COVID 19 #3 - GETTING BILLS PAID IN NEW WAYS

I have mentioned that I am in an embroidery club.  We meet the first Wednesday of the month except in summer.  I reserve for the group the room at a local park in which we meet.  This is done in November for the coming year.  When I saw that the April meeting would be today – April Fools Day – I wondered what might happen.  I never dreamed that we would not be meeting due to a pandemic – or even just an epidemic.  I hope that all of you and your families continue to stay safe and well.

We are learning bit by bit about how to deal with the threat of  COVID 19 as I am sure most to all of you are also.  Every time I touch something to use it – my husband gets upset that we will use up all of whatever it is I go to touch so I have been figuring out how to do more with less and alternatives for consumable items that I normally use without thinking about it.

Luckily we did manage to buy an extra huge package of toilet paper just as the emergency was becoming obvious – husband, as I have said panics easily – so he has not started rationing same.

We have a lot of paper towels  - but did not think to buy extra when we could.  We have started packages of both full and half sheet paper towels.  (And as I always mention to him – a started and a full roll out in our RV – we have spares of most household items there – including at least 2 started and 2 full rolls of TP.)  But he did not like that I was using a half sized sheet each meal to wash the dishes – this quickly became one half sheet for the day's dishes.  I offered to go back to using a sponge to wash the dishes (we had stopped same last summer when we had ants) but he did not like that either and told me to stay with one half sheet a day.  Then looking in the cabinet under my kitchen sink I had an idea.  I keep several old kitchen towels there to use for things like wiping up a mess, covering the front of the sink/counter when husband washes his hair in the sink, etc. I took one of them – actually a rag by now – and thought about it.  I pulled out a pair of shears and cut it in 6 pieces (smaller would be too small).  I now have a small dish rag to wash the dishes , etc – as well as wipe up spills  - I change it every day and throw the piece from the day before in the towel laundry bag in the kitchen.  They actually work pretty well – they are “bumpy” so they scrub a bit.  I cut 2 more pieces off another towel, leaving the rest of it intact – for now.

I normally do laundry on Wednesday night (while writing to you) and sometimes more than one night is needed so Thursday sometimes also.  The downstairs laundry bag almost always holds nothing but towels (sometimes a sock wet from the rain or similar might end up in there also).  My upstairs laundry bag holds clothes, bedding and towels to be washed.  I put a second bag upstairs for just towels.  I normally change all the towels on Monday, the hand towels in the 2 bathrooms again on Thursday, so each time they are used for about half a week, and the kitchen towels again on Wednesday and on Friday.  Now all towels are changed every other day – so the towel laundry is now done on a day that changes as I do so every 3 changes of towels – hence the need for a special bag for them upstairs.

Last weekend I went online and signed up to have our mail forwarded from our Post Office Box to our house.  No more late Sunday night runs there to get the mail – I forgot which hand was for touching mail items and doors and which was never suppose to do either once too often for husband and was annoyed at having to do so – and we wore plastic gloves on both hands.  Our only trips there now will be at night to mail out items that have to go out – and they will go in the mail boxes outside the Post Office.  I only take in the mail at our house 3 times a week – Tuesday, Thursday, and Saturday.  The mail goes into a sealable plastic bag and I spray Lysol into it – the bag then sits until the matching day of the next week – once our mail starts coming here on the forwarding, it will not sit that long as it will already be 7 -10 days additional time in the mail – and bills cannot wait that long.  These procedures are to make husband less terrified – not recommended by anyone.

Bills – I thought we would be okay.  We are both on Social Security and most of our income comes from same.  Our payments are deposited in our checking account and ready for use.  Luckily within the past year  I had changed our Social Security to go into our checking account instead of our savings account where it used to go.  Well, we ran into two problems with our bills. 

First, I realized last week that we had to pay our electric bill – and did not have the money to do so in our checking account.  In normal times we would have gone and transferred money from somewhere – perhaps some extra cash that we ended up with in the house after one of our few trips would be deposited back in the bank or we would transfer it from savings – but we are not going out and not going to the bank to do so.  I realized that we could pay the electric bill with a credit card – we never do this, but since we pay all of our credit card bills in full in monthly, there is no interest that will do on same. 

We use one credit card for rare online, mail, phone order purchases or recurring items that have to be credited to a credit card – it has only has $1000 line of credit due to what it is used for – did not want to tie up that line with an amount equal to the electric bill.  So I decided to put the electric bill on one of the cards that we do not normally use at all – I use it once a year to keep it active for, generally, an under $5 purchase.  I was concerned that using it pay of a couple of hundred dollars of electric bill all of a sudden might get rejected.  So I figured that I would call the credit company in advance and let them know. I started calling Monday early afternoon.  I would be told by their computer that they have an unusually large number of calls and to please be patient.  I understood this and was prepared to be patient.  The computer kept trying to get me to use their website instead – I don't do financial things online unless there is ABSOLUTELY no other way to do it.  I started to wait.  I was then told to call back later and the computer hung up on me.  I called again and tried to use the computer – same thing.  I tried several times during the afternoon (no where to go anyway) and again in the evening.  No luck.  I waited until 12:05 (the next day) and then called, figuring how much “later” could one call and also that it was night it in the most US and that hopefully there were different offices to handle customers in other countries – after all on the back of my credit card it said that it was “24 hour number”.  It seemed to work.  This time I was told to hold – and I did – I was prepared to hold as long as needed.  At 1:05 am a message came on telling me the office was now closed and I should call back – yes, - later.  Now how can a 24 hour office be closed?  I thought about this and applying some logic – perhaps they switched to the next office in the time line and if I called again I could be hold with that office.  So I called again.  To my shock the call was transferred almost immediately after I spoke to the computer to a LIVE PERSON!!  I managed to make the arrangements with her to have no problem with paying my electric bill with their credit card.  Now as annoyed as I was, I knew that these are rare circumstances, though I was a bit po'd at the treatment that I had received – but thought that all the credit companies might be like this.  Yesterday, I called the electric company and paid the bill with the credit card – by the time the credit card bill comes in – our Social Security will have done so also.

