Howdy, editor Mary Hartney here, posting Brent's entry for Liz, who's on vacation. Brent's almost done with his no-spending month, and it looks like he's going to make it -- at least, as far as the not spending goes. -MH

The end for my No-Buy month is near, and I'm going out with a whimper. I've been sick all week. Outside of soup, I haven't had much of appetite for anything, and I definitely don't want to be around people.

I'm homebound today. I'm guessing it's the Universe's way of keeping me honest these last two days.

My only debate has been whether I want Progresso Garden Vegetable or Chicken Noodle Soup. A sad existence. I wanted to go to Games Night at Ukazoo Bookstore in Towson. Instead, I'll have to come up with activities, which will probably mean me sitting in front of my television.

Anybody out there have any other suggestions for the sick?

Sleep! -MH

Check out other installments of the No-Buy Month spending challenge:

1. No-Buy Month, the 28-day spending challenge

2. Day 5: Rationale

3. Day 9: Withdrawal

4. Day 10: Boredom

5. Day 12: Resolve

6. Day 16: Accounting

7. Day 18: Self-Examination

8. Day 20: Temptation

9. Day 25: A stumble

(photo: Patrick Smith/Baltimore Sun)

Posted by Mary Hartney at 12:56 PM | Permalink | Comments (1)
        

Can airlines be so desperate for revenue that they will charge you to use the toilet during a flight? That certainly would cut down on the demand by travelers for free softdrinks.

Read this report from Shawn Pogatchnik of the Associated Press:

DUBLIN (AP) — Is a bathroom an optional extra when you’re at 30,000 feet? Ryanair boss Michael O’Leary seems to think so — as his no-frills airline contemplates charging customers to use its aircrafts’ toilets.

O’Leary whipped up a frenzy of indignation and potty humor Friday as he suggested that future Ryanair passengers might be obliged to insert a British pound coin before they gain access to in-flight relief. As always, O’Leary suggested a separate toilet fee would lower ticket costs and make flying, somehow, easier for all.

Nobody, even his own aides, seemed to be sure if he was serious or pursuing his well-documented penchant for making brazen declarations to win free advertising.

“One thing we have looked at in the past, and are looking at again, is the possibility of maybe putting a coin slot on the toilet door, so that people might have to actually spend a pound to ‘spend a penny’ in future,” O’Leary said, using a local euphemism for relieving one’s self.

When asked, during an interview on BBC Television, what would happen if a customer really had to go, but didn’t have the correct change, O’Leary dismissed the scenario as implausible. This even though Ireland and most of Europe uses euros, not the British currency, and even on-board attendants often find themselves without the correct change.

“I don’t think there’s anybody in history gone on board a Ryanair aircraft with less than a pound,” he said.

Politicians and analysts agreed that the man who pioneered charging airline customers to check bags, to use a check-in desk, and even to use a credit or debit card to make an on-line booking just might be serious about mile-high toilet extortion, too.

Howard Wheeldon, senior strategist at BGC Partners in London, cautioned consumers that O’Leary might be attempting two for the price of one: Free publicity backed by cut-throat reality.

“This begs a simple question retort of: Is there absolutely nothing that this airline won’t do? Not really, so if you are thinking about flying cattle-class Ryanair in future, beware,” he said.

O’Leary’s own chief spokesman, Stephen McNamara, said his boss often spoke tongue in cheek — but then defended the idea of charging for a toilet as part of a logical trend.

 “Michael makes a lot of this stuff up as he goes along and, while this has been discussed internally, there are no immediate plans to introduce it,” McNamara said, adding, “Passengers using train and bus stations are already accustomed to paying to use the toilet, so why not on airplanes? Not everyone uses the toilet on board one of our flights, but those that do could help to reduce airfares for all passengers.”

Rochelle Turner, head of research at British consumer rights magazine Which? Holiday, said Ryanair had a well-documented practice of “putting profit before the comfort of its customers” — but this one could backfire.

 “Charging people to go to the toilet might result in fewer people buying overpriced drinks on board. That would serve Ryanair right,” she said.

Tommy Broughan, transport spokesman for Ireland’s Labour Party, said the toilet-charge idea had to be taken seriously. He noted that Ryanair last month began threatening customers with euro30 fines if they tried to carry on board a second bag regardless of size — even one filled with a just-purchased item from the airport’s duty-free shops.

“When Ryanair introduced this euro30 extra duty-free charge, many passengers joked that next they would be charged for using the toilet — not realizing that this indeed seems to be the newest extra charge on Ryanair’s agenda,” Broughan said.

Posted by Eileen Ambrose at 12:43 PM | Permalink | Comments (0)
Categories: Airlines
        

If you're trying to stretch your dining-out dollars, Restaurant.com is a great option --- just buy a certificate off the site and apply its value to the price of your meal.

It's an even better option, however, when you take advantage of the 80 percent off coupon code "DINE" for Restaurant.com, which is valid through Feb. 28.

We've told you about Restaurant.com before, but the certificates are good for up to a year, but just be sure to read the fine print and see what you're signing up for -- there are often restrictions about the minimum food purchase and an automatic gratuity applied toward your meal.

Posted by Liz Kay at 6:07 AM | Permalink | Comments (0)
Categories: Cheap/Frugal, Food
        

Target and Amazon are great options for stocking up on a lot of basics --- everything from baby formula to electronics. Erin Huffstetler of the Frugal Living blog has a lot of interesting tips about making the most of savings from these two stores.

We've told you before to stack manufacturers' coupons with Target coupons and sales, there. But did you know you could print out Target coupons from the gift registry kiosk? Or that you could get a $5 off $50 coupon in time for your kids' birthday?

Erin has a load of tips to save on Amazon purchases as well, including the Amazon outlet store and warehouse deals on out-of-box and refurbished merchandise.

Posted by Liz Kay at 6:03 AM | Permalink | Comments (0)
        

Brent returns to admit he stumbled more than once this weekend on his No-Buy Month spending challenge ... and literally paid the price. --- lfk.

I've been slacking this week in my posts, in part, because I've been sick the past few days. I'm back at work and am vowing to finish strong. Only three more days left in my No-Buy month. From now on, I'll update daily, including one that will detail where I go from here.

A quick recap: I did go out Friday night and buy a drink. I limited myself to just one but received two drinks since it was Happy Hour (a great deal).

On Saturday I drove to Gettysburg and did the free auto tour of the Civil War battlefield, then played 80s Trivial Pursuit Saturday night with a few friends. All fun and free.

I did end up spending money Sunday though. An unexpected expense occurred.

I injured my knee playing football that morning and had to go to the doctor for an X-ray.

I paid the $35 co-payment, marking the first time I had to pull my credit card out this month (I use my debit card for groceries and gas). I wanted to get through the whole month without using my credit card, but my knee was causing me much pain, so I had little choice.

Still, 22 days marks a personal best for me. For those of you that use plastic frequently, what's the longest you've gone without flashing that card?

Check out other installments of the No-Buy Month spending challenge:

1. No-Buy Month, the 28-day spending challenge

2. Day 5: Rationale

3. Day 9: Withdrawal

4. Day 10: Boredom

5. Day 12: Resolve

6. Day 16: Accounting

7. Day 18: Self-Examination

8. Day 20: Temptation

(photo: Patrick Smith/Baltimore Sun)

Posted by Liz Kay at 4:09 PM | Permalink | Comments (0)
Categories: Budgeting, Cheap/Frugal
        

Lots of people are trying to save money on home heating bills and lower energy costs, so for this Consumer Web Site of the Week, let's reprise an oldie but a goodie: Energystar.gov's Home Energy Yardstick, which we told you about last year along with energy-saving tips for renters. 

The site asks you to enter information about your home and your utility bills to find ways to make it more energy efficient. And with $1,500 worth of tax credits for energy-efficiency improvements in the stimulus package, this may be the year to take advantage. 

Posted by Liz Kay at 3:12 PM | Permalink | Comments (0)
Categories: Cheap/Frugal, Consumer Web Site of the Week, Energy/Utilities, Greenies
        

Arby's is giving away coupons for a free Roast Burger with the purchase of a drink at participating locations.

Here's the Arby's store locator to find a location near you.

On the other end of the food spectrum, you can sign up for a free Kashi frozen entree coupon through March 15, courtesy of Buxr.  

Posted by Liz Kay at 8:00 AM | Permalink | Comments (0)
Categories: Cheap/Frugal, Food
        

We told you last week to prepare for free pancakes today at IHOP (last item). There's still a few hours left to take advantage of this offer!

Then today I discovered via Consumerist that you could also sign up for a coupon for a free Quiznos sub sandwich in exchange for agreeing to receive marketing e-mails.

And finally, Kmart stores are doubling coupons (up to $2 value) through Sat. Feb. 28 in certain communities. Frugal in Virginia recommends checking your local Kmart circular online to see if the offer is listed. 

Posted by Liz Kay at 4:31 PM | Permalink | Comments (0)
Categories: Cheap/Frugal, Food
        

Cindy Hockenberry, research coordinator with the National Association of Tax Professionals, answers these questions about the first-time homebuyer credit:

Q. Regarding the $250 one-time payment for those on Social Security Disability: If back child support is owed, will this payment be claimed as child support as the 2008 stimulus payment was?

A: Yes. The payments will be subject to the Treasury Offset Program. The law allows an administrative offset of claims by federal agencies. An economic recovery payment isn't considered a benefit payment or cash benefit made under the applicable program. Thus, all amounts paid will be subject to offset to collect delinquent debts (back taxes, student loans, child support, etc.).

Q. My husband and I are in the process of building a house that won't be finished until June. We don't start paying our mortgage until it is finished, but technically we closed in November 2008. Which credit would we be eligible for?

A: You will be eligible for the $8,000 credit. The “date of purchase” for a newly constructed home is the date the home is occupied.

Q. We obtained a construction loan in November of 2008. The modification from construction to a permanent loan will be April 2009. Do we qualify for the first-time homebuyer credit? (We have not owned a home in 3 years.)

A: Yes, provided you occupy the home and use it as your principal residence prior to December 1, 2009.

Q. My wife and I are buying my parents house (at market value). Do we qualify for the $8,000 credit? We're first time home-buyers and within the income qualifications. The $7,500 credit indicated buying from parents/family disqualified you, but I have not seen anything about this with the $8,000 credit.

A: No, you do not qualify for the first-time homebuyer credit. A home purchased from a related party does not qualify for the credit.

Q. I bought a house in May 2008. I was the only name on the mortgage and on the title. A few days after closing the escrow, I added my cousin name on my title as the co-owner just in case something might happen to me. How the first time home buyer credit of $7,500 works on my case? Do I get all of $7,500 or will he get some? (He has owned his house for 5 years). I am the only one making monthly mortgage payment on this house.

A: This home is considered your home. The fact that you added your cousin’s name to the title does not change this fact. The entire $7,500 credit is yours to claim. He does not qualify for any of the credit because this home is not his principal residence.

Q. I'm closing on a house on Feb 24th. I know I get the $8,000 tax credit but I want to know if I can file an amended tax return for 2008 and get the money now. If so, how do I do that?

A. Yes, you can file an amended return for 2008 and claim the $8,000 credit. The credit is claimed on Form 5405.

UPDATED: Don't miss Eileen's other economic stimulus posts, including Q&A on economic stimulus law, more answers to your economic stimulus questions, Economic Stimulus Q&A on $250 payment and other credits and Answers to your economic stimulus questions. 

Posted by Eileen Ambrose at 11:45 AM | Permalink | Comments (2)
Categories: Taxes
        

Consumers continue to wonder why their utility bills are shooting up, in some cases doubling and tripling despite efforts to cut back. So many have complained to the state Public Service Commission that it is reviewing data from each company. A hearing will be held Thursday.

Check out the written responses from the companies on the state Public Service Commission Web site. Here's information from the commission about filing a complaint about high utility bills, including how to request an independent test of your meter (known as a "referee" test").

