SafeAmerica Credit Union

coronavirus

• By Kevin Alvarez

The Impact of Stimulus Payments on Your Taxes

What a year 2020 has been! New Year’s celebrations were barely over when the coronavirus turned things topsy-turvy. But one bright spot for 159 million people was the $1,200 Economic Impact Payment that appeared in their mailbox or checking account.

If you didn’t receive a payment, you may be wondering, why? And if you did, you may be wondering, what’s the catch? We are here to help put your mind at ease, so let’s tackle your questions, one by one.

Do I owe tax on the money I received? That’s an easy one: No. The stimulus payment was designed to impact the economy, not your taxes, so it won’t reduce your 2020 refund or increase your tax due.

I didn’t get a payment – why? If your income for 2019 or 2018 was over $75,000 ($150,000 if you filed jointly, $112,500 if you were head of household), then your payment was reduced by $5 for every excess $100 you earned. And if you didn’t file a tax return for either year, you may not have gotten a payment. But don’t despair, you still may be entitled to payment.

Really? What can I do now? If you were supposed to file a 2019 tax return and didn’t, file right away. If your income was too low to file, at IRS.gov you can click on the tab marked “Non-filers” and fill in your basic information. If the IRS determines you are eligible for a payment, they will send it to you.

What if my income has gone down? If your 2019 income was too high for you to receive a payment, but your income this year is much lower, you are in luck. You can claim your stimulus payment on your 2020 income tax return, and it increase the refund you receive (or reduce any tax due).

My 2020 income is higher than in 2019 – will the government want the money back? No. If you received a stimulus payment based on lower income in 2019, that payment is yours to keep even if your income increased above the threshold in 2020.

When it's time to file your taxes TurboTax is here to help!
From simple to complex taxes, TurboTax® has you covered. And when you need help, real experts are standing by — and can even do your taxes for you, start to finish with TurboTax Live®. Getting your biggest possible tax refund has never been easier. And as a credit union member you can save up to $15 on TurboTax. Click here to get started today!

The information in this article is for general educational purposes only and not intended to provide specific advice or recommendations.Please discuss your particular circumstances with an appropriate professional before taking action.

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• By Kevin Alvarez

Your Top Tax Question About Working Remotely, Answered

Last spring, many of us were asked to leave the office and begin working remotely from home. If you were one of them, you know that presented a lot of issues to be solved as you juggled work and family, including children newly banished from their schools. It was a tumultuous time, and congratulations for dealing with it powerfully and creating solutions that worked for everyone. Whew!

Now, with tax time approaching, there are tax implications of working remotely that you need to address, and we are here to help. So, let’s take a look at the tax issues of remote employment.

What tax issues? I still pay tax on my income, right? Yes indeed. The income from your job will be reported to you on a W-2 in January, and you’ll report that income on your tax return. Nothing there has changed, at least for the federal tax return. But you may have special tax issues to deal with when you file your state income tax return unless you live and work in a state that has no income tax.

What’s different about state returns for remote employment? If you live in the same state in which your employer is located, state taxes are pretty straightforward. But when the pandemic hit and commuting to the office became a thing of the past, many people left urban areas and moved to the less-populated country where it was less expensive to live. If you crossed state lines to do that and now live in a different state from your former office, you may be dealing with the income tax rules of two states, not just one.

Oh no, do I owe taxes to both states? Good question – it depends. Most states look to your physical presence in determining whether to tax you. If that’s the case, if you live and work in one state for an employer in another state, you will only owe tax to the state in which you live and work. But each state is different, so be sure to use tax preparation software such as TurboTax® that considers the facts and circumstances of your employment situation in light of the tax laws of the states involved.

Can I deduct the costs of working from home, such as my computer, internet, office furniture, and supplies? Probably not. Unfortunately, the tax act passed at the end of 2018 axed those deductions for most employees, with the exception for teachers that allows them to deduct up to $250 for supplies used in the classroom. If you aren’t entitled to a deduction for your expenses, your best bet is to ask your employer to give you a non-taxable reimbursement for those costs.

When it's time to file your taxes, TurboTax® is here to help!

From simple to complex taxes, TurboTax has you covered. And when you need help, real experts are standing by — and can even do your taxes for you, start to finish with TurboTax Live®. Getting your biggest possible tax refund has never been easier. And as a SafeAmerica Credit Union member you can save up to $15 on TurboTax. Click below to get started today!

The information in this article is for general educational purposes only and not intended to provide specific advice or recommendations.Please discuss your particular circumstances with an appropriate professional before taking action.

