With summer in full swing, you’ve probably noticed an uptick in your electricity bill. The hot temperatures and high humidity have been giving your air conditioner a real workout! Since your heating, ventilation, and cooling (HVAC) system uses the most electricity of any item in your home, taking steps to improve its efficiency will save energy and money. Try these five easy ways to stay cool for less:
Adjust the thermostat. Set the air conditioner thermostat to 78o F. For every degree setting below 78o F, you spend up to 4% more in cooling costs.
Use fans. Ceiling and floor fans move air to create a breeze, which can make a room feel up to four degrees cooler than the actual temperature. This allows you to set the thermostat higher and still be comfortable. Ceiling fan blades should move in a counterclockwise direction to create a downdraft – you can adjust the direction by moving the switch located on the side of the motor casing. Tip: Fans cool people, not rooms, so turn off the fan when you leave the room to save more money on your power bill.
Use window coverings to control sunlight. East- and west-facing windows catch the brunt of the sun’s heat, adding extra warmth to those sides of your home. Keep blinds and drapes closed to block out morning or afternoon sunlight so your air conditioner doesn’t have to work harder to cool those rooms.
A dirty filter forces your HVAC system to work harder, raising your power bill and shortening the lifespan of the unit. (Photo source: Judy Corbus)
Change the air filter. Dirty air filters restrict airflow and may cause the HVAC system to run longer, increasing your energy bill and potentially shortening the life of the unit. Many newer HVAC systems shut down if the filter becomes too clogged for air to pass through the filter; this prevents the compressor motor from overheating. When this occurs, a service technician must inspect and reset the unit, resulting in a service charge. During periods of high use or if you live in a dusty area or have pets, check and change your filter monthly, even if the filter is labeled to last three months. Pick a day that’s easy to remember, like the first of the month or when you receive your power bill in the mail. Make sure you use the filter type and size recommended by the manufacturer for optimal efficiency. While you’re at it, dust your ceiling fan blades, too!
Have your HVAC system serviced at least annually. Schedule a maintenance check on your unit at least once a year. A trained technician will check the coolant level, drain line, and overall system to make sure everything is operating at peak efficiency. If you live in a manufactured home, it’s especially important to check the ductwork to ensure it has not separated at the seams, resulting in a loss of cool air inside and higher electricity bills. Routine maintenance will head off potential problems, extending the life of your unit and promoting efficient operation for reduced power bills. Tip: Prune back shrubs that may block airflow to your air conditioner compressor.
These simple tips will help to cool down your power bill while you stay cool!
You’ve heard the saying, “A penny saved is a penny earned,” but why, how, and where should you be saving?
Let’s begin with why you should be saving. While we hope that life goes smoothly and there are no unexpected emergencies, that’s just not realistic. It is important to begin saving so you will be prepared for emergencies that arise, things like when the dryer stops working or your car needs repairs or new tires. This can also be an account to help prepare for a planned vacation or a large, expected expense. Preparation is key!
Save regularly toward your goals – it will add up quickly! Photo source: UF/IFAS Extension
That leads us to the next pieces – how and where do you save? This all begins with taking the steps to open a savings account. These days, opening an account can be done from nearly anywhere. You might visit a financial institution’s local branch, make a phone call, or even go online. You will need to provide a few pieces of personal information for verification and often you are required to deposit a sum of money to activate the account. Once your account is open, you can decide how to add money into it. Perhaps you deposit a certain amount from a regular paycheck or funding source, maybe you would prefer to transfer funds from other accounts, or you can deposit cash or checks periodically.
One thing about a savings account is the money is typically not as accessible as money in a checking account. This is all by design – the funds you allot to your savings account should be left alone and not used frivolously. An advantage to a savings account is the interest earned on your money while you aren’t doing anything with it. It won’t be much in the beginning, but, over time, interest earned could be a bit of a boost to your savings, helping you reach your goals more quickly.
To reach goals, you need to plan them out – be SMART. SMART goals are Specific, Measurable, Attainable, Relevant, and Timed. Decide what you will be saving for and be specific. Will this account be for emergencies, vacation, or a vehicle? Your savings goal should also be measured in some way so you can track your progress. Ensure your savings goal will be attainable, set yourself up for success, and be realistic with the amount of money you are setting aside. Your savings goal also should be something you are excited to work towards to make it relevant to you. Lastly, give yourself a time frame for reaching your savings goal. Will this take a month, one year, five years? Whatever you decide, stick to your time frame. Being able to identify your goals will aid in your savings success.
