Earned Income Tax Credit Awareness Day

January 20, 2012 By Cricket

  • Did you know that the Southern Indiana Asset Building Coalition offers FREE tax preparation at a dozen sites in the Southern Indiana area?
  • Did you know that qualified applicants can receive as much as $6,000 from the EITC?
  • Did you know the EITC is the Federal Government’s largest benefit program for workers?
  • Did you know we want to partner with YOU to spread the word about these important services to our community?

The Southern Indiana Asset Building Coalition will hold
Earned Income Tax Credit Awareness Day
at the Jeffersonville Township Library on
January 27th, 2012.


A panel of esteemed guests, including trained and certified tax preparers, will offer information on qualifying for the tax credit, tax services and the advantage to receiving a tax credit like this.

Registration begins at 11:30 and the panel discussion, with time for questions, begins at 12:00 p.m. Lunch will be provided.

We’re doing this because we feel it is vital to spread the word to the community. As tax season begins and people are trying to find every possible advantage, we are dedicated to provide information about this important tax credit.

The EITC is particularly important for people in the following categories:

  • Whose earnings declined or whose marital or parental status changed
  • With limited English skills
  • Living in rural areas
  • Who are Native Americans
  • Who have disabilities or are raising children with disabilities
  • Without children
  • With earnings below the filing requirement
  • Living in non-traditional homes, such as a grandparent raising a grandchild

“EITC is a financial boost for working people in a recovering economy and allows more funds to flow within your community. It’s money that can make lives a little easier.” Whitney Bishop, Executive Director, SIABC said.

Not only does the Southern Indiana Asset Building Coalition want to spread the word about the EITC, we can help those who qualify, and others, prepare their taxes at one of our many tax prep sites in 4 counties of Southern Indiana. We are asking that you partner with us to spread the word to those who most need to hear about these crucial services. You never know, it could even impact YOU!

For more information about the tax credit and our services please contact the SIABC office at 812.206.7520 . If we join together to promote financial advantages to everyone, we strengthen our community as a whole.

Filed Under: Earned Income Tax Credit, Financial Expert, financial literacy, Financial Stability, Southern Indiana Asset Building Coalition, Uncategorized, vita tax preparation

Budget Basics – What is Budgeting?

November 10, 2011 By Cricket

Is BUDGET a ‘bad’ word in your vocabulary?

For most people, the word “budget” conjures up thoughts of penny-pinching and the unpleasant task of crunching numbers. This couldn’t be further from the truth. A budget is the cornerstone of a solid financial foundation, regardless of your situation, and it isn’t that hard to do.

What is a Budget?

A budget is nothing more than a breakdown and plan of how much money you have coming in and where it goes. Could you imagine a business becoming successful if it didn’t keep track of its income and expenses? The same holds true when it comes to your personal finances. If you don’t know how much money you have coming in and where it goes, your road to financial success will be a difficult one.

The biggest fear that most people have when creating a budget is that they will need to suddenly cut back on all of the fun spending — things like the occasional coffee or dinner out, movie night, or even the trip to grandma’s for the holidays. While you may find that you do need to cut some spending after putting together a budget, without actually sitting down and creating one, it is impossible to know what expenses need to be cut, if any.

Tracking Income

The first step in creating a budget is to determine how much income you have. This is quite easy and typically only requires you to take a look at your pay stub. Of course, if you’re married, be sure to include your spouse’s income as well. In addition to your regular pay, you’ll want to also include any other sources of income you may have, such as dividends, interest, a side business, and so on.

Tracking Expenses

Now that you know how much income you have coming in, it’s time to take a look at your monthly expenses. Start with the regular and fixed payments you have, such as your mortgage or rent, car payments, insurance, debt and taxes. For most people, these are going to be relatively fixed, meaning you can’t easily change the amount that is due each month.

After you’ve listed your fixed monthly expenses, it is time to dig deeper to find out where the rest of your money goes. Take out your checkbook or pull your latest bank statement to help you with this step. Jot down how much you spend on things like utilities, groceries, entertainment, subscriptions, and so on. This handy worksheet can help you with keeping track of expenses.