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• By Kevin Alvarez

New Year, New Money Habits!

The New Year is a time for powerful new beginnings. It also presents an opportunity to look at our everyday habits – whether those habits relate to our health and fitness or our money habits as we manage any financial challenges.

What is a habit? A good working definition is that a habit is a routine behavior that is repeated regularly and tends to occur without a lot of conscious thought.

Many of us already have healthy habits that we do by routine – like brushing our teeth or washing our hands.

We might also have healthy money habits. Carefully reviewing your credit card statements each month could be a habit you already have in place, for example.

As the year gets underway, there are opportunities to reinforce healthy money habits that already work for you. And it’s an opportunity to create new habits like
writing down financial goals or building savings.

Make It a Habit

Building positive money habits can affect your entire well being. Here are a few ideas to try as the New Year gets underway.

1. Make a Goal (and Write It Down)

Goal-setting gives you direction. You can decide on your destination and make a plan to get there. This action might seem small, but it’s not. Make it a habit to look at monthly finances and jot down one or two goals. The goal could be taking a bite out of your credit card balances or setting aside a small amount each month for a large purchase.

2. Set it and Forget It

You likely have many of your outgoing bills set to “automatic payment,” which is a positive money habit. Setting up “auto pay” on monthly utilities, cable, and other bills lets you be sure bills are paid on time. Consider setting up “auto save” as well. If you set a goal to save for a big purchase, like the down payment for a car, automate monthly savings to help you achieve your goal. Set up automatic transfers or use direct deposit from your paycheck to automatically place funds in your goal account.

3. Spend with Care

Mindful spending is a powerful financial habit to build. If you don’t already have one, build the habit of using a monthly spending or budgeting plan. You’ll learn how much money you have to work with, the amount that is going out each month for bills and expenses, what you need to set aside for other bills and living expenses, and how much you can devote to your goal from each paycheck.

4. Deal with Debt

Think about your habits when using your credit card and when considering your total debt situation. Are most of your purchases made with consumer credit cards? What are your current credit card balances and other debt balances? Listing out all your monthly debt payments helps you stay aware and act if needed. If you are in the habit of only making minimum payments on your credit card balances or experiencing collection calls, consider learning about how a Debt Management Plan can get help support healthy money habits.

5. Celebrate Your Progress

As we noted, you likely have many positive habits already. That’s something to be proud of, as you can apply those lessons to building new money habits. Make it simple. Tackle one habit at a time and celebrate your wins. The New Year is sure to be a success when you tackle one habit at a time and make it work for you.

Ready to build new money habits?

Our partner GreenPath specializes in helping people improve their financial wellness.

Learn more about building healthy financial habits here:

Redesign Your Financial Habits

• By Kevin Alvarez

Holiday Travel (COVID Style)

We were all hoping the world would be at a better place for holiday travel, yet the holidays are right around the corner. To that affect, it seems like ages ago when we were able to enjoy a cup of coffee at our favorite cafe, enjoy a Sunday brunch with our families, or even have our families/friends over for the holidays. It’s been unbelievable to see how businesses and communities from around the world have been affected. Still, we can use the ever-present opportunity of technology to remind each other that, as with any situation, this too shall pass.

Did You Know...

Humans are social creatures. We need to socialize in order to survive. From teaching each other different life skills, to having a sense of identity as well as belonging, the bottom line is we need to communicate with those we love to ease some of the present tension and anxiety.

Holiday Travel Using The Internet Highway

The present limitations mean holiday travel poses a greater risk for loved ones than usual, but that doesn’t mean we can’t create meaningful memories and experiences through technology. While it may seem silly at first, just remember it is all part of the experience, and more importantly, having those close to you know they are important.

Video conferencing sites can help spread positivity , much needed social connection as well as memories during the holidays.

Take The Northbound FaceTime Highway To Visit Your Family For The Holidays

All activities can be done through your preferred video conferencing sites. They essentially boil down to what is easiest to navigate for you and your loved ones. Some examples include:

- Zoom
- FaceTime through Apple products
- Skype
- Microsoft Teams
- Google Hangouts

Don’t Forget To Bring The Main Dish (Holiday Activities)

Ugly Sweater Contest

Have family and friends join your video conference with their favorite ugly sweater or you could even have them email you a photo of them in it for you to screen share with everyone on your call. The winner can receive an online gift card along with some holiday recognition.