Tired of renting and thinking about buying a house? Not sure where to start? Let’s talk about some of the first steps in the path to homeownership.
Many people don’t realize that making the decision to buy a home and the process to buy one isn’t a one-size-fits-all step. There are many emotions and considerations that go into it. Here are some of the first questions to consider.
Do you have a budget or spending plan that you can live on?
Photo Credit: UF/IFAS Photo by Tyler Jones
Having a spending plan or budget that you can live on means that you’ve reviewed your income and expenses and either have a balanced budget or one with money left over. You may adjust that budget each month as expenses and/or income change but you don’t end the month in the negative. If you’re just getting started, try checking out our Money Management Calendar. It will take you through the six steps of building a spending plan and serve as a tool to help track your money each month. Knowing your financial situation before you begin the process to buy a home is important, as there are out-of-pocket costs that you’ll encounter when buying a home such as appraisal fees and closing costs, in addition to costs associated with homeownership, like maintenance, repairs, and insurance.
How does your credit report and credit score look?
Lenders use your credit score to help determine whether or not to approve you for a mortgage loan and, if approved, at what interest rate. The higher your credit score, typically, the lower your interest rate and the less you’ll pay for your home. Different loan programs may also have a minimum credit score requirement you’ll have to meet. Start by checking your credit report at the three different credit reporting agencies: Experian, Equifax, and TransUnion. Look for any errors or mistakes that could negatively impact your score. The three national credit reporting agencies permanently extended a program allowing individuals to check their credit report for FREE once a week at each agency. Visit AnnualCreditReport.com access the free copies of your credit reports. Improving your credit score can take time so starting early is helpful.
How much debt do you have?
Photo Credit: UF/IFAS Photo by Thomas Wright
Debt is another factor that lenders consider when you apply for a mortgage loan. Having too much debt can cause you to be turned down for a mortgage loan. The amount of debt you have can also significantly impact how much a lender is willing to lend you toward a home purchase. You can calculate your debt-to-income (DTI) ratio by dividing your total monthly debt payments by your total gross monthly income and multiplying it by 100 to convert it to a percentage. For total monthly debt payments, you should include any loans, credit card payments, child support, alimony, medical payments, and similar items. Do not include things like groceries, utilities, etc.
Each lender and loan program will have a different maximum limit, but many are in the range of 35-41% of your income going for debt repayment.
These are just a few of the initial questions to consider if you’re thinking about buying a home (and can be ones to think about even if you’re not!). Saving money, paying down debt, and repairing or raising your credit score all take time. Starting today can help you to be in a better position when you are ready to take the next step. If you want to learn more, UF/IFAS Extension offers classes for first-time homebuyers (returning buyers are welcome, too!) that go more in-depth for each of these questions and much more. Contact your local Extension office to find out about class schedules.
Resources:
My Florida Home Book: A Guide for First-Time Homebuyers in Florida, University of Florida/IFAS Extension
What is a scam? A scam is a deceitful attempt to gain something of value from you, such as your personal information or funds. Scammers often pose as a genuine business or acquaintance in order to trick people into trusting them. Scam attempts are made over the phone, via text, in person, or through email. Scams target individuals of all ages, backgrounds, and income levels. Though seniors have traditionally been targets of scams, everyone is vulnerable.
It is important to protect yourself by recognizing the signs of scams. These signs can help keep you, your loved ones, and your money safe.
Scammers often pretend to be a person/place you recognize, to win your trust.
Scammers often tell you that there is a problem, or you have won a prize.
Scammers often pressure you to take action immediately (time limited).
Scammers often request you to pay in a specific way (store gift card or cash apps).
Tips to Protect Yourself from Scams and Identity Theft:
Don’t share passwords or account numbers – especially your Social Security number.
Change your passwords frequently. Make them complex. Store all passwords in a safe location.
Do not open suspicious texts or click on links or attachments in an email. DELETE THEM!
Don’t ever pay ahead of time for a guaranteed prize. If they request payment for taxes or other fees before you can receive a prize or prize money, it is most likely a scam.
Keep your personal information safe. Lock your mailbox and shred your bills and other important documents before throwing them in the trash.
Sound too good to be true? If you are skeptical, and/or something doesn’t feel right, it probably is a scam.
Be skeptical of deals that are “good for only today.” If you are pressured to act immediately (or else!), it probably is a scam.
