SafeAmerica Credit Union

covid-19

• 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

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

COVID-19 Credit Check Reminder

The year 2020 has been one for the books. Everyone has been feeling both the direct and indirect effects of the ongoing pandemic. With everything that’s going on, now is a good time to review and understand your good credit with our COVID-19 Credit Check Reminder.

Protecting your credit during COVID – 19

  • Reach out to your internet and phone providers for flexibility with payment options.
  • Reach out to your auto insurance provider for any possible flexibility. Learn more about our auto insurance coverage here.
  • Reach out to lenders for any possible flexibility with payment options. Learn more of our current payment options here.
  • Do your best to pay the minimum on your credit card bills every month.
  • Keep an eye on your credit score for any fraudulent activity.
  • Consider signing up to receive fraud alerts.
  • Reach out for financial assistance with a credit counselor.
  • Make a budget and do your best to stick with it.
  • If you speak with anyone online or via phone, make sure they are someone who could be trusted and working for a trusted company. Learn more on how to protect yourself from COVID-19 scams by clicking here

By keeping a close eye on what information the governor’s office and county officials release, we understand that we are closer to this being over more than before. We also understand that as humans we need to have our minds occupied with personal tasks and objectives to distract ourselves from the possibility of misjudgment stemming from the pandemic.

So let us preoccupy our minds with our COVID-19 credit check to learn some credit basics and position ourselves appropriately for what is next in our financial future.

What makes up your credit score?

35% is payment history
30% is credit utilization/capacity
15% is the length of credit
10% is search & acquisition for new credit
10% is the type of credit

Credit FYI's

  • A good credit score will ONLY benefit you.
  • Do your best to not miss any payments
  • The better your credit, the better rates you will get for car loans, mortgages, credit cards, personal loans, insurance costs and employment opportunities
  • When lenders check your credit they may use any one of the three major credit bureaus, Experian, Equifax and TransUnion
  • Stabilizing your credit will set a foundation to grow
  • Make sure to identify, plan and act upon ways to improve your score
  • Hard credit checks are when lenders use your score to decide your rates
  • Soft credit checks do not impact your credit score since they are not for a line of credit
  • Your credit score is viewed/generated every time a lender requests the information
  • You can check your own score at annualcreditreport.com and it will fall under a soft credit check
  • Do not close credit cards. This keeps your credit utilization looking great. Meaning you have the resources and have paid them off

What is a credit report?

  • Shows amount of debt you have
  • Types of credit you have
  • The length of time you have had credit cards for
  • Hard credit checks stay on your report for a little over two years
  • A good credit utilization rate is below 30%
  • Lenders typically focus on history of on time payments and low credit utilization
  • Credit utilization is how much of your available credit balance you are using

What is a good way to improve credit?

Credit repair companies can only do what you can already do. You can also dispute any incorrect or outdated information.
There are multiple ways to go about improving your credit, but let’s focus on how to improve credit by making the most of credit utilization.
Most people can agree that if you are not using something, you should get rid of it. So when someone pays off their credit card, they may think of closing their credit account right away. However, when it comes to improving your credit, you should consider leaving some credit accounts open. This leaves you to have a bigger pool of credit at your disposal. This is where the importance of credit utilization comes into play. Having a pool of money but only using 30% of it shows lenders that you are responsible with your finances and not blowing through your credit limits.

An example:

You open a new credit card and your limit is $1,000.

What is the most you should spend, ideally?

Up to 30%

So that means…

You should only be spending (borrowing) a maximum of $300 until you pay it off.

Now when you go to pick out a new car and have your credit report checked, the lender will be able to see your credit history and see the card with $1,000 limit and only $300 borrowed, this shows the lender you are financially responsible by not spending your limit or maxing your credit card.

Learn more about:

Auto Insurance by clicking here

COVID-19 business updates by clicking here

COVID-19 Scams by clicking here

• 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

• By Kevin Alvarez

Coronavirus (COVID-19) Scams: Safety Tips/Awareness

The viral COVID-19 pandemic has had a big impact on the health and financial sectors of our nation and SafeAmerica Credit Union wants to inform our community of the fraud sweeping the nation. There have been thousands of incidents regarding coronavirus scams in which people are being taken advantage of due to the sudden spike in emotional distress. So together, as a community let us make sure we understand the tactics and methods scammers are using to obtain our personal information.

The Federal Trade Commission reported…

Coronavirus scams Scammers are using the COVID-19 pandemic as a tactic to defraud consumers. In the first nine days of April 2020, consumers filed about 7,200 complaints along with $7 million in coronavirus-related fraud. A number that quickly grew from the $4.8 million lost in the first three months of the year, to collectively sum together the nearly $12 million lost so far. If this rate continues, Americans could lose a minimum of $100 million by July 2020.

How are Coronavirus Scams being used?

  • Fake Websites – Scammers have been impersonating legitimate websites with the effort of having unsuspecting people enter their sensitive information. There have also been reports of scammers asking for donations to help “fight” the pandemic.
  • Health Insurance - Scammers have been making calls, Robocalls (recorded messages instead of a live person) and even going door to door with claims that they can offer COVID-19 Test Kits, information verification for your health insurance, or any other supposed additional benefits.
  • Stimulus Checks –The IRS has reported that fraud checks have been mailed with strange dollar amounts with the goal of having potential victims call a number to “verify"  information in order to cash it. A method of acquiring personal information.

Who is being targeted for Coronavirus Scams?

The Internal Revenue Service has warned that Coronavirus scams are targeting seniors and retirees and should be the most financially vigilant during this time. As a reminder, the IRS will NOT be contacting anyone, this means no phone calls, emails, postage or even in person meetings in order to complete their stimulus check rebate. Scammers see the COVID-19 pandemic as a chance to take advantage of others, especially if they can sense emotional confusion.

As a result, during this time we need to…

Remember!

  • Validate who you are speaking with
  • Validate web addresses, emails and any attachments by looking out for any misspellings, suspicious links or lack of brand consistency
  • Be cautious of questions that may be a ploy to steal important personal information (Email, over the phone and even in-person)
  • Scammers see the COVID-19 pandemic as a chance to take advantage of others, especially if they can sense emotional confusion.
  • There is nothing wrong with hanging up phone calls
  • Most importantly that this will all soon be over.

An objective and informed mind is a great tool to have but with the current situation remember to take a break from screens, social media and news outlets to prevent any feelings of being anxious, nervous or overwhelmed.

To learn even more about coronavirus scams or the stimulus rebate from legitimate and direct sources, visit the following resources

irs.gov

Fcc.gov

Unitednations.news.covid19.org

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