Take Advantage of AAA Membership Benefits and Discounts

The Automobile Club is a non-profit service organization with over 51 million members, including 6 million in Southern California.  If you are not already a member, you should consider becoming one.

Basic “classic” membership is $57 per year plus a one time $20 admission fee (as of August 2024). Membership provides for towing up to 7 miles, discounted rental cars, emergency fuel delivery, locksmith service, access to AAA offices and services, free maps and travel planning, etc. Upgraded plans (AAA Plus and AAA Premier) are available, with enhanced benefits, such as much longer towing bene

But where membership can really pay off are savings on products and services.  Here are a few that really stand out (updated August 2024...subject to change).

• Getting a AAA rate on hotels like Hilton, Hyatt, and Best Western can save you 5% or more on your rooms.

• AMC Theatre Black Tickets good for seats across the country for $11.95, which is a sizeable discount over prices at the theatre, like 40%. Also save on tickets at Regal and Cinemark theatres.

• $2 off admission to the Kidspace Children’s Museum in Pasadena.

• Save over 40% on admission at Knott's Berry Farm.

• Up to 20% off when you purchase advance tickets to Aquarium of the Pacific in Long Beach at an AAA branch and 10% off at the gate or online.

• Save 30% on a 1-day general admission to Universal Studios Hollywood

• Save up to 60% off passes to Six Flags Magic Mountain.

• Save 5% at the gate at LEGOLAND California Resort and up to 20% off of tickets purchased in advance

• Save up to 60% on tickets to Sea World San Diego

• Planning on a multi-day visit to Disneyland? Save by buying passes at a AAA office

• 10% off food and non-alcoholic drinks at Dave & Buster’s

Hundreds more discounts listed on the AAA website. There's also a free AAA iPhone and Android app to find AAA discounts in your area.

So even if you don't think you'll need roadside assistance or towing, it could really pay off having a AAA membership.  Visit the Auto Club of Southern California website at www.calif.aaa.com/home.html for more information.

Get or Give Free Stuff With Freecycle

The Freecycle Network has over 5,300 groups and 11.3 million members around the world.  It is a grassroots, nonprofit movement of people who are giving (and getting) stuff for free in their own towns and thus keeping it out of landfills.  Membership is free, and everything posted must be free, legal and appropriate for all ages.

More information is available at www.freecycle.org.  There are groups organized and moderated by volunteers in many different locations via use of Yahoo Groups.

Here are the Ventura County area groups as of July 2024:

Thousand Oaks Group (2,600 members)

Simi Valley Group (1,700 members)

Ventura Group (2,100 members)

So check it out!  Somebody may need something that you don't want!

Another source for giving and getting local free stuff is www.craigslist.com.  Here is a link to free stuff in the Ventura County Craiglist and Los Angeles County Craigslist.

California's Low Cost Auto Insurance Program Provides Affordable Insurance for Those Eligible

Auto insurance is a requirement if you have a valid driver's license and drive a vehicle in the state of California. The California Low Cost Auto (CLCA) Insurance program is a state-sponsored program that makes auto insurance more affordable to those meeting eligibility requirements.

To qualify, you must 1) have a valid California driver's license; 2) own a vehicle valued at $25,000 or less; 3) meet income eligibility guidelines; and 4) be at least 16 (under 18 must be legally emancipated) or older.

Maximum income requirements are based on the size of your household. As of 2024, that maximum is $37,650 for a household size of 1, increasing by $13,450 for each additional household member (e.g. household of 4 maximum income is $78,000.

Annual premiums vary by county. If you live in Ventura County, have been licensed continuously for 3 years and are not a 19-24 years of age and unmarried, your annual premium is $275 ($358 if you are an unmarried 19-24 year old).

While the premiums are great, the coverage is very limited. A basic policy includes only up to $10,000 per person and up to $20,000 per accident for bodily injury or death and up to $3,000 for property damage. Comprehensive and collision is not included in these policies (they would have to be purchased separately).

Learn more and sign up at www.mylowcostauto.com.

California Has Billions of Dollars of Unclaimed Property - Claim Yours Now!

The State of California maintains billions of dollars in unclaimed property belonging to individuals and organizations.

California's Unclaimed Property Law requires "holders" such as corporations, business associations, financial institutions, and insurance companies to report and deliver property to the Controller's Office after there has been no customer contact for three (3) years. Often the owner forgets that the account exists, or moves and does not leave a forwarding address or the forwarding order expires. In some cases, the owner dies and the heirs have no knowledge of the property.

The most common types of unclaimed property are bank accounts and safe deposit box contents, stocks, mutual funds, bonds, and dividends, uncashed cashier's checks or money orders, certificates of deposit, matured or terminated insurance policies, estates, and mineral interests and royalty payments, trust funds and escrow accounts. You may also find things like unused balances in prepaid cards and refunds due.

Find out more at www.ClaimIt.ca.gov.

Search the California Unclaimed Property database at ucpi.sco.ca.gov/en/Property/SearchIndex.

