The American Spectator also supposedly found the Loch Ness Monster. Image from Wikimedia Commons.

The American Spectator, a conservative political journal, has been taken to task in the media over a story it ran about the health care reform bill. The American Spectator reported a Health and Human Services report indicated the health care reform bill would be economically harmful, and the HHS report was quashed by the staff of Kathleen Sebelius. The journal seemed to indicate the White House willfully disregarded the idea the bill would run up huge tax debt to pay for health care.  The American Spectator report was taken to task for being completely unfounded.

American Spectator blasted for spurious source

The article in question ran Monday, April 26, on the American Spectator website. It asserted that an anonymous source revealed that the Department of Health and Human Services had a report that was stifled before the vote on the health care reform bill in March. The claim is that Sebelius’ staff refused to review it and intentionally neglected to do so.

Putting words in anonymous mouths

The anonymous HHS source said “The reason we were given was that they did not want to influence the vote” and that publishing the report before the vote was “actually the point of having a review like this, you would think.” The source wasn’t named, but the American Spectator mentioned the report was conducted by the actuary of the Medicare and Medicaid office.

Medicare and Medicaid Chief Actuary sounds off

According to ABC News, the chief actuary for Medicare and Medicaid indeed had something to say.  Richard Foster, Chief Actuary for the Center for Medicare and Medicaid Services, blasted the report by the American Spectator as being completely bogus.  “I don’t know how that rumor got started,” he said, “but it’s completely unfounded.”

Richard Foster and the real report

The Spectator failed to mention that Richard Foster received the bill three days before it was voted on, nowhere near enough time to study it, or for the alleged report to have been compiled. Foster did submit a report that indicated the bill would be unsustainable due to costs. However, the report wasn’t published until the April 22, a month after the Office of the Chief Actuary actually received the bill for analysis.

Shock and awful reporting

There was enough inflammatory rhetoric about the health care reform bill without making anything up.  (The death panels thing was a real gem.) What is certainly troubling is that the government would pass such legislation before an economic analysis could be completed before voting on it.  It is also troubling that the bill would mandate purchasing insurance, which would be delivered by private insurers being paid with subsidized funds.  Wait a minute – wasn’t the insurance industry supposed to lose money?

Puerto Rico statehood is a hotly debated issue in and out of the Commonwealth. Image from Flickr.

UPDATE – April 28 – The U.S. House of Representatives has passed HR 2499, the bill calling for a vote on Puerto Rico statehood. HR 2499 passed 223-169 and now moves on to be considered by the Senate.

The U.S. Natural Resources Committee has moved to bring HR 2499, a bill regarding Puerto Rico statehood, to the house floor. HR 2499 is not directly a vote for Puerto Rico statehood, but it does require a vote to be taken in Puerto Rico. Statehood is one of the possible outcomes of this vote. So why is Puerto Rico statehood such a contentious issue? It has something to do with tax debt, something to do with autonomy and a lot to do with questions of representation.

The history of Puerto Rico statehood

The history of the question of Puerto Rico statehood goes back many years. While Puerto Rico was first colonized by the Spanish, it became a United States colony in 1898 during the Spanish-American war. In 1900, the Foraker Act created a civilian government, separate judicial system and nonvoting member of the United States congress. In 1917, all Puerto Ricans became U.S. citizens. In 1947, Puerto Rico was officially made a commonwealth – not quite Puerto Rico statehood, but not an independent nation. Instead, residents of Puerto Rico are U.S. Citizens without voting representation in Congress or the necessity of giving instant money to the IRS.

HR 2499: A vote on Puerto Rico statehood

HR 2499 is a bill in the House of Representatives that calls for the fourth plebiscite – national vote – regarding potential Puerto Rico statehood. The other three plebiscites held have not come out strongly for or against Puerto Rico statehood. The pro-statehood and pro-commonwealth parties in Puerto Rico have about equal support, and the pro-independence party has about 5 percent support. HR 2499 would create the first congressionally-sanctioned plebiscite about Puerto Rico statehood.