Representatives from the utilities say that people are using more electricity and gas due to the unusually cold weather and more days at home over the holidays. A longer billing cycle and higher winter rates also contributed to larger bills, they say.

What could you do to lower your energy usage?

Start with energy efficiency, said economist Lester B. Lave of Carnegie Mellon University.

"When the average resident is trying to do something about it, they don’t have the info to know what to do," he said. Lave suggests making changes that don't detract from your quality of life, but may even enhance it.

For example, if there's a draft coming into your home from cracks around windows and doors, you're losing heat and feeling cold, he said. Seal those gaps with caulk or other materials, following these tips from the University of Maine Cooperative Extension.

Also about 15 percent of most bills go toward lighting, he said, so replacing incandescent bulbs with compact fluorescents can really help --- and don't forget you get a discount on CFLs at certain retailers!

For more energy- and money-saving ideas, check out these simple energy-saving tips from Consumer Reports, as well as some higher-cost but higher-impact ideas.

Posted by Liz Kay at 8:28 AM | Permalink | Comments (20)
Categories: Cheap/Frugal, Energy/Utilities, Greenies
        

Buy two books for a penny each at bookcloseouts.com today through Thursday, Feb. 26.

Here's the list of 50 titles available for one cent each, a bargain-basement price. The limit is two books, and you'll have to pay regular (but cheap) shipping charges. I'm seeing a lot of non-fiction but if you're a reader it'd be worth checking out.

Thanks to ConsumerWorld for the tip. 

Posted by Liz Kay at 4:44 PM | Permalink | Comments (0)
Categories: Cheap/Frugal, Shopping
        

We all know by now to pay our credit card bills on time to avoid the banks from jacking up our interest rate or changing the terms on your card.

But where you shop and the foreclosure rate in your neighborhood can also affect the terms on your card, according to CreditCards.com.

The group advises that you pay cash when shopping at discount stores.

“New projection models have banks analyzing where customers shop, as well as card users’ payment patterns. When shopping at dollar stores – especially if it isn’t your norm to do so – using your credit card may make banks wonder why you can’t afford to pay cash,” according to CreditCards.com.

Also, if you have lots of foreclosures in your area, expect higher rates.

“That's because foreclosures also damage the property values of homes around them, making all occupants of high-foreclosure areas less wealthy due to overall reduced home equity,” the group says.

What next?

Posted by Eileen Ambrose at 12:05 PM | Permalink | Comments (0)
Categories: Consumer safety
        

The first-time home buyer credit and the $250 one-time payment for those receiving certain government benefits continue to generate questions.

This batch is answered by Theresa M. Bandell, director of Stegman & Co. in Baltimore:

Q. Can you pay off the $7,500 credit earlier then the 15 years?

A. Because you must accelerate payment if the property no longer qualifies as your principal residence or if you sell the residence, I would assume you would be able to pay the credit back early; however, the Act does not specifically address that issue. It may be addressed through future IRS regulations. The question is why would you want to pay the credit off early since it is an interest-free loan?

Q. My husband is on Social Security Disability and me and the children get a check also. Do we qualify for the $250 one-time payment or just him?

A.  It depends on which type of benefits he is receiving from Social Security. If the disability payments are from the disability insurance program under Title II of the Social Security, only adults are eligible for the $250 payment. However, if the disability payments are under Title XVI, supplemental security income benefits, individuals of any age are entitled to the payment.

Q. On the $8,000 first-time homebuyer credit, can this be applied to a land purchase for a lot to build a house on or must it be an existing home?

A. The credit has to apply to a qualified residence. Since a lot would not meet the requirement of qualified residence, the credit would not be available for the purchase of the lot. I do believe that the credit would be available for the construction of the house as long as it became his principal residence upon completion.

Q. My 40-year-old son lost his home in foreclosure seven years ago. Two years ago, he married a woman still living at home with her mom. When her father died a few years earlier, the mother had deeded the family house to the daughter. No money was exchanged. Now they would like to buy a home. Will they qualify as first-time home buyers in order to take advantage of the $8,000 tax credit? Can part of that credit be taken the next year? Combined income is less than $30,000.

 A. A person does not qualify for the credit if they or their spouse had an ownership interest in a principal residence during the past 3 years. If the wife had an ownership interest in a property but it was not her principal residence for the past three years, for example, it was her mother’s residence and the daughter lived in an apartment for the past three years, she would qualify for the credit. If the wife lived in the family house within the past three years, neither the husband nor the wife would qualify for the first-time homebuyers credit.

UPDATED: Don't miss Eileen's other economic stimulus posts, including Q&A on economic stimulus law, more answers to your economic stimulus questions and Economic Stimulus Q&A on $250 payment and other credits. 

Posted by Eileen Ambrose at 6:37 AM | Permalink | Comments (1)
Categories: Taxes
        

With just over a week to go to his No-Buy Month spending challenge, Brent doesn't think he can avoid socially mandated spending. --- lfk.

A tempting weekend awaits.

I'm going out tonight for a former co-worker's going-away party in Mount Vernon. She's a friend, so I have to go. Good news is, no cover and 2-for-1 drinks. I figure I'll treat myself to one. It's appropriate, I think.

I know technically this is going against the No-Buy, but I also don't believe I can sit in an establishment for hours and not purchase anything. Bar and restaurant owners tend to frown upon that. Of course, I can always count on the generosity of one of my other co-workers to buy me a drink.

Either way ...

As for the rest of the weekend, I plan to brave the cold weather and hike the NCR trail tomorrow. I'll see if my friend Liz is up for a games night tomorrow night. Am I missing any other fun, free activites for Saturday and Sunday?

Folks, I disagree with Brent -- definitely, you shouldn't take up space at a restaurant without buying something. But in this situation, I think the event will draw enough other customers that no one will notice if Brent just drinks water --- and his friends won't tease him because they know about the challenge.

Or, maybe he should buy his friend a drink to congratulate her for finding a new gig in this terrible economy -- and he could keep the free drink #1.

What do you think, and what advice can you offer him for dealing with a situation such as this? 

Be sure to check out all the installments of the No-Buy Month Spending Challenge:

1. No-Buy Month, the 28-day spending challenge

2. Day 5: Rationale

3. Day 9: Withdrawal

4. Day 10: Boredom

5. Day 12: Resolve

6. Day 16: Accounting

7. Day 18: Self-Examination

Posted by Liz Kay at 2:38 PM | Permalink | Comments (4)
Categories: Budgeting, Cheap/Frugal
        

This latest round of answers to your questions comes from Keith E. Huebel of Huebel & Associates CPAs in Bel Air:

Q. I am a first-time home buyer who qualifies for the tax credit on my own. I'm purchasing a house within my means, which would allow for the $8,000 credit. However, my father co-signed on my loan to get a better interest rate, since I am a recent college grad with little credit history. Do I still qualify for the credit, or does my father's owning of a primary residence disqualify me? I will be the only name on the title, but his name will be on the note.

A. The full credit would be allocated to you, the owner.

Q. I keep seeing that people on Social Security Disability will receive $250.00. Do you know when this payment will go out?

A. The stimulus bill instructed Treasury to send the checks ASAP. Unofficial word indicates qualified recipients will receive the payment in late May, 2009.

Q. We install geothermal equipment and I'm receiving information that the $2000 cap on geothermal installation has been removed. Does this mean that 30% of the entire job is now available for a tax credit? Does it include new and retro fit installations? Any info would be appreciated!

A. The $2,000 cap was lifted for qualified property and generally effective for 2009.

Q. If I have a pellet stove insert installed, can I use it for next year's tax write off?

A. If a 2008 install, possibly not. If a 2009 purchase and install, I'm not sure. Proposed legislation spoke of a maintaining a 75% efficiency requirement, which came from a 2005 Act, as well as "all pellet stoves" to qualify. Will need to dig deeper into the conference committee reports to see what made the final cut. Manufacturers should be providing details to retail sites.

UPDATED: Don't miss Eileen's other economic stimulus posts, including Q&A on economic stimulus law and more answers to your economic stimulus questions.  

Posted by Eileen Ambrose at 1:24 PM | Permalink | Comments (4)
Categories: Taxes
        

Constellation Energy, Baltimore Gas & Electric Co.'s parent, announced plans this week to request an increase in BGE's distribution rates for gas and electricity for 2010 as complaints about skyrocketing utility bills continue to pour in, leading state legislators and consumer advocates to call for reregulation of energy markets in Maryland.

According to statehouse reporter Laura Smitherman's story:

"Constellation has not said how much of a rate increase it is seeking, but any increase to the electricity delivery charge is capped at 5 percent under a deal with state regulators. It would be the first delivery rate increase for electricity since 1993 and for natural gas since 2005, according to the company."

Business reporter and columnist Hanah Cho explains it further: 

"BGE charges customers for delivery of electricity and gas. The delivery charge of 2.4 cents makes up 17 percent of the total 14 cents per kilowatt hour that BGE households pay for electricity. The natural gas delivery charge of 34 cents per therm makes up about 25 percent of the total cost of $1.36 per therm.

... While just a portion of the cost that ratepayers shoulder, the move is likely to frustrate BGE customers who have complained about higher bills this season. And Maryland consumers are paying 85 percent more for electricity since the state's power market was deregulated in 1999."

Would re-regulation help? The state Public Service Commission said last year it would cost too much, Smitherman reported. But legislators such as Sen. Thomas M. Middleton of Charles County suggest perhaps regulating only new sources of generation, such as the third reactor proposed for Calvert Cliffs.

Posted by Liz Kay at 10:35 AM | Permalink | Comments (1)
Categories: Energy/Utilities
        

Rite Aid coupons today and tomorrow (Fri., Feb. 20 and Sat. Feb. 21), courtesy of Money-Saving Mom!

Save $10 off $30 of any Rite Aid purchases, except stuff like prescriptions and gift cards. Apparently it's Customer Appreciation Week, or Month.

Loyal reader Evan told us about a similar deal two weeks ago, but  we only put it out over the Consuming Interests Twitter feed. Don't forget to follow us in the widget on the right-hand rail for additional tips.

Posted by Liz Kay at 10:12 AM | Permalink | Comments (1)
Categories: Cheap/Frugal, Shopping
        

Questions about the new tax credits, particularly the $8,000 first-time homebuyer credit, continue to pour in.

Bob D. Scharin, Senior Tax Analyst from the Tax & Accounting business of Thomson Reuters, answers this latest round of queries:

Q. Do we know yet how we claim the $8,000 first-time homebuyer’s tax credit? Are they going to make up a special form like they did for the $7,500 credit last year? Any idea when that form will be available?

A. Form 5405 was issued to claim the up-to-$7,500 credit. I have not yet heard how taxpayers should report homes purchased in 2009 that qualify for the up-to-$8,000 credit. Because first-time homebuyers can treat a credit-eligible purchase made during 2009 as being made on December 31, 2008 (and thus eligible for claiming a credit on the 2008 return), guidance needs to be issued quickly. I assume the guidance will direct homebuyers to use the existing 2008 version of Form 5405, but provide instructions for completing it using the revised tax law (e.g., an $8,000 credit maximum). The form already has a checkbox for taxpayers to indicate that they are completing the form for 2009 purchases. Of course, taxpayers should wait for word from the IRS and not rely on assumptions. This does create the problem of delaying a homebuyer’s ability to file his or her tax return and get the refund that can be spent to stimulate the economy.

Q. Will the self-employed receive any type of Stimulus Bill payment?

A. Self-employed individuals are entitled to the same type of “making work pay credit” as are employees. This credit is 6.2% of earned income, up to a maximum credit of $400 ($800 on a joint income tax return). In general, the term “earned income” includes self-employment income. (An exception applies to net earnings from self-employment that are not taken into account for computing taxable income.) Credit eligibility begins to phase out when modified adjusted gross income exceeds $75,000 ($150,000 on a joint return). This modified adjusted gross income could be derived from wages, self-employment income, investment income, or other sources.

