With the U.S. federal income tax filing deadline of April 15 now just weeks away, taking time to review your tax situation and plan for any needed action will save you time, stress and, quite possibly, money.

With the economic recession impacting so many Americans in 2009, many people will have complicated filing situations this year, says Jeff Staley, president of Freedom Tax Relief, LLC. “This is the time to prepare, review your tax obligations and evaluate your alternatives for payment if you find you may have difficulty in paying your tax bill this year.” Staley recommends taxpayers follow these steps now in order to be ready for April 15:

1. Make a plan for filing. Make plans now to ensure that you will be able to file your income tax return on time. If that is impossible, file an extension. The Internal Revenue Service (IRS) is more forgiving of those who follow the rules than those who skip filing. Even if you cannot pay your tax debt in full on April 15, filing the required forms will result in smaller penalties.

2. Understand tax on unemployment benefits. Unemployment income is taxable. If you received unemployment benefits during 2009, you should have received a Form 1099-G providing the total amount received. If your employer paid separate unemployment compensation, that income should be reported on your W-2 form as income. Note that the first $2,400 of government benefits received in 2009 is exempt from tax, thanks to the American Recovery and Reinvestment Act.

3. Prepare documentation for tax credits. Review your 2009 expenses to know whether you qualify for credits. The American Recovery and Reinvestment Act of 2009 (e.g., stimulus package) included many tax credits, ranging from an expanded health coverage tax credit to new education benefits.

4. Maximize deductions. If you made donations to nonprofit organizations in 2009, make sure you obtain needed appraisals or valuations to list these contributions accurately in your tax forms, per IRS guidelines.

5. Contribute to your retirement plan. If you plan to contribute to a retirement plan, you can still make tax-deferred contributions for 2009 until April 2010.

6. Estimate your payment. You can estimate your tax obligation by reviewing a copy of last year’s tax form, completed with your 2010 data. If you purchase tax return software, you can use that. Or go to www.irs.gov and download a PDF version of your form to fill out.

7. Plan for payment. If it looks like you will have a larger tax bill than you can afford to pay in full by April 15, the IRS suggests taxpayers find any means possible to pay that bill, including bank loans, cash advances on credit cards, using savings, borrowing against retirement or life insurance, or using equity in assets (such as a home) to pay. However, if you are in dire financial circumstances, exchanging one debt for another will not make things easier, and putting a home at risk is almost always a bad idea. Consult a tax and/or financial adviser before making a decision.

8. Evaluate your alternatives. If you will absolutely be unable to pay your tax bill, contact the IRS. The agency sometimes gives some leeway to taxpayers who contact them directly or pay a late bill voluntarily. The IRS might waive penalties for those who cannot pay because of a death in the family, serious illness, financial records lost in a natural disaster or another “reasonable cause.”

Another alternative is tax debt resolution. Tax resolution specialists can often negotiate directly with the IRS on behalf of consumers who owe $10,000 or more. These specialists usually are attorneys, enrolled agents or certified public accountants with special training and experience. They can navigate the maze of IRS forms and calculations, help consumers understand what the IRS wants, and help them resolve their tax debt.

“As the April tax filing deadline looms, it is time to face up to the demands of the IRS and determine a payment strategy for your tax bill,” says Staley. “In these economic times, it is good to know that help is available for those who need it.”

 

For more information, visit www.freedomtaxrelief.com.

Liv Mansfield is racing the clock, hoping to find and settle, or at least sign a purchase agreement, on a townhouse before the $6,500 tax credit for qualified repeat home buyers expires April 30, 2010.

While the credit is not as important as staying in the Wallingford school district, where her younger daughter will enter sixth grade next fall, Mansfield says it will help make expenses associated with the move ‘a wash.’ “It will help with moving costs, and with getting this house ready for sale,” said Mansfield, who has lived in the five-bedroom split-level Colonial she bought with her former husband nine years ago.

The house, which she says is far larger than what “two people and a small dog need,” will list for under $525,000 and heads for the market Feb. 15, 2010.

Current homeowners buying a house between Nov. 7, 2009, and April 30 and who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight can qualify for the $6,500. It seems less is known about the repeat buyer credit. This incentive was added when the original $8,000 tax credit for qualified first-time buyers, which expired Nov. 30, was extended.

Houses purchased for $800,000 or less are eligible for repeat buyers. Single buyers with incomes up to $125,000 and married couples up to $225,000 may receive the maximum tax credit for both repeat and first-time purchases. The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Buyers earning more than the maximum are not eligible for the credit. If a binding written contract to purchase is in effect April 30, the purchaser will have until July 1, 2010 to close.

The 2009 credit for first-timers helped jump-start the sagging home market in the summer and fall, data show. Walt Molony, a National Association of Realtors (NAR) spokesman, said two million existing-home sales in 2009 could be attributed to the $8,000 first-time buyer credit. Although it is too early to measure the credit’s effect on sales so far this year, Molony said NAR chief economist Lawrence Yun believes it will add 1.5 million sales to the tally.

The repeat-buyer credit was added to appease builders, who said the original did not offer enough time to purchasers of new houses, which take at least six months to build, to close on them. New homes accounted for only 7% of the tax-credit-based sales, Molony said.

The National Association of Homebuilders’ Donna Reichle said, “We hear builders saying they are getting inquiries, but that’s all so far. According to our economists, it’s way too early,” Reichle said. “If you look back at the passage of the original $8,000 credit and impact on housing starts, it took a couple of months, and that was in the spring as well.”

Moody’s Economy.com chief economist Mark Zandi says the credit will boost sales “modestly,” however, by 300,000, with one-third trade-up buyers. “I don’t expect the credit to be extended again,” Zandi said. “Each time it is extended, it becomes less effective and thus more costly.”

David Krieger, senior vice president and general manager of Coldwell Banker Preferred in Philadelphia, says he believes that “a very large increase in our listing inventory in January is a result of the $6,500 credit.” Still, the $8,000 first-time credit remains the chief reason his company’s home sales were 33% higher last month than in January 2009, he said.

