WCCF Donors offering $100,000.00 in Fall Grant Cycle

WCCF has opened their Fall Grant Cycle.  Funds for the $100,000 grant cycle are made possible through our generous donors and the Foundation’s Touch Tomorrow Funds.

Grant applications for the fall grant cycle are available by calling the WCCF office or visiting our website at https://wccfapplyonline.biz/index.php/view-grant-application/40-semi-annual-cycle to download an application.  The application deadline will be 3:30pm, September 3, 2025.

 For more information or to request an application, you may call Judy Johnson or Lindsey Wade-Swift at the Foundation office.  The number is (812) 883-7334.

During the recent Presidential election, both candidates supported the concept of removing taxes on tips. The One Big Beautiful Bill Act signed on July 4, 2025, created a tax deduction for up to $25,000 in tips for years 2025 to 2028. To qualify, the tips must be received as part of a business in which tips are customarily given to individuals.

There is a limitation, however, on the amount of tips that qualify for the exclusion. If the taxpayer’s adjusted gross income exceeds $150,000 for a single filer, or $300,000 for joint filers, the deduction is phased out. The exclusion is reduced by $100 for every $1,000 of the excess amount. For example, a single filer with $200,000 income would have an excess amount of $50,000. In light of the excess, the individual’s deduction limit would decrease by $5,000, and the individual would be entitled to a deduction of $20,000.

The tips must be paid in cash or with a credit card and must be from a business that is deemed “qualified” by the Treasury Secretary. The Treasury Secretary will provide a list of organizations that "customarily and regularly received tips on or before December 31, 2024."

The tip deduction of $25,000 will be allowed in addition to the standard deduction. It is not necessary to itemize to qualify for the tip deduction. There will be a reporting requirement for tips. The employer will reasonably designate the amount of compensation that has been reported as tips. This information will also be reported to the Internal Revenue Service (IRS).

Editor’s Note: Cash and credit card tips are frequently received in the restaurant and hospitality industry. An estimated 40% of workers in these industries have incomes that do not require them to pay federal income tax. With the standard deduction and $25,000 tip exclusion, most workers in these industries will not pay federal tax. It is probable that many workers will attempt to classify their income as tips to benefit from the $25,000 exclusion. The Treasury Secretary is likely to be quite specific in listing the qualified positions to limit potential improper use of this deduction.

If I initially enroll in a Medicare Advantage plan, am I able to later enroll in original Medicare and obtain a Medigap policy and prescription drug plan without paying a fine?

If you initially enroll in a Medicare Advantage plan, you will not be subject to any fines for switching over to original Medicare. If you switch, however, you will be subject to medical underwriting when applying for a supplemental Medigap policy. This means that the private insurance companies that offer Medigap plans can deny coverage or charge more for preexisting conditions. This is known as the “Medicare Advantage trap.” Here is what you should know.

Understanding Medicare Advantage Plans

Medicare Advantage plans (also known as Medicare Part C) are government-approved health plans sold by private insurance companies, which you can choose in place of original Medicare. Most Advantage plans are managed-care policies, such as HMOs or PPOs, that require you to receive care within a network of doctors.

If you join an Advantage plan, the plan will provide all your Part A (hospital insurance) and Part B (medical insurance) coverage just like original Medicare does. Many Advantage plans also offer extra health perks, like prescription drug, dental, hearing and vision coverage as well as gym memberships.

Medicare Advantage plans are usually less expensive than if you have original Medicare plus a separate Part D drug plan and a Medigap policy. This can be very attractive to new enrollees who are relatively healthy and do not require extensive medical care.

A drawback of Advantage plans, however, is that the benefits and networks can change from year to year. Furthermore, if you receive care outside the networks, you will usually incur higher out-of-pocket costs. Advantage plans are also criticized for pre-authorization requirements, which can delay or deny patient access to medical care. While Medicare Advantage works well for those in good health, it may not be as beneficial if your healthcare needs increase over time.

