No Tax for Donating Leave to Ukraine Victims

Russia’s invasion of Ukraine has triggered a worldwide outpouring of support for victims of the war. And aide to those suffering is not just coming from other nations. Ordinary citizens from around the world are helping, too. They’re showing up in neighboring countries to help refugees, sending care packages, donating to relief organizations, giving blood, and more.

In the U.S., some companies are facilitating this effort by setting up leave-based donation programs. Under these programs, workers can give up their vacation, sick, or personal leave in exchange for having their employer make a cash donation to a charitable organization tied to Ukrainian relief efforts. However, one of the questions workers may have about participating a leave-based donation program is whether their donation will be treated as taxable income on their W-2 form.

Fortunately, the IRS has cleared up this concern for leave-based programs set up to help victims of the war in Ukraine. According to the tax agency, payments made by an employer under such a leave-based donation program before January 1, 2023, won’t be treated as gross income, wages, or compensation of their workers. As a result, employees who elect to forgo leave under a leave-based donation program to help Ukrainian war victims won’t be treated as having constructively received gross income, wages, or compensation. That also means an employer shouldn’t include the payments it makes to a charity under the program in Box 1, 3, or 5 of its electing employees’ W-2 forms.

However, to prevent “double dipping,” workers who participate in a leave-based donation program can’t claim a charitable contribution deduction on their 2022 tax return for the value of their forgone leave. On the other hand, the employer may be able to deduct its payments to charity if it otherwise meets the requirements for a charitable deduction.

Source: kiplinger.com

Understanding the Parent Plus Loan Forgiveness Program

Parent PLUS loan forgiveness provides financial relief to parents who borrowed money to cover the cost of their children’s college or career school. It isn’t always a quick fix, but there are certain federal and private programs that might offer the financial assistance needed to help them get on track.

To receive federal relief for Parent PLUS loans, parent borrowers have a few options.

They can consolidate the loan in order to enroll in an Income-Contingent Repayment plan after 25 years, pursue Public Service Loan Forgiveness after 10 years, or choose from a number of private student loan assistance programs or refinancing options.

Keep reading to learn more about what the available student loan forgiveness possibilities are for Parent PLUS loans.

Will Parent Plus Loans Be Included in Student Loan Forgiveness?

Parent PLUS loans are eligible for several of the same student loan forgiveness programs as federal student loans for students, including:

•   Borrower Defense Loan Discharge

•   Total and Permanent Disability (TPD) Discharge

•   Public Service Loan Forgiveness (PSLF)

That said, Parent PLUS loans generally have fewer repayment options in the first place and the eligibility requirements for these forgiveness programs can be strict and may require borrowers to consolidate their PLUS loan, such as with PSLF. This can make it tricky for borrowers to navigate how to use these federal relief programs to their advantage.

Refinancing is another option for Parent PLUS loan borrowers — applying for a new private student loan with an, ideally, lower interest rate. That said, some lenders offer less flexibility for repayment and the fine print can be lengthy, so there’s an inherent risk associated with refinancing Parent PLUS loans. It’s also worth noting that refinancing a PLUS loan will eliminate it from any federal repayment plans or forgiveness options.

Recommended: What Is a Parent PLUS Loan?

Parent Student Loan Forgiveness Program

When it comes to student loan forgiveness, the programs aren’t just available for the students. Parents who are on the hook for student loan debt can also qualify for student loan forgiveness.

As previously mentioned, a Parent PLUS loan may be eligible for Parent Student Loan Forgiveness through two specific federal programs:

•   Income-Contingent Repayment

•   The Public Service Loan Forgiveness (PSLF) Program

There are also a few private student loan forgiveness options, which we’ll get into below.

Income-Contingent Repayment (ICR)

An Income-Contingent Repayment plan, or ICR plan, is the only income-driven repayment plan that’s available for Parent PLUS borrowers. In order to qualify, parent borrowers must first consolidate their loans into a Direct Consolidation Loan, then repay that loan under the ICR plan.

•   A Parent PLUS loan that’s included in a Direct Consolidation Loan could be eligible for Income-Contingent Repayment, but only if the borrower entered their repayment period on or after July 1, 2006.

•   A Parent PLUS loan that’s included in the Federal Direct Loan Program or the Federal Family Education Loan Program (FFELP) is also eligible for ICR if it’s included in the Federal Direct Consolidation Loan.

ICR determines a borrower’s monthly payment based on 20% of their discretionary income or the amount by which their AGI exceeds 100% of the poverty line. After a 25-year repayment term, or 300 payments, the remaining loan balance will be forgiven.

Typically, the IRS considers canceled debt a form of taxable income, but the American Rescue Plan Act of 2021 made all student loan forgiveness tax-free through 2025.

Public Service Loan Forgiveness (PSLF)

Borrowers with Parent PLUS loans may be eligible for Public Service Loan Forgiveness Program, but in order to pursue that option must first consolidate the Parent PLUS loan into a Direct Consolidation Loan.