Typically, repeat buyers are better off financially than first-timers, so a lot of repeat buyers realize from the start they don’t qualify for the credit, Weichert Realtors agent Alec Schwartz said. “What they do realize, and what is getting more sellers to list, is that they understand that there are plenty of first-time buyers who qualify for the $8,000 credit out there, and they have a much better chance of selling their house and buying a new one than before,” said Schwartz, Liv Mansfield’s agent.

This is also true in the region’s new-home market, said Wayne Norris, regional sales manager for Hanley Wood Market Intelligence. “Builders have experienced increased activity in recent months” attributable to the $6,500 credit and “the fact that many potential buyers were able to sell their houses” to those taking advantage of the first-time buyer credit,” he said. The sense of urgency to make the tax-credit deadline and fears of rising interest rates will push new-home sales higher in the spring, Norris said.

 

(c) 2010, By Alan J. Heavens,The Philadelphia Inquirer.

Sales increased from the third quarter in 48 states and the District of Columbia; 32 states saw double-digit gains. Year-over-year sales were higher in 49 states and D.C.; all but three states had double-digit annual increases.

Total state existing-home sales, including single-family and condo, jumped 13.9% to a seasonally adjusted annual rate of 6.03 million in the fourth quarter from 5.29 million in the third quarter, and are 27.2% above the 4.74 million-unit level in the fourth quarter of 2008. Distressed property accounted for 32% of fourth quarter transactions, down from 37% a year earlier.

Lawrence Yun, NAR chief economist, said the first-time home buyer tax credit was the dominant factor. “The surge in home sales was driven by buyers responding strongly to the tax credit combined with record low mortgage interest rates,” he said. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices.”

According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage fell to a record low 4.92% in the fourth quarter from 5.16% in the third quarter; it was 5.86% in the fourth quarter of 2008.

In the fourth quarter, 67 out of 151 metropolitan statistical areas reported higher median existing single-family home prices in comparison with the fourth quarter of 2008, including 16 with double-digit increases; one was unchanged and 84 metros had price declines. In the third quarter only 30 MSAs showed annual price increases and 123 areas were down.

The national median existing single-family price was $172,900, which is 4.1% below the fourth quarter of 2008; the median is where half sold for more and half sold for less. “This is the smallest price decline in over two years, with the most recent monthly data showing a broad stabilization in home prices,” Yun said.

“Because buyers are taking on long-term fixed rate mortgages, avoiding adjustable-rate products, and trying to stay well within their budgets, the price recovery process appears durable,” Yun said.

NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz., said near-term market conditions will remain favorable. “Mortgage interest rates are expected to trend up later this year, but right now we have very good conditions with steadying home prices and favorable inventory in most areas, especially in the higher price ranges,” she said.

“The biggest issue is for repeat buyers, who will have to accelerate their buying plans if they want the expanded tax credit. Since you must have a contract in place by the end of April, the best advice is to consult a Realtor now about qualification criteria and options in your area,” Golder said. Repeat buyers do not have to sell their existing home, but all buyers must occupy the property they purchase as a primary residence to qualify for the tax credit. Buyers who have a contract in place by April 30, 2010, have until June 30, 2010, to finalize the transaction to get a credit of up to $8,000 for first-time buyers and $6,500 for repeat buyers.

In the condo sector, metro area condominium and cooperative prices–covering changes in 54 metro areas–showed the national median existing-condo price was $177,300 in the fourth quarter, down 4.8% from the fourth quarter of 2008. Eleven metros showed increases in the median condo price from a year earlier and 43 areas had declines; in the third quarter only four metros experienced annual price gains.

Northeast
Regionally, existing-home sales in the Northeast rose 11.1% in the fourth quarter to a pace of 1.03 million and are 33.6% higher than a year ago. The median existing single-family home price in the Northeast declined 5.6% to $234,900 in the fourth quarter from the same quarter in 2008, but with widely varying conditions. “In the Northeast, markets with lower median prices that have avoided wide swings, such as Buffalo, are generally showing consistent price gains,” Yun said. “Even so, some of the higher cost areas are showing signs of stabilization, such as Nassau-Suffolk, N.Y., and Boston.”

Midwest
In the Midwest, existing-home sales jumped 14.5% in the fourth quarter to a pace of 1.38 million and are 29.9% above a year ago. The median existing single-family home price in the Midwest rose 1.1% to $141,100 in the fourth quarter from the same period in 2008, with the region accounting for the majority of metro areas experiencing double-digit gains.

Yun said markets with high unemployment rates in Ohio and Michigan experienced large price swings. “Big price gains in many Midwestern areas are due to a more normal range of home sales in contrast with predominately foreclosed sales a year ago,” he said.

South
In the South, existing-home sales rose 13.8% in the fourth quarter to an annual rate of 2.23 million and are 28.2% higher than the fourth quarter of 2008. The median existing single-family home price in the South was $153,000 in the fourth quarter, down 2.4% from a year earlier. “Affordable markets in the South that have relatively better local economies are seeing healthy price gains, such as Houston, Oklahoma City and Shreveport, La.,” Yun said.

West
Existing-home sales in the West jumped 16.2% in the fourth quarter to an annual rate of 1.38 million and are 18.2% above a year ago. The median existing single-family home price in the West was $227,200 in the fourth quarter, which is 8.9% below the fourth quarter of 2008, but with many areas showing notable gains.

“Markets in the West such as San Francisco, San Jose and Denver are showing double-digit price increases, and other markets like San Diego and Anaheim have begun to firm up,” Yun said.

For more information, visit www.realtor.org.

A national survey recently released by real estate leader Trulia shows that many Americans feel that President Barack Obama has not lived up to the hope he created during his campaign and his first 30 days in office. In Trulia’s latest American Dream survey conducted online on its behalf by Harris Interactive from January 19-21, 2009, President Barack Obama scored considerably lower marks on the topic of restoring the American dream of homeownership compared to a survey conducted February 20-24, 2009 after his first 30 days in office.

The current survey found that 37% of Americans gave President Obama a grade of “D” or “F” on the decisions he’s made towards restoring the American dream of homeownership compared to only 22% in the February 2009 survey.

