Money Management

These tricks are more common than you think. 

It’s amazing how much damage someone can do with just a few pieces of your personal information. They can drain your bank accounts, ruin your credit, and drive lenders to call you at all hours of the day. That’s why keeping your personal information safe is crucial to your financial well-being — and your sanity.

You probably know that you shouldn’t write down your passwords where others can find them or log into financial accounts on a public Wi-Fi network. But identity thieves also have trickier ways of obtaining your information. Here’s some you may not have thought much about.

1. Oversharing on social media

Social media gives you a platform to share updates about your life with friends and family, but they aren’t always the only ones seeing your information. If you have your profile set to public, anyone can see everything that you post. And even if you have it set to private, a skilled hacker could still break in.

You may not realize it, but your accounts could be a treasure trove of personal information. You probably have your birthday listed there. You may have also noted where you attended school and the year you graduated, as well as the town you live in now. If you’re friends with your mom, it’s probably not even that hard for a thief to work out your mother’s maiden name.

Facts like these are commonly used to verify your identity on your bank accounts. By making them readily available, you’re making it a lot easier for thieves to impersonate you. And the data backs that up. One Javelin Strategy & Research study found that active social media users had a 46% higher risk of account takeover fraud compared to those who don’t use social media as much.

That doesn’t mean you have to close all your accounts. But you should make sure you set everything to private and limit how much personal and financial data you share. As an added safety measure, you could avoid using readily available information for your security questions on your financial accounts. For example, rather than listing your mother’s maiden name, you could list your grandmother’s instead.

2. Online quizzes and surveys

Quizzes promising to tell you which superhero you are or what kind of luck you’ll have in 2023 can be an innocuous way to pass the time. But scammers also use them as a tool to extract your personal information. One popular strategy is to ask questions that are also common account security questions, as discussed above.

Identity thieves can use surveys to do the same thing. But some take it a step further, promising payment for your help with a particular survey. They might invite you to submit your contact information or even your bank account information in the hope of receiving payment, but you’ll never see a dime. That’s why it’s best to avoid online quizzes and surveys unless you’re confident you’re dealing with a legitimate organization who isn’t going to use your answers against you.

3. Impersonating a business you work with

Scammers sometimes create fake businesses in an attempt to solicit personal information from unsuspecting marks. But many opt instead to shroud themselves in the authority of an established company or even the federal government. They contact you pretending to be a member of one of these organizations, requesting you either confirm or update some personal data or even accusing you of owing money.

Sometimes, these scams can sound pretty credible, especially when the person calling claims to be from a bank or credit card company you already work with. These imposter scams raked in over $2.33 billion in 2021, according to the Federal Trade Commission (FTC), with a median loss of $1,000 per person.

You might be able to spot these scams just by looking at how the person reaches out to you. The government won’t send you a text or call you to tell you that you owe money. In most cases, you’ll receive a written notice first.

When in doubt, you shouldn’t give out any personal information, no matter how the person pressures you. Don’t visit any websites or call any numbers they give you either. Use your own web browser to look up the company’s actual website and phone number and then reach out if you’re unsure whether the communication you received was legitimate.

Scammers aren’t going away. In fact, they’re innovating all the time. So make sure you’re taking all appropriate steps to protect your financial information. And stay up to date on information about the latest scams to ensure you don’t become their next victim. The Federal Trade Commission (FTC) routinely publishes guidance on popular scams, so this is something to keep an eye on.

If you believe you’ve been a victim of a scam, notify the FTC and your local police department if you believe the thieves were local. Take steps to protect your other financial accounts as well by changing passwords and security questions and notifying the affiliated institutions if you notice anything amiss.

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All of these could lower your tax burden for 2023. 

Taxes can be a huge burden, whether you have $1 million in the bank or no money in your savings account whatsoever. That’s why it pays to do what you can to eke out tax savings. And claiming the right tax credits is a good way to go about that.

A tax credit is a dollar for dollar reduction of your tax liability. It differs from a tax deduction, because what those do is simply exempt a portion of your income from taxes.

Here’s how to understand the difference. If you claim a $1,000 tax credit, you lower your tax liability by $1,000 no matter what your effective tax rate is. If you claim a $1,000 tax deduction, the amount of tax savings you reap will hinge on what your tax rate looks like. So if you fall into the 22% bracket, that $1,000 deduction will mean saving $220 on your tax bill.

Meanwhile, there are a number of lucrative tax credits you may be eligible to claim in 2023. Here are three to keep on your radar — especially if you have kids.

