Articles

Get Your Money: Ensure You Receive a Stimulus Payment

The IRS has two websites to help with stimulus payments: One for non-tax filers to register to receive their economic impact payment and a new “Get My Payment” tool. Background As a response to the COVID-19 pandemic, the government is sending $1,200 to single taxpayers with income less than $75,000 ($98,000 with phaseouts). $2,400 is being sent to married taxpayers with income less than $150,000 ($198,000 with phaseouts). An additional $500 is being sent for each

Key 2020 Coronavirus Tax Changes

Coronavirus uncertainty abounds. Thankfully, by monitoring tax changes on your behalf, we can work together to navigate the right path for you and your family. Here is a round-up of tax-related laws and information to help with tax planning for 2020. Early distribution penalty waivedThe 10% early distribution penalty on up to $100,000 of retirement withdrawals for coronavirus-related reasons is waived during 2020. New tax rules allow tax liabilities on these distributions to be paid over

Appraisals no longer on certain home sales

Starting in October 2019, some home sales under $400,000 no longer require an appraisal. Previously, appraisals were not required on home sales of $250,000 and below. But federal regulators just approved a rule that will raise the threshold for the first time in 25 years. Loans that are partially insured by, or eligible for sale to, a government agency such as the FHA, VA, Fannie Mae or Freddie Mac will still require an appraisal, per each

FHA reduces cash-out refinancing limits

The Trump administration is limiting the amount of cash borrowers can withdraw from their homes under the Federal Housing Administration (FHA) financing program. As of September, the FHA now limits cash-out refinancing to 80 percent of the home value. Previously, borrowers could take out up to 85 percent of their property’s equity. The new FHA rule brings the limits in line with standards already in place at Fannie Mae and Freddie Mac. Veterans Administration (VA) loans

Will home equity affect financial aid for your college student?

With home values rising and college application time upon us, you may want to look at how home equity could impact financial aid decisions at your son or daughter’s school of choice. Nearly every school requires families to complete the Free Application for Federal Student Aid (FAFSA), which asks for basic income and asset information. However, more than 200 institutions nationwide also require the College Scholarship Service (CSS) profile to determine aid. The CSS questionnaire includes

Home-flipping seminars under scrutiny

Have you heard those radio ads for house-flipping seminars endorsed by HGTV stars? Did the sales pitch sound too good to be true? The Federal Trade Commission (FTC) thinks so. The FTC filed a complaint against Zurixx, a company that hosts real estate seminars endorsed by “Flip or Flop” stars such as Tarek El Moussa and Christina Anstead and “Love It or List It” host Hilary Farr, and others. According to the FTC complaint, Zurixx makes

Challenging a quitclaim deed

The next-door neighbors convinced your aunt to sign over the deed to her house. Your stepfather’s long-lost son came to visit and walked away with a quitclaim deed to the family cottage. What do you do when you suspect someone did something “fishy” to get his or her name on a deed? A quitclaim deed is a legal tool that allows one person to release the interest they have in a piece of property. In most

How home selling has shifted in the past decade

If you haven’t sold a home in the last 10 years, you might be surprised by how much trends and expectations have changed over the years. Here are some leading factors changing the home sale market today: Real estate sites: More than 90 percent of homebuyers use the internet as one of the primary ways to find a home, according to the National Association of Realtors (NAR). With the popularity of online tools like Zillow and

Raising grandchildren? EITC may be an option

Working grandparents who support their grandchildren may qualify for the earned income tax credit, which could reduce the amount they pay in taxes by thousands of dollars, or allow them to receive a refund. The earned income tax credit is a benefit for working people with low to moderate incomes who have dependents, a category that includes grandparents. (Taxpayers without a dependent may also qualify, but it is more difficult.) To be able to claim the credit,

Most are taking Social Security at the wrong time

A recent report found that almost no retirees are making financially optimal decisions about when to take Social Security and are losing out on more than $100,000 per household as a result. The average Social Security recipient would receive 9 percent more income in retirement if he or she made a financially optimal decision. When claiming Social Security, you have three options: you may begin taking benefits between age 62 and your full retirement age, you

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