Additionally, 54% gave him a grade of “A” or “B” in February 2009 compared to only 37% in January 2010. Despite these lower grades, and the troubles that have continued to plague the U.S. housing market, the survey found that the “American Dream” of homeownership continues to be alive and well with more than three out of four Americans considering owning a home as a part of achieving their personal American dream.

“I am thrilled to see that the American dream of homeownership is alive. If the dream had died we would be in a lot of trouble,” said Pete Flint, CEO and co-founder of Trulia. “Everyone realizes there is no easy fix and we have a long road ahead. Until there is a reversal in unemployment and the growing number of home foreclosures, the U.S. real estate market will continue to see significant volatility. I agree with the results of our survey that job creation and job security have to be the President’s top priority.”

President Obama’s Report Card
Democrats currently rate President Obama’s performance higher than Republicans, but both downgraded the President’s performance in the January 2010 survey compared to the survey Trulia conducted in February 2009. The current survey shows that “A” ratings from Democrats decreased by 19 percentage points and a 3 percentage point decrease from Republicans. Additionally, “F” ratings from Democrats increased by 3 percentage points and by 13 percentage points from Republicans.

Priorities Going Forward
Democrats and Republicans agree on the areas President Obama needs to focus on in 2010 to stabilize the U.S. real estate market. Creating jobs and job security continues to be at the top of the list with 62% of adults referencing it as a key priority for the President. With foreclosures reaching record levels in 2009 and expected to grow even more this year, it’s not surprising that 45% of adults included this as an important area of focus. Rounding out the top three priorities for President Obama is bringing/keeping low interest rates at 39%. Only 27% of Americans surveyed believe extending the home buying tax credit through the end of 2010 should be a key initiative to help stabilize the housing market.

This sentiment was also echoed on Trulia Voices Community, with many users feeling that President Obama tried to do too much, and that the key to fixing the economy and housing market will be to focus on creating new jobs and job security.

Positive and Negative Views
The majority of Americans surveyed were unaffected by the events that have transpired during the past year in the housing market, with 60% saying their view toward homeownership is unchanged. Slightly more of those surveyed have a more pessimistic than positive outlook with 21% saying they have at least a somewhat more negative view toward owning a home compared to 20% having at least a somewhat more positive view.

information by trulia.com.

For the first time, Punxsutawney Phil’s followers can receive his official prediction via their mobile device by texting “Groundhog” to 247365 between now and February 2. After the initial text message, participants will be invited to submit their e-mail address to receive additional tourism-related messages.

“Punxsutawney Phil holds the fate of winter close to the vest and in his stump until daybreak on February 2, but the moment he emerges you can be among the first to learn of the forecast on your mobile phone,” said Mickey Rowley, deputy secretary for tourism at the Department of Community and Economic Development. “While we would love to have everyone come to the Pennsylvania Wilds to see Phil at Gobbler’s Knob, we don’t want anyone to miss his forecast.”

The text promotion was announced during Punxsutawney Phil’s annual visit to the Pennsylvania Farm Show. “Punxsutawney Phil’s popularity has grown so fast in the last few years. The Pennsylvania Farm Show is the perfect place for people to see him in person,” said Mike Johnston, vice president of the Punxsutawney Groundhog Club.

In addition to a text notification, a Webcast of the Groundhog Day festivities will be available at www.visitPA.com/groundhog, including links to Punxsutawney Phil-related videos on YouTube.

In a tradition dating to the 1800s, Groundhog Day is celebrated each February 2 in Punxsutawney, Jefferson County, about 80 miles northeast of Pittsburgh in the Pennsylvania Wilds. According to folklore, if the groundhog emerges in the early morning and sees his shadow, there will be six more weeks of wintry weather. If he does not see his shadow, there will be an early spring.

The more than 30,000 visitors who visit Punxsutawney each year for Phil’s prognostication can expand their experience by exploring the Groundhog Wine Trail or by staying in a bed-and-breakfast featuring a farm-to-table dining experience.

For more information, visit www.visitpa.com.

“As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential home buyers,” said Donovan. “FHA has an unprecedented opportunity to fulfill its mission by helping many home buyers find affordable housing while contributing to neighborhood stabilization.”

With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.

“This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed,” Donovan said.

In today’s market, FHA research finds that acquiring, rehabilitating and reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.

The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

“FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties,” said FHA Commissioner David H. Stevens. “This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity.”

The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of “flipping,” where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:

-All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
-In cases in which the sales price of the property is 20% or more above the seller’s acquisition cost, the waiver will only apply if the lender meets specific conditions.
-The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

For more information, visit www.hud.gov.

Shop local
Don’t assume that smaller businesses always charge more than big chains. Aside from the money you’ll save on gas by shopping close to home (and the free personal service you’ll receive), local stores have plenty of specials and sales. Check newspaper ads, ClipperMagazine.com, Valpak.com and ShopLocal.com for coupons, and sign up at stores for e-mailed notices and mobile alerts of sales. (If you’re worried about spam, set up a free e-mail account at Hotmail.com or Gmail.com).

Learn the value of a phone call
If you’ve made home improvements such as adding a security system or replacing your roof, you may be eligible for lower homeowner premiums. Give your insurance provider a call. Taken a senior driver refresher course? Joined a car pool and driving less? Call your auto insurance agent to see if you quality for savings. Cellphone plan up for renewal? Visit ClarkHoward.com for guides on switching providers and to compare plans and prices. Once you’ve found the best deal, call your current provider and see if they can match it.

Fix it free
Before you run up tech-support fees or call the Maytag repairman, check out free resources online. At TechGuy.org, close to a half-million users offer solutions to technology questions. Computer techies hang out at Computerhope.com and provide fixes for error messages, recalls and updates. “Check Engine” light on in your car? Visit 2carpros.com for how-to videos and guides for simple auto fixes. At RepairClinic.com, you can learn how to do appliance repairs on your own. Findhow.com and FixItClub.com list clear, easy-to-understand instructions for all types of projects. Be sure to check out Home Depot and Lowe’s hands-on home-improvement clinics.

