Internal Revenue Service (IRS) Commissioner Danny Werfel stated this week that the IRS plans to launch a pilot program to allow taxpayers to direct e-file tax returns in 2024.

The Inflation Reduction Act (IRA) allocated $15 million to study the possibility of creating a Direct File tax return system. The IRS worked with New America think tank to conduct a review. The New America review stated it is possible to build an e-file system, but it "depends critically on their ability to maintain this initiative as a leadership priority, start with a limited scope and expand the system over time."

The Department of Treasury chief implementation officer for the IRA is Laurel Blatchford, stated on May 16 that, "filing taxes is expensive and time-consuming for American taxpayers. Dozens of other countries have provided free tax planning options to their citizens, and American taxpayers who want to file their taxes for free online should have an accessible option."

The IRS plans to use the U.S. Digital Service to build a system. Commissioner Werfel stated the IRS "will now be able to expand the amount of people that are interacting with such a prototype in order to further answer questions and provide more insight into whether a full-scale solution should be pursued."

The IRS Direct File system may be able to pre-populate returns with tax information. This may not be part of the pilot program but is a long-term goal.

There was both support and opposition for the Direct File solution. Senate Finance Committee Chair Ron Wyden (D-OR) indicated his approval. He noted the review "confirms that the overwhelming majority of Americans want the IRS to provide a free voluntary option to file their taxes directly online." Wyden explained the concept of a government Direct File program has been in existence for many years. However, Finance Committee Ranking Member Mike Crapo (R-ID) was not as positive. He noted that the IRS should "not act without explicit legal authority."

A major consideration is the cost for development of the direct file system. The initial IRS estimate was an annual operating cost of $64 million to $249 million. While the Department of Treasury stated a "future direct file program could potentially save taxpayers billions of dollars annually," members of Congress were concerned that the annual cost would be in excess of the initial projection.

Commissioner Werfel stated the IRA funds would be sufficient to start the Direct File program, but that he would be discussing funding with Congress for a "full-scale" system.

Many taxpayers in past years use commercial software from members of the Free File Alliance. Understandably, the commercial companies are concerned that the IRS program would compete with them. One large tax-preparation company spent $44 million lobbying Congress during the past two decades to oppose the Direct File option.

Groundwork Action representative Igor Volsky stated the Direct File system "is a strong step forward in the fight for free and simplified tax filing services and a clear rebuttal to big online tax preparers, their lobbyists, and their conservative allies who are committed to keeping tax-filing in America costly and difficult."

Editor's Note: Your editor does not take a position on the merits of developing a Direct File system. This information is offered as a service to our readers.

How much coverage does Medicare provide for physical therapy? My spouse was recently diagnosed with Parkinson's disease and will need ongoing physical therapy.

Medicare can cover the cost for physical therapy along with occupational and speech therapy too if it is medically necessary and prescribed by a healthcare professional. Fortunately, Medicare has no limits on how much it will pay for therapy services, however there is an annual coverage threshold to be aware of. Here is what you should know.

Outpatient Therapy

To get Medicare Part B (which covers outpatient care) to help cover your spouse's physical therapy, it must be considered medically necessary and will need to be ordered by the doctor. The same holds true for occupational and speech therapy.

Individuals can receive these services as an outpatient at a number of places. Services can be provided by a doctor or a therapist office, in a hospital outpatient department, at an outpatient rehabilitation facility, at skilled nursing facilities if he or she is being treated as an outpatient, or at home through a home health agency therapist if your spouse is ineligible for Medicare's home health benefit.

For outpatient therapy, Medicare will pay 80% of the Medicare-approved amount after you meet your Part B deductible ($226 in 2023). Patients will be responsible for the remaining 20% unless it is covered by supplemental insurance.

Please note that if your spouse's therapy costs reach $2,230 or more in the 2023 calendar year, Medicare will require your spouse's healthcare provider to confirm that the therapy is still medically necessary. Medicare previously restricted coverage on outpatient therapeutic services, but the cap was eliminated a few years ago.