The Bottom Line

You should now have all of the information needed to help you create your budget. So, go ahead and total up your monthly income and all of your monthly expenses. Subtract your expense total from your income total and you’ll have either a positive or negative number. If you have a positive number, congratulations, you are spending less than you earn. Don’t worry if you have a negative number. The whole reason for creating a budget is to identify deficiencies and find out how to address them.

Now that you can visually see how much you fall short, you can adjust your spending or saving in certain areas to improve the situation. Oftentimes you’ll realize that by just making a few small adjustments to your spending habits, you can significantly improve your situation. Maybe this means cutting back on one of your magazine subscriptions, eating out one time less a month, or even just hitting the matinee instead of the prime time movie. Typically, just saving a few dollars here and there can be enough to not only make sure you spend less than you earn, but also apply a few extra dollars to things like high-interest credit card debt or your retirement savings.

 

 

Filed Under: 6 month money challenge, Asset Building, Budgeting, Family finances, Holidays and money, Southern Indiana Asset Building Coalition, Uncategorized

Holiday Networking Event benefiting SIABC

November 9, 2011 By Cricket

Purse Strings

A HOLIDAY NETWORKING EXPERIENCE BENEFITING  THE  SOUTHERN INDIANA ASSET BUILDING COALITION

sponsored by

Tuesday, December 6, 2011

6:00 p.m. – 8:00 p.m.

300 Spring

Jeffersonville, IN 47130

$10.00 Suggested Donation at the Door Benefiting SIABC

Music by Kitty Slickers* Hors d’oeuvres* Cash Bar* Door Prizes*Success Stories and Surprises

Come Shop the Handbag and Accessory Boutique Village with vendors like Jewelry Junkies and Strandz ‘n Threadz

We will be collecting new or gently used handbags to benefit the programs of Dress for Success Louisville, which proudly serves the women of Southern Indiana

PLEASE RSVP TO 812 206 7520 by November 21, 2011 if you would like to attend this event. You may also reply via email at cricket@allycommunications.com

Filed Under: Family finances, Financial challenges, financial literacy, Holidays and money, Southern Indiana Asset Building Coalition, Uncategorized

How long is long enough?

September 8, 2011 By Cricket

When it comes to keeping important papers like tax returns, bill payment records and bank statements, consumers often ask, ‘How long is long enough?’ We found some great advice from the folks at www.lifeorganizers.com with some great tips on just how to answer that question.

How Long Do I Really Need To Keep This?

by Maria Gracia – Get Organized Now!

