"Tax Tips You Can Bank On" Archives

FIRST-TIME HOMEBUYER CREDIT EXTENDED TO APRIL 30, 2010

2009-11-29T11:05:00.000-08:00

To qualify, a binding contract must be
signed by Apr 30, and settlement must
take place no later than June 30, 2010.

This credit also applies to buying a boat
-- IF the boat will be your primary place
of residence. (Live-aboard is the term
boaters use.) Also, to qualify the boat
must have at least one stateroom
(bedroom), at least 1 head (bathroom)
and a full galley (kitchen).

The maximum homebuyer credit is
$8,000 if you have not owned a primary
residence in the past three years, or
$6,500 if you have.

By the way a Tax CREDIT is waaaay
BETTER than a Tax DEDUCTION.

A tax credit reduces your taxes
dollar-for-dollar. That's worth about
four-times as much as a tax deduction

CLARIFICATION ABOUT HOME-OFFICE DEDUCTION

2009-11-09T11:44:00.000-08:00

If you claim a home-office deduction (and
why wouldn’t you?) there are several "personal"
expenses that can become partially deductible.

The deductible amount depends on the Business
Use Percentage (BUP) of your home.
One of the qualifying "personal expenses" is
"repairs." BUT, only repairs that apply to the
entire home are deductible.

For example if the dish washer was repaired,
that expense would NOT qualify because it
applies to only one room of the home.

But if a new roof were installed, that expense
WOULD qualify because it applies to the entire
home.

In fact, if you replace worn out carpeting in the
home-office, the cost is 100% deductible, because
the repair applies only to one room, and that one
room is the home-office.

Important note -- There is a difference between
"repairs" and "improvements."
REPAIRS fix something broken, worn out or
wearing out.

IMPROVEMENTS on the other hand, add to
the value of the home, so the cost is not included
in home-office deductions.

CELL PHONE DEDUCTION WILL GET MUCH EASIER

2009-11-09T10:59:00.000-08:00

Currently, if cell phones are provided to employees the business must require logs of personal v. business use, and the personal-use portion is considered to be taxable income. That recordkeeping requirement is totally impractical, and even Congress agrees.

Expect that recordkeeping requirement to be repealed by Congress very shortly.

ARE YOU ABOUT TO MISS THIS THURSDAY'S DEADLINE TO FILE "EXTENDED" 08 RETURNS?

2009-10-11T23:54:00.000-07:00

Don't blow it off, no matter how good your excuse
or reason is, without at least being aware of the
consequences.

If you are thinking:
I just CAN'T BE READY by Thursday.
I DON'T HAVE THE MONEY I owe.
I need another extension for a little longer,
you HAVE to read the FREE one-page bullet-point
summary I've written SPECIFICALLY FOR YOU.

Just go to www.HomeBusinessTaxSavings.com

You'll find the download link just TO THE LEFT
of the box offering a free video that reveals the
"#1 Secret to Slashing Your Taxes in Half."

E-FILING OR PAPER-FILING? SURPRISE-THE IRS DOESN'T WANT US TO HAVE A CHOICE

2009-10-11T23:52:00.000-07:00

If you have my book and read my Tax Tips, you
know I am NOT a fan of E-Filing of Tax Returns,
because it robs you of audit-proofing options
and increases your chances of an audit.

The BAD NEWS:
IRS is pushing Congress to force all taxpayers to
file returns electronically by 2011. But so far,
it looks like the requirement will apply only to
all tax preparers who process 100 or more tax returns.

The SOLUTION:
After our tax pro has finished his or her work
for us, maybe we'll have to atell them: DON'T SIGN
my tax return. That would still leave us the option
of filing our OWN Tax Return as a PAPER return.

IS YOUR "TAX PREPARER" A "TAX PROFESSIONAL"

2009-10-11T23:50:00.000-07:00

In most states anyone can hang out a shingle claiming to be a
"Tax Preparation Service," without any licensing or certification of any kind.

Some of them are well informed and handle the task exceedingly well.

But not all of them.Congress is yielding to pressure from the IRS to implement a registration requirement of some kind. Expect legislation later this year, but don't expect it to take effect until AFTER the coming tax season.