Keep in mind that treatment recommended by a physical therapy provider but not ordered by a doctor is not covered. In this situation, the therapist is required to give the patient a written notice called an "Advance Beneficiary Notice of Noncoverage" (ABN), that Medicare may not pay for the service along with an estimate of the costs. If the patient chooses to proceed with the therapy, it is an acknowledgment the patient is agreeing to pay in full.

Inpatient Therapy

If your spouse happens to need physical therapy at an inpatient rehabilitation facility like at a skilled nursing facility or at your home after a hospitalization lasting at least three days, Medicare Part A (which provides hospital coverage) will cover the costs.

To be eligible, a doctor will need to certify that the patient has a medical condition that requires rehabilitation, continued medical supervision and coordinated care that comes from doctors and therapists working together.

Whether a patient will incur out-of-pocket costs such as deductibles and coinsurance, and how much they are, will depend on the setting for the treatment and how long it lasts. For more information on inpatient therapy out-of-pocket costs see Medicare.gov/coverage/inpatient-rehabilitation-care.

Medicare Advantage Coverage

If your spouse is enrolled in a Medicare Advantage plan (like an HMO or PPO), these plans must cover everything that is included in Original Medicare Part A and Part B coverage. However, some Medicare Advantage plans may require a person to use services from physical therapy practices within an agreed network. If your spouse has a Medicare Advantage plan, it is best to contact the specific plan before selecting a physical therapy provider to confirm the provider is in network.

More Questions?

If you have other questions about coverage and costs for therapeutic services, call Medicare at 800-633-4227. Your State Health Insurance Assistance Program (SHIP) also provides free Medicare counseling and is a great resource to help answer any questions. Visit ShipHelp.org or call 877-839-2675 to connect with a local SHIP counselor.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living" 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.

The Internal Revenue Service (IRS) published a letter this week that reminded taxpayers of National Hurricane Preparedness Week and National Wildfire Awareness Month. Individuals should be prepared for natural disasters such as wildfires, mudslides, landslides, severe thunderstorms or tornadoes. A natural disaster is a devastating event that can have a lasting impact on you and your family. It is always good to be prepared and plan to protect your personal financial and tax information.

1. Key Documents — Your initial priority should be protecting important documents. This may include recent tax returns, Social Security cards, birth certificates, deeds, insurance policies and medical records. These documents should be kept in a waterproof container in a secure location. You may want to make copies of the documents and store the digitized files on a portable external hard drive kept in a safe deposit box or entrusted to an individual in a different area.

2. Records of Your Valuables — Many individuals own art, collectibles or other types of valuable personal property. It is recommended that you compile a list of your valuables and have photos or videos to catalogue the items. These photos or videos will help you support your claims for insurance proceeds or an applicable tax deduction. The IRS offers disaster loss publications for both individuals and businesses that need guidance in making a list of valuables. An individual should refer to Publication 584, Casualty, Disaster, and Theft Loss Workbook (Personal-Use Property). If you own a business, you may want to review Publication 584-B, Business Casualty, Disaster, and Theft Loss Workbook.

3. Reconstructing Records — If you are a victim of a natural disaster, you may lose important financial or tax records. These could be required for federal assistance or insurance reimbursement. Many types of reimbursement require an accurate estimate of the amount of the loss. The "Reconstructing Records" webpage on IRS.gov is an excellent starting place if you need to rebuild your records.

4. Employer Fiduciary Bond — Employers who use a payroll service provider should verify there is a fiduciary bond in place. If the payroll service provider is in the natural disaster region, the organization may suffer a major business loss and default on its obligations. An employer may obtain a fiduciary bond that will protect it in the event of a disaster that causes the payroll service provider to default.

