Ellen Phillips Tax tip
Deduct more of your long-term care premiums for 2016 medical expenses. Taxpayers age 71 and older can claim up to $4,870; seniors 61 to 70 can claim up to $3,900; and folks 51 to 60 can deduct up to $1,460.
This time of year, fraudsters commit four particular scams that I saved for this week's discussion. I first learned of The Cons of April from AARP.
Flood- related car sales "flood" the market following winter's ravages. Insurers rate vehicles with water damage a total loss, but these babies are often bought at auction, cleaned and sold to individual buyers or even dealers.
Typically, the car soon breaks down, perhaps never to be repaired enough to be safely drivable. Before handing over your check or credit card, demand certain investigations to reduce the risk of buying a pig in a poke.
* Warning signs include strong smells, discolored or too-new carpet, water stains, silt in door panels/inside glove compartments/under seats and condensation in headlights and dashboard gauges.
* Check wires under the hood to ensure they bend easily since water submersion can stiffen them.
* Require a detailed history of the vehicle at Carfax and AutoCheck. Insist on taking the vehicle to a trusted, independent auto mechanic for a thorough inspection.
FREE MEAL SEMINARS: Free lunch/dinner seminar invitations arrive in my mail at least once weekly. Many involve misleading claims, risky investments and sometimes outright fraud. But let's say you're a smart cookie and intend to eat a nice lunch or dinner, then stop listening.
Sometimes the savviest of us can get sucked into a situation, so never buy on the spot. First check the seller's registration with the Securities and Exchange Commission at sec.gov/investor. Check financial advisors at brokercheck.finra.org. And remember, "There's no such thing as a free lunch."
Vacation scams: They can ensnare the shrewdest among us. Who wouldn't love a complimentary cruise, airline tickets or resort stay? Whether we click on email that appears to be from a legitimate travel agency only to have malware infect our computer or accept an offer to attend a presentation for free travel and vacation clubs (i.e. timeshares and the like), victimization often occurs. A $99 refundable deposit might look attractive. But you usually can assume that a "free" offer requiring a deposit on your Visa or MasterCard is bogus.
RENTALS: A biggie for April is the rental scam, where crooks take photos and property information directly from legitimate real estate websites. Once you send your deposit, the scammers pocket your money and move on to the next mark. The reverse can happen as well. When a scammer poses as an interested renter and sends you, the seaside cottage owner, a deposit for more than the discussed rent deposit. Oops, sorry, didn't mean to write the check for that amount - just pop the difference to me in the mail. So you do, but guess what? The check you deposited turns out to be counterfeit, so you've lost the "overage" and, perhaps, must pay an overdraft fee.
Tax scams: Emails supposedly from the IRS or other tax collections are fraudulent. These messages may promise refunds (nonexistent) or warn of audits and incomplete filings. This is just an excuse to steal your personal details. Scammers use the tax-filing deadline (April 17) to add legitimacy to one of the top scams: IRS impostors who threaten arrest or deportation unless you immediately wire "owed taxes."
The real Uncle Sam notifies taxpayers via mail. The IRS never demands immediate payment or threatens dire predictions. In fact, unless you initiate the call, the agency won't ask for personal details, such as your Social Security number.
Contact Ellen Phillips at consumerwatch@timesfreepress.com.