Search by name, address, city, property number or any combination.

Income Planning to Keep Your Medicare Part B Premiums From Increasing

Medicare Part B covers certain doctor services, outpatient care, medical supplies and preventive services. You pay a monthly premium for Part B that is automatically deducted from your Social Security benefit payment.

Most people will pay the standard premium amount. If your modified adjusted gross income (MAGI) is above a certain amount, you may be charged an Income Related Monthly Adjustment Amount (IRMAA) - basically a higher premium.

Your MAGI is your total Adjusted Gross Income plus tax-exempt interest income, non-taxable Social Security benefits and untaxed foreign income on your tax return.

Medicare uses the MAGI reported on your IRS tax return from 2 years ago to determine your current year premium.

For example, the standard Part B premium in 2023 is $164.90. If your MAGI on your 2021 return was $97,000 or less if single or $194,000 or less on a joint tax return, you pay the standard 2023 premium.

If the MAGI on your 2021 tax return was between $97,000 up to $123,000 (single taxpayers) or between $194,000 up to $246,000 on a joint return, your 2023 premium would be $230.80.

There are additional income ranges that can bring your monthly premium as high as $560.50 per month in 2023, if your MAGI in 2020 was $500,000 or more for single or $750,000 or more for joint taxpayers. Visit www.medicare.gov/your-medicare-costs/part-b-costs for more details.

These bunnies are too young for Medicare but are discussing future healthcare options nonetheless.

ARE YOU FILING AS MARRIED FILING SEPARATELY? BE CAREFUL!! If your individual MAGI is above $97,000 and less than $403,000, your monthly premium jumps from $164.90 to $527.50. That’s a huge jump.

TAX PLANNING: Let’s say you are single and have $45,000 in Social Security, $35,000 in IRA distributions and $15,000 in interest and dividends in 2021. That brings you to $95,000 in MAGI, which is below the $97,000 threshold where they increase your premiums. If you sold a stock for a $2,001 gain, that would bring you to $97,001 in MAGI and your monthly premium would jump by $66 per month. Perhaps it would be wise to wait and sell that stock in 2022.

The only problem is, Medicare doesn’t announce next year’s premium parameters until the fall, which usually is after you’ve filed your previous year tax returns. What to do?

Well here we are near the end of 2023, which will be used to establish 2025 Part B premiums. The best you can do is just use the 2021 parameters and plan accordingly.

The MAGI cut-off for standard premiums in recent years have changed as follows:

• 2021 (for 2023): $97,000 (single), $194,000 (joint)

• 2020 (for 2022): $91,000, $182,000

• 2019 (for 2021): $88,000, $176,000

• 2018 (for 2020): $87,000, $174,000

• 2015-2017 (for 2017-2019): $85,000, $170,000

What happens if your income jumps really high one year? You sell a rental property, win the Lotto, take a new job, etc. Well, your premiums will jump if your MAGI leaps over those income parameters. Not much you can do about it. The good news is that it will drop back down the following year if your MAGI drops below the income threshold.

There are some unique situations where you are allowed to an appeal a Part B premium IRMAA after you receive your notice from the Social Security Administration. Certain life-changing events that cause an income decrease can be considered to reduce your premium, such as death of a spouse, marriage, divorce, reduction in work hours, loss of pension, involuntary loss of income-producing property due to a disaster and receipt of settlement from employer due to closure or bankruptcy.

Visit www.medicare.gov for more information.

Volunteer Income Tax Assistance Locations in Ventura County

The Volunteer Income Tax Assistance (VITA) program recruits volunteer tax preparers to provide free preparation of federal and state income tax returns to taxpayers with incomes less than $64,000 in 2023. VITA benefits these taxpayers by eliminating the cost of commercial tax return preparation and by securing valuable tax credits such as the Child Tax Credit and EITC.

Local VITA location sites are as follows (see this IRS link for details, including dates and times and contact information for making appointments, when required):

• Newbury Park Library, 2331 Borchard Road - Wednesdays 10am to 4pm, 2/7/24 to 4/10/24. Appointments not required.

• Conejo Creek South Park, 1350 E. Janss Road, Thousand Oaks - Mon-Fri 8:30am to 4pm, 2/1/24 to 4/12/24. Appointments not required.

• Many Mansions, 2725 East Hillcrest Drive, Thousand Oaks - 2/6/24 to 4/30/24. Appointments are required.

• Calvary Church, 5495 Via Rocas, Westlake Village - 2/6/24 to 4/9/24. Appointments are required.

• Moorpark College - 2/1/24 to 4/30/24. Appointments are required.

• East County Job and Career Center, 2900 N. Madera Road, Simi Valley - 2/7/24 to 4/30/24. Appointments are required.

• CLU Oxnard Campus: 2201 Outlet Center Drive, Suite 600 - 2/6/24 to 4/30/24 - Appointments are required.

• Oxnard College, 4000 South Rose Avenue - 2/6/24 to 4/30/24. Appointments are required.

