NewsUSA Money
Sat, 04 Feb 2012 10:42:04 +0100

Insider Secrets to an Affordable Road Trip
(NewsUSA) - Whether traveling for business or pleasure, most people will take at least one road trip this year, and when they do, they'll be looking for value. To help get the most out of your next trip, here are five insider secrets from travel expert and life-long hotelier, Rajiv Bhatia, head of roadside hotel chain Knights Inn. 1. Book Your Hotel Direct. Shopping around is always a good idea, and it seems like new websites pop up every day to help travelers do just that. That's great for comparing offerings, but when you've made your choice, book directly with the hotel or brand. More often than not, you'll be offered a lower price as well as a best-rate guarantee. 2. Pass on Car Rental Insurance. Rather than paying the insurance that car rental companies provide for a fee, check your personal policy. Often, your plan will include a travel clause that you may not be aware of, saving you as much as $30 a day. To save even more, don't worry about the size of the rental car you are reserving and go with the smallest size offered. The most compact cars usually get overbooked and sell out fast, often leading to a free upgrade. 3. Don't Pay for What's Free. Spend your money on fun, not on hotel Internet fees and expensive breakfasts. Stick with hotels that offer these amenities at no cost. 4. Slow Down on the Highway. Savor the journey to your destination; it doesn't pay to rush. Driving in excess of 60 miles per hour will waste gas and money. For every five miles over, you car can lose as much as 23 percent fuel efficiency. 5. Brand Loyalty Pays. Hotel loyalty programs let travelers earn points for their stays, points that can be redeemed for gift cards, free nights and more. When you stay with competing brands, it's likely you won't earn enough points for rewards. Stay with only one brand or its affiliates and watch your point balance grow. Like having choices when you travel? Try Wyndham Rewards, it's the largest hotel loyalty program in the world, with 14 brands and over 6,500 hotels.
Mon, 30 Jan 2012 00:00:00 EST

It's Tax Time. Are You Taking All the Deductions Allowed?
(NewsUSA) - Here's a scary number to keep in mind if you're just getting your tax receipts together: $1 billion. No, it's not the amount that Warren Buffet's secretary -- let alone Buffet personally -- paid the IRS in her lifetime. It's how much taxpayers approximately wind up forfeiting each year to the government because of self-inflicted tax errors like: failing to claim tax credits and deductions legally due them; choosing the wrong filing status; and not bothering to send in a return at all. Well, guess what? A slew of recent changes in the tax law won't make things any easier this year. "At a time when taxpayers are hurting, it really doesn't make sense to leave money on the table," says Elaine Smith, master tax advisor at H&R Block, the giant tax preparation firm (www.hrblock.com). Here are some things -- good and bad -- to watch out for: * Casualty losses. Hurricane Irene. Midwest tornadoes. Texas wildfires. Mother Nature went a little nutty last year, and -- if the president declared your area a disaster -- you could be able to claim your loss as an itemized deduction on your 2011 return or on an amended 2010 one. * Reduction in the Energy Savings Home Improvement Credit. At its height, this was a 30-percent credit on the cost of high-efficiency windows, furnaces, central AC and the like. It's now 10 percent. Plus, the maximum lifetime credit went from $1,500 to $500. "That means if you spent a total of $5,000 on IRS-approved upgrades in 2011," says Smith, "you can claim a $500 credit. Unless, that is, you'd already maxed out in prior years." * Expiration of the tax credit for hybrid cars. If you bought a Prius last year, you did so without the feds' help. However, the green cars du jour -- i.e., the electric-drive Chevy Volt and Nissan Leaf -- will score you a $7,500 credit. And there are goodies for things like conversion kits, too. * New cost-basis reporting requirements. Apparently, some of you were inflating the price you paid for stocks to reduce the taxes owed on capital gains. Or at least the government fears that was happening. So look out for a mandatory statement from your broker reporting your "cost basis" for stocks and securities held in taxable accounts -- as opposed to 401(k)s and IRAs -- that you sold in 2011. Of course, with the April 17 filing deadline approaching, those worried about becoming a member of the $1 Billion Club might want to consult a professional like those at H&R Block, which offers in-person services at its retail offices nationwide as well as the only face-to-face online preparation through Block LiveSM.
Thu, 12 Jan 2012 00:00:00 EST

