October 2 Your Safe Money Show topics

 We're looking forward to our next installment of Your Safe Money Show this Saturday October 2 at 8 a.m. on Nice 95.5 FM KBEK. I want to look at smart ways to gift money to your children. I’ll also have tips before you sign up for health insurance at work. And we’ll look inside the psychology of overspending and how to stop overspending. KBEK streams live at kbek.com. Hear recent shows at our podcast page at yoursafemoneyshow.com.

Standard deduction

 Here's a reminder for the 2021 tax year:

The standard deduction amounts were increased for 2021 to account for inflation. Married couples get $25,100 ($24,800 for 2020), plus $1,350 for each spouse age 65 or older ($1,300 for 2020). Singles can claim a $12,550 standard deduction ($12,400 for 2020) — $14,250 if they're at least 65 years old ($14,050 for 2020). Head-of-household filers get $18,800 for their standard deduction ($18,650 for 2020), plus an additional $1,700 once they reach age 65. Blind people can tack on an extra $1,350 to their standard deduction ($1,700 if they're unmarried and not a surviving spouse).

If you have questions go to yoursafemoneyshow.com.

Medicare signup explained

 When to signup for Medicare:

If you are already taking Social Security benefits, you will be automatically enrolled in Parts A and B. You can choose to turn down Part B, since it has a monthly cost; if you keep it, the cost will be deducted from Social Security if you already claimed benefits. For those who have not started Social Security, you will have to sign yourself up for Parts A and B. The seven-month initial enrollment period begins three months before the month you turn 65 and ends three months after your birthday month. To ensure coverage starts by the time you turn 65, sign up in the first three months.

If you are still working and have health insurance through your employer (or if you’re covered by your working spouse’s employer coverage), you may be able to delay signing up for Medicare. But you will need to follow the rules and must sign up for Medicare within eight months of losing your employer’s coverage to avoid significant penalties when you do eventually enroll.

If you have questions call 320-679-5183 and get a no cost appointment, and remember Open enrollment for Medicare starts

October 15th and runs through December 7th.

Your Safe Money Show Worst assets to inherit 9 25 21

Highlights for September 25th Your Safe Money Show

 Coming up on our (Saturday) September 25th edition of Your Safe Money Show. If you are leaving an asset as inheritance, there are some assets that can create more trouble than they’re worth, I’ll explain that. Plus, I have the downside of delaying RMD’s (Required Minimum Distributions). And we’ll look at the financial perks of growing older. Listen at 8 a.m. at Nice 95.5 FM KBEK. They stream live at kbek.com. Hear recent shows at our podcast page at yoursafemoneyshow.com.

Open enrollment schedule

 Open enrollment for Medicare starts October 15th and runs through December 7th. MnSure open enrollment starts November 1st and runs until December 15th if you need your insurance to start January 1st. Enrollment continues until January 15th but insurance won't start until February 1st. Call for your appointment at 320-679-5183.

Dispelling misconceptions with Social Security

 OK let’s continue this week with dispelling the misconceptions when it comes to Social Security. Again, we are getting this information right from ssa.gov. We have two questions and answers this week: First: Which political party eliminated the income tax deduction for Social Security (FICA) withholding? The answer: There was never any provision of law making the Social Security taxes paid by employee’s deductible for income tax purposes. In fact, the 1935 law expressly forbid this idea, in Section 803 of Title VIII. Next question: Which political party started taxing Social Security annuities? The taxation of Social Security began in 1984 following passage of a set of Amendments in 1983, which were signed into law by President Reagan in April 1983. These amendments passed the Congress in 1983 on an overwhelmingly bi-partisan vote. The basic rule put in place was that up to 50% of Social Security benefits could be added to taxable income, if the taxpayer's total income exceeded certain thresholds. The taxation of benefits was a proposal which came from the Greenspan Commission appointed by President Reagan and chaired by Alan Greenspan (who went on to later become the Chairman of the Federal Reserve). If you want to get into more details about this, go to ssa.gov they have links and you can download the full text of the Greenspan report and the provisions of the 1983 law.