Yes, Lisa. If Congress passes this change, it could impact an inherited home. This is pretty heavy on tax jargon, but you can learn more about the current rule here: https://www.irs.gov/faqs/interest-dividends-other-types-of-income/gifts-inheritances/gifts-inheritances
Great point for all types of 1099 income! I’ve had clients send me incorrect 1099 forms for my writing income, too.
Yes, most federal loan payments (and interest) are paused through December 31: https://twocents.lifehacker.com/youve-got-more-time-to-pay-off-your-federal-student-loa-1844675419
Secretary DeVos announced some additional details on Friday: https://www.ed.gov/news/press-releases/secretary-devos-fully-implements-president… Read more
Yes, sadly most people don’t itemize anymore because of high standard deductions—which makes the mortgage interest deduction less useful. Luckily, the student loan interest deduction is an adjustment to your income. You can take it whether you itemize deductions or not: https://www.irs.gov/taxtopics/tc456
Here’s what the IRS says (Q27) about payments for children born, adopted or placed into foster care in 2020:
“The Payment in 2020 will not include an additional amount for these children because the Payment in 2020 is based only on information from your 2019 or 2018 tax return. You may claim the child next year for an… Read more
Wow, thank you so much for the kind words and encouragement! :)
Although these past few months counted toward PSLF, the new memorandum doesn’t state whether this will be the same for the extension. I would suggest keeping an eye on the Department of Education’s website for further guidance: https://studentaid.gov/announcements-events/coronavirus/
Yes, unfortunately, the CARES Act only covered government-held federal student loans. Commercially-issued FFEL-program loans, Perkins loans, and private student loans weren’t included. This latest executive order is an extension of the CARES Act—not an expansion—so we can’t assume these other types of loans will be… Read more
Have you received first payment? If you qualify this time, you should get the second one automatically—assuming your address or banking details haven’t changed since the spring.
I agree the 1% rule feels counterintuitive. If you’re able to achieve 0% every month and stay on-time with all your payments, your score is probably already in the good to excellent range.
Increasing your credit limits is a viable way to lower your utilization percentage. But unfortunately, banks have been lowering limits and closing accounts amid the pandemic: https://twocents.lifehacker.com/what-to-do-if-your-credit-card-limit-gets-cut-1844343780 There are a few ways to try and avoid this, though: Read more
This is a good point. There is no guarantee a new company will offer the same white glove service. But if you decide to explore other options, you can check for claims process complaints in these places:
- Your state insurance commissioner’s website
- Better Business Bureau
- Google Reviews
- ConsumerAffairs
There’s a good explainer on both types of coverages here: https://www.iii.org/article/what-is-covered-by-collision-and-comprehensive-auto-insurance
As someone who is barely driving a fully paid for 2006 Toyota Corolla, I felt comfortable dropping collision coverage—but everyone’s situation is different.
It’s tough to make a suggestion without knowing more—but if your job is stable and your credit is strong, it may be worth looking into. It doesn’t hurt to shop around and what rates you may qualify for.
I haven’t seen this addressed but you should have the option to opt-out if you prefer. Talk with your 401(k) plan administrator before leaving the job to learn more.
A 401(k) does offer some benefits over an IRA. For example, depending your plan, you may have access to 401(k) loans. You can’t borrow money from an IRA. There are some scenarios where you may avoid a penalty for withdrawals, though: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-… Read more
Good point! Also, you can’t take a loan from an IRA. There are some situations where you may avoid a penalty for IRA withdrawals, though. There’s a good summary here: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions
Great question. I haven’t seen updates for other types of retirement accounts. In the meantime, the IRS offers a handy chart on what types of rollovers are allowed between different types of retirement accounts: https://www.irs.gov/pub/irs-tege/rollover_chart.pdf
