For retirees in particular, it is best to make sure you're getting the most out of your filings as every dollar counts amid rising costs of living. The final weekend here to get rolling. Now, there should come I have five just quickies.Um hopefully everyone's pretty organized with all their paperwork at this point, but the one thing you should remember is if you had earnings in 2025, if you had a side gig, if you were consulting, you are retired, but you have those ongoing earned income, contribute to a tra ...

Core Insights - Approximately 12% of U.S. adults are using GLP-1 drugs such as Ozempic, Mounjaro, Zepbound, or Wegovy, which can cost over $1,000 monthly for out-of-pocket patients [1] - The tax deductibility of GLP-1 medications depends on specific conditions, including whether they are prescribed for a diagnosed health condition [20] Tax Deductibility of GLP-1 Drugs - GLP-1 medications can be considered qualified medical expenses if prescribed for conditions like type 2 diabetes or obesity [7][8] - To deduct medical expenses, taxpayers must itemize deductions rather than taking the standard deduction, which is $15,750 for single filers and $31,500 for married joint filers in 2025 [4] - Medical expenses must exceed 7.5% of the taxpayer's adjusted gross income (AGI) to be deductible [5] - If GLP-1 drugs are prescribed solely for weight loss without a specific medical diagnosis, they are not tax-deductible [10][21] Insurance and Out-of-Pocket Costs - Only unreimbursed medical expenses can be deducted, meaning if insurance covers part of the GLP-1 costs, only the out-of-pocket portion is deductible [12] - For example, if a GLP-1 medication costs $1,000 monthly but the patient pays a $150 co-pay, only the $150 can be deducted once total medical expenses exceed 7.5% of AGI [13] Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA) - GLP-1 medications can be paid for using HSA or FSA funds if they are used to treat a specific disease [14] - Expenses paid with HSA or FSA funds cannot be deducted again for tax purposes [15] - Taxpayers may need a letter of medical necessity from their provider to get reimbursed for GLP-1s from their HSA or FSA [15] General Tax Filing Considerations - Itemizing deductions may only be beneficial if total deductions exceed the standard deduction, which about 90% of taxpayers opt for [16] - Significant healthcare costs may make itemizing more advantageous, but the first 7.5% of AGI in medical bills is not deductible [17] - Contributing to an HSA can lower taxable income and allow tax-free withdrawals for GLP-1 medications [19]

Core Insights - Age 65 marks a significant milestone for healthcare eligibility, particularly for Medicare enrollment [1] - Individuals still working at age 65 may benefit from delaying Medicare enrollment if they have good employer-sponsored health coverage [2] - Delaying Medicare enrollment allows continued contributions to a Health Savings Account (HSA), which offers triple tax advantages [3][6] Medicare Enrollment Considerations - Medicare Part A is free for most enrollees, but Part B incurs a monthly premium, making it less appealing for those with existing employer health plans [2] - Enrolling in Medicare prohibits further HSA contributions, even if only Part A is selected [3] - Delaying Medicare enrollment can help avoid penalties, especially if covered by a qualifying group health plan during the initial enrollment window [4] Health Savings Account (HSA) Benefits - HSAs allow contributions with pre-tax dollars, tax-free growth of invested funds, and tax-free withdrawals for qualifying healthcare expenses [6] - To continue HSA contributions at age 65, individuals must wait to enroll in Medicare [3] - Eligibility for a special enrollment period in Medicare is typically available if the group health plan has 20 or more employees [7]

Core Points - The 2026 tax season opens on January 26, prompting individuals to gather necessary documents to avoid missing out on potential deductions and credits [1] - A tax checklist and organized folder are essential for individuals with multiple income streams or investments to ensure all relevant documents are accounted for [2] Group 1: Important Tax Documents - Employees typically receive their W-2 forms, while freelancers and independent contractors should have their 1099 forms by February 15, which are crucial for reporting income [4] - There are 22 different types of 1099 forms used to report various income sources, including freelance work, unemployment compensation, and sales of stock securities [5] Group 2: Specific Deductions and Contributions - Health Savings Accounts (HSAs) provide triple tax advantages, including tax-deductible contributions, tax-deferred growth, and tax-free withdrawals for qualified medical expenses, with Form 8889 used for reporting [6] - Charitable contributions must be declared, including cash donations, estimated values of non-monetary donations, and mileage for charitable driving, with Form 8283 required for noncash gifts exceeding $500 [7]

