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Low or No Social Security COLA

MoneyWise / Rob West and Steve Moore
The Truth Network Radio
June 25, 2020 8:03 am

Low or No Social Security COLA

MoneyWise / Rob West and Steve Moore

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June 25, 2020 8:03 am

The annual cost of living adjustment that affects social security benefits is designed to be an adequate increase for most of our seniors. But current oil prices and the COVID-19 crisis could seriously impact next year’s benefit levels. On the next MoneyWise Live, hosts Rob West and Steve Moore let us know how these factors will affect our nation’s seniors. That’s MoneyWise Live at 4pm Eastern/3pm Central on Moody Radio.

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At first glance falling oil prices in the cold with 19 crisis may not seem related to Social Security benefits. But a closer look shows they could have a serious impact on next year's cost of living adjustment every year in October, the Social Security Administration sets peers benefit levels based on the consumer price index. What will that mean in 2021 today kingdom advises president Rob West breaks it down for us and it's not good news that will take your calls on any financial concern or question. You have 800-525-7000 800-525-7000 times more in this is moneywise lock will rob the consumer price index is a measure of inflation and of Social Security benefits are paid to.

It should not mean that the annual cost-of-living adjustment or cola is adequate to preserve buying power for our seniors.

Well, that's the idea, but in practice it hasn't worked out that way. Especially this year with plummeting oil prices that's helped to keep the overall inflation rate low, but not necessarily in areas where seniors do a lot of their spending. So as a result, Steve. Some analysts predicted next year's Social Security cola cost-of-living adjustment that could be near zero and that will be an added hardship for seniors, for sure. Well, I would certainly think so hard to give us some examples of how this plays out.

I sure the consumer price index or CPI is an average measurement of inflation across all sectors of the economy so gas prices might be low. For example, but pharmaceutical and food prices art, so the average inflation rate might be lower or even nonexistent.

But that doesn't help folks at the grocery store or pharmacy, especially those already on a tight budget okay right will if the measurement used to determine Social Security: this isn't an accurate reflection of inflation for seniors.

Should there be something better while for some time now.

Elderly advocates have been calling for the Social Security Administration to use a different measurement altogether something called the CPI E being for elderly but that change would require new legislation, which Congress has not gotten around to. I will what's the difference then between CPI and CPI E. Yeah, primarily the CPI E is a better reflection of inflation in two key areas that affect seniors the most of that would be healthcare and housing Medicare premiums. For example, tend to rise rapidly, which may not show up in the average rate of inflation and that lowers the annual Social Security cola last year it was only 1.6%, down from 2.8% in 2019 and a year after year. Those shortfalls in cost-of-living adjustments really start to hurt net upright while absolutely over the last 20 years. Prices for things that seniors typically by have nearly doubled an increase of 99% Social Security cola's have increased benefits by only 53%.

So the result has been a severe decrease in the buying power of Social Security benefits down some 30% since the year 2000. And of course this year. The problem has been magnified by falling gas prices that drag down the overall inflation rate.

That, plus many seniors may be experiencing additional healthcare costs due to the coronavirus so it really Steve is something of a perfect storm. While I can certainly see that all right. Anything that can be done about this really think well I certainly wouldn't wait for Congress to act anytime soon. If you're a senior citizen, relying heavily on Social Security benefits. You have to take action. I would start by taking a hard look at your budget to eliminate unnecessary expenses.

That's always a good beginning place. If you haven't signed up for Medicare part D will want to look into that.

To keep prescription costs down and you don't have to go it alone on your budget, you can visit moneywise live.org and sign up with one of our volunteer coaches. There's no cost to accept possibly a small workbook and only for those who can afford that moneywise coach may find areas to trim in your budget that you might not have thought of their eager to help their committed Christ followers and other eager to walk alongside him again moneywise live.org right moneywise live.org scroll down a bit. You see a link for connect with a coach. Now what about folks who haven't reached the retirement years. Yet well even if Social Security cola's were adequate which they aren't.