Cut energy costs and get money from Uncle Sam
At HomeenergySaver.lbl.gov, a do-it-yourself energy audit tool shows how much you’ll save by buying energy-efficient appliances. EnergyStar.gov provides details on federal tax credits for energy-efficient home improvements. Lowes.com includes a home audit tool that helps homeowners save money on utility bills and find tax-credit-eligible products. You also can save by unplugging “vampires,” those small appliances that suck energy even when they’re off. Plug them into a power strip that you can turn off and on when needed. Still have those energy-eating incandescent light bulbs? Switch over to compact fluorescents.

Avoid credit card interest charges
At ShopDebtFree.com, make purchases from Web retailers without using credit cards. The site lets you pay directly from an online bank account.

Trim the fat from your grocery bills
Have some meals without meat. Try private-label and store-brand products. Most are made by the same companies as brand-name products. Shop discount grocers for low-cost staples. Combine sale prices with coupons for greater savings as often as possible. No time to clip and file coupons? Choose your top five most-purchased products (i.e., cereal, milk, eggs, laundry detergent and juice) and tear out just those alone. You’ll save as much as $20 each month. Take advantage of price matching. Bring in a competitor’s sale circular and ask if your store will match the deals. Check local store prices at CouponMom.com, always get a rain check for out-of-stock advertised sale items and don’t bypass organic goods. As more organic products have become available, prices have gone down, in some cases selling for less than regular items.

Cut prescription costs
Always comparison-shop (prescription prices vary from store to store) and go generic when you can. Walmart and other discount, grocery and pharmacy chains offer 30-day supplies of hundreds of generic drugs for $10 or less. At DestinationRX.com, find lower-cost options to expensive drugs and compare prices at thousands of pharmacies. Ask your health-care provider for samples and/or coupons. Check Optimizerx.com for special offers and coupons from drug companies.

Get social
Facebook and Twitter aren’t just for teens anymore. Stores, airlines and companies now use social networking sites to promote deals and specials and offer free samples of new items. You’ll also find local bargains posted by area deal hunters.

Research equals savings
Before heading to a mall or outlet center, check websites for discounts, specials and coupons. Sign up for loyalty clubs. Watch for coupons on grocery store shelves and on the back of register receipts. Check those blue envelopes that arrive in the mail for savings on dry cleaning, restaurants, car repairs and other services. If you’re purchasing something online, check for the best price at Shopzilla.com or PriceGrabber.com.

Buy and sell secondhand
Find new and gently used items at consignment stores, Craigslist.org and newspaper classified ads. Get rid of all that stuff in the basement and attic, and make some quick cash. Encourage your teens to do the same.

And last but not least, don’t buy anything you don’t need.

 

(c) 2010, K. Vann, The Hartford Courant

Many are looking to cut down on expenses when temperatures drop and home-heating costs rise. “There is usually an increase in home fires at this time of year because of the use of candles and space heaters,” said Scott Conner, Red Cross senior vice president for Preparedness and Health and Safety Services. “We have steps people can follow to reduce their risk of starting a fire in their home, and still cut down on their heating bills.”

Heat your home safely
-All heaters need space. Keep things that can burn, such as paper, bedding or furniture, at least 3 feet away from heating equipment, fireplaces and stoves.
-Place portable space heaters on a hard, level, nonflammable surface. Do not put space heaters on rugs or carpets, near bedding or drapes, and keep children and pets away. Look for a model that shuts off automatically if the space heater tips over. Do not use heating equipment to dry wet clothing.
-Never use the stove or oven to heat your home.
-Never leave portable heaters, wood burning stoves or fireplaces unattended. Turn them off before leaving or going to bed.
-Keep the fire in the fireplace by using a glass or metal screen large enough to catch sparks and rolling logs.

Cut down on your heating bills
-Eliminate drafts. Use either insulating tape or caulking strips to surround windows and door moldings. Cover your windows with plastic sheeting. If you have storm windows or storm doors, get them up to keep the cold out.
-Make sure heat vents aren’t blocked by furniture.
-Turn down the thermostat.
-Close off any rooms that aren’t in use and close heat vents or turn off radiators in those rooms.
-Insulate your light switch and outlet plates with foam pads. Cold air can seep into the house through them.
-Use heavy curtains to keep cold air out. Open them during the day to let the sun help warm your home and close them at night. Use fabric snakes or old carpets in front of windows and doors to help eliminate drafts.
-Turn off vent fans in the kitchen and bathroom when they are no longer needed.
-Set ceiling fans to blow air down.

Don’t forget Fido and your neighbor
-Dress in several layers of lightweight clothing. Don’t forget gloves or mittens, and a hat, preferably one that covers your ears.
-Wear waterproof, insulated boots to keep your feet warm and dry and to maintain footing in ice and snow.
-Don’t forget your pets- bring them indoors. If that’s not possible, provide adequate shelter to keep them warm and make sure they can get to unfrozen water.
-Check on people who require special assistance such as elderly people living alone, people with disabilities and children.

For more information, visit www.redcross.org.

Here are the 5 best buys for January.

-In the past, bed linens were available in one color—white—and sales on sheets and towels took place primarily in January. Now bedding is available in more patterns and colors than our grandmothers could have imagined and stores discount merchandise year round. But the tradition of January white sales continues. This month is a great time to shop for sheets, blankets, towels, comforters, tablecloths, electric blankets, pillows and more.

-Don’t ignore the bins of marked-down holiday gift wrap and candles. With a little digging, you’ll uncover merchandise in white, green, gold and other solid colors that can be used any time.

-Planning to redecorate? New furniture appears on showroom floors in February, which means big sales on past-season merchandise this month, says Jackie Hirschhaut, vice president of public relations and marketing for American Home Furnishing Alliance.

-The annual Consumer Electronics Show takes place in early January in Las Vegas, which means new cameras, televisions and other electronics will be appearing on store shelves in the spring. Now is the time to pick up last year’s models at discounted prices.

-If Santa dropped an engagement ring into your stocking this holiday season, savvy scheduling can help you avoid saying “I do” to a high-priced wedding. Plan your ceremony and reception (or any other event) for next January, February or March—the wedding industry’s slow season—and you’ll cut costs on facilities, flowers, entertainment and catering.

