5 Ways Fake News Could Be Sabotaging Your Retirement Plans
Here are some overly optimistic assumptions that may be producing a retirement planning calculation based on “fake news:”
Source: Forbes
Shocking Student Debt Statistics
Everyone wants a slice of the American Dream and, in this modern day, going to college is essential to success. Forget the Jones’, these days Americans are finding it increasingly difficult to keep up with the student loans they took out to help ensure future success.
So, what happens when the very institution that’s supposed to safeguard your future now sabotages it with years of debt? Experts aren’t completely agreed upon in terms of how to go about solving the crisis but, judging by these numbers, we’d say the issue runs pretty deep.
The amount of outstanding student loan debt balances as of December 31, 2016, according to the Federal Reserve Bank of New York. It first exceeded $1 trillion in March 2012.
The number of American borrowers who have student loan debt, according to Student Loan Hero.
The amount student loan debt is increasing every second, and has been since 2006, according to MarketWatch. The site even has a handy-but-scary student loan debt clock that shows student debt amounts in real time.
The ranking of student loan debt (10%) compared to other types of consumer debt is second only to mortgages, which make up 67%. For perspective, auto loans are at 9%.
The percentage of students who graduate college with debt, according to MarketWatch.
The amount by which student loan balances increased in one quarter (third quarter to fourth quarter) in 2016.
The percentage of borrowers who are actually paying down their student debt, according to MarketWatch.
The percentage of student loan debt that was 90 or more days delinquent/default – just in the fourth quarter of 2016. To put this in perspective, delinquent credit card loan debt is 7%; auto loans at 4%.
The average amount a class of 2016 graduate has, according to Student Loan Hero. Note: this is 6% higher than last year.
Source: Fastweb
What Is Adjusted Gross Income And Why Should You Care?
Unless figuring out the tax code intrigues you, there is no need to become an expert on how it all fits together, but I do think it’s important to have a general understanding of the different terms. Why? Because you’ll be able to make better financial decisions that ideally may lead to tax savings.
Source: Forbes
Financial Aid for Female Students
Female students can find financial aid opportunities that are completely exclusive to them. With the help of these resources, female students can hope to better afford college tuition. For even more funding opportunities, check out scholarships for women.
Graduate Fellowship Notebook (Cornell)
The fellowship notebook at Cornell contains a large searchable text database of graduate fellowships, including fellowships specifically for women and minorities.
Fellowship Listing at Yale University
This page lists fellowship programs and other resources for graduate students in computer science, with a focus on women and minorities. This page is part of the Ada Project (TAP).
Scholarships/Grants for Women (University of Minnesota)
American Association of University Women (AAUW)
AAUW is a nationwide organization dedicated to promoting education and equity for women and girls. The AAUW Foundation offers direct support to women through fellowships, grants and awards; research; voter education; educational resources; grassroots activism; community action projects; and legal assistance against sex discrimination in higher education.
The Jeannette Rankin Foundation Women’s Scholarship Fund awards scholarships to low-income women age 35 or older who are US citizens. The deadline is March 1.
Patsy Takemoto Mink Education Foundation
The Patsy Mink Foundation offers scholarships for low-income women with children each year.
Raise the Nation provides scholarships to single parent women and their children who demonstrate financial need.
Soroptimist Women’s Opportunity Awards
The Soroptimist Women’s Opportunity Awards provide scholarships to women who are the primary wage-earner for their family and demonstrate financial need.
Women In Defense HORIZONS Scholarship Foundation
Women In Defense (WID) established the HORIZONS Scholarship Foundation to assist women who are pursuing or plan to pursue, careers related to US national security.
Women’s Independence Scholarship Program
The Women’s Independence Scholarship Program provides scholarships to survivors of domestic violence and people who work in the field of domestic violence (e.g., women’s shelter staff).
Source: Fastweb
Are You A First Time Home Buyer? Be Aware Of These Mortgage Programs
In some cases, “first-time” programs are little more than attention getting marketing messages from lenders, while in others they are actual assistance programs for people who may otherwise face challenges with qualifying for a home mortgage or finding a home loan at an affordable interest rate.
Source: Forbes
"Free" Money & Taxes
Do you know the difference between a scholarships, grant and fellowship?
