RC62 Universal Child Care Benefit and US/Canada Treaty

April 1, 2009

Concerning your Universal Child Care Benefit, Form RC62, amount for $500. This is something which is unique to Canada and the United States does not have such an items of which is from the Federal Government. So I looked and researched to see if this was taxable income to the United States.

1)  The UCCB is taxable and must be reportable as income if you need to file a tax return.

 2)  The Canadian US Tax Treaty states that if an item is not taxable to one State then that item is not taxable to another State.

3)  The spouse with the lower net income has to report this amount on line 117 of his or her return regarless of which person received the benefit.

 4)  Could not find the information but your spouse is filing married filing jointly so the spouse would have to report all worldwide income in order for you to be able to file jointly with your spouse. This would have been a prior election.

But I have determined that this $500 CAD income is not taxable on your US tax return because if your spouse were to file a tax return it would not be taxable.

Your spouse under number 3 and 4 is the only one that can claim this income. And since this is (number one) taxable income but the Revenue Canada return which is filed separately would account for no taxable income and since the treaty (number three) specifically disallowed an item from being taxable if this is not taxed in Canada then this is not taxable in the United States and this is the reason why I will not be including your UCCB amount of $500 on your US tax return.

The spouse lives in Canada and has no income.  The taxpayer lives in Canada and works in the United States under a work visa.  The spouse has previously elected to include all worldwide income in the United States income tax return.

The RC62, Universla Child Care Benefit is new for Revenue Canada income tax returns as of 2007.  The wording on the treaty was near the end of the treaty wording itself.   

This is interesting because in the United States we also as well as Canada have a daycare credit on Form 2441.  The employer can pay this amount.  This Canadian credit is designed for low income stay at home moms and would seem to be a social repayment.  If the income is too high then the amount of the benefit would slowly vanish.  In the United States the daycare credit has a maximum amount of credit benefit of 20% and does not get eliminated.  The only State where the amount is subsequently eliminated is in California which as of a few years ago limited the amount of the daycare credit to $100,000.  I believe they have been slowly increasing this amount every year by a yearly increased inflation factor.

Having fun now.


Seattle Tunnel versus Viaduct alternatives

March 18, 2009

Mr. Scott White.

I believe you are on the Transportation Committee when I looked this up previously.

Am the treasurer for the initiative I-99 which seeks to take away the right-of-way for the Seattle Tunnel as proposed by Mayor Nickels.

The cost of a tunnel at this time is extremely expensive and Elizabeth Campbell who is the sponsor of the initiative will be having a 100% effort in gathering signatures for this initiative after her Winter 09 class ends.  I will join the signature gathering efforts after the tax season ends on April 15, 2009.

However, this effort would be null and void if the funding for the Seattle Tunnel is not approved by the State Legislature and yourself and the committee on Transportation.

Have spoken with many people concerning this effort, obviously, and almost virtually everyone is opposed to the Seattle Tunnel idea.  Some comments circle around the State Budget and the need to balance the budget and others also still do love the idea of the beautiful travel route which the current Seattle Waterfront Viaduct passes by.  Others are extremely upset that voting does not count and recollecting the vote which overwhelmingly ditched a tunnel option previously.  The voters do not like to be ignored whatsoever.  As you recall I had said I would approve a teachers pay raise as per the voters even if no other state employee were to get a raise as per the voters electing this a few years ago.

Personally I still would like a retrofit of the Viaduct and then an accumulation of funds for the setting aside of funds for other more appropriate roadway construction in about 20 years or so.  I assume you would still like a Street Version of the Viaduct.  Both are incongruent with the Seattle Tunnel alternative and I would wish you to vote “NO” on any approval of a Seattle Tunnel version.

Thanking you in advance for your deep concern on this important roadway structure for the beautification of the Seattle Waterfront and the drivers of Seattle and the enjoyment of the beautiful vista which drivers are able to enjoy at the present time.  An enjoyable drive while in Seattle will remain if you agree to Vote against funding of a Seattle Tunnel project. 