Beyond 'The Number': Simple Ways to Save for Retirement
(NewsUSA) - Remember when it was sort of fun to talk about The Number? The Number refers to the amount of money you'd need to retire comfortably, and it was borrowed from the title of a 2006 book by former Esquire editor Lee Eisenberg. Everywhere you went in those comparatively giddy pre-crash days, it seemed, people were tossing around figures -- $1 million, $5 million - and often acting like it'd be a cinch to get there if they just gave up one Grande Cafe Vanilla Frappuccino a week. Needless to say, times have changed since then. But unless you like your 1-in-175 million odds of winning Power Ball, the need to soak away as much money as possible - as fast as possible, in the case of aging Baby Boomers - has only become more imperative. "One of the best pieces of advice we give clients is to keep it simple," says Elaine Smith, master tax advisor at H&R Block, the giant tax preparation firm (www.hrblock.com). How simple? Read on:* Make automatic contributions to 401(k)s. We now know what can happen if you let market fluctuations spook your use of this convenient savings vehicle. According to a study by Fidelity Investments of millions of their accounts, investors who dumped all their allocations in stocks between October 1, 2008, and March 31, 2009 (the market crash), and stayed out of stocks through last June 30, 2011 (a big upswing), saw an average increase in account balances of only 2 percent. That compares to an average 50 percent increase for those who rode things out with a continuous allocation strategy that included stocks.* Don't squander your raise. Consulting firm Hay Group says the average raise last year was 2.8 percent. Say your salary's $50,000. That's a $1,400 increase, or $26.92 a week. If you put that money into an IRA, in 10 years it would've grown to $3,108, based on an 8 percent average annual return. "It's all about delaying immediate rewards on things like your fifth pair of designer jeans," says Smith. * Invest your tax refund. The average refund last year was $2,913. Even the interest rate on savings accounts beats the free loan you essentially gave the government. * Take advantage of new fee disclosures. A new law is set to require much more transparency in most 401(k) plans. But why wait? Financial websites let you compare fund expense ratios, and the difference between an actively managed mutual fund charging 1.75 percent and an index fund charging only 0.07 percent -- especially if the former's performance is sub-par -- adds up.
Thu, 12 Jan 2012 00:00:00 EST

Tax Breaks for the Students in Your Family
(NewsUSA) - College costs may have entered nosebleed territory, but at least Uncle Sam is there waving a hanky in the form of juicy tax credits and deductions for those smart enough to claim them. If you've been footing those education bills, either for yourself or your child, the latest College Board statistics shouldn't be a shocker: In-state tuition and fees at four-year public colleges rose an average of 8.3 percent last year -- to $8,244 -- even as the economy sputtered. "That's a terrible upfront burden for many families," says Elaine Smith, master tax advisor at H&R Block (www.hrblock.com), the giant tax preparation firm. "But at least there are several breaks built into the tax code that could even mean the difference between whether you owe taxes or are due a refund." What breaks? Read on: * American Opportunity Tax Credit. This is the Gold Standard for those who qualify. Meaning, it's a dollar-for-dollar tax offset of up to $2,500, per student year, for up to four years of undergraduate education. "One of the best things about it is that up to $1,000 of the credit is 'refundable,'" notes Smith. "So you could wind up getting a refund for that amount if no taxes are otherwise due." Biggest cautions: You must be enrolled at least half-time in a degree program to claim it, and -- like all these breaks -- the benefit starts to phase out once you reach a certain adjusted gross income (AGI). * Lifetime Learning Credit. Eligibility standards for this one are broader, even if it's less generous than the AOTC. Pursuers of both college and graduate degrees -- as well as those taking classes to improve job skills -- potentially stand to benefit from a tax credit up to $2,000. Biggest caution: The credit can only be claimed once per tax return, regardless of the number of students taking courses. * Student-Loan Interest Deduction. If you're self-financing, congrats -- and skip this one. If not, we're talking up to $2,500 per year. Biggest caution: Only debt from graduate and undergraduate programs qualifies. * Tuition and Fees Deduction. There's a built-in caution to this $4,000 deduction: You can't claim it and the Lifetime Learning Credit for the same student, so do the math to see which works best. Of course, if the "M" word -- math -- scares you as much as the looming April 17 filing deadline, consult a professional like those at H&R Block, which offers in-person services at its retail offices nationwide as well as the only face-to-face online preparation through Block LiveSM. One last tip: For those wondering whether scholarship income awarded for room and board is tax-exempt, the answer, alas, is no.
Wed, 11 Jan 2012 00:00:00 EST