Understanding Original Medicare Plans

With original Medicare, benefits remain the same each year and you can use any provider that accepts Medicare, which most doctors do accept. But original Medicare has coverage gaps such as deductibles, coinsurance and copayments that can be expensive. For this reason, many enrollees purchase a supplemental Medigap plan offered by a private insurer.

If you opt for original Medicare when you are first eligible, insurers are required to issue you a Medigap policy and cannot charge you more based on your health conditions. In most states, Medigap plans are automatically available only in the first six months after an enrollee becomes eligible for Medicare.

If you enroll in a Medicare Advantage plan when you are first eligible, you will miss the Medigap enrollment window, which means an insurer can refuse to write you a Medigap policy or charge you more for signing up later. In addition, you generally cannot buy a Medigap policy while you are enrolled in a Medicare Advantage plan. There are, however, four states — Connecticut, Massachusetts, Maine and New York — that prohibit insurers from denying a Medigap policy to eligible applicants, including people with pre-existing conditions.

For more information on how Medigap works visit Medicare.gov/health-drug-plans/medigap.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of “The Savvy Senior” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

While there had been discussion of eliminating tax on Social Security, a compromise in Congress was to provide individuals over age 65 with a $6,000 Senior Deduction added to the standard deduction. This added deduction is available for 2025 through 2028. The $6,000 Senior Deduction phases out at a rate of 6% of the excess amount for single taxpayers with incomes over $75,000 and married couples filing jointly with incomes over $150,000. The deduction is fully phased out for single taxpayers with incomes over $175,000 and married couples filing jointly with incomes over $250,000.

The effect of this $6,000 deduction will reduce taxes for many taxpayers. Here are some scenarios to consider:

Susan/Single. Susan is age 78, has Social Security of $28,000 and other income for a total of $34,000. A single senior has a 2025 standard deduction of $15,750, an existing $2,000 deduction for those 65 and over, plus $6,000, for a total of $23,750. Because her combined income is over $25,000, part of her Social Security is tax-free and part is taxable. With her standard deduction, tax-free portion of Social Security and the added $6,000 Senior Deduction, Susan will pay zero federal income tax.

Helen/Single. Helen, age 82, has Social Security of $36,000, a large IRA payout and other income for a total of $100,000. A senior filing as a single taxpayer has a 2025 standard deduction of $15,750, as well as the existing $2,000 additional deduction and the new Senior Deduction. However, Helen’s Senior Deduction is reduced because she has over $75,000 in income. Her Senior Deduction is reduced to $4,500, for a total of $22,250. Because her income is over $34,000, a larger portion of her Social Security is taxable. While her $4,500 Senior Deduction saves some tax, Helen is likely to pay about $6,000 in income tax.

Jim and Kate/Married. Jim is age 80 and Kate is age 78. They receive Social Security of $44,000 and other income for a total of $75,000. A married couple filing a joint tax return can claim a 2025 standard deduction of $31,500, the existing senior deduction of $3,200, plus the new Senior Deduction of $12,000, for a total of $46,700. Because their income is over $32,000, part of the Social Security is tax-free and part is taxable. With their standard deduction, tax-free portion of Social Security and the added $12,000 Senior Deduction, Jim and Kate will pay zero federal income tax.

Joe and Alice/Married. Joe is age 84 and Alice is age 79. They receive Social Security of $64,000, a pension, two large IRA payouts and investment income for a total of $200,000. A married couple filing a joint tax return benefits from a 2025 standard deduction of $31,500 plus a Senior Deduction. Because their income is over $150,000, the $12,000 Senior Deduction is reduced to $9,000. The standard deduction, existing $3,200 deduction, plus the Senior Deduction equals $43,700. Because their income is over $32,000, part of the Social Security is tax-free and part is taxable. With their standard deduction, tax-free portion of Social Security and the added $6,000 Senior Deduction, Joe and Alice are likely to pay about $22,000 in income tax.

This content is for informational purposes only and does not constitute legal or tax advice. Individuals should consult with a qualified tax professional or advisor for advice specific to their personal financial situation.