You Can Follow Up The Ugly Sweater Contest With …

Holiday Movie Trivia

There are plenty of online sites that can provide great trivia for your family to participate in. A simple online search can set you in the right direction for any type of movie for all to enjoy. (Yes, even Frozen and Die Hard)

Movie Trivia Followed By Some…

(Insert Holiday Theme Here) Charades

Go around and have everyone act out a scene from a holiday film while others try their best to guess the film. Simple and another activity at your disposal.

Virtual Movie Theater Roulette

To begin, make sure to have everyone get their favorite movie snack in time for this event as well as sending in their favorite holiday movie title. At the time of the event, fill a jar with your choice of small holiday sweets to have your participants guess the amount or even come close, to assist with picking a person to choose a movie that was submitted. By watching the film together and having the video call, this allows everyone to share commentary on any funny or memorable parts. This process can be done weekly to go through all the submitted movies to ensure everyone gets to watch their favorite holiday movie.

The Holidays Have A Very Distinct Look, Feel And Sound, So Toss In A…

Virtual Jukebox (Online Playlists)

Using a similar format to the Virtual Movie Theater Roulette, have everyone send in a few songs and you can either have participants guess who sent in the tune OR what the name of the tune is.

You Have Options To Structure It All Exactly How It Would Best Fit You and Your Loved Ones…

Chubby Elf

Think of “chubby bunny” but with a holiday twist. Have participants munch on their favorite holiday snacks while reciting a line from a film, ALL while having everyone else guess the film.

Take The Exit (Video Call Ending)

Close off the online hangout with some recognition. This year has affected events we took for granted, so make sure to recognize any accomplishments that would have been celebrated in person by giving an online shout out. It’s all about making each other feel special, as we all know everyone can benefit from this.

 

• By Kevin Alvarez

National Cybersecurity Awareness Month

October is National Cybersecurity Awareness Month (NCSAM), which is a collaborative effort between government and industry sectors to raise awareness of the importance of cyber security. With the added need for objectivity with navigating through a pandemic, handling working from home, child care and more recently; the start of the academic school year for children-which now happens to demand a new added level of responsibility for parents in regards to online learning-many people have and could fall victim to the influx of online security breaches. Working from home means even more attention is needed for your work space security, especially with the fact that your IT department isn’t readily available to assist with issues as they would in the office. Fortunately, there are plenty of preventative actions that can be done to keep any and all information properly secured.

Cybersecurity IT Professionals

Cybersecurity Basics: What To Do

Your password is the first line of defense from keeping people out of your personal/sensitive online accounts. Passwords should be lengthy, mixed with upper and lower case letters as well as numeric and special characters such as (!@#$%^&*_). These all add to making it difficult for unauthorized access.

Cybersecurity Password Management

Wi-Fi management dashboards have been a growing provided resource from internet service providers that assist with monitoring your internet connection. This allows you to view who and what devices are connected to your network, allowing you to instantly identify and disconnect any unauthorized device(s) connected to your Wi-Fi network. If you come across any challenges with finding such page/service on your internet service provider’s website, consider finding a customer support phone number to call directly for assistance with finding a Wi-Fi management dashboard.

Cybersecurity Working from home

Most routers come with encryption enabled from the start (WPA2 or WPA3). If for any reason you notice that there are no encryption labels when logging onto your Wi-Fi network or read a disclaimer in the router set-up booklet, then reach out to your internet service provider to assist with properly encrypting your internet connection to prevent unauthorized usage/access of your wireless network.

Where you store your laptop/smart devices should be secured. Consider storing your laptop in the less public areas of your home to avoid the possibility of intruders running off with the possible access of your online accounts. Given how the pandemic has kept everyone at home, people have been making more purchases with online retailers, so both computers and smart devices should be seen as sensitive items if they are not already.

Multi-Factor Authentication (MFA) also known as two-factor authentication, this serves as an added layer of security for the login process. This is done by verifying the login attempt through another unique account by a verification text, call or even an email. For example, if someone is attempting to log onto an account that has MFA in place, they would need to have access to the location of the second factor authentication. Unless they have access to your phone or email, the login attempt will be stopped due to being unable to provide the security code sent to the second factor authentication. The National Institute of Standards and Technology (NIST) recommend using multi-factor authentication on all accounts that have your personal data, such as your primary email, financial accounts, as well as health records.

Cybersecurity Two step authentication

Fraudulent Emails/Texts, What To Look Out For

Approach COVID-19 related emails, texts and/or links with caution. Many scammers have been taking advantage of the biggest stand-still as an excuse to target people’s vulnerabilities through emotions. Scammers have always come up with deceitful and malicious strategies of obtaining personal information. The latest method being used in light of COVID-19 has been “Phishing”, which is when fake emails are sent to people trying to pose as a legitimate company or person that they may have some sort of social relationship with.