 

(c) 2010, By K. Vann, The Hartford Courant

Pare down. “Don’t be afraid to get rid of the stuff you don’t like,” says Darcy Munzer, owner of Organize4U in Independence, Mo. “If you don’t love it, get rid of it.” If it’s broken, it doesn’t work or you haven’t used it, toss it, but donate what’s in good condition.

Consider the sentimental value. The half-melted choirboy candles have always been on the mantel at Christmas, says Mary Ellen Vincent, owner of OrganizeMe in Kansas City, “because they remind me every year of my mom.” For some items, though, you may be able to snap a picture to preserve the memory, Vincent says.

Take inventory. How many wreaths do you own? Strings of lights? Before you can organize and store, you need to be aware of how much of everything you have, says Noelle Micek, a San Francisco-based expert in residential organization and design.

Keep track. Munzer writes everything down, including special Christmas recipes and the gifts she buys throughout the year, in a notebook that she keeps in her home office.

Choose your storage space, and measure it. Most people will store holiday decor in the basement, attic, garage, storage shed or even under the bed. Just make sure it’s out of the way; you don’t want to fight those bargain rolls of wrapping paper for the next 11 months. “Let the space you have limit what you own and keep,” Vincent advises. Know the dimensions of your storage space, Micek recommends, so any containers you buy will fit.

Keep it together. Store all the Christmas items—ornaments, cookie cutters and everything in between—in one spot, if possible. The exception: Keep certain heirloom items, linens and high-risk breakables in a temperature-controlled environment in the main part of the house.

Up and away. Holiday dishes can go in that hard-to-reach cabinet above the fridge.

Color code your containers. Use see-through plastic containers with the same color lids for each holiday, Micek suggests.

Label. Never put a box away without a label. Write on the sides with a black marker, or list the contents on a 3-by-5-inch card or color-coded construction paper. “You don’t want to look through 50 plain white boxes to find the four with ornaments,” Munzer says.

Number your boxes. Number them in the order they should be opened. “You want the tree stand and skirt before you get the lights and ornaments,” Micek says.

Choose the right containers. Buy the best quality containers you can afford. You’ll protect against water damage, accidental breakage and even pests such as mice. Shop around to find what fits your needs. Cardboard can be recycled, but plastic offers a better defense against moisture and pests.

 

(c) 2009, D. Reese, The Kansas City Star.

That sea change in consumer behavior grew out of the worst economic recession since World War II, a prolonged downturn that ravaged savings and retirement accounts.

Granted, there are signs of improvement from a year ago. Some indications:
-Retail sales rose 1.3% in November 2009, prompting some to suggest consumers were ready to spend in earnest this holiday season.
-Americans’ net worth—the value of assets such as homes, bank accounts and investments, minus debts such as mortgages and credit cards—rose 5% last quarter to $53.4 trillion. It was the second straight quarterly increase.

But the recovery remains in its early stages. Since the recession began in December 2007, more than 7 million people have lost jobs, ballooning the unemployed to 15.7 million. And despite recent gains in Americans’ net worth, it remains far below its peak of $64.5 trillion before the recession began. That underscores the vast loss of wealth in the last two years.

Paul Goebel, director of the University of North Texas Student Money Management Center, says he thinks 2010 can be “a year of growth and opportunity for everyone” if we don’t forget the not-too-distant past.

Goebel offers the following tips for a financially-healthy 2010.

Examine your goals
What do you want to accomplish with your money besides just making more of it? “Financial issues are, at root, decisions about what is important to us and what is not,” said Thomas Murphy, a certified financial planner at TEMAA Financial in Dallas. “How we choose to spend our money should reflect things which are important and deeply felt, not whims or ego-supporting extravagances.”

Tracking your spending and analyzing your purchases will help you shift your resources to what’s important to you. Knowing where your money is going also will help you break wasteful habits. Murphy suggests documenting every penny you spend for three months. This exercise will create habits that will permanently change your behavior.

Set up a spending plan
“Give yourself an allowance with each paycheck,” said Michael Miller, certified financial planner at Miller Premier Investment Planning LLC. “Put your allowance in an envelope and spend it on discretionary items such as dining out, entertainment and shopping. Once the envelope is empty, you are done until the next paycheck.”

Pay down debt
“Credit cards are great conveniences, but credit card debt is evil,” said Mickey Cargile, a certified financial planner and managing partner at WNB Private Client Services in Midland, Texas. “You will never know personal freedom until you stop deficit spending.”

Get reacquainted with using cash. When you’re counting out dollar bills from your wallet, the price of an item hits home.

If you can’t break the credit card habit on your own, card issuers are leaving you no choice. In advance of new credit card regulations that will take effect in February 2010, issuers are raising interest rates, instituting fees and slashing credit limits. You can’t afford to max out your credit. It will harm your credit score and leave you without credit for emergencies, such as a job loss.

Boost your savings
“The lesson for 2009 is that the things that your mom told you turned out to be true,” Murphy said. “Spend less than you earn and put more money aside for a rainy day because a rainy day will come.”

One convenient way to do that is to set up an automatic savings plan—from your paycheck or your bank account—so you don’t get a chance to spend the money you’d save. “Make sure that you have three to six months’ worth of living expenses set aside in a separate account to take care of life’s unexpected moments,” Miller said. “If you are short, you should create a plan to restock your fund as quickly as possible.”

Have an emergency plan
“Jobs can end at any time,” Cargile said. “Plan for the contingency of losing your job and surviving an extended unemployed period.” Be specific in your emergency plan. “Plan for how you will immediately cut expenses as much as possible,” Cargile said. Cancel subscriptions and cable TV. Eat at home.

Tips for 2010
Here are some tips for developing a strategic plan for your finances in 2010:
-Set specific, realistic financial goals.
-Take control of your finances. Know how much money is coming in, how much is going out and where it is going.
-Create a spending plan for you and your family.
-Lay out a plan to shore up your savings.
-Manage credit carefully; pay down or pay off your credit card debt.

 

courtesy of (c) 2009, By Pamela Yip, The Dallas Morning News.

