Monthly Archives: February 2025

Feb 22 2025

FREE TAX FILING SERVICES FOR TAX YEAR 2024

Millions of taxpayers with an uncomplicated financial situation can qualify for free online tax filing. However, be cautious of companies that advertise “free” tax filing, as not everyone may qualify.

You might qualify for free tax filing with one or more of these services:

  • IRS Free File (https://www.irs.gov/filing/irs-free-file-do-your-taxes-for-free) is for taxpayers with an adjusted gross income (AGI) of $84,000 or less. This site can also guide you to the best free filing software for your situation. Remember, some of the suggested websites have a fee for filing a state tax return. If your AGI is over $84,000 you can still use the IRS Free File; you will have to fill out the online forms on your own.
  • H&R Block (https://www.hrblock.com/online-tax-filing/) offers a free online tax filing service for low-to-moderate income taxpayers and students that includes your state tax return. This site is appropriate for taxpayers with W-2 and unemployment  income, parents who claim the Child Tax Credit as well as students and first-time filers. The H&R Block app can also be used for filing online. More complex tax situations will require the Deluxe version costing $35.
  • Cash App Taxes (https://cash.app/taxes) is for anyone filing a simple federal tax return with only one state tax return. No additional charges are involved, which includes audit defense if your return is questioned by the IRS.
  • TurboTax Free Edition (https://turbotax.intuit.com/best-tax-software/why-its-free/) is an option for which over 35 percent of taxpayers are eligible. You must have a simple Form 1040 (no schedules except for Earned Income Tax Credit, Child Tax Credit and Student Loan Interest). Those who contributed to a traditional IRA or HSA won’t qualify for the free version. 
  • TaxSlayer (https://www.taxslayer.com/) is for taxpayers under age 65 with a simple return (no dependents, claim standard deduction) and one state tax return, not claiming a Child Tax Credit and no IRA or HSA contributions, and a maximum taxable income from wages or unemployment of $100,000. Allows deduction of student loan interest and educational expenses, which is especially beneficial for current and former students. Members of the military are eligible for a free return with more complicated situations – tax credits, deductions, self-employment (https://www.taxslayer.com/products/taxslayer-military/)
  • AARP (https://taxaide.aarpfoundation.org/) for taxpayers over age 50 (and active- duty military members) with an AGI under $84,000. Offers in-person and online free tax-filing assistance.
  • FreeTaxUSA (https://www.freetaxusa.com/) is free for those with a simple tax situation but is affordable for complex tax returns ($7.99), and requires a $14.99 fee for each state tax filing. The Deluxe Version includes live chat support.
  • TaxAct (https://www.taxact.com/) is beneficial for tax filers with simple returns. Those with more complex tax situations can upgrade to a Deluxe Package. Filing a state tax return has a $39.99 fee.

Final note: IRS Free File allows you to compare free tax filing options. And, if you are not eligible for a free tax return, FreeTaxUSA and TaxAct offer affordable tax filing options.

For additional information on free tax filing services, go to:

Free-tax-filing-services
Free Filing Handout

Teaching Suggestions

  • Have students talk to others about their experiences when filing federal and state income tax returns.
  • Have students visit the website of one or more of the tax services in the article to obtain additional information related to their personal tax filing situation.

Discussion Questions 

  1. What features of free tax filing websites might be beneficial for your tax situation?
  2. Describe actions a person might take to evaluate the benefits of various free tax filing websites.   
Feb 15 2025

Plan ahead for the New Year

For many, December means spending lots of money on presents, food, travel, and other things to get you through the end of the year. And after we stretch our wallets, January’s often for taking stock and planning for the year to come.

If that’s true for you, here are some things to hopefully save you time as you transition from holiday festivities to financial goals in the New Year.

Are you:

Looking for more? The FTC’s consumer.gov site has tools to help you in the New Year and beyond. Get the basics on these and other topics like avoiding scams and identity theft at consumer.gov in English, Spanish, Chinese (Simplified), Korean, and Vietnamese. You’ll also find videos and free, one-page handouts to share in your community. 

For more information, click here.

Teaching Suggestions:

  • Ask students to get their free credit reports from Equifax, Experian, and TransUnion, and sign up for free credit monitoring with Credit Sesame or Credit Karma.
  • Ask students to list the main steps in creating a budget.  What are commonly recommended qualities of a successful budget?

Discussion Questions:

  1.  Why is it important to check your credit reports regularly?
  2.  What are the most frequent reasons for indebtedness?
  3.  What are common danger signals of potential debt problems?
Feb 8 2025

MINDSETS AND HABITS FOR IMPROVED FINANCIAL WELLBEING

Warren Buffet, a renowned investor, offers five mindset actions that can contribute to your financial wellbeing and long-term wealth.  These are:

1. Invest in Yourself.  You are your most valuable asset. Critical to financial and professional success is self-improvement and personal growth.  Obtain further education, specialized certifications, and new career skills for increased marketability and earning power.  This can be achieved through online courses, workshops, or working with a mentor.