Then, after they’ve made 120 qualifying payments (ten year’s worth), borrowers become eligible for the Public Service Loan Forgiveness Program (PSLF). The parent borrower (not the student) must be employed full-time in a qualifying public service job. PSLF also has strict requirements such as certifying employment so it’s important to follow instructions closely if pursuing this option.

The Temporary Expanded Public Service Loan Forgiveness (TEPSLF) is another option for Parent PLUS borrowers if some or all of their 120 qualifying payments were made under either a graduated repayment plan or an extended repayment plan. The catch here is that the last year of their payments must have been at least as much as they would if they had paid under an ICR plan.

Refinance Parent Plus Loans

Refinancing a Parent PLUS loan is another option that could provide some financial relief.

For borrowers who don’t qualify for any of the loan forgiveness options above, it may be possible to lower their monthly payments by refinancing Parent PLUS student loans with a private lender.

In doing so, you’ll lose the government benefits associated with your federal loans, as briefly mentioned above, such as:

•   Student loan forgiveness

•   Forbearance options or options to defer your student loans

•   Choice of repayment options

Refinancing a Parent PLUS loan into the dependent’s name is another option, which some borrowers opt for once their child has graduated and started working. Not all loan servicers are willing to offer this type of refinancing option, though.

Transfer Parent Plus Student Loan to Student

Transferring Parent PLUS loans to a student can be complicated. There isn’t a federal loan program available that will conduct this exchange, and, as mentioned above, some private lenders won’t offer this option.

That said, some private lenders, like SoFi, allow dependents to take out a refinanced student loan and use it to pay off the PLUS loan of their parent.

Alternatives to Student Loan Forgiveness Parent Plus

When it comes to Parent PLUS loans, there are a few ways to get out of student loan debt legally, including the scenarios outlined below.

Student Loan Forgiveness Death of Parent

Federal student loans qualify for loan discharge when the borrower passes away. In the case of Parent PLUS loans, they are also discharged if the student who received the borrowed funds passes away.

In order to qualify for federal loan discharge due to death, borrowers must provide a copy of a death certificate to either the U.S. Department of Education or the loan servicer.

Recommended: Can Student Loans Be Discharged?

State Parent PLUS Student Loan Forgiveness Programs

Many individual states offer some sort of student loan repayment assistance or student loan forgiveness programs for Parent PLUS loan borrowers.

For an overview of options available in different states, you can take a look at The College Investor’s State-by-State Guide to Student Loan Forgiveness . For information on student loan and aid available take a look at the SoFi guide on state-by-state student aid available for borrowers.

Disability

In the event of the borrower becoming totally and permanently disabled, a Parent PLUS loan may be discharged. To qualify for a Total and Permanent Disability (TPD) discharge , borrowers must complete and submit a TPD discharge application, as well as documentation showing that they meet the requirements for being considered totally and permanently disabled. Note that in order to qualify for TPD, the parent borrower must be considered disabled. This type of forgiveness does not apply to Parent PLUS loans in the event that the student becomes disabled.

Bankruptcy

If a borrower can demonstrate undue financial hardship upon repaying the student loan, they might be able to discharge their Parent PLUS loan. Note having student loans discharged in bankruptcy is extremely rare. Proving “undue hardship” varies depending on the court that’s granting it, but most rulings abide by the Brunner test, which requires the debtor to meet all three of these criteria in order to discharge the student loan:

•   Poverty – Maintaining a minimal standard of living for the borrower and their dependents is deemed impossible if they’re forced to repay their student loans.

•   Persistence – The borrower’s current financial situation will likely continue for the majority of the repayment period.

•   Good faith – The borrower has made a “good faith” effort to repay their student loans.

Closed School Discharge

For parent borrowers whose children attended a school that closed while they were enrolled or who withdrew from the school during a “lookback period” of 120 days before its closure, a Closed School Discharge is another available form of student loan forgiveness.

In some circumstances, the government may extend the lookback period even further. For example, The Department of Education has changed the lookback period to 180 days for loans that were issued after July 1, 2020.

Borrower Defense

Borrower Defense Loan Discharge is available to Parent PLUS borrowers whose children were misled by their college or university or whose college or university engaged in certain forms of misconduct or violation of state laws.

To make a case for borrower defense, the Parent PLUS borrower must be able to demonstrate that their school violated a state law directly related to their federal student loan.

Explore Private Student Loan Options for Parents

Banks, credit unions, state loan agencies and other lenders typically offer private student loans for parents who want to help their children pay for college and refinancing options for parents and students.

Refinancing options will vary by lenders and some may be willing to refinance a Parent PLUS loan into a private refinanced loan in the student’s name. In addition to competitive interest rates and member benefits, SoFi does allow students to take over their parent’s loan during the refinancing process. Interest rates and terms may vary based on individual criteria such as income, credit score, and history.