Keith Ljunghammar, EA

Letter about State Balanced Budget

March 6, 2009

Dear Senators and Representatives
Would like to find how the Washington State budget will be balanced.  Could you indicate to me the method which you will be using.  Please mention a bill or how much of a particular program you would be cutting off.  Of course a dollar amount should also be indicated. 
My method is to
1)  Save $1 bilion by passing Initiative 1043 – illegal immigrants initiative.
2)  Cut  $2 billion from the medical insurance to children.  The amount which it has grown by in the last several years could be cut back and the parents would have to assume their childrens health care insurance amounts.
3)  Cut $3 billion by implementing State Auditor Brian Sonntag’s performance audit recommendations.  Although many will take several years to get this type of a savings it is really a sound step in the start of this process.
4)  Cut $2.5 Billion from the state nursing home care portion of the budget.  This would be accomplished by making senior citizens either pay for their own nursing home insurance and by electing out of state coverage or by starting to pay for nursing home state insurance at the age of 65 and taking out 15% of the monthly amount from the senior citizens social security checks monthly and automatically.  The exact numbers on this I have not received back from my own representative, Mr. Scott White, but they should be close. 
Total savings of about $8.5 Billion 
Please indicate some recommendations which you would recommend.  If you wish to include only a minimum of $1 Billion please advise.  Will keep your information private for your purposes but will include as a whole for party declaration purposes.  Will not send this to your opposing party however except in the format of a blog or newspaper article unless you specifically say not to include your information.  Again, not from an individual basis but from  a collective basis.  So if three representatives say they would cut $75 million and another says $400 million and another says $300 million then the amount indicated would be $75 million – $400 million or the highest/lowest amount showing from a party collectively. amount.
Keith Ljunghammar

Washington State Balanced Budget

March 2, 2009

Mr. Brad Klippert
I know you are extremely interested in balancing the budget.

My idea is if something is changed with the senior citizens and nursing home care provided by the state then with some other ideas the state budget can be balanced. 
1)  Pass I-1043 Illegal immigrants initiative to the people.  Judge just signed off with the attorneys on the final wording on Friday.  Savings is $1 Billion for the biennium.
2)  Cut the aide to children for medical insurance in half.  This aide has increased in recent years from $2 Billion to around over $4 Billion.  This increase is mainly from increasing the parents level of income for qualifying a child for acceptance into the program.  Cutting this number in half will save $2 Billion for the biennium.  Savings now total is $3 Billion.
3)  Implement all of Brian Sonntag’s, State Auditor Performance Audits.  I do not see the exact number now on the State Auditor’s website but this should be a little bit over or around $3 Billion.   Although savings may not be fully achieved until later years it is the start of the process.  The Port of Seattle has implemented some of the savings and the employee morale has increase substantially at the same time.  Total savings of around $6 Billion.
4)  Senior citizens pay for their own Nursing Home care.  If the senior citizens pay $2.5 Billion for nursing home care paid out of their social security checks in the amount of $150 per month starting at age 65 then this could balance the budget.  This is the area of the numbers which I am trying to gather together at the present time.  Total savings of around $8.5 Billion for the biennium. 

Oh, this balances the budget with a little bit of change.