5. IRS Tax Relief — Following a declaration of a disaster zone by the Federal Emergency Management Agency, the IRS frequently postpones tax filing and payment deadlines, more information is available on the IRS Disaster Relief page on IRS.gov. If you are in a federal disaster zone, you may qualify for filing and payment relief. Individuals who are not in the covered disaster area but are impacted by a specific disaster may still qualify for relief. If you wish to speak to a trained IRS specialist, you may call 866-562-5227 for answers to disaster-related concerns.

Can you recommend online dating apps or websites? I am looking for someone to spend my time with and I am uncertain on the best way to find a companion.

Whether you are interested in dating or just looking for a friend to spend time with, online dating is an easy and convenient way to meet new people from the comfort of your own home. Today, most websites use matchmaking algorithms that factor in your interests and preferences to match you with individuals that are best suited for you. Here are some tips to help you get started.

Choose a website: With various matchmaking websites and smartphone apps available today, choosing the right one for you may be confusing. While many sites offer free versions, many websites offer premium services with paid versions. In general, paying for dating apps can get you increased visibility and the ability to learn who has liked your profile.

There are various types of matchmaking websites that cater to your specific preferences. If you are looking to connect with other older adults, educated professionals or are considering religious preferences, there are several specialized websites that can help your search.

Create a profile: If you choose to join a matchmaking website, you will need to create a profile that reflects who you are. Your profile may include recent photos, hobbies, interests, favorite activities and more. It is important to provide just enough information to highlight your personality and not reveal private information that could compromise your privacy or safety.

Practice caution: When you register with a website you no one gets access to your personal contact information until you decide to give it out. Be cautious to who you disclose personal contact information. You should talk on the phone or through video a few times prior to meeting in person. When you do meet in person, it is best to select a public place or bring a friend. If someone asks for money or your financial information, do not provide it. Online dating and sweetheart scams are rampant so be very cautious.

Be skeptical: Some people may exaggerate in their profiles. Some users may use misleading pictures or use another person's picture. As such, it is suggested to maintain a reasonable level of skepticism when you enter dating websites.

Make an effort: Users will often sit back and wait for others to reach out to them. Do not be afraid to make the first move. When you find someone you like, you might want to send them a short message that acknowledges your common interests and compliments their profile.

Do not get discouraged: If you do not get a response from someone, do not take it personally. There are many others that will be interested and it only takes one person to make online dating worthwhile.

I would like to create my last will and testament and would like to know if I can do it myself or if I need to hire a lawyer?

While almost everyone should have a will, only about one-third of Americans have an estate plan in place. Having a last will and testament is important because it ensures your money and property will be distributed to the people you want to receive it after you pass.

If you pass away without a will, also known as dying "intestate", your estate will be settled in accordance with state law. Details vary by state, but assets are typically distributed using a hierarchy of survivors i.e., first to a spouse, then to children, then your siblings, and so on.

You should also be aware that certain accounts take precedence over a will. For example, if you jointly own a home or a bank account, the house and the funds in the account will go to the joint holder, even if your will directs otherwise. Similarly, retirement accounts and life insurance policies are distributed to the beneficiaries you designate, so it is important to keep those up to date.

Do You Need a Lawyer?

Creating a will with a do-it-yourself software program may be acceptable in some cases, particularly if you are a young person with a simple, straightforward estate and an uncomplicated family situation. If you have minor children, a blended family, a difficult family member, own real estate, own a business or have a substantial estate, you may save thousands of dollars in estate costs by seeking professional advice. An experienced lawyer can make sure you cover all your bases, which can help avoid family confusion and lawsuits after you are gone.

Costs will vary depending on your location and the complexity of your situation, but you can expect to pay somewhere between $250 and $8,000 or more to have your will drafted. To help you save, shop around and get price quotes from several different firms. If expenses are of issue, search online to find low-cost legal help in your area. It is also recommended that if you decide to create your own will, have a lawyer review it to make sure it covers all the important bases.

You may find that a will is a start to an estate plan, but a living trust may be better suited for many individuals. An estate planning attorney can help determine what is the best course of action for your circumstances.