If you decide refinancing a Parent PLUS loan makes sense for you, SoFi makes it simple. The application process is entirely online and SoFi offers flexible repayment options to help you land a loan that fits your budget. You can find your rate in a few minutes and checking if you prequalify won’t affect your credit score.*

The Takeaway

Parent PLUS Loan forgiveness offers financial relief to parents who borrowed money to help their child pay for college.

To receive federal relief for Parent PLUS loans, parent borrowers can enroll in an Income-Contingent Repayment plan, pursue Public Service Loan Forgiveness, transfer their student loan to another student, take advantage of a state Parent PLUS student loan forgiveness program, or opt for private student loan assistance or refinancing.

Learn more about refinancing a Parent PLUS loan with SoFi.


*Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. A hard credit pull, which may impact your credit score, is required if you apply for a SoFi product after being pre-qualified.
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Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Source: sofi.com

New Mexico Wildfire and Wind Victims Get More Time to Pay Taxes

The IRS has granted victims of the recent New Mexico wildfires and straight-line winds more time to file various individual and business tax returns and make tax payments. Specifically, victims of the fires and winds that began on April 5, 2022, have until August 31, 2022, to file and pay tax returns and payments due between April 5 and August 30.

The tax relief is available to anyone in any area designated by the Federal Emergency Management Agency (FEMA) as qualifying for individual assistance. At this point, only affected taxpayers who live or have a business in Colfax, Lincoln, Mora, San Miguel and Valencia Counties qualify for the extensions, but the IRS will offer the same relief to any taxpayers in other New Mexico localities designated by FEMA later.

The IRS will also work with other people who live outside the disaster area but whose tax records are in the disaster area. Call the IRS at 866-562-5227 if you face this situation. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.

Deadlines Extended

The deadlines that are pushed back include the April 18, 2022, due date for filing a 2021 personal income tax return and paying 2021 taxes. In addition, wildfire and wind victims in the designated area have until August 31 to make 2021 IRA contributions. They also get more time to make the estimated tax payments due on April 18 and June 15, 2022.

The due date for quarterly payroll and excise tax returns normally due on May 2 and August 1, 2022, are extended to August 31 for New Mexico wildfire and wind victims, too. Penalties on payroll and excise tax deposits due from April 5 to August 30 will also be waived as long as the deposits are made by August 31, 2022.

Taxpayers don’t need to contact the IRS to get this relief. However, if an affected person receives a late filing or late payment penalty notice from the IRS, he or she should call the number on the notice to have the penalty abated.

Deduction for Damaged or Lost Property

Victims of the New Mexico wildfires and straight-line winds may be able to claim a tax deduction for unreimbursed damaged or lost property. To do so, they typically must itemize and file Schedule A with their tax return. However, victims who claim the standard deduction may still be able to deduct their losses if they can claim them as business losses on Schedule C.

The deduction can be claimed on the tax return for the year the damage or loss of property occurred or for the previous year. So, for any destruction in 2022, the deduction can be claimed on either a 2021 tax year return or a 2022 return. In either case, you must write the FEMA declaration number on the return claiming the deduction. For the recent New Mexico wildfires and straight-line winds, the number is DR-4652-NM.

If you decide to claim a deduction for 2021, you can amend your 2021 return by filing Form 1040X. For this purpose, you must file the amended return no later than six months after the due date for filing your return (without extensions) for the year in which the loss took place. So, for New Mexico wildfire or wind losses in 2022, you would need to file an amended 2021 return by October 16, 2023. Affected taxpayers claiming the disaster loss on a 2021 return should also put the Disaster Designation (“New Mexico Wildfires and Straight-Line Winds”) in bold letters at the top of the form. See IRS Publication 547 for details.

Source: kiplinger.com

Cómo crear un presupuesto de emergencia para hacer frente al COVID-19

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El COVID-19 ha producido un gran impacto en la vida de muchas personas y en las economías de todo el mundo. Debido a las empresas que pasaron a trabajar de forma remota, a los restaurantes que cerraron sus puertas y a la caída de la bolsa de valores, se frenó gran parte de la economía estadounidense y esto ha afectado a millones de ciudadanos del país. Desde que el brote de coronavirus llegó a los Estados Unidos, más de 10 millones de estadounidenses han solicitado beneficios por desempleo con la esperanza de recuperar el ingreso recientemente perdido.

Si, al igual que muchos estadounidenses, estás haciendo frente a la crisis ocasionada por el COVID-19, es probable que te preocupe tu situación financiera. Independientemente de que la pandemia haya afectado o no tu salario o estilo de vida, es importante mantener la estabilidad financiera durante estos tiempos de tanta incertidumbre. La mejor forma de evitar una emergencia financiera es preparar un presupuesto para tal fin que funcione para ti y para tu hogar.

Proteger tus finanzas en medio de una pandemia mundial puede parecer una hazaña imposible, pero con el presupuesto correcto, puedes prepararte adecuadamente para los gastos imprevistos que puedan surgir. Si usas esta guía, te ayudaremos con el proceso de crear un presupuesto de emergencia y lograr la tranquilidad que mereces durante estos tiempos sin precedentes.

