Foreign Financial Asset Reporting

2011 is the first year that information on foreign contracts, foreign financial accounts, or stocks issued by a foreigner has to be attached to your income tax return. If the foreign assets exceed $100,000 on a joint return or $50,000 on a single return on 12/31/11, the information on the assets has to be reported on form 8938, Statement of Specified Foreign Financial Assets. There is a $10,000 penalty if you don't comply.

Cash or Check Donations of $250 or More

In order to deduct a donation of $250 or more, you have to get a written acknowledgement from the charity. This can be an email, and it does not have to be attached to the tax return. Charities are required to give you a written acknowledgement for any donations of $250 or more given at one time. A cancelled check is not good enough for the IRS. Protect yourself by getting those acknowledgements.

Medicare

Medicare comes in the following 4 parts:
Part A: This is hospital insurance and covers inpatient hospital care, hospice and home health care.
Part B: Outpatient care and doctor services are included here under medical insurance. Individuals pay a monthly premium each month for this coverage starting at $96.40.
Part C: This covers medicare advantage plans provided by private companies which provide additional coverage such as vision, dental and hearing programs.
Part D: This is the prescription drug option run by private insurance companies.

The one thing that medicare doesn't cover that can end up costing a huge amount of money is long term care like at a nursing home or assisted living facility.

Applying for Social Security and Medicare

You should apply for social security benefits 4 months before you want to start the benefits. You should apply for medicare 3 months before the month you turn 65. There is a penalty of 10% of the cost of medicare part B for each year you delay enrolling.