WITH UNEMPLOYMENT NEARING 10%

2009-10-11T23:48:00.000-07:00

Congress is about to approve an extension of Unemployment Benefits by an extra 13 weeks.
If your business has employees, you will help pay for that. The current 0.2% unemployment surtax will be extended through 2010. In dollars, the cost to you will be about $13-$15 per employee

"FIRST TIME HOME BUYER" TAX CREDIT MAY NOT EXPIRE NEXT MONTH, AS PLANNED

2009-10-11T23:45:00.000-07:00

It looks like the $8,000 FIRST TIME HOME BUYER tax credit,
scheduled to expire on Nov. 30, will most likely be extended for a few more months.

Also, you will NOT have to finish the buying process by the deadline,
just have a contract signed by then.

WHEN YOU TRAVEL FOR BUSINESS -- ARE YOU USING "PER DIEM RATES" TODETERMINE MEAL DEDUCTION AMOUNTS?

2009-10-08T16:25:00.000-07:00

If so, could you stand some GOOD news?
PER DIEM rates are based on the Government Fiscal
Year -- October 1 through September 30 -- NOT on
the Jan.1 to Dec. 31 calendar-year and Tax-Year.

Technically, for travel between Oct. 1 and Dec. 31,
2009, you can choose whether you want to use the
"old" FY 2009 rates or the "new" FY 2010 rates.

I say "technically" because you COULD use the 2009
rates, but you'd be an idiot if you did, because they
have INCREASED in the 2010 Per Diem schedule.

The amounts allowed for breakfast and lunch have
remained unchanged, but Dinner rates have
increased by $5.00, no matter where you are traveling
in the U.S., and the deduction for Incidentals has
increased from $3.00 to $5.00 per day.

"Incidental Expenses" include fees and tips to porters,
baggage carriers, bellhops, hotel maids, and shipboard
stewards and stewardesses, according to examples the
IRS provides.

The deductible rates for Meals and Incidental Expenses
(M&IE) depends on your business travel destination, and
sometimes also on time-of-year.

For high-cost locations, the total daily M&IE rate
is $71 for FY10. The rate for the lowest-cost
locations rate $46. And there are in-between rates.
How do you know how much you can claim?

FIRST go to www.gsa.gov/perdiem to see the M&IE rate
for the location you are traveling to.

THEN go to www.gsa.gov/mie to see the breakdowns of
Breakfast, Lunch, Dinner, and Incidentals deductions.

OH, BY THE WAY… If this all sounds "foreign" to you ----
See Ch. 9 of "Home Business Tax Savings, Made Easy!"
or review the recording of Session 2 of "Basic Essentials
Course for Home Business Tax Savings." (Both are
available at www.HomeBusinessTaxSavings.com )

HAVE YOU COMPLETED YOUR 90-DAY VEHICLE-USE LOG? IF NOT

2009-10-08T16:24:00.001-07:00

IF NOT, READ ON…
Without at least a 90-day log, you risk losing ALL deductions
for business use of personal vehicles.

Guess what? There are exactly 85 days left in 2009.
That's 5 days short of 90, but you can "recreate" your vehicle use for the past 5 days,
and then keep accurate records for the next 85 days.

Then, voila- you have a 90 day log, and thus get to claim vehicle deductions for the WHOLE YEAR.
BUT if you wait a few more days to begin your log --
you will LOSE $3,000 to $5,000 or more in tax deductions.

HAVE YOU COMPLETED YOUR 90-DAYVEHICLE-USE LOG? IF NOT

2009-10-08T16:24:00.000-07:00

FINAL TAX-FILING DEADLINE IS JUST BUT, WHAT IF YOUARE STILL NOT READY TO FILE?

2009-10-08T16:20:00.000-07:00

If you filed for an extension to file your 2008 Tax Returns,
your final deadline is one week from today, on Thursday Oct. 15.

If you miss that deadline, but THEY owe YOU money,
don't worry, they are happy to keep it a little longer - but don’t expect them to pay interest.
But what if YOU OWE THEM?
That is a WHOLE DIFFERENT MATTER!

When you filed for an extension, that gave you more time to FILE,
but it did NOT give more time to PAY. All underpaid taxes were due on April 15th.
Even if you DO file on or before Oct, 15, you will owe interest dating back to Aril 15, but if you ALSO FAIL TO FILE by Oct. 15, that's when they hit you with serious penalties -- on top of the interest!

Important questions you may have, are:
What if I just CAN'T BE READY by Thursday?
What if I DON'T HAVE THE MONEY I owe?
Can I get another extension for a little longer?