Q. I am 61. Retired. NO earned income. Too young for SS. Have a private pension which I pay tax on. What would my rebate be?

A. Unfortunately, your situation appears to fall between the cracks of two types of benefits in the new law. 1. If you have no earned income, you will not be entitled to a “making work pay credit.” This credit loosely takes the form of refunding Social Security tax payments. Because you are not currently making that kind of tax payment, the credit is not designed to offer a benefit for you. 2. The $250 economic recovery payment is available to only those who are eligible to receive Social Security, railroad retirement, veterans, and supplemental security income (SSI) benefits.

Q. Is the $1,500 energy-related tax credit available for each of years 2009 and 2010, or is it a maximum credit for 2009 and 2010 combined?

A. The aggregate nonbusiness energy property credit allowed to a taxpayer for 2009 and 2010 may not exceed $1,500.

Q. I am married but also a first-time buyer. I did closing on 01/21/09. My Mother co-signed for me on a house. She is the co-borrower. Would I qualify for the ($8,000) tax credit?

A. This query raises too many questions for me to provide a response. For instance, is the mother a co-owner of the house? If so, will she be living there? Is the reader’s spouse a first-time homebuyer?

Q. I took the $7,500 credit this tax year for my home purchase, and I understand that I must repay it over 15 years. However I do not understand what happens if I sell my house in the next 15 years. Must I repay it at closing? I doubt I will want to be here 15 years this is my first home.

A. If you sell the home before you completely repay the credit, any remaining credit repayment amount is due with the tax return for the year in which the home is sold. The credit repayment amount, however, cannot exceed any gain you receive from the sale of the residence to an unrelated person.

Q. We obtained a construction loan in November of 2008. The modification from construction to a permanent loan will be April 2009. Do we qualify for the first-time homebuyer credit? (We have not owned a home in 3 years)

A. The effective dates in the law refer to when the principal residence was purchased. Furthermore, the statute states, “A residence which is constructed by the taxpayer shall be treated as purchased by the taxpayer on the date the taxpayer first occupies such residence.”

Posted by Eileen Ambrose at 6:45 AM | Permalink | Comments (27)
Categories: Taxes
        

Free bourbon tasting tonight, from 5:30 p.m. to 7:30 p.m. at The Wine Source in Hampden. Somebody go and report back.

And this one comes courtesy of the Downtown Partnership: both the National Aquarium and the Maryland Science Center discount admission to $8 after 5 p.m. on Fridays. Admission to the Maryland Science Center includes the planetarium, but on Fridays it also includes the IMAX Theater, which usually requires a separate purchase.

Both locations close at 8 p.m. 

And planning ahead ...

(photo: Algerina Perna/Baltimore Sun)

... schedule some free pancake time on Tuesday, Feb. 24 for IHOP's commemoration of National Pancake Day. It's Fat Tuesday, so a great time to indulge.  

Get a free short stack from 7 a.m. to 10 p.m. That day the chain will be accepting donations to the Children's Miracle Network.

I discovered this deal via the Baltimore Dining Examiner. Don't miss other Baltimore dining deals compiled by Elizabeth Large of dining@large fame.

Posted by Liz Kay at 4:39 PM | Permalink | Comments (0)
Categories: Cheap/Frugal
        

When does the Hope Scholarship expanded credit kick in? What energy-related credits are available? Will I qualify for the first-time homebuyer credit if I get a raise?

These are some of your questions about the new economic stimulus package. The answers to these and other questions are provided here by Steve Albert, director of taxation, and Sam Cohen, senior tax manager, with Glass Jacobson in Owings Mills.

Q. Does this expansion to the Hope Credit (up to $2,500) apply to the '08 tax returns or to the '09 returns? If '08, will they be re-printing the Form 8863 revising to the $2,500 max credit?

A. The credit does not apply to 2008, only 2009-2010.

Q. I currently make just below $75,000 a year. However, around August of 2009 I'm expecting to be bumped above the 75K salary. Two questions: If I purchase a home before November of ’09, can I claim the $8,000 credit for tax season 2009 even though my salary increased during the year? Any definitive last day a first-time homebuyer must purchase a house to claim the credit on 2008?

A. There are a few changes to the first time home buyer credit in the package:

— the credit was increased from $7,500 to $8,000

— recapture does not apply (previously, the credit had to be paid back over several years, now the home buyer does not have to pay it back)

— the credit was extended from July 1st, 2009 through Nov. 30, giving homebuyers another 6 months. However, the credit starts to phase out once adjusted gross income reaches $75,000 for singles, and disappears once income tops $95,000. So, it sounds like this person will qualify for something, just not the full $8,000 credit. Unless he’s getting over a $20,000 raise!! Without knowing what the new salary will be and the new AGI, I can’t say how much of the credit he/she will qualify for.

Regarding the second part of the question, the credit can be taken on your 2008 tax return.

Q. Any there any energy-related tax credits for homeowners in the new stimulus bill? ...

... Our very old house has no insulation in the walls and our gas bill is too high. We got an estimate for the blow-in type insulation last year, but it was very expensive so we decided to hold off. Maybe this is the year to go ahead and do it. 

A. The personal property energy credit was improved in the stimulus package. Previously, a household was eligible for 10% of the investment in energy efficiency improvements, up to a $500 lifetime credit. In 2009 and 2010, household are now eligible for 30% of the investment, up to $1500. This is still a lifetime credit (so if the household has qualified before, for the $500 or less, they still can qualify for the $1500 less the amount previously claimed). So, “yes” to the asker of this question, now (2009 or 2010) is a good time to install your installation!

Q. I bought a house on March 28, 2008 and that is when we signed the papers, but it was recorded in the courthouse on April 18. Do I still qualify for the new homebuyer credit?

A. The date that matters here is the settlement date. The credit applies to first-time buyers who settled on their home after April 8th, 2008 (the start of this program). When did this person settle on their new home?

Posted by Eileen Ambrose at 11:30 AM | Permalink | Comments (2)
Categories: Taxes
        

Harford County residents will get Verizon FiOS, now that the county council has approved a 15-year franchise.

According to The Sun's story, some areas near Aberdeen can sign up for the television and high-speed Internet service as soon as April, but it's going to take some time to wire the rest of the county: --- one to three years before service is available for Bel Air and Abingdon zones, and then five years for the Edgewood and Havre de Grace zones and seven years for the Jarrettsville and Winters Run zones.

Posted by Liz Kay at 10:39 AM | Permalink | Comments (1)
Categories: Cable/Satellite/TV/Comcast/FiOS
        

Some of your questions about the economic stimulus package have been forwarded to Mark Luscombe, principal federal tax analyst with CCH, the group that publishes tax books used by professionals. Here are his answers:

Q. Was laid off in Dec. & must decide on COBRA this month. How would the stimulus subsidy affect me? Would I have to pay 2-3 months of full cost (back to 1/1/09)? Any info or helpful websites appreciated.

A. The COBRA premium subsidy begins in the period of coverage beginning after the date of enactment (February 17). Therefore, if the period of coverage is monthly, it would begin in March, 2009. A terminated employee is entitled to the premium subsidy unless they affirmatively elect out. A terminated employee might elect out if their income was too high to be eligible for the subsidy and did not want to be subject to a recapture tax.

Q. Hi, my son and his wife owned a condo together which they sold in 2007 as part of a divorce. My son, as an individual, bought a house where he is stationed in the army in his name only. Do you think he could qualify as a first-time homebuyer since he bought this house by himself rather than in joint name? This is just a shot ... he could use the credit.

A. No, he would have had an ownership interest in a residence in the last three years.

Q. How does the Make Work Pay stimulus work for the unemployed? Will we still get the full benefit off at tax time next year?

A. An individual with no earned income would not be entitled to the Making Work Pay Credit.

Q. I closed escrow on my home Jan 16, 2009. I am a first-time homebuyer. I received the $7,500 tax credit that has to be paid back but I am eligible for the 8000 tax credit that doesn't have to be paid back. Do I file an amended return so that I get the extra $500 and so that I don't have to pay it back?

A. It sounds like a 2009 purchase was claimed as a credit on the 2008 return. If you claim the credit on the 2008 return, it appears the way the law is written that you can only claim a $7,500 credit. If you amended your 2008 return to drop the credit, and claimed the credit on your 2009 return, you could claim the $8,000 credit.

Q. My boyfriend owns the home that we have both lived in for the past 5 years. I have no ownership in the home and have never bought a home. We just purchased a home together with me as first-time buyer. I am going to live in the home. He makes too much to qualify for the credit, but I do not. Will I be able to get the whole $8,000 or only half?

A. Since it appears that they are not married, the boyfriend’s ownership of the home should not prevent her from qualifying for the credit. The IRS says that the two can allocate the credit between themselves in any reasonable manner as long as the total does not exceed $8,000. It would appear, therefore, since the boyfriend does not qualify for the credit, that the writer could be allocated the entire $8,000 credit, assuming that the IRS considers that a reasonable manner of allocation.

Posted by Eileen Ambrose at 6:56 AM | Permalink | Comments (6)
Categories: Taxes
        

Only 10 days left of my No Buy month. And I'm thinking about what's next.

Maybe I'll adopt a full-time frugal lifestyle. Doesn't seem as though I'd be the only one. With the economy in the tank, there are plenty of opportunities for low-cost spenders to have a good time, including a show Friday at the Hippodrome sponsored by Jack Daniel's (for all you drinkers out there). The skinny on this is at the end of the post. 

On the other end of the spectrum -- The United States Conference of Catholic Bishops (USCCB) "For Your Marriage" Web site offers ten suggestions for cheap, romantic dates, from planning an indoor "picnic" to "midnight bowling." I'm not sure the bishops are experts on how to get women, but still.

As for me, the first thing I'm going to cut back ...

... will be my cable bill, which hit an all-time record of $188 this month (I have the overpriced Comcast Triple Play). The bill was about $35 more than normal because it looks like Comcast is forcing me to pay separately for my HBO and other premium channels now after having those stations included in the package for my first year.

Frankly, I'm not sure why I have cable anyway. I'm not home enough to take advantage, and if I had any sense, I'd just keep my home Internet and get the most basic of landline telephone services. I sometimes go days without even turning my TV on. Anybody forgo cable service or any other luxuries during this economic downturn?

As for the event at the Hippodrome:

WHAT: Jack Daniel's Art, Beats + Lyrics

WHEN: Friday, Feb. 20, 7:00 p.m. to 12:00 a.m.

WHERE: the Hippodrome, 12 N. Eutaw St., Baltimore

TICKETS: Complimentary at www.jackdaniels.com/abl Must be 21 years or older

Be sure to check out all the installments of the No-Buy Month Spending Challenge:

1. No-Buy Month, the 28-day spending challenge

2. Day 5: Rationale

3. Day 9: Withdrawal

4. Day 10: Boredom

Posted by Liz Kay at 4:08 PM | Permalink | Comments (1)
Categories: Budgeting, Cheap/Frugal, Shopping
        

Introducing a new feature: Don't Waste Your Money, where we will occasionally chronicle the most ridiculous products available for sale. (Snuggie, anyone? Or perhaps you already wear your bathrobe backwards?)

Feel free to send us your suggestions and welcome guest writer Jill Rosen as she considers a new version of a toy that seemed just fine in its original form.

In a queasy economy that has families learning to do without and retailers struggling to appeal to people’s newly practical instincts, one company is swimming obliviously upstream.

The maker of the Rubik’s Cube, one of the most iconic toys of the 80s, is coming out with a "touch" version — a game exactly like the old-school plastic square except instead of twisting it by hand, you move the pieces with a brush of your fingertip, as if you were making an iPhone call.