• United Way of Ventura County, 702 County Square Drive #100, Ventura. 2/1/24 to 4/30/24. Appointments are required.

• Ventura Community Service Center, 4651 Telephone Road, 2nd Floor. Appointments are required.

What to bring:

• Proof of identification (photo ID)

• Social Security cards for you, your spouse and dependents

• An Individual Taxpayer Identification Number (ITIN) assignment letter may be substituted for you, your spouse and your dependents if you do not have a Social Security number

• Proof of foreign status, if applying for an ITIN

• Birth dates for you, your spouse and dependents on the tax return

• Wage and earning statements (Form W-2, W-2G, 1099-R,1099-Misc) from all employers

• Interest and dividend statements from banks (Forms 1099)

• Health Insurance Exemption Certificate, if received

• A copy of last year’s federal and state returns, if available

• Proof of bank account routing and account numbers for direct deposit such as a blank check

• To file taxes electronically on a married-filing-joint tax return, both spouses must be present to sign the required forms

• Total paid for daycare provider and the daycare provider's tax identifying number such as their Social Security number or business Employer Identification Number

• Forms 1095-A, B and C, Health Coverage Statements

• Copies of income transcripts from IRS and state, if applicable

www.irs.gov/individuals/checklist-for-free-tax-return-preparation

The IRS partners with software companies to provide “IRS Free File” guided tax software for taxpayers with adjusted gross income (AGI) or $79,000 or less for the 2023 tax year. Learn more at apps.irs.gov/app/freeFile. Providers for 2023 filings include FreeTaxUSA, 1040.com, FileYourTaxes.com, 1040NOW, TaxAct, OLT.com, TaxSlayer, and ezTaxReturn.com

All About the Previously Owned Clean Vehicle Credit

A brand new tax credit, the Previously Owned Clean Vehicle Credit, came about from the Inflation Reduction Act of 2022. This new credit applies to pre-owned all-electric, plug-in hybrid and fuel cell electric vehicles purchased on or after January 1, 2023 through 2032. The credit, which is non-refundable, is 30% of the sales price, up to a maximum credit of $4,000.

As with pretty much every tax law, lawmakers made sure to make the requirements for this credit as confusing as possible. Here are the main parameters:

• The sales price, exclusive of taxes ad fees, much be $25,000 or less.

• The model year of the car must be at least two years prior to the calendar year the car is purchased.

• The car must be purchased from a licensed dealer, not a private party.

• The buyer’s modified adjusted gross income (AGI) cannot exceed $150,000 for married filing jointly taxpayers, $112,500 for head of household filing status and $75,000 for other taxpayers, in either the year of purchase or the previous year.

• The buyer cannot be claimed as a dependent by someone else.

• You can’t claim the credit more than once every three years, based on the actual purchase date of the car.

• The credit is applicable per taxpayer; the IRS as of this writing has not clarified if both spouses could claim the credit within the same three-year period. (That said, in theory they could file separately in the years they claim the credit.)

There are other specifics listed at www.fueleconomy.gov/feg/taxused.shtml#requirements.

Another important detail is that vehicles are only eligible for the credit for the first qualifying sale taking place on or after August 16, 2022. In other words, a used clean vehicle is not eligible for the credit after the first time, after 8/16/22, it is re-sold for $25,000 or less. How in the world will we know if that’s the case? Ask the dealer. They will know. What this means is that two cars with the same make, model and features offered at the same price of $25,000 or less…one them could be eligible for the credit while the other one is not.

As mentioned above, this is a non-refundable credit. This means that if you take the credit on your tax return, but your federal taxes are less than the credit, the excess goes away.

But wait…there’s a solution for that beginning in 2024! Starting this year, the credit can be transferred to the dealer and applied towards the sales price. The dealer, in turn, will receive the full credit from the IRS. The only catch is that you have to meet the AGI requirements mentioned above. If you file your tax return and do not meet those requirements, you’ll have to pay back the credit with your return. Whether you claim the credit at the dealer or on your return, you have to report the purchase on Form 8936.

Let’s use an example:

George is single and decides he wants to purchase a used EV. George expects his income to be $90,000 in 2024, but his 2023 return showed $70,000 in AGI, which qualifies him for the credit in 2024. He goes to the CarMax website and searches for electric cars at a price of $25,000 or less that are shown at www.fueleconomy.gov/feg/taxused.shtml.

George finds a 2013 Chevy Bolt for $13,000 but it shows it has had two owners. If it was already re-sold by a dealer to the 2nd owner after 8/16/22 for $25,000 or less, it is not eligible for the credit. The dealer will be able to tell you if this is the case. But let’s assume the previous sale took place before that date. George purchases the car for $13,000 plus sales taxes, license fees, etc., less the credit, because he chooses to transfer the credit to the dealer. The credit is 30% times $13,000, or $3,900. Enjoy your used Chevy Bolt, George! (Let’s hope the car’s battery still holds a decent charge.)

Looking for information on NEW clean vehicle car tax credits? Visit www.fueleconomy.gov/feg/tax2023.shtml.