THOSE QUESTIONS ARE ANSWERED in a free
one-page bullet-point summary I've written for you.
Just go to www.HomeBusinessTaxSavings.com to get it.

You'll find the download link just TO THE LEFT of the box offering a free video that reveals the
"#1 Secret to Slashing Your Taxes in Half."

AFRAID TO FILE AN AMENDED RETURN?

2009-09-22T22:07:00.000-07:00

When a person who has been operating a home-based
business for several years, finally learns about all the
great tax deductions available to HBB owners, I tell them
about their right to file Amended Returns (Form 1040X)
for the past three years to claim the deductions they missed.

That can result in a second refund for those tax returns,
quite often worth thousands dollars.

Filing Amended Returns does not increase your chances
of an audit, and the IRS does not review your entire tax
return a second time if you file an Amended Return. Yet
some people I coach are still worried that they may "stand
out" if the file the form 1040X.

Here's proof that you won’t be alone in filing a 1040X --

The IRS has issued a statement informing taxpayers that
they are so swamped with Amended Returns that it is taking
longer than usual 8 to 12 weeks to process them and to get
your additional refund back to you. They ask your patience
and say you should see your refund about 12 to 16 weeks
after you file the form.

WE HAVE A BRAND NEW WEBSITE

2009-09-22T21:59:00.000-07:00

Check-out our completely new website,
www.HomeBusinessTaxSavings.com .
New Format. Easier Navigation. And much
more Content (which we will be continually
adding to, especially in the Resource Center).

TO CELEBRATE, I have an amazing free
GIFT for you: a $200 SCHOLARSHIP
towards my most popular tax-savings program,
"Basic Essentials Course for Home-BusinessTax Savings."

The website shows the tuition as $387, however
YOU can enroll for only $187 - saving $200!
(This offer EXPIRES at midnight FRIDAY 9/25.)

To learn DETAILS about this course, the specific
BENEFITS you can expect, the CONTENTS we'll
cover, and your 100% satisfaction GUARANTEE,
click on "Products & Services" at the top of the
page, and click the top item in the dropdown menu.

TO GET YOUR TUITION SCHOLARSHIP --
When you get to the shopping cart check-out page,
see the space labeled "Enter Coupon Code, and
enter this code -- BE200. That will subtract $200
off your total, reducing your investment to only
$187 (tax deductible!) plus s/h.

GOOD NEWS, ESPECIALLY FOR AMERICA'S HIGHER INCOME EARNERS

2009-09-22T21:57:00.000-07:00

Congress is moving at a slow pace (duh! Who'd
of thunk?) on deciding how much they will jack up
taxes on Americans who earn the most.

Significance: Looks like nothing will happen before
2011, so you can earn as much as possible in 2010
before Robin Hood "redistributes your wealth" in '11.

DO YOU SPEND ENOUGH TIME ON YOUR ACTIVITY TO QUALIFY AS A "HOME-BASED BUSINESS?"

2009-09-22T21:51:00.000-07:00

Auditors are being told to use several tests to
determine if your "activity" is really a "hobby"
or a "business." Hobbies get a few tax breaks,
but home-business owners get waaaaay more!

If they can reclassify you as a hobby, they get
more of your money, and you’re…well, screwed.

IMPORTANT: One of the tests that is not well
understood, has to do with how much time you
spend on the activity.

You need to prove "Material Participation" in
your entity. Here are two ways to do that:

OPTION 1: If you work your business at least 500 hours
per year -- you pass.

OPTION 2: If you work your business at least 100 hours per
year AND no one else working in your business
puts in more time than you do -- you pass.

REDUCING INCOME TAXES FOR LOWER WAGE EARNERS???

2009-08-15T08:41:00.000-07:00

Statistics for tax year 2007 have just been released.
The numbers show that the bottom 50% of all
income-earners paid only 2.9% of all taxes paid.
That begs the question: How much further
can you actually reduce a mere 2.9%?

The top 5% (no, not 50% -- just 5%!) of all income
earners paid-in 60.6% of all taxes.
That begs the question: Just how much more
can we "soak the rich" without totally taking away
any incentive to get rich?

WHEN WILL TAX HIKES KICK IN?