The Puerto Rico statehood vote

There would be two votes if HR 2499, the bill raising the question of Puerto Rico statehood, is passed. First, a vote will be held on the question “Should Puerto Rico maintain its present political status.” If the majority of votes are “no” on that question, a second vote would be held. The second vote on Puerto Rico statehood would actually offer three options:

• Independence – breaking all ties between the U.S. and Puerto Rico, creating a separate nation
• Associated Sovereignty – eliminates the U.S. citizenship and Territorial Clause controls of Puerto Rico, but maintains ties with the United States
• Puerto Rico Statehood – makes Puerto Rico the 51st state of the United States, with six congressmen, two U.S. senators and eight presidential electoral votes

There are many good arguments both for and against Puerto Rico statehood. Some say Puerto Rico statehood would offer equal representation to a group of people who are subject to federal laws. However, others argue that Puerto Rico statehood would break up the unique and balanced system that has developed over the last 50 years. What do you think?

Sources:

HR2499.org
PR Statehood.com
No Puerto Rico Statehood.com
Wikipedia

No, the new iPhone prototype isn't this big. But Gizmodo says it has features that should please the fans. (Photo: Flickr)

So a tech blogger walks into a bar and finds the next iPhone prototype. Stop me if you’ve heard this one…

Seriously, Gizmodo may have gotten the serious scoop on the rest of the tech journalism universe with a fortuitous discovery of what appears to be a prototype of the next iPhone (iPhone 4G?). A Gizmodo reporter actually found it in a Redwood City bar. After checking with Apple-connected John Gruber of Daring Fireball, Gizmodo discovered that Apple had lost a prototype and was “very interested” in getting it back. Whether they were ready to use payday loans to sic Sherlock Holmes on the case is unclear.

An iPhone prototype in 3GS clothing

On the surface, the plastic case of the iPhone prototype looks more or less like an iPhone 3GS. However, there are numerous details that make this new iPhone something quite different:

• Front-facing video camera in addition to a back camera with a flash and larger lens
• Micro-SIM – more secure, more storage, more allowable connections. This would be the first use of this tech in a U.S. cell phone
• Higher-res display (exact numbers unclear so far)
• A second microphone port and second volume button
• Metal buttons
• A flatter, more squared-off design
• Higher-powered battery… 5.25 WHr (watt hours) at 3.7V, compared with 4.75 WHr in the iPhone 3GS

New iPhone or red herring?

Gizmodo believes this new iPhone is a real discovery for a number of reasons. First of all, it was running the iPhone 4.0 operating system before that OS was even announced. Second, the iPhone prototype was remotely killed before Gizmodo could dig any further into the OS. When connected to a Mac OS X system, the device was recognized as an iPhone in both Xcode and iTunes, but no firmware updates were available, which indicated to Gizmodo that this was an unreleased unit. According to Gizmodo, the fact that the Mac OS X System Profiler reported it as an iPhone in restore mode is consistent with the phone having been “remotely wiped.”

The proof is under the hood

The internal components are Apple-labeled and fit together well inside the case. If this were 3G or 3GS parts in some modified housing, Gizmodo claims the parts wouldn’t fit so well. Thus, they feel it was designed for that case. Speaking of the case, it’s thinner than the 3GS, but slightly heavier (perhaps because of the metal buttons). However, the design appeared to be somewhat less sleek than consumers are used to with Apple products. It’s boxier and kind of ugly (like tax debt), whereas previous iPhones have had more curves. This could be chalked up to this iPhone being a prototype, however.

What this could mean for consumers

This summer, the next-gen iPhone is going to be announced. If the iPhone prototype discovered by Gizmodo is any indication, people waiting to upgrade may want to take the plunge. Front video cam, a better back camera, better battery and a second microphone for better voice clarity address some of fans’ major concerns. Sexy up the case and Apple may just have a deal.

(Photo Credit: http://www.flickr.com/photos/mwilkie/ / CC BY-SA 2.0)

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If you can't complete your tax return, or pay your taxes, by April 15, you will need to file a tax extension form. Image from Picasa.

Tax day is quickly approaching, and if you need extra time to complete your 2009 federal taxes, you will need to submit a tax extension form 2010 to the IRS. There are two types of an IRS extension form – one that extends your filing deadline, and one that extends your tax resolution deadline. Make sure you file the right tax extension form with the IRS by Midnight on Thursday, April 15.

IRS extension form 4868 – extend your tax deadline

If you, for almost any reason, need extra time to complete your taxes, then you will need IRS extension form 4868. The IRS extension form generally gives you an additional six months to file your taxes. However, IRS extension form 4868 still requires taxpayers to pay their estimated tax debt. If you file IRS extension form 4868 without paying what you estimate you will owe in taxes, you can still be charged interest and penalties on the amount. If you file tax extension form by April 15, you will automatically have until Oct. 15 to file a completed tax return.

