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Where to Get Your Annual Credit Report

Jan 29th, 2010
by jblankenship.
2 comments

credit card theft by Don HankinsAs a smart consumer, you have likely heard that it’s a good idea to get your credit report every year from all three services: Experian, Equifax, and TransUnion.  You’ve probably also seen the ever-present “Free Credit Report” commercials on the television (unless you TiVo everything and skip past the commercials!) – so you may be wondering:  is that the place to go to get the credit reports?

While the service in the commercials will likely provide you with the reports you need, since that service is a “for profit” venture, you’re also likely to get more than you bargained for along with your reports.  There are a lot of add-ons that can mysteriously show up, like hidden fees, credit score monitoring, identity theft protection, etc., all of dubious benefit.

The Real Answer

The ONLY authorized source for requesting your credit reports from all three agencies FOR FREE, with no strings attached, is at www.AnnualCreditReport.com.  This source was set up jointly by the three credit reporting agencies in response to the Fair Credit Reporting Act.

Via this service, which can also be contacted by phone at 877-322-8228, or by mail (see the website for the form and address), you are allowed to request your credit report from each agency once every 12 months at no cost.

I have found that the mail option, while decidedly low-tech, is the most pain-free option.  Navigating the online system can get a bit frustrating, especially if you’ve changed addresses somewhat frequently within the previous ten years, since mailing address is one of the important identifying factors.  Unless the system has greatly improved of late, it can cause you some grief.  I have to admit that it has been a few years since I tried to utilize the online order option, though.

The Report

The report you receive will be very detailed regarding your credit history, payment history, and any actions taken with regard to your credit.  It is important to review this information to ensure that it is accurate – if any errors are located, you need to work out resolving those errors with the credit agency and the creditor in question.

You will not, as a rule, receive your credit score when you make this request for your credit report.  The credit score is a separate mathematical ranking of your credit, and this can be purchased from the agencies for a small fee (typically less than $20) when you make your request for the credit report.  If you’re concerned about your score and have not had reason to receive your score in another fashion (such as getting a mortgage), it might make sense to do so, but it’s not a requirement by any means.

Timing of Your Request

Since you have three agencies to work with and 12 months between reports, you have a decision to make:  should you request all three at the same time, or intersperse them throughout the year?

I suppose it really comes down to your situation – if you have a potential credit problem to resolve, I’d suggest getting all three at once, then you can compare them side-by-side as you work out any problems or inconsistencies.

On the other hand if you’re just in a maintenance mode, that is, you don’t anticipate any issues with the report, you might want to set up a schedule and request a report from a different agency every four months.  This way you can constantly monitor your credit to ensure that nothing funky is going on.

Just make sure that you use www.AnnualCreditReport.com, rather than the other, more publicized options.  You’ll be glad you did.

Photo by Don Hankins
Posted on Jan 29th, 2010
by author: jblankenship.

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Posted in: financial planning, Links, rant.
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IRS Guidance Regarding Filing Status

Jan 9th, 2010
by Jim.
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filing statusThe IRS recently issued Tax Tip 2010-03, which provides taxpayers with guidance on determining filing status for 2009 tax returns.  For additional information, you can review IRS Publication 501.  The text of IRS Tax Tip 2010-03 follows.

Eight Facts About Filing Status

Everyone who files a federal tax return must determine which filing status applies to them. It’s important you choose your correct filing status as it determines your standard deduction, the amount of tax you owe and ultimately, any refund owed to you.

Here are eight facts about the five filing status options the IRS wants you to know in order to choose the correct filing status for your situation.