According to the National Retail Federation (NRF), more shoppers hit the stores this year than last year, but they spent less per person. “Overall U.S. consumer spending is predicted to drop this year, but if you are a shopper who is used to putting holiday expenses on credit cards, this year–more than ever–may be the time to think twice before charging,” cautioned Andrew Housser, co-founder and co-CEO of Freedom Debt Relief (FDR).

The following are FDR’s top six ways to avoid holiday debt:

1. Budget. Know what you have to spend, and don’t go beyond your means. “This season, retailers are slashing prices. That can help shoppers stick to their budgets,” Housser said. “If you are unsure what to buy, search online for gifts under $20 to get some ideas. More shoppers might also be turning to eBay and other discounters to extend their dollars.”

2. Spend with cash. Cash is a growing trend: Just 28.3% of U.S. shoppers expect to use credit cards this holiday season, down from 31.5% last year, according to a survey released in November 2009 by the NRF and BIGresearch. In contrast, 25% of shoppers will use cash. These trends held true over Thanksgiving weekend, when 26% of shoppers used credit cards, 39% used cash, and the remainder reported using debit cards.

3. Do not buy for yourself. Stick strictly to your gift list. The only exception should be a great buy on an item you have planned to purchase, and for which you have dedicated cash in hand.

4. Resist store cards. Although they might offer introductory 0% interest rates, those rates will expire–and sooner than you expect. Many store cards carry regular interest rates of 20% or more. Additionally, your credit score may take a slight hit from opening a new card.

5. Read the fine print. Review all materials from your credit card issuer. Up to 50% of Americans say their credit card interest rates have increased in the past six months. Many lenders are raising rates before the Credit CARD Act’s reforms take effect in February 2010.

6. If you do use a credit card, choose wisely. Choose one card with the lowest annual interest rate, and only charge what you can afford to pay off when the bill comes. Be sure you will not exceed your credit limit. “Putting purchases on a single card helps you keep track of spending (check balances online or by phone if you are not sure),” Housser explained. “Be sure to check your current credit limits before you begin using credit cards, too. Many card issuers have lowered credit limits in the past year.”

Increasingly, American society focuses on spending as the centerpiece of holiday celebrations. That means many people will go into the red by racking up debt at this time of year. “Debt at the holidays is often just accepted, just as many people accept overindulging in food or drink as part of the celebrations,” Housser said. “But these actions have real repercussions. It is possible to avoid debt and holiday overindulgence by planning ahead- and using a few tricks to eke out extra holiday buying power.”

 

For more information, visit www.freedomdebtrelief.com.

New York and Los Angeles are the top two major U.S. cities travelers plan to visit during the holidays, according to the survey. Since September, these destinations have seen an approximately 100% increase in flights search activity on TripAdvisor. Honolulu and Las Vegas are the cities people wish they were visiting this holiday season. These “dream” destinations saw an approximately 50% increase in flights search since September.

Tightening Santa’s Belt a Bit Less
Sixty-two percent of travelers will be more budget conscious with their travel this December holiday season than last, down from 68% who answered the same one year ago. Among those planning to save, 50% plan to do so by staying at or near home instead of traveling, 20% plan to take a shorter trip than usual, and 15% will drive rather than fly.

Only Relative-ly Joyful
Eighty percent of travelers plan to see relatives over the December holidays, almost identical to 81% last year. Nearly 40% of travelers said they often feel pressure to spend the holidays with their families, and 22% said they often see family for the December holidays out of guilt.

Fifteen percent admitted they were not very excited about seeing their family over the December holidays this year, and 25% of those staying with their relatives over the holidays confessed they’d rather stay somewhere else. Nineteen percent even said they’ve cut a holiday family trip shorter than planned because they were “family-ed” out.

Travelers Confess to Holiday Stress
Nearly 50% of travelers said they often find the holidays stressful. As for the best remedy, 22% responded that taking a trip somewhere is the best holiday stress-reliever. Getting more sleep and avoiding crowds came in second and third, respectively.

A Holly Jolly Houseguest
With family crowded together for the holidays, there’s bound to be a glitch or two. The top faux pas committed by travelers when staying with or hosting family during the December holiday season are:

-Arguing with a family member: 31%
-Accidentally insulting a family member: 17%
-Forgetting to bring a present for someone: 13%

Santa vs. Scrooge
Given that the holidays can be a stressful time for travelers, it may not be surprising that 39% of respondents admit that when traveling for the holidays they identify more with Scrooge (”Bah humbug! Traveling for the holidays is a pain, not to mention expensive”), than the 61% who identify more with Santa (”I love traveling for the holidays!”).

Holiday Headaches
According to travelers, the least enjoyable parts of traveling for the December holidays remain the same as last year: airline delays and cancellations (25%), inclement weather (20%), and price of transportation (14%).

All I Want for Christmas is a GPS
Thirty-eight percent of travelers are hoping to receive a travel-related gift this December holiday season, while only 23% of travelers plan to buy one.

“Whether travelers identify more with Santa or Scrooge when it comes to holiday travel, the majority will be spending time with their families this December,” said Christine Petersen, chief marketing officer for TripAdvisor. “With more people hitting the road, travelers should just try to relax and embrace the spirit of the season when faced with the inevitable stress of holiday travel.”

For more information, visit www.tripadvisor.com.

“It’s funny how these things get in the air, isn’t it?” says Stephen Drucker, editor-in-chief of House Beautiful, which recently showcased black rooms from the home of designer Windsor Smith. “It took us very much by surprise, but we did suddenly start to see a lot of it.”

Explanations range from the economic (dark colors reflect the recession) to the aesthetic, with Apartmenttherapy.com founder Maxwell Gillingham-Ryan saying that people are tired of Scandinavian minimalism and are seeking bolder, darker, more traditional interiors.

And then there’s that brown wall thing. Dark brown walls have enjoyed a niche appeal for about four years, but with that color now going mainstream, designers are on the prowl for a new dark and daring option. Or, as Gillingham-Ryan puts it, “Black is the new brown.”

Drucker recently answered our pressing questions about black walls, chief among them: Should we ever, ever attempt this at home?