¿Qué es un presupuesto de emergencia?

En esencia, un presupuesto de emergencia prioriza la supervivencia por encima de todo lo demás. Si bien es similar a tu presupuesto semanal o mensual promedio, un presupuesto de emergencia elimina todos los gastos innecesarios y solo cubre tus necesidades y responsabilidades financieras básicas.

Si se usa de forma efectiva, un presupuesto de emergencia puede proporcionar un margen financiero adicional que te permita depositar más dinero en un fondo de emergencia o, simplemente, que el dinero te dure más. En la medida que el COVID-19 ejerce presión en su bienestar financiero, muchos estadounidenses enfrentan una realidad que los obliga a reducir los costos y volver a priorizar los gastos.

Debido a la naturaleza impredecible del coronavirus, esperar lo inesperado debe ser una pieza fundamental del rompecabezas que supone planificar tu presupuesto. Por último, tu presupuesto de emergencia debe contemplar los costos necesarios para llegar a fin de mes y todos los ingresos sobrantes deberían ir a un fondo de emergencia.

Cómo crear un presupuesto de emergencia: guía paso a paso

Crear un presupuesto de emergencia es muy similar a crear tu presupuesto mensual habitual; sin embargo, en lugar de asignar fondos a gastos tales como cuotas de gimnasio o cenas en restaurantes, debes enfocarte más en cómo cubrir las necesidades básicas y dedicar el resto a asegurar tu estabilidad futura.

Toma una calculadora y ten a la mano tus presupuestos pasados para ver paso a paso cómo crear un presupuesto de emergencia.

Paso 1:  Evaluar tu presupuesto actual

Para crear un presupuesto de emergencia exitoso, primero debes entender el estado de tus finanzas antes de la pandemia. Tu presupuesto actual revelará todo lo que debes saber acerca de tus gastos actuales y adónde va tu dinero.

Haz una lista de todos tus gastos mensuales, que incluya los gastos periódicos y los variables así como las necesidades y los deseos. Para tener una imagen más clara de estos cargos, tal vez te ayude revisar tus transacciones en Mint o en tus estados de cuenta bancarios o de tu tarjeta de crédito. Suma el total de estos gastos para calcular tus gastos mensuales.

Ahora comparemos tus gastos mensuales con tu ingreso actual. Esto es fundamental si has perdido tu empleo recientemente o te han reducido el salario. Esta comparación te brindará información precisa sobre cómo tendrás que modificar tus gastos para cubrir las necesidades básicas y asignar el ingreso residual a gastos futuros o a un fondo de emergencia.

Paso 2: Dividir tus gastos

Una vez que hayas hecho una lista completa de tus gastos mensuales, divídelos en dos categorías: gastos necesarios e innecesarios. Dado que lo esencial en cuanto al estilo de vida varía según cada persona, eres tú quien debe distinguir entre tus necesidades y tus deseos. Ten en cuenta que, a cuantos más deseos puedas renunciar, más dinero tendrás para cubrir necesidades más adelante.

Para ayudarte a empezar, usa estas listas de necesidades comunes y gastos innecesarios:

Necesidades: también conocidas como gastos fijos. Incluyen todo lo que garantice que cubras tus necesidades básicas. Estos son algunos ejemplos:

  • Alimento
  • Transporte
  • Seguro
  • Alquiler o hipoteca
  • Cuidado de niños
  • Servicios públicos
  • Pago de préstamos
  • Servicio básico de telefonía e Internet

Gastos innecesarios: abarcan los costos de cosas que en realidad no necesitas y deberían ser los primeros en eliminarse o volver a evaluarse a la hora de crear tu presupuesto de emergencia. Estos son algunos ejemplos:

  • Suscripciones a servicios de entretenimiento (streaming, videojuegos, etc.)
  • Comidas en restaurantes
  • Compras
  • Pasatiempos
  • Cuota del gimnasio

Paso 3: Ajustar tu presupuesto

Si entiendes visualmente cómo se dividen tus finanzas entre necesidades y deseos, puedes tomar decisiones más inteligentes y calcular mejor tu presupuesto de emergencia. Independientemente de que estés atravesando o no dificultades financieras, es importante hacer los ajustes de presupuesto necesarios para evitar números negativos si surge una emergencia médica o se produce un cambio radical en tu vida.

Reconstruir tu presupuesto significa determinar cuáles gastos mantener o recortar y encontrar formas de reducir los gastos fijos periódicos. Vamos a analizar esto.

Decidir cuáles gastos mantener o recortar

Determinar cuáles gastos mantendrás y cuáles eliminarás queda a tu entera discreción; sin embargo, debes tener en cuenta que, cuantos más gastos innecesarios puedas recortar, mejor.