Every year April 15 rolls around, and so many people ask me the infamous question, “How long do I need to keep all this stuff?!?!” And the answer generally is that if it has anything to do with your taxes, probably for a long time. But have no fear! The average family can keep it all organized with a good filing system throughout the year, and some catalog envelopes to store documents from past years.
So how long do you need to store these records you’ll probably never look at again? While you should always check with your accountant for your specific personal guidelines, according to www.bankrate.com, some of the basic records retention rules are as follows:
  • Audit Reports: Forever
  • Bank Deposit Slips and Statements: 6 Years
  • Brokerage Statements: Keep until you sell the security
    You need the purchase/sales slips from your brokerage or mutual fund to prove whether you have capital gains or losses at tax time.
  • Credit Card Receipts: Keep your original receipts until you get your monthly statement; toss the receipts if the two match up. Keep the statements for seven years if tax-related expenses are documented.
  • Current Contracts and Leases: Life of Contract, plus 3 Years
  • Housing Records: As long as you own the home, plus 6 years. Keep all records documenting the purchase price and the cost of all permanent improvements — such as remodeling, additions and installations. Keep records of expenses incurred in selling and buying the property, such as legal fees and your real estate agent’s commission, for six years after you sell your home.Holding on to these records is important because any improvements you make on your house, as well as expenses in selling it, are added to the original purchase price or cost basis. This adds up to a greater profit (also known as capital gains) when you sell your house. Therefore, you lower your capital gains tax.
  • Insurance Records: Life of the policy, plus 10 years.
  • Investment Records: 6 Years after sale of the investment. Discard your monthly statements once you receive the annual summary that reflects yearly activity.
  • IRA Contributions: Forever
    If you made a nondeductible contribution to an IRA, keep the records indefinitely to prove that you already paid tax on this money when the time comes to withdraw.
  • Legal Correspondence: (Marriage Certificates, Death Certificates, Divorce Papers, etc.): Forever
  • Paid Bills: 1 Year
    Go through your bills once a year. In most cases, when the canceled check from a paid bill has been returned, you can get rid of the bill.However, bills for big purchases — such as jewelry, rugs, appliances, antiques, cars, collectibles, furniture, computers, etc. — should be kept in an insurance file for proof of their value in the event of loss or damage.
  • Pay Check Stubs: 1 Year
    When you receive your annual W-2 form from your employer, make sure the information on your stubs matches. If it does, toss the stubs. If it doesn’t, request a corrected form, known as a W-2c.
  • Retirement and Savings Plans: From one year to permanently. Keep the quarterly statements from your 401(k) or other plans until you receive the annual summary; if everything matches up, then toss the quarterlies. Keep the annual summaries until you retire or close the account.
  • Tax Returns and Supporting Documentation: 7 Years The IRS has three years from your filing date to audit your return if it suspects good faith errors. The three-year deadline also applies if you discover a mistake in your return and decide to file an amended return to claim a refund. The IRS has six years to challenge your return if it thinks you underreported your gross income by 25 percent or more.There is no time limit if you failed to file your return or filed a fraudulent return.
  • Warranties/Guaranties: Life of the Product

 

Filed Under: 6 month money challenge, Asset Building, Financial challenges, Financial Stability, Southern Indiana Asset Building Coalition, Uncategorized

Bills taking over your desk?

September 6, 2011 By Cricket

Organization is key to keeping track of our bill paying!

Sometimes our bills pile up and become so overwhelming that it’s easy to want to throw in the towel! But taking a simple approach to organization is the first step in conquering that mountain! Our friends at www.realsimple.com are the experts at all things simplified and offer some great tips for getting on the right track!

 

1. Sort and corral unpaid bills

How To: Organize Bills Step 1Designate a box, basket, or folder specifically for bills. As soon as the mail comes, separate the bills from everything else and open them, throwing away the outer envelope and any inserts. Corral them in your designated spot until you’re ready to pay them. Tip: Instead of keeping bills in an office file, use a letter rack. As you open mail, stash the bills in order of their due dates. This way, you’ll have a visual reminder that they’re waiting to be paid.

How To: Organize Bills Step 2

2. File paid bills in an accordion file

Label a 13-pocket accordion file with tabs for each month of the year. Reserve the last slot for the year’s tax return. As you pay your monthly bills, file them under the appropriate month. Add bank statements and credit card receipts. When you complete your tax return, drop that in, too.
Aha! To streamline your bill-paying process, find out whether your bank offers online banking and whether your utility and service companies offer online and automated payment options.

Click here to watch a video demonstration!

Filed Under: 6 month money challenge, Asset Building, Family finances, Uncategorized

Word of the Week

July 12, 2011 By Cricket

debt collector

Definition

Individual that works for a debt collection company by calling and on some occasions harassing a debtor to pay an outstanding balance. Debt collectors are required by law to follow procedures set forth in the Fair Credit Collection Act, but many still used illegal techniques to collect funds.

Read more: http://www.investorwords.com/8568/debt_collector.html#ixzz1Rx0I0H2N

Filed Under: Asset Building, Financial challenges, Southern Indiana Asset Building Coalition, Uncategorized

June is Savings Month at SIABC

June 18, 2011 By Cricket

Saving money is more important than ever in these uncertain times. 