2009-08-15T08:39:00.000-07:00

Since details are still being actively debated in Congress,
and since any decisions made there will no-doubt be highly controversial,
don't expect to feel any impact until 2011, at the earliest.

IS JET BLUE'S DEAL TAX DEDUCTIBLE?

2009-08-15T08:37:00.000-07:00

As you probably know, JetBlue is now
offering an "unlimited, fly-all-you-want
between 9/8 and 10/8 deal for $599.

Want to visit friends and family and have
the air fare 100% tax deductible?

It's possible. Here's how...

IF you have business trips scheduled, or
to-be-scheduled, between 9/8 and 10/8
and IF you could travel by JetBlue,
and IF the normal cost would be greater
than the $599 30-day JetBlue fare, you
could buy the 30-day deal for getting
to/from your business meetings, and, of
course the cost would be tax-deductible.

Since that "unlimited travel" deal covers all
the JetBlue travel you wish to do between
9/8 and 10/8, any additional use, for flying
anywhere, visiting anyone, could be done
on the same tax-deductible ticket.

Rationale: (a) The $599 ticket was purchased
for business travel, (b) traveling to the same
cities, on the same dates, for the same
meetings using any other airline, would have
cost the same or more, so (c) any use of the
same 30-day pass for any other reason would
have no effect on the cost of the business ticket.

OFFICIAL IRS AUDIT TECHNIQUES GUIDE

2009-08-04T15:56:00.000-07:00

How would you like to take a peek at the
OFFICIAL IRS AUDIT TECHNIQUES GUIDE --
the actual written guide IRS gives its own auditors
to prepare them to audit taxpayers in Direct Sales!

IT IS A FREE DOWNLOAD ON MY WEBSITE.
HERE'S HOW YOU FIND IT...
www.HomeBusinessTaxSavings.com
> Resource Center
> IRS Forms and Publications
> Audit Techniques Guide for IRS Auditors
> Direct Sales and MLM Industry

It is an 18 page document. See especially pages 12-16.

SUGGESTION: Instead of forwarding the "Audit Techniques Guide"
to your friends, (which you could do if you wish) send them via your
Affiliate link to download it. While they're at my site for the free download,
if they make a purchase,you earn an affiliate commission!

I hope you found that reply to be helpful and informative.
BTW, if you are not yet an Affiliate, visit my web site
www.HomeBusinessTaxSavings.com and then click on
the words "Referral Rewards" atthe BOTTOM of the page.

What qualifies as a "LEGITIMATE BUSINESS," as opposed to an "Income Producing Hobby" or an "Income Producing Activity"?

2009-08-04T15:51:00.000-07:00

THAT is the Key Question.

The answer?

The IRS'S OWN DEFINITION is spelled out in Ch. 2
of "Home Business Tax Savings Made Easy!" on
pages 43-46. If you follow the guidance in that chapter,
you should have bullet-proof tax returns.

CONSIDER THIS:

A person who does NOT have a legitimate home-based
business (HBB), should not be claiming home-business
tax-deductions anyway.

A person who DOES have a legitimate home-based
business, shouldn't worry about the IRS possibly looking
for hobbyists who are pretending to have a real business.

IN THIS CASE, THE IRS WILL PAY YOU INTEREST!

2009-07-31T11:40:00.000-07:00

If you learn about tax deductions you could have qualified
for in any (or all) of the past three years, you can file
Amended Returns (Form 1040X) and not only get a second
refund on tax returns you've already filed, but also collect
4% interest on the amount of time the IRS held your money.

The process is explained in Chapter 15 of "Home Business Tax Savings Made Easy!"
available at the author's website at www.HomeBusinessTaxSavings.com

WANT PROOF THAT YOU ARE OVERPAYING YOUR TAXES?

2009-07-31T11:34:00.000-07:00

So far in 2009, according to the IRS, NEARLY 80%
of ALL Tax Returns filed, resulted in a refund, and the
AVERAGE refund amount was................ $2,675!!!

Folks, that is NOT because the IRS got religion.
It's because they have found a way to get 8 out of every 10
taxpayers to willingly overpay their taxes by more than
$200 per month, month after month after month.
Then they give our own money back to us 15 months later and
without interest, and we brag that we got a refund.

The tele-briefings announced in the post below will show you
how to put an extra $400 to $500 in your pocket everymonth,
and still keep getting those $2,675 refunds.

