9 Common Everyday Tax Deductions That Expired in 2012

Here are 9 Tax Deductions that expired at the end of 2011; for the millions of Americans that use these deductions you will find yourself with a higher tax bill the following Spring when you do your 2012 taxes.

MORTGAGE INSURANCE PREMIUM DEDUCTION

Starting in 2006 new loans that required Private Mortgage Insurance (PMI) and the borrower met certain income limits could deduct the insurance premium for PMI from their taxes. This deduction was a temporary measure enacted at the beginning of the Great Recession and it was set to expire at the end of 2011.

TUITION & FEES DEDUCTION

Taxpayers who couldn’t claim the American Opportunity or Lifetime Learning Credit were able to have up to $4000 deducted from their taxable gross income to help pay for school tuition and other educational expenses.

RESEARCH AND DEVELOPMENT CREDIT

This is a tax break that provides credits to business that spend capital investments in Research and Development of new products or technologies. It was designed as a boost to help increase innovation and subsidize research into new areas that might not have been carried out otherwise. It has to periodically be renewed by Congress, in the past they always have but as of now they allowed it to expire even though it has broad support among both parties and both houses and from many business and scientific advocates. It is perhaps telling that a measure that has such broad support and that has been renewed many times before failed to be extended last year; the US government has proven itself to be very inept.

DEDUCTION FOR DIRECT IRA PAYOUT TO CHARITY

Previously retirees 70 ½ or older could direct up to $100,000.00 of the disbursements from their IRA (Individual Retirement Account) directly to charity and have those donations be excluded for taxable income. This was a program that also had broad support and benefited not only the retiree who was making the donation but countless others who would eventually be the beneficiary of the funds as used by the various charity organizations.  This along with other recent eliminations of favorable tax treatment for charitable donations has severely affected many charities who count on wealthy large donors so they can provide much needed help to those less fortunate.

WRITE-OFFS FOR STATE SALES TAX

This is deduction that will adversely affect millions and millions of Americans who live in states that have little or no state income tax.  This deduction allowed taxpayers to choose to either deduct state income taxes or sales taxes paid in state from their Federal taxes owed to the IRS.  With the choice gone millions of taxpayers will not be able offset their Federal taxes as they have been able to do before. 

HIGHER MASS TRANSPORTATION BENEFIT

This deduction was part of the 2009 Federal Stimulus program that increased the amount a person could have deducted from their paycheck to help pay for commuting and transportation costs from $120 to $230.  The $230 mark brought this benefit in line with what is allowed for parking compensation.  In 2012 this deduction will drop back down to $125 and any employees who have asked to have the amount deducted from their paychecks will find a rude surprise when their paychecks shrink even more because all the difference is now subject to full payroll taxes.

TEACHER’S SUPPLIES DEDUCTION

Previously teachers were able to deduct up to $250 for classroom supplies they paid for out of their own pockets.

ALTERNATIVE MINIMUM TAX PATCH

Don’t even get me started on the AMT! I have ranted and raved many times about the Alternative Minimum Tax, you can find out more about the AMT here, it’s a post I wrote the last time they failed to create a patch.  Basically the tax was an alternative tax created in the 1970′s designed to make sure the “rich” pay their fair share.  It eliminates all other deductions and charges a flat 25% tax on total income. The problem is that the numbers are still locked into what was “rich” in the 1970′s and have not been updated for inflation.  So guess what, under the numbers most Americans fall into the alternative tax. Every year Congress has to issue a one year temporary patch to update the numbers to reflect inflation otherwise it reverts to the 1970 numbers. Another thing that bugs me the most about this tax is that every year when they update the tax they do it so more and more Americans fall under the higher tax and in reality the “Rich” never really pay the tax.  Check out the post I linked to in this section and you will see what I mean.  It’s just another way the government dupes the public with false talk all so that they can increase taxes on middle America.

PERSONAL TAX CREDITS APPLIED AGAINST THE ALTERNATIVE MINIMUM TAX

Previously it was possible to apply your tax credits such as the tuition credit or dependent care credit against what you would owe for the Alternative Minimum Tax.  This along with the expired AMT patch will force tens of millions of Americans to pay significantly higher taxes in 2012.

There you have 9 of the most commonly used tax deductions that were allowed to expire at the end of 2011 and unless Congress is able to take positive action to fix these conditions you are very likely to see a much higher tax bill when you do your 2012 taxes.  

Bernie Sanders’ Free Education Program Would Actually Save Federal Taxpayers

President hopeful Bernie Sanders has wooed the hearts of young progressives throughout the United States. One of his biggest promises is offering college education freely available to everyone.  Of course, conservatives and libertarians have openly protested this idea. They argue that it would be prohibitively expensive, but if they gave up their longstanding tradition of ignoring facts, then they would find the opposite.

