Take Full Advantage of the Saver’s Tax Credit

If you elected to save for your retirement in our 401(k) plan, you may be eligible to claim a special tax credit of up to $1,000.  In order to qualify for the Saver’s Credit you must be:

 

§  18 year of age or older

§  Not a full-time student

§  Not claimed as a dependent on someone else’s return

 

In addition, you must meet one of the following financial criteria:

§  File your taxes singly with an income of $27,750 or less.

§  File your taxes as head of household and have an income of $41,625 or less.

§  File your taxes jointly with an income of $55,500 or less.

 

The tax credit ranges from 10 to 50 percent of each $1.00 you contribute, up to the first $2,000 you put in your 401(k).  That’s between $200 and $1,000 directly off the income taxes you pay.  If you and your spouse both contribute to a 401(k) plan, you may combine your contributions as joint filers, or report separately as single filers.  The amount of your tax credit depends on the amount of your adjusted gross income.  The income limits and applicable credit rate allowance are given in the table below.

 

The tax credit is in addition to other favorable tax treatments for your 401(k) participation, such as the deferral of income tax on your contributions.  Please note that this credit applies only as a reduction to your income tax liability, not as cash in hand via a refund.

 

To take advantage of the Saver’s Credit, you or your tax preparer will need to include Form 8880, Credit for Qualified Retirement Savings Contributions, when you file your tax return.  The government has established this program because it wants to reward low- and moderate-income workers who save for retirement. 

 

Tax Credit for Different Income Levels

	Adjusted Gross Income
Credit	Single Filers	Head of Household	Joint Filers
50% of Contribution	0 - $16,750	0 - $25,125	0 - $33,500
20% of Contribution	$16,751 - $18,000	$25,126 - $27,000	$33,501 - $36,000
10% of Contribution	$18,001 - $27,750	$27,001 - $41,625	$36,001 - $55,550
Credit not available	More than $27,750	More than $41,625	More than $55,500

This is for general information only.  Please consult your tax advisor for more information.

 

FREE Web-Based Paycheck Calculators

http://www.paycheckcity.com/

Free File Home - Your Link to Free Federal Online Filing

http://www.irs.gov/efile/article/0,,id=118986,00.html?portlet=4

No Pay Raises This Year

Rating:	★
Category:	Other

I just exchanged a few text messages with a friend & now I'm wondering how many others are in the same boat - no raises, bonuses, perk(s) elimination, etc., due to the current economic situation we're in.

PS I'll still get my assist manager's bonus & I'm still on the payroll and for that, I'm thankful!

Credit Security Freeze Laws by State

http://www.consumersunion.org/campaigns/learn_more/003484indiv.html
You will find some helpful information regarding freezing your credit, voluntarily.

$5,000+ just damn gone.....

Rating:	★
Category:	Other

401k quarter end statements came out today. It's probably safe to say, I'll die at this desk. *sigh*

ATMs that Dispense $10 Bills??

Rating:	★
Category:	Other

Anyone know of any nationwide bank ATMs that dispense $10 bills? US Bank doesn't. Commerce used to but I'm not sure if they still do or not.

Craigslist vs. eBay

As I was watching one of my fav reality shows, Clean House, Niecey Nash said something that struck a cord with me.  I quote, "For every new something you bring in, something needs to go out."

I have way more everything (with the exception of money) than I really need.  I have started cleaning my clutter by helping a few relatives who are just starting out.  However, as I look into these closets, I realize I have a problem - I bring in more than I send out.

I did try my hand at selling my never worn shoes on eBay.  I think I posted 5-6 pair and only sold 1.  Luckily, she was pleased with her purchased.

I have a lot of stuff that's too good to give away, in my opinion of course, and would like to recoup a few of my dollars, if I can.

For those who are experienced with selling goods & wares via Craigslist and eBay, which do you prefer & why?

Thanking you in advance.

Recent Stock Market Weakness

I got this from my financial advisors & think it's worth sharing with you .

 

Date:                July 11, 2008

 

 

We have just experienced the worst June for the stock market since the 1930s and this means your June 30^th statements are not going to be pretty.   

 

Both the Dow Jones and S&P 500 Index have now officially entered bear market territory, as measured by a 20 percent decline from their peak levels.  Many international markets are performing even worse than domestic markets.   It is hard to avoid being reminded of these things especially for those of us masochistic enough to “enjoy” watching financial news reports. 