It's been widely reported that the entire program will begin experiencing a shortfall by the year 2035. Eventually benefits will have to be reduced or more likely Congress will have to take steps to shore up Social Security either by increasing the payroll tax or that once again extending the full retirement age, which it done before all this means that the people still working. You simply can't depend on the government to supply the majority of your retirement income. Keep in mind it was only intended to cover 40% of retirement income. To begin with your calls next.

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Live your hostess from talking about: not RC not diet cola, but Social Security cola's and rub saying that initially when this was set up. The program was only intended to provide 40% of retirement income but yet today, retirees tend to be using it a lot more than just the 40% that's right. In fact, have seen recent survey Steve the chill half of retirees rely on Social Security benefits for at least 50% of their income and one in four depend on those benefits for nearly all of their income so that you don't really is critical that we are diligent in saving. That's why we recommend putting 10 to 15% of your working income in retirement plan. The earlier you begin the course, the greater the impact will be when you retire because of the compounding effect.

I would say that's only though.

Assuming you know you've got your basic budget in place, you're giving regularly. I would also say start with the emergency fund and paying off consumer debt and most importantly credit cards, but once the credit cards are paid off. Hopefully they don't exist in the first place.

But if they do pay them off. And once that emergency funds in place, then getting to that 10 to 15% for as many years as you can is going really put you in a position where you have the proper savings plus Social Security as it was intended to really fund your lifestyle and not that you know we want to just live a life of leisure in retirement is nothing wrong with some leisure but remember God's calling in your life doesn't have an expiration date of so what were talking about in retirement is saying.

Perhaps God's gonna redirect you in that season to something else were you have the most experience and wisdom to all that are in service to the Lord, and you may find yourself in a place where you physically can't work and because of all of those things we want you to be able to provide for your needs unnecessarily living a lavish lifestyle but covering your expenses and then being able to follow the leading of the Lord, yet great information Rob thanks and again if we can help you today as you work through these things. We love to try 800-525-7000 you have to admit the rep you must be like. I am reveling in these low gasoline prices in the great yeah it it's wonderful that we took a little road trip last weekend and I was excited when I got to the gas pump to see what it was you I was frustrating during all of the social distance thing and everybody was quarantining at home and we knew those gas prices were out there but nobody was driving to go okay well it's all things get better all around and we're we still have a lot of summer ahead of us. Let's go back to our phones or go to our phones for the first Lancaster Pennsylvania a great place to drive to hi Helen, how can we help you okay my question when I get my income tax here. I think I forgot on all.

I thought that my preparer had with all the girl living with me and she paid me rent for the month.

She was here that I don't know what to do about it. In my preparer said forget about it so I don't know when a case like that. Yeah, Helen's first of all, I appreciate so much your hard and wanting to render unto Caesar what is Caesar's, which is very biblical and I would certainly affirm your conviction that you need to report all income. The good news is you're not alone.

This happens very frequently and better, that you report it.

Then they come asking you about it and whether they know about it or not, it's still the right thing to do. It is fairly simple Helen to file what's called an amended return. It's instead of a form 1040. It's a form 1040 X.

It's available through the IRS's website@irs.gov. Used to be that you can only file paper versions. My understanding though that that the IRS is introducing electronic filing version later this summer of 1040 X, but your tax preparer certainly would know all about that, and you could give the additional information your tax preparer could find that file that amended return and you want to do that within three years of the original filing date and you want to make sure to pay the amount you owe. As soon as possible that's gonna minimize any interest or penalties on additional tax because they're going to make that retroactive back to when it should have been paid shouldn't be a lot but I would go and get that taken care of and if you use a tax preparer, then I would probably just asked that person to file that amended return for you, but it's not a big deal. It should be fairly painless and I think you'll feel good. Once you know it's bondage. Rob is a possible that the amount of money and Helen did mention how much but is it possible that the amount of money is so small that it really doesn't make a difference. But no, because if she file the tax return. To begin with.