Core Insights - Freelancers, 1099 contractors, and gig workers face unique tax challenges, including itemizing business expenses and covering their own Social Security and Medicare taxes, which can lead to unexpected tax bills [1][2] Tax Responsibilities - According to the IRS, individuals with net earnings of $400 or more after business expenses are liable for self-employment taxes [2] Tax Reduction Strategies - The Qualified Business Income (QBI) deduction allows business owners, including sole proprietors, to write off 20% of their business income, which can lower the amount owed to the IRS [3] - Structuring a business as an S-Corp can reduce FICA taxes, as freelancers only pay these taxes on the salary portion of their profits [4] - Freelancers earning approximately $30,000 to $40,000 should consider consulting a professional about filing as an S-Corp for potential tax benefits [5] Retirement and Health Savings - Opening a SEP-IRA or Solo 401(k) can help freelancers save for retirement while reducing tax liability through deductible contributions [6] - Enrolling in a Health Savings Account (HSA) allows freelancers to make pre-tax contributions that can reduce tax liability and cover medical costs [7] Deductions Tracking - Freelancers can access various business-related deductions not available to W-2 employees, such as home office expenses and mileage, but must maintain careful records to maximize these deductions [8]

Core Insights - Flexible Spending Accounts (FSAs) allow employees to set aside pre-tax money for qualifying healthcare expenses, providing a tax break and reducing monthly expenses [1] - Unlike Health Savings Accounts (HSAs), FSAs have a strict deadline for spending contributions, with most 2025 FSA funds needing to be used by December 31, 2025, although some plans may offer a grace period until March 15, 2026 [2][5] - Unused FSA funds can be lost if not spent, emphasizing the importance of understanding the specific rules of the employer's plan [3] Spending Options - Employers may provide a grace period of up to 2.5 months to utilize remaining FSA funds [5] - Suggested items for spending unused FSA funds include: - Dental care services such as cleanings or fillings [6] - Over-the-counter medications [6] - Vision exams and new glasses [6] - First-aid supplies [6] - Chiropractic care [6] - Contact lenses and lens solutions [6] - Cough drops [6] - Flu shots and other vaccines [7] - Menstrual products [7] - Massage therapy [7] - A comprehensive list of eligible products and services is available through FSA Feds, encouraging users to check for regularly used items [7]

Core Insights - The article highlights significant structural changes in retirement and healthcare financing in the U.S. by 2026, which will impact consumer payment methods for care and competition among medical device companies [1] Policy Changes - The IRS has increased Health Savings Account (HSA) contribution limits for 2026 to $4,400 for individuals and $8,750 for families, up from $4,300 and $8,550 in 2025 respectively [2] - The age-55 "catch-up" contribution remains at $1,000, reflecting cost-of-living adjustments aimed at preserving the tax-advantaged nature of HSAs [3] - Medicare Part B premiums are rising to $202.90 per month, an increase of nearly $18 from 2025, with the Part B deductible increasing to $283 [4] Implications of HSA and Medicare Changes - The rising HSA limits make HSAs more attractive for managing out-of-pocket healthcare costs, while higher Medicare premiums may lead to increased enrollment in Medicare plans and ancillary services [5] - HSAs can be used for both current medical costs and qualified medical device expenses, allowing consumers to save more tax-free dollars for durable medical equipment [6] - Higher premiums may increase demand for technologies that improve disease self-management and prevent costly complications, influencing total care costs [7] Companies Positioned to Benefit - DexCom, ResMed, and Masimo are identified as companies likely to benefit from these trends due to their focus on markets where out-of-pocket costs and reimbursement policies significantly affect adoption [8] - DexCom's continuous glucose monitoring (CGM) systems may see increased adoption as higher HSA limits help patients manage diabetes costs [9] - ResMed's devices for sleep and respiratory care align with the aging Medicare demographic and rising out-of-pocket care needs [9] - Masimo's monitoring tools support preventive care, which becomes more relevant as Medicare premiums rise [9] Company-Specific Insights - DexCom is a leader in CGM systems, providing real-time glucose data that aids in insulin delivery and lifestyle management, with a focus on expanding Medicare coverage for CGM devices [10][11] - Higher HSA limits allow diabetes patients to allocate more pre-tax savings for CGM systems, reducing financial barriers to adoption [12] - ResMed specializes in devices for sleep-disordered breathing, with rising premiums incentivizing seniors to use HSAs for optimal therapy devices [15][16] - Masimo develops non-invasive monitoring systems, with increased demand for preventive monitoring as Medicare beneficiaries face higher premiums [18][19]

