Consumer

• H&FF Radio offers ideas for holiday shopping, 2009 taxes
• Get the most bang for your charitable buck this season
• New homebuyer tax credit boon for boomers

H&FF Radio offers ideas for holiday shopping, 2009 taxes

WASHINGTON (11/20/09)--Sunday's H&FF Radio program provides information about tax credits for home improvements, new income tax deductions and credits for 2009, holiday budget ideas and holiday spending projections.

Home & Family Finance airs Sundays at 3 p.m. ET on the Radio America Network. The show also is carried on American Forces Radio Network. The one-hour program devoted to consumer finance issues is brought to you by America's credit unions and their 90 million members, and is presented by CO-OP Network.

The Credit Union National Association (CUNA) and Radio America are podcasting Home & Family Finance through iTunes, Podcast Alley, Odeo, and other popular podcast library sites, as well as on Radio America and CUNA's websites.

Sunday's show, which you also can hear later via the Internet, features Paul Berry, Washington, D.C., journalist and broadcaster, discussing these topics with special guests:

• "2009 Income Tax Credits for Energy Efficient Home Improvements," with Ronnie Kweller, director of media relations, Alliance to Save Energy, Washington, D.C.;

• "IRS Tax Tips on New Deductions and Credits for 2009," with Eric Smith, national spokesman, Internal Revenue Service, Washington, D.C.:

• "Spend Green without Going in the Red This Holiday Season: Create a Holiday Budget," with Ethan Ewing, president, Bills.com, San Mateo, Calif.; and

• "What Consumer Reports Knows About This Holiday Shopping Season That You Don't--But Should," with Ed Farrell, director of market research, Consumers Union, Yonkers, NY.

Home & Family Finance is a resource center for personal finance information at CUNA. The radio show is sponsored by CO-OP Network, the national credit union ATM network; Cabot Creamery Cooperative, maker of award-winning cheddar; Western Corporate FCU (WesCorp) and its member credit unions; and the Defense Credit Union Council and member credit unions, serving those who serve our country worldwide.

For more information, read "Earn Tax Credits for Energy-Efficient Improvements" and "'Tis the Season for Trouble-Free Shopping, Returns" in the Home & Family Finance Resource Center.

Resource Links

Build a Basic Budget: The 5-Step Spending Plan member seminar kit

Happy Holidays from Your Credit Union drive-up envelope

Home & Family Finance Radio

Home & Family Finance Resource Center

Get the most bang for your charitable buck this season

NEW YORK (11/18/09)--The economy, while improving, still will take a toll on 2009 holiday observances: 63% of respondents to a recent Discover Financial Services survey aim to spend less this year on gifts due to personal finance concerns (online.wsj.com Nov. 4).

Charities also expect to feel the squeeze as U.S. consumers tighten budgets over the holidays. Among the nation's largest fund-raisers, half expect donations to drop more than 9% during the period (usatoday.com Nov. 2).

With less money to go around this season, it's even more important to make your charitable dollars go further. Follow these tips to ensure your donations--large or small--have the greatest impact:

• Avoid administrative costs. Some organizations collect a percentage of your cash donation for administrative costs. Contact your charities or research them online to find out what percentage of your donation actually will go to your intended cause. The Better Business Bureau has an excellent online resource at www.bbb.org/charity.

• Pinpoint your dollars. Focus on organizations that you care about most. Concentrating your support allows you to give more to a cause instead of spreading the charitable amount to several entities.

• Cash instead of food. Food banks often can purchase more with a cash donation than you can at your local grocery store. Instead of buying items to donate, consider donating the amount you would have spent.

Resource Links

Holiday Statement Stuffers

Budgeting Resources

MoneyMix: Launch Your Life

Home and Family Finance Resource Center

New homebuyer tax credit boon for boomers

NEW YORK (11/16/09)--The new and improved Extended Home Buyer Tax Credit--signed into law Nov. 6--is welcome relief to more than just first-time home buyers. It may be a windfall for boomers or retirees thinking of downsizing (Forbes.com Nov. 6).

The previous $8,000 tax credit was available only to first-time home buyers and to anyone who hadn't been a homeowner during the three years before closing on a new house. Now, longtime homeowners can get a tax credit of up to $6,500, opening the door for anyone thinking of trading down--or up--or moving to a different locale for their retirement years.

Whether you're buying your first house or downsizing, understand the rules:

• Deadlines. To claim either the $8,000 or $6,500 version of the tax credit, you're required to close on the new house--or be locked into a contract to close--before May 1, 2010. Closing must occur before July 1, 2010 (Bankrate.com Nov. 9).

• Maximum allowable credit. For first-time home buyers, it's $8,000. For current homeowners, it's $6,500. The allowable tax credit amounts to 10% of the sale price, so if the purchase price is just $75,000, the tax credit would be $7,500.

• Threshold. If your house sells for more than $800,000, you won't qualify for the tax credit.

• Purchase dates. You must purchase the house between Nov. 7 and April 30, 2010.

• Income limits. Single individuals with modified adjusted gross income (MAGI) of up to $125,000 can qualify for the full credit, up from $75,000 under the old law. For couples filing jointly, the full credit is available for MAGI of up to $225,000--previously $150,000. Above those amounts, there's a phase-out over the next $20,000.

• Eligible properties. The Extended Home Buyer Tax Credit can be applied to primary residences, including single-family houses, condominiums, townhomes, and co-ops.

• Size and price requirements. There are none. Your new house doesn't have to be bigger or more expensive than the old one. And, you don't have to sell your old house to claim a buyer's credit.

• Paperwork. You're required to attach a copy of the new house's settlement statement to the federal tax return for the year of purchase. This proof of purchase is intended to cut down on fraud and questionable tax accounting associated with the previous tax credit legislation.

• Flippers. If you move within 36 months after the new purchase, you may have to pay back the credit.

Military personnel who serve outside the U.S. for at least 90 days in 2009 or 2010 get an extra year to claim the credit. Any servicemember who's forced to sell a house because of a military service assignment won't be required to pay back the credit.

Finally, be on the lookout for tax fraud. If anyone in the transaction advises you to conceal information from your lender, walk away and cease all communication with that individual.

Resource Links

Anytime Adviser Home Buying Coach

Home Buyer Education: Shopping for a Home member seminar kit

Plan It: Retire Ready Toolkit

10 Questions to Ask a Mortgage Lender statement stuffer

How Much House Can You Afford? statement stuffer