And instead of it being a stocking-stuffer, the new toy is somehow a near-luxury item.

According to a glowing release from maker Techno Source, Rubik’s TouchCube debuts at the American International Toy Fair this week. The company boasts they’ve had people working on the electronic edition for the last three years "with engineering teams on two different continents." They call it "the dream cube."

Said dream cube features such nifty advances as ...

... touch-sensor technology on all six sides, colored lights on every square and even the ability to mimic the scratchy "classic sound" of the original toy.

All this for the not-so-dreamy price of $149.99.

Or, you could save $139.99 and create that "classic sound" with, you know, the "classic toy."

UPDATE: Can't afford the classic or improved Rubik's? Play with a Rubik's Cube online for free. 

Posted by Liz Kay at 12:54 PM | Permalink | Comments (0)
Categories: Cheap/Frugal, Shopping, Technology
        

Maryland residents can review their credit reports from each of the three credit reporting bureaus twice a year. But what about the other organizations keeping tabs on your habits, including your insurance claims, your employment record and your rental history?

Under the Fair Credit Reporting Act, you're entitled to not only the credit reports but also other specialty reports, about your check-cashing history, your personal medical history if you have private insurance and other information. Details from these reports can affect whether you're approved for an insurance policy, the premium you're charged, your chances for getting a job or even a new lease on a home or apartment.

To check for errors ... 

... LexisNexis's ChoicePoint will give you one free insurance, employment and rental history report each year. The key here is that they'll only have reports on you if a ChoicePoint customer ordered one.

The Privacy Rights Clearinghouse has compiled instructions for reviewing your check-writing history, your medical and prescription drug history (if you've had private medical insurance) and other reports (discovered via Consumerist).

So when to order a specialty report? Before buying new insurance premiums or applying for new jobs, definitely. If you have been denied insurance or a job as a result of information within these reports, you're entitled to free copies, as well.

Posted by Liz Kay at 10:59 AM | Permalink | Comments (0)
Categories: Cheap/Frugal, Consumer Web Site of the Week, Credit reports, How To, Identity theft, Insurance
        

Lots of questions about the new economic stimulus law. I posed some to tax professionals. Here are your questions, and their answers.

Q. Regarding the first-time homebuyer credit: If a couple is married and one spouse does qualify for a first time home buyer credit, but the other spouse does not qualify for the credit because he already bought and sold a house year’s ago, is there any credit available to the couple? For example, the husband bought and sold a condo a few years ago before he was married. Only his name was on the condo. His wife has never bought a house before. If the couple is buying the house together, is their any tax credit available to them?

A. Both spouses must meet the qualifications for either to get any tax benefit associated with this credit, says Mark Steber, Vice President of Tax Resources for Jackson Hewitt Tax Service. A "first-time homebuyer" is any individual (and spouse if married) who had no present ownership interest in a qualifying principal residence during the 3-year period ending on the date of purchase of the principal residence for which a first-time homebuyer credit is being claimed.

Q. The Making Work Pay credit is worth up to $800 per married joint filers. What if one spouse is unemployed? Does the couple still get $800? A. Eligible Individuals may receive a credit of 6.2% up to $400 ($800 if married filing jointly) of their earned income for tax years 2009 and 2010.

Individuals must have earned income from wages or self-employment, Steber says. Combat pay is considered earned income for purposes of calculating this credit.

Q. Will you have to file a tax return to get the $250 credit for Social Security beneficiaries?

A. Consumers do not have to file a tax return to get the credit, Steber says. This payment will come from the Treasury Department who will get the information from the Social Security Administration, the Railroad Retirement Board, and the Veteran’s Administration. Eligible individuals only need to have received a payment of any type of Social Security or Railroad Retirement benefit, Supplemental Security benefit, or Veteran’s Disability compensation or Veteran’s Pension benefit during the three month period directly preceding the signing of the bill.

Q. COBRA provisions: The government will subsidize 65 percent of the premiums for workers through a tax credit to employers. Is this provision voluntary for employers, or must they offer this to ex-workers?

A. They must offer it to all employees and ex-employees that qualify, Steber says.

Q. Do you have to buy an American-made car to get the sales tax deduction for new car purchases?

A. There’s no stipulation that the vehicle has to be American made, say the tax experts from CCH, an Illinois provider of tax information. Our Law and Explanation book states: “A qualified motor vehicle is a passenger vehicle, light truck, or motorcycle that has a gross vehicle weight rating of 8,500 pounds or less, or a motor home of any gross vehicle weight.”

Q. I had read somewhere something in the package about some sort of tax credit for existing home owners allowing us to take advantage like a first time home buyer. Is this true and if so, do you know what the tax credit would be and when we’d be able to use the credit, this year or next?

A. What the reader probably has in mind is not a credit, but an additional deduction taken after the standard deduction on your tax return, according to CCH tax experts. It allows non-itemizers to deduct up to $500, or $1,000 on a joint return, for state and local real estate taxes you paid in 2008. The deduction will also be available for the 2009 tax year.

Posted by Eileen Ambrose at 6:58 AM | Permalink | Comments (9)
Categories: Taxes
        

The president is about to sign the economic stimulus legislation.

For much of the morning and early afternoon, I’ve been answer readers’ questions about the tax breaks in the package. Some I can answer. For questions that are a bit more complicated, I’m lining up tax experts to answer them. So, here are some questions and answers we have so far. We’ll post others as they come in.

Q. I’m retired and receive two monthly checks in from pensions and a monthly social security check. All told, they amount to a relatively fixed income which seems to be eroding each year. Is my monthly pension income considered ‘earned income’? What should I expect from the $787B recently approved as a stimulus?

A. No, your pension won't be earned income. You can expect to get a one-time payment of $250. Whether you benefit other ways, such as getting an energy tax break for improving the energy efficiency of your home, depends on your situation.

Q. Any there any energy-related tax credits for homeowners in the new stimulus bill ? Our very old house has no insulation in the walls and our gas bill is too high. We got an estimate for the blow-in type insulation last year but it was very expensive so we decided to hold off. Maybe this is the year to go ahead and do it.

A. Yes, there are. For adding insulation and eco-friendly windows, there is a maximum $1,500 credit available this year and next.

Also, this info from CCH, a company that provides tax information: “The stimulus contains a number of energy-related tax provisions. Among them is removal of dollar limitations on credits for certain small wind property, solar water heating and geothermal heat pumps credits. All would be eligible for an uncapped 30-percent credit. The legislation extends the tax credits for improvements to energy-efficient existing homes through 2010 and increases the credit from 10 to 30 percent. It also extends a credit for electricity produced from renewable sources, such as biomass, solar and wind – through 2012 for wind power and 2013 for other types.”

Q. We bought a home on January 16, 2009 and have already collected the $7,500.How do I receive the additional $500?

A. From the tax experts I spoke with, you will have to file an amended return.

Q. Does one have to be working to get the $400 payment or can pensions/social security suffice for the retired person? Regarding your mention of a $250 payment for the persons not eligible for the Making Work Pay credit, would they not be eligible because their income is too high or for other reasons?

 A. Making Work Pay credit is for those who work. It is to help offset some of the Social Security taxes that low- to middle-income workers pay. The $250 one-time credit is giving something to retirees who don't get the work credit. There is no income limitations for retirees, say, the have income from pensions or investments.

Q. I’m not seeing much commentary online as to whether or not the final stimulus bill makes the removal of the repayment penalty on the first-time homebuyer ‘credit’ retroactive. Meaning, if you bought in the later part of 08 and took the $7,500 credit on your ’08 return, does this bill nix the fact that it’s basically a 15 year, no-interest loan?

A. If you bought a house in 2008, you have to repay the credit. The credit that doesn't have to be repaid applies only for purchases this year through the end of November.

Q. Will the income tax be reduced in accordance with the payroll withholding tax reduction so people will not be put in a situation where they might owe tax at the end of the year because they did not pay enough?

A. It should. The government is going to be issuing new tax withholding tables for your employer.

Posted by Eileen Ambrose at 3:06 PM | Permalink | Comments (42)
Categories: Taxes
        

Here's an article from Newsday's Patricia Kitchen on changes in FICO scores:

As of Saturday, one of the three major credit reporting bureaus -- Experian -- will no longer allow consumers direct access to their FICO credit scores, this at a time when money is tight and lenders are putting even more stock in those scores.

Experian’s move “is a huge problem” for consumers, said John Ulzheimer, president of consumer education at Credit .com, an education site. “Experian is taking us in the wrong direction. ... We don’t need less access. We need more access.”

The scores are based on data in consumers’ credit reports. Consumers are advised to compare data in their reports from the three bureaus, and if there are no major discrepancies, then it’s likely the variation between credit scores will be minimal, Ulzheimer said.

The FICO score “is by far the most popular available for lenders to evaluate credit histories,” said Gerri Detweiler, credit adviser with Credit.com. The other two major reporting bureaus, TransUnion and Equifax, will still allow consumers to purchase their FICO scores.

While consumers are entitled by law to see credit reports for free at least once a year, that is not the case with credit scores. Experian’s move was based on a disagreement over terms with Minneapolis-based Fair Isaac, which developed the FICO scoring method, said a spokeswoman.

But lenders look at many other scores besides FICO, said Peg Smith, executive vice president for California-based Experian.

The office of New York State Attorney General Andrew Cuomo said it will look into the matter.

FICO scores from the three bureaus often vary by 10 to 20 points, said Steven A. Precht, director of housing counseling at SafeGuard Credit Counseling Services Inc. in Hauppauge. To discover and correct problems, it’s more important than ever for consumers to monitor data in their credit reports, especially Experian’s, said Carolyn McCormack, director of education at SafeGuard. To access credit reports, see annualcreditreport.com.

Posted by Eileen Ambrose at 1:31 PM | Permalink | Comments (4)
Categories: Personal finance
        

Just a mid-morning reminder to pick up some Forever stamps the next time you're at the post office.

Postal rates will increase on May 11 by two cents, to 44 cents.

However! As we've told you before, Forever stamps will be honored no matter how much you paid for them originally, and they will only cost 42 cents until the May increase takes effect. 

Just FYI for any travelers: postcard prices will also increase, to 28 cents.

Posted by Liz Kay at 11:02 AM | Permalink | Comments (1)
Categories: Cheap/Frugal
        

Don't fear that the recent bankruptcy filing of the Peanut Corp. of America, the Lynchburg, Va.-based company accused of distributing peanut products tainted with salmonella, will get away too easily.

Filing for Chapter 7 bankruptcy protection may shield them from litigation from the families of the nine people who died as a result of the outbreak, or the hundreds others who became sick.

But there remain some tools in the arsenal ... 

... according to the Associated Press.

Peanut Corp. officials could face criminal prosecution, according to food safety lawyers contacted by the AP. The FBI has raided the plants in Georgia and Texas that were found with salmonella contamination.

Of course, the story also points out that there haven't been many arrests in similar cases: 

"Prosecutions in such cases are fairly rare, and they generally lead to fines against companies rather than jail time or other punishments for individuals. Recent convictions include the 1996 case against juice-maker Odwalla Inc., which was fined $1.5 million on charges of shipping unpasteurized apple juice that killed a baby. Five years later, Sara Lee Corp. was fined $200,000 after pleading guilty to misdemeanor charges of selling tainted meats in a listeria outbreak that killed 15 people.

Other, more high-profile outbreaks haven't yielded criminal charges. Prosecutors decided not to press charges against two produce companies involved in a 2006 tainted spinach case that killed three people and sickened 200 others, saying the investigation found growers and processors did not deliberately skirt the law."

The Consumers Union sees this as evidence that we need a stronger Food and Drug Administration:

“It is unacceptable for corporations to put consumers' health at risk, and then simply declare bankruptcy and go out of business when they get caught,” stated Jean Halloran, Director of Food Policy Initiatives at Consumers Union, publisher of Consumer Reports. “We must have an FDA that can oversee food processors so that unscrupulous behavior can be detected, prevented and deterred.”