Core Insights - The podcast discusses the potential downsides of Roth accounts, emphasizing that they may not be suitable for every investor [1][3][5] Federal Reserve and Market Reactions - The Federal Reserve cut the target for the Fed funds rate by 0.25 percentage points, marking the third cut of the year, with a divided vote of 9 to 3 [3] - Following the Fed's decision, the S&P 500 rose by 0.7%, while small-cap value stocks gained 2.3% on the same day, and the eShare S&P Small Cap Value ETF increased by 6.2% since early November [3] Retirement Account Considerations - Investors aged 73 or older must take required minimum distributions (RMDs) from retirement accounts to avoid penalties of up to 25% [3][4] - The IRS has clarified rules regarding inherited retirement accounts, which may require withdrawals starting in 2025 [4] Roth Account Insights - Roth accounts are praised for their tax-free benefits, but the podcast highlights scenarios where they may not be the best choice, particularly regarding adjusted gross income (AGI) implications [5][6] - Contributing to a Roth account can increase AGI, potentially raising Medicare premiums and affecting eligibility for various deductions and credits [8][9] Tax Strategy and Diversification - The discussion emphasizes the importance of tax diversification, suggesting that having both traditional and Roth accounts can optimize retirement income streams [17][18] - The podcast mentions that tax-free buckets like Roth IRAs can limit the ability to take advantage of lower tax rates in the future [11][12] Alternative Strategies - Qualified charitable distributions (QCDs) are presented as a strategy to meet RMDs while supporting charitable causes, allowing individuals to bypass tax implications [20][21] - The podcast also discusses the benefits of health savings accounts (HSAs) and their triple tax advantages, particularly for younger investors [22] Upcoming Changes in Contribution Limits - Contribution limits for IRAs and 401(k)s are set to increase in 2026, with specific catch-up contributions for higher-earning workers aged 50 and older required to be deposited into Roth accounts [23][24] - The podcast advises on strategies to manage contributions effectively to maximize tax benefits and account growth [24]

Healthcare Policy and Legislation - The Trump administration and House Republicans are focusing on reducing healthcare costs, with a bill aimed at lowering costs by approximately 11% for some Americans as Obamacare subsidies are set to expire [2][3] - The proposed legislation allows small businesses to pool health insurance, which is expected to lower premium costs across the board [3] - There is a push against extending Obamacare, which has reportedly raised premiums by 55% since its enactment, advocating for funds to be redirected to taxpayers for personal healthcare choices [4][5] Government Funding and Shutdown Risks - The Senate is nearing a deal on a five-bill appropriations package that would fund 85-90% of the federal government through fiscal year 2026, following the expiration of current funding at the end of January [2] - The potential for another government shutdown looms if the extension of Obamacare subsidies is not resolved, with discussions ongoing about the necessity of a compromise [6][16] - The House has passed a continuing resolution (CR), but the Senate's 60-vote threshold complicates the situation, leading to concerns about a repeat of previous shutdown scenarios [14][16] Cannabis Legislation - President Trump signed an executive order reclassifying cannabis as a schedule three drug, marking a significant shift in federal marijuana policy [17][19] - This change is expected to facilitate research on medical cannabis, which has been hindered due to its previous classification as a schedule one drug [19][21] - The reclassification has impacted cannabis stocks, with concerns that big pharmaceutical companies may enter the market, affecting existing cannabis producers [22] Federal Property Management - A new bill aims to address the issue of unused federal buildings, proposing that properties not utilized by more than 60% of federal workers should be sold to reduce taxpayer costs [24][26] - The initiative could also potentially convert these buildings into affordable housing, addressing supply issues in housing markets, particularly in areas like Washington D.C. and Florida [26][29]

Trump-Backed HSA Plan Would Give Some Americans $1,500 Each—But Here Are The Drawbackshttps://t.co/lEf5aveXjc https://t.co/wBLwjEychq ...