  1. Your marital status on the last day of the year determines your marital status for the entire year.
  2. If more than one filing status applies to you, choose the one that gives you the lowest tax obligation.
  3. Single filing status generally applies to anyone who is unmarried, divorced or legally separated according to state law.
  4. A married couple may file a joint return together. The couple’s filing status would be Married Filing Jointly.
  5. If your spouse died during the year and you did not remarry during 2009, you may still file a joint return with that spouse for the year of death, provided the joint return election is not revoked by a personal representative for the deceased spouse.
  6. A married couple may elect to file their returns separately. Each person’s filing status would generally be Married Filing Separately.
  7. Head of Household generally applies to taxpayers who are unmarried. You must also have paid more than half the cost of maintaining a home for you and a qualifying person to qualify for this filing status.
  8. You may be able to choose Qualifying Widow(er) with Dependent Child as your filing status if your spouse died during 2007 or 2008, you have a dependent child and you meet certain other conditions.

There’s much more information about determining your filing status in Publication 501, Exemptions, Standard Deduction, and Filing Information. Publication 501 is available on IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Posted on Jan 9th, 2010
by author: Jim.

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Posted in: tax.
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2010 IRA MAGI Limits for a Filing Status of Married Filing Separately

Jan 1st, 2010
by jblankenship.
1 comment

elegant tern by mikebaird2010 IRA MAGI Limits for a Filing Status of Married Filing Separately

Note: for the purposes of IRA MAGI qualification, a person filing as Married Filing Separately, who did not live with his or her spouse during the tax year, is considered Single and will use the information on that page to determine eligibility.

For a Traditional IRA (Filing Status Married Filing Separately):

If you are not covered by a retirement plan at your job and your spouse is not covered by a retirement plan, there is no MAGI limitation on your deductible contributions.

If you are covered by a retirement plan at your job and your MAGI is less than $10,000, you are entitled to a partial deduction, reduced by 50% for every dollar (or 60% if over age 50), and rounded up to the nearest $10.  If the amount works out to less than $200, you are allowed to contribute at least $200.

If you are covered by a retirement plan at your job and your MAGI is more than $10,000, you are not entitled to deduct any of your traditional IRA contributions for tax year 2010.  You are eligible to make non-deductible contributions, up the annual limit, and those contributions can benefit from the tax-free growth inherent in the IRA account.

If you are not covered by a retirement plan but your spouse is, and your MAGI is less than $10,000, you are entitled to a partial deduction, reduced by 50% for every dollar over the lower limit (or 60% if over age 50), and rounded up to the nearest $10.  If the amount works out to less than $200, you are allowed to contribute at least $200.

Finally, if you are not covered by a retirement plan but your spouse is, and your MAGI is greater than $10,000, you are not entitled to deduct any of your traditional IRA contributions for tax year 2010.  You are eligible to make non-deductible contributions, up the annual limit, and those contributions can benefit from the tax-free growth inherent in the IRA account.

For a Roth IRA (Filing Status of Married Filing Separately):

If your MAGI is less than $10,000, your contribution to a Roth IRA is reduced ratably by every dollar, rounded up to the nearest $10.  If the amount works out to less than $200, you are allowed to contribute at least $200.

If your MAGI is $10,000 or more, you can not contribute to a Roth IRA.

Photo by mikebaird
Posted on Jan 1st, 2010
by author: jblankenship.

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Posted in: #noTOP, 2010 Tax year, IRA.
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2010 IRA MAGI Limits for IRAs – Single or Head of Household

Jan 1st, 2010
by jblankenship.
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alone with my friend by Jody McNary2010 IRA MAGI Limits for a Filing Status of Single or Head of Household

 

Note: for the purposes of IRA MAGI qualification, a person filing as Married Filing Separately, who did not live with his or her spouse during the tax year, is considered Single and will use the information on this page to determine eligibility.

 

For a Traditional IRA (Filing Status Single or Head of Household):

If you are not covered by a retirement plan at your job, there is no MAGI limitation on your deductible contributions.

If you are covered by a retirement plan at work, if your MAGI is $56,000 or less, there is also no limitation on your deductible contributions to a traditional IRA.