Esto puede significar cancelar tus suscripciones a servicios de streaming y la cuota de las clases de yoga a fin de tener más dinero en tu presupuesto del mes próximo para comprar artículos de almacén.

Buena parte del país tiene instrucciones de quedarse en casa, por lo cual eliminar los costos de cenar en restaurantes, las cuotas del gimnasio y los gastos de salidas nocturnas debería ser relativamente sencillo, dado que estos establecimientos ya no están abiertos al público. En virtud de este cambio, haz tu mayor esfuerzo para convertir una situación limitativa en una de crecimiento. Desempolva un viejo juego de mesa para reemplazar tus métodos de entretenimiento más costosos o prueba una nueva receta para saciar tus ganas de tener una cena fina.

La gran mayoría de nuestras necesidades probablemente estarán incluidas en tu presupuesto de emergencia ajustado y, de aquí en adelante, siempre deberían ser los gastos prioritarios de cada mes.

Reducir los gastos fijos

Una vez que hayas eliminado todos los gastos innecesarios, puedes definir mejor los detalles de tu presupuesto de emergencia. Repasa tu lista de gastos esenciales y fíjate cuáles se pueden reducir. Te asombrarás al descubrir cómo se pueden reducir muchos costos fijos para ajustarse mejor a este momento de dificultad financiera.

Aunque la mayoría no lo sabe, las empresas de servicios públicos, las compañías de cable y los proveedores de telefonía móvil estarán dispuestos a trabajar contigo para encontrar un plan más económico que les garantice que continúes siendo un cliente fiel. Negociar tus facturas de proveedores requiere de un poco de conocimiento y persistencia, pero tal vez descubras que puedes ahorrar $10 o $100 en una factura periódica con una simple llamada telefónica.

Paso 4: Explorar los beneficios disponibles

A luz de que la situación del coronavirus ha afectado a los estadounidenses, el Gobierno federal ha ampliado la ayuda que ofrece a aquellos que están en una situación más vulnerable. Desde paquetes de incentivo hasta la ampliación de los beneficios de desempleo, hay muchas medidas de asistencia disponibles y en progreso para las que puedes ser elegible.

El Servicio de Impuestos Internos de los Estados Unidos confirmó que, a partir del 30 de marzo de 2020, los contribuyentes con un ingreso bruto ajustado de $75,000 o menos son elegibles para recibir el pago de impacto económico otorgado por el Gobierno, que es de $1,200 y se paga por única vez. Las parejas casadas con un AGI de $150,000 o menos serán elegibles para recibir un cheque por $2,400 y hasta $500 más por cada hijo que califique. Siempre que hayas presentado una declaración de impuestos de 2019 o 2018, el IRS (Servicio de Impuestos Internos) calculará y enviará el pago a las personas elegibles mediante un depósito directo o un cheque por correo postal.

Los programas de ayuda por desempleo federales y estatales trabajan de forma conjunta para proporcionar asistencia financiera a aquellos que hayan perdido sus empleos sin justa causa. La  Ley de Ayuda, Alivio y Seguridad Económica en Respuesta al Coronavirus (CARES, por sus siglas en inglés), que se promulgó el 27 de marzo de 2020, otorga de forma activa beneficios de desempleo a trabajadores temporales o por proyecto, trabajadores independientes y empleados con licencias no pagadas.

El Programa de Compensación de Desempleo de Emergencia por la Pandemia (PEUC, por sus siglas en inglés) permite a los trabajadores que hayan agotado sus beneficios de compensación por desempleo recibirlos durante 13 semanas más. Este programa también otorga beneficios a trabajadores por proyecto o temporales, trabajadores freelance y contratistas independientes.

Según cuál sea tu situación en particular, es posible que seas elegible para varios programas de asistencia del Gobierno, que pueden ampliar los límites de planificación de tu presupuesto de emergencia.

Paso 5: Volver a evaluar tus objetivos financieros

Ante la posibilidad de una emergencia financiera, el objetivo más importante debe ser pagar tus facturas más esenciales. Para la mayoría, esto probablemente signifique tener que pausar cualquier otra meta para el futuro cercano y que la máxima prioridad sea llegar a fin de mes hasta que se restablezca el flujo de ingresos normal.

Los expertos en finanzas recomiendan tener un fondo de emergencia que permita afrontar los gastos de tres a doce meses a fin de protegerte de cualquier bache y proporcionar una base extra para atravesar tiempos difíciles. Al volver a evaluar tus objetivos financieros durante el COVID-19, céntrate en no alejarte de tu presupuesto de emergencia y en crear un fondo para el mismo fin.

Conclusión

En tiempos de gran incertidumbre, es esencial que mantengas tus finanzas en orden. Aunque no hay una respuesta universal en cuanto a cómo manejar una dificultad financiera, hay varias formas posibles de prepararse para ello. Si usas esta guía sobre presupuestos de emergencia, podrás tomar las medidas preventivas necesarias para asegurar que te mantengas estable y seguro durante la pandemia del COVID-19.