Where to Store it?

Once your will is written, the best place to keep it is either in a fireproof safe or file cabinet at home or on a secure digital storing site with your login credentials held securely. However you decide to store your will, make sure your executor knows where it is and has access to it. If a professional prepares your will, ask to keep the original document at your lawyer's office. Also, be sure to update your will if your family or financial circumstances change or if you move to another state.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living" 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.

What are the new rules on required minimum distributions from IRAs and 401(k)s? I will be 72 this year and want to be clear on what I am required to do.

Under the SECURE 2.0 Act signed into law in December 2022, there are several new rules that affect required minimum distributions (RMDs) from traditional Individual Retirement Accounts (IRAs), 401(k)s and other tax-deferred retirement accounts. These changes, which build on the SECURE Act of 2019, are a benefit to retirees because they increase the RMD age and lower the penalty for failing to take a withdrawal. Here is what you should know.

New RMD Rules

As of January 1, 2023, the SECURE 2.0 Act increased the age for starting RMDs from 72 to 73. This is applicable to individuals turning 72 on or after January 1, 2023. In 2033, the starting age increases again to age 75. This change means that if you turn 72 on or after 2023, you can delay your RMDs one more year, allowing the funds in these accounts to grow tax-free for longer.

At age 73, you must start taking annual RMDs from the tax-deferred retirement accounts you own – traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k)s, 403(b)s and 457(b)s – and pay taxes on those withdrawals. Distributions are taxed as ordinary income based on your tax bracket.

There are, however, a few exceptions to the RMD requirement. Owners of Roth IRAs are not required to take a distribution unless the Roth IRA is inherited. Beginning in 2024, Roth RMDs will not be required for any Roth IRAs.

Furthermore, if you participate in a workplace retirement plan, work beyond age 73 and do not own 5% or more of the company, you can delay RMDs from a workplace retirement plan until the year you retire. However, if you have other non-work-related accounts, such as a traditional IRA or a 401(k) from a previous employer, you are still required to take RMDs from those accounts after age 73, even if you are still working.

Deadlines and Penalties

Generally, you must take your distribution every year by December 31 in order to avoid penalties. You can choose to delay taking your first distribution until April 1 of the year following the year you turn 73. Be cautious when delaying the first distribution, as it may push you into a higher tax bracket since the next distribution is to be made by December 31 of the same year.

Also, note that while you can always withdraw more than the required amount, you should not take less than the required amount. If you do not take out the minimum, you will be assessed with a 25% penalty (lowered from 50%) on the amount that you failed to withdraw along with the income tax you owe on it. This penalty drops to 10% if you take the necessary RMD by the end of the second year following the year it was due. Account owners should consult with their tax professionals for the required tax forms to be filed for the years in which the RMDs were required but not taken.

Distribution Amounts

Your RMD is calculated by dividing your tax-deferred retirement account balance as of December 31 of the previous year by an Internal Revenue Service (IRS) estimate of your life expectancy. A special rule applies if your spouse is the beneficiary and is more than 10 years younger than you.

IRA withdrawals must be calculated for each IRA you own, but you can withdraw the money from any IRA or combination of IRAs. 403(b) account totals may also be combined with IRAs for RMDs taken from any account or combination of accounts.

With 401(k) and 457(b) plans, however, you must calculate the RMD for each plan and withdraw the appropriate amount from each account. To calculate your RMD, you can use the worksheets on the IRS website, IRS.gov/Retirement-Plans and click on "Required Minimum Distributions." Alternatively, contact your IRA custodian or retirement-plan administrator who can do the calculations for you.

For more information, see the "Distributions from Individual Retirement Arrangements" (publication 590-B) at IRS.gov/pub/irs-pdf/p590b.pdf.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living" 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.

My husband and I are interested in taking our two grandchildren on a big trip this summer. Can you recommend some travel companies that offer special travel packages for grandparents and grandchildren?