1. The Child Tax Credit

The Child Tax Credit got a lot of press in 2021, when its maximum value was boosted and half of the credit was paid in monthly installments that hit bank accounts from July through December of that year.

In 2023, the Child Tax Credit is worth a maximum of $2,000 per qualifying child. Up to $1,500 is refundable. For a child to qualify, they must be under 17.

You can claim the full amount of the Child Tax Credit if your income is $200,000 or less as a single tax filer, or $400,000 or less as a joint filer. From there, the credit begins to phase out until it’s eventually worth nothing.

2. The Child and Dependent Care Credit

The Child and Dependent Care Credit is available to parents who pay for childcare so they can work. To qualify, you and a spouse (if filing a return jointly) must both have earned income. You can claim between 20% to 35% of up to $3,000 in childcare costs for a single child under age 13, or up to $6,000 in childcare costs for two or more children under aged 13.

Now if that sounds confusing, well, it is. But let’s say your earnings are such that you can only claim 20% of childcare costs for one child. If you spend $8,000 a year on childcare, you can still only claim 20% of $3,000, or $600 as your credit.

3. The Earned Income Tax Credit

The Earned Income Tax Credit (EITC) is a credit designed to assist lower earners. And what makes it really valuable is that it’s fully refundable, so if you owe the IRS nothing, you can still receive the full value of the credit.

You can qualify for the credit based on your income and number of dependents. You also can’t have more than $10,300 in investment income to qualify.

This table summarizes who’s eligible for for the EITC, and what the credit is worth:

Clearly, these credits, individually and collectively, could save you a bunch of money on your taxes in 2023. Be sure to claim them if you’re eligible. And if you’re not sure, consulting with a tax professional is a good bet.

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Some of these benefits could be worth thousands of dollars per year. 

When searching for a new job, salary is always the big focus. There’s a good reason for that, but it doesn’t tell the full story. If you base your decision on salary alone, you might overlook some other benefits that could help you save money or earn even more in the future. Here are three other job perks that could help make up for a salary that’s a little lower than your target.

1. A retirement account with an employer match

Retirement accounts enable you to save money for your future and earn tax breaks in the process. Some, like 401(k)s and SIMPLE IRAs, also enable you to collect a match from your employer. This is essentially an extra bonus you get just for saving money for your future. For some people, it could be worth thousands of dollars a year.

Not all employers offer a company-sponsored retirement plan, though, and of those that do, some may choose not to match employee contributions. So it’s always a good idea to inquire about what sort of retirement benefits the company offers. If it says there is a match, ask about the matching formula so you know how much you’ll need to contribute to claim the whole thing and about how much you could earn in a year.

2. Help with educational expenses

There are a few ways employers can offer assistance to those seeking to further their education. They might provide on-the-job training or pay for you to attend courses and seek an advanced certification in your field. Some companies even promise to help you pay for a degree in any field, which is great for those who would like to make a career change someday.

These perks could save you some money now and help you earn even more in the future. But it’s important to understand the terms before you agree to this. You might need to work a certain number of hours or months with the company and it may only pay for certain things. Ask whatever questions you need to to get a full picture of how this benefit works.

3. Employer-sponsored health insurance

Anyone can purchase health insurance on their own, but this can get pretty expensive, especially for plans that cover the entire family. It’s often more cost-effective to get insurance through an employer if the employer offers one. There will still be deductibles and copays and the employer may withhold some of the premium cost from each paycheck. But it’s still possible to come out ahead this way compared to purchasing an individual health insurance plan.

As always, it doesn’t hurt to inquire about the plan, including its deductible and coverage. Married couples where each partner has access to employer-sponsored health insurance should compare both plans to decide which makes the most sense for each of them.

See if the company provides other types of insurance as well. Some offer dental and vision coverage and a few even offer a modest amount of life insurance to their employees. Disability insurance may be an option as well, especially if it’s a high-risk job.

Combined, the above benefits could help you come out ahead financially compared to a job that just offers a high salary and nothing else. Of course, you always have to consider non-monetary factors, like work-life balance, as well. Ask whatever questions you need to get a sense of what the company offers before deciding whether it’s the right fit for you.

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For these five states, the work continues. 

There’s no question that COVID-19 did a number on the economy, both here and around the globe. After all, who would have imagined that states would still be sending checks three years after the pandemic hit American shores? Once it became clear that more federal stimulus checks were highly unlikely, these states stepped in to fill the financial gap.

Just as everyday citizens received stimulus checks, so did individual states. Some of those state governments decided to share a portion of their stimulus funds with residents. Whether states labeled the funds a tax rebate, inflation relief check, or one-time taxpayer refund, they’ve all been a type of stimulus.