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These 14 Major Employers Offer Part-Time Jobs With Benefits

Think you need to work long hours to qualify for company-backed retirement plans, tuition reimbursements and affordable health insurance?

Actually, you don’t have to have to be a full-time employee to get those perks. There are many companies that offer generous benefit packages for their hourly part-time employees.

These 14 companies lead the way in offering part-time jobs with benefits. You could land a flexible role that also allows you to attend school, take care of family or do whatever you please.

14 Companies That Offer Part-Time Jobs With Benefits

If you’re looking for part-time work, start your job hunt with these employers.

1. Costco

Hourly part-time employees can receive benefits from Costco once they’ve accumulated 450 hours. Healthcare coverage includes medical, vision, prescription drugs and core dental coverage.

All hourly employees working at least 10 hours per week can enroll in voluntary short-term disability insurance, which provides tax-free income replacement in the event of a non-work related accident or illness that prevents work.

2. Lowe’s

Part-time employees at Lowe’s are immediately eligible for medical benefits, including prescription drugs, short-term disability, life insurance and dental and vision coverage..

After one year, Lowe’s offers an employee stock purchase option to its part-time workers, as well as a 401(k) after 180 days. Eligible family members can also opt-in for group medical, dental and vision coverage and dependent life insurance.

3. REI

Part-time employees at REI become eligible for a benefits package if they work an average of 20 hours per week over a 12-month evaluation period.

The company pays the majority of employees’ medical and dental coverage and the full cost for basic life and accidental death and dismemberment (AD&D), employee assistance program, business travel accident insurance and long-term disability insurance.

REI also provides a generous PTO package, a wide variety of leave options, and “Yay Days” twice a year – a program that allows employees to take part in their favorite outdoor activity,  take on something new or participate in a stewardship project.

They also offer a public transit benefit which provides a 50% pre-tax subsidy on public transit expenses up to the current IRS limit through payroll deduction.

4. Staples

Staples offers its part-time associates access to dental and vision coverage, life, dependent life, accidental death and short-term disability insurance coverage. They’re also eligible for the company’s 401(k) plan after one year and 1,000 hours of service.

Stick with the company for a year and average 30 hours per week, and you’ll be eligible to enroll in a full-time medical plan. Staples also offers 10% employee discounts on online or retail items, adoption assistance and its own confidential employee counseling program.

A Starbucks employee holds a drink up while working the drive through counter at Starbucks.
Photo courtesy of Starbucks

5. Starbucks

Starbucks is well-known for its benefits program for part-time employees. All you have to do to be eligible is work at least 240 hours over three consecutive months, then continue to average 20 hours per week.

Health coverage offered by Starbucks includes routine visits, hospitalization and more, along with dental,vision and life insurance coverage. Alternative care options, like acupuncture or chiropractic treatment, are covered too. After 90 days, employees can opt-in to Starbucks’ 401(k) plan.

Other employee benefits include up to a $10,000 reimbursement for adoption expenses, confidential counseling, full tuition reimbursement, and one pound of Starbucks coffee or Teavana tea every week!

6. UPS

Part-time employees who work between 225 and 400 hours at UPS within a three month period are eligible for medical and dental coverage, vision insurance, hearing, prescription drugs and an employee assistance program.

Part-time employees who exceed 400 hours over three months are eligible for the same benefits as full-time employees.

Part-time employees can also take advantage of the Earn and Learn tuition assistance program  that provides up to $5,250 in assistance per calendar year (with a lifetime maximum of $25,000). Eligibility begins on the day of hire.

7. Trader Joe’s

After three months and working an average of 30 hours per week, Trader Joe’s “crew members” are eligible for medical, dental and vision coverage at a cost as low as $25 per month.

The company also offers a matching 401(k) plan and contributes 10% of a crew member’s salary annually to the plan, according to an employee.

Other employee benefits include a 20% store discount, scholarship programs, store tastings, employee assistance programs and paid relocation and transfers.

8. Aerotek

Aerotek is one of the world’s leading staffing agencies. Part-time employees who work a minimum of 20 hours per week are eligible for contributory medical, dental and vision insurance.

The company also offers a 401(k) and 529 plan, a tuition reimbursement after six months, dependent care flex spending accounts, a free counseling service and an employee discount program with Aerotek’s many retail partners.

9. Chipotle

All hourly crew members at Chipotle are eligible for its robust benefits package that includes medical, vision and dental insurance, as well as a 401(k) match after one year of employment.

Part-time employees also receive a salary percentage-based annual bonus, mental health assistance, education assistance up to $5,250 annually, stock purchase plan, gym membership discounts and one free meal per shift. Free burritos on Chipotle!

10. JPMorgan Chase

The global banking institution offers benefits to its part-time employees, after 90 days, who work between 20 and 40 hours per week.

Benefits include medical, dental, vision, life and accident, disability, before-tax flexible spending accounts and group legal services. JPMorgan Chase also offers a 401(k) match starting at 3% annually and increasing by 1% every year up to a maximum of 10%.

