If your child picks up a summer job, they may or may not be required to file a federal tax return and/or pay federal taxes. It all depends on the type of job and how much they earn. The charts below provide some simple guidelines.
THESE TABLES ARE FOR GENERAL INFORMATIONAL PURPOSES ONLY. THEY ADDRESS ONLY FEDERAL FILING REQUIREMENTS FOR EARNED INCOME. OTHER FEDERAL FILING REQUIREMENTS MAY APPLY; SEE IRS PUBLICATION 929 FOR MORE DETAILS.
Even if your child is not required to file a federal tax return, it’s wise to consult with your financial planner or tax advisor, as he or she may be due a tax refund. And be sure to include your child in that consultation and any filling that may result. It’s never too early to start young wage earners on the road to financial literarcy—-teaching them the significance of taxes and and the ramifications of not managing them correctly.
This blog was excerpted from a Charles Schwab Personal Finance and Planning online post.
According to the NYS Department of Labor, more than 1.6 million residents have filed for unemployment benefits since Gov Cuomo’s mid-March COVID-19 order for all non-essential retailers and businesses to close.
This reality has forced business owners to make tough decisions about a broad range of issues including employee and customer safety, changes in supply chains and remote technology capabilities—all the while working to keep their businesses operational and afloat.
For more than 30 years, CEL has provided individualized and interactive education in entrepreneurship through a variety of programs aimed at unlocking leadership potential, creating jobs and invigorating the greater Western New York economy and community.
That longterm purpose led CEL to immediately begin creating virtual programs and support for their entrepreneurs in less than 48 hours following the Governor’s business shut down order. Programming includes weekly Zoom meetings and one-on-one consulting sessions on financials and other COVID-related challenges. As well there are weekly webinars pn a variety of topics such as human resources, operations and overall business strategies.
Note Advisors Principal, Shawn Glogowski, is a graduate of the CEL Program. He notes the immediate response and support offered by the organization as crucial during this pandemic.
“It’s good to see CEL react with such immediacy in helping the Buffalo business community stay the course and meet the many challenges we are all facing. The vital information on programs and next step actions they are providing definitely help to build confidence among business owners in that the decisions they are making in these uncertain times will help them survive and eventually reopen.”
Established in 1987, the Center for Entrepreneurial Leadership in the University at Buffalo School of Management provides participants with individualized and interactive education in entrepreneurship. More than 1,400 CEL alumni employ more than 23,000 Western New Yorkers, and their businesses are worth more than $2.3 billion to the local economy.
For more information on the variety of programs offered through the CEL, how these programs are providing support for local small to medium-sized businesses and how you can apply for a specific program, visit http://mgt.buffalo.edu/cel.
Some information in this post was excerpted from an online Business First article written by Tom Ulbrich, an executive in residence for entrepreneurship at the University at Buffalo School of Management, and president/CEO of Goodwill of WNY.
With May designated as Mental Health Month, it seems timely to focus on the important part finances play in our sense of well-being.
Below is information related to understanding the ways money management skills can affect people’s happiness, along with practical steps to stay financially and emotionally healthy.
THE EMOTIONAL SIDE OF MONEY
Do you ever feel overwhelmed by money worries? You’re not the only one.
According to a 2019 survey by CompareCards.com, seven in ten Americans admit that they’ve cried over something related to their finances. Additionally, age and gender aside, many acknowledge money as an emotional trigger.
In a 2018 Harris Poll, it was revealed that money was a major source of stress for 44% of respondents. Specific financial stress inducers included low income, the rising cost of healthcare, too much debt and a lack of retirement savings.
These findings are troubling not only because of the significant percentage of Americans who are struggling with money concerns, but because of how those concerns can impact our lives.
FINANCIAL ANXIETY AFFECTS MORE THAN A SPREADSHEET BOTTOM LINE
Within the medical industry, worries about the cost of healthcare are being defined as, “financial toxicity,” as patients struggle to pay for health and hospital care and prescriptions. Worry about large medical bills and related debt have been proven to cause illness and even increase the amount of pain people feel.
When financial stress hits close to home, it can cause relationship problems among spouses, parents, children and even friends. Additionally children raised in poverty have been shown to suffer from far-reaching physical and mental health issues.
