The U.S. Bureau of Labor Statistics\’ latest wage data survey shows that the median weekly salary for an average worker with a four year college degree is $1,145. The same survey shows that the median weekly salary for an average worker with a high school diploma and no college education is $621. That is a difference of $524 a week which over a 30 year career results in an additional $817,440 for the worker with a college degree.

The same survey found that from 1978 to 2006 the wages of an average worker with a high school diploma increased by an average of 2.5 percent per year after being adjusted for yearly inflation. Workers with a college degree had their yearly earnings increase by 5.2 percent over the same period after being adjusted for inflation. This survey, and just about any other that you review, proves that a college degree is a very worthwhile investment of time and money.

Only 30 Percent of Recent Veterans Use their GI Bill
The U.S. Military and the Federal Government reward those who serve their Country, and one of the ways they do it is by providing military educational benefits for active duty military personnel, veterans, and their families. The largest benefit is known as the GI Bill. You have earned these benefits, yet the Department of Veterans Affairs (VA) has found that over recent years only about 30 percent of eligible veterans have used their GI Bill benefits to attend college, and an even smaller percentage have used those benefits to earn a degree.

Today\’s job market is tough, and all indications are that it will remain tough for awhile. Having a college degree can give you an advantage, and as a veteran there is no excuse not to earn one; there are programs in place to assist you financially, and many colleges offer online classes to make it easier for those with a busy schedule.

Learn How to Use Your GI Bill to Earn a College Degree
Understanding the GI Bill and what benefits you are eligible for can be difficult. The three variations that are used most often now are:

• Veterans Educational Assistance Program (VEAP)
• Montgomery GI Bill (MGIB)
• Post 9/11 GI Bill

If your active duty service occurred during the last 20 years, but prior to 9/11/2001 then the MGIB is the Bill which will provide your benefits. Veterans who had over 90 days of active duty after 9/11/2001 may be eligible for the Post 9/11 GI Bill. Veterans who are eligible for the MGIB may receive up to $49,248 in educational assistance through the VA, and in some cases even more. This maximum benefit amount is adjusted each year for inflation. Veterans eligible for the Post 9/11 GI Bill may receive substantially more than the MGIB provides depending on their circumstances.

You Earned Your GI Bill Benefits, Use Them
The GI Bill was put in place to reward you for your hard work, service, and sacrifice. Don\’t be one of the 70 percent who never use their benefits, if you don\’t understand what benefits you are eligible for, contact someone who can help you out. College and university financial aid offices usually will have someone who understands GI Bill benefits, and there are VA offices throughout the country that can assist you in reaching your education goals.

All of the GI Bill programs have a time period after separation during which the benefits must be used or they are lost. Take action now to take advantage of these great programs to boost your earning potential.

Article Source: http://www.articlesbase.com/education-articles/how-veterans-can-earn-an-additional-800000-before-retiring-3747951.html

About the Author

Kelli Smith writes about colleges and universities, community colleges, online schools, and career development. She is the senior editor at www.CollegesandUniversities.org.

Medical deductions can include dental treatments, the cost of transportation needed to get to a medical appointment, health insurance premiums and qualified long-term care services. For a full list of allowable medical expenses, see Publication 502 (2009) at the IRS web site . Some key rules to remember are -

• You can only deduct medical expenses if they exceed 7.5% of your adjusted gross income.
• To qualify for a dependency deduction, you must pay for more than 50% of your qualifying relative’s support costs. The relative only qualifies as a dependent if he or she meets the gross income and the joint return test. Dependency Deduction   If your relative doesn’t qualify as a dependent because of these tests, you cannot claim a dependency deduction, but you can still claim his or her medical expenses.
• If a group of people are sharing costs for a qualifying relative, a multiple support declaration (IRS Form 2120) can be filed to grant one family member the exemption.
• Long-term care medical expenses including diagnostic, preventive, therapeutic, curing, treating, mitigating, rehabilitative, and maintenance and personal care services are deductible if the services are required by a chronically ill individual and a licensed health care practitioner prescribes the care. An individual is chronically ill if unable to perform at least two of six activities of daily living, which are eating, toileting, transferring, bathing, dressing, and continence. An individual who is cognitively impaired and requires substantial supervision is also considered chronically ill.
• Nursing services performed in a nursing home, an assisted-living facility, or similar care facilities are also deductible expenses if the person is principally receiving care for medical reasons. However, if a person is staying at a nursing home, an assisted-living facility, or similar care facility only for custodial reasons, only medical expenses are deductible; in this instance, room charges and meals are not deductible. Nursing services performed at home are deductible expenses. If the patient is chronically ill, certain maintenance and personal care services are also deductible.

Senior citizens and caregivers should be aware that premiums paid for qualified long-term care insurance contracts are also deductible medical expenses. According to the IRS, the contract must be guaranteed renewable; not provide a cash surrender value; not pay costs that are covered by Medicare; provide that refunds, other than refunds upon death, surrender, or cancellation of the contract, and dividends are used only to reduce future premiums or increase medical benefits.  For 2009, long-term care premiums are deductible up to the following dollar amounts: for individuals age 61 to 70 the limit is $3,180, for individuals 71 and older the limit is $3,980.

Many state governments also offer tax credits and deductions for caregivers on state income tax forms, so it pays to know your individual state’s rules.

By nature, tax rules are complex. It’s important to consult a tax attorney or accountant versed in eldercare tax issues about your specific situation before finalizing your taxes. The AARP also offers free assistance and tax tips for seniors through its Tax-Aide program; go to http://www.aarp.org/money/taxaide/.

The first option for taking funds is to take monthly income for as long as the senior lives in the property. A check can be sent each month, or it can be direct deposited into their checking account for convenience. The amount they can take will vary depending on age and property value and equity. Your reverse mortgage lender can also set up monthly income for a specific time frame. Let’s say the senior has a piece of property they will be selling in a few years. The senior can take more monthly income for a shorter period of time knowing they will have more income later.

The second option for taking funds is to take them as a lump sum. The senior should be very cautious that they put these funds into something safe. There are horror stories about seniors taking out a reverse mortgage and then investing in some kind of annuity which ties up their money and they don’t have it when they need it. Remember, even though the lump sum is tax free, any interest earned on that lump sum, could be taxable.

The third option is actually the most popular. This is to take the money in the form of a line of credit. The senior can take out funds whenever they need them , say for property taxes, or a home repair and the rest of the money that stays in the line of credit actually grows tax free! This way, the senior benefits from the growth on the money they are not using.

The last option is to combine these other options. For example, I have a customer who elected to take some of her money upfront and the rest as monthly income. I have other customers who take the line of credit but take some as an upfront lump sum.

Which option is right for you? Every situation is different. Discuss all these options with your reverse mortgage specialist. Make sure you chose the option that works best for your situation.

Brenda Wheeler, Reverse Mortgage Specialist, M & I Bank Indianapolis