MINIMUM WAGE RATE IS NOW $7.25 PER HOUR --- UP 10.7%

2009-07-24T21:26:00.000-07:00

You need to know this if you are employing your spouse or kids
to get the tax benefits described in Ch. 6-7 of
"Home Business Tax Savings Made Easy!"

The new federally-established minimum wage rate is now $7.25/hour.
Most states have their own minimum wage, BUT
most employers have to pay whichever is higher,
your state's rate or the federal rate.

To find out your state's current minimum wage rate, visit http://www.dol.gov/esa/minwage/america.htm

Between 3 million and 5 million American workers will see
a pay raise due to this, according to the Labor Department.
That's a good thing for those employees, but not so good
for their employers, many of whom are struggling to survive the recession.

Interesting footnote:The 13 states with the highest minimum wage
(all of which are higher than the new federal new minimum)
have higher unemployment levels than all other 37 states.

GOT REFUND?

Of all tax returns filed so far in 2009 (most of which were for 2008 income),
the IRS says that 79% have gotten refunds, and has computed
that the average refund was $2,675.

Wow! The IRS got religion? Not on your life!
They've simply gotten us to overpay our taxes by an average of
$225/month. Then 15 months later the give it back to us --
with no interest-- and we happily brag that we got a refund.

Would you rather have an extra $225 cash in your pocket every month,
or an extra $2,675 cash in your pocket once a year? If you like the
1-time check every April, do nothing; it will continue coming as before.

But if you'd rather have an extra $50-$60 cash
in your pocket every week all year long, you
could go to your company's payroll office and
add another 3 "allowances" on your W-4 with-
holding form, and the extra money will show up
in your take-home pay automatically.

(BTW, if you don't know what I'm talking about, see
Ch 13 of "Home Business Tax Savings Made Easy!")

DON'T FALL FOR THIS SCAM

2009-07-24T11:19:00.000-07:00

Email subject line reads:
Tax Refund Number 2009IRS2...

Email text reads:
Dear Applicant, 2009 Recalculation Tax Refund.

After the last annual calculation of your fiscal
activity we have determined that you are eligible
to receive a tax refund of $284.23

DON'T FALL FOR IT! Come on, if the IRS has
money for you, are they going to tell you by email?
I don't think so. Your email address is about the
ONLY bit of personal data they haven't (so far)
required us to reveal to them.

ARE YOUR KIDS OR GRANDKIDSYOUR EMPLOYEES THIS SUMMER?

2009-07-06T21:42:00.000-07:00

In "Home Business Tax Savings MADE EASY!" (Ch.6)
I describe LOTS of advantages of employing your minor
children in your home-based business, and exactly how to
bullet-proof your tax deductions for doing it.

Now here is another reason: Roth IRA.

An amount up to $5,000 or your child's total 2009
earned income (whichever is lower) may be contributed
by the child or by you into a Roth IRA.

Look at this example:
If your 15 year old put $5,000 into a Roth IRA this year, --
then did nothing else, ever -- that $5,000
will be worth about $200,000 by full retirement age (assuming 7% growth).

Now, imagine hiring your kids when they're as young as 7,
and putting a little of their earnings into an IRA this year,
and a little more each year. By the time they are 21,
they could have a million dollar retirement nest egg already funded.

"HEALTH CARE FOR EVERYONE" MAY COST YOU a BUNDLE!

2009-07-06T21:40:00.000-07:00

Revamping the health care system will cost at least
ONE TRILLION DOLLARS. Supposedly health care
cost savings will pay for 40% of the total. I doubt that,
but even if it is true, guess where they'll get will the
other 60% -- $600,000,000,000? (Yes, 600 BILLION!)

That task, my friends, has been given to the House and
Senate TAXWRITERS.

Savor the feeling of your wallet in your hands while
there's still something in it, because it's looking like the
"change" we were promised, will come in the form of
nickels, dimes and quarters we have left after
staggering tax increases.

SUMMER CAMP FOR YOUR KIDS -- WHAT CAN YOU WRITE-OFF?

2009-07-06T10:09:00.000-07:00

If you have children under the age of 13 who need daycare
during summer vacation while you work, the cost can count
towards Child and Dependent Care Credit, BUT ONLY IF
it is DAY-camp, not overnight camp.

This Credit can range from 20% to 35% of the actual cost
up to $3,000 for one minor, or up to $6,000 for two or more
dependents under 13.

