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How Does Aarp Work



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Question
Do I have to claim AARP payouts for hospital stays on federal taxes?
Hi, my father in law has an AARP plan with pays out if he spends anytime in the hospital. Last year he had a brief stay in hospital and he submitted a claim to AARP and received a check for almost 500 dollars. Now I'm doing his taxes for him and he did not receive a 1099 form or anything of the sort for it. Does he have to claim this as taxable income or at all? Thanks for your help.

Answer
You would net the AARP receipt against the hospital costs if you are itemizing his deductions. If not, it is not reportable as it is an indemnity plan.



Question
Why is the AARP so successful in lobbying and getting members?
I was just curious on what makes the AARP so good at what they do. What kind of lobbying schemes do they have? And what type of stuff do they do to get members?

Answer
AARP membership includes various senior discounts and promotions, which alone make it worth the dues. They also publish a monthly magazine with articles of relevance to seniors: best places to retire, investing, aging-related health issues, etc. Their lobby is strong, and in places like Arizona and Florida they're one of the strongest. Calling a government representative and letting them know you speak for millions of retirees has a way of getting their attention. For example, they opposed Bush's Social Security reforms, and the bill never got through Congress - it was Bush's first real defeat, as I recall.



Question
What all does aarp check when you join-do they run a background check or what ?
I'm curious as to what all aarp checks when you join.Me and someone have been in a heated discussion about this.Any information would be greatly appreciated.Thanks. We were talking about people possibly trying to join simply to get the benefits of being a member.This is what the discussion was about.

Answer
That is a very curious thing to get into a heated discussion over. AARP does not do a background check when you join. They don't even need to ask you your birthdate because they already know how old you are. That's how they know when to start sending you stuff in the mail.




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