Q: Black walls? Are you sure this is a good idea for grown-ups?
A: Excuse me, what about the little black dress? What color is more associated with being chic and sophisticated and modern than black?

Q: Who should consider black walls?
A: Someone who sees them and falls in love with them. Black is not for the faint of heart. But it’s more versatile than you might think it is. It could be really great in any kind of library or game room or man-cave kind of situation. Let’s say you had a bathroom with a lot of white tile, or maybe a little black-and-white tile, and only a little wall space. It could be really beautiful there.

Q: Can you use black in small spaces?
A: Sure, dark colors are the best colors to use in small spaces. Dark colors make the corners disappear. Use dark colors in a small room and you’ll never think of it as small again. While this is totally counterintuitive, when you paint a small room a dark color, the corners disappear. You lose all sense of how big it is.

Q: What’s the safest way to try black?
A: If you’re not a professional designer, the safest thing is in a room with a lot of white trim. If you use pale blue upholstery or, depending on your taste, pink or stripes, it could be really chic.

Black basics
-If your walls aren’t smooth, be prepared to patch and sand, or just avoid glossy black, says Maxwell Gillingham-Ryan of apartmenttherapy.com. A matte or satin finish will hide imperfections.
-Keep it crisp with clean, white trim. And make sure those whites are spotless.
-To get the richness that you want from black walls, use a really good dark-tone primer or be prepared to use several coats of paint.
-Want the style without the full commitment? Consider painting a hallway black, says Gillingham-Ryan.
-Add a little something shiny to the room to bounce light around and give a nod to fashion. Imagine silver or brass buttons on a tailored black jacket. Metal accents or even a mirror will work.

(c) 2009, By Nara Schoenberg, Chicago Tribune.

“Year after year, friends and families get together to observe Thanksgiving and follow their annual traditions,” said Conal Byrne, Editor-in-Chief, HowStuffWorks.com. “Few people understand why they are giving thanks, eating turkey or making cranberry sauce; they assume it is their family’s tradition. The truth is that Thanksgiving traditions have been influenced by many different cultures over the centuries.”

This fall, HowStuffWorks.com, an award-winning, credible online resource that provides easy-to-understand information and explanation for thousands of topics, offers curious Thanksgiving guests something else to be thankful for: a cornucopia of little-known facts from an article titled, “How Thanksgiving Works,” which might make this year’s celebration even more meaningful.

The Pilgrims and Indians were not the first to celebrate “Thanksgiving.” Every autumn, the ancient Greeks enjoyed a three-day festival to honor Demeter, the goddess of corn and grains. The Romans had a similar celebration in which they honored Ceres, the goddess of corn.

You thought Grandma’s cornucopia was ancient. The cornucopia actually dates back to the ancient Greeks and Romans. In Greek mythology, the cornucopia is an enchanted severed goat’s horn, created by Zeus to produce a never-ending supply of whatever the owner desires.

Thanksgiving Day parades began as a marketing technique. The tradition of Thanksgiving parades goes back to the early 20th century, when people began to associate Thanksgiving with the beginning of the Christmas shopping season. In order to attract customers, stores like Macy’s sponsored elaborate parades like the Macy’s Thanksgiving Day Parade.

Turkey pardons date as far back as the 1800s. The tradition is thought to be connected to Abraham Lincoln sparing a turkey named “Jack” from becoming the main dish in a holiday meal.

There’s a reason we eat turkey. The connection between turkey and Thanksgiving goes back to the prevalence of wild turkey in the New World. At the time of the first Thanksgiving, Plymouth Colony Governor William Bradford commented on “the great store of wild turkeys.”

Corn and cranberries date back to the first Thanksgiving. Before you accuse the cook of going overboard with side dishes, consider this: after turkey, the most significant dish on the table is corn. This abundant crop was an important staple to the Pilgrims. Cranberries were also probably on the first Thanksgiving table. The American Indians taught the Pilgrims to make a cranberry sauce called “ibimi,” which means “bitter berry.” When the colonists saw the berry, they renamed it “crane-berry,” because its flowers resembled the long-necked bird called the crane.

Football is a Thanksgiving tradition too… kind of. In ancient harvest festivals, people usually celebrated with games and sports, so you could argue the football tradition has very deep roots.

For more information, visit www.HowStuffWorks.com.

“We’re going to see far more interest in the fourth quarter than we generally do because of the tax credit,” said Heather Fernandez, vice president of Trulia.com, a real estate search engine. Traffic surged on the site on Nov. 5, the day Congress approved the credit extension, she said.

The new law extends the tax credit for first-time home buyers and opens it up to some existing homeowners as well: The credit is now 10% of the home price, up to $8,000 for first-time buyers and up to $6,500 for repeat buyers. All buyers must have a binding contract on a house in place on or before April 30, 2010. The sale must close on or before June 30. 2010.

To be considered a first-time home buyer, an individual must not have owned a home in the past three years. And to be eligible, existing homeowners need to have lived in the same principal residence for five consecutive years during the eight-year period that ends when the new home is purchased. The credit is only for principal residences.

Income limits have risen as well. According to the IRS, the home buyer tax credit now phases out for individuals with modified adjusted gross incomes between $125,000 and $145,000, and between $225,000 and $245,000 for people filing joint returns.

The inclusion of move-up buyers might inspire homeowners to take action and list their house if they’ve been putting it off, said Carolyn Warren, a Seattle, Wash.-based mortgage broker and banker and author of the book Homebuyers Beware. “If somebody loves their home, it’s not going to entice them to sell. If they’ve had it on the back of their minds and really would like to move up, it might push them into doing it sooner than later,” Warren said.

The credit isn’t expected to have as large of an effect on move-up buyers as it has on first-time buyers, according to the Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions. The maximum tax credit is about 4% of the average purchase price for first-time buyers, but about 2% of the average purchase price for move-up buyers.