Free Tax Extension Filing Helps Avoid Costly Last-Minute Errors
(NewsUSA) - Now even chronic procrastinators have no excuse for giving the IRS more money than absolutely required. Last year, more than 10 million taxpayers applied for an extension on filing their tax returns -- thus not only sparing themselves from having to fork over a monthly 5 percent penalty for missing the IRS' dreaded deadline but also potentially avoiding making costly mistakes in a mad dash to comply. "Rushing can cause last-minute filers to forget necessary paperwork and miss out on claiming key tax credits and deductions," says Elaine Smith, master tax advisor at H&R Block, the giant tax preparation firm. So with this year's April 17 filing deadline looming, it's a big deal that participating offices at H&R Block (www.hrblock.com) will be offering free tax-extension filing from April 1 right through to D-Day for taxpayers. An extension buys an extra six months -- until October 15 -- to get those returns in. Ah, but don't completely stop sweating just yet. Just because you file for an automatic extension doesn't mean the IRS calls a time-out on any taxes due. (The U.S. national debt is $15 trillion-and-counting, and the money's got to come from somewhere.) Those who fail to pay up at the same time they submit Form 4868 face being hit with both late payment fees and interest on what's owed. "It's definitely not a way to keep more of your own money in your pocket," says Smith. With the tax code having gotten so complex over the years, it's easy to see why the extra six months would be needed. How many parents of special-needs children know, for instance, that the money they pay for their kid's supplementary classes or programs is considered a deductible expense if recommended by a doctor? Or that unemployment benefits must be reported as taxable income? That's why it helps to consult a professional like those at H&R Block, which offers guaranteed in-person services at its retail offices nationwide as well as the only face-to-face online tax preparation through Block LiveSM. One last thing: For those wondering why this year's filing deadline is April 17, that's because the normal cut-off date -- April 15 -- falls on a Sunday, and that Monday is Emancipation Day in the nation's capital.
Wed, 11 Jan 2012 00:00:00 EST

Tax Relief for the Sandwich Generation
(NewsUSA) - It's time to stop worrying that your adult, out-of-work kid may never find a job that lets him move back out of your house, and instead think of him the way the IRS potentially does: as a big, fat tax deduction. That's right, one consequence of the sputtering economy is that it's turned otherwise distressing family circumstances -- those "boomerang kids," for instance -- into windfalls for deduction hunters. Another bonanza, via the tax code? So many senior citizens have seen their nest eggs battered over the past few years that an estimated 9.7 million adults over age 50 are now providing some level of potentially deductible care for their own parents. "In many cases, you're looking at three generations living under one roof," says Elaine Smith, master tax advisor at H&R Block. "And those caregivers -- the so-called 'sandwich generation' -- are seeing their expenses rise as a result of their increased responsibilities." Just how much of a windfall are we talking? And who's eligible? Read on for some tips: * The $3,700 exemption. That's the reduction to your taxable income you'll realize for each qualifying child or relative. The IRS is quite specific about the definition of "qualifying," but -- in the case of returning adult children -- one thing you definitely need to keep in mind is that their total annual income must be less than $3,700. * Aging parents. Unlike your child, your mom and dad needn't live with you to qualify as dependents. If they're in a nursing home or assisted living facility, say, the IRS feels your pain if you're footing more than half their bills. In which case, the medical expenses you pay are deductible on your return. "You could easily be looking at about $40,000 in expenses racked up at one of those facilities," says Smith, "which translates into thousands of dollars in savings on your tax bill." * Adult children. Staying on the subject of medical expenses, don't forget any extra after-tax premiums you may be paying to keep qualifying offspring on your insurance plan. The IRS says the average taxpayer needed 23 hours to do their 2010 tax return. If that sounds too torturous, you might want to consider using a professional preparer like H&R Block (www.hrblock.com), which offers guaranteed in-person services at its retail offices nationwide as well as the only face-to-face online preparation through Block LiveSM. Oh, and don't feel too smug if your adult kid hasn't boomeranged on you yet. According to a Twentysomething Inc. poll, 85 percent of 2011 college graduates surveyed said they planned on moving back home with their parents.
Tue, 10 Jan 2012 00:00:00 EST

