Get Ready…Get Set…SaveUp.com!

Posted on August 11, 2018 by FCA Admin

Are you ready for a new financial revolution?  If so, then SaveUp is for you. Save up is a new rewards program. Best of all, the goal of SaveUp is to encourage financial literacy and financial independence. So how does SaveUp accomplish this?  SaveUp rewards good financial behaviors by giving people the opportunity to win prizes.

In order to play, users must register their accounts with SaveUp. Credits are earned for good financial habits such as depositing money into a savings account or paying down debt. These credits then turn into valuable prizes. Examples of accounts that can be registered with SaveUp include savings, IRAs, mortgages, and even credit cards. Best of all, SaveUp is completely free and completely secure. 

So get ready…get set… and SaveUp in 2012! Users can register for SaveUp at SaveUp.com.

Posted in credit cards, education, investing, loans, personal finance, Savings | Comments Off on Get Ready…Get Set…SaveUp.com!

A Summer Adjustment Can Prevent a Tax-Time Surprise

Posted on July 18, 2017 by FCA Admin

Issue Number:    IRS Summertime Tax Tip 2014-10

Inside This Issue

 

When it comes to filing a federal tax return, many people discover that they either get a larger refund or owe more tax than they expected. But this type of tax surprise doesn’t have to happen to you. One way to prevent it is to change the amount of tax withheld from your wages. You can also change the amount of estimated tax you pay. Here are some tips to help you bring the amount of tax that you pay in during the year closer to what you’ll actually owe:

  • New Job.   When you start a new job, you must fill out a Form W-4, Employee’s Withholding Allowance Certificate. Your employer will use the form to figure the amount of federal income tax to withhold from your pay. Use the IRS Withholding Calculator on IRS.gov to help you fill out the form. This tool is easy to use and it’s available 24/7. •    Estimated Tax.  If you get income that’s not subject to withholding you may need to pay estimated tax. This may include income such as self-employment, interest, dividends or rent. If you expect to owe a thousand dollars or more in tax, and meet other conditions, you may need to pay this tax. You normally pay it four times a year. Use the worksheet in Form 1040-ES, Estimated Tax for Individuals, to figure the tax. •    Life Events.  Make sure you change your Form W-4 or change the amount of estimated tax you pay when certain life events take place. A change in your marital status, the birth of a child or buying a new home can change the amount of taxes you owe. You can usually submit a new Form W–4 anytime. •    Changes in Circumstances.  If you receive advance payment of the premium tax credit in 2014 it is important that you report changes in circumstances, such as changes in your income or family size, to your Health Insurance Marketplace. You should also notify the Marketplace when you move out of the area covered by your current Marketplace plan. Advance payments of the premium tax credit provide financial assistance to help you pay for the insurance you buy through the Health Insurance Marketplace. Reporting changes will help you get the proper type and amount of financial assistance so you can avoid getting too much or too little in advance.

For more see Publication 505, Tax Withholding and Estimated Tax. You can get it on IRS.gov, or call 800-TAX-FORM (800-829-3676) to get it by mail.

Additional IRS Resources:

  • Publication 5152: Report changes to the Marketplace as they happen  English | Spanish

IRS YouTube Videos:  

 

IRS Podcasts:

 

 

 

Note. From Issue Number: IRS Tax Tip 2014-10.  Copyright 2014 by Copyright Holder. Reprinted with permission.

Posted in education, personal finance, Taxes | Comments Off on A Summer Adjustment Can Prevent a Tax-Time Surprise

The Return of Layaway

Posted on May 13, 2017 by FCA Admin

j0228965

Do you remember when your mom would put that big purchase on layaway?  It seems like it was so long ago.  Not anymore.  In these tough economic times, many retailers are offering layaway as an option for many of their customers.  This makes it more flexible and will give customers the option of not paying with their credit cards. Some of the top retailers offering layaway plans include Kmart, Toys R Us, and even Marshalls.

Although layaway benefits consumers, it can be costly to some retailers.  Several retailers have chosen to not offer layaway. It costs too much money if the customers fail to make the payments. But don’t get discouraged. A website called e-layaway.com, www.elayaway.com makes it simple to participate in a layaway program through the internet.  This site also provides money savings tips.  Signing up is easy and you can start participating instantly.   E-layaway gets my vote for ease of use and affordability for customers.

Have you used E-layaway?  Tell us what you think of the site?

Follow us on Twitter.: http://twitter.com/1stCapAdvise

Posted in credit cards, personal finance, Savings | Tagged , , | Comments Off on The Return of Layaway

Personal calls on business cell phones. Is it time to pay up?

Posted on January 16, 2017 by FCA Admin

The IRS is looking to revamp a 2o year old law regarding employee use of company cell phones.  The law requires employers to track the amount of time employees spend on personal calls.  This is considered benefit income and can be taxed.  This law was not very popular because of the tedious task of tracking employee personal phone calls.   But now the IRS is receiving increasing inquires on reviving this law.  From now until September 4th, the IRS is accepting comments regarding the proposed changes.  The IRS has come up with three possible methods of how this law will work.

