by Kristin Jackson | Jan 22, 2014
The Voluntary Income Tax Assistance (VITA) program offers free tax preparation to qualifying taxpayers.
Tax season starts officially on January 31, 2014. Now is time to start gathering documents and deciding on a tax preparer. For low to moderate income individuals and families, the VITA (Voluntary Income Tax Assistance) program maybe an option. Generally, VITA offers free tax help to people making less than $52,000.
When taxpayers use VITA everyone wins! The Federal government saves money due to increases in electronic filings and reduced filing errors. Local economies benefit when taxpayers receive their entire refund to spend in the communities where they live and work. Thanks to the help of Internal Revenue Service (IRS) trained and certified volunteers, qualified taxpayers save money on tax return preparation fees by receiving free high quality tax preparation service with access to e-file and direct deposit.
Volunteers will prepare:
- Form 982, Cancelation of Debt***
- Form 1040EZ, 1040A, 1040
- Schedules A,B,D***,C-EZ,EIC,R, SE
- Schedule E, Supplemental Income and Loss***
- Schedule C, Profit or Loss from a Business***
- Form 1040-V Balance Due Returns
- Form 1040 –ES Estimated Tax Payments
- Form 2016, Employee Business Expenses***
- Form 2441 Child and Dependent Care Credit
- Form 3903 Moving Expenses
- Form 5329 Additional Taxes on Qualified Plans and Other Tax-Favored Accounts (part 1)
- Form 5405, First Time Homebuyers
- Form 8863 Education Credits
- Form 8880 Credit for Qualified Retirement Savings Contributions
- Additional Child Tax Credit
- Form 8888 Allocation of Refund
- Form 88889 Health Savings Accounts***
- Form 8949 Sales and Other Dispositions of Capital Assets
- Form 1040-X Amended Returns***
***These services are limited and depending on the scope of the request may require the assistance of a paid preparer.
For assistance finding a VITA site near you contact your local UF/IFAS Extension Office http://solutionsforyourlife.ufl.edu/map/
or United Way (dial 211 or visit www.211.org).
by Ricki McWilliams | Oct 30, 2013
Last year, the Consumer Federation of America (CFA) and the Credit Union National Association (CUNA) found that 12 percent of people said they were planning to spend more during the holidays than in the previous year. That number was up from 2011, where only 8 percent planned on spending more than in the previous year. This year, help reverse this trend and plan on spending less and saving more. Remember, it’s the thought that counts, not the amount you spend. Helpful tips for spending less and saving more:
- Make a Budget and a List: Decide how much you can afford to spend and stay within that budget. Make a price list of all gifts and other holiday items you plan to purchase. Take the list with you shopping to avoid overspending and impulse buys.
- Comparison Shop: You can easily save more than 10 percent on most items, sometimes considerably more, by comparing prices at different stores. The Internet and smart phones have made comparison shopping that much easier. But when shopping online, shop wisely. Be sure you are purchasing from a secure site and review emailed statements for accuracy as you receive them.
- Make Time Your Ally: The reason to start sooner rather than later is that when you delay, you pay. At the last minute, you have to settle for something, and it might cost more than you had wanted or planned to pay. Another benefit to starting early: It gives you more time to find the “right” gift and avoid impulsive decisions, which too often leave you less happy with your purchase.
- See what’s in your supply drawer: You may have more wrapping paper, ribbons, unused cards, and gift boxes stored away from last season than you realize. Use up those holiday supplies first to trim down the amount you’ll have to buy this season.
- Find Some Low- or No-Cost Ways to Celebrate: Adding a few changes can ease the strain on your spending budget. For example, draw names to reduce the number of people you have to purchase gifts for; give homemade items; make your own gift wrap; or organize a potluck rather than trying to make, and pay for, the entire holiday meal yourself.
With the money you save on gifts, you can give yourself the gift of financial freedom by paying down debt or building your emergency savings fund.
Need help finding ways to save? Take the America Saves pledge to make a commitment to yourself to save and to receive emails and/or text messages to keep you motivated. (America Saves, managed by the Consumer Federation of America (CFA), is a non-profit research‐based social marketing campaign that seeks to motivate, support, and encourage low- to moderate-income households to save money and build wealth. Learn more at americasaves.org.
Source: Katie Bryan, America Saves Communications Director
Additional ways to make a difference in YOUR financial future:
FREE ON-LINE CLASSES: Participate from your office, home, or web-enabled device. It is easy! Visit the registration link to reserve your spot. Then log on the day of the webinar to participate. All webinars are scheduled 11:30am – 12:30pm (CST).
