Tuesday, February 5, 2013

Taxes and Riding

Yesterday started out with such promise.  We did a fun ride out towards Sweetwater with Don and Jamie.  Here we are in front of a saguaro.  He looks like he's been chewed on a little bit.

We stopped at a park for a bio-break.  Look at the little palm tree, he died during the cold snap we had.  Many of the palm trees in the park are really brown.

Then we picked up the mail. May (Jim's Mom) has a long term care insurance policy.  We received a 1099-LTC for her. Apparently a person's LTC insurance benefits can be taxable.  So, I looked up the instructions for IRS Form 8853 as instructed by the 1099.  The instructions contain this sentence.
  • Generally, do not include on line 24 any reimbursements for qualified LTC services you received under a contract issued before August 1, 1996. However, you must include reimbursements if the contract was exchanged or modified after July 31, 1996, to increase per diem payments or reimbursements.
May took out the policy in 1991, so we don't have to report the payments.  However, we must send in a Form 8853.  So what do I put on the form?  My H and R Block software knows nothing about a 1099-LTC.  The IRS has very little information about it.  I sent AARP a question about this, they don't discuss Form 8853.  Hello?  Who is the AARP demographic?  OLD PEOPLE,  many of whom are receiving LTC benefits.  This is giving me such a headache.  My next step is probably going to be calling the IRS on the phone.
Today was better.  We rode the Camaro Trail (named for a burned out car) at Robles.  Here is Jim putting on his new knee pads.  These are so good.  They're comfortable, they are not hot and they're good.  I rode well today, soon I will be able to clean Camaro, then it will be on to something else.

The weather today was perfect.  Low 70's, light breezes.  After riding Jim washed the mountain bikes, they were filthy.  Unfortunately, the GPNW will be sending us more of their crappy weather.  Thank you GPNW!