(photo: Associated Press)

Posted by Liz Kay at 8:15 AM | Permalink | Comments (0)
Categories: Consumer safety, Naughty businesses/NBotW
        

Are you skipping the salon because of the recession?

If so, you're not alone --- many people are stretching out time between touching up hair color or going the DIY route to try to save money. Others were searching out coupons or considering alternatives, such as highlighting only part of their hair, to save. 

On the other hand, some women I talked to said that a regular visit to the salon was an investment in their professional appearance that was worth sacrificing elsewhere in the budget --- going to the movies, for example, or other entertainment.

Brent, in the midst of his No-Buy Month, stated that he would continue to get his twice-a-month cuts at the barber.

When push comes to shove, what expense goes on the chopping block? Are you performing more beauty rituals yourself, and saving for a rainy day? If not, where else are you trying to save?

(photo: Monica Lopossay/Baltimore Sun)

Posted by Liz Kay at 1:57 PM | Permalink | Comments (5)
Categories: Cheap/Frugal
        

In the middle of his No-Buy Month Spending Challenge, Brent looks back to see how far he's come. --- lfk.

I'm past the halfway point. Seems like a good time to take inventory.

Since I didn't realize I'd be doing a No-Buy month before the first day of February, it's hard to get an accurate account of just how much I'm saving. I do know that I haven't been to an ATM yet this month, and I usually average at least one trip a week at $80 a pop. When I go out to dinner or drinks, I tend not to use charge cards if possible. So I'd say at the minimum, I'm up at least $160. It's fuzzy math at its best, but there is no question I've saved into the hundreds from what I normally spend two weeks into a month.

(Wait a minute. I had a question about it, because remember back when Brent said he spent $140 on groceries at the beginning of this endeavor? 

Well, he estimates he probably spent about $50 more than usual (the man apparently stocks Cream of Wheat regularly). So, let's correct the record to state he saved *at least* $100, perhaps a little more, thanks to this spending fast. 

My friend and co-worker Anica hosted a games night this past Friday, where I scarfed down some tasty vegetarian chili and other treats, and then played a round of Apples to Apples. I hit the daily double -- food and entertainment without having to reach for my wallet once.

I spent the rest of the weekend at a leadership conference in Silver Spring. The sessions were all day Saturday and Sunday, and we were provided lunch and dinner. I get one more free lunch today from the conference before I have to fend for myself for dinner tonight.

I kept my wallet in my pocket all weekend, quite a comforting feeling. Try it -- what's the longest you've gone without spending cash or using your charge card?

Here are other posts in this series about the No-Buy Month spending challenge:

1. No-Buy Month, the 28-day spending challenge

2. Day 5: Rationale

3. Day 9: Withdrawal

4. Day 10: Boredom

5. Day 12: Resolve

(photo: Elizabeth Malby/Baltimore Sun)

Posted by Liz Kay at 10:56 AM | Permalink | Comments (1)
Categories: Cheap/Frugal
        

The $8,000 tax credit for first-time homebuyers and the new-car tax credit led to lots of questions from readers last week, so check out Eileen Ambrose's Sunday column this week for great answers to those and some other details of the stimulus bill passed last week.

The credit, she explains, is

" ... a revision of one passed last year that was worth 10 percent of the home's price --- not to exceed $7,500 --- on purchases from April 9 last year through June 30 this year.

The catch: The credit was really an interest-free loan that must be repaid over 15 years. The new and improved credit is worth up to $8,000 on purchases made this year through Nov. 30. You won't have to repay the credit as long as you don't sell the house within three years.

That "first-time homebuyer" label is a little loose, however ...

... you would qualify if you haven't owned a home in three years.

There's also important benefits for the unemployed, Eileen writes. If you lost your job after Sept. 1, your first $2,400 of unemployment benefits in 2009 won't be subject to income taxes. Plus, the government will subsidize employer payments of COBRA health benefits for up to nine months.

Check out lots more interesting details in Eileen's column.

Watchdog explores taxes, too, but in a slightly different direction. We investigated reports that some Baltimore city property owners received tax sale notices even though they had paid their property taxes.

It turns out that due to a processing error, some payments had been credited to the wrong account. According to the city's Bureau of Revenue Collections, they've identified all 250 properties that were affected.

However, if you received such a notice and think it's an error, you can fax your proof of payment to the tax sale office at 410-783-0407, with the property address and a phone number, or mailed to Bureau of Revenue Collections, Finance Department, 200 Holliday St., Baltimore 21202.

Posted by Liz Kay at 8:05 AM | Permalink | Comments (0)
Categories: Taxes, Watchdog
        

AARP Tax-Aide centers are open. They provide free tax preparation for low- to middle income consumers, particularly those 60 and up. You must make an appointment.

Also, AARP is holding Maryland Tax Day on Feb. 28, where you can get your returns prepared on a first-come, first-served basis. You can check the AARP Tax-Aide site for centers near you. Or, call toll free 1-888-227-7669.

Posted by Eileen Ambrose at 1:02 PM | Permalink | Comments (0)
Categories: Taxes
        

Cheap, last-minute Valentine's Day gifts can still be had! Do not lose hope, all ye procrastinators!

I'm sure you already perused our Valentine's Day deals from last week, but here is advice for buying roses for your boo. Remember, the long-stemmed bouquets will be pricey due to demand, but shorter stems or mixed bouquets may meet muster.

Brent, in the middle of his No-Buy month, alluded to purchasing the components for some homemade Valentine's Day treats. Clearly he doesn't want to give away his secrets, but something handmade, like a chocolate lava dessert, would score brownie points (so would brownies).

At this late date, you won't have an easy time finding a restaurant reservation at a reasonable hour for tomorrow night, but you'll probably save more making dinner yourself. If you want to try  your luck, Elizabeth Large of dining@large suggests 10 inexpensive romantic restaurants. Also Sam of the Midnight Sun blog assembled a list of Valentine's Day dates for under $50.

Here are Valentine's Day gift ideas for women and gift ideas for men assembled by our crack multimedia team, who scoured the Interwebs just to inspire you.

NotableM suggested penning a heartfelt note to your significant other. Sincerity is the key, here --- and that's something Hallmark can't sell you. 

You could also consider planning the gifting strategically ...

... for maximum impact. I learned after sending flowers to my sister at work once that the gift's value far exceeded the price, because it alerted all her co-workers about her birthday --- additional bang for the buck.

Here's the thing with Valentine's Day marketing ... so often retailers try to steer people (okay, men) toward terribly expensive gifts that aren't very personal. With Christmas, birthdays or any other occasion, the goal is to find a gift that demonstrates you know the person well.

Insert rant about holiday marketing here ... I mean, isn't it more important to celebrate your relationships 365 days a year? Personally, anniversaries seem like a much more logical time to rejoice in your love than marking the same day as every other couple.

It's fun to complain about manufactured desires, but the truly concocted celebration designed to sell candy and cards is Sweetest Day. If you've never heard of it, find some Midwestern transplant to give you a rundown.

UPDATE: You could also head over to the central branch of the Enoch Pratt Free Library to watch Love Me Tonight at 10 a.m. or In the Mood for Love at 2 p.m. for free in the Wheeler Auditorium!

(photo: Monica Lopossay/Baltimore Sun)

Posted by Liz Kay at 9:27 AM | Permalink | Comments (1)
Categories: Cheap/Frugal, Holiday shopping
        

Tax guru Clint Stretch from Deloitte says the stimulus package worked out between the House and Senate is still undergoing tweaking.

Even so, Stretch in a conference call to reporters spelled out some of the changes:

The Making Work Pay credit is worth $400 per worker.  It's the equivalent of getting a $500 pay raise, once taxes are taking into consideration, Stretch says. The credit starts phasing out once income exceeds $75,000 for singles and $150,000 for joint filers.

Retirees on Social Security, disabled Veterans and SSI recipients will get a one-time $250 payment.

The credit for first-time homebuyers is worth $8,000 for houses purchased from the beginning of this year through November, according to Deloitte's reading of the legislation. The credit would have to be repaid if the house is sold within three years of purchase.

You will be able to deduct the sales tax paid on new car purchases with a price tag of up to $49,500. The perk is available to singles with incomes up to $125,000 and joint filers earning twice that.

Also, the maximum Hope Scholarship credit for tuition, fees and now books will go up form $1,800 to $2,500. The credit starts to phase out after income exceeds $80,000 for singles and $160,000 for joint filers.

Posted by Eileen Ambrose at 7:05 AM | Permalink | Comments (131)
Categories: Taxes
        

Replace your toothbrush every three months, says Consumer Reports.

I can't say I've always been vigilant about this, but the American Dental Association agrees that replacing toothbrushes every three months or earlier if bristles become frayed is a good idea because your mouth is full of bacteria. Not just your mouth, but all of our mouths.

And so, switching up your brush every three months will help prevent bacteria from building up and re-entering your mouth the next time you attend to your oral hygiene.

And that's important because ...

... bacteria is what leads to nasty stuff like cavity-causing plaque and irritating stuff like bad breath.

Irritating, because people spend a lot of money on mouthwash and gum and curiously strong mints to try to avoid stinky breath, when maybe a toothbrush and some skillfully wielded dental floss could do the trick.

And, in this age when people are losing benefits such as dental insurance, and so many other people don't have access to dental coverage to begin with, it would seem like something like flossing would be a good habit to nurture as a preventative measure. It's kinda like debating which is more expensive, a gym membership or a prescription co-pay.

You don't have to spend much on either implement; according to Consumer Reports, use any toothbrush with soft or medium bristles twice a day and any floss once a day and you'll rid yourself of most of the worst gunk.

And that's the point here: investing in preventative maintenance. What other replacement schedules do you follow religiously, to avoid the cost of disaster down the road? Replacing belts in my car is the first example that comes to mind.

(photo: Jed Kirschbaum/Baltimore Sun)

Posted by Liz Kay at 1:02 PM | Permalink | Comments (0)
Categories: Cheap/Frugal, Healthcare
        

With the looming spectre of Valentine's Day on the weekend's horizon increasing the pressure to consume, Brent meets his social obligations despite his commitment to avoid spending. --- lfk.

Well, I'm nearing the halfway point of my No-Buy month, and I haven't quit yet. I rarely give up on something I start, but I'm even more pumped about sticking with this exercise.

Yesterday was unfortunately a good friend's last day working at The Sun, but I scored tasty food leftover from her goodbye brunch.

I also made a trip to the grocery store and spent about $45 on uncooked pork chops, chicken, some breakfast foods, lunch meat and the essential components necessary for my Valentine's Day treat.

We all have opinions on that manufactured day. If you have a special someone, it can become quite pricey depending on how serious you take it. If you're more like me, you roll your eyes, hold your nose and do what you have to do to keep your significant other happy.

So what cheap/free ways are there to mark the occasion?

Of course, there are museums and libraries. We're catching a break with the unseasonably warm weather, so a walk in the park would work.

My friend and an author of this blog, Liz, suggests offering coupons to your significant other for things like free massages, a week of cooking and doing the dishes, etc.

The best gifts, as everyone knows, are tailored specifically for the person to whom they're intended. So, think about what that special someone in your life really enjoys doing or talking about -- something that doesn't break the bank. And act.

Then, share with us here. Help those who are still struggling as the days looms.

Don't miss earlier installments of Brent's No-Buy Month Spending Challenge: 

1. No-Buy Month, the 28-day spending challenge

2. Day 5: Rationale

3. Day 9: Withdrawal

4. Day 10: Boredom

(photo: Glenn Fawcett/Baltimore Sun)

Posted by Liz Kay at 9:54 AM | Permalink | Comments (5)
        

Marylanders are shocked by their gas and utility bills, and they're complaining to the state's Public Service Commission about it.