WHAT YOU CAN DO TO FEEL MORE FINACIALLY AND EMOTIONALLY SECURE
Worry is caused by uncertainty. While you can’t know what lies ahead, you can take steps to get a better handle on the present and more fully prepare yourself for the future. The following basic money management tips can help
Know where your money is going
Write down your monthly expenses. How much are you spending on essentials like housing, food and transportation? How much are you spending on extras? Make adjustments so that you don’t spend more than you earn.
Get a handle on debt
If you’re carrying credit card balances, create a payment plan that is realistic and that you can manage. Try to pay more on higher interest debt first, making sure to pay at least the minimum on all debts, including student loans.
Plan for emergencies
Aim to put aside enough cash to cover 3-6 months of essential expenses in a savings or money market account. Starting from scratch? Aim for whatever regular amount you can afford and work your way up from there. Acknowledge there may be months when your ability to reach that aim will fall short, but don’t give up. Next month get right back on your savings track.
Boost your savings
Make savings a part of your monthly budget. Even a small amount saved on a regular basis can make a big difference.
Contribute to your 401(k)
Contribute at least enough to get the company match, more if you can.
Take advantage of workplace financial wellness programs
See what your company offers in terms of retirement planning, healthcare, and financial education and planning.
MONEY MANAGEMENT AND HAPPINESS
There’s one more Gallup poll that offers particularly positive results. It found that among Americans worried about paying bills, 63% said they enjoyed saving more than spending.
Saving as much as you can, controlling your expenses, and feeling like you’re in control can reduce your financial stress and help you maintain a positive attitude no matter what life throws your way.
This blog was excerpted from an online article by Carrie Schwab-Pomerantz, CFP®, Board Chair and President, Charles Schwab Foundation; Senior Vice President, Schwab Community Services, Charles Schwab & Co., Inc.; Board Chair, Schwab Charitable
The current low interest rates can make it a great time for some homeowners to refinance. What’s important to note is that changes in interest rates affect fixed and adjustable mortgages differently.
While adjustable rate mortgages may be affected by short-term rate changes, fixed mortgage rates tend to be more closely aligned with the 10-year Treasury note.
If you have an ARM, a decrease in the short-term federal funds rate may lower your rate. If you have a fixed-rate mortgage, you should instead pay attention to long-term bonds like the 10-year Treasury note.
Rates aside, deciding whether or not to refinance depends on a number of personal factors.
WHAT’S YOUR GOAL?
Do you want to lower your monthly payment? Reduce the length of your mortgage? Take out extra money for home improvements? These are important initial questions.
If decreasing your payment is a top priority and you can lower your interest rate by .5 to 1 percent, it’s probably worth the effort. For instance, lowering the interest rate on a $350,000 30-year fixed mortgage by 1 percent could lower your monthly payment by about $300 a month.
On the flip side, if your goal is to shorten the length of your mortgage and you refinance that amount for 15 years, your monthly payment would go up, but you’d save a considerable amount in interest over the life of the loan.
HOW LONG WILL YOU BE IN THE HOUSE?
Refinancing usually involves paying points and fees. Points basically represent interest you pay upfront to get a lower rate on your loan. It’s not uncommon for points and fees to add up to 3-6 percent of your loan. You can pay this out of pocket or, often times, add them to the balance of your loan.
However you pay them, it will take time to get to the breakeven point where these additional costs are offset by the lower rates, so you have to think realistically about how long you intend to be in your home. If you plan to sell in the near future, the extra cost of refinancing may outweigh the monthly short-term savings.
HOW MUCH HOME EQUITY DO YOU HAVE?
Do you want to lower your monthly payment? Reduce the length of your mortgage? Take out extra money for home improvements? These are important initial questions.
If decreasing your payment is a top priority and you can lower your interest rate by .5 to 1 percent, it’s probably worth the effort. For instance, lowering the interest rate on a $350,000 30-year fixed mortgage by 1 percent could lower your monthly payment by about $300 a month.
On the flip side, if your goal is to shorten the length of your mortgage and you refinance that amount for 15 years, your monthly payment would go up, but you’d save a considerable amount in interest over the life of the loan.