 

 

As we discussed in our correspondence in January of this year entitled “Some Thoughts on Market Volatility,” periods of negative returns are to be expected.   However, predicting a negative market ahead of time is a loser’s game.

 

 

There is an English Proverb from the 1600s that says “He that cannot abide a bad market, deserves not a good one”.  The same holds true today more than 300 years later.    

Bad markets happen from time to time, approximately every four to five years as measured by some indexes.  If history teaches us anything, it is that markets don’t go down forever. In fact, unless this time it really is different, we believe markets are likely to be higher in the future than they are today. 

 

 

Once again, 401(k) investors currently have a wonderful opportunity of buying equities at a 20% discount to where they were previously trading.  It is at precisely times like these that shrewd investors are excited to be in the market.  Things can certainly get worse before they get better.  However, we believe over the long term equity prices will be higher in the future than they are currently, and investors that can be buyers when others are sellers will benefit over the long term.   

 

 

The sentiments in the English proverb from the 1600s are true today.  Don’t panic in a down market.  View times like these as buying opportunities.  Stay true to your investment approach and you are likely to be rewarded in the long term. 

What's Your Home Worth?

http://www.zillow.com/
According to this, my house has appreciated very well. I knew it had appreciated some due to the new and re-done homes in the area. Not to mention the revitalization of the the restaurants and nightlife. "The Grove" is on and popping! :o)

Cash vs. Debit Card

Which do you prefer?

Cash only.

 

 1

Debit only.

 

 3

A combination of both.

 

 7

Girl, please. You have to have money to have this issue.

 

 0

I am a staunch supporter of anything that will make my life & job a little easier. {Folks who don't use direct deposit & always asking for their checks early make my ass tired, but that's for another day.}

Like many people I use my Visa debit card, regularly.  One of my connects has a recent blog regarding debit card use for rental cars.  I personally never do this.  I'd rather use my credit card. 

One commenter stated that she doesn't use a debit card - cash or AmEx (when plastic is necessary). 

These days, I rarely have more than $20-$40 cash on me & when I do need it, I'll run to an ATM or inside a store, make a purchase & use the cash back feature.

I'd much rather lose the debit card than my hard earned cash.  There's a reason I feel this way.  I recently wrote about my own snafu when it came to cash but I was lucky to have it replaced. 

Financial Faux Pas

Have you ever made a costly mistake with your own finances, cash, credit, etc.?

I ruined my credit freshman year with bunch a credit cards I didn't need.  I took me damn near 10 years to clean it up & some of the forgotten items still periodically come back to haunt me.  {Damn Zales!  I don't even remember what the hell I bought.}

It took many a payment arrangements, negotiating, finagling and several tax return checks, but I knew I had to get it done if I didn't want garnishments out the ass.  I also knew I needed to take care of it so I wouldn't need Vaseline when I was ready to purchase my home.  In the end, my efforts paid off.

One other incident (kinda careless on my part) happened at the ATM.  I drove up at about 630 am after I put the boy on the school bus.  I checked my balance, got my weekend pocket money & headed to work.  It was the 1st of the month, so I took a smoke break (even though I don't) to write checks (pre on-line banking) for my bills.  I have a habit of checking my balances everyday {and twice on Sunday} and before I pay large bills.  Keep in mind I had just checked when I was at the ATM a few hours before.  I dial up, listen & my checking account is short $300 (part of my rent money)!  My heart started racing.  I checked my savings & it was $300 short also.  WTF?!?!  All I could think was "$600 in the damn wind!"

I dumped the contents of my purse on my desk.  Damn....I drove off & left the damn card in the machine, without cancelling the transaction.  I called my friend/co-worker in a panic. She called her husband (banking pro) and he told me what to do. 

I called the bank & explained to about 50-11 people what happened.  The next day I had to go in and sign an affidavit.  A day or so later, my banker called & said my $$ would be back in my account by 300 pm.  Thank you Lord!   I certainly didn't expect it because it was my fault.  The money didn't make or break me, but damn, that's a lot to lose in one sitting.

The person who took the money certainly wasn't expecting to find my open access card in the machine & they were caught on camera.