I keep our bills organized with Quickbooks – the repeating bills (even for credit cards that we do not normally use) come up in the QB calendar  two weeks before they are normally due – a week to remind me to pay in a week and I pay them and mail them a week before they are do.  Normally I am in our Quickbook files almost daily.  But since we don't want to go out more often than we need to, I have been paying bills in advance of when they are due if we have the money in the account, so I am not in QB that often.  Today I decided to go into the file and take a look.  GOOD THING!  Our cable/Internet bill has not come and is due next week – and suffers from the same problem as our electric bill!  I tried calling our cable company today – they are taking no calls – we are to do everything through the website as the telephone system is overrun also.  I need a week delay from them to pay the bill and knew that under the current conditions it would be given.  Husband signed into the cable company's website and tried to get to “chat” to talk to someone about this.  The chat must have been jammed – it would not even all the way!  So, again, knowing that there is someone there 24 hours a day (to help in case Internet or TV goes down – they tell one to pull the electric cord and plug it back – as if we have not that already) I waited until after dinner.  I then signed into their website again.  In the interim while I cooked dinner husband had played around and found a COVID 19 part of the site with a chat.  I had to wait about 10 minutes but a very nice fellow came on the chat – I explained that we needed an extension to pay until April 15 and he told me that there is automatic 60 day extensions on all payments – matter resolved.

In the middle of sitting and making these long extended time phone calls and website connections, yesterday was my mom's 91st birthday.  Of course we cannot visit her.  My sister who is younger than me and lives near the assisted living residence mom is in, went and left a cake and flowers for mom on a car the residence has outside for items to be left to be given to one's family in the residence.  I tried telephoning my mom – I called her 7 times,  She is barely and rarely allowed out of her room these days due to COVID 19.  I even tried yelling a message when her answering machine picked up – she does not check for messages, but I hoped she would hear me and pick up (and I had proof that I tried to call her).  How could she not be in her room?  I later contacted my sister and she told me mom had a bad stomach and did not feel well and went to bed early.

When I did not reach mom the first time I called her yesterday I called a client and friend as I had sent her email about the need to file her 2016 tax return or she would lose her refund (no one says the deadline before same goes is lost has changed) – so I also spent time on the phone with her.

So instead of getting lots things done for work and in the house  - I am spending time on the phone and online dealing with problems!  But I do get to go outside to the front of the house and take in mail tomorrow and then I get to open last week's bag of mail – yippee!

THOUGHT OF THE WEEK – This too shall pass as all things do.  The important thing is for all to stay well – stay home if you can and be careful if you have to go out.  I only have a few followers on this group – I can't afford to lose any you!

MORE LIVING WITH COVID 19 - DEALING WITH OUR POST OFFICE BOX

I hope that all and your families are well and safe.  I am guessing that most, if not all, of you, are under self-isolation, quarantine or something similar due to COVID 19.  Life has certainly changed. 

I was shocked to find out that I am an essential service!  No, not as a blogger – as an accountant.  This has been an interesting tax season.  One day the Federal due date of the returns changed from April to July – but not the date for payment of taxes (which basically means that the taxes still have to be done by April 15 so the client can pay the amount due).  The next day payment was also extended to July.  But I have to explain to clients that while payment for their 2019 taxes and for their April 15 estimated tax payments towards their 2020 tax are delayed until mid July – they still will (as of right now) have to pay their June 15 estimated taxes by June 15.  So they will be paying their second payment before their first payment – and there is only one month between them!  Then the next day my home state said that they will go along with the Federal changes.  But the tax return I was working on is for a client who lives in New Mexico – and New Mexico has extended the time to file the state income tax return, but not to pay it – and they have not mentioned estimated taxes at all!  Plus I have a client who always has me file for an extension of time to file his return – and the July date is not late enough in the year – so I still need to file an extension for him – and I will do so by April 15 just to make sure it is on time.  I have been in contact with other clients (who live in my home state) and told the to take their time sending me their tax info – quite frankly I would be happier not to have their paperwork coming into the house right now.

So I moved on to the taxes for the a very small business corporation that husband and I have together.  Last year you may remember, I had all sorts of craziness going on and I had a problem matching what the corporation owes us a loan on the corporation's books and ours – and just figured that I would match it up after wards.  Of course it now a year later and I have still have to do it – and suddenly have the time to do so.  I managed to figure out that 2016 and 2017 did not seem to match as we paid money to the corporation in December and deposited in the corporation in January – so both years were fine.  But 2018!  Apparently when I did the taxes last year I picked up the wrong number from our books to use for the corporation taxes (and on the corporation's books).  So I have to prepare a corrected return (for both Federal and state) for last year after fixing the error on the books – and then start finishing the books for 2019 and do the return for that – plus of course, my husband would like to get our personal returns done – as long I do not have client's returns (paid work) to do. 