2. Think Long-Term.  Avoid a get-rich-quick belief, which is very often destructive. Instead, identify investments with the potential to grow steadily over time. Expect market values to fluctuate in the short term so resist the temptation to be concerned about these ups and downs. Focus on your long-term plan to achieve your goal of financial wealth.

3. Develop Financial Discipline. Too often people save what is leftover. Instead, develop good financial habits with a budget that avoids unnecessary spending and emphasizes saving and investing. Live below you means, even as your income increases. Automate your savings with a set amount transferred to an investment account each month.

4. Surround yourself with wise, informed individuals.  You tend to become like those with whom you associate.  Seek those who will motivate you, reveal new ideas and opportunities, and help you develop positive financial habits.

5. Be patient.  Building wealth requires patience, persistence, and staying with your plan despite short-term difficulties.

In addition to these mindsets, other habits that contribute to financial wellbeing include:

  • Set clear goals in writing with action steps and deadlines to achieve savings targets and other financial success.
  • Develop a growth mindset in which you seek feedback, learn from failure, and maintain a desire to improve.
  • Plan for continuing education. Read extensively, take courses, and develop new skills. 
  • Connect with a mentor who can provide guidance based on their experiences.
  • Practice wise money management by tracking spending, using a budget, and maintaining detailed financial records.
  • Start investing early, even with only a small amount. Be consistent with your deposits. 
  • Build a network of successful individuals who can provide financial and career guidance.
  • Volunteer in your community to make connections and gather business opportunities.
  • Consider starting a side business while working full time. 
  • Practice wise time management to prioritize high-value activities and to eliminate time-wasting activities. 
  • For physical and mental wellness obtain adequate sleep, regular exercise, proper nutrition, and stress management. 
  • Stay informed about industry trends, new technology, and economic conditions to adapt to new investment and career opportunities. 

Bottom of Form

For additional information on improved financial mindsets and habits, go to:

Link #1

Link #2

Teaching Suggestions

  • Have students talk to others to obtain suggestions for successful investment and wealth-building actions.
  • Have students create a visual (poster, slide presentation, or video) that communicates wise mindset habits for obtaining financial wellbeing.

Discussion Questions 

  1. Which of the mindset actions are you currently using? Which ones might you implement in the near future?
  2. Describe barriers that people might encounter to prevent them from achieving long-term financial wellbeing.   
Feb 1 2025

Annuity or Lump Sum

Many people with a retirement plan are asked to choose between receiving lifetime income (also called an annuity) and a lump-sum payment to pay for their day-to-day life after they stop working. An annuity provides a lifetime steady stream of income while a lump sum is a one-time payment.

Because this decision will affect your financial future, here is some information to help you make an informed choice. Deciding which option works best for you takes careful consideration because there are many factors to think about, such as your health, cost of living, assets and savings, and any other income you may have.

Why is this important?

Your employer may ask you to choose between an annuity and lump sum. For example, your employer may ask you to make this choice (1) if you change jobs, (2) when you stop working, or (3) even after you have begun to receive monthly annuity payments.

When making this decision, explore the benefits and risks because whichever option you choose will affect your financial future.

What are the benefits and risks?

 AnnuityLump Sum
Benefits-You will receive a steady income for the rest of your life, like keeping a part of your paycheck for life
-You may be able to provide a lifetime income to your spouse or to another beneficiary		-You can use the money to pay off large debts
-If you don’t spend all of the lump sum, you can pass it on as an inheritance
Risks-Annuities may give you less financial flexibility and may not pay benefits to your survivors
-If you are in poor health, an annuity may not provide enough money to cover medical bills		-You may outlive your retirement funds
-It’s your responsibility to manage the money to provide you

Factors you should consider:

  • Your health (and your spouse’s)
  • Your investment skills (and your spouse’s), and how they may change as you age
  • Your living expenses (now and future)
  • Your savings (and your spouse’s)
  • Other steady income (Social Security, pensions from other employers)
  • Debt (mortgage, car, credit cards, student loans, child support payments)
  • Taxes on the annuity or lump sum

For more information, click here.

Teaching Suggestions:

  • Ask students what type of annuity would best fit their financial situation and what payout option would they choose.
  • Ask students to discuss all of their possible options with an insurance agent.

Discussion Questions:

  1. Why should you consider your health in making a choice between an annuity and a lump sum payment?
  2. What are the possible benefits and risks of making “annuity versus lump sum” decision in your own financial situation?