• Credit Use and PowerPay Debt Reduction Tool – October 30
This webinar will cover strategies for wise credit use, factors that impact credit scores, and methods to pay off debt using a free, self-directed debt reduction program called PowerPay. Registration link: http://bit.ly/PowerPayToday
• The Cost of False Health & Nutrition Promises – November 1
This webinar will cover some of the myths and misleading claims that induce consumers to spend time and money on health products & supplements that have not had enough scientific scrutiny. Registration link: http://bit.ly/FHCCost
• 5 Simple Steps to Seasonal Savings – November 13
This webinar will cover seasonal stressors, developing a holiday spending plan, alternatives to pricey gifts, and fine-tuning your financial plan for the holidays. Registration link: http://bit.ly/ssss2103
To view archived webinars, please click here.
by Elaine Courtney | Sep 4, 2013
Credit card debt is something that hangs over many Americans. According to the Federal Reserve, in April 2013, the average credit card debt equaled $3,364 per U.S. adult. This assumes that EVERY adult has a credit card and that those cards carry debt. Of course, not all adults own a credit card. Young Americans are among those ditching their credit cards.
The only way to reduce credit card debt is to make payments each month and not add to that debt. The main way to reduce this even faster is to pay more than the minimum payment each month.
Save Nearly $4,000 by Paying More than the Minimum Balance
By only paying the minimum monthly balance, you are guaranteed to pay this debt for a longer time and pay more in total cost. For example:
|
Total Credit Card Debt
|
Monthly Payment
|
Years to Pay Off
|
Total Cost
|
|
$3,364 (at 14.96% Interest)
|
$67.28 (min. payment)
|
19 Years 5 Months
|
$7,618.63
|
|
$3,364 (at 14.96% Interest)
|
$87.28 (min. payment +$20)
|
4 Years 4 Months
|
$4,533.67
|
|
$3,364 (at 14.96% Interest)
|
$107.28 (minimum payment +$40)
|
3 Years 4 Months
|
$4,225.11
|
|
$3,364 (at 14.96% Interest)
|
$167.28 (minimum payment +$100)
|
1 Year 1 Month
|
$3,841.40
|
Similar information is available on your monthly credit card statement. It will identify how long it will take you to pay your debt if you only pay the minimum or if you pay a little extra. More info on how to read your bill is found at: http://www.federalreserve.gov/creditcard/flash/readingyourbill.pdf
You also can use an online calculator to determine costs and payoff information.
http://www.federalreserve.gov/creditcardcalculator/
Want to avoid the minimum payment trap completely? Follow these tips from financial experts:
- Know What You Owe – Make a list of all outstanding debt balances with the names of creditors, monthly payments, and APRs (interest rates).
- Run the Numbers – Use the Minimum Payment Calculator http://www.federalreserve.gov/creditcardcalculator/ and calculate the cost of making minimum and larger payments on various amounts of debt.
- Use a “power payment” to pay off your debt. Visit http://powerpay.org/
- Read the Numbers – Check your credit card statements about the cost of making minimum payments.
- Pay Cash – Instead of making new purchases with a credit card and adding them to outstanding balances, save up and pay cash (or use a debit card) to avoid interest charges.
- Set a Goal – To know how much to save, set a target date and dollar amount and work backwards. For example, $3,000 for a big screen television in a year requires weekly savings of about $58 ($3,000 ÷ 52).
In the example above, finding an extra $100 a month to apply to credit card payments reduces the time it will take you to pay off this debt from over 19 years to just over one year AND saves you nearly $4,000.
Need help finding ways to save? Take the Florida Saves pledge to make a commitment to yourself to save and to receive emails and/or text messages to keep you motivated.
Contact your local UF/IFAS County Extension office to find more ways and resources to help you manage your money. Be sure to join us for the Women & Money Program Oct. 1, 8, & 15!
by Kristin Jackson | Jul 30, 2013
Evaluate your life insurance needs if you have children.
Life insurance is protection against the loss of income that would result if the insured passed away. According to Life Insurance and Market Research Association International (LIMRA), approximately 35 million households are uninsured and 50 million American have inadequate life insurance. September is national life insurance awareness month, but the time to start preparing is now. Take the first step and consider whether you need life insurance.