As we start off February, these five states continue to process payments. According to some, payments began going out in 2022. However, for a variety of reasons, millions of residents have yet to receive the additional funds in their bank accounts.

Here’s where states stand as of today.

1.Colorado

Coloradans who requested an extension to file their 2021 tax returns should receive stimulus funds sometime this week. Single tax filers are due $750, and joint filers are owed an extra $1,500 to spend on bills or save for a rainy day.

2. Idaho

Idaho residents will have to wait until the end of March for a rebate approved by a special session of Idaho legislators. Single tax filers will receive $300 or 10% of their 2020 income tax liability, whichever is greater. For joint filers, the amount is $600 or 10% of their 2020 income tax liability, whichever is greater.

3. New Jersey

New Jersey residents have until the end of May to consider what they want to do with their property tax rebates. Homeowners earning up to $150,000 qualify to receive $1,500, while homeowners earning $150,000 to $250,000 are due $1,000. Renters who earn less than $150,000 qualify to receive a $450 rebate.

4. Pennsylvania

Residents 65 and older, widows and widowers age 50 and older, and people with disabilities age 18 and older are welcome to apply for rebates on property taxes or rent paid in 2022. The maximum standard rebate is $650, but qualified homeowners may receive as much as $975 through a supplemental rebate. The state encourages applicants to use myPATH to submit an online application.

5. South Carolina

South Carolina residents have until Feb. 15 to file their 2021 state income tax returns and become eligible to receive a refund check of up to $800. The actual rebate amount will be based on 2021 South Carolina income tax liability, minus credits.

If it seems odd for residents of South Carolina to file their 2021 state returns as the rest of the country files their 2022 returns, the delay can be attributed to Hurricane Ian. The original filing deadline was Oct. 17, 2022, but was pushed back to give those impacted by the hurricane more time to get their records together and file.

Given the loss of life and economic impact of the pandemic, we can only hope that COVID-19 will truly be a once-in-a-lifetime experience. We can’t be sure of that, of course, but we do know that if anything like this happens again, local and state governments may have a better idea of how to handle it.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Keep an eye out for these so you can file an accurate tax return. 

Now that the 2023 tax-filing season is underway, you may be eager to get your taxes done on the early side. Doing so could mean seeing your refund hit your bank account sooner (assuming you’re owed money from the IRS).

But to file your tax return, you’ll need certain forms in hand. And here are a few important ones to look out for early on this year.

1. Form W-2

If you’re a salaried employee, this is the form you’ll get summarizing your wages for the year. You’ll need this information to know how much work-related income to report on your taxes.

2. Form 1099-MISC

If you worked on a freelance or self-employed basis and were paid $600 or more from a given company or entity, it’s required to issue you this type of 1099. Do note that the IRS receives copies of any 1099 that’s issued to you, so if you’re thinking of not reporting a small amount of income, well, don’t, as that could get you into trouble.

You should also know that if you earned less than $600 from a given company or entity and therefore aren’t getting a 1099, you’re still required to report that income to the IRS and pay taxes on it. The IRS may or may not find out about that income in the absence of a 1099. But for such a small amount of income and associated tax bill, it’s really not worth taking the chance.

3. Form 1099-INT

If you earned interest from a savings account or certificate of deposit, this form will summarize the amount of interest income you earned. Interest income is taxed as ordinary income, and the IRS is entitled to a piece of it.

4. Form 1099-DIV

If you hold dividend-paying stocks in a brokerage account, this form will summarize the amount of money you received in dividends. The good news is that most dividends are considered qualified dividends, which are taxed at a lower rate than interest and ordinary income.

5. Form 1098

If you have a mortgage loan, this form will summarize the amount of interest you paid on it the previous year. That’s an important figure to have, because if you’re itemizing on your tax return, as opposed to claiming the standard deduction, you can deduct your mortgage interest and reap some savings. And if you’re in the early stages of paying off your mortgage, more of your monthly payments are likely going toward interest, so the associated tax break could be substantial.

Be on the lookout

The deadline for companies to send out W-2s is Jan. 31, and that’s the deadline that generally applies to 1099 forms as well. So if, come February, you’re missing forms you expected to receive, reach out to the entities in question and find out what’s going on.

Keep in mind that a lot of banks and financial institutions no longer mail out 1099 forms. Instead, they make them available for download when you log into your account. So don’t assume a form of yours isn’t available just because it hasn’t arrived in the mail.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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