SafeAmerica Credit Union

New Money Habits

• By Kevin Alvarez

What Influences your Money Habits?

Information brought to you by our partner, GreenPath Financial Wellness

When our financial counselors speak with members about specific challenges they might be facing, it can be helpful to have a conversation about the factors that influence money habits and behaviors. 

From family experiences to other factors such as the media, a range of influences shape our views of the world – including the money habits we put into practice each day. 

Whether we have patterns of spending, saving, investing or even budgeting, these habits are usually shaped by our past experiences. 

As the webinar highlight notes, there are three key influences when it comes to money habits:

Family

How we regulate to finances is very much related to what we experience in our families, and the money lessons people experience across generations.

Perhaps our parents were not comfortable spending money and had a distrust when it comes to taking on debt. Or maybe we witnessed a family where there was a high tolerance for spending and taking on loans for purchases both big and small. whether we were in families that were big spenders or big savers, or somewhere along the spectrum, many people can identify with the role their family's played in their money habits.

Media

Movies, television shows and social media often romanticize the appeal of beautiful homes, nice cars, new gadgets, and brand-name clothing and jewelry. The media plays a big role in emphasizing the desire to have the latest and greatest of everything - despite the realities of our financial situation.

While the entertainment industry is a big part of our media diets, our social media feeds serve up a never-ending stream of photos and updates showing off expensive vacations, cars, elaborate events and more. As a result, many of us are tempted to "keep up with the Joneses" and by ramping up our spending. This is a significant influence on our money habits.

Culture

Attitudes and perceptions about how we handle our money are also influenced by the larger culture. For those living in a culture of consumption, the "buy now, pay later" philosophy is everywhere. For those in a culture that puts an emphasis on economic restraint, that philosophy and influence is likely quite different.

While cultural influences affect how we view money, we also have the power to choose how we interpret cultural exceptions. Many people turn the "conspicuous consumption" influence into a positive effect to encourage good money habits. They might see the cultural behaviors as life lessons on what not to do.

Know Your Money Habits

Where do you stack up when it comes to money habits - especially when it comes to credit card debt?

All told, knowing your money habits is a good step towards financial health and wellness. If spending is getting out of hand, for instance, due to the pressures of keeping up with a friend's social post, it might be time to slow down and take a hard look at spending.

Take the next step - check out the educational course - Redesign Your Money Habits

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• 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.

Learn More

• 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