The commission was already looking into why so many ratepayers statewide have overdue bills, but they have expanded the inquiry this week to determine why so many people's electric bills have skyrocketed.

It's not the rates themselves --- the increases that went into place June 1 would not lead to the doubling and tripling of bills that ratepayers are seeing, said Paula Carmody, the People's Counsel, a consumer advocate.

It's also unlikely that electric meters have failed across the board, although you should talk to the company if you think there's a problem.

But the winter is probably on track to be normal or even colder than normal, compared with the past two warmer-than-usual cold seasons, she said. That could lead to increased usage.

According to our story:

"We do believe that for the most part it's a matter of usage," said Clay Anderson, a spokesman for Pepco. "You're going to have an increase ... with colder temperatures."

BGE told Sun business columnist Jay Hancock last month that:

"This winter, temperatures are 8 percent lower than normal, BGE says. That translates into as much as 10 percent more kilowatts burned - or higher if you have a heat pump or baseboard heaters."

Here's the other factor --- advance electricity purchases locked in at the summer's higher rates:

"At the same time ... BGE locked up its supply in advance, before prices dipped. While not purchasing at the peak in June and July, it still bought above today's depressed levels.

Likewise, BGE bought much of this winter's natural gas last summer, during the boom.

So neither natural gas nor electricity customers have yet benefited from the crash in energy prices. The wholesale cost of both decatherms and kilowatts has fallen by 40 percent or more from last summer's highs, mimicking the price of gasoline." 

By Feb. 20, the utilities must provide the PSC with answers to the following questions:

"1. From January 1 to February 18, 2009, how many complaints have been received about higher than normal utility bills? For the same period in 2008, how many complaints were received about higher than normal utility bills?

2. What steps does the company take to investigate and respond to the complaint, and how long does the process take to respond to or resolve the complaint?

3. Does the company have a script for its customer service representatives to respond to the higher-than-normal bill complaints? If so, please provide a copy to the Commission. Include also a copy of any written form letters, brochures or other correspondence.

4. Has the company determined the reason(s) for the spikes in the energy bills, and, if so, what are the reasons? If not, can the company provide any reasonable basis for the steep increases?

5. Explain the process for meter reading, and why, from month to month, the days covered by the bill vary (example, November bill is for 26 days whereas December bill is for 34 days).

6. Explain how a “degree day” is calculated, and whether a “degree day” reflects the wind chill and humidity level which may affect the warmth of a house. "

I'll be over at the PSC this morning at a hearing about Verizon customer service, so I'll keep you posted if we find out more.

Posted by Liz Kay at 7:37 AM | Permalink | Comments (17)
Categories: Cheap/Frugal, Energy/Utilities
        

Ever open some prepared food, like a TV dinner, and compare it with the picture on the box?

Hopefully the contents bear some similarity to the image on the packaging, but often it does not. 

In this week's amusing Consumer Web Site of the Week, we bring you a German site discovered via Consumerist that places images of food packages side-by-side with the contents inside. (Here's an English version with all the food packaging and contents photos on one page.)

Then, continue on ...

... and check out another Consumerist tip about the secrets of food photography.

Essentially, there's a surprising reason why advertising photos look better than reality: they doctor them with stuff like motor oil, glycerin and spray deodorant.

Posted by Liz Kay at 1:54 PM | Permalink | Comments (0)
Categories: Consumer Web Site of the Week, Food
        

Frequent commenter Pigtown checked out the new Goodwill boutique near the University of Maryland BioPark last night. The store features better quality merchandise from higher-end stores.

Here's her take:

"It's interesting, clearly aiming towards the UM crowd, not the neighbourhood. It's on the ground floor level of a parking garage, but is clearly on Baltimore Street. If people are looking for it on Poppleton, they're not going to find it. As I said, the address of the building must be 1 N. Pop.

It's super clean and well laid out. The prices are higher than the norm. One thing I hate about Goodwill is that they have clothes by colour, not size. It helps a whole lot to be able to go to your general size (s,m,l) and not have to wade through a bunch of things you're not interested in ...

... It's a pretty small store compared to the usual ones, so because of that, there are fewer things than most stores, but someone's clearly picking out the better goods and sending them to that store.

There were some "antiques" which were interestingly priced. There was someone's grandmother's watercolour of a street scene in the UK or France and they wanted $50 for it. There was also a machine-made quilt for about $150, which my friend and I laughed about.

But on the other hand there was a brand new pair of Dansko clogs for $10 --- too bad they weren't my size. I found a lot of department store-type brands there.

I think for a lot of people this will be a great resource. There's not really any place like that on the West Side, so that's a great help. One thing they didn't really have was the selection of new Target items, which are always fun to find."

Posted by Liz Kay at 11:54 AM | Permalink | Comments (2)
        

Have you loaned money to a friend or relative? Was it a good experience or one you are still regretting?

I'm writing a column for Sunday about lending money to those near and dear and would like to talk to those with some experience for the article.

If you're interested, send me an email at eileen.ambrose@baltsun.com.

Posted by Eileen Ambrose at 7:14 AM | Permalink | Comments (0)
Categories: Personal finance
        

As the No-Buy Month progresses, Brent learns to make the most of purchases of goods and services he's already made. Unfortunately, those amusements fade quickly. --- lfk. 

I've focused primarily on food but as you all know, my No-Buy covers entertainment and shopping as well.

Occupying my time when I'm away from work without spending money is equally daunting. If I had a wife and kids, my time would be filled rather easily. But since I have no such responsibilities at night, I have to make my own fun.

This past weekend ...

... involved an awful lot of gin rummy. Free movies that come with my On Demand, books I'd been meaning to get around to and Yahoo games were also on my menu.

Anyone have other suggestions on inexpensive ways to kill time during nights and weekends?

An aside: I got a break from my homemade meals last night. I work at The Sun until 10 p.m. One of my co-workers, who was filling in on a night shift, treated me to a ham and cheese club from Never On Sunday. It was the best of both worlds -- I kept money in my pocket and I got my grease fix.

Yes, Brent, you would be busier if you had a wife and kids ... and you'd have less money to spend on things like digital cable. Folks, what suggestions do you have for frugal ways for him to have fun? --- lfk.

Don't miss earlier installments of Brent's No-Buy Month Spending Challenge: 

1.No-Buy Month, the 28-day spending challenge

2. Day 5: Rationale

3. Day 9: Withdrawal

(photo: Kenneth K. Lam/Baltimore Sun)

Posted by Liz Kay at 4:58 PM | Permalink | Comments (4)
Categories: Budgeting, Cheap/Frugal, Shopping
        

File your Maryland state taxes online for free and avoid the frustration, urges Maryland Comptroller Peter Franchot in this "Taxpayers of Genius" commercial for iFile.

It's a parody of Bud Light's "Real Men of Genius" ads, in case you've missed those. 

"So tired of paper cuts ... makes me so angry ... " 

In case you're wondering how much it costs the state for you to process your return ...

... Maryland spends $1.98 on a paper return, and just 38 cents for a return filed online.

Will that make up for some of the money they spent creating this video? The YouTube summary describes it as "DIY". 

Posted by Liz Kay at 12:57 PM | Permalink | Comments (0)
        

Have you decided to postpone retirement because of the economy or a nest egg that’s been hit hard of late? You have plenty of company.

A new survey by the American Institute of Certified Public Accountants finds that 35 of financial planning clients approaching retirement have decided to postpone their departure from the work force because of the economy. That’s up 3 percentage points from the year before.

Nearly 10 percent of those delaying retirement say they will continue working for six or more years. About two-thirds will postpone retirement by no more than five years. “What this suggests is that 70 is the new 65,” says James Metzler, a vice president with the accounting group.

Besides pushing off retirement, 60 percent of those surveyed said they are delaying vacations; about half are waiting to buy a car or to purchase or sell a home and 42 percent have put home renovations on hold.

The accountants’ survey landed in my mail box around the same time as this email from a reader, responding to today’s column about whether you should continue saving in a 401(k) if your employer no longer matches your contributions. The reader argues that older workers face a new reality.

He writes: “The reality of the situation I think is that few people have enough spare income to save much of anything...Yes savings is a must, but what do you tell someone who is 55 and lost a great deal of money to do now? You tell them that they will probably never retire comfortably, sack money away somewhere that is as safe and bears a modicum of interest, and go get a second job. We need to tell the truth to ourselves I think.”

So what do you think? And let’s hear from you if you decided to work longer or postponed other financial moves.

Posted by Eileen Ambrose at 11:02 AM | Permalink | Comments (3)
Categories: Retirement
        

Weights and measures violations? No way. That's one of the many vital life lessons I learned from The Karate Kid II --- don't cheat poor farmers out of payments for their rice. Don't swindle us with inaccurate gauges at the gas pump. And you better weigh my produce accurately ... bananas are expensive enough.

So, then, here are the latest weights and measures violations from the Maryland Department of Agriculture:

... which, thankfully for most of our readers, seem to be mostly in Montgomery County.

Weis Markets #146, Glen Burnie – On October 7, MDA received $750 for a civil penalty assessed for short weight (first civil penalty).

Selectos Latinos, Rockville – On October 10, MDA received $500 for a civil penalty assessed for short weight (first civil penalty).

Giant Food #198, Potomac – On October 16, MDA received $750 for a civil penalty assessed for short weight (first civil penalty).

Bloom #2708, Rockville – On October 30, MDA received $1,000 for a civil penalty assessed for short weight (third civil penalty.

Super Fresh #943, Silver Spring – On November 6, MDA received $750 for a civil penalty assessed for short weight (first civil penalty).

Rockwall Café, Rockville – On November 13, MDA received $250 for a civil penalty assessed to for short weight (first civil penalty).

Shalom Strictly Kosher, Inc., Wheaton – On December 3, MDA received $250 for a civil penalty assessed for short weight (first civil penalty).

Giant Food #329, Rockville – On December 15, MDA received $750 for a civil penalty assessed for short weight (first civil penalty).

Weis Markets #119, Mt. Airy – On December 15, MDA received $250 for a civil penalty assessed for price verification (first civil penalty).

McKay’s Food & Drug, Lexington Park – On December 17, MDA received $500 for a civil penalty assessed for price verification (first civil penalty)

Giant Eagle #1841, Frederick – On January 6, MDA received $500 for a civil penalty assessed for short weight (first civil penalty).

Shoppers Food Warehouse #2676, Bowie – On January 6, MDA received $500 for a civil penalty assessed for short weight (first civil penalty).

Han Ah Reum, Wheaton – On January 13, MDA received $1,000 for a civil penalty assessed for short weight (second civil penalty).

Restaurant Depot, Baltimore – On January 13, MDA received $750 for a civil penalty assessed for short weight (first civil penalty).   

Save A Lot #266, Baltimore – On January 20, MDA received $500 for a civil penalty assessed for short weight (first civil penalty).  

(photo: Garo Lachinian/Baltimore Sun)

Posted by Liz Kay at 8:54 AM | Permalink | Comments (0)
Categories: Naughty businesses/NBotW
        

Baltimore's newest Goodwill store is a "boutique" thrift shop (2nd item) that boasts more brand names and higher-end items, writes Sun columnist Jean Marbella.

According to her Sunday piece,

The Baltimore shop, at 1 N. Poppleton St., has been a bit of an insider's secret since its "soft" opening on Jan. 21, although the buzz is growing, particularly among West Baltimoreans and the University of Maryland, Baltimore set (the boutique is in one of the campus' new biotech park buildings). But with a grand opening scheduled for Thursday morning, the competition for the Brooks Brothers jackets, the Enzo Angiolini pumps and the Faconnable shirts might get a little more fierce.

Has anyone been there yet? Jean's review offered tantalizing details ...

about its smaller size, better organization, and the NWT (new-with-tags) items from mall stores such as Talbots and other finds from labels such as Oscar de la Renta and Chanel.