Special rules for tax extension form 4868

If you are living outside the U.S., are filing a married-filing-jointly return, or are serving in a combat zone, tax extension form 4868 has special rules. Specifically, an automatic two-month tax extension is allowed for U.S. citizens or residents who are living outside of the U.S. or Puerto Rico. Married couples who are filing a joint return only need to file one tax extension form 4868. Members of the military have up to 180 days after they leave a combat zone to file their taxes.

Filing a tax extension form to extend payment time

IRS Extension form 4868 can be used only if you will be paying what you estimate in taxes by April 15. If you are not able to pay all of your taxes at the time you file your return, you need to file a very different type of tax extension form. One of the four tax extension form types might be used. Unlike tax extension form 4868, the IRS tax extension forms that extend your time to pay are very closely scrutinized and not automatically granted.

Tax extension forms to extend payments

There are four types of IRS tax extension forms that will help you extend the time you have to pay the IRS before they charge you penalties that may require you to get a personal loan.

• Use IRS tax extension form 1127 if you are asking the IRS to postpone payment of the full amount of your tax debt. If you can pay the full amount in one chunk, just not by April 15, file this tax extension form.
• Use IRS tax extension form 4768 to apply for a tax extension on filing or paying estate taxes
• IRS tax extension form 9465 is the form to file if you need to request an installment agreement from the IRS. You do not need to file this form if you set up a payment plan through the IRS website. If you can pay your full tax debt in 120 days or less, call 1-800-829-1040 – they may be able to help you avoid the fees of setting up a payment plan.
• There is no official tax extension form if you do not qualify for a tax installment agreement or tax postponement. However, IRS Publication 594 outlines the IRS collection process and your rights and responsibilities during that process.

The Laffer Curve explains how tax income can go down when tax rates are raised. Image from Wikimedia Commons.

The Laffer Curve is an graphic representation of the theory of Taxable Income Elasticity. First proposed by Jude Wanniski in the 1970s, the Laffer Curve is named after Arther Laffer, a supply-side economist who Wanniski based his work on. Translation for the rest of us: The Laffer Curve tells the government how much money it can charge in tax debt before revenue starts going down.

The math behind the Laffer Curve

For those of us who don’t have degrees in math or theoretical economics, here is how the Laffer Curve works. It is a theory of economics that states taxpayers will change their behavior based on taxes. For example, at 0 percent tax, taxpayers will be motivated to earn as much money as they can, but the government receives no money. At 100 percent tax, the government will also receive no money, because there is no motivation for taxpayers to earn money. Therefore, the ideal tax rate for government is somewhere between 0 percent and 100 percent. Usually, this is a percentage represented on the graphic Laffer Curve as 50 percent, but that is not necessarily the ideal tax rate. Some studies have put the ideal tax rate at anywhere between 30 and 40 percent.

How the Laffer Curve affects U.S. policy

The Laffer Curve was first proposed in the 1970s. However, U.S. taxation policies have often made use of the underlying theory. In 1924, Andrew Mellon made the argument that by lowering the tax rate, the government would bring in more money. The top income tax bracket was reduced from 73 percent to 24 percent between 1921 and 1929. In that same time period, income tax receipts rose from $719 million to $1 billion. Reganomics in the 1980s and the Bush Tax Cuts of the early 2000s also had a very heavy basis in the Laffer Curve theory.

Arguments against the Laffer Curve

Like most economic theories, the Laffer Curve does not exist in an economic bubble. Income tax is supposed to function as a small loan from the taxpayers to the government to make use of the economy of scale. Many historians point out that at near-100 percent tax rates, countries such as Russia were able to maintain a productive economy. Progressive taxation practices also complicate how the Laffer Curve would be calculated.

Before most legislation is passed, the CBO has a chance to review it. Image from Wikimedia Commons.

When any bill that affects the federal budget begins to make its way through Congress, it makes a stop that, more often than not, the public does not see. The Congressional Budget Office is an independent, non-profit governmental agency that reports to Congress, but is not controlled by Congress. The Congressional Budget Office reviews the estimated effects of all legislation – saying if the legislation will require the government to borrow money, be budget-neutral, or save money. The CBO report can make or break legislation – and the CBO report on healthcare has put an unusual spotlight on this office. So how does the CBO work, and what does the latest CBO report on health care say?

How does the Congressional Budget Office work?

