Should You Pay Your Taxes With A Credit Card?

MoneyTips

It is hard to beat the convenience of a credit card for purchases, but does that same convenience make it worth paying your taxes by credit card? It might, but that depends on several factors involving money and time. "Your credit card is usually a high-interest option, but it is an option," explains Betterment Head of Tax Eric Bronnenkant.

Before deciding whether to put your tax bill on plastic, consider the following:

• Fees – By law, the IRS cannot pay credit card transaction fees. As a result, credit card payments to the IRS are handled through secure third parties approved by the agency. See the IRS website for a list of the approved payment processors and their fees.
  
  Credit card fees are percentage-based with a minimum "convenience fee" for smaller bills ranging from $2.50 to $2.69. Percentages range from 1.87% to 1.99...

from MoneyTips https://www.moneytips.com/paying-taxes-with-a-credit-card

When Credit Card Debt Is Tax-Deductible

MoneyTips

Wouldn't it be nice if you could deduct your credit card debt from your taxes? For most Americans, that's just a dream that will never come true. However, some circumstances allow you to deduct some credit card debt – all related to using your card for business purposes.

The 2017 Tax Cuts and Jobs Act raised the standard deduction and eliminated or reduced certain itemized deductions as part of a tax simplification effort. It's critical for those who still itemize to take advantage of all possible deductions. Self-employed taxpayers and small business owners who rely heavily on credit cards may be able to save by taking advantage of credit-related deductions.

Credit card debt on personal purchases is not tax-deductible, thanks to the 1986 Tax Reform Act. However, three varieties of business-related credit card debt may be deductible.

Interest on credit ca...

from MoneyTips https://www.moneytips.com/when-credit-card-debt-is-tax-deductible

Why you might want to avoid using your RRSP to buy a home

The Liberals have raised the amount you can borrow from your RRSP to buy a home, but there are costs, writes Gordon Pape.

from Toronto Star | BUSINESS | PERSONAL_FINANCE https://www.thestar.com/business/personal_finance/advice/2019/03/31/why-you-might-want-to-avoid-using-your-rrsp-to-buy-a-home.html

Achieve Financial Literacy!

MoneyTips

April is National Financial Literacy Month. Why do we dedicate this calendar page to highlighting financial skills and education? The tax deadline? Sound financial decisions are important all year long, but most Americans never learned how to manage money or save for goals, so financial security is a bigger challenge than it needs to be.

Even if you can handle the math involved — and calculators can help if you can't — things get complicated when making large (often emotional) financial decisions. Some of the most common pitfalls are described below. If you recognize any of them, you're not alone. The good news is that you have an opportunity to improve your finances and save more money.

Emergency Preparedness

An emergency fund is essential because you need to absorb life's surprises without making things worse. Without a stash of cash, you'll have to take...

from MoneyTips https://www.moneytips.com/achieve-financial-literacy

13 Ways To Prevent Credit Card Fraud

MoneyTips

You've taken steps to avoid identity theft, and maybe even applied a credit freeze to your credit report. You can sit back and relax, right?Wrong. You may have prevented identity thieves from opening new accounts in your name, but have you kept your existing credit accounts secure?

As opposed to identity theft where your information is used to create unauthorized accounts in your name, credit card fraud refers to a single existing account. A thief has stolen your card or has the necessary card information to make unauthorized purchases on that account.

How do you prevent credit card fraud? Here, we offer thirteen possible precautions:

1. Avoid Ph...

from MoneyTips https://www.moneytips.com/13-ways-to-prevent-credit-card-fraud

Millennials Not Smart When It Comes To Credit Cards

MoneyTips

New Survey Shows Poor Credit Habits of Millennials

Americans must love credit cards. As of the end of 2018, Federal Reserve data shows that we have racked up $870 billion in outstanding credit card debt on our nearly 480 million credit cards in circulation. However, generations vary in how they handle credit card debt.

Millennials tend to be the most cautious with credit – perhaps because many of them came of age during the housing crisis and subsequent recession. Data from the 2017 Experian State of Credit Report found that Millennials hold an average of 2.5 credit cards, while older generations hold from 3.0-3.5 cards on average. They also carry a lower average balance of $4,315, compared to $7,750 for Generation X, $7,550 for Baby Boomers, and $4,613 for the Silent Generation.

A new survey suggests that Millennial caution is warranted. The recent TD Bank Consumer Spending Index uncovered several unhealthy Millennial credit habits.

No...

from MoneyTips https://www.moneytips.com/millennials-not-smart-when-it-comes-to-credit-cards/359

How to tap into the growing power of the ‘green’ energy market

Green energy initiatives are no longer small-scale ventures relying on government subsidies to survive, writes Gordon Pape.

from Toronto Star | BUSINESS | PERSONAL_FINANCE https://www.thestar.com/business/personal_finance/2019/03/17/how-to-tap-into-the-growing-power-of-the-green-energy-market.html