Expect Tax Refund Delays
In late December 2007, Congress decided to freeze the
expansion of the Alternative Minimum Tax (AMT), an
outdated tax law from 1969. While this was great news for
some 25 million tax payers, the late date of this
congressional action will reportedly create major delays in
the processing of tax returns and, more importantly,
refund checks.
As you might expect, the IRS had already prepared its tax
packages and computer programs to reflect the 2007 tax
year by the time Congress made its decision. Because of
this, the IRS has said that it cannot process certain
AMT−related tax forms until February 11, 2008, which
could result in an estimated 13.5 million refund delays.
The forms are:
· 8863, Education Credits
· 5695, Residential Energy Credits
· 1040A's Schedule 2: Child & Dependent Care Expenses
· 8396, Mortgage Interest Credit
· 8859, District of
If you need advice on how to proceed with your 2007 tax
returns, give us a call. We'll make sure you get the
assistance you need to reach all of your financial goals
and needs.
Frequent "Liar" Programs
On December 31, 2007, United Airlines' Mileage Plus
program slashed its mileage−expiration policy from 3
years to just 18 months, continuing the recent trend begun
by other major airlines, such as American Airlines and
Delta. This means that going forward your miles will expire
after only 18 months of inactivity. To make matters worse,
this change is retroactive. This means that your miles may
have already expired and you don't even know it!
If you're looking for ways to keep your frequent flyer
account active without actually having to fly anywhere,
there are several easy ways customers can do this,
according to United Airlines:
· Use or sign−up for a Mileage Plus Visa credit or debit card.
· Purchase products or services from travel and retail partners.
· Use miles for merchandise, hotel stays, and dining.
· Transfer miles to another Mileage Plus member.
· Donate miles to the Mileage Plus Charity Miles program.
Know the Codes for Big Savings
Each year, more and more people turn to the Internet to
do their holiday shopping, and last year was no different.
According to
over the holiday season alone grew 11% over the
previous year, for a total of $33 billion.
This year, if you're planning to shop online and add to
these incredible figures, do not buy anything without first
checking out RetailMeNot.com, a great website that offers
coupons and promotional codes that could save you big
on the things you were already going to buy. The site
offers more than 50,000 codes and coupons at any one
time, so there's a good chance they can save you money
on whatever you need. Also, be sure to check
out Current−Codes.com and CouponMountain.com,
similar sites also recommended by Kiplinger's Personal
Finance magazine.
Clean Up Your Credit or Forget It
Just when home prices and interest rates are really
starting to look attractive, Fannie Mae and Freddie Mac
announced increased delivery fees and new Loan−Level
Price Adjustments, making credit much more expensive
for potential homebuyers and homeowners looking to
refinance. These increased fees are mandatory and have
nothing to do with your mortgage professional. They are
simply Fannie and Freddie's way of recouping losses
associated with the recent rise in delinquencies and
foreclosures. Under Loan−Level Price Adjustments,
additional costs are assessed to mortgages based solely
on FICO credit score ranges that fall below 680. In the
mortgage industry, this is called risk−based pricing, and it
can really add substantial costs to a mortgage if borrowers
aren't credit ready.
If you or someone you know intends to take advantage of
the low home prices and the lowest mortgage interest
rates in years, please call us right away. We'll get you a
copy of your credit score and see what, if anything, needs
to be done. Sometimes small changes to your credit
profile can yield big results that could save thousands of
dollars on your mortgage. Other times, professional credit
repair may be required, and this process could take up to
six months to reach the scores you need. If you'd like
more information about these new fees or a free copy of
our informative Consumer Credit Scoring Booklet, just
give us a call.
Contributor:
Meghan Knoy
Mortgage Planner
Cherry Creek Mortgage
Phone: (928)925−6082
Toll Free: (866)386−2597
MKnoy@ccmclending.com
www.MeghanKnoy.com