If you are covered by a retirement plan at your job and your MAGI is more than $56,000 but less than $66,000, you are entitled to a partial deduction, reduced by 50% for every dollar over the lower limit (or 60% if over age 50), and rounded up to the nearest $10. If the amount works out to less than $200, you are allowed to contribute at least $200.

If you are covered by a retirement plan at your job and your MAGI is more than $66,000, you are not entitled to deduct any of your traditional IRA contributions for tax year 2010.  You are eligible to make non-deductible contributions, up the annual limit, and those contributions can benefit from the tax-free growth inherent in the IRA account.

For a Roth IRA (Filing Status Single or Head of Household):

If your MAGI is less than $105,000, you are eligible to contribute the entire amount to a Roth IRA.

If your MAGI is between $105,000 and $120,000, your contribution to a Roth IRA is reduced ratably by every dollar above the lower end of the range, rounded up to the nearest $10.  If the amount works out to less than $200, you are allowed to contribute at least $200.

If your MAGI is $120,000 or more, you can not contribute to a Roth IRA.

Photo by Jody McNary
Posted on Jan 1st, 2010
by author: jblankenship.

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Posted in: #noTOP, 2010 Tax year, IRA.
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2010 Year MAGI Limits for IRAs – Married Filing Jointly or Qualifying Widow(er)

Jan 1st, 2010
by jblankenship.
No comments yet

knee joint by mikebaird2010 IRA MAGI Limits for a Filing Status of Married Filing Jointly or Qualifying Widow(er)

Note: for the purposes of IRA MAGI qualification, a person filing as Married Filing Separately, who did not live with his or her spouse during the tax year, is considered Single and will use the information on that page to determine eligibility.

For a Traditional IRA (Filing Status Married Filing Jointly or Qualifying Widow(er)):

If you are not covered by a retirement plan at your job and your spouse is not covered by a retirement plan, there is no MAGI limitation on your deductible contributions.

If you are covered by a retirement plan at work, and your MAGI is $89,000 or less, there is also no limitation on your deductible contributions to a traditional IRA.

If you are covered by a retirement plan at your job and your MAGI is more than $89,000 but less than $109,000, you are entitled to a partial deduction, reduced by 25% for every dollar over the lower limit (or 30% if over age 50), and rounded up to the nearest $10.  If the amount works out to less than $200, you are allowed to contribute at least $200.

If you are covered by a retirement plan at your job and your MAGI is more than $109,000, you are not entitled to deduct any of your traditional IRA contributions for tax year 2010.  You are eligible to make non-deductible contributions, up the annual limit, and those contributions can benefit from the tax-free growth inherent in the IRA account.

If you are not covered by a retirement plan at your job, but your spouse IS covered by a retirement plan, and your MAGI is less than $167,000, you can deduct the full amount of your IRA contributions.

If you are not covered by a retirement plan but your spouse is, and your MAGI is greater than $167,000 but less than $177,000, you are entitled to a partial deduction, reduced by 50% for every dollar over the lower limit (or 60% if over age 50), and rounded up to the nearest $10.  If the amount works out to less than $200, you are allowed to contribute at least $200.

Finally, if you are not covered by a retirement plan but your spouse is, and your MAGI is greater than $177,000, you are not entitled to deduct any of your traditional IRA contributions for tax year 2010.  You are eligible to make non-deductible contributions, up the annual limit, and those contributions can benefit from the tax-free growth inherent in the IRA account.

For a Roth IRA (Filing Status of Married Filing Jointly or Qualifying Widow(er)):

If your MAGI is less than $167,000, you are eligible to contribute the entire amount to a Roth IRA.

If your MAGI is between $167,000 and $177,000, your contribution to a Roth IRA is reduced ratably by every dollar above the lower end of the range, rounded up to the nearest $10.  If the amount works out to less than $200, you are allowed to contribute at least $200.

If your MAGI is $177,000 or more, you can not contribute to a Roth IRA.

Photo by mikebaird
Posted on Jan 1st, 2010
by author: jblankenship.