With the right amount of savings, we all can live more secure, prosperous and responsible lives. Saving money should be everyone’s goal, and we all should be looking for tips on how to do so. We hope to provide you with the information needed to make the best saving decisions related to money.

Our ability to save and store things is what gives us the freedom to look past day-by-day living and gives our lives the safety and security our ancestors never knew. Unfortunately, from government to individuals, much of modern society has forgotten how to live within its means and properly save for the future. In these tips we hope to help give you the motivation, information and tools to think more about saving money again.

 Tip 1: Spend Less. This is not over simplifying the best way to save money! It is essential if you are serious about being a long term money saver and being able to save money every day. Review what you spend and look at ways you can save money.

 Tip 2: Establish a personal budget. This is essential for families and individuals and can be the fastest way to save money. You will instantly see your incomings and outgoings once you create your budget. You will not be able to save money unless you know how much money you have coming in, and how much money you have going out.

 Tip 3: Buy used. Sure, we all like to buy new. But there are huge money savings to be made in buying used. Typically cars lose one-third of their value in the first 24 months from new.  Look for ways to buy “as good as new” items and save money. 

 Tip 4: Eat in rather than out. This is a huge area where you can save money. A cup of coffee taken out could easily cost you TWENTY times (or more) what it would cost you to make it at home. Fast food restaurants are counting on you eating food that you perhaps don’t really need at that time but buy just because it is quick.

 Tip 5: Don’t carry excessive debt. Some debt in our lives may be essential. We may need a mortgage to purchase a home, we may need to use our credit card to make purchases until pay-day, but your aim to save money should be to have as little debt as possible. Credit Card debt is typically the most expensive debt we may carry. You will be able to save money every month if you make it an absolute rule to pay off your outstanding balance every month.

Why not start today in making sure you have money to maintain your current standard of living in your retirement years or when the unexpected happens. 

Call SIABC if you have questions about these tips, are in need of financial counseling or would like to help others get on the right path to financial independence.  

Contact Executive Director Whitney Bishop at 812 206 7514.

Filed Under: Asset Building, Changing Economy, Family finances, financial counseling, Southern Indiana Asset Building Coalition, Uncategorized

A lesson learned

May 20, 2011 By Cricket

Guest post by Kenny Smith

My 16-year-old daughter opened up a checking account a couple weeks ago.  It’s a free account for children ages 13-17 whose parents have an account with the bank. 

She had done a little work for our church and received her first official paycheck – meaning taxes were taken out.  It wasn’t a lot of money, but a start.

 She said she opened the account because she thought it will help her save some money.  But then that debit card came in the mail – $5 at Starbucks, $10 at Target, $20 at Old Navy $30 eating out and just like that her account had a few dollars left.

She said with the debit card it wasn’t even like she was spending money – she was just giving them a plastic card.  Statistics prove people spend more when using a card vs. cash.  It’s harder to let go of that cash.

Many financial experts suggest using the envelope system and paying cash for everything.  I’ve talked to some people who have tried it and they found themselves spending about $60 less per week.  Check out Dave Ramsey’s advice from www.DaveRamsey.com  for using the envelope system or contact SIABC for help.

 http://www.daveramsey.com/article/dave-ramseys-envelope-system/lifeandmoney_budgeting/

Filed Under: Budgeting, Family finances, Parents and teens, Southern Indiana Asset Building Coalition, Teens and money, Uncategorized

Big Finish to a GREAT Tax Season

May 5, 2010 By Whitney

Best Volunteers in the World!

Our numbers are up for the 5th year in a row, which means that more families in Southern Indiana were able to take advantage of our free tax preparation services! This represented the work of about 110 talented and dedicated volunteers, 6,000+ hours of volunteer time and over 1.6 million dollars in tax refunds. Wow! The final results are still coming in but I couldn’t wait to share these initial reports.

Special thanks to our partners at AARP and the IRS as well as to our host sites throughout the community.  Community Action of Southern Indiana, Your Community Bank, Interfaith Community Council, Scott County Partnership, New Washington State Bank, Harrison County Community Services, Charlestown, Clarksville, Henryville & Sellersburg Libraries, American Legion Post 28 and Hillview Apartments.