Energy-Efficient Heating Keeps Cost-Conscious Homes Cozy
(NewsUSA) - With many Americans watching their budgets, heating homes has become an unwanted, though necessary, expense. According to the U.S. Energy Information Administration, many American homes will experience higher heating costs this winter due to increased fuel prices. Thankfully, simple behavior changes and energy-efficient appliances can help homeowners cut their heating bills and still enjoy the same level of comfort. "Energy-efficient heating means that you use less energy to heat the same space," said Phil Weeks, chief operating officer of Rinnai America Corporation, a company that manufactures gas heating appliances. "This saved energy translates into reduced utility costs for homeowners." Some energy-efficient heating devices, like Rinnai's hydronic furnace, which works in conjunction with the company's tankless water heater, can heat a home while still conserving energy. Featuring a high-efficiency motor that offers up to 48 percent better efficiency than a comparable traditional motor, the hydronic furnace is powered by Rinnai's gas-modulating tankless technology, so it uses only the energy needed to maintain a room's desired temperature. Because the unit utilizes hot water from the tankless water heater to heat air, the heat it provides is less dry than that of a typical forced-air furnace. Another efficient heating option is to forego a traditional furnace in favor of a direct vent wall furnace. These ductless units are capable of comfortably heating whole homes or specific zones, depending on the need, and save energy by constantly adjusting heat output and blower speed to meet current demand. Rinnai's gas-modulating direct vent wall furnace also can serve as a supplementary heat source for basements, guest rooms, room additions and generally hard-to-heat areas, thus reducing the demand placed on a home's central heating system. Of course, homeowners can take steps to help their current heating units operate on less energy. Consider the following efforts: * Seal and weather strip doors and windows to prevent heat from escaping the home. * Reverse the direction of ceiling fans (so they turn clockwise) to push warm air down from the ceiling. * Minimize the use of bathroom and kitchen hood fans as they can quickly remove heat from the air. For more information, visit www.rinnai.us.
Wed, 28 Dec 2011 00:00:00 EST

Digital Revolution Yields New Opportunity for Films
(NewsUSA) - Digital distribution revolutionized the music industry to such an extent that it's still reeling from the transformative power of mass downloading. As the music industry adjusts to the rocking changes of the digital wave, the film industry is going through its own set of uncharted waters. Though not without hiccups, digital distribution met widespread success in the music industry. The digital revolution, however, has now shifted focus to the film industry with the dawn of Netflix, digital streaming and video-on-demand. "There's never been a better time to be in the movie industry," says Peter Hoffman, CEO of Seven Arts Pictures. "Large studios are relying on big-budget pictures like 3D titles, but that opens up space for independent studios to work on small-budget films and capitalize on digital distribution." Seven Arts embraced the opportunity afforded by digital distribution and staged a digital release for their most recent comedy, "The Pool Boys." A digital release via on-demand took place just days after the theatrical release. Seven Arts recognized the profitability of electronic delivery and the home-video market. According to the annual Global Entertainment and Media Outlook report, North America expected to $12.2 billion in box office revenue but $27.9 billion in home-video profits in 2011. The home-video market is growing in significance as Blu-ray discs become increasingly popular, ticket prices continue to rise and electronic movie delivery transforms distribution. The Entertainment and Media Outlook estimates an 13.8 percent annual profit growth for electronic delivery. "We're seeing significant market opportunity due to the cutback by major studios on producing small-budget films and the proliferation of digital distribution alternatives," says Hoffman. Digital distribution made CD's practically obsolete, yet a new world of music was born with iTunes, Pandora and Spotify. Who knows what changes the digital revolution shall yield for the film industry? For more information on the changing movie industry, go to www.7artspictures.com.
Tue, 13 Dec 2011 00:00:00 EST