Are you aware of the tax statuses of scholarships, grant and fellowship funding?
It’s important to know the differences between the types of award funding, along with any government regulations applied to student award funds.
Luckily, the majority of scholarships, fellowships and grants have built-in stipulations that require the funds to be applied to qualified expenses.
However, like it or not, some so-called “free money” is taxable and it’s important for students to understand the differences between the types of awards, as well as the qualifications for taxation.
First, the differences between the types of awards: [gate]
Scholarships are funds gifted to students studying for a degree, usually to be applied towards the student’s educational endeavors.
Scholarships do not require repayment by the student, though some sort of an application process is usually necessary.
There are scholarships for students of all ages – from kindergarten through graduate school.
Grants are usually funds awarded to students deemed eligible by specific criteria, many based on financial-need and are usually given by government entities.
Grants usually don’t require repayment by the student.
Fellowships are funds given to benefit a student’s studies or research endeavors.
All of the above options are generally considered to be “free money,” which is true – as long as it’s tax exempt.
It’s important to remember that such awarded funds are only tax exempt if the student is studying towards a degree within an eligible educational institution.
If the award recipient is not in pursuit of a degree, the award funds can be taxable.
Both athletic and academic scholarships are, in fact, taxable unless otherwise exempt for other reasons.
It also matters what the award money is spent on. There are qualified and unqualified expenses, when it comes to taxable funding.
Qualified expenses include tuition, fees, equipment such as books and supplies that are required by the educational institution.
Unqualified expenses include room and board, travel, research, equipment and supplies that are not required by the education institution.
Even if you have to work to earn the funding, such as with a fellowship, your funding is likely still liable to be taxed.
It’s essential to keep documentation and records of any scholarships, grants or fellowships given as funding for your educational endeavors.
Even if you aren’t required to pay taxes on your awards, you should always claim them on your federal income tax return since schools aren’t required to report them unless some sort of service is performed for the funding.
To learn more about what is or is not eligible, read Should I Claim Scholarships & Other Awards on My Taxes?
Always know your options in terms of funding – but be aware of the rules and regulations that accompany “free money.”
Do you think it’s wrong for the government to tax educational funding?
Source: Fastweb
All About Tax Filing
Starting to feel completely confused about the tax-filing process?
Don’t worry, you’re not alone and we certainly don’t blame you! After all, it is absolutely confusing!
They say “nothing is certain but death and taxes,” but, at Fastweb, we beg to differ.
We’re certain that Fastweb will always have you prepared with the necessary information to do things, like filing taxes for the first time.
The good news is that Fastweb has all the tax filing information that you’ll need.
We’re always here to help with easy to understand, reader-friendly information to do things, like filing taxes for the first time or discovering if your scholarship is considered taxable.
So, if you find yourself in a pickle on or before the 15th, start by looking to the helpful articles below to guide you.
The following top three articles can help you decipher your how-to’s of tax-filing.
Utilize these as your top references when it comes to your award questions regarding taxes:
Not anticipating a big tax refund? Fastweb has plenty of ways for you get extra money to pay for school!
Source: Fastweb
Should I Claim Scholarships & Other Awards on My Taxes?
If you’ve won a scholarship, grant or fellowship, congratulations are in order! You’ll surely want to share the great news with Mom, Dad, Grandma…and Uncle Sam.
Why? Because, your scholarship, grant or fellowship may count as income and, if so, that means that it’s taxable.
It’s important to find out if your award is taxable and, if so, figure out how to correctly report it when filing your annual tax return.
We’ve compiled a guide to help you decipher which category your educational award falls under – taxable or tax-free.
Additionally, if your award is taxable, we’ve included instructions in order to help you figure out how to claim it on your taxes.
A scholarship is tax-free if:
• You are a full-time or part-time candidate for a degree at a primary, secondary or accredited post-secondary institution.
• The award covers tuition and fees to enroll in or attend an educational institution.
• The award covers fees, books, supplies and equipment required for your courses.
The award is tax-free only as long as you use it for the purposes outlined above.
Your scholarship is taxed if it was used to cover any of the following:
• Room and board
• Travel
• Research
• Clerical help
• Fees, Books, Supplies and Equipment (Not required for the course or attendance)
If your award covered both tuition and room and board, the amount you use for tuition is tax-free. However, the amount you used for room and board is taxable. Remember, if you need to make this adjustment, you may have to adjust other parts of your return as well.