An example of such practice is scammers sending an email or text message saying “We suspect an unauthorized transaction on your account. To ensure that your account is not compromised, please click on the link below, and confirm your identity.” Never click on links of emails that you deem fraudulent. To verify, call the company directly from a number you have used previously. Never use lines of communication listed in suspicious emails, such as customer support numbers. They will most likely direct to the scammer in an attempt to convince you they are legitimate.

Cybersecurity Coronavirus (COVID-19) Scams

There are many key indicators for spotting a fake email. Scammers seem to be in quite the hurry when typing their fake emails, and that alone serves in our favor for identifying the real from the fake. From the subject line to the closing of the email and everything in between, there is plenty of opportunity for spotting obvious errors. There are several key identifiers that can help to uncover what is and isn’t a phishing email attempt, such as :

  • Grammar – Phishing emails often contain grammatical mistakes that make it obvious it’s some sort of illegitimacy. Names, email addresses, as well as the body of emails are all prone to OBVIOUS grammatical mistakes. If you are skeptical of any received emails, simply reach out to the known legitimate source in the manner you usually do to conduct your communication with, in order to verify if the email is legitimate or not.
  • Logos – When it comes to branding, companies use their logo to be as clear as possible to assure brand awareness. A logo that is pixelated, blurry or simply low quality often means that scammers copied and pasted the logo onto their email, meaning they do not work for the company. So remember, companies and organizations would not let a bad image of their logo be displayed to their consumers, a blurry logo is a sign of a scammer attempting to steal your information.

Take the time to make the needed adjustments to help ensure a safe and reliable home internet network as well as taking the necessary steps towards preventing scammers from breaching your personal accounts.

Additional Resources

Tips and resources for reducing cybersecurity risks and protecting yourself online >>

SafeAmerica Website Privacy Policy >>

Coronavirus Scams
5 Tips for Managing Your Finances Through Covid-19 and Beyond

• By Kevin Alvarez

Napa Valley Glass Fire

Learning of the news regarding the Glass Fire in Napa County, we are all devastated but more importantly wishing for the shelter of all those who are affected. We wish for the upmost safety of all the evacuees as well as all first responders.

SafeAmerica Credit Union wants to help those impacted as much as possible.

If you have been personally impacted and may be in need of assistance in keeping your financial obligation or you need financial assistance, SafeAmerica Credit Union is here to help. Contact us about options that are available for your specific situation.

We are actively monitoring the Glass Fire and at this time, all of our branches are up and running and have not been impacted. You can check back here for updates about possible branch closures.

We can be reached at (800) 972-0999 or via email at onlinerequests@safeamerica.com.

• By Kevin Alvarez

5 Tips for Managing Your Finances Through COVID-19 and Beyond

Information brought to you by our partner, Greenpath Financial Wellness

There’s a lot to get used to in these challenging times. As the pandemic crisis continues, and many are dealing with financial uncertainty—from an income reduction to total job loss— it can be hard to know how to move forward.

Having a defined set of options and a clear understanding of your finances not only helps to better prepare you for the future, but can also make you feel more confident and less stressed about factors outside of your control.

To help you navigate these difficult times, we’ve partnered with trusted non-profit GreenPath Financial Wellness to provide you with some guidelines for managing your finances in times of uncertainty:

1. Prioritize your bills

Changes to our financial lives can often result in stress and mental fatigue, making decisions even more challenging. We have a natural tendency to avoid choices that feel like we are giving something up. Instead, we may try our best to take each day as it comes without a plan.

Getting the most important bills paid first is the most important thing in a time of crisis.

If you are one of the millions of Americans who have enrolled in a forbearance program (programs placing a temporary pause on payments toward credit cards, mortgages and other loans), it’s important to think about how (and when) you will pay these bills as these programs come to an end.

2. Start a Budget

Many people find that the journey to financial wellness is smoother when they take the time to create a budget. It might sound complicated, but there is a way to break down the process.

The number one key to setting your budget? Creating a spending plan. A spending plan can help you to:

  • Figure out how much money you have
  • Understand how much money you need to set aside each month for bills and expenses
  • Setup a plan to meet your financial goals

3. If you’re having trouble paying off credit card debt, consider a Debt Management Plan

Credit cards are important tools for the majority of people, especially in times of financial challenge—but it can be all too easy to spend over your means, and if you have high interest rates on your credit cards, debt can add up quickly.

If you want to get out of debt and get your finances on track, you may find debt relief through GreenPath’s Debt Management Plan (DMP). A DMP is designed to pay off the entire amount that you owe, usually within three to five years. It can help you pay off credit card debt faster and save money on interest charges.