Actually the idea is to help in the process to balance the budget and also start to get the state out of the business of providing free nursing home care.  The state should not be in the business of providing welfare medical coverage.  The CFP and present legal method is to have individuals who can pay to not have senior nursing home insurance but to have the money come out of current earnings.  Edward Jones security advisors say this is with an equity of $3.5 million or more for an individual.  But previously about 15 years ago I was informed that one with $300,000 to $650,000 in assets would not be able to be on the state without draining their bank accounts and assets nor be able to self finance.  This was when the high end of nursing home care was $55,000 per year.  The amount is about $8-9,000 per month at the present time.  Below this level the state would provide coverage.  The strategy for the two lower levels was to get your assets over to an irrevocable trust within 35 months of entering a nursing home or to pay for nursing home insurance for a better quality of life and nursing home care.  My idea would be to get people to pay 15% of their social security income starting at age 65.  The senior citizen recipient could opt out of the state system by paying for their own nursing home insurance.  Notifications would go out at around age 60 and once per year until age 65 to the senior citizens.  Eventually virtually no one except for the very low income senior citizen would be on state assistance.  
I was in your office on the Tuesday of the start of the full day the legislature with Craig Keller and Albert Pong.  You put the I-409/I-1043 information in a box of ideas to balance the budget.  How about $8.5 Billion savings for balancing the budget.  
I have one idea which if put together with other ideas I have will balance the State budget.  But I need a little bit more information in order to see if my idea will be viable.  It would require changing the law though.
The idea which I am exploring will lessen the stress on the families of the senior citizens.
What I am trying to find out now is how many senior citizens there are in Washington State at or over 65 years of age.  My initial findings from the www.ssa.gov website indicate there are 34 million.  91% are receiving social security benefits.  This means that 9% are waiting to the age 70 1/2 to start withdrawing SS benefits.
While studying for the financial planner, I noticed some drastic financial mutations which have to be gone through for the retirement planning process.  I also realize the State is in a financial crisis.  Mixing my ideas together like a pencil with an eraser I have come up with another idea and one which might help in solving the budget deficit.
1)  How many senior citizens are there in Washington State.
2)  How much does each one receive in social security benefits on average. The ssa.gov website says $2715 per month but this number does not connect with what I have been seeing on tax returns.  For Washington State.
3)  How many senior citizens are on full state nursing home care which is subsidized by the state.
4)  How many total senior citizens are in Washington and on nursing home care.
5)  Same last two questions but related to in-home care.
6)  How much is the average cost of nursing home care for senior citizens.
7)  What is the average cost of nursing home care by the state for senior citizens.
8)  What is the average duration of care for state recipients and other private pay recipients.
9) What is the average age of the starting of nursing home care for senior citizens in Washington State. This would be for Washington State recipients and private pay recipients counted separately.
Thanking you in advance for your prompt and courteous response to the email.
Keith Ljunghammar, EA


Terry Bergeson

August 19, 2008


I am endorsing Terry Bergeson for Director of Public Instruction for the following reasons:

 1)  Your cutting of the budget for the WASL and still being able to adhere to the having effective test results necessary for the true results which a test should give. An administrator which cuts a major cost in half must always be given a second and third look of approval.

 2) Your test still tests with true and false and multlpal choice.  But the rigors of testing with an essay style and fill in the blank is an uncompromising characteristic of some of the top Universities in the country.  True results can only be seen if the rigors of test can prove the worth of the student and the worth of the high school and the attending and tested student. 

 3)  Endorse your getting of a $60 Million grant for the improving of reading scores in the lower performing and disadvantaged academic school systems in Washington State.  You have had dramatic improvements and am looking forward to your continued redeployment of those achievements in the rest of the Washington State School systems.

 4)  Am looking at the continued extension of Larry Ishmael achievements in the Issaquah School System and your carrying on with these aggressive accomplishments transposing them throughout the state.  From a low test score school system to a Number 3 in the State School System in one term as a District Supervisor of the Issaquah School System. 

 5)  You have accomplished one of my requirements for a manager.  One must be able to have two if not more innovative ideas and implement those ideas.  Number one above you are in the process of implementing this idea and the cherry is the cost of administration will be cut in half.  The other is the use of grant funds.  These funds have been used and the test results have showed aggressively positive results.  When fully implemented throughout the state our students aptitude and appreciation for other forms of learning should dramatically improve as well.  If I am aware of two ideas you must have additional endeavors of achievement which I in advance am applauding.  Affective and efficient use of government resources should be the goal of all elected officials.  Congratulations!

 The above reasons are why I am endorsing Terry Bergeson for another term as Director of Public Instruction in the State of Washington.  You have a high threshold and in four more years will have an even higher threshold to pass.  Our children will achieve!!


 Keith Ljunghammar, EA

Candidate for 46th Legislative District, position 1

2400 NW 80th Street, #324

Seattle, WA 98117-4449



An infrastructure build by individuals

August 12, 2008

An infrastructure built by individuals

Environmentalism. Environmentalism. Environmentalism. Drill. Drill. Drill. Environmentalists say drilling is detrimental to the environment. The driller claims off-shore and tundra drilling help the animal environment. Friendly drilling needs to continue for the benefit of our society and the animal kingdom.

In the meantime alternative sources of energy “exploration” need to be developed. The solar cell energy industry has advanced considerably. One company claims they can produce a solar cell for $1 and the actual roof-top construction cost is $5 each.

But I have no money. I am working paycheck to paycheck.

You might be saving up some money in a pension plan or in an IRA.