The CBO was created in 1974 with the passage of the Congressional Budget and Impoundment Control Act. The Speaker of the House of Representatives and President pro tempore of the Senate jointly appoint the director of the CBO for a four-year term. It is the job of the CBO to issue periodic reports about fiscal policy, to provide projections about the current budget, and to analyze the effect proposed legislation would have on the national budget and national debt, as requested by members of Congress.

To this end, the Congressional Budget Office employs an army of accountants and fiscal analysts who study everything from tax debt to private money lenders. The CBO was created to be non-partisan and independent of Congress, so the reports it issues would not be as easily altered by the political maneuvering in Congress.

The CBO stance on health care reform

The Congressional Budget Office does not officially take political stances. Instead, it provides objective financial analysis related to the bills currently in Congress. However, the CBO is allowed to state facts as its reports see them. On the CBO Health wesbsite, the header states:

The federal budget is on an unsustainable path, primarily because of the rising cost of health care and the aging of the U.S. population.

As reported by the Washington Post, the most recent CBO report on heath care – which is due to be officially released later today – indicates that the reconciled Senate health care bill finds that that particular bill would cut the U.S. deficit by $1.3 trillion over 20 years, and would cover 95 percent of U.S. citizens.

Getting more information about the Congressional Budget Office

The CBO is a huge governmental agency that issues a number of reports, estimates, and opinions throughout the year. If you would like to get more information about the CBO, its stance on health care, or see a copy of CBO reports, you can start with the Congressional Budget Office web site. Get a copy of any CBO publication on the publications page. Full cost estimates are also available on the Cost Estimates site. To contact the Congressional Budget Office, you can email them at communications@cbo.gov or call 202-226-2602.

I'm not looking at Dennis Kucinich in this photo, either.

The battle for health care reform may be nearing a vote in the House, as President Obama has predicted. Now a major stumbling block has been removed, as Democratic Rep. Dennis Kucinich has changed his stance on the current version of the health care bill, which brings to mind credit repair – for his image.

It remains to be seen what it was that swayed the former critic of the bill, but the New York Daily News reports that pressure from the president and House Speaker Nancy Pelosi may have had a lot to do with it. They apparently put the screws to him in his home state of Ohio this week.

Dennis Kucinich says yes, but with reservations

While his vote brings Nancy Pelosi one closer to the 216 needed to pass health care reform, Dennis Kucinich won’t say that the version of the health care bill that’s on the table is perfect.

“I have taken this fight farther than many in Congress have been willing to take it,” Kucinich said in a statement to the media. “In the past week, it’s become clear that the vote on the final health bill will be very close.”

Then he said he didn’t want to be the one to deep-six the bill

That sounds like Dennis Kucinich doesn’t want to draw someone’s wrath. Who might that be? President Obama? Speaker Pelosi? His wife Elizabeth could also be a culprit.

The big question is – how will we pay for this health care bill?

Depending upon who you ask, we could either have it covered AND reduce the deficit or continue to pay for this many generations later, saddling them with tax debt. Dennis Kucinich hasn’t forgotten this part of the equation, which is most likely why he said that he has “taken a detour through supporting this bill,” and that he will continue to seek more “robust” reform. Whatever scores points with the English rose, Dennis.

(Photo Credit: http://www.flickr.com/photos/65235746@N00/ / CC BY 2.0)

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Cash coming to your pocket? Find the answer to the question "Where's my refund?"

It’s the ides of March, which means that if you still haven’t done your taxes, you’ve got one month left. If you have already done your taxes, you’re probably wondering “Where’s my refund?” possibly with bad credit installment loans waiting in the wings. If you are asking “Where’s my refund?” here’s how you can find out when your refund will make it to your pocket.

Where’s my refund: Federal taxes

The IRS has tools designed specifically to help answer the question “Where’s my refund?” If you have already completed your tax return, then you can go to the IRS Where’s My Refund web site or call 1-800-829-1954. You will need a few pieces of information to find out where your refund is:

• Your social security number or Taxpayer ID number
• Your filing status – single, married, married filing jointly, etc.
• How much your refund is supposed to be in whole dollars

With that information, use the IRS Where’s My Refund web site or phone line to get information on where your money is. You do have to wait 72 hours after you e-file, or four weeks after you mail your paper return.