Federally Funded Education at a Lower Cost

According to the National Center for Education Statistics, American colleges collect just under $70 billion a year in tuition. Sanders’ “College For All” bill would require the federal government to fund two thirds of the cost and let the state pick up the remainder. His plan assumes that the cost of education wouldn’t change after the new plan goes into effect.

So what this essentially means is that federal taxpayers would have to pay $47 billion in taxes to fund college education for students throughout the country. Before conservatives start moaning about the cost, they should realize that they are already paying nearly $70 billion in student aid for low-income college students. Under the new program, they would actually be paying less than before.

The caveat is that the remaining$23 billion for college education would fall on the states. States already have mechanisms in place to fund education, so this wouldn’t be a burden for the states either.

How the Sanders Proposal Would Eventually Save Taxpayers

Sanders plan would also give greater control of education institutions to the federal government. It would place limits on faculty salaries and other costs.

This is a serious issue, because many colleges waste an inordinate amount of money on unnecessary spending. According to research from Georgetown University’s Center on Education and the Workforce, the United States spends more per capita than any other country in the world except Korea.

Is this because we have a superior college education system? Not at all. Our students are lagging those in other developed nations around the world. State colleges are simply allowed to spend a lot of money on nonsensical  programs, which cost both state and federal taxpayers.

Bernie Sanders feels that those costs need to be closely monitored. If his “College for All” bill went through, then a large amount of wasteful spending would be eliminated, which would eventually save taxpayers a substantial amount of money.

Maybe it’s time that conservatives stand by their principles of saving the taxpayers, even if it means supporting a “socialist.”

5 Tips from the World Health Organization to Avoid Cardiovascular Disease

Diseases that affect the heart and blood vessels are the leading cause of death in the world, according to WHO. That is why we must take the prevention of cardiovascular diseases very seriously. Today we give you 5 simple recommendations that will help you.

WHAT ARE CARDIOVASCULAR DISEASES?

Cardiovascular disease (CVD) is a group of disorders of the heart and blood vessels, including:

• coronary heart disease: disease of the blood vessels that supply the heart muscle;
• cerebrovascular diseases: diseases of the blood vessels that supply the brain;
• peripheral arteriopathies: diseases of the blood vessels that supply the upper and lower limbs;
• rheumatic heart disease: injuries of the heart muscle and heart valves due to rheumatic fever, a disease caused by bacteria called streptococci;
• congenital heart diseases: malformations of the heart present from birth; Y
• deep vein thromboses and pulmonary embolisms: blood clots (thrombi) in the veins of the legs, which can detach (emboli) and lodge in the vessels of the heart and lungs.

Heart attacks and cerebral vascular accidents (CVA) are usually acute phenomena that are mostly due to obstructions that prevent blood from flowing to the heart or brain.

The most frequent cause is the formation of deposits of fat in the walls of the blood vessels that supply the heart or brain. CVA may also be due to hemorrhages of cerebral vessels or blood clots.

MAIN RISK FACTORS

The most important causes of heart disease and stroke are an unhealthy diet, physical inactivity, smoking and harmful alcohol consumption.

The effects of behavioral risk factors can manifest in people in the form of high blood pressure, hyperglycemia, hyperlipidemia and overweight or obesity. These "intermediary risk factors", which can be measured in primary care centers, are indicative of an increased risk of heart attacks, strokes, heart failure and other complications.

It has been demonstrated that the cessation of tobacco consumption, the reduction of dietary salt, the consumption of fruits and vegetables, regular physical activity and the avoidance of harmful alcohol consumption reduce the risk of CVD.

On the other hand, it may be necessary to prescribe a pharmacological treatment for diabetes, hypertension or hyperlipidemia, in order to reduce cardiovascular risk and prevent heart attacks and strokes. Health policies that create enabling environments to ensure the affordability and availability of healthy choices are essential to motivate people to adopt and maintain healthy behaviors.

5 RECOMMENDATIONS TO PREVENT CARDIOVASCULAR DISEASES

1. Eat a balanced and healthy diet 
   It is essential to prevent cardiovascular diseases. Choosing the right foods will help take care of you and maintain good cardiovascular health. Here you can find specific nutritional tips to help in the prevention of heart problems. 
2. People with overweight and obesity 
   they are more vulnerable to the risk of cardiovascular disease. Hence the importance of taking care of food and maintaining regular control of our weight . 
3. The consumption of alcohol and tobacco 
   It is one of the main factors that increases the chances of suffering cardiovascular disease.Ideally, do not abuse alcoholic beverages and completely eliminate tobacco , as it severely affects the blood vessels of the heart, brain and extremities. 
4. Perform physical activity on a regular basis 
   It is very beneficial for the heart. It is shown that people who exercise often have a lower risk of suffering from cardiovascular diseases and tension and cholesterol problems. 
5. Check and maintain control of cholesterol and glucose levels 
   It is of great importance when it comes to preventing cardiovascular diseases. In addition, it is also advisable to check your blood pressure regularly and consult your doctor if any type of alteration occurs.