Drug Tested & Save 25% on Your Rent

Would you take the test?

Hell yeah! I'm clean as a whistle.

 

 13

Maybe. Depends on when they want to test me.

 

 0

Hell naw!

 

 1

I pulled this question from our local radio show:

If your landlord asked you to be tested for illegal drug use & offered 25% off of your monthly rent for passing results, would you take the test?

Take the poll & let's discuss.

Black Folks & EIC Tax Returns

UPDATE:  I drove past a Salama Market (y'all already know) today & they have a big ass WE CASH INCOME TAX CHECKS sign hanging at the front entrance.  I had to find my 360 post from last year.

I went to my local grocery store the other day & saw this big ass sign on the customer service counter:

WE DO NOT CASH INCOME TAX REFUNDS!

Will someone please tell my why in the year of our Lord, 2007, grown ass men & women are still walking around without bank accounts?  Why are we trying to cash tax refunds at the grocery store?  Why are we still cashing payroll & tax refund checks at Western Union & the corner liquor store, while paying ri-damn-diculous fees?

Even if your credit is jacked up, you can open a savings account with several financial institutions. My ex got into CheckSystems (bad check writers know what this is) when he was with his ex. We couldn't get him a checking account anywhere but Bank of America did allow him to open a savings account & gave him an ATM card. This allowed him to have direct deposit of his payroll which gave him the means to save the dough to clear the bad checks up.

My mother taught me to bank when I was a teen. She taught me the importance of having & maintaining a bank account even if there was little to nothing in it. She also helped me realize that if I didn't "cash" my check, I was less likely to spend it all in one place....since it wasn't "in my pocket" to burn that dreadful hole.

I made some terrible mistakes in my late teens/early twenties with my credit. Shopping like there was no tomorrow. Me & my baby in the latest gear, etc., etc. It took me damn near a decade, but I finally got it all cleared up. I knew I wouldn't be able to get a decent interest rate on a home & car, once I was ready, if I had bad debt.

Now people, instead of buying a car you can't afford to pay taxes on or maintain after the fact, furniture that the kids will only destroy, that expensive throwback jersey, $200 sneakers, that Coach bag that you will never have any money in, use the Earned Income Credit (EIC) refund to get your credit straight....damn black people...we have got to do better!

My sister & BFF are perfect examples:  They've gotten returns of at least $3,500 for the last 5+ years and don't have jack shit to show for it!  Nothing, nada, zilch, zero!

I can honestly say I miss EIC.  The largest check I had received was just shy of 3 grand.  I did do some frivolous things with that money (designer clothes & kicks) but for the most part it was big ticket items: clearing bad debt (3-4 creditors got paid every year - I refused to pay all of them at once), buying my 1st & 2nd cars, washer/dryer, and bedroom furniture & living room furniture....shit I couldn't afford on the regular.  I also started an account for the boy.

I say if you must spend your EIC, spend it wisely! Buy a washer/dryer, stove, refrigerator, get Kee-Kee some braces, buy Man-Man some new eyeglasses, etc. Leave the 50 inch plasma screens & all that unnecessary shit in the store!

Folks get those EIC checks & you would think they hit Lotto......*smh*

This has been another Precious Mo' ment.

HR QOD - Retirement Savings

How much do you have stashed away?

What's a retirement account?

 

 0

Less than $1,000

 

 0

$1,001 - $5,000

 

 5

$5,001 - $10,000

 

 1

$10,001 - $15,000

 

 1

$15,001 - $20,000

 

 1

$20,001 - $25,000

 

 1

$25,001 - $30,000

 

 0

$30,001 - $40,000

 

 0

$40,001 +

 

 2

Let's face it, we (i.e., all of us!) aren't getting any younger. 

Social Security will probably be a thing of the past by the time us Generation Xers are ready to retire....especially if we're depending on these Generation Yers to bankroll us.  Ha!

I don't know about y'all but I don't wanna work full-time past the average retirement age, unless of course I take up my dream occupation of Professional Traveler.

Thinking ahead to the Golden Years, on average, how much have you saved towards retirement (401k, 403b, IRA, etc., including vested employer contributions)) account(s)?

Unclaimed Property in Missouri

https://www.treasurer.mo.gov/search.asp
If you've ever lived or worked in the State of Missouri, you might have something coming to you.