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Posted in: #noTOP, 2010 Tax year, IRA.
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Review of 2009 Stats

Dec 30th, 2009
by jblankenship.
6 comments

Ed. Note: taking a breather from our normal business of posting retirement, tax and other personal financial planning topics to report on the blog itself and the statistics we’ve seen in this, the 6th year of publication for the blog.  We’ll be back to our regular programming with the next entry. – jb

Over the past year, this blog has undergone a few major changes… I upgraded the format to WordPress; then added the IRA Owner’s Manual, reorganizing all those IRA posts into a coherent manual; a summary, chapter by chapter, of the seminal book “The Richest Man In Babylon”; plus I started writing more – generally adding a new post every other day.

colonels review by J.harwoodPlanned for 2010:  more of all the yummy income tax, IRA, and other retirement-related and investment/financial planning articles that you’ve come to expect; likely a Social Security Owner’s Manual and a 401(k) Owner’s Manual (along the same lines as the IRA Owner’s Manual); guest experts will from time to time contribute posts on areas complimentary to my expertise; and continuing the pace of approximately 175 to 200 posts throughout the year.  Please pass along any suggestions for new topics and series that you’d like to see written up and discussed.

Listed below are the Getting Your Financial Ducks in a Row end of year statistics and Top Ten lists for 2009.  Thanks to all who have supported this blog in 2009 by reading, subscribing, commenting, linking, and not coming right out and booing!

General Statistics for 2009

  • 198 total posts
  • 228 comments & trackbacks
  • 9,386 page views (averaging 26 per day)
  • 105 RSS subscribers

Top 10 Most-Viewed Posts for 2009

  1. The IRA Owner’s Manual
  2. 401(k) & Qualified Domestic Relations Orders (QDRO)
  3. Payroll Tax Reduction (ARRA 2009)
  4. Auto Purchase Incentive (from ARRA 2009)
  5. Separation From Service On or After Age 55
  6. 19 Ways to Withdraw IRA Funds Without Penalty
  7. Determining Your MAGI
  8. Traditional IRA v. Roth IRA – Compare & Contrast
  9. American Recovery and Reinvestment Act of 2009
  10. 401(k) Fair Disclosure for Retirement Security Act of 2009

Top 10 Referrers for 2009

  1. leimbergservices.com/blogwatch.cfm
  2. obliviousinvestor.com
  3. moneysmartlife.com/financial-advisor-…
  4. blogher.com/those-pesky-401-k-fees-yo…
  5. blogcatalog.com/blog/getting-your-fin…
  6. twitter.com/
  7. wohlnerfinancial.blogspot.com
  8. keyfeeonly.com/web-resources
  9. monevator.com/2009/12/12/weekend-read…
  10. dividendsvalue.com/5086/weekly-links-…

Top 10 Search Engine Terms for 2009

  1. qualified domestic relations order 401k
  2. irs life expectancy tables 2009
  3. payroll tax reduction 2009
  4. net unrealized appreciation
  5. payroll tax reduction
  6. 2010 estate tax changes
  7. arra car sales tax
  8. 401k separation from service
  9. 401(k) fair disclosure for retirement
  10. 2010 gift tax exclusion

Top 10 Most Popular Links Clicked in 2009

  1. bfponline.com
  2. badmoneyadvice.com
  3. iraownersmanual.com
  4. irs.gov/publications/p590/index.html
  5. irs.gov/pub/irs-drop/rr-02-62.pdf
  6. blankenshipfinancial.com
  7. carnivalofpersonalfinance.com
  8. money.cnn.com/2009/01/06/pf/funds/etf…
  9. affinefinancial.com/2009/07/09/can-an…
  10. moneyning.com

That’s it for 2009 – Happy New Year to all, and thanks again for all your support! – jb

Photo by J.harwood
Posted on Dec 30th, 2009
by author: jblankenship.

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Posted in: #noTOP, 2009 tax year, Links, software.

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