The store will be open from 10 a.m. to 6 p.m., Monday through Saturday, and donations are accepted there.

We've offered you thrift-store shopping tips before. Certainly, you can pick up your share of treasures at thrift stores in general, like the time we told you about in June, when someone bought a valuable painting at the Goodwill Super Store in Easton.

Posted by Liz Kay at 1:02 PM | Permalink | Comments (2)
Categories: Cheap/Frugal, Shopping
        

As the month-long no-spending challenge progresses, Sun reporter Brent Jones addresses his demons (in the form of restaurant menus). Don't miss the earlier posts in this series: No-Buy Month, the 28-day spending challenge, and Day 5: Rationale. --- lfk.

This weekend was a little rough.

The No-Buy includes entertainment (movies, sporting events, plays, etc), shopping as well as food, but I'm struggling most with the cuisine aspect. A scene from the 2004 documentary Super Size Me comes to mind.

For those unfamiliar with the movie, a guy decides to eat McDonald's for 30 straight days, and around Day 7, 8, he starts looking pretty pathetic. Well, I was having major dining out withdrawal, and I realized I've become so accustomed to eating other people's cooking. At one point, I think I began to rival the facial expressions of Morgan Spurlock, the main character in the movie.

Addictions can take many forms, and on some level, I think I've become hooked to the MSG, trans fats and all the other tasty treats found in takeout food. But thankfully ...

... I resisted my urges and instead ate leftover meat loaf for lunch Saturday, a roast cooked by my friend Saturday night, and I cooked some spaghetti Sunday.

I've got to address my craving though. One of my friends said she would take me out to dinner for my birthday -- which was last month. I'm going to cash that offer in by the end of this week. And I won't be spending a dime, so it's not cheating, right?

Anyone else addicted to eating out? Or is my theory nonsense? What's the longest you've gone (breakfast, lunch and dinner included) not eating out?

Brent, I think you should examine why you're eating out so frequently, especially since you *do* know how to cook. Is it the convenience? The social element? --- lfk.

(photo: Tracy Boulian/Roadside Attractions and Samuel Goldwyn Films)

Posted by Liz Kay at 10:56 AM | Permalink | Comments (2)
Categories: Cheap/Frugal
        

Auto warranty calls annoy lots of Consuming Interests readers. And in July, we told you that Verizon filed a suit against two robo-marketing call companies.

Now, AT&T Mobility has also filed suit in Georgia against those responsible, according to RCR Wireless (via Consumerist).

These calls are particularly irritating ...

... because the callers use spoofing systems to disguise the source of the call.

According to the RCR story: 

The No. 2 wireless provider, headquartered in Atlanta, said the telemarketing at issue is prohibited by the Telephone Consumer Protection Act and a Federal Communications Commission rule requiring telemarketers to transmit caller identification numbers.

Posted by Liz Kay at 9:46 AM | Permalink | Comments (0)
Categories: Cellular/Landline/Voice over Internet, Naughty businesses/NBotW
        

If those nominated to lead our nation's highest offices can't even manage to pay their taxes, how can we lowly mortals escape fault?

Excellent Eileen's Sunday column about nanny taxes --- payroll, unemployment and other taxes paid for household workers, including gardeners, cooks, maids, childcare workers and others --- helps answer some of the complicated questions involved.

You'll also have to watch out for perks from anyone you have a business relationship with, making sure to report that as taxable income. That's what took down Tom Daschle.

Watchdog took a look at an out-of-order fire hydrant in Southwest Baltimore ...

... that reader Roy Shover Sr. said had been out of order for more than six months.

He was worried for the safety of those living on Unetta Ave., near St. Agnes Hospital, where the fire hydrant was far away from others.

The hydrant --- one of nearly 9,000 citywide --- has been replaced, but Public Works spokesman Kurt Kocher said that working hydrants should be located within 300 feet of each other.

UPDATE: What to do if you see a lingering out-of-service on a hydrant in Perry Hall, Catonsville or Essex? Baltimore's Department of Public Works repairs and maintains fire hydrants in Baltimore County, too. County residents should call 410-396-5352 to report problems.

And as we've told you before, anyone can report Baltimore city problems via the 311 online system.

(photo: Kim Hairston/Baltimore Sun)

Posted by Liz Kay at 6:04 AM | Permalink | Comments (0)
Categories: Taxes, Watchdog
        

Unpaid taxes could really derail your cabinet nomination hearings, some recent perspective appointees for the Obama cabinet have found. 

First, it was Treasury Secretary Timothy Geithner who admitted he was lax in paying the taxes he owed out of his paycheck from the International Monetary Fund. Then, former Sen. Tom Daschle withdrew his nomination for Health and Human Services secretary after it was discovered that he had at the last minute paid $140,000 in taxes on a car and driver a friend provided (why don't I have friends like these?!). And Nancy Killefer recognized she couldn't be in charge of ensuring government effficiency because she had failed to pay taxes for a worker in her household.

About 90 percent of Americans say you shouldn't cheat on your taxes, ever, so how can you avoid these pitfalls yourself just in case you get tapped for, I dunno, FEMA administrator? Read Eileen's column Sunday to find out how to ensure you pay the nanny tax.

Watchdog tackles a potentially hazardous situation ... 

... in the form of a broken fire hydrant.

You see hydrants all over the place, usually when you're looking for a parking space. But what if your hydrant is out of service? What should you do then?

We visit one out-of-order hydrant and find out more about how they are maintained. 

(photo: Larry C. Price/Baltimore Sun)

Posted by Liz Kay at 5:53 PM | Permalink | Comments (0)
Categories: Taxes, Watchdog
        

Thanks for all the comments and suggestions on the post introducing our No-Buy Month Spending Challenge volunteer, folks. Here's a little more about Brent and why he's embarking on this mission. --- lfk.

I'm up to Day 5 of No-Buy month and have yet to spend more than $1.50 on my daily drink from the vending machine. Before I go any further though, let me give a little background.

As suspected by some, I am not married and do not have any kids. I'm 32 years old and have been working for The Sun for more than nine years now.

Even though I'm getting older and am long removed from school, I often times find myself living the life of a college sophomore -- meaning I rarely do laundry, hardly cook, hang out at bars and restaurants multiple times a week and stand by idly while my apartment becomes a disorganized mess.

I need a little structure. And frankly, in this time of uncertainty in my field, I better figure out how to live within a budget in case I really have to.

So, I'm attacking my soft spot -- eating out. The last straw?

Anybody have a favorite cheap meal? And is $90 too much to spend on food and drink on a typical night out? (I'm trying to gauge whether I'm overreacting.)

Brent, yes --- $90 is a lot. But why don't you share some of your favorite cheap places to get a bite to eat? -- lfk. 

UPDATE: Don't miss the next installment of the No-Buy Month spending challenge --- Day 9: Withdrawal. 

(photo: Kenneth K. Lam/Baltimore Sun)

Posted by Liz Kay at 7:58 AM | Permalink | Comments (5)
Categories: Cheap/Frugal, Shopping
        

Where’s the love?

The Privacy Rights Clearinghouse is warning against Valentine’s Day e-cards that infect your computer with malicious software, or malware, when you open them.

The cards usually claim to be from a friend or secret admirer. Sometimes the fraudulent cards use the name of someone you know. Cards also may appear to be from legitimate e-card companies.

But the link on the e-mail will lead you to a site where the malware is installed in your computer, the consumer advocacy group says. Hackers then could get unlimited access to your computer and steal your password or do some other sort of damage.

So, this Valentine’s Day don’t click on unsolicited e-mail cards. Ignore e-mails requests for personal information. Don’t use the link in the unsolicited e-card, but go directly to the official site instead.

And to be truly safe: If you get an e-card from someone you know, e-mail them to double check that they sent it to you, the group advises.

That doesn’t sound very spontaneous or romantic. But you will be glad you did if you’re the target of a scam.

Posted by Eileen Ambrose at 6:01 AM | Permalink | Comments (0)
Categories: Scams
        

Valentine's Day is a day which some people love to celebrate -- and many still love to hate. But the long weekend means you can't use the excuse of having to go to work the next day to poop out on plans with your special someone. So, if you feel you must do something that day, here's a list of V-Day deals in the Baltimore area, or information compiled by other local sites that offer their own tips.

(Help this list grow! If you know of a Baltimore-area deal connected to Valentine's Day, please leave details and a link in the comments!)

:: Krispy Kreme is offering richly frosted heart-shaped donuts now through Feb. 14. With the dozen donuts, you'll also get a dozen Valentine's Day cards, which you can give to 12 special people in your life. Each card also doubles as a coupon for one free donut. (The donut maker has two stores in the Baltimore area, in Columbia and Glen Burnie. Check their site here for addresses.)

:: Baltimore.org (a site operated by the Baltimore Area Convention and Visitors Association) is encouraging lovers to "Get A Room." They have a list of participating hotels offering one free night stay if you book 1 night. They also have a list of restaurants offering special price fixe menus and weekend events. 

:: Buy roses from The Humane Society of Baltimore County and a good chunk of what you pay goes to them as a donation. The Humane Society has partnered with Flowers & Fancies in Owings Mills on the promotion. Example: If you buy the $60 "Puppy Love" floral arrangement, $30 will go to the Society as a donation.

:: Cirque de Soleil's show, "Kooza", will be in Baltimore in April, but they're offering a Valentine's Day promotion of buy one ticket, get one free. See their site for details and dates. The promo ends Feb. 16. (I heard about it on Twitter, at @CirqueClub)

:: Maserati of Baltimore is throwing a Valentine's Day party in the evening, a semi-formal affair for couples and singles to come and revel in the luxury lifestyle of fine cars and other pricey items. They're billing it as a night of luxury products, dessert and wine tasting. Your partner might get jealous if you ogle the Maseratis and Lamborghinis on display for too long. They're offering a voucher for a free ride in the new Maserati Quattroporte. Tix: $40/couple; $25 single. Location: 1630 York Road, Timonium.

Posted by Gus Sentementes at 1:00 PM | Permalink | Comments (3)
Categories: Cheap/Frugal
        

In 2007, the state Public Service Commission began investigating about 300 complaints filed about Verizon customer service --- that technicians missed repair appointments, leaving people without basic telephone service.

Now to clear up these Verizon customer service complaints as well as other matters, the company has negotiated a settlement agreement with the Office of the People's Counsel, which represents consumers, and commission staff.

They are offering $1 million in bill credits to customers who were left without service for more than four days as well as promising to pay penalties if they leave people hanging in the future.

According to testimony submitted by commission staff, nearly 80,000 customers were out of service for that long from Aug. 2007 until the present (there's a typo in the original text on page 21, Verizon sez), and would qualify for bill credits of $10.88.

And nearly 47,000 had set up appointments but the technicians failed to show up, and would receive about $2.77.

So what do you think --- is that a fair payment? Will the penalties be enough to prevent these problems from happening in the future? And what do you think about other parts of the agreement, including the proposal to deregulate pricing for bundled telephone service?

Posted by Liz Kay at 11:51 AM | Permalink | Comments (2)
Categories: Cellular/Landline/Voice over Internet, Consumer protection
        

Harford County residents could get FiOS, if county council members  approve the proposed Verizon cable franchise agreement on Feb. 17.

Bel Air residents already have FiOS, but to submit testimony to support FIOS, contact your Harford County Council members or write to the Harford County Council office.

Verizon spokeswoman Sandra Arnette said in an interview yesterday about resolving Verizon customer service woes that the company will start installing lines once it's approved. 

Readers frequently ask when FiOS will come to their area.

Baltimore Sun business columnist Jay Hancock addressed this topic last month, with his column about Baltimore's FiOS hopes.

His answer is: maybe FiOS will arrive in Baltimore by 2010. The company is negotiating with Baltimore's cable commission. 