Where’s my refund: State taxes

If you pay state taxes, then you may also have money coming back as a refund. To ask “Where’s my refund” in your state, use this information:

• Alabama : revenue.alabama.gov
• Arizona : aztaxes.gov
• Arkansas : ark.org
• California : ftb.ca.gov
• Colorado : myincometax.state.co.us
• Connecticut : drsindtax.ct.gov
• Delaware : dorweb.revenue.delaware.gov
• District of Columbia : taxpayerservicecenter.com
• Georgia : etax.dor.ga.gov
• Hawaii : tax.ehawaii.gov (currently offline until July 1, 2010
• Idaho : accessidaho.org
• Illinois : revenue.state.il.us
• Indiana : secure.in.gov
• Iowa : idr.iowa.gov
• Kansas : kdor.org
• Kentucky : revenue.ky.gov
• Louisiana : esweb.revenue.louisiana.gov
• Maine : portal.maine.gov
• Maryland : interactive.marylandtaxes.com
• Massachusetts : wfb.dor.state.ma.us
• Michigan : michigan.gov/taxes
• Minnesota : mndor.state.mn.us
• Mississippi : mstc.state.ms.us
• Missouri : dors.mo.gov/tax
• Montana : tap.dor.mt.gov
• Nebraska : nebraska.gov/revenue
• New Jersey : state.nj.us/treasury No online system – call 1-800-323-4400
• New Mexico : tap.state.nm.us
• New York : nystax.gov
• North Carolina : eservices.dor.nc.gov
• North Dakota : secure.apps.state.nd.us
• Ohio : tax.state.oh.us
• Oklahoma : tax.ok.gov No online system – call 1-800-522-8165
• Oregon : dor.state.or.us
• Pennsylvania : doreservices.state.pa.us
• Rhode Island : ri.gov
• South Carolina : sctax.org/refundstatus
• Utah : tap.tax.utah.gov
• Vermont : vermont.gov/TAX
• Virginia : individual.tax.virginia.gov
• West Virginia : wva.state.wv.us
• Wisconsin : revenue.wi.gov

Where’s my refund : Cutting your tax debt

If you’ve finished your taxes and have discovered that you won’t be asking “Where’s my refund?” because you owe money, you can make an effort to cut your tax debt. Until April 15, you can still contribute money to your IRA for last year and cut that off your debt. Your property taxes for last year can also be cut off your debt, even if you don’t itemize your deductions. There is also a bill in congress that will allow for last-minute deductions for donations to Haiti and Chile. If you’ve already filed, then keep these tax tips in mind so next year you can ask “Where’s my refund?” rather than looking into online payday loans instant approval.

Samantha Bell says her father was an American "hero?" Like the TV character, he wasn't always in control.

The events of the recent Austin plane crash will not soon be forgotten. Joe Stack was a man in search of redress from a government that has been less than representative for far too many people. There are very real arguments out there which insist that the IRS is unconstitutional. I won’t recount them here, but click the link if you’re interested. Tax debt is frustrating, but misguided vengeance is tragic. Don’t tell me that Joe Stack was “a hero.” That’s what his daughter Samantha Bell is saying, even though she told “Good Morning America” that she considers his last desperate, violent act to be “inappropriate.”

Bell lives in Norway, where taxes are among the highest on Earth

Yet she tells the media that she feels that she gets “more for her money” there than she did in America. I’m not advocating turning away from America for some cold, blonde place of wonder and herring. I’m just saying that maybe I agree with some of what Joe Stack and Samantha Bell are saying about our “representative” government. It is representative, but too many people remain asleep and do not participate. Therefore, a minority of the American population is represented – a smart minority who know that you either get up off the couch/out from under your Linus blanket and take action or shut up and take it like a non-participant should.

That does not justify violence

In fact, the violence of Joe Stack’s “final solution” diluted his good points considerably. You’re only a failure if you stop trying, and Joe Stack no longer has the ability to pursue his beliefs. With counseling, perhaps he could have saved his own life. It certainly would have saved the life of Vernon Hunter, the man who died when Stack’s plane struck the IRS building. Samantha Bell is deluding herself when she says that “maybe people will listen.” You lost me at the fireball and the shattered glass of someone else’s dream.

Depression makes a man unable to see the forest for the trees

“Well, Mr. Big Brother IRS man, let’s try something different; take my pound of flesh and sleep well.” That’s what Joe Stack had to say in his manifesto. His tax debt may have indicated in part some of the flaws inherent in the current system, but his pound of flesh killed an innocent man. It was as substantive as bacon fat. I hope you have stronger meat to offer the world, Samantha Bell.