Speaking of mail -  5  - 7 years ago  we started having a problem with our mail delivery at home.  We received mail for people on streets we had never heard of (and husband has lived in this areas since he was 7).  We received mail that had been opened and taped closed – having done this myself, I presume that someone else received the mail, opened it without looking at the name/address, and then taped it closed and dropped it back in the mail when they realized their error.  Plus there are at least 5 items we never received  - 3 credit card statements and 2 items for my accounting practice from IRS.  So we changed our mailing address for most things which come to us in the mail to our PO Box for our corporation.  We have had the box for a couple of decades.  It is in a Post Office which is much closer to our house than the one that which delivers mail to us.  (We live at the opposite end of that PO's delivery area from the PO and close to two POs for the adjacent delivery areas.)

Having the mail go to the PO Box has worked great – until now.  We normally stop in daily Monday to Friday and check for mail – and mail out any outgoing mail we have.  No longer.  Since we are hunkered down in the house as much as possible, we are not going to the Post Office.  We knew we had to go there.  I started thinking.  Our Post Office is a 24 hour location.  This means that anyone can walk in 24 hours a day, 7 days a week to mail items or check their PO Box.  One just inserts any credit or debit card to open the door.  Okay, we could go at night to pick up mail – much less people then, if any.  Since we were not going to every day for a long time, I figured out that if we went on Sunday night, there would be the fewest people in the building since the close of business late Saturday afternoon – after all, who would go to the Post Office on a Sunday night? 

So, 7 pm last Sunday we made our first weekly, Sunday trip to the Post Office.  I had a large plastic bag for the mail in the box and two items to mail out – the return that had to go to New Mexico and the estimated tax forms for the other client.  As we pulled up in front in of the Post Office – someone else pulled up there also in front of us and went in with a package to mail.  We looked at each other.  Husband said that we would go to the other nearby Post Office and mail out what I needed to mail out and then come back later to check our box.  We got to the other Post Office and it was not a 24 hour one, so we could not go in.  We headed home – past the Post Office with our box.  Not only were the other people still in there – we saw someone else walk in the door!  Wow – it is a hot spot to go on a Sunday night – or others had the same idea as us.  We went home and had dinner and went back around 10 pm.  The large outgoing mail box inside was jammed shut.  I hate to mail items in outside boxes as in years past different clients of mine mailed items to me from different communities  and the mail in the boxes were set on fire.  But, the outside box it was to be.  We grabbed the mail from from our box and put it in the large bag I brought  -  which I sealed closed and went home.

While everything I read about mail and COVID  19 says it okay to open to mail and packages, everything husband reads says the opposite.  So I  am leaving the mail for a week before opening it.   I pointed out to him that the small amount of mail that comes to the house had been opened all week –  big mistake – now that mail has to sit a week in a sealed bag also!

How are the rest of you handling this change in life?  Please post back – I get so lonesome sometimes because no one every posts to me.

THOUGHT OF THE WEEK -

As the days pass and politicians argue if there will be a quick resolution or if it will take a long time before life resumes some semblance of normal – take some time away from watching and listening to information about COVID 19 and all that is going with it.  Constantly watching and hearing about it can make one feel even worse.  Pay attention to what needs to be done and take care of yourself and your loved ones – but also make sure to do things to divert your mind  to help you keep your sanity.

At some point – whether soon or not (and I don't think it will be soon) it will be end and life will start to move back towards normal.  In the mean time stay well and take care of yourself and those you love.

LIVING WITH THREAT OF COVID-19

Well  - it has gotten much more serious dealing with the Corona Virus or COVID-19 as it is now being called.  I certainly hope that all of you and your loved ones are well and stay so. 

Last week I called and canceled a follow up doctor visit for mom as she should NOT go out – she will be 91 the end of this month.  Doctor's office was very nice and told me the  - very good  - results for mom.  I have not made appointments with two other doctors she needs to go to – they can wait until it is safe for her to go out. 

During this past week our lives changed.  We had changed to going to the post office, lunch at Wendys, an attempt to find comfort items for my husband – more hand sanitizer, more hand soap, more alcohol, and/or more food – did get some more hand soap in small bottles and a bit more food.  Shelves remain empty day to day, though I did point out to husband that we do go late in the day and that may be the problem.  One of the local supermarket chains is opening early – 6 am to 7:30 am – special for only senior citizens – we just qualify for same, but 6 am?  I fall asleep at 5 am.  We may go if they continue to do this and we continue not to find things.  We are not in danger of running out of anything for a few weeks – but my husband is from a very nervous family and panics easily.  I keep reminding how much of these things we have, which always ends with “and we have more in the RV”.  We then would go home without going to other kinds of stores to walk around.  Last Sunday we did not go out to our usual Costco, BJ s , big Walmart as we normally do for fun, but it was the same as the other days. 

This week we went to the Post Office once to mail out paid bill payments,  still daily to Wendys for lunch – but, of course, we can no longer eat in Wendys – just home and eat at home.  One day went back out to supermarket – still the same. 