This would be added to whatever income she had. So there's gonna be some tax due but depending on the amount it may be very small amount but it still was the right thing to do is to make sure you acknowledged and reported all your income, Helen will that make you sleep easier tonight. I know all I'm now what around $1200 now why paid $1200, no, no, because it would just be based on your tax rate your marginal tax rate so I would just mention that it's going to be a bit is probably a very small amount but I would mention that to your tax preparer. Depending on how much income you're earning know where it falls based on the standard deduction could be anything from not really owing anything to a very small amount but the bottom line is you just want to make sure that what you reported is accurate and your tax preparer can tell you in just a few seconds with that's going to be Helen for Hope that helps you. Thank you very much, and rest easy.

This will not be a big deal unless of course Caesar comes knocking on the door with his troops looking for that money.

Not like the more he doesn't okay all right up to Pennsylvania in the Pocono Mountains how beautiful Isabel. How may we help you as I spent thank you Karen and I will you know Isabel, I'm not a big fan of pulling money out of a retirement account you with a 401(k) you can borrow from it. I don't really like that because if you separate from the company. It's all going to be considered a distribution unless you pay it back in full and that's gonna probably carry with it a penalty.

If you lesson 59 1/2, plus it will be taxable, not to mention the fact that money is no longer working for you for your retirement which was its intended purpose with an IRA. There is not the ability to borrow so you have to take the withdrawal in the you have those same potentially penalties but certainly a tax due. So you know what I would prefer to see you do is leave that money right there. Remember, you know, the whole idea behind retirement savings is that it works for you over a long period of time.

And so, the extent to which you can keep that properly invested according to your goals and objectives.

This can give you the greatest ability to have that money there for you when you need it in retirement.

So then what you do with the car loan and the student loan debt.

Well, I think the key to paying off any consumer debt, whether it's credit cards or car loan or student loan debt is to limit lifestyle so you gotta go back to that spending plan. Look for areas to cut back if you need some help in some suggestions. That's where money was coaches can help it moneywise.org and you want to try to free up margin beyond your fixed and discretionary expenses. That is surplus on a monthly basis that can be used in excess of minimum payments toward debt reduction and guilt. Beyond that, I think you're the only opportunities are with student loan debt. If it's a federal loan you could look at income-based repayment options. If your daughter has those options available. You can look at loan forgiveness options, but I don't like the idea pulling out of retirement accounts, except as an absolute last resort.

I'd rather you just try to pay them out of surplus and just try to stay focused on getting them eradicated just as quick as you can.

Doesn't make sense though I will know that I had not yet did you assume responsibility for both of these verses. Did you tell your daughter you were going to pay off the student loan debt initially was that the plan will going out to shirts. Well, I certainly appreciate your hard. I think the idea behind it is she's invested in her education. Although we prefer college graduates graduate with as little debt if if possible. No dead just so they set themselves up and not being strapped as they get started. Good news is, hopefully she'll have marketable skills that she could earn a good income and she can pay this back in full. If you want to help her. I think perhaps you know you could do that but I'd rather you not use retirement money to do it that some of the most expensive money you can get your hands on.

Just because the reasons we've said so I'd start with the family budget. See if you can do it out of that and one option is always to sell the car, look for less expensive, thanks so much for your call today. This is moneywise live taking calls at 800-525-7000 to make you Rita Marianne were coming your way.

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Look at some of those verses and apply those verses practically spiritually obvious. Most obviously so we can help you. It's 800-525-7000 to make it. We appreciate your patience.

Thank you very much. And how can we help how, thank you for listening to me. Can we appreciate it. Will there will all go my more for all our yeah well I like the idea of not thinking about it as one or the other.

I like the idea of thinking about it as doing both of you know your money may have the greatest impact financially by paying off the debt first.

But you know starting the habit of saving establishing a way to deal with emergencies by fully funding your emergency fund, which keeps you from having to go back into debt is important also. So rather than doing one or the other exclusively.

I like the idea of trying to solve for both at the same time.

But let's run through some of the numbers give me a rundown of the debt that you have in the savings the reserves that you're talking about potentially pulling from and what you have saved up about and have about loan and car loan or nightlight okay so you said 77,000 student loans.