(Photo Credit: http://www.flickr.com/photos/perfectoinsecto/ / CC BY 2.0)

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http://www.youtube.com/watch?v=AlYdBktFSxQ

During tax season, many people look forward to refunds of money owed to them by the IRS. They anticipate using their refunds for investments, repayment of personal loans, vacations, or any number of other worthwhile things. For other people, however, tax season is a very stressful time of year. It’s a time to review finances, to account for money spent and income received for the entire year, and to figure out how much they owe to Uncle Sam.

Every year, a large number of these people fail to pay their taxes and they eventually find themselves owing a serious tax debt to the IRS. Many begin to avoid the agency, believing that their debt is too large to overcome and that they may lose all of their investments and savings when and if the IRS ever catches up with them. However, the IRS may actually be able to help a person owing a tax debt if that person is willing to communicate with the agency and explore avenues of repayment.

Installment plans are available for many

For someone who’s never been delinquent with the IRS before, an installment plan may be an option. Generally, this option is only made available to those who owe less than $25,000. However, even people who owe more $25,000 may request an installment plan. When the debt exceeds $25,000, the payment-plan approval process may be a bit more involved. For instance, the account may be assigned to a special revenue officer for the duration of the payment plan.

Offers in compromise work for some

Under some circumstances, the IRS may accept less than the total amount owed in full satisfaction of the debt. This sort of arrangement is called an offer in compromise, and it requires the taxpayer to make one lump-sum payment for the total amount agreed upon in order to satisfy the debt. The lump-sum payment may be a significant amount, but frequently it will be much less than the original amount owed.

Bankruptcy won’t make the IRS go away

Sometimes, people who are indebted to the IRS seek to avoid paying by filing for bankruptcy. However, a bankruptcy does not necessarily eliminate IRS debt. In some cases, a bankruptcy may result in the creation of a plan to pay the debt in installments over time, and it may prevent additional penalties and interest from accruing, but in most cases, IRS debt is not discharged in bankruptcy. A tax debtor should always get competent legal advice before filing bankruptcy.

IRS debt forgiveness is rare, but not impossible

In rare cases, the IRS may forgive tax debts when the amounts owed are the result of a tax return filed a certain number of years prior to filing for bankruptcy or if the taxes owed were assessed at least 240 days prior to the bankruptcy filing. A few other exceptions exist as well, such as when it is determined that an extreme hardship exists and the debt is not the result of the taxpayer attempting to evade tax laws. In some cases, a bankruptcy may make it easier to repay an IRS debt, but this is never a guarantee, and anyone owing a tax debt should obtain legal counsel before deciding whether to file a bankruptcy.

Communication is best way to resolve IRS debt

It is always best to pay taxes on time. Short of that, when an IRS debt is owed, making timely payments on an installment plan helps to avoid late penalties and other fees, and may also help a debtor to maintain a good credit standing. This is just as true for IRS debts as it is for credit-card and other debts. When a person falls behind on a tax debt, the absolute best way to resolve it is to communicate openly and clearly with the IRS to find out exactly what is owed and what repayment options are available. Communicating in this way can help people to gain control of their finances and eliminate tax debt along with enormous mental and emotional stress.

E-file. All the cool kids are doing it.

You probably already know that if you make a lot of money or have complicated taxes you won’t be able to file your taxes for free. Usually, for people with high incomes or a lot of assets, it makes sense, and it’s worth it, to pay someone to do your taxes. But, if you’re like me, filing your taxes is just a matter of plugging the right numbers into the right places.

Turbo Tax Free Edition is a good option for people in this situation. You can download this program from www.turbotax.com. If you’re worried that you need extra help to avoid tax debt, there are several different programs that you can pay for to e-file your taxes through Turbo Tax. Also, H&R Block has a free online program at www.hrblock.com.

2. IRS Free File

This program is a partnership between the IRS and private tax-preparation companies. You may only file for free if you made less than $57,000 in 2009. This program is only for filing federal taxes, so if you live in a state that has income tax, you’ll need to file those separately. IRS Free File is at www.irs.gov/efile.

IRS Free File gives you the option of using tax software with step by step help. You can also choose to fill in the tax forms and file them online without tax software.

3. TaxAct Free Federal

This program is actually the one I used last year. There is an option at the TaxAct web site for filing your state taxes, too, so this is a good option for anyone who doesn’t have complicated taxes. TaxAct is very simple to use and quicker than any other method I’ve used.