Last Saturday night we took in Chinese food (no dinners out any longer and that was before they ordered to only have to go/delivered orders) for dinner.  We did not go to the movies.  The theater we go to is an independent and they had sent out an email that they were going to spread the showings out further and clean/sanitize between shows – especially the seats and arm rests, bathrooms and food counters, but we still decided not to go.  We stayed in a watched a movie on TV. 

Now, everyone has been making fun of people running to buy toilet paper right?  In the middle of the movie we each received a text message.  MY sister texted me to see how my husband was doing as she knows he panics. HIS sister texted him as she never knows what is going on in the world and – yes – she suddenly found that there is toilet paper available and she is out of same for her family, let alone the news is also, but we would never be that on toilet paper ever, and she needed her big brother to help her find some.  (Eventually her husband found someone selling toilet paper at a 7-11 and bought for who knows how much money.)

Well, I have our food organized  - cans all in rows, lists of what is in the basement freezer on the refrigerator, - and we are eating less than normal at dinner.  Husband said that he would stop going to Wendys and picking up lunch – but each meal we do same, leaves more food in the house.  I am no longer using paper towels to wash the dishes – but husband did not want me to go back to using a sponge – it swirled around in my head – then I remembered – I have my old kitchen towels that are raggedy and  use for cleaning up in the kitchen – I cut up one and I have 6 pieces to use – one a day – to wash the dishes and then they will be washed. 

I normally put out clean towels on Monday and on Wednesday and Friday do so again in the kitchen and on Thursday do so in the two bathrooms.  I am now changing the towels every other day. 

My hands are raw from washing them – the cuts on them from same worry me – but what else can I do. 

Oh, today husband had a text from his sister – do we know where she can buy fish – she suddenly claims she can only fish or she gets sick (in the past it was because it was less fattening) – I guess she will be getting sick often as one will have to eat what is available.  Then again, I had expected him to hear from her upset that they could no longer eat out (every meal) and her gym (she goes daily) was closed. 

On the other hand – being in the house all the time, I am getting work done – on client's taxes and  household clearing up. 

THOUGHT OF THE WEEK -

Please stay safe – listen to what the instructions are for where YOU live and follow them.  Stay away from those outside your home as much as you can and far enough away for safety.  If we are all careful there should be fewer people ill or worse.  One day this will all be over and we will be able to put our lives back together again. 

Oh, and for something to relieve the stress – do a search for penguins at Chicago aquarium .  Since there were to be no visitors they were allowed out to walk around the building  - they look like tourists seeing the other exhibits!

PREPARING TO DEAL WITH THE CORONA VIRUS IN AN ORGANIZED MANNER

I am not a medically trained person, but I have to talk about the corona virus as it related to being organized. So, do not take anything I say as medical advise, I am just talking doing things sensibly and what I have learned from life over the decades.

I tend not to panic quickly. My husband leans the other way. So I have been working very hard at not saying anything to get him started. But there are realities to the situation that must be dealt with.

I was suppose to go to NYC to a client this week to deliver her corporation taxes and help her mail them out, do her books, and calculate the amount of of sales and sales taxes owed on them for the year ending February 29 so I could go home and file her sales taxes online – as they have to be. I was not happy at the thought of going to Manhattan even before some cases of the corona virus came to the NYC metropolitan area – including in my home county, but I needed to go. My husband was in a panic of my going. I told him that I had figured I would wear a pair of disposable plastic gloves from my car, on the subway and walking until I was at the client and inside. I would then turn the gloves inside out as I took them off and throw them out. I would then put on a second pair – carried in my briefcase – to come back to my car and toss them out the same way when I got back to my car. He was still upset. I finally gave in and mailed the tax returns to the client after calling her and telling her I would do so. I also asked her for her February sales so I could prepare and file her sales tax return. I completed the corporation return and it was mailed to her this past Monday – due the end of the week on Friday. I then prepared and filed her sales tax return and told the state to debit her bank account (the only way to pay the sales taxes) on this coming Monday, so that on the off chance she did not have enough money in her bank account she would have time to get some money into the account. Today I telephoned her and she had just received the tax forms so I was able to help with the returns and I also told her how much to subtract from her checking account for the sales taxes. Breath a deep sign of relief. I was sure that the tax forms would go astray or she would have would have problems dealing with them alone. While I wanted to ignore the threat of the Corona Virus and go to work – I was realistic about it and made my husband feel better.

Last Sunday when we went to Costco and Bjs as we do for something to do on Sundays, they were no longer handing out samples at Costco for fear of the corona virus and large sections of the store – mostly paper goods - were empty. He had planned on buying more toilet paper despite our having at least half a huge package we bought a couple of months ago there and was starting to panic that they did not have same. The store was also limiting how much of certain items one could buy. We drove up the road to Bjs (a similar type of store) and were able to buy his package of toilet paper. They were not as sold out as Costco was. Apparently there have been major runs on toilet paper. When husband brought up buying more I mentioned that we had most of the package yet – but he insisted. Per a segment on a news show, apparently it is considered a comfort item that makes people feel better to have an excess of.

He has also been looking for hand sanitizer (We have two large, unopened bottles, plus a started one, the smaller bottles that we transfer it to for use, two very small bottles that we carry in our pockets (which normally do not have to constantly be refilled – but right now are refilled nightly), and, as I pointed out to him, whatever we have in the house of items like this – is also in our little RV.