Grandparents traveling with their grandchildren have become a growing segment of the multigenerational travel industry. Not only is this type of travel fun but it is also a terrific way to strengthen generational bonds and create lasting memories.

To help with your traveling aspirations, there are several travel companies that offer specialized grandparent/grandchildren and multi-generational trip packages. This is a great option if you are looking for companies to plan everything for you. While most of the activities are planned for both grandparents and grandchildren to enjoy together, there are some individually planned activities as well.

Tours are available in various trip lengths and price ranges. They are designed for children between the ages of 6 to 18 and are usually scheduled during the summer or winter school breaks. Tours will cater to the interests and needs of both the grandparents and the grandchildren. Things to consider before choosing a tour are the types of activities offered, the physical abilities of the participants and the location and timing of the trip.

There are various companies and not-for-profit agencies that offer guided tours for multi-generational travel domestically and internationally. You may want to use your favorite search engine to find the companies, you may want to use key search terms such as "grandparent holiday tours" or other variations. You will want to look for well-established organizations and review the activities and accommodations within the particular package.

Travel Documents

Depending on where you go and your mode of transportation, you will need to gather some documents for your grandchildren to make sure everything goes smoothly. In general, most travel experts recommend you bring a notarized travel consent form (letter of permission from the parents) and a medical consent form in case of any emergencies. You should also bring copies of medical insurance cards.

If you are traveling domestically, airlines and trains do not require any form of identification for children under the age of 18 if they are traveling with an adult. If you are traveling to Mexico, Canada, Bermuda or other areas of the Caribbean by land or sea, those aged 15 and under may use a certified copy of their birth certificate. Passports are required for air travel to another country regardless of age. In addition, some countries require that your passport be valid for at least six months after your expected return date.

Some countries also require a visa for entry. Vaccinations may also be required in some cases. Before booking a trip, check the U.S. Department of State's website at Travel.State.Gov for country-specific information.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living" 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.

As a retiree, I am interested in finding a part-time job that can occupy some of my time and generate a little extra income. Do you have any suggestions on what low-stress, part-time jobs are popular among retirees?

Working part-time in retirement can be a terrific way to stay active and supplement your income. However, the key is finding the right job that is fun and satisfying for you. While there are hundreds of different part-time job opportunities for retirees, here are a few possibilities to explore.

Pet services: If you love animals, consider pet sitting or dog walking. Pet sitters attend to a pet's needs when their owner is away and can earn around $20 to $30 per day depending on location. Dog walkers typically make $20 to $30 for a 30-minute walk.

To find these jobs, advertise your services in veterinarians' offices, social media or online classified advertising websites. There are also companies that offer an exclusive platform for connecting independent contractors to pet owners for pet care services. You can use your preferred online search engine to locate the available companies best suited for your needs.

Teach or tutor: Depending on your expertise or skill, you may be able to offer your services as a substitute teacher or tutor students privately. Substitute teachers typically make between $75 and $125 per day depending upon state, district, experience and certifications. Tutors can work either in person or online and earn between $18 to $21 per hour.

To find substitute teaching positions in your area, contact your local school district to see if they are hiring and what qualifications they require. To advertise tutoring services, look for companies that offer online platforms that specifically connect tutors with students. If you have a college degree, you may want to inquire about adjunct teaching at a nearby college or university.

Drive: If you like to drive, you can get paid to chauffeur others around using ridesharing apps or by becoming a food delivery driver. Drivers generally make around $15 to $25 per hour.

Day-care provider: If you are great with children, babysitting can be a fun way to put money in your pocket. Hourly rates vary by location, experience, age and number of children needing day-care. Rates can typically average around $21 per hour for one child. To find babysitting jobs or advertise your services, use your favorite online search engine for platforms that match families to caregivers.

Tour guide: If you live near any historical sites, national parks, museums or tourist attractions, inquire about becoming a tour guide. Tour guides earn anywhere from $10 to $23 per hour depending on your location.