The methods are:

  • Minimal Personal Use Method: This method requires that employers limit calls to minimal use and track the minimal use by employees.
  • Safe Harbor Substantiation Method: This method requires an employer to use a percentage to determine the portion of time considered business use and non business use.
  • Statistical Sampling Method: Employers would use a statistical sampling method to determine the amount of time considered business and non business use.

 

For more information, visit the IRS website at

http://www.irs.gov/govt/fslg/article/0,,id=209572,00.html.

 What are your views on these proposed changes?

 

Posted in Business Savings, Taxes | Tagged | Comments Off on Personal calls on business cell phones. Is it time to pay up?

Four Tax Tips about Your Unemployment Benefits

Posted on November 21, 2016 by FCA Admin

Issue Number:    IRS Tax Tip 2013-26

Inside This Issue

If you received unemployment benefits this year, you must report the payments on your federal income tax return.

Here are four tips from the IRS about unemployment benefits.

1. You must include all unemployment compensation you received in your total income for the year. You should receive a Form 1099-G, Certain Government Payments. It will show the amount you were paid and the amount of any federal income taxes withheld from your payments.

2. Types of unemployment benefits include:

  • Benefits paid by a state or the District of Columbia from the Federal Unemployment Trust Fund
  • Railroad unemployment compensation benefits
  • Disability payments from a government program paid as a substitute for unemployment compensation
  • Trade readjustment allowances under the Trade Act of 1974
  • Unemployment assistance under the Disaster Relief and Emergency Assistance Act

3. You must include benefits from regular union dues paid to you as an unemployed member of a union in your income. However, other rules apply if you contribute to a special union fund and your contributions are not deductible. If this applies to you, only include in income the amount you received from the fund that is more than your contributions.

4. You can choose to have federal income tax withheld from your unemployment benefits. You make this choice using Form W-4V, Voluntary Withholding Request. If you complete the form and give it to the paying office, they will withhold tax at 10 percent of your payments. If you choose not to have tax withheld, you may have to make estimated tax payments throughout the year.

For more information on unemployment benefits see IRS Publications 17, Your Federal Income Tax, or IRS Publication 525, Taxable and Nontaxable Income. You can download these free booklets and Form W-4V from the IRS.gov website. You may also order them by calling 800-TAX-FORM (800-829-3676).

Additional IRS Resources:

 

Note. From Issue Number: IRS Tax Tip 2013-26.  Copyright 2014 by Copyright Holder. Reprinted with permission.

Posted in Uncategorized | Comments Off on Four Tax Tips about Your Unemployment Benefits

Additional Protection for US Consumers

Posted on October 1, 2016 by FCA Admin

President Obama wants to create the Consumer Financial Protection Agency.  The purpose of the agency is to protect consumer credit and their banking transactions.  Additionally, The Federal Reserve Bank will have the added responsibility of supervising large financial institutions and monitor risk within the financial system.  Obama even wants to give the Consumer Protection Agency some of the current responsibilities of the Federal Reserve Bank and the Treasury Department.  Obama’s goal is to prevent big bank failures such as Lehman Brothers. He further wants to protect consumers from credit risks from   bad lending practices due to mortgages and credit cards.   It is hoped that the new agency will fine companies who have abusive practices and will help prevent another recession.

Do you think the Consumer Financial Protection Agency will serve its intended purpose?

Posted in Banking, consumer laws, personal finance | Tagged , | Comments Off on Additional Protection for US Consumers

IRS Offers Tips to Reduce Big Refunds and Prevent Tax Bills

Posted on September 6, 2016 by FCA Admin

Issue Number:    IRS Summertime Tax Tip 2012-22

Inside This Issue

The Internal Revenue Service reminds taxpayers that it’s not too late to adjust their 2015 tax withholding to avoid big tax refunds or tax bills when they file their tax return next year.

Taxpayers should act soon to adjust their tax withholding to bring the taxes they must pay closer to what they actually owe and put more money in their pocket right now.

Most people have taxes withheld from each paycheck or pay taxes on a quarterly basis through estimated tax payments. Each year millions of American workers have far more taxes withheld from their pay than is required. Many people anxiously wait for their tax refunds to make major purchases or pay their financial obligations. The IRS encourages taxpayers not to tie major financial decisions to the receipt of their tax refund – especially if they need their tax refund to arrive by a certain date.

Here is some information to help bring the taxes you pay during the year closer to what you will actually owe when you file your tax return.

Employees 

  • New Job. When you start a new job your employer will ask you to complete Form    W-4, Employee’s Withholding Allowance Certificate. Your employer will use this form to figure the amount of federal income tax to withhold from your paychecks. Be sure to complete the Form W-4 accurately.
  • Life Event. You may want to change your Form W-4 when certain life events happen to you during the year. Examples of events in your life that can change the amount of taxes you owe include a change in your marital status, the birth of a child, getting or losing a job, and purchasing a home. Keep your Form W-4 up-to-date.

