Free Tax Return Preparation -- See If You Qualify

Do you need help preparing your tax return? Learn about the IRS Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs.

VITA Program: If you make $51,000 or less, IRS-certified volunteers can inform you ab...out tax credits for which you may qualify, and prepare a basic tax return with electronic filing.

TCE Program: If you are 60 years of age or older, you may qualify for free tax help from IRS-certified volunteers who specialize in issues that pertain to seniors.

http://www.irs.gov/Individuals/Free-Tax-Return-Preparation-for-You-by-Volunteers

Get Help Paying Your Home Heating Bills this Winter

If you can't afford to pay your winter heating bill, the Low Income Home Energy Assistance Program (LIHEAP) may be able to help with:
• Home energy bills
• Energy crisis
• Weatherization and energy-related home repairs
Assistance is available to low-income families who spend a large portion of income on home heating and cooling.

Contact your state or Indian tribe or tribal organization agency for eligibility requirements and to apply. Wyoming information is at http://www.liheap.ncat.org/profiles/Wyoming.htm#state

For help applying, you can also call 1.866.NRG.NEAR (674.6327).

Time Change Sunday

Sunday, November 4 marks the end of daylight saving time (DST), so remember to turn your clocks back one hour, starting at 2:00 AM on November 4.

Beware of Phony IRS Websites

Beware of Phony IRS Websites
The IRS is warning the public about a new taxscam that uses a website that mimics the IRS e-Services online registration page. The real IRS e-Services page offers Web-based products for tax preparers and payers—not the general public. The phony Web page looks almost identical to the real one.

The official IRS website is www.irs.gov. Some of the phony websites end in .com, .net, .org or other designations instead of .gov. If you find a suspicious website that claims to be the IRS, send it to phishing@irs.gov; put "Suspicious website" in the subject line.

September is National Preparedness Month

Have you taken steps to prepare for an emergency?

According to the Federal Emergency Management Agency (FEMA), three elements of good preparation are:

• Being Informed -- Learn about the potential emergencies that can happen where you live and know the appropriate ways to respond to them.
• Making a Plan -- Your family may not be together when disaster strikes, so it is important to plan what you would do in different situations. How would you get to a safe place? How would you contact one another and get back together?
• Building a Kit -- Find a list of suggested items to include in an emergency supply kit.

A Child Born in 2011 Will Cost $234,900 to Raise

USDA released the annual report Expenditures on Children by Families, finding that a middle-income family with a child born in 2011 can expect to spend about $234,900 ($295,560 if projected inflation costs are factored in) for food, shelter, and other necessities to raise that child over the next 17 years.

The results come from the Consumer Expenditure Survey -- check out the "Cost of Raising A Child" calculator at http://www.cnpp.usda.gov/.

PS Don't forget to open a 529 plan to help pay for a college education. If you start early (when your child is quite young), then time is on your side.

Saving for Retirment vs Financing Young Adult Children

If you find yourself in the quandry as to whether to continue to support your adult children you may find it interesting to note that a recent study conducted by Pew Research Center indicates that only 54% of Americans aged 18 to 24 have a full time job.  This is the lowest level registered since the government began collecting data in 1948.   Kevin McKinney, the author of the book, Make Your Kid a Millionaire  offered several suggestions in a recent article he posted on line.  I think these are worth noting.

Show them the (lack of money).  When parents learn that their benevolence today can mean a short and frugile retirement, saying no to paying for childrens wants and needs may become easier.

Cap College Costs.   High Schoolers are starry eyed about their "dream" school.  This week I sat through interviews with  High School Seniors applying for scholarships from a scholarship committtee I serve on.  We always ask where they plan to attend school, what they plan to study and how much will the school cost.  Our committtee is concerned at the lack of understanding of the long term consequences to a $40,000 a year tuition  in a "neat" sounding school.  It sounds like parents and kids are  clueless to what this "dream" school is going to cost or they haven't thought through what a quarter of a million dollars could do to financial security in later life. 

Set a cut off date.  If cutting off the cash flow seems unpalatable a suggestion is to decide upon a schedule of diminishing parental support.    This allows parents to provide an ultimate "teachable moment" regarding life's expenses and enable their adult children to start earning more, or balancing their needs and wants with their own income sources.

Blame the financial advisor.  If you know that you have to garner the courage to say "No" to your kids about their hands in your purse you could try this:  " Honey, we would love to help you out, but our financial advisor says its not a good idea right now."  or " Honey, we would love to help you out, but our financial goals and obligations don't provide for this expenditure right now."


 

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