are taught to be self-sufficient and, as a result, we sometimes mistakenly believe that we must do everything on our own. There are many members of the church who will only seek help from their bishop, home teachers or visiting teachers, and only in the most extreme situations. Sometimes we can feel embarrassed when circumstances and emotions seem to be beyond our ability to cope. God has promised us that he will not give us burdens and temptation beyond our ability to bear them (1 Cor. 10:13); however, the scriptures do not say that we have to do everything for ourselves without assistance. In fact, this is unhealthy thinking that can result in a lot of physical and emotional pain.

Mental health professionals exist to help those in need, and it is important to recognize when we would benefit from their services. Striving toward perfection can often feel discouraging. Discouragement can quickly turn to depression, a feeling from which it is very difficult to break free. Signs of depression include loss of interest in things that you normally enjoy, difficulty getting out of bed, problems falling or staying asleep, increased crying, an increase or decrease of appetite, feelings of hopelessness, and sometimes even thoughts of harming oneself or others. These are very serious feelings that should not be taken lightly and do not need to be confronted on your own.

There are also some issues that may be too complicated or too time consuming for the bishop or other leaders to handle. It is also appropriate to seek mental health counseling in these circumstances, such as struggles with substance abuse or other addictions, general or social anxiety, relationship or marital problems, behavioral problems with kids, experiences with trauma or abuse, identity problems, and anything else that prevents you from enjoying life and/or feeling normal. It is very important to remember that you are not weird or strange, and you should never be embarrassed if you are struggling with any issues that impede your happiness. We all have experiences that are difficult and we all need help sometimes. We are daughters of God, who loves us, and He wants us to be safe and successful.

The last thing to remember is that there are countless therapeutic techniques and many theories about what type of treatment works best. We are lucky to live in an area where there are so many mental health professionals, but sometimes it can feel like trying to find the right sock in a stuffed drawer —you may not always find the best match at first. It is appropriate to ask a therapist or counselor about their treatment style and then decide for yourself what works best. Just because you didn’t like one particular counselor or felt that one person wasn’t very helpful, it does not mean that you will never benefit from professional counseling.

For more information about seeking help, talk to the bishop, the Relief Society President, your doctor, or go to www.providentliving.org.