Do You Think You’ve Been the Victim of a Scam? Now What?
Protect yourself from scams by following a few simple guidelines for protecting your personal information online and over the phone. (Photo source: Thomas Wright)
Report the Scam. Reporting scams can help protect others. Agencies can utilize the information gathered to record patterns of behaviors that can lead to criminal charges.
Contact Your Local Law Enforcement. Consumers can report scams to their local law enforcement office, particularly if their money or identity has been stolen.
Contact Florida’s Attorney General. Florida citizens who have been victims of a scam can contact the Florida Attorney General’s Office of Citizen Services at 1-866-966-7226 or file a report on their website.
Reach out to the FBI.The FBI site offers some personal safety resources regarding scams and fraud.
For more information about keeping you and your family safe from scams, identity theft, and fraud, please contact the UF/IFAS Extension office in your county.
Taxes, without a doubt, can conjure up responses from elation,” Yeah! I get a refund!,” to dread…” Darn, I owe!” The Covid-19 pandemic has prompted another response…What in the heck happened to my 2019- and 2020-income tax return?
While it is quite normal for the Internal Revenue Service (IRS) to face a bit of backlog every year, according to The Washington Post, the IRS closed last year’s tax season with an unprecedented large number of returns unprocessed due to budget cuts and staff issues.
Most recently, IRS Commissioner Chuck Rettig said in a statement, “The pandemic continues to create challenges, but the IRS reminds people there are important steps they can take to help ensure their tax return and refund don’t face processing delays.”
Know that having all the information needed to file an accurate return helps the whole process and helps to avoid delays. The US 2022 (2021 tax year returns) income tax season will:
Begin on January 24, 2022. This is the day the tax agency will begin accepting and processing 2021 tax year returns.
The deadline to file 2021 federal taxes for most people is April 18, as April 15, Emancipation Day, is a holiday in Washington, D.C.
Maine and Massachusetts residents have until April 19 to file their federal returns, as April 18 is Patriot’s Day in those two states.
The deadline for filers requesting an extension is Oct. 17, 2022.
The IRS is urging to file your tax return electronically and, if you are due a refund, to choose direct deposit.
The IRS anticipates that most taxpayers will receive their refund within 21 days if they file electronically and choose direct deposit.
Please, do not be influenced to apply for a tax refund anticipation loan, typically known as an RAL, if you are not in an emergency for the loaned money. An RAL is a loan based on the anticipated amount of your federal income tax refund. Many tax filing services will offer you a RAL if… you file with their service. Know that your loan amount will be based on the value of your anticipated refund minus fees and/or interest charges.
Know, too, that your loan will be deposited directly to the lender once the IRS processes your income tax return. Be VERY careful with refund anticipation loans. An obvious positive attribute of the loan is you get money quickly – before the season even opens. Another benefit is that, once the lender receives your refund, the loan is paid. But what happens if your tax refund is smaller than the anticipated income tax refund? You now will have an outstanding loan that will need to be paid back.
As with many income tax seasons, there are changes to the tax code. Important changes for the 2022 income tax season include:
Standard Deduction
The standard deduction for taxpayers who do not itemize deductions on Form 1040, Schedule A, has increased. The standard deduction amounts for 2021 are:
Married Filing Jointly or Qualifying Widow(er) – $25,100 (increase of $300)
Head of Household – $18,800 (increase of $150)
Single or Married Filing Separately – $12,550 (increase of $150)
Taxpayers who are 65 and Older or are Blind
For 2021, the additional standard deduction amounts for taxpayers who are 65 and older or blind are:
Single or Head of Household – $1,700 (increase of $50)
Married taxpayers or Qualifying Widow(er) – $1,350 (increase of $50)
Earned Income Credit (EIC)
By law, the IRS cannot issue your refund before February 15. This includes your entire refund, not just the part that’s related to the credit you claimed on your tax return. This law change, which took effect in 2017, helps ensure that taxpayers receive the refund they are due by giving the IRS more time to detect and prevent fraud.If you claimed the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), you can expect to get your refund by the first week of March if:
More taxpayers without qualifying children can qualify for the Earned Income Tax Credit (EITC). The maximum EITC credit is nearly tripled for these taxpayers and, for the first time, is made available to both younger workers and senior citizens.
EITC is available to both taxpayers without qualifying children and families with qualifying children. (Taxpayers filing married filing separately can claim this credit in 2021.)