DO THE MATH
Refinancing usually involves paying points and fees. Points basically represent interest you pay upfront to get a lower rate on your loan. It’s not uncommon for points and fees to add up to 3-6 percent of your loan. You can pay this out of pocket or, often times, add them to the balance of your loan.
However you pay them, it will take time to get to the breakeven point where these additional costs are offset by the lower rates, so you have to think realistically about how long you intend to be in your home. If you plan to sell in the near future, the extra cost of refinancing may outweigh the monthly short-term savings.
Refinancing usually involves paying points and fees. Points basically represent interest you pay upfront to get a lower rate on your loan. It’s not uncommon for points and fees to add up to 3-6 percent of your loan. You can pay this out of pocket or, often times, add them to the balance of your loan.
However you pay them, it will take time to get to the breakeven point where these additional costs are offset by the lower rates, so you have to think realistically about how long you intend to be in your home. If you plan to sell in the near future, the extra cost of refinancing may outweigh the monthly short-term savings.
This post was excerpted from an online article by Carrie Schwab-Pomerantz, Board Chair and President, Charles Schwab Foundation, Senior Vice President, Charles Schwab & Co., Inc. and Board Chair, Schwab Charitable
In 2011, a LinkedIn Group led by a man named Joe Paris formed The Operational Excellence Society. The society’s goal is operational excellence by design over coincidence.
A significant impact of this group has been the universalization of the catchphrase “Words Matter.” It’s a simple concept that has encouraged international awareness of how the words we say and how we say them have far-reaching effects, often in ways we may never know.
Over the last three weeks, “Words Matter” has guided me through this new world order in which we are living and working. It’s been a time of stress, challenge, worry and, every once in a while, laughter. Most centrally it’s been a time of choosing words that matter as I have counseled, advised and spoken with family, friends and clients. Through each day’s experiences, this is what I have learned and relearned.
I love what I do every day, but especially when I can help clients through challenging times like the one we are now facing. I’ve been asked a lot lately how I’m dealing with the huge influx of COVID-19 calls from clients concerned about their investments and the roller coaster market. My answer is always the same. I truly enjoy engaging in conversations where I can calm people’s fears and help manage their worries.
Words matters. Clients turn to all of us at Note Advisors as confident voices in times of “noise” and turmoil. Staying positive and giving sound advice is what our clients need and deserve. It’s a purpose that we honor.
People with a financial plan in place are far less anxious than those without one. Enough said!
Retirement plans that we’ve designed for our clients are working exactly as intended. People are able to take their needed monthly income while leaving the principal of their investments in the market to recover. Planning plus thoughtful execution equals positive results.
For younger clients who think this is the time to stop investing in their 401k or IRA, it’s been rewarding to educate them on increasing their 401k deferrals and putting long term cash to work right now. It’s a huge step in positively shaping their financial outlooks and their futures.
Helping all of our clients understand the volatility of the COVID-19 stock market and encouraging them not to make reactive changes is leading to long term positive impacts on their financial futures. It is also developing stronger partnerships between us, as advisors, clients and individuals, as we face this crisis together.
The value we, as financial advisors, provide in uncertain times truly makes a difference in the lives of our clients. We are working to develop bonds of mutual respect and trust that are impacting their financial security as well as their personal well being.
As we continue to find ways to manage and move forward in this time of quarantine and social distancing, all of us at Note look forward to hearing from you—to listen to your concerns, hear your questions and partner with you in managing your human, social and financial capital.
In the meantime, because words matter: Stay safe. Stay well. Stay in touch.
To contact Shawn or any Note Advisors team member, call 716-256-1682
Shawn C. Glogowski, CFP® is a CERTIFIED FINANCIAL PLANNER™ practitioner and Principal/Chief Compliance Officer for Note Advisors, LLC. He is responsible for helping clients create, implement, and monitor their comprehensive financial plans and is truly passionate about the planning process and educating clients on investment, tax, retirement, and estate strategies to meet their needs.
Shawn holds a Chartered Financial Consultant (ChFC), Chartered Special Needs Consultant (ChSNC), and Chartered Life Underwriter (CLU) designations with The American College. He is also an Enrolled Agent with the IRS which allows him to represent taxpayers before the Internal Revenue Service.