The 20% rate applies if your income is over $43,000, and the
higher 35% rate is for those making under $15,000 in 2009.

NEW CARS PURCHASED IN 2009 OFFER YOU SPECIAL TAX BREAKS

2009-06-14T21:47:00.000-07:00

You probably already know that if you plan to buy a new car,this is the year to do it.
Here are the details...

● New deduction is only for buying NEW vehicles (not used)

● Purchase must be made after 2-16-09 and before 1-1-10

● Allows taxpayer to deduct State or Local Sales Taxes
or Excise Taxes you pay on the purchase.

● Limited to the fees or taxes paid purchase price up to
maximum of $49,500

● Deduction phased out for high income earners making
$125,000 to $135,000 (for individual filers), and between
$250,000 to $260,000 (for joint filers)

● Does NOT require taxpayers itemize deductions
And, because our government wants
no new car buyer left behind...

● In states that don't have a sales tax (AK, DE, HI, MT & OR)
you are entitled to deduct any other fees or taxes imposed by
state or local government.

"THE MORE THINGS CHANGE, THE MORE THEY STAY THE SAME"

"The art of taxation consists in so plucking the goose as to

obtain the largest possible amount of feathers

with the smallest possible amount of hissing."

J.B. Colbert,

Finance Minister to KING LOUIS XIV

YOU CAN GET BIG TAX SAVINGS BY HIRING YOUR KIDS THIS SUMMER...

2009-06-14T13:08:00.000-07:00

The money you pay them can be 100% tax-deductible to
you (as a wage expense) and the money they earn from
you can be 100% tax-free to them as minors.
A minor can earn up to $5,700 TOTALLY TAX-FREE!

If you want to give your minor child $5,000 to cover tuition
expenses, or whatever, you would first have to earn about
$7,500 in wages at your W-2 job, in order to see $5,000 in
after-tax take home pay.
But if that same minor earns $5,000 in part time wages by
working for you in your home-based business, you only
have to earn $5,000 to pay them $5,000 -- a savings of
$2,500 to you.

Now, here's the Big Problem
WITH the Easy Solution...

BIG PROBLEM:
The "big problem" with doing that, is that the IRS requires you
to do several specific things in order to qualify for the deductions.
If you miss any one of the steps, you can lose ALL the deductions.

EASY SOLUTION:
I will tell you exactly what each of those steps are, and I'll
even give you every form and document you'll need to qualify.

"HIRE YOUR KIDS and get BIG TAX SAVINGS," the topic
of this month's "Mastering Tax Savings" tele-briefing series
will be held this Wednesday.

http://homebusinesstaxsavings.com/new_home/12months.php

HEALTH CARE COSTS --BUT THIS TIME IT'S GOOD NEWS!

2009-06-02T13:15:00.000-07:00

When Washington "fixes" our health care problem, they
will need a plan to pay for it, right? They are looking at
reducing or taking away the itemized deduction for health care
costs you pay out of your own pocket.

Restrictions already are tough. In order to get any deduction
for any health costs, most taxpayers must (a) file an itemized tax return -
i.e., a Schedule A, AND (b) even then, you can deduct only the amount
over and above 7.5% of your taxable income.

Example...
If you make $40,000 in taxable income, your first $3,000 (7.5% of $40,000)
worth of out-of-pocket health costs still are your problem.
You can deduct only the amount above that threshold.
That's for MOST taxpayers -- but NOT YOU.

If you have a home-based business, you can use the
Tax Code "Section 105 Plan," to move deductions to your
Schedule C as a Business expense, not Schedule A as a Personal deduction.

See Ch. 7 of "Home Business Tax Savings MADE EASY!" available at http://www.homebusinesstaxsavings.com/ .

MORE ON HEALTH CARE COSTS --BUT THIS TIME IT'S GOOD NEWS!
The IRS has just sent an Internal Memo to its field units (read: auditors)
telling them it's okay if a self-employed person takes
money from their 401(k) to pay for Health Insurance,
even if they are not yet 50-½ yrs old --
IF they meet the following requirement...

Although self-employed people do not qualify for unemployment benefits,
if they can show that they would have qualified for benefits for at least
12 consecutive weeks, if they had been an employee, they can use their
401(k) money to pay for Health Insurance coverage, skirting the 10%
penalty usually assessed on early withdraws.