Though the tax filing season is open for most taxpayers - whether they are filing electronically or on paper - on January 30th, the Internal Revenue Service will not be ready to accept returns claiming education credits until mid-February, the agency reported on Monday. Those affected by the delay are taxpayers filing form 8863, Education Credits, used to claim two higher education credits -- the American Opportunity Tax Credit and the Lifetime Learning Credit. Typically through...
Young people may never pay off their credit card debt. That’s the hypothesis that experts and reporters have made based on a recent study by an Ohio State economics professor. The study found that the younger generation of borrowers, those born between 1980 and 1984, has $5,500 more in credit card debt than their parents’ generation and $8,000 more in credit card debt than their grandparents’ generation. And worse, this particular generation of borrowers is taking...
In the past few years, prepaid cards, sometimes called prepaid debit cards, has risen in popularity. These cards are often advertised as a credit or checking account alternative for people with bad credit or no credit. However, these cards aren’t necessarily what they seem to be. Prepaid cards aren’t credit cards. While prepaid cards look almost just like credit cards and you swipe them the same way you’d swipe a credit card, the cards aren’t credit...
At the beginning of every year, millions of Americans get ready to file their income tax return. Some do it because they know they’re legally required to file (whether you’re required to file depends on your age, income, and filing status). Others are eager to receive a refund of taxes that were overpaid throughout the year. You have several options for filing your taxes. You want to choose the one that will maximum your refund and...
Imagine walking to the cash register of a convenience store with a bag of chips and a soda, intending to pay with your credit card, and seeing a sign that requires a minimum $10 purchase for credit card use. If you don’t have cash or an alternate method of payment, what are you going to do? Put the snacks back on the shelf, or pick up a few more items, enough to meet the $10 requirement....
You probably wouldn’t imagine something as simple as an unreturned library book or movie would hurt your credit. After all, you only kept the books out a few days past the date. But, libraries around the country are turning to collection agencies to handle fines that patrons neglect to pay. You probably already know how the library system works. When you check out something from the library, you agree to return it by the due date....
In an effort to prevent another mortgage crisis, the Consumer Financial Protection Bureau has published a new rule that’s intended to ensure that homebuyers end up with mortgages they can afford, barring unforeseen changes in income or other expenses.We know the mortgage crisis was caused, in part, because many homebuyers allowed to take out mortgages they couldn’t afford over the long term. Some of the borrowers qualified for adjustable rate mortgages with initially low interest rates,...
Americans who were able to get a mortgage and bought a home last year took advantage of the low prices and great mortgage rates in the most affordable housing year on record. Housing affordability set an annual record in 2012, the National Association of Realtors reported on Wednesday.In 2012, the NAR’s National Housing Affordability Index hit its record high at 194, topping the previous record of 186 in 2011. The index is based on the relationship...
Your mortgage lender may give you the option of skipping a mortgage payment, for example, at the beginning of your mortgage or refinance. While it may seem like they’re doing you a favor, skipping that payment could actually cost you thousands of dollars by the time you’re done paying off your loan. Lender-Allowed Skipped Payments Skipping a payment, one that your lender is allowing you to skip, is easy in the short-term, but it actually costs...
Almost two-thirds of Americans admit that their financial troubles are of their own doing, according to a December poll by the National Foundation for Credit Counseling. Of poll respondents, 63% said their financial woes self-inflicted for reasons such as overspending or being financially unorganized, and 37% said their problems were caused by events beyond their control such as job loss or medical bills. "The poll results are encouraging, as the first step to correcting a problem...