True power lies in the ability of the individual to make decisions. Individual decisions when accumulated collectively can help or hinder a society as a whole. Collectively as the price of “at the pump” gasoline increased the individuals reduced driving habits thus the collectiveness of individual actions reduced the price of gasoline.

In the same sense government actions can help or hinder progress or should I say action or in-action of the individual as well. IRA’s and Roth IRAs have stimulated the non-pension individual to save for retirement. Some individuals have accumulated substantial massive individual account balances tax deferred or tax free. This is good.

But now the government needs to let the individual free up some of their money so the collective strength of the individual can benefit society once again.

An IRA or Roth IRA should be accessible for the individual house construction of a solar panel roof. Costs of solar cells are down and construction workers are looking for work. If the government would allow up to a $15,000 to $20,000 withdrawal from an IRA without a 10% penalty this would be the first step. Step two would be allowing the individual to: 1) withdraw the funds as a loan with payback at the selling of the house; 2) or instead of an ordinary gain charge a capital gain tax on the withdrawal.

If a loan then no monthly amounts would have to be returned to the IRS except monthly amounts received from utilities for excess electricity bought by utilities. In some utility districts the sell back amount might be higher due to the higher cost during daylight hours. The eventual selling of the house would then pay off the difference and the IRS would continue to accumulate wealth at that time with those funds.

If under a capital gain then 2008, 2009, and 2010 with an individual 15% tax bracket no capital gains tax would be paid for the cost of the solar cell roof. This would allow those in lower marginal tax brackets to truly withdraw funds and thus lower their personal costs of living. The lowering of costs may also help in freeing up other funds for IRA or retirement contributions. The higher than 25% tax bracket would enjoy a lower tax on the amount of the withdrawal by not having to pay a tax on the withdrawal of the funds for personal use at the ordinary tax rate but at the lower capital gains rate.

The third way would be the loan and capital gain rate combined. An amount above the 15% tax bracket would be considered a loan and the amount of the loan paid back as previously mentioned. For the amount in the lower tax bracket since capital gains have been calculated this amount would then not have to be paid back. Obviously the calculation would be done at the individual income tax preparation and filing time.

On the Form 1099-R, in Box 7 a code “C” for cell would be used. As with all withdrawals a payment from the trustee directly to the contractor would take place.

The advantage of this would be construction and electricions would get back to work. This collectively would be done in the southern states at first but the construction process might benefit the northern states from reduced solar cell costs. Later on with the lower costs thus this also would make solar cell roofs affordable in the northern states.

When money moves our economy moves. If money does not move our economy is stagnant.

In the meantime let’s drill, drill, drill. Let’s create an oasis for the animal kingdom and stimulate the “freely” using of electricity as previously worded on the mosaic outside of the Seattle City Light Building.


 Keith Ljunghammar, EA



Initiative 97

August 4, 2008
Letter to:
JT News
2141 Third Avenue
Seattle, WA 98121
Phone:  206-441-4553
FAX:  206-441-2736
Reply to August 1, 2008 article concerning I-97 and initiatives objective of defunding Seattle Employee Pension Fund of Israel based securities.
     Your newspaper looks very interesting but the article from the last publication was disheartening. I do not see why any true American can say “no” to supporting Israel.  I-97 and the City of Seattle pension fund not including Israel company securities on a broad blanket scale is un-American and does not solve the problem which the initiative is attempting to address. Israel has a right to defend herself and has always taken a defensive posture.  An initiative such as this will only hurt trade with the United States and with Seattle.
     I do not know of any long-time Republicans nor Christian-Republicans who would consciencely sign or even vote for this initiative.
     I would encourage your newspaper to continue to address the false impressions which the initiative takers signature gathering approach have been. Only open and true communication will reveal the hidden agenda of the managers of the Initiative.
     Again, I applaud your true presentation of I-97 and the full disclosure of its meaning of how the initiative is written.

     Knowing decendents of Samuel Adams and Thomas Jefferson this violates the nature of the founding of this country and the reverance for the establishment of a “free society”. This initiative disembowels “Life, Liberty and the Pursuit of Happiness” in every aspect and every meaning and every connotation. The fight for freedom is what is the “Rock” of America. This Initiative is not the “Rock of America” but rather the “Tea” which needs to be thrown overboard.