Over the recent years we have become rather bad at food shopping. While I used to keep a list on our refrigerator of what I needed to buy, would check for sales & try to buy food items on sale, and would do regular shopping (Mondays for the week, Fridays to fill in any extra for the weekend) that has all slowly disappeared since husband is home with me all the time. We have gotten to the point that other than stocking up before storms, we basically eat lunch (at Wendys) and then go out to buy “something for dinner”. We have gotten to the point where we basically have 3 or 4 dinners we make, buy deli turkey once a week for dinner and eat out (or take in Chinese food) Friday through Sunday. So deciding what to buy and shopping for it without getting him into a panic was not easy.

I brought up the idea after dinner the night before - rather off hand “I guess we should have some extra food in the house just in case.” At lunch I brought up the subject again. As we left from lunch he asked where I wanted to go for the food – we food shop at Walmart Neighborhood Market, at different supermarkets, and at a regular Walmart (same are smaller here than elsewhere) which is next to a supermarket which by default is the one we normally shop at. At the same time that the corona virus is starting to spread – our state's law on stores not using the standard lightweight plastic bags went into effect on March 1. So people are panic shopping and learning to deal with bringing bags (or buying them at the store – although our county was not one of the ones requiring a fee per bag, stores are allowed to charge for the bags – and they do – better we should have a fee as it would be cheaper than stores are charging for the bags) at the same time.

I suggested we go to the Neighborhood Market first as we tend to buy items that do not need to be refrigerated there. It was like it had been announced that a 2 week long snow storm was coming. Shelves and refrigerated cases were empty. (Then again, this store over the past several months has not had full shelves – and cans are often dented and boxes look like they had been stepped on.) We bought what we could find. We were looking for the soups that husband has before dinner (½ can of either Campbells Chicken Noodle or Vegetable soups) or the heavier soups that he likes if we eat lunch home (Campbells Split Pea, or Progresso Lentil) We bought cereal (we have for late night snack) and some items as we could find them – the soup shelves were almost empty so we bought what we could and moved on. I did have enough bags in the store with us for the purchases. (I have been keeping the bags when we get them - and using them for other things - so we have years worth of plastic bags and before that I saved the paper bags. I am combining the contents bags that we use in the bathrooms and bedroom for garbage pails liners so 1- 2 bags are tossed out with the garbage of all 4 pails.) He has started panicking over having hand soup also and this Walmart did not have – any.

We drove to the supermarket and stopped in at the small Walmart next to it first to see if it had the common items – soup and hand soup – that the Neighborhood Market did not – neither did this store.

In the supermarket the “what should we buy to eat” started. I bought at least 2 weeks worth of the foods we actually eat. I had actually come up with 4 meals to be repeated and that would still leave us 6 meals short. We bought eggs – not something we ordinarily eat, but could be used for lunch or dinner or in one of the cake mixes we bought – if we end up stuck in, something to eat that we should not eat, if not – they will keep for holiday dinners. Made sure to buy enough diet soda to last. We bought a loaf of bread = I was actually surprised that they were not out. I knew I was low on some frozen vegetables and we bought some to fill in. (Good thing basement freezer is running again.) Bought some potatoes as I had stews on the list of things to cook.

So we have a good start – but going to the stores and seeing the shelves empty put him into panic mode. He is trying to over come same, but it not easy. We wrote up a new list and will go out tomorrow to buy some more items.

We renewed the only medications we take that were not recently renewed.

We don't plan on being stuck in the house - but if we are, we can go for at least two weeks now. We need to keep up filling what we use to keep the 2 weeks of food in the house.

THOUGHT FOR THE WEEK – Prepare but don't panic. Government divisions in the most countries seem to be acting properly and making decisions as needed and telling people what to do without overdoing it and causing panic.

While instructions and information seem to vary, good common sense is your best friend.

In articles I have read about the world wide flu epidemic  in 1917 there were considerably less deaths in the US and other countries which shut down places that large numbers of people would be than those, such as England, which did not. So avoid crowded places as much as you can.

You know the rest – you have been hearing it on the TV and radio – wash your hands frequently and/or use hand sanitizer frequently. Apparently even just rubbing your hands together vigorously if nothing else is available will help.

We will get through this as people have gotten through epidemics back to the start of history. I hope that you and yours will get this as easily and with as few problems as possible.

I GOT A TAX REFUND SO DID I PAY LESS THAN THE GUY WHO OWES MONEY ON HIS TAXES?

Well, so now we get to income taxes.  Since I am in the US this post is specific to same.  None of this should be considered accounting/tax advice as everyone's situation is different.

I want to explain the difference between what one's tax is and refunds/amounts due.  I want to do this as I have found a lot of people don't understand the difference.  This came up recently on (of all things) a discussion group about a comic strip. 

In a prior discussion I mentioned that under the new income tax laws that came into effect last year (for 2018 income taxes filed in 2019) I had a client who had a low enough income (US$35,000) that they had not had to pay income taxes for several years and under the new tax law they had to pay income taxes.  Someone posted back to me that I must not be a good accountant as his brother in law always gets a large refund so the people that I wrote about should also have gotten money back.  I posted back to him explaining that having to pay taxes is not the same as whether or not one gets a refund.