You got 19,000 that you own a car loan and you got 2000 saved and so your currents on the student loans in the car loan when you get to the end of the month after the bills are paid after you paid the debt service on the student loan in the car loan do you usually have anything left over so okay. All right. Do you have a budget that includes making those student loan payments. The balances want not way I like right now. No okay well I think that's really the next step for you is to really do a deep dive into that spending plan and make sure it includes whatever the payments are going to be to the student loans. Now that they're coming out of forbearance go in. We've got get an accurate picture of everything that's in the spending plan.

The discretionary the fixed, even some of those nonrecurring expenses that maybe don't come every month but come a few times a year quarterly and get all of that in there and figure out what you need to do to create some margin that is money over and above your expenses so that you can continue to fund that emergency savings like for you to get up to three months expenses and service the debt.

Once you get to the three months expenses that would probably want to continue to send a little extra to the student loans to try to tackle that positive additional savings. Once you get three months and really focusing on trying to get that 77,000 down right now it's continuing to climb. We need it going the other way she can eventually pay it off completely.

I know it's not easy and that's where our coaches can help Tamika so moneywise live.org connect with a coach and see if that doesn't give you some extra incentive to get on the right track and when we come back Rita in Springfield Missouri has a recommendation for us stick around investing is more than just returns.

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Townhall session in Green Bay starts but is higher that I'll pick up 299 points, but NASDAQ at 107 in the S&P picked up 33 this is SRN use. Check this out online. You might want to do that.

If you have just live.org and you'll find lots of free resources there to help you budget your investing some biblical principles that you may want to factor into how you handle your money and lots more as well. Of course, also radio archives from the past year. In case some programs you Mr. some subjects you'd like to look up again moneywise.org Springfield, Missouri hi Rita, that your question or comments for Rob West today on their prescription need to. They are part D plan their prescription plans every year because the formulary for every company can change every year and I can move prescription from one peer to another greatly affecting the cost and if they can check that every year that will help them on deciding not just check that compare their part D plan to keep out one place that they can use to compare@prescriptioncostareasked.com. The name of your prescription and it will show you the constant that in various locations and you can see the hot I have been able to save over $100 on a prescription by looking at that and paying cash instead of going to my insurance company that's free and available to everyone. Yes. Well, this is really great information. This idea that we can be an active shopper every year and find the best coverage for your needs saving you thousands of dollars. You know this is obviously been one of the significant expenses and continues to be for folks in this season of life. My understanding is nearly a dollar of every five dollars euro goes toward outpatient prescription drug costs, mostly via the part D coverage so of the Medicare dollars, a significant portion is going toward the part D benefit. So this is a real blessing and I understand based on the notes I'm seeing here Rita that you help folks at your church. Do this in some of them are save as much as $1000 a year. Is that right like you're planning without comparing one guy I dealt with here at a prescription that she breathtaking and under her current plan with going to go because they had changed here on without her realizing that and for 90 days after hundred and $42 oh no that's not what I can. I think you will make checking that are asked. I was able to show her how she could get that same medication at the same pharmacy for $24. My pain well that we don't know because you're happy with it. That next year to have someone check you well.

It's such a great word of encouragement. You know you mentioned the work formularies that may be something that folks don't recognize but here's the bottom line. These plans change their list of covered drugs and the drug costs each year and so being able to change your plan, perhaps to get better coverage or the same coverage for the same medication from one year to the next may require a change in plan and that's what Rita is referring to. Thank you for calling. What a ministry to the folks in your church, your providing Rita. We appreciate all say. Who would've thunk it that Rita is a cost-saving angel sent from above to our radio program to help our listeners save dollars. Let's write fantastic. We had no that's the great thing about a call-in radio program. We get a chance to talk to people all across the country.

Many of them know a whole lot more than we do have that you give us a call list at 800-525-7000 Tinley Park, Illinois Marianne what he have for us all. People are tired.

My night went about how Their money away from my children to get my truck when I got the remainder government money so I thought maybe I should security amount every month and I'm getting from the trust.

Every month okay I just wonder what your opinion in Claremont my retirement age for the charity early appreciate your desire to maximize the inheritance.