EITC can be figured using 2019 income, as long as it was higher than 2021 income. In some instances, this option will give a larger credit.
For 2021, the maximum EITC credit increased to:
$6,728 with three or more children
$5,980 with two children
$3,618 with one child
$1,502 with no children
$51,464 ($57,414 if Married Filing Jointly) with three or more qualifying children
$47,915 ($53,865 if Married Filing Jointly) with two qualifying children
$42,158 ($48,108 if Married Filing Jointly) with one qualifying child
$21,430 ($27,380 if Married Filing Jointly) with no qualifying child
Investment Income
Taxpayers whose investment income is more than $10,000 cannot claim the EITC.
Standard Mileage
For 2021, the following rates are in effect:
56 cents per mile for business miles driven
16 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations (no change)
Education Benefits
American Opportunity Tax Credit for 2021 is gradually reduced (phased out) if taxpayers’ MAGI (Modified Adjusted Gross Income) is between $80,000 and $90,000 ($160,000 and $180,000 if Married Filing Jointly). Taxpayers cannot claim a credit if their MAGI is $90,000 or more ($180,000 or more if Married Filing Jointly).
Lifetime Learning Credit for 2021 is gradually reduced (phased out) if taxpayers’ MAGI is between $80,000 and $90,000 ($160,000 and $180,000 if Married Filing Jointly). Taxpayers cannot claim a credit if their MAGI is $90,000 or more ($180,000 or more if Married Filing Jointly).
Student Loan Interest Deduction begins to phase out for taxpayers with MAGI in excess of $70,000 ($140,000 for joint returns) and is completely phased out for taxpayers with MAGI of $85,000 or more ($170,000 or more for joint returns).
Virtual Currency
The IRS announced that convertible virtual currencies, such as Bitcoin, would be treated as property and not as currency, thus creating immediate tax consequences for those using Bitcoins to pay for goods and services. Taxpayers having transactions in virtual currencies are out of scope for the VITA/TCE programs.
Consider setting up a flexible spending account during your employer’s open enrollment period. Photo credit: Judy Corbus
Fall is open enrollment for health insurance and other employee benefits with many employers. One benefit available through many employers is a flexible spending account, or FSA. A flexible spending account is a special account into which you put money to pay for certain out-of-pocket health care expenses. You select the total amount you wish to contribute for the following year, and your contributions are divided out evenly over your paycheck schedule beginning January 1st.
A real perk to this account is you don’t pay taxes on your contributions – the money is deducted before taxes are calculated so you will save an amount equal to the taxes you would have paid on the money you have set aside.
The FSA funds can be used to pay for certain medical and dental expenses for you, your spouse if you’re married, and your dependents. Typical allowable expenses include:
Deductibles and co-payments
Prescription medications and over-the-counter medications with a doctor’s prescription
Medical supplies and equipment such as crutches, bandages, contact lenses and solution, hearing aid batteries, and blood sugar test kits.
Access to your funds varies by employer – some provide employees with a special debit card linked to their FSA to use to pay for expenses, while others require employees to submit a claim to the FSA for reimbursement.
You may contribute a maximum of $2,750 per year per employer. Your spouse also may contribute up to $2,750 in an FSA with their employer. Bear in mind that FSAs are “use it or lose it.” Funds generally must be used within the plan year; however, employers may offer a couple of options:
They may provide a “grace period” of up to 2 ½ extra months to use the funds.
They may allow you to carry over up to $550 per year to use in the following year.
Employers are not required to offer these options so it’s important to know your employer’s policy. If you have not used your money by the end of the plan year or grace period, you lose it so plan carefully.
To calculate how much to contribute, review this year’s medical expenses for routine doctor and dentist visit co-pays and charges, deductibles, prescription and OTC “maintenance” medications, and other medical expenses. If you anticipate an additional expense for the coming year, such as new eyeglasses, factor that in as well. It’s better to underestimate next year’s medical expenses and contribute a smaller amount than to overestimate and risk losing unused funds.
Some employers also offer dependent care flexible spending accounts to cover childcare expenses. They, too, offer tax savings and operate similarly to healthcare FSAs; check with your employer to see if they are available.
Use open enrollment to review your available options and premiums and compare with your current plan(s) to make sure you and your family are enrolled in the plan(s) that will best meet your needs at the most affordable price. Consider enrolling in a flexible spending account to save money on taxes – don’t leave money on the table!