If one works for someone income (and other) taxes are subtracted from one's salary before one gets paid their net taxes.  One's employer will is required to withhold these taxes from your salary and pay them to the various tax authorities for you.  In addition to Federal income tax and Social Security/Medicare taxes, different US states have different taxes that have to be withheld – some states have their own income tax, some cities or other municipalities also have their own income or other taxes, then depending on the state there may be other items that are required to be withheld from your income some examples are – unemployment taxes, disability insurance, family leave insurance, etc.  These are not taken out of your income by the government  (as someone else thought on a different group that I am on - “The state did not take enough income tax from my salary and I had to pay the rest”.  There are charts – when I started they were all printed charts, but now that may be part of a payroll program or other software – that tell employers how much to withhold and for what depending on one's income.  

Now these amounts are based on what someone making making that income for the number of people they say are their dependents and their self (and if they are married filing jointly, married filing separately, single or an unmarried head of household  who use the standard deduction will owe for income taxes at the end of the year when they file their return.  It does not take into account any other income the person has – if one is married and filing a joint return the fact that the other spouse also has income and when the return is filed the two incomes will added together and raise the total amount  on which taxes are being paid so that one will owe more,, is not taken into consideration – nor is high itemized deductions, as well as other factor which affect one's tax for the year when the return is filed. 

If one does not work for someone for wages they also have to prepay their income taxes in quarterly estimated (as in I estimating what my income tax will be) taxes which serve the same purpose as withholding taxes  - the person is paying the estimated taxes to the government(s) themselves instead of their employer doing so.  Sometimes one has to pay estimated taxes in addition to the amounts withheld by one's employer if one normally owes taxes when they file their returns.    Follow me so far?

Now these amounts withheld or paid as estimated taxes are amounts that you have paid in anticipation of what your actual income tax will be when your return is prepared.  They are just advance payments on your taxes. 

Person A (using ridiculously small numbers) had $1000 withheld from salary for Federal income taxes. 

Person B had $2000 withheld from their salary for the same amount of income for same.

Person C who is self employed has paid estimated taxes of $500 towards their income taxes on the same amount of income.

Person D who is also self-employed did not know that any estimated taxes had to be paid  and paid nothing towards his income taxes in advance. 

Then it is time to file income taxes. 

All four people in the example calculate that their income tax is $1000 – which is a relatively low amount, but let's not go into large numbers or this will seem like school.

Person A has paid their income tax in full with their withholding and exactly (very rare in real life) and owes no more income tax and is not entitled to any refund of their withholding taxes as their tax is $1000 and they had $1000 withheld.

Person B overpaid their income taxes as they had $2000 withheld – perhaps they itemized and had more deductions than the standard amount.  Person B is entitled to a refund of the $1000 they overpaid  - $2000 withheld less $1000 tax actually owed results in a $1000 overpayment to be refunded.

Person C underpaid their income taxes as they only paid in $500 in estimated taxes and they owe $1000.  Person C has to pay $500 in additional taxes as they did not prepay enough in estimated taxes.

Person D since they have not paid anything towards their income taxes owes the entire amount of $1000.

Does that make sense to you?  All four people paid the same exact amount of income taxes  it is just when they paid it that varies.  So someone who gets a refund may actually be paying more in actual income taxes than someone who owes money at the end of the year – or the same amount as the other person or less than the other person.  It is the actual amount of income tax- and not when one pays it that sets what the tax is for that person.   So if you have to pay taxes and the person next to you at work (or your friend) gets a refund that does not mean that their income taxes are less than yours – they may be paying more in income taxes than you  - or the same or less  -  the amount one owes or is due as a refund on their income tax return does not say how much tax the person owed compared to you.

Now this is all a bit simplified – if one underpays one's tax one may owe penalties or interest for underpaying their tax – one has to have prepaid 90% of their income tax or will owe same unless, in most cases,  the amount they paid in advance is equal or greater than the amount that their income tax was the year before. 

Oh – and if you overpay your tax on purpose  - remember you have made an interest free loan to the government as they have the use of your money from when you pay it to them (by withholding or estimate) until they refund the amount they owe you.

THOUGHT OF THE WEEK -

It is the amount of income tax one actually owes in total, not the amount one gets as a refund or one owes when their income tax is due  which is one's actual income tax for the year.

CHANGES IN PLANS OCCUR AND ONE HAS TO DEAL WITH THEM

I had plans for tonight's post – but things come up and I almost forgot what I had planned to write about. 

We were suppose to take mom back to her cancer surgeon today for a second follow up visit.  I have spent part of the last two weeks getting the wellness center at mom's assisted living residence to do the blood tests requested by this and also by mom's oncologist and send the results to them.  My sister who sees mom a lot more than we do as mom lives near her, had to go in and talk to the staff to get the results sent.  I checked with this doctor and the blood work results were finally there – great, we could take her there today.  Oh heck, I had not realized that today was Ash Wednesday when I made the appointment.  Why does that matter?  Well husband is Catholic and cannot eat meat today – so for lunch he had to have Wendys fish instead of his usual lunch.  So?  Well, often eating fried foods makes his stomach ill and we were concerned about eating lunch, then having to drive out, pick up mom, take her to the doctor, take her back to her residence and then drive home if his stomach was bad.  But he figured he would be okay, but was not happy about taking mom to the doctor today.