The money that you're passing on to your kids, but I would think about a couple ways.

Number one is you are the steward of those funds while you know they're here and for your benefit.

Right now, I realize governed by the trust documents and the provisions in it, but it's for your benefit until your death, at which point it will be passed on, and so you're using it appropriately. Number two is you could make the case that you're actually going to save money in the long run.

In in the trust by waiting until full retirement age to take your benefits because you're going to be able to take a larger amount for the rest of your life that will then offset the money that perhaps you would need to draw from the trust so I kind of like the idea of you delaying that until full retirement age. Locking in that higher amounts and then perhaps it would give you the ability to not take as much down the road from the trust because remember, your expenses are probably going to be rising.

You know with the rising cost of healthcare, especially if you need more significant or advanced care down the road like no assisted living or nursing home care, in-home care, something like that.

So I think finding the balance therebetween.

Maximizing your Social Security benefit and then perhaps not having to rely as much on the trust.

Down the road I think make some sense to me but I wouldn't know any guilt about using it now because that's the purpose for it and and you're certainly using it for that reason doesn't make sense. Your hero will help other people are. You're very welcome. Lord bless you and thanks for calling today. Thanks. He rubbed his quick email from Rose. She says a credit card company charged me $20 for an excessive balance fee if I cancel that card will it hurt my credit score. I'm 74 years old and don't have any plans to buy a house in a car or anything like that. Yeah well the excessive balance, fear, or over limit fee is one of the key ways that the creditor companies make money along with interest. Of course, and late payment fees your credit scores already taken is probably a slight hit by the fact that you are at the limit.

Anything above 30% debt to limit ratio is going to start to pull your score down to the fact that you're up there that's not going to change whether you if you close the account. So I think you know assuming you're not using that car go and get it closed and then that list is going to focus on trying to limit lifestyle get as much money as you can going to pay that off is what concerns me more than your credit scores. The interest that you're paying so I look to see that gone sooner rather than later that we appreciate that email rose if you'd like to send Rob a blindside in an email make a brief address is questions@moneywise.org. Do you know if you have enough money house. Do you know how much is enough.

If not, one blue can help with this book. Master your money a step-by-step plan for experiencing financial contentment and how to save and invest and give wisely create a long-term financial plan and how to get out of debt. Find it all in master your money by Ron blue available when you click the start button moneywise.org and I'm here to help you understand God's purpose for your life to the eyes of a layman larger Bible study and prayer life working out for you and the word nominees every day like you know we should be or might you be a little too busy stay diligent in that regard. Right now, open got understand well welcome to the club. You have lots of company. But that doesn't let you off all of us find the time to do the things we want to do and we should want to stay close to God above everything else that should tell you something about yourself. But I have great news. There's a simple solution. Start sharing your faith in your Bible study and prayer life will explode with purpose and excitement living the great commission enriches you as much as it reaches the last.

Your job is ignite revival outside the walls of your church by moving everyone every day closer to Jesus. You need help doing that. Go to RTW.com Billy Graham talks about these thousands of people living with just things of this world will last forever is glorious is precious blood of Christ doesn't think we would start personal relationship with Jesus Christ more than a website with… Find peace with God, the Billy Graham evangelistic Association agreement you more about our money than most of us imagine Jesus is more about our use of money and possessions and about anything else, including both heaven and hell in managing God's money on the radio breaks it all down in a simple, easy to follow format that makes it the perfect reference to look you're interested in gaining a solid biblical understanding of money, possessions and eternity managing God's money is available when you start button moneywise.org. I like going to Shreveport, Louisiana. We welcome Josephine Josephine were so glad you called today how can we help what we told you I would not get in. The crowd retirement board with that with my career with lower hits. Retirement security tell consequently at the back 12 years and I just wanted to know if that is scaling nothing's changed. Josephine, however I would still look into it.

What you're talking about. There is this government offset the effects benefits paid by the Social Security Administration in your corrective reduces the spousal Social Security retirement benefits. In situations where the spouse did not pay Social Security taxes on their employment earnings because they were like you said teacher had a pension or something like that, but often times it will reduce let's say two thirds but there would still be something available.