Mega Tent Pole Movies Open Market for Small Studios
(NewsUSA) - The film industry is undergoing an overhaul that is creating excitement throughout. Video-on-demand (VOD) has changed the DVD game, and as a direct result, major studios are focusing exclusively on high-budget films like "Avatar" and "Transformers" to attract the masses. Now, these "tent pole" films are opening new doors for smaller studios. As noted by animation specialist and studio executive Andy Hendrickson, tent pole movies rely on the viewer's obsession with action-packed spectacle as opposed to adept storytelling. But where does that leave smaller-budget pictures? "The industry is saturated with franchises like "Harry Potter" or "Twilight," TV spin-offs like "Sex and the City," not to mention sequels and remakes," explains Peter Hoffman, CEO of Seven Arts Pictures. "However, this shift creates opportunities for smaller independent film studios, like Seven Arts." As is the case with several industries, massive changes can be attributed to the sweeping wave of digital technology. More people than ever are watching movies at home through new digital streams. Big studios see tent pole movies as the strategic way to generate billions in revenues, but the demand for quality, smaller-budget films that focus on characters and plot development can be strong at the box office. "The potential success of small-budget pictures is demonstrated by films like "The King's Speech," "Black Swan" and "The Kids Are All Right," says Hoffman. "But it's now solely up to independent studios, like Seven Arts, to produce plot-driven films that strive for merit in addition to box-office numbers." Tent pole films are the latest trend in Hollywood. And now, smaller film studios are seeing greater commercial success as a result. To learn more about the changing film industry, visit www.7artspictures.com.
Tue, 13 Dec 2011 00:00:00 EST

Hybrid Heat: An Efficient Way to Warm Your Home This Winter
(NewsUSA) - As the cost of fuel continues to rise, homeowners look for more efficient ways to heat their homes. One of the best ways to achieve efficiency, cost-effectiveness and comfort is to use a Hybrid Heat system. Hybrid Heat systems include a heat pump and gas furnace, managed by a compatible control or thermostat. Hybrid heat or dual fuel systems deliver exceptional performance by using a heating source that provides its most energy-efficient comfort during moderate heating conditions. As the temperature drops outside, the system automatically switches to your second heating source when that becomes the most economical way to keep your family comfortable. For instance, the Carrier Infinity Hybrid Heat system includes an Infinity 20 heat pump with Greenspeed intelligence and an Infinity 98 gas furnace with Greenspeed intelligence, managed by an Infinity control. It is more efficient than any gas furnace alone, because it allows the flow between electric and gas heating to optimize the economy of each fuel source. "The rising price of gas and oil has spurred a great interest in alternative heating solutions," says Rob Lambert, product manager and application engineer for Carrier's residential cooling systems. "A Hybrid Heat system allows homeowners to save money on energy costs for years to come, since the system 'balance point' is set to help optimize each fuel source, depending on utility costs and weather conditions in your area." The secret behind a Hybrid Heat system is the heat pump. A heat pump operates as an air conditioner in hot weather but can also reverse the process and heat the home when cold weather arrives. Rather than burning fuel to generate heat, a heat pump moves heat without a flame. Since most heat pumps operate using electricity, it offers homeowners the flexibility and efficiency of electricity as an alternative fuel source. With new technology available in the heating and cooling industry, now more homeowners can take advantage of systems that help them save money and provide home comfort. Visit www.residential.carrier.com for more information on Hybrid Heat systems.
Wed, 30 Nov 2011 00:00:00 EST