Yesterday, the day before the appointment, I was called by the doctor's office - though they thought they were calling mom as we gave them my phone number instead – why? - you will see in a later  paragraph.  They wanted to move her appointment an hour earlier.  Big problem.  It takes, from the time we arrive at mom's residence, an hour and a half to get her to an appointment 15-30 minutes from there.  We have to go up to up to her room, take the big wheels off her wheel chair (or it is terribly heavy and does not fit in the back of our car and she cannot deal with getting in out van). Stop at the wellness office for a list of her meds for the doctor (easier than trying to remember).  Get her through the building to the front (only) entrance.  (Mom's apartment is literally the furthest in the building – top floor, end of the hall.) We then have to sign her out of the building – and we have to sign in as we run through the lobby coming in and then again when we leave.  We have found it easier to take mom to our parked car than try to get her in or out of the car in front of the building – curbs and sidewalk cuts are problems.  So we have to push her – uphill – to the parking area – either together or me as too hard for husband to do.  Then we have to get her into the car and stow her wheelchair.  Then the drive.  Then on the other end we have to park – where there is room for mom to get out into her wheelchair (we have to get her a handicapped permit so we can park in those spaces with her) and then get her into the building.  This last can be very easy to do – or hard – one building was on a hill with the building at the bottom of the hill and we had trouble finding the doctor's office – out and down hill, then back up hill – with both of us pushing.  Most of the doctors offices require one to sign in 15 minutes or 30 minutes before the appointment time or they cancel it.  Mom's lunch is at 11:45 am. Her dinner at 4:45 pm. If I make the appointment for 2:30  - it allows us to each lunch, drive out there, pick her at 1 pm and get her to the doctor – after she has eaten lunch.  Other than the “doctor with the office from h*ell”  she will be back at her residence, with the big wheels back on her wheelchair and settled in, in time for her dinner.  So 1:30 pm was a big problem.  We compromised on 2 pm.  

So now mom was going to have a problem with her lunch, husband was going to have a problem with his lunch – so I had a problem in general.  Then I had a thought.  I telephoned the doctor's office back and asked about moving the appointment to a different day.  Doctor would have plenty of time to her surgery and not rush us, husband did not have to worry about his stomach after lunch, and mom would not miss lunch.  First date offered was next Wednesday – my embroidery meeting and my only day out – no way.  We settled on a date in mid March.  Doctor's office happy.  Husband happy.  I had to call mom and let her know of the change.  I had been texting my sister as I went along in case she spoke to mom before I did, she could let mom know.  Mom is hard to reach, at least for me, by telephone.  By the time that generally I can call her in the afternoon – she is at dinner.  I figured that the best time to call was around 7:30 pm as that is when she calls me.  First time I left a message – but knew she would never get it.  I called another 4 times as time passed.  I went down to cook dinner.  Mom called,  “Did you call me?”  I explained.  “No, I never hear that there are messages.”  Huh, hear that there is a message, she has to look at the machine – and has being doing so for over 40 years.  Okay, go on there from there.  She remembered we suppose to go the next day and I explained about the change.  Fine with her.  We discussed it four times.  I also told her that if my sister called and said it was to be earlier tomorrow – that was old news and changed.  We did not get a call from her today asking where we were so apparently all went well with the change.  Mom is 90 and a year ago I would not question that she understood and would remember the appointment and the change,  but a year can make a big difference.

Next wonderfulness was our basement freezer.  We have a small freezer that we bought probably 30 years ago or more (it has out lived at least 2 refrigerators, probably 3).  We used to grow vegetables in our back yard in summer and would freeze the excess in this freezer.  Have not done so in at least a decade and it was being used for backup frozen vegetables and meat since, until about 3 years ago when we somehow switched to buy the food for dinner that day.  So it has mostly sat in the basement with some commercial frozen vegetables in it and a few other items.  Last year we used it when our refrigerator died and we had some items in its freezer.  It had about 4-5 inches of ice on the top coils.  Husband will not let me put frozen items at the back of the freezer in the new refrigerator – he read an article that the back needs lots of space for air to circulate – so I have (somehow) a smaller freezer in this refrigerator than our old and I cannot use about 1/6-1/4 of the space in it.  I figured I would melt the ice in the basement freezer so it could go back to being used – and since there was nothing in it as we used the last item stored in it about a month ago – this was the time to do it. 

I knew it would take a long time and would be messy. I had a plan.  I needed to remember to do this when we come home fairly early from running errands.  Today was the day.  We were home early and I would be making many trips to the basement at night to do laundry and could combine the trips down for both purposes.  When we came home I went to the basement and shut off the freezer.  I put in two large, deep baking pans – one on the right of one shelf and one on the left of the other shelf to catch the dripping water as I knew the bottom drip pan would not hold anywhere near enough and would be a mess to empty.  I grabbed lots of old used for junk purposes towels and spread them in front of the freezer.  I propped the door open, set an alarm for an hour and went upstairs to work.  An hour later – nothing had started – reset the alarm and back upstairs.  An hour later – still no melting, reset again and started to cook dinner.  After dinner while watching TV in the kitchen the alarm went off again. I went back down – goody!!  Two small puddles (dots) of water in one of the baking pans – it was working.  I went back to the kitchen – husband asked what I was doing.  I told him.  He had to inspect the situation.  He decided that what I was doing would never work.  He was going to use his heat gun.  Luckily he decided that was too hot.  We sat there for a couple of hours as he melted the ice with his hairdryer.  Dumping the baking pans and a couple of times the bottom drip pan into a bucket.  (I have done this before – just with a lot less ice – and knew that I would not be able to carry the baking pans or the drip pan to the sink without spilling.  Finally the last big piece of ice was loose and fell free.  After dumping the last of the water and ice into the basement sink he went upstairs and I dried the inside of the freezer. It is sitting with the door ajar to dry out before being plugged back in. 