It may not reduce it entirely. So I would check with your Social Security office, I'd call them their offices believe are still close to the public but they are helping folks by phone or the web so their website SSA.gov SSA.gov or 800-772-1213 800-772-1213 and just inquire about your specific situation and see if perhaps there's some benefit that you are entitled to, and if so, you'd want to apply for those survivors benefits, probably because you know in this case I don't think it would be retroactive so you want to try to get to the bottom that you may find that what you understood is exactly the case. But there also may be a partial benefit that you are entitled okay Josephine is that makes sense to retail store. He worked lite up the party. Karen even though I was thinking We Can Let Bob That I Can Have Thought He Caught Okay.

Check Back Hundred Dollar Thinking You Know What It Got. Okay, Very Good. Yes, It Could Be That You Are in Fact Receiving All Your Entitled to, but It's Worth a Phone Call or Visit the Website Just to Make Sure Josephine. We Appreciate It. Bless You, Thank You so Much. Columbus, Ohio Time. We Know You Been Holding a Batch Hate to Have You There in the Shadows. How Can We Help You Sir I Will and Large and Long Year or That I Won't Be Able to Get My Money Back. Will I Do Think You Gotta Really Count Because There Are Many If You Live in an Area with High Energy Rates and a Suitable Solar Rating You Can Afford the Initial Investment. It Can Be Worth Installing Those Panels Because of the Tax Break and Because of the Reduction in Costs over Time, but You Do Have To Be Able to Recoup That Initial Investment. My Understanding Is That It's It's Almost 8 Years Is the Average Time It Takes for a Solar System to Pay for Itself, but If You Can Get beyond That You Can Enjoy Some Lifetime Savings That Really Could Be to Your Benefit. In Fact, Riches Doing Research for Us Today Was Actually Looking at the Numbers for Ohio and Looking at the Average Cost per Watt, and I Think It Came out about Seven Years, Eight Months Is the Average Time in Your Area to Recoup That. So If You Do Have a Potential Move on the Way, Tom. That Would Give Me Some Pause about This Just Because You've Got to Be Able to Afford It Upfront and Then You Gotta Wait It out. In Order to Make This Pay for Itself an Interesting Website Just for Fun Is a Website That Google Has a Pronounced Called Projects Sunroof Just Google That Project Sunroof You Put in Your Home Address and It Will Actually Use the Google Earth Imagery to Analyze Your Roof Shape of the Weather Patterns in the Direction of Your Home and Actually Give You a Personal Solar Analysis.

It's Just Interesting to See You Based on the Amount of Usable Sunlight Hours You Have per Year and You Know How Much Savings You Could Get, but You Know I Think in Your Situation Because You Have a Potential Move, He Probably Does Not Make Sense. I Would Check with the Realtor on That.

I Would Venture to Say No. Just Because A Lot Of People Don't Really Understand the Full Benefit of That.

But I'd Be Curious to Have a Real Estate Professional Weigh in on That Just Because Some of Those Upgrades Can Tend to Be Seen As Nice to Haves, but Perhaps You Know They Don't Know If You Can Quantify the Annual Savings Moving Forward and Make That a Feature of the Sale Will Certainly You Know, There Could Be Some Value There. But Whether or Not Somebody Would Be Able Willing to Pay the Full Cost of What It Took You to Put It in in Anticipation of the Savings over Time That You're Telling Them They'll Realize That Know They May or May Not Be Convinced of. I Think Perhaps Is a Stretch, but I Want a Realtor to Weigh in on That and so Perhaps That Would Be a Good Phone Call to Make Tom Wish the Best to That Effect.