Common Oil Change Mistakes to Avoid

Your car oil needs to be changed regularly to avoid engine problems. Unfortunately, many people make a number of mistakes while changing their oil, which can lead to expensive problems down the road.

Don’t Make These Oil Change Mistakes

Your car will operate much more reliably if you oil is changed properly. Here are some common mistakes that you will need to avoid.

Neglecting to Read Your Owner’s Manual

You will want to carefully read your owner’s manual to see what type of oil you should use. Some cars require synthetic oil, so you will need to make sure that is used to ensure the longevity of your vehicle. However, other vehicles don’t need synthetic, so you may be wasting your money on it.

Not Knowing What Oil Was Used

You have probably heard people tell you that it’s okay to only change your oil once every 7,000 miles. The argument is that people can wait longer to change their oil, because newer synthetic oil lasts much longer. However, many mechanics still use semi-synthetic or regular oil, so your car may still need to be changed every 3,000-5,000 miles. Find out what oil was used so that you can schedule your oil changes properly. 

Failing to Keep Track of Oil Changes

You will need to make sure that your oil changes are carefully recorded. You can easily lose track and go too long without changing them, which can cause contaminants to develop and lead to engine damage.

Overtightening the Filter

You will need to make sure that the filter and drain nut are tight after your oil has been changed. However, they can both crack if they are tightened too much, which can lead to oil leaks down the road. The damage can also be costly to repair, so make sure the right amount of force is applied.

You should be able to tighten them with a single hand. You generally won’t need to apply more than 25 pounds of force to get the filter or drain nut tightened.

Forgetting to Replace the Oil Drain Plug

The oil drain plug has a soft washer to seal the oil in. It will be crushed after it is first tightened, which can cause your oil to leak. It is important to make sure that it is replaced after your oil is changed. You should be able to find one at your local auto shop. Just make sure that it is the right fit for your vehicle.

Sri Lanka Tourist Scams Abound as Tourism Rises

My friend Jennifer was recently victim of a scam while traveling to Sri Lanka. I figured I should share some tips to help others who might fall victim. 

Sri Lanka is rapidly becoming one of the most popular tourist destinations in the world. The Sri Lanka Tourism Development Authority reports that the number of travelers increased from 566,202 to 1,274,593 between 2004 and 2013. Unfortunately, criminals have started targeting tourists since they started to discover the quaint Southeast Asian country. Travelers should be aware of the scams and take the necessary steps to protect themselves.

Identifying Common Travel Scams

A number of scammers in third world countries like to target travelers from developed countries. Here are some of the most persistent scams in these countries.

Unscrupulous Cabbies

Cab drivers will often try to lure unsuspecting tourists into their cars to rob them. They may be unscrupulous drivers working for a company that doesn’t check up on them or simply scammers impersonating a local ride sharing company. You may want to read this story from This Way Paradise blog to get a sense of how these scams operate.

Either way, the MO is usually the same. They promise to take you to a popular travel destination that other drivers don’t know about. They will then drive you to an out of the way area and rob you blind. You should always be on your guard around cabbies and only go through drivers that have been recommended by a travel guide or someone that you have come to trust.

Faux Charities

Many scammers also pretend to represent fake charities. They know that most tourists don’t know which nonprofit groups are legitimate and may be more than likely to hand their money over. The scams are particularly common in Kandy, but happen in all major tourist cities in Sri Lanka. Massive floods strike the country nearly every year, such as the 2004 Indian Ocean Earthquake and Tsunami, which is something that scammers often use as leverage over well-intentioned, unwitting tourists.

Always authenticate any organization before giving money to them. You can research them at charity-charities.org.

Bait and Switch With Hotels

Many scammers will try to trick you away from your hotel and enrolling in a much costlier villa. They may casually strike up a conversation and ask where you are staying. They can then produce a business card they marked up from that hotel and claim that it is currently under renovations. They will then ask you to pay them a fee to stay in their villa. Of course, the fee will be much higher and they may try to rob you while you are there.

It is always important to stay in close communication with your hotel. Uga Escapes and other legitimate companies that offer accommodations will always notify people in advance if there are any problems, but will make sure that visitors aren’t inconvenienced unless a major problem arises. Ensuring high quality service to their hotel guests will always be their top priority, so be wary of anyone that claims otherwise. 

Choosing the Best College Savings Plan for Your Child Part 2 – Coverdell ESA’s

Are you considering investing in your child’s college education? Ever wonder which college savings program is right for your specific financial situation? Well you’ve come to the right place. In part 1, I discussed the 529 College Savings plans. 

In this todays post, I will talk about the second type of college savings plan: The Coverdell Education Savings Account.