Sooo, my post on doing your income taxes will be delayed until at least next week. 

THOUGHT OF THE WEEK -

Plans are plans  - until they go awry.  Whether the appointment has to be changed for someone else's convenience or needs or what you plan to do in the house needs to be done differently than you think it will  - and takes more of your time as a result, or have you plans to write something and other items come up which need to be written about first  - they go awry. 

One has to deal with the changes and see what can be done.  If nothing else – the appointment change and the change in how we had to defrost the freezer gave me something to write about and you get out of hearing about income taxes for at least a week!

REORGANIZING AND CLEARING OUT THE LINEN CLOSET - PART 2

Well the new layout on the towel shelf in the linen closet seems to be working.  It lays out so evenly and well that I could even label the front of the shelf if I wanted to help husband figure out which are the towels he likes and which he hates.  (He takes towels and after he starts using them he realizes that they are not the ones he likes.)

I am not sure if I have mentioned that among the other crafts that husband and I work at, husband does weaving.  He had always wanted to do this and a few years ago we found a floor standing loom that was small enough to fit in our living room, but large enough for him to weave scarves, shawls, table runners and the like.  This past September he bought a second one that is narrower and smaller to bring to events where he is selling his weaving to demonstrate.  He also has a much smaller loom that is a reproduction of a type used in earlier centuries that makes fabric tape used in clothing in the period.  (Remember Disney's “Snow White?  The ties across the front of her clothing would have been this type of tape.)  After a piece is woven it has to be washed to “set” it.  If he uses the dryer to dry the pieces they end up with folds that we have to iron to try to get out.  He uses large white towels to roll the pieces in to take down the wetness of them (similar to wringing something out so it is not dripping wet).  He bought a towel to use for drying himself that he hates and it has been in the linen closet taking up space.  I took it out when I redid the layout and brought it to the living room (which is the “loom room” mid January to mid December) for him to have it to use when drying pieces he has woven.

With the new layout  working and the removal of the above towel  and the two large ones mentioned last week – I decided to move the shelf below the one I worked on.  The two larger towels had been on that shelf.  Currently they are rolled up in a bag and will stored on the top shelf of the closet in a spot we cannot reach without a step ladder. 

The shelf below had our bed sheets, our spare mattress pad, and the 2 large towels and was jammed.  The sheets are still in a stack (we have 3 sets – one on the bed, one being washed, and the next ones to put on the bed, so the most in the stack in 2 sets of sheets.  The pillowcases hang below the shelf in a wire hanging shelf, like those below the first shelf.  There is a second wire shelf hanging with pillowcases from old sets of sheets - the sheets wore out, but the pillowcases are still good.  In addition to still being usable for sleeping, they are also good for putting needlework or cloth dolls that we have made to protect them when going to an exhibition.  The sheets have remained where they were.  The mattress pad is folded in thirds the length of them and then rolled up - for some reason this is the best way to store it.  Instead of putting it side to side on the shelf, I put it on the end of the shelf from front to back.  Fit perfect – okay, it did take a bit of pushing to get it in place. 

I then managed to fit a couple of spare shower towels between the sheets and the pad – they are still folded in quarters and are pushed to the back of the shelf.  I put our spare bath mat on top of these spare towels.  We have 3 “bar towels” that we use in the bathroom to wipe up things when we notice they are wet. Normally two of them are in use and I will rotate the three of them to laundry one while two are in use.  I put the third one of same in front of the spare bath towels/bat mat. 

Again, a shelf that seems to work great! 

Next I have to go through things on the wire hanging shelves on the inside of the closet door to get rid of stuff.  Husband tends to buy shampoos when he is not happy with the one he is using, not like them, and stick on these shelves – and they are not sample bottles.  I will toss out about 4 or 5 bottles of shampoo.  There are a variety of other items that have accumulated on these shelves that I will also get rid of.  Anything of his, of course, I ask before I toss.  I hope to have enough room on these shelves so boxes of bandaids do not have to be stacked on each other and fall down on our heads, as well as fit washcloths and guest hand towels on the shelves – or else they will have to be fit on one of the two shelves.  I might even be able to put the box of “ear swabs” right side up on a shelf – right now it is sideways and sometimes swabs fall out. 

THOUGHT FOR THE WEEK -

Little by little this is being accomplished.  If I tried to do it all at once it would not get done.  Try doing small bits of organizing when you can. 

This week I hope to defrost a small spare freezer in our basement – there is years of ice in it.  We have not really used it in awhile, but the freezer in the new refrigerator seems smaller than the one in the old one – and I am not allowed to put anything against the back wall of it as, apparently, that stops the air from moving correctly.