“The top two reasons people don’t buy life insurance are: competing financial priorities or because they think they cannot afford it,” (LIMRA, 2012). How do you know if you should give life insurance serious consideration or rethink whether you have enough? If one or more of the following situations apply to you or your family you may want to evaluate your need for life insurance:
- If you have children and both parents work
- If you have children and one parent works
- If you have children and you cannot afford to pay for their final expenses
- If you are a single parent
- If you have an outstanding shared debt
- If you are married and your spouse could not support your current lifestyle without your help
- If you are married and your spouse may have to care for one or more elderly parents
The above list is not exhaustive, but is meant to get you started thinking about the kinds of family or lifestyle situations when life insurance could benefit you in providing for your love one(s). For more research based information on life insurance you may want to read Understanding Life Insurance (http://web.aces.uiuc.edu/vista/pdf_pubs/LIFEINS.PDF) by University of Illinois Extension. Remember, family conversations about money can be difficult. “Can We Talk? Improving Couples’ Communications” (http://edis.ifas.ufl.edu/fy044) is a great refresher on effective communication before tackling a delicate topic like money.
by Judy Corbus | Jun 7, 2013
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Mortgage insurance is required if the down payment is less than 20 percent of the home’s sale price.
If you are shopping for a mortgage, be aware of changes to the Federal Housing Administration’s (FHA) mortgage insurance program. Most lenders typically charge a mortgage insurance premium (MIP) if the borrower puts down less than 20 percent of the appraised value or sale price on a home. Mortgage insurance protects the lender should the borrower default on the payments; the mortgage insurance pays off the loan. Mortgage insurance may be underwritten by private corporations or the federal government through FHA.
Once the borrower has paid down 20 percent of the loan (a loan-to-value ratio of 80 percent), they may discontinue paying the MIP. Federal law requires lenders to tell the buyer at closing how many years and months it will take for them to reach that 80 percent level and cancel the mortgage insurance. Lenders must automatically cancel mortgage insurance when the balance hits 78 percent. Until recently, the mortgage insurance on FHA loans could be dropped at the 78 percent loan-to-value ratio or after five years, whichever was longer.
Effective on FHA case numbers assigned on or after June 3, 2013, mortgages financed with less than a 10 percent down payment will be assessed the MIP until the end of the mortgage term or for the first 30 years of the term, whichever occurs first. In other words, most borrowers will pay mortgage insurance premiums for the life of the loan; they will not be able to drop the MIP at 78 percent loan-to-value. This will add to the overall cost of the loan.
If you are planning to purchase a home, do your homework. Check out the various mortgage options available through different lenders and shop around for the best interest rate. Remember, the larger your down payment, the smaller your mortgage and monthly payment. If you can put 20 percent or more down, mortgage insurance will not be required.
For more information, please contact your local UF/IFAS Extension Office.
Sources: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/fhahistory
http://portal.hud.gov/hudportal/documents/huddoc?id=13-04ml.pdf
http://www.bankrate.com/finance/mortgages/the-basics-of-private-mortgage-insurance-pmi.aspx
by Elaine Courtney | Apr 24, 2013
Have you ever been in this situation? You are with friends and they suggest going somewhere for dinner. Your finances are tight and you really can’t afford to eat out at the pricey place suggested. What would you do?
1. Admit you don’t have the funds and say, “I really can’t afford it.”
2. Keep quiet and go along—you’ll just order an appetizer and water.
3. You enjoy being with friends so go ahead and buy what you want!
Saying those words, “I can’t afford it,” is something many have struggled with at one time or another. Some may feel shame or embarrassment if they utter those words. But there’s nothing wrong with saying it! Money issues are often difficult to discuss or verbalize. Perhaps rephrasing it would help– “That’s out of my price range right now.”
It is important to be honest with yourself about what you can afford. Facing reality may be difficult but it can reduce your financial stress. Would you rather confront things now or when you are struggling to pay your credit card bill? However, do you even know if you can afford it?
Everybody needs to learn how to manage money. Good money management includes being able to pay your monthly bills, save for the future, and buy the things you need and want without creating unmanageable debt. A spending plan can be a helpful money management tool. For resources on spending plans and more, click here.
You probably have noticed that different people have different attitudes about money. Some people want to collect as much as they can, while others want to buy as many goods and services as they can. Recognizing your attitude about money can help you deal with situations where you say, “I can’t afford it.”
Recent articles by Jean Chatzky and the Wall Street Journal discussed having to admit when you can’t afford something.
Here are some tips for saying “I can’t afford it:”
• Know your situation and what you will say when presented with an offer: “Let me check my budget/spending plan.” “Let me think about that.” “That’s not in my plan for today. Maybe another time.”
• Understand the emotions that are involved. Friends often get their feelings hurt if you never want to go with them. Explaining your plans in advance can often help you avoid misunderstandings.
• Peer pressure encourages us to spend money when we can’t afford it. The constant barrage of advertisements or friends, family, or co-workers can exert pressure to part with your money. When you have a clear understanding of your money and financial goals, it may make it easier to resist. But it is not always easy!
Knowing and understanding your finances will help you find the courage to say, “I can’t afford it” or “That’s out of my price range.”