Write or edit: Many media, corporate and nonprofit websites look for freelancers to write, edit or design content for them. The average pay for these jobs is around $20 per hour and can vary based on skill, type of content and the like. To find these positions, use your preferred online search engine to locate companies that provide access to job boards designed for freelancers.

Consult: If you have a lot of valuable expertise in a particular area, offer your services as a consultant through a firm or on your own through freelance websites.

Translator or interpreter: If you are fluent in more than one language, you may be qualified to be a part-time interpreter over the phone or translate documents or audio files. The rate for these positions ranges from $12 to $33 per hour depending on experience and languages known. You should search online for companies that offer translation services and check out their qualifications before joining as a translator.

Public events: Sporting events, festivals, concerts and shows need ticket collectors, security guards, ushers, concession workers and more. The pay for these jobs varies depending on the role. Contact nearby venues to inquire about what is available.

Tax preparer: If you have tax preparation experience or are willing to take a tax preparation course, you can find seasonal work preparing tax returns at big-box tax firms. Contact your nearest tax firm to see if they offer seasonal work.

Bookkeeper: If you have a finance or accounting background, you can find freelance bookkeeping jobs through several different websites.

Librarian assistant: If you love to read, public libraries hire part-time workers to shelve books, send out overdue notice and help patrons. Contact your local library to see what is available.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living" 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.

What is the best way to go about choosing an assisted living facility for my parent? Their health has declined to the point that living at home is not an option anymore but my parent is not quite ready for a nursing home.

If your parent needs help with things like bathing, dressing, preparing meals, managing medications or just getting around, an assisted living facility is definitely a good option to consider. Assisted living facilities are residential communities that offer different levels of health or personal care services for seniors who want or need help with daily living.

There are nearly 29,000 assisted living communities, (also called board and care, supportive-care or residential-care facilities,) in the U.S. today, some of which are part of a retirement community or nursing home. Most facilities have anywhere between 10 and 100 suites, varying in size from a single room to a full apartment. Some even offer special memory care units for residents with dementia.

To help you choose a good assisted living facility for your parent, here are some steps to follow.

Make a list: There are several sources you can turn to for referrals to top assisted living communities in your area such as your parent's doctor or nearby hospital discharge planner, friends or neighbors who have had a loved one in assisted living and you can do your own online search.

Do some research: To research the communities on your list, call a long-term care ombudsman. This is a government official who investigates long-term care facility complaints and advocates for residents and their families. This person can help you find the latest health inspection reports on specific assisted living facilities and can tell you which ones have had complaints or other problems in the past.

Call the facilities: Once you have identified a few good assisted living facilities, call them to see if they have any vacancies, what they charge and if they provide the types of services your parent needs.

Tour your top choices: During your visit, take notice of a few key factors the facility has to offer. Is it homey and inviting? Does the staff seem responsive and kind to its residents? Also, be sure to taste the food and talk to the residents and their family members, if available. It is also a good idea to visit several times at different times of the day and different days of the week to get a broader perspective.

On your facility visit, get a copy of the admissions contract and the residence rules that outline the fees (and any extra charges), services and residents' rights, and explanations for when a resident might be asked to leave because their condition has worsened or they require more care than the facility can provide. Additionally, find out their staff turnover rate, COVID infection-control procedures and if and when medical professionals are on site.

How to pay: Monthly costs for assisted living ranges anywhere from $3,000 to $6,000 or more, depending on where you live, the facility you choose and the services provided. Since Medicare does not cover assisted living, most residents pay out-of-pocket from their own personal funds, and some have long-term care insurance policies.

If your parent has limited financial resources and cannot afford this, most states now have Medicaid waiver programs that help pay for assisted living. If your parent is a veteran, he or she may be able to get funds through the VA Aid and Attendance benefit. To find out about these programs, ask the assisted living facility director, or contact the local Medicaid office at Medicaid.gov or the regional VA benefit office at 800-827-1000.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living" 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.