Let Us Know How It Works out. If You Decide to Go This Route in a Rut. I Have Some Friends. You Probably Do As Well. I Have Some Friends in Phoenix, Tucson Us Just Forgot the Name of the City in Texas, but They All Have Solar on Their Homes. Everyone in Their Neighborhood Has Solar on Their Homes and Their It's Kind of Expected in Your House Might Lose Value If It Didn't Have It, but It Would Be a Different Deal in Northern Parts of the Country. I Was Right. And That's Why It's so Dependent upon Where You Live in the Amount of the Hours You Have per Day of Five Real Sunlight and the Potential Solar Savings That You Could Realize Speaking of That II Know You Taking Some Days off My Sweet Rob Just Sunblock on to Remind You, but Your SPSS PFD, Whatever That Is, Using the Now. I Think It's 100. I Just Put on As Much As I Can Get Ever-Growing Family Week Should Be Great Looking Family Can't Tell Her We Will Be Looking for a Report That Okay Lakewood Ohio Catherine What's on Your Mind Calling Because I Know in 2018 and a Couple Agreed to Rent Me, but It Was More of a Cost Sharing My I Didn't Make a Profit on Them but They Did Meet Monthly like the Bell and They Paid Start to Go Towards the Mortgage As Well. So My Tax Guy Said That Because I Didn't Know Little More Than They Did Every Month like I Get in Three Parts. I Paid More Than 1/3, and Then They Paid in on Their Part Because I Didn't Make a Profit and It Was More of a Cost-Sharing Situation That I Didn't Have To Clean It or Placed It on My Tax Return and I Wouldn't Owe Anything That Was Done Correct Yeah Well I'm Not a CPA, Catherine, but What You're Describing. Makes Sense to Me and so I Would.

I Would Trust His Professional Opinion on That. But That Just Logically Makes Sense to Me That You Really Didn't Have Any Income There It Was in Fact Cost-Sharing. There Was a Net Cost to You for the Entire Thing and so There's Really No Income to Report. In Fact, You Know You Were Losing Money, so to Speak. Although You Could Provided for Your Housing. So I Would Say That I'd Probably Go with His Professional Opinion on That Yellow You Could Make a Case That It Is a Type of Income That Offset Your Cost of Living Even Though It Was Shared so It Got the End of the Day If You Want to Make Sure You Know You're Really Have Some Good Counseling.

I Guess You Could Check with Another CPA Just to Get a Second Opinion Because Certainly Want to Do What's Right and so If You Want to Check There and Lakewood Go to Moneywise Live.org.

Click on Connect with ACK and Look for a CK in in Your Area Who Is in the Tax Area Just to Double Check and I Think That Would Certainly Give You Some Peace of Mind to Catherine. I Did Sell the Property and I Did Make a Profit on Sean and but It Probably Wouldn't Have Any Ramifications for Because I Pay down the Mortgage so Much Because They Help Pay Some of It down but I Got All That Money Back When I Sold That so That Probably Wouldn't Mean That the Income Right but It Wouldn't Matter That They Help Pay That Mortgage. Well, You Know, They're Helping You Pay the Mortgage down. I Love That That Starts to Sound like Income to Me.

Just Because You're Taking That Money That They're Providing You As Income and Then You're Using It and Redirecting It to Reduce the Principal of the Mortgage so I Would Get a Second Opinion on That. Just to Make Sure That That's Being Done Properly, Because It Sounds like You Know That May, There May Be Some Offsets on That in Terms of Legitimate Expenses You Can Write off against That, Given That Your Essentially Renting a Room to Someone, but I Would Make Sure That That Is in Fact Done Properly in the till You've Reported Everything Exactly What You Should so I Encourage You to Go and Get a Second Opinion on Catherine Again Were Glad That You Called Today with Hope and Information Helps You Think so Much You Know We Always Are Looking Not Just to Help You Balance Your Checkbook but to Help You Find the Peace of God Were All Looking for Peace and the Bible's Word Is Replete with Verses That Encourages Encourage Us in That Direction. I like Philippians 44 through Seven Don't Be Anxious about Anything, but in Every Situation, by Prayer and Petition with Thanksgiving Present Your Requests to God and the Peace of God, Which Transcends All Understanding, Will Guard Your Hearts and Your Minds in Christ Jesus Moneywise Live Is a Partnership between Moody Radio and Moneywise Media.

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