(Photo: Christopher T. Assaf/Baltimore Sun)

Posted by Liz Kay at 10:41 AM | Permalink | Comments (1)
Categories: Cable/Satellite/TV/Comcast/FiOS, Computers
        

Could you buy nothing during February? Reporter Brent Jones has already survived five days without spending a dime outside of a few areas. He'll be telling us all month about his experiences. --- lfk.

My inner being is one of a cheapskate, although my bank account has not reflected that in the past few years.

I've spent freely -- not out of control -- but certainly with little regard when it comes to food, beverages and other forms of entertainment. I'm giving those luxuries up this month, pledging a No-Buy Month vow at the behest of a good friend of mine who is publicly undertaking the same endeavor.

The rules are simple enough. Obviously I'll spend money to pay my bills (rent, electric, cable, etc) and to buy food from the grocery store, but I won't go out to eat and I'll avoid buying drinks during happy hours (or I'll depend on some generous soul to purchase one for me if I go out).

Not shopping for clothes or shoes will be easy since I don't do that much anyway. And I'm not cutting out my $20 bi-monthly haircut, which should fall under the category of personal grooming.

I began this on Sunday, the first day of the month ...

I splurged and spent $10 on a pie and cookies for a Super Bowl potluck I previously agreed to attend, but have only spent $2.50 since (on sodas from the machine here at work).

I purchased $140 worth of groceries to start the week and expect that will last me much of this experiment. I tend to eat out for dinner anywhere from four to seven times a week, and I mostly buy my lunch daily as well. But I can cook.

Still, this won't be easy. I'm already craving Indian buffet, but hopefully I can hold myself accountable through this forum.

Like I said to start, I'm thrifty at heart, so I've got a shot at making it. I just have to return to my college roots, when I could stretch a $1 for days, and made or hustled for every morsel of food I ate. And I hope I'll be rewarded with some extra cash to blow through come March.

Personally, I want to hear more about how Brent's going to change his habits to work brown-bagging into his bachelor life. Feel free to post your own questions and tips for him below. --- lfk.

UPDATE: Don't miss the next installments in this series:

2. Day 5: Rationale

3. Day 9: Withdrawal

4. Day 10: Boredom

Posted by Liz Kay at 7:46 AM | Permalink | Comments (7)
Categories: Budgeting, Cheap/Frugal
        

Sorry folks: somehow this didn't post yesterday as I planned. Enjoy this morning!

We usually like to post Consumer Web Site of the Week a little earlier, but it's been a busy news day. So, here's a late afternoon toy to fool with that's only slightly less depressing than checking out your retirement investment losses.

Yesterday the New York Times posted a "comeback calculator" that allows you to figure out how long it will take for your retirement accounts return to their pre-recession levels. It will also tell you how much you'll have in retirement, but any run-of-the-mill calculator can do that!

Just plug in your previous balance, your current balance and your annual contributions, and let the calculator do the rest. Adjust the rate of return for optimistic outlooks and drearier ones.

Yes, we'll be working for a long, long time. 

Posted by Liz Kay at 4:25 PM | Permalink | Comments (0)
Categories: Budgeting, Investments, Retirement
        

The Heartland data breach resulted in credit card fraud for only a small number of consumers, according to the company --- though they won't say how small is small. But dozens of banks and credit unions had to alert their customers to the potential that they, too, could have been affected, in some cases issuing new credit and debit cards, just in case. Provident Bank sent out new cards and put transaction limits on debit cards and Sovereign Bank will send customers a new card at their request.

Tom Field of bankinfosecurity.com pointed out the largest examples of similar data breaches weren’t banks themselves. For example, hackers used malware to capture millions of card numbers from the Maine-based Hannaford Bros. supermarket chain last March. And just two weeks ago, T.J.Maxx and Marshalls offered a 15 percent off sale to apologize to customers for a similar hacker attack in 2007.

"None of these happened to a bank and yet the banks are left having to explain to their customers, and to bear the cost of replacing the cards."

Unlike banks, which must have federally mandated security systems, companies such as Heartland aren’t held to the same standards, even though they handle TONS of financial data, Field said.

So how can you protect yourself?

Field said you're probably already doing most of these steps: customers should keep their antivirus software up to date, safeguard their passwords and review their statements right away to spot potentially fraudulent purchases.

It's slim consolation, but at least customers don't have to worry too much in this case about new account fraud --- it's unlikely that someone would be able to open new credit accounts with only a credit card number (not a social security number).

Hugh Williams, administrator of the identity theft unit of the Maryland Attorney General's Office, said that credit card or debit fraud was the main concern in situations such as these.

He said that consumers have up to 60 days to dispute fraudulent charges on a credit card, and would be liable only for up to $50. Fraudulent debit card charges, on the other hand, must be challenged within three days. Dispute within 30 days and banks can’t hold you liable for more than $500, he said.

Marylanders can also contact the identity theft unit of the state attorney general’s office to answer questions and get more information about how data breaches could affect them by calling 410-576-6491 or sending an e-mail to mailto:idtheft@oag.state.md.us.

Posted by Liz Kay at 10:02 AM | Permalink | Comments (0)
Categories: Banks, Consumer protection, Credit cards, Identity theft, Naughty businesses/NBotW
        

Many taxpayers viewed last year’s tax rebate as a “free lunch,” meaning there had to be a catch.

These taxpayers were sure that they would be taxed on the money from the economic stimulus check, despite repeated declarations by the IRS to the contrary.

Well, it’s worth repeating, since we’re still getting asked about this: Money you got from the tax rebate is NOT taxable.

The 2008 returns, though, include a “recovery rebate credit” if you didn’t qualify for the rebate last year, but now you do.

The stimulus payment was an advance of a 2008 tax credit, but the IRS used your 2007 tax return information to determine whether you qualified. If your situation changed in 2008, you may now be eligible for the tax credit.

For instance, maybe you didn’t qualify last year because you were listed as a dependent on your parents’ 2007 tax return. Dependents didn’t get rebates. But if you were no longer a dependent in 2008, you could be eligible for the credit this year.

Again, the line on the tax form is to allow you to claim a rebate you didn’t get or to claim a larger one than you received last year. It is not a line designed to tax last year’s rebate.

Posted by Eileen Ambrose at 6:02 AM | Permalink | Comments (0)
Categories: Tax rebates
        

Some Provident Bank customers have been impacted by a data breach at Heartland Payment Systems, a Princeton, N.J. processor of credit card payments.

Apparently, hackers used malicious software -- 'malware' -- to steal credit and debit card numbers from the card payment processing company last year. Some estimate that the Heartland breach could affect tens of millions of cardholders nationwide.

Only customers who received a new card in the mail and a letter from Provident had their card numbers compromised, company officials say. If you got the new card, activate it and destroy the old one. 

Then, watch your statements --- and check old ones --- for problem transactions, because according to this Washington Post blog, Heartland doesn't know how long the malware was reading the numbers.

Some Provident customers thought the letter was a hoax or a scam,

because they couldn't find information on the Provident Bank Web site about the breach. There was nothing on the home page.

But apparently a Provident Bank statement on the data breach had been posted on Provident Bank's "Customer Service" Web page, under "MasterCard Issues," describing the transaction limits "MasterMoney" debit card users might encounter at certain retailers.

These would only be in effect for signature-based transactions only, however --- enter your PIN and the transaction would go through. 

For more information, call Provident at 888-298-7734.   

Updated: When data breaches affect Marylanders, state law requires companies to report the incident to the Maryland attorney general's identity theft unit,

Hugh Williams from the ID theft office warns readers to take these notices seriously --- dn't dismiss them as ploys to sell credit monitoring products. More information about protecting yourself from identity theft can be found at the Maryland identity theft unit Web site.

Posted by Liz Kay at 1:30 PM | Permalink | Comments (1)
Categories: Banks, Consumer protection, Identity theft, Naughty businesses/NBotW
        

The early results are in: About 15 percent of taxpayers trying to claim last year’s tax rebate on their returns have made mistakes.

According to the IRS, some people are claiming the rebate when they don’t deserve it. Others claim the wrong amount. And some erroneously put the amount they received last year on the “recovery rebate credit line.”

Mistakes can delay refunds.

Last year’s economic stimulus check was a 2008 tax credit. But to get money as fast possible into the hands of consumers, the checks were sent out based on information on 2007 returns. Rebates for individuals ranged from $300 to $600, and married joint filers got double that amount. Plus, parents with younger children could receive $300 for each child.

Your 2007 information, though, may have made you ineligible for a rebate or you might have gotten less than the maximum amount. And if your situation changed in 2008, you might be able to claim the rebate on this season’s tax return.

You will need to know how much of a rebate, if any, that you got last year to figure out how much to claim now.

If you forgot, check the notice the IRS mailed to you last year. Or, go to the IRS Web site and check out How Much Was My Stimulus Payment. Or, call the IRS at 866-234-2942.

Computer software will automatically figure and report the amount of your rebate recovery credit.

If you’re the old-fashioned type and filing a paper return, use the work sheet in the 1040 instruction booklet to figure your credit. Then report the number on Line 70 of the Form 1040; Line 42 on Form 1040A and Line 9 of the 1040 EZ form.

You can also enter zero on the line and let the IRS figure out your rebate credit.

One other important point: Remember, last year's stimulus check does NOT have to be reported as income on your tax return.  

Posted by Eileen Ambrose at 6:07 AM | Permalink | Comments (0)
Categories: Tax rebates
        

E-ZPass fees have been approved here in Maryland. Starting in July, drivers will pay $1.50 a month for their accounts as well as $21 to replace their transponders if it stops working, for example when the battery runs out.

Getting There columnist Michael Dresser offered this tip to ease the pain of the new monthly E-ZPass fee, however.

He reminds us it's charged per account maintenance, not per transponder. If multiple drivers in your household use E-ZPass in separate accounts, cancel all but one and consolidate all drivers on one account.That way, that $1.50 will go farther.

He also points out ...

... that you should keep the account of the newest subscriber, and return the older transponders that are likely to die on you sooner.

And they won't charge you for a replacement until July, so it makes sense to turn the ancient ones in first. 

Posted by Liz Kay at 1:32 PM | Permalink | Comments (2)
Categories: Cars, Cheap/Frugal
        

Maybe you're in a deadend job in a deadend career and are thinking about going back to school to retrain and retool. Or maybe you've already gotten that pink slip and severance package, and are thinking about getting more education while the job market is undergoing a massive transformation.

Or maybe you're just a knowledge geek, hungry for good information wherever you can get it -- especially if it's free. If any of the above apply to you, you might want to check out a new web site called Academic Earth.

The site offers full, free lectures from professors at some of the most prominent universities in the United States, including: Berkeley, Harvard, MIT, Princeton, Stanford and Yale. You can view lectures (and download them to your iPod or embed in your blog or Website) in a wide range of subjects, from the hard sciences to law, medicine, and religion.

So if you're thinking about law school, business school, or med school as a way to a career change, you might want to watch a few videos to get a feel for what you could expect before you shell out tens of thousands of dollars on tuition.

Here's an example video from a lecture on entrepreneurship, by Yale's Barry Nalebuff, called: "Why not? How to use everyday ingenuity to solve problems big and small."

Posted by Gus Sentementes at 11:00 AM | Permalink | Comments (2)
Categories: Cheap/Frugal, College/Financial aid
        

Tax tips abound in Excellent Eileen's column this week, where she rattles off eight ways to beef up your tax return depending on your situation. First-time homebuyer? Collecting unemployment? Lost money in the stock market? You need to check out her column.

She brings up an important reminder if you didn't receive the maximum tax rebate in 2008. Your situation may have changed --- perhaps you earned more money, for example --- so you should check to see whether you qualify this time around.

Watchdog tackles an all-too-common problem this week:

Posted by Liz Kay at 6:04 AM | Permalink | Comments (0)
Categories: Taxes, Watchdog