The address for TaxAct is www.taxact.com, simply enough. One of the best things about e-filing taxes is that it generally makes your return come more quickly, if you’re owed one, because you can get it directly deposited into your bank account.

Image from Blogspot.

The unemployment extension, passed November 5, 2009, was included in a bill with the homebuyer tax credit, and now millions of Americans can continue to collect benefits. The homebuyer tax credit was extended to 2010 in April. The unemployment extension means workers whose unemployment insurance was set to run out before the end of the year can collect benefits for an additional 14 weeks.

In states with especially high unemployment rates, the unemployment extension includes six weeks in addition to the 14-week extension. People collecting unemployment in states with rates higher than 8.5 percent will be eligible for a 20-week unemployment extension after the president signs the bill tomorrow morning.

Who is paying for the unemployment extension?

Don’t worry, you won’t have to go into tax debt because of this bill. The government isn’t taking money from tax payers just to turn around and give tax credits to those same taxpayers. The unemployment extension will be paid for the same way unemployment insurance has always been paid. That wouldn’t make any sense. CNN reports:

The proposal would be funded by extending a longstanding federal unemployment tax on employers through June 30, 2011.

How many people does the unemployment extension cover?

Nearly 2 million people collecting unemployment in the U.S. are scheduled to have their benefits expire before the end of the year. The sad thing is, if Congress had agreed on this bill sooner, 200,000 Americans could have gotten their unemployment extension, too. CNN reports:

The Senate had been bickering over the details since September, and that cost more than 200,000 people their benefits. Some 7,000 unemployed Americans run out of benefits each day, according to the National Employment Law Project.

The national unemployment rate now is 9.8 percent, the highest it has been in 26 years. Tomorrow, the day the president signs the bill, new unemployment statistics will be released. I wonder if that had anything to do with Congress finally deciding to pass the unemployment extension on November 5, 2009.

This morning on “Today,” Matt Lauer interviewed Sorrel King, author of the book “Josie’s Story.” Josie was Sorrel King’s 18-month-old daughter, who died in the hospital in 2001 because of the hospital staff’s errors.

Sorrel King’s book, “Josie’s Story: A Mother’s Inspiring Crusade to Make Medical Care Safe,” just came out earlier this month. It is available on Amazon for $16.32. “Josie’s Story” is a good read, according to critics, and an excellent example of a mother channeling her grief and anger into helping a good cause.

Shift in focus on health care

“Josie’s Story” also reminds us that when it comes to health care reform, the cost and potential tax debt associated with medical insurance aren’t the only important issues to consider. The health care system in the U.S. needs more than financial overhaul — it needs quality overhaul as well.

On “Today,” when discussing “Josie’s Story,” Matt Lauer said that 98,000 deaths per year are caused by medical errors. That’s almost 100,000 Americans per year dying because of mistakes.

How to prevent mistakes

When Josie King died, her mother chose to create positive change instead of sinking into despair.

Dr. Nancy Snyderman, NBC’s chief medical editor, was in on the discussion of “Josie’s Story” on “Today.” She said the most important message is that medical professionals need to listen to mothers, who have instincts regarding their children, “and everyone needs to communicate better.”

Of course, there is no way to prevent every mistake from happening. However, through the Josie King Foundation, Sorrel King has fought to have more procedures put in place in hospitals for more careful observation and communication.

Josie King Foundation programs

Thanks to Sorrel King’s work, new programs have been put in place at hospitals, such as the Care Journal program. The Josie King Foundation web site says “The Care Journal has thirty daily journal entries. Each entry consists of prompts that take the guesswork out of what information to remember.” Patients and loved ones of patients keep the Care Journal daily, and the purpose is to bridge the gap in communication between patients and caregivers.

Another program is Condition Help, which sets up a rapid response procedure for patients or families who feel they are not receiving adequate medical attention or have an immediate concern. During Josie’s stay in the hospital, Sorrel many times felt concern and talked to medical staff, but there was no system in place for responding to her concerns.

Watch video of ‘Josie’s Story’ discussion on ‘Today’

You can view the segment on “Today” about “Josie’s Story” using the ‘Today’ show video player. You can also read a description of the book “Josie’s Story” at the Josie King Foundation web site, where you can also read more about the foundation’s programs.

You can make a tax-deductible donation online or get the address to mail a check at the web site. There is also a system set up for people to donate stock to the Josie King Foundation.