“We estimate that the first-time home buyer tax credit will result in a 10% increase in home sales from March through November of 2009,” said Thomas Popik, research director for Campbell Surveys, in a news release. “We’d expect the effect of the proposed tax credit for current homeowners to be about half as large—from December until the tax credit expiration in the spring of next year, it might be 5% of 3 million transactions, or about 150,000 incremental home sales. Incremental sales to first-time home buyers could be an additional 300,000, for a total of 450,000 incremental sales due to the tax credit extension.”

Tips for buyers
Interested in buying a home and claiming the home-buyer tax credit? Below are five tips:

1. Don’t procrastinate. Start searching for a home now. Getting an early start will give you a better chance of finding the right house before the credit deadline. Before you start house hunting, get preapproved for a mortgage, said Eddie Fadel, a Miami-based mortgage banker, and do a realistic assessment of what you can afford. Buyers who have to sell an existing home should price it aggressively from the beginning to drum up interest and get a buyer as soon as possible.

2. Don’t count on another extension. The credit won’t be available forever, Fadel said. If you want to take advantage, be sure to make that spring deadline.

“This is a medication for the housing crisis. Once the patient—which is the housing market—cures, there will be no medication needed,” he said.

3. Mind the interest rates. Mortgage interest rates are low right now, but will likely rise next year. Higher rates will affect your monthly mortgage payments, thus the affordability of the house you are buying. Average rates on the 30-year fixed-rate mortgage have been hovering around 5%, but when the government stops buying large amounts of mortgage-backed securities, rates could rise.

4. Communicate with your lender. Throughout the process, make sure you’re communicating with your lender regularly; if there’s a piece of documentation you’re asked for, get it turned in as soon as possible, said Doug Heddings, a New York-based real estate agent with Charles Rutenberg Realty. Good communication is important in making sure the loan closes on time. And think twice before pursuing a short sale if you want to make the credit deadline. That’s where someone sells a home for less than what he or she owes on a mortgage, with permission of the lender. The process can be lengthy and unpredictable because the homeowner’s lender has to approve any deal, and can be complicated when there is a second mortgage associated with the property.

5. Don’t take shortcuts. Don’t forgo any of the steps you would normally take just to make the tax credit deadline. Make sure the house is a good fit for your needs and get a home inspection. Skipping steps could cost you in the long run.

(c) 2009, Amy Hoak, MarketWatch.com Inc.

-Prepare you vehicle for long distance travel: Check your wipers and fluids. Have your radiator and cooling system serviced. Simple maintenance before you leave your home can prevent many of the problems that strand motorists on the side of the road.

-Plan ahead: Before you get on a highway, know your exit by name and number, and watch the signs as you near the off-ramp. Drivers making unexpected lane changes to exit often cause accidents.

-Do not cut in front of large trucks: Remember that trucks are heavier and take longer to make a complete stop, so avoid cutting quickly in front of them.

-Check your emergency kit: Contents should include: battery powered radio, flashlight, blanket, jumper cables, fire extinguisher, first aid kit, bottled water, non-perishable foods, maps, tire repair kit and flares.

-Be aware of changes in weather: Weather conditions across the U.S. will be changing – especially during early mornings and evenings with the cold. Watch for ice, snow and other weather-related obstacles.

-Keep your eyes on the road: Distracted driving is a major cause of traffic accidents. Even just two seconds of distraction time doubles the chances of an accident. Use your cell phone when stopped and never text while driving.

-Leave early and avoid risks: Leave early so you won’t be anxious about arriving late and to accommodate for any delays. Road conditions may change due to inclement weather or traffic congestion.

-Be aware of truck blindspots: When sharing the road with large trucks, be aware of their blind spots. If you can’t see the truck driver in his or her mirrors, then the truck driver can’t see you.

-Slow Down: With the extra highway congestion due to holiday travel, speeding becomes even more dangerous. Allow plenty of space between you and the cars around you and reduce your speed.

-Buckle up: Safety belts reduce the risk of fatal injury by 45% and are a simple way to increase your safety on the road.

“Thanksgiving is the busiest travel day of the year,” said America’s Road Team Captain Kurt Pedersen. “With so many motorists on the road, it’s important to use caution and patience while driving. Following these rules for the road will ensure that we all arrive safely to our loved ones.”

 

For more information, visit www.truckline.com.

Example 1:
Jane purchased a home in 2002, lived there for 5 years as her primary home, moved out in 2007, and turned that home into a rental property. If Jane decides to buy a new primary residence today, she would qualify for the $6,500 tax credit based on the fact that she lived in the same residence as her primary home for at least five consecutive years out of the past eight.

Example 2:
Harry purchased a home in 2004, and lived there for the past 5 years as his primary home. If Harry decides to buy a new primary residence today, he would qualify for the $6,500 tax credit based on the fact that he lived in the same residence as his primary home for at least five consecutive years out of the past eight.

Example 3:
Nicole purchased a home in 2006, and lived there for the past 3 years as her primary home. If Nicole decides to buy a new primary residence today, she would not qualify for the $6,500 tax credit based on the fact that she did not live in the same residence as her primary home for at least five consecutive years out of the past eight. 

The tax credit applies to homes purchased for less than $800,000 before May 1, 2010. “If you sign a binding contract to purchase a home before May 1st, you would need to close on the transaction before July 1, 2010,” Nicholas said. “It works kind of like a gift certificate that can be redeemed for cash. You simply file a form with the IRS right after you buy your home, and the IRS will send you a check for the full amount of your credit.” 

The income limitation for single tax payers went up from $75,000 under the old rules to $125,000 under the new rules. For married tax payers, the income limitation went up from $150,000 to $225,000. “This means that more people will qualify for the credit – especially in parts of the country with higher costs of living,” Nicholas said. “This should help stimulate parts of the housing market that may not have been impacted by the old version of the credit.” 

There are many creative ways of structuring your home purchase transaction in ways that maximize the benefits of the credit. Here are a few examples: 

-The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence – you could live in one unit and rent out the others

-If two unmarried individuals buy a home, and only one of the individuals qualifies for the credit based on their income or past home ownership status, the individual who qualifies for the credit can claim the full credit. (Note: In the case of married couples, both spouses must qualify for the credit).

-The credit applies even if you have co-signers on your mortgage loan 

For more information, visit www.CMPSInstitute.org.