4. Build up an emergency fund (no matter now small)

Never in a million years would you have made a specific financial plan expecting a new virus to disrupt the global economy or your paycheck. Unfortunately, our savings accounts do feel the ripple effect of larger-than-life forces and events across the globe. Preparing yourself for a financial setback, such as an unexpected loss of income, can set you up to handle it with less stress and bounce back more quickly. It is especially helpful to think about these plans at a time when things feel “normal,” so that we get the full advantage of perspective on a potentially frightening and stressful event.

5. Connect with the Financial Counselors at GreenPath

If your finances have been affected by COVID-19, our partners at GreenPath offer free consultations and guidance to help people manage debt, save money, and meet their financial goals.

As a SafeAmerica member, you have access to GreenPath Financial Wellness that offers:

  • Free Financial Counseling
  • Debt Management Programs
  • Housing Services
  • Credit Report Review
  • Student Loan Counseling

We invite you to explore your options and begin your journey towards a financially healthy life with the help of GreenPath Financial Wellness—just one of the many benefits of being a member of SafeAmerica Credit Union.

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• By Kevin Alvarez

Kids and Shelter in Place

SafeAmerica Credit Union has been closely monitoring the COVID-19 pandemic and the plan of action our local, state and federal leaders are/will be implementing.

While we do offer services that help provide a relief from finances, we wanted to provide comfort through activities and concepts for children of members who have been dealing with the ripples of COVID-19.

 

Below are some of the best practices we put together:

 

Hobbies

This is an opportunity…

to have children experiment with healthy brain stimulating activities that could develop into important future skills.

Some examples include:

  • Origami
  • Crochet
  • Painting
  • Drawing
  • Marbles
  • Photography
  • Gardening - Currently popular due to the weather
  • Music – Instruments, singing and dancing
  • Camping - Pitch a tent in your backyard

Social Interaction

Reaching out to…

family and friends via FaceTime, Zoom or any other video call service will help remind your child they are not dealing with this alone. It will also continue to help children develop important social skills especially during Covid-19.

Understanding

We can all agree…

that COVID - 19 has been a stressful situation, our children also deal with stress and while it may have been “cool” or “fun” to not attend school at first, children may have seen their safe havens quickly turned colorless. Appropriately do not forget how the mind wonders and how curiosity works for children. Children love to be taken seriously and by having a unique role and recognized for achievements they will further develop confidence especially during a time that seems confusing to them.

Meal Preparation

Having your children…

involved with important activities presents the opportunity to understand the logic behind cooking as well as being able to positively reinforce them for meals they help make especially when adding the combination of kids and shelter in place.

  • Practice counting skills and fractions
  • Importance of following directions
  • Importance of use of ingredients
  • Meal appreciation
  • Communication skills
  • Healthy eating
  • Safety reminders

Quiet Time

Let’s face it…

if your little ones are quiet, it usually means there may be some mess to tidy up. Quiet time is simply unstructured time that makes children look for ways to entertain themselves and could also be tied in with hobbies.

Developing an outlet for creativity, teaching children to make their own choices and getting time to yourself are the ultimate goals here. Durations of quite time vary, depending on how interested your child may be, a good starting point is anywhere from 45 to 120 minutes.

Below are some suggestions:

  • Have containers with different types of toys that stimulate creativity
  • Use visual aids to keep track of time
  • Use books/audio books (Aesop’s Fables, The Phantom Tollbooth, Percy Jackson & the Olympians)
  • Use arts and crafts (Shape Threading, Bead Threading, Typography etc.)

Routine

Implementing…

a structured routine reduces stress and assures children they are in a loving and safe environment. We all need to remember our government officials have been easing up restrictions and sooner rather than later our routines will be just how they were before this whole situation started.

These six suggestions/concepts have plenty of worth and hopefully could provide a good rhythm during the remaining duration of shelter-in-place and as a precaution, should be ready for a possible extension of the shelter-in-place order

 

 

 

REMEMBER…

We will be able to see our distant loved ones soon.
We are all safe and will continue to be.
We are a community and we thrive as one.
We appreciate the efforts, hard work and dedication from our members, our SACU family as well as everyone on the front lines. Everyone is making a difference.

Thank
YOU.

 

*For more information on what SafeAmerica Credit Union is doing to keep you safe, click here

*To read our previous blog regarding safety tips and how scammers are using COVID-19, click here

Sources:

aacap.org

Greatergood.berkely.edu

sleeplady.com