For example, if you are filing a deduction for educational expenses, you must reduce the amount of your deduction by the tax-free amount of the award.
Note: Items that are required for your course or for course attendance are generally not taxable.
When it comes to taxes, if you’re not savvy about it, finding the right government form can be a challenge in itself!
Which is no longer an issue, because the only forms you need to think about in terms of claiming scholarships, grants and fellowships are the following:
• 1040 – U.S. Individual Income Tax Return
• 1040A – U.S. Individual Income Tax Return
• 1040EZ – Income Tax Return for Single and Joint Filers With No Dependents
• 1040NR – U.S. Nonresident Alien Income Tax Return
• 1040NR-EZ – U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents
If your only income is a tax-free scholarship or fellowship, you’re in the clear. You don’t have to file a tax return or report the award. However, if all or part of your scholarship is taxable and if that money is not recorded on your W2 form, you must report it.
To help you figure out the exact amounts that should be reported as taxable and non-taxable of your award, check out the IRS site section on tax benefits for education, where they have implemented an interactive tool to discover whether you’re eligible to claim an education credit.
In order to help save time, we’ve compiled information included within the packet for you. However, if you have additional questions, we suggest you refer to the IRS site before any panic attacks ensue.
Note: Any tuition reduction that is taxable should be included as wages on your W-2 form.
Here’s a quick guide detailing how to report your scholarship, fellowship or grant income depending on which return form you are filing:
If you are filing a 1040EZ form: If you file Form 1040EZ, include the taxable amount in the total on line 1. If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount in the space to the left of line 1.
If you are filing a 1040 form: If you file Form 1040, include the taxable amount in the total on line 7. If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount on the dotted line next to line 7.
If you are filing a 1040A form: . If you file Form 1040A, include the taxable amount in the total on line 7. If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount in the space to the left of line 7.
If you’re not sure if your award is taxable, ask the organization that sponsored the award. They may have information from the IRS regarding your award’s tax status.
If you have questions, ask as soon as possible to get your answers before the end of tax season, when they are likely swamped with questions.You can also seek information directly from the Internal Revenue Service. Find help understanding education benefits and taxes on the IRS web site detailing ways to contact your local IRS office with questions.
Or, find your own answers by checking out the IRS Tax Benefits for Education, which covers information on education tax benefits.
Source: Fastweb
The Biggest Thing Your Investment Portfolio May Be Missing
Are you confident that your investments are well positioned to help you reach your financial life goals? This can be a difficult question to answer if you do not have a written action plan already in place to help provide guidance for your investment decisions.
Source: Forbes
Why Your Budget Is Failing And How To Fix It
A few changes can go a long way into making 2017 the year you conquered the budget!
Source: Forbes
How To Cover Medical Expenses If You Retire Before 65
When we talk to employees of our client companies about early retirement, one of the biggest concerns they have is what to do about health insurance if they plan to retire before they’re eligible for Medicare at age 65. Let’s take a look at some of the options:
Source: Forbes
The 5 Biggest Mistakes Millennials Are Making With Their Money
Call it FOMO (fear of missing out), call it peer pressure, call it what you will, but I think that in most areas of life, we often just want reassurance that we’re doing all that we can and aren’t screwing up our future prospects in life too much by living in the present.
Source: Forbes
February is Financial Aid Awareness Month
February is one short month jam-packed with tons of important events!
Yep, February claims Groundhog’s Day, Black History Month, Ash Wednesday, Valentine’s Day and President’s Day.
While you probably thought that was enough to fill such a short month, there’s one very important celebration that takes place all month long that you likely overlooked.
But, at Fastweb, it’s one of our favorites!
February is also Financial Aid Awareness Month. It’s clearly the perfect time to celebrate by completing your FAFSA form, learn some more about financial aid and how to score more of it in the meantime.
Have no fear, FastWeb’s here to help – especially during this month of celebration.
In honor of Financial Aid Awareness Month and, of course, in hopes to help you better understand and assess all of your financial aid options, we’ve listed some resources you can utilize to learn more about financial aid:
Source: Fastweb