Other offered benefits are an employee stock purchase plan, a comprehensive health and wellness program, parental leave, backup child care options and discounts on banking services.

A postal office workers loads a cart around with letters to post office trucks.
Letter carriers load mail trucks for deliveries at a U.S. Postal Service facility in McLean, Va., Friday, July 31, 2020. Scott Applewhite/AP Photo

11. USPS

The United States Postal Service hires career and non-career (temporary/seasonal) workers. Part-time career workers are eligible for its benefits package which includes the Federal Employees Health Benefits (FEHB) program – a plan in which the federal government pays two-thirds of the health insurance premiums for employees and retirees.

They also offer federal group life insurance (FGLI), and federally-backed long-term care, dental and vision and a flex spending account.

The USPS retirement system, also available for part-time career workers, offers a fixed annuity based on years of service, a defined contribution 401(k) THRIFT Savings Plan with a 5% employer match and Social Security.

12. Wal-Mart

Part-time and temporary associates at Wal-Mart who work an average of at least 30 hours per week over a 60-day period are eligible for benefits.

After the initial 60 days, associates must wait another 60 days to enroll. Once you enroll you’re eligible for the remainder of the calendar year as well as the year after. Benefits include medical, dental, vision, AD&D, critical illness insurance and accident insurance, as well as a 6% 401(k) match after one year and a 10% in-store discount.

Wal-Mart also offers Resources for Living – a free counseling service that offers unlimited phone support anytime and up to 10 no-cost counseling sessions or 10 free weeks of no-cost, chat-based therapy.

13. American Red Cross

Employees at this major nonprofit are eligible for part-time health benefits if they work 20 hours per week Those who work 30 or more hours per week are eligible for full-time benefits.

The American Red Cross also offers a 401(k) plan with a match up to 4%.

14. Kaplan

The American educational training company offers eligible part-time employees access to a third-party company that helps enroll in a range of health insurance policies from multiple insurance carriers. Options include a supplemental hospital plan, life insurance, a dental and vision option, disability insurance and a free prescription discount card.

Part-time employees and their families also have access to free or significantly discounted educational courses offered by Kaplan.

Robert Bruce is a senior writer for The Penny Hoarder. Lisa Rowan is a former staff writer.

Source: thepennyhoarder.com

What Is IRS Tax Form 1098 (Mortgage Interest Statement)?

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Additional Resources

In an effort to help make filing taxes easier this year, we are breaking down the various IRS tax forms to help you know if you need them, and how to use them.

There’s nothing like a love letter from your mortgage lender with an IRS tax form to make you swoon with joy.

As tax forms go, the 1098 ranks among the simplest as you prepare your tax return. But there are some things you need to know about Form 1098 and how to use it in your tax return.

What Is IRS Tax Form 1098, Mortgage Interest Statement?

The IRS Form 1098 informs you how much interest you paid on your mortgage loan for the last tax year. 

Mortgage lenders send you this document in case you want to itemize your deductions on your tax return. They also send a copy to the Internal Revenue Service for their records, so don’t get any ideas about taking liberties with your interest deduction. 

Far fewer taxpayers itemize their deductions since the standard deduction jumped in the Tax Cuts and Jobs Act of 2017. That makes Form 1098 less relevant to the average American than it once was, though it does contain information you may need.

However, the form remains relevant to real estate investors, who deduct mortgage interest on Schedule E of their tax return. Mortgage interest is an expense for investment properties and comes off their taxable profit. Deducting it from your investment property profit doesn’t require you to itemize your deductions. 


Who Should File Form 1098?

Property owners don’t file Form 1098 as part of their federal tax return. They simply list the amount of mortgage interest in the appropriate place on their return: Schedule A for homeowners, Schedule E for investment property owners.

Mortgage lenders need to file Form 1098 with the IRS if the borrower paid more than $600 in a given year and send you a copy — which you can frame if you so choose. They typically send the form in February with the total mortgage interest paid in the previous year.


How to File IRS Form 1098

While you don’t need to file Form 1098 as a borrower, it helps to be able to read it. 

The most important information lies in Box 1: the amount of mortgage interest paid in the previous year. However, the form contains other useful information, including:

  • Box 2: Outstanding mortgage principal (your remaining loan balance)
  • Box 3: Mortgage origination date (your loan start date)
  • Box 4: Refund of overpaid interest (if applicable)
  • Box 5: Mortgage insurance premiums (if you paid private mortgage insurance for a conforming loan or mortgage insurance premium for a Federal Housing Administration loan, it appears here)
  • Box 6: Points paid on the purchase of the principal residence (you may be able to deduct these as well)
  • Boxes 7-11: Identifying information about your loan, such as the property address

You’ll also find identifying information about yourself, such as your name and Social Security number.


Other 1098 Forms

While the mortgage interest statement is the most common type of 1098 form, it’s not the only brat in the pack. You may also come across the following 1098 forms.