Special thanks to the Metro United Way, Indiana Association of United Ways, Wal Mart Foundation, New Washington State Bank and Community Action of Southern Indiana for providing funding to support this meaningful work!

Look for stories from tax season and our final numbers in the weeks ahead.

We are committed to keeping these services free and available – donations always accepted! Click the donate now button on the front page of our website to pledge your support for free tax prep, financial counseling & financial coaching in Southern Indiana.

Filed Under: Earned Income Tax Credit, financial counseling, Financial Stability, Southern Indiana Asset Building Coalition, Uncategorized, vita tax preparation Tagged With: , , , ,

Additional Free Tax Prep Site Open in Scott County

March 4, 2010 By Whitney

Opening a new “VITA” site in Scott County for FREE Income Tax preparation for Local Families that Qualify.

The Southern Indiana Asset Building Coalition Building and Scott County Partnership have decided to open a second (VITA) Voluntary Income Tax Assistance site here in Scott County. This program is for low income families and the elderly of Scott County.  The VITA program is administered by the Internal Revenue Service to give taxpayers with household incomes under $48,000 per year the opportunity to receive FREE tax information and assistance in electronic filing of their Federal and Indiana tax returns for 2009.  This IS NOT a rapid refund program.

All income tax returns will be prepared by a VITA program volunteer from our community. Each volunteer has completed the IRS-required tax training and successfully passed the IRS certification exams. An IRS-trained supervisor will be present at all times.

An appointment is required for this service. Please call (812) 752-5800 to schedule an appointment. Dates and times of service is as follows: March 5, March 12, March 13, March 19, March 26, March 27, April 2, and April 9, from 9:00a.m to 12:00p.m. on Friday’s and 9:00am to 11:00am on Saturday’s. The Second Scott County “VITA” site is located at the New Washington State Bank, 1770 West McClain Avenue, Scottsburg, Indiana.

This program is open to eligible residents of Scott County that meet the income guidelines of $48,000 or less per household and will be filing the following Federal Income Tax Forms: *Form 1040EZ, *1040A and *Form 1040 (including Schedule A and B only), with a filing status of Single, Married Filing Joint, Head of Household, Surviving Spouse. Earned Income Credit (EIC), Credit for Child and Dependant care expenses, Child Tax Credit and Form 8812 (for additional child tax credit), Education Credit (Hope Scholarship Credit and Lifetime learning Credit).  Simple Itemized Deductions (interest, taxes, cash or check charitable contributions only, union dues). Capital Gains can be processed if the capital gain is reported on box 1, 2a, and 4 on Form 1099-DIV and no Schedule D is required. The Indiana State Tax Forms *IT-40EZ and *IT-40 (including Renter’s Deduction).

Proper documents are required at the scheduled appointment:

  • W2’s
  • Social Security Card or a receipt letter for a replacement Social Security Card.
  • Children’s Social Security Cards
  • Valid Photo identification
  • Bank account information
  • Last year’s tax return
  • 1099’s (if applicable)
  • Childcare provider name, address, tax ID number
  • Amount of 2009 Economic Recovery payment (stimulus check)
  • Closing paperwork (if claiming home credit)
  • If renter, landlord’s name and address
  • New Car purchase tax and license records

The types of Federal Income Tax Returns CANNOT be processed with VITA program: Filing status of Married Filing Separately, Business Income, Rental Income, Certain Itemized Deductions (medical/dental expenses, casualty and theft losses, non-cash/non-check charitable contributions), Estimated taxes, IRA deductions (if partially taxable and partially non-taxable), Income tax returns prior to the 2008 tax year, any tax items relating to Schedules C, D, E, and/or F,   tax payers and/or dependants that do not have Social Security Numbers or one that begins with the digits of “900”. Indiana State returns for non-residents (either part or full year non-resident or reciprocal non-resident).

Filed Under: Uncategorized Tagged With: , , , , , , ,
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