You typically can submit a new Form W–4 at anytime you wish to change the number of your withholding allowances. However, if your life event results in the need to decrease your withholding allowances or changes your marital status from married to single, you must give your employer a new Form W-4 within 10 days of that life event.

Self-Employed

  • Form 1040-ES. If you are self-employed and expect to owe a thousand dollars or more in taxes for the year, then you normally must make estimated tax payments to pay your income tax, Social Security and Medicare taxes. You can use the worksheet in Form 1040-ES, Estimated Tax for Individuals, to find out if you are required to pay estimated tax on a quarterly basis. Remember to make estimated payments to avoid owing taxes at tax time.

Publication 505, Tax Withholding and Estimated Tax, has information for employees and self-employed individuals, and also explains the rules in more detail. The forms and publication are available at IRS.gov or by calling 1-800-TAX-FORM (1-800-829-3676). 
Links:

  • Form W-4, Employee’s Withholding Allowance Certificate
  • Form 1040-ES, Estimated Tax for Individuals
  • Form W-4P, Withholding Certificate for Pension or Annuity Payments
  • Publication 505, Tax Withholding and Estimated Tax

 

Note. From Issue Number: IRS Tax Tip 2012-22. Copyright 2013 by Copyright Holder. Reprinted with permission.

Posted in consumer laws, education, employment, investing, loans, personal finance, Savings, Taxes | Comments Off on IRS Offers Tips to Reduce Big Refunds and Prevent Tax Bills

Rent or buy? You decide.

Posted on March 3, 2016 by FCA Admin

These days the buzz word is that it’s a great time to buy. But deciding whether to rent or buy is an individual decision that should be considered on a case by case basis.  It is not wise to buy just because someone tells you that it’s a great time to buy. 

What are some of the factors to consider?

  • Your income and expenses.  This is number one on my list. 
  • Falling equity in current homes. Homes are losing and continue to lose their value. 
  • Rent is cheaper: In most cases this is true. Renters do not have to pay for property tax or home insurance.
  • Benefits of home ownership: There are many benefits such as building equity and tax breaks.

Some smart moves to make right now:

If you’re still unsure of what to do, consider using a mortgage calculator to help you determine the costs of home ownership.  Bankrate.com has great calculators that can help you with this assessment.  Another option is to consider the price to rent ratio.  This is determined by dividing the price of  a home by the annual rent you’d pay on a comparable home.  If your answer is 15 or higher, than it is better to rent.

What are your thoughts?

 

Posted in mortgage, personal finance | Tagged , | Comments Off on Rent or buy? You decide.

Paying Debt versus Saving

Posted on February 21, 2016 by FCA Admin

During the current economic crisis, many people find themselves wondering whether it is more important to pay down debt versus building up a savings account balance.  Some of the top financial experts are recommending that people build up their savings versus paying down debt.  Suze Orman recently recommended that people build up their savings and pay the minimum balance on credit cards.  Does this make any sense to you?  Well, let’s look at it from another viewpoint.  Credit Card companies have changed many of their terms without notifying card holders.  Some are reducing credit limits and even canceling accounts.  Many people believe that they should pay the credit card debt.  Then in case of an emergency, they can use the balance remaining on the credit card.  During this current recession, you can’t really depend on credit cards any more.  And that’s why it is recommended that you save first and then pay the minimum on your credit card balance.  See the link below for Suze’s expert advice.

http://www.suzeorman.com/igsbase/igstemplate.cfm?SRC=SP&SRCN=suzescoop&GnavID=1&SnavID=134&NewsID=177

Posted in personal finance | Tagged | Comments Off on Paying Debt versus Saving

New IRS YouTube Video – How to Check on Your Refund

Posted on January 21, 2016 by FCA Admin

 

Issue Number:    Special Edition IRS Tax Tip 2013-06

 

With the April 15 tax filing deadline approaching, the Internal Revenue Service created a new YouTube video to provide taxpayers more details and tips to check on their tax refund.

The new video How to Use the Where’s My Refund? Tool  offers in-depth information about how the redesigned “Where’s My Refund” tool on IRS.gov works. The IRS’s previous refund YouTube video When Will I Get My Refund? has already received more than 750,000 views. The IRS expects this video will also be a helpful resource for taxpayers.

The IRS issues more than nine out of 10 refunds to taxpayers in less than 21 days. Even though the IRS issues most refunds in less than 21 days, some tax returns will require additional review and take longer.

The refund video released today is one of several YouTube videos the IRS created to help taxpayers navigate this year’s filing season. Other top videos that help people prepare their tax returns or resolve tax problems include:

The IRS YouTube channels offer short, informative videos in English, American Sign Language and other languages. IRS currently has more than 100 videos, which already have more than 4 million views.

 

 

 

 

Note. From Issue Number: IRS Tax Tip 2013-06.  Copyright 2014 by Copyright Holder. Reprinted with permission.

 

Posted in consumer laws, education, investing, personal finance, Savings, Taxes | Comments Off on New IRS YouTube Video – How to Check on Your Refund