Coverdell Education Savings Account

The Coverdell ESA is a type of investment account where non tax deductible cash is contributed into the account for the benefit of a child under the age of 18. The contributions are limited to $2,000 per year and contributions grow tax free within the account. Money withdrawn from the account is free from taxes and penalties as long as the money is used for qualified education expenses. If the money is used for anything else it will be taxed at standard income tax rates plus a 10% penalty.

Advantages of Coverdell ESA’s

• The owner of the account has the ability to direct the specific investment choices.
• A family member can contribute money to a Coverdell ESA in conjunction with a 529 plan.
• An unused Coverdell ESA can be rolled over for a family member of the original beneficiary.
• Withdrawals are tax free for students enrolled full time, half time, or less than half time.
• The account can be used for qualified education expenses for elementary and secondary education (kindergarten through grade 12) at public, private, or religious schools.

Disadvantages of Coverdale ESA’s

• The Annual contribution limit is $2,000.
• No contributions can be made to the account once the beneficiary turns 18.
• The money must be used by the time the beneficiary turns 30 or rolled over into another Coverdell ESA for a family member of the original beneficiary.
• Withdrawals cannot exceed the beneficiary’s qualified educational expenses otherwise it will be taxed.
• The contribution amount to a Coverdell ESA is phased out for married couples with adjusted gross income between $190,000 – $220,000 and for all others with income between $95,000 – $110,000.

Definition of Qualified Education Expenses

• Tuition, fees, tutoring, special needs services, books, and supplies
• Room and board, uniforms, transportation, and extended day programs required by the school in which the beneficiary attends
• Computer technology, equipment, and internet access

5 Times Women Threatened False Accusations to Force Men Into Sex

Over the last few years, leftists have been talking extensively about "rape culture." Their comments and bogus statistics (like the one-in-four estimate) have crossed the line to hysteria, while ironically ignoring the plight of male rape victims. Even worse, they ignore the power that rape culture hysteria has given to evil women - including female rapists.

Here are five women that raped men with the threat of false accusations.

Tina G. Thomas

Tina G. Thomas is a sociopathic 46-year old woman that had a very twisted infatuation with her friend's 16-year old son. Thomas allegedly invited the boy to go to the store with her to buy milk. On the way, they stopped at a porta-potty on the way home. Thomas reportedly told the boy that she would accuse him of rape if he didn't have sex with her.

"The victim said they drove to a porta-potty, where Thomas told the victim he was going to have sex with her. The victim told deputies he did not want to. That's when the victim claims Thomas threatened that she "would tell everyone that he raped her". The victim said he engaged in intercourse with her in order to save himself from that kind of allegation."


Kimberly Sheppard
Kimberly Sheppard is another 40-something woman that was just so desperate to have sex with a teenage boy, that she allegedly resorted to threats of false accusations. According to the Toledo Police Department, she told the boy that if he didn't have sex with her, she would tell his mom that he raped her.

"According to court documents, she allegedly raped a boy who was younger than 16 on June 13 and threatened to tell his mother that he had raped her if he did not comply."

Sara Meghan Henderson

Sara Meghan Henderson was a 40-year old woman that was charged with forcing a 16-year old boy into performing oral sex on her. According to Elizabeth Mohr of The Pioneer Press, she told the boy not to tell anyone or she would blame the whole thing on him.

"A 40-year-old woman allegedly forced a 16-year-old Stillwater boy to perform a sex act on her, warning him if he told anyone she would deny the whole thing and blame it on him."

This is exactly what she did after the boy reported her to the police. While she was the one that was charged, she still only faced one count of  criminal sexual conduct with a child. She was convicted and later sentenced to a whopping 44 days in jail.

Unknown Perpetrator (Dear Abby)

According to a letter to Dear Abby, a woman said her husband was the victim of sexual abuse in high school - at the hands of his female cousin. His cousin had threatened to accuse him of rape if he didn't perform sexual acts with her. The acts didn't involve intercourse, but still left a profound emotional scar on him for years. She only stopped after finding a boyfriend.

Unknown Perpetrator (Reddit)

A few years ago, a woman on reddit posted a story with a "Confession Bear" picture. I can't find the link (one is under the Internet Archive), but will update this story later if I do.

She claimed that when she was 16, she forced a guy she babysat for to have sex with her by telling everyone that he had with her if he didn't comply. She made the threat after propositioning him several times. 

I wondered at first if this was a troll, but checked their comment history (the post was made two years earlier). All of their recent posts were in r/twoxchromosomes, a subreddit for women and talked about very mundane things (like buying their first bra, dealing with guys at work, their favorite sport in high school etc.), so it seems the poster really was a woman. 

She could have ruined the guy's life after, since he did actually have sex with her and no one would have believed him. However, she clearly chose not to.