Greg Orcutt

 

Orcutt & Company, CPA

936 State Route 28, Milford, OH 45150

 

Phone:  513-576-1989 

 

Email: greg@orcuttfinancial.com

January 2019

January 2019 Q & A

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Question:
I just signed up for Medicare Part D, the prescription drug benefit, and I’m confused about the “donut hole,” the coverage gap. Can you explain?


Answer:
The donut hole, or coverage gap, occurs once you reach Medicare Part D’s initial coverage limit of $3,820 in 2019 and ends when you reach $5,100 in out-of-pocket costs. Patient costs in this gap used to be more than half the cost of prescriptions, but those costs are reduced in 2019. You still have deductibles and co-pays, and Part D plan costs differ widely, so talk to your health insurance professional and go to www.medicare.gov for more information.


Question:
I’d like to start a non-profit organization, to which contributions would be tax-deductible, to feed families in financial stress. How do I go about starting a 501(c)(3) organization?


Answer:
First, you should meet with an experienced attorney and your tax professional to create a plan describing the goals of your organization. Creating a 501(c)(3) non-profit involves filing for a business name and incorporating with the appropriate agency in your state. Once these are established, you’ll need to pay a fee and file a 501(c)(3) application with the IRS to gain tax-exempt status. Other items to attend to include naming officers and a board of directors, drafting
bylaws, and establishing written rules and procedures for running your non-profit.


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