Form 1098-C, Contributions of Motor Vehicles, Boats

If you donated a vehicle — including boats or airplanes — to a charitable organization last year, you’ll receive a 1098-C from the charity. 

Charities often give these vehicles to individuals in need or sell them at below-market rates and use the profit to fund programs. Alternatively, the charity might auction the car to raise money for their cause.

Form 1098-C confirms you weren’t part of that transaction. However, if you donated a beater worth less than $600, you may not receive one of these forms. Read the instructions for Form 1098-C for more information.

Form 1098-E, Student Loan Interest Statement

You may feel like you’ll be paying off your student loans for the rest of your life, but at least you get a tax break. Maybe. 

Each year, you’ll receive a 1098-E detailing how much interest you paid to each loan servicer if it exceeded $600. You can deduct the interest from your taxable income on your 1040 without itemizing your deductions as long as you meet the income requirement.

You can deduct up to $2,500 in student loan interest for loans used to pay for qualified expenses while you were in school. However, the deduction does phase out if your modified adjusted gross income (MAGI) falls between $70,000 and $85,000 (between $140,000 and $170,000 if married filing a joint return). You cannot take a student loan interest deduction if your MAGI exceeds $85,000 or more ($170,000 or more if you file a joint return). 

If you paid less than $600 in student loan interest last year, the servicer may not send you a 1098-E, but you can still deduct this interest as long as you have a record of how much you paid. If you don’t know, ask your servicer and record it in your tax file.

As a bonus, if your parents or someone else pays student loans in your name for you, the IRS considers the money a gift, and you can still deduct the interest on your own taxes. However, if the loan is in someone else’s name, that person is entitled to take the interest deduction as long as he or she is the one paying on it.

Form 1098-T, Tuition Statement

If you or one of your dependents is currently in school, the school will send an IRS Form 1098-T at the end of the year detailing all fees you paid for qualified tuition and other related expenses. Calculate all education-related tax deductions and credits, such as the tuition and fees deduction, the lifetime learning credit, or the American opportunity tax credit.

The amounts on the form encompass all money you paid to the school, even if you paid in advance — the payment appears on the tax form for the year in which you actually paid it. 

For example, if you pay your spring semester tuition in December of the previous year, it will show up on the prior year’s 1098-T. These amounts include any money used from loans to pay for tuition and education expenses and list financial aid like college scholarships and grants separately.

Some expenses, such as college textbooks and school supplies, are not generally reported on the 1098-T, but you can still claim them for higher education tax credits or deductions so long as they’re classified as qualified expenses by the IRS.


Form 1098 FAQs

If you still have burning questions about 1098 tax forms, these answers to frequently asked questions can help clear them up.

How Do I Get a 1098 Form?

Your mortgage lender sends you a Form 1098, Mortgage Interest Statement. If you haven’t received it by late February, blow off some steam by yelling at your lender. (Just kidding. Be nice. They literally still own part of your house. But thinking about yelling at them should make you feel better.)

Form 1098-C comes from the charity you donated a vehicle to, while Form 1098-E comes from your student loan servicer. Form 1098-T comes from your college or university. 

Do I Need to File Form 1098 With My Tax Return?

No, you don’t. You need only include the information in the appropriate field on your tax return.

When in doubt, ask your accountant or tax advisor. Alternatively, you can use an online tax preparation service, which will ask you for the amount you paid and fill it into the right field for you. 

What Happens if I Don’t File a 1098 Form?

The IRS doesn’t require borrowers to file a 1098 form at all. But if you ignore them, you might miss out on valuable income tax deductions and make an involuntary donation to Uncle Sam. 

If you are a lender, charity, student loan servicer, or university, you are required by law to both send a 1098 form to the payer and file it with the IRS. Failure to do so will result in your immediate execution — no, not really, but the IRS may penalize you, audit you, or otherwise make your life unpleasant. 


Final Word

With a higher standard deduction these days, most Americans don’t have to stress over documenting and itemizing every single deduction anymore. It makes filing your tax return that much simpler.

However, homeowners who itemize their personal deductions do still want to include their mortgage interest among them. And the mortgage interest deduction offers another way for real estate investors to lower their taxes while leveraging other people’s money to build their portfolio of properties. Get tax advice from a qualified tax professional if you have any questions about these tax benefits.

Whether you deduct mortgage interest on your tax return or not, keep your 1098 forms in your tax records for at least three years after filing. You never know when Uncle Sam will pay you a nasty visit with an audit, and every deduction could help if he does. 

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GME is so 2021. Fine art is forever. And its 5-year returns are a heck of a lot better than this week’s meme stock. Invest in something real. Invest with Masterworks.

G. Brian Davis is a real estate investor, personal finance writer, and travel addict mildly obsessed with FIRE. He spends nine months of the year in Abu Dhabi, and splits the rest of the year between his hometown of Baltimore and traveling the world.

Source: moneycrashers.com