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[ad_1] Quick answer: Yes, it’s possible for undocumented immigrants to get a mortgage loan. They face legal and financial obstacles that don’t stand in the way of other purchasers, but millions have done so successfully. You don’t need to be a resident to own real estate in the United States. Many documented immigrants own homes. While it’s difficult to get accurate statistics about undocumented homeowners for a number of reasons, in 2014, the Migration Policy Institute estimated that around 3.4 million undocumented immigrants owned homes in the United States. Keep reading to discover how your residency status impacts the home loan process. We’ll also highlight some important information you should know about your rights when applying for a mortgage.  In This Piece How Residency Status Affects a Home Loan Understand Your Rights How to Get a Mortgage How Residency Status Affects a Home Loan Overall, residency status plays a significant role in determining the availability and terms of home loans for individuals in the United States. Green Card Holders Green card holders are permanent residents eligible for most types of mortgages available to U.S. citizens. This means they must provide proof of income, credit history and other financial documents to qualify for a home loan. In some cases, green card holders might face additional challenges during the home loan and purchase process. Those can include difficulty in obtaining mortgage insurance or a higher down payment requirement, which can vary based on the lender and the type of loan. Refugees and Asylum Grantees Refugees and asylum grantees are individuals granted legal status in the United States due to persecution or fear of persecution in their home countries. They may be eligible for certain types of mortgages. However, their ability to obtain a home loan might depend on their specific immigration status and financial circumstances. For example, refugees or asylum grantees who have been in the United States for less than 2 years might have a harder time getting a mortgage because many lenders require at least 2 years of residency to establish credit history. DACA DACA recipients, or individuals who’ve been granted Deferred Action for Childhood Arrivals, are not eligible for most types of home loans. This is because they don’t have legal permanent residency status. However, some lenders may offer alternative financing options or assistance programs specifically designed for DACA recipients and other undocumented immigrants.  Additionally, DACA recipients who have obtained an Employment Authorization Document and can demonstrate a stable income and credit history may be able to get a mortgage under certain circumstances.  Understand Your Rights The Fair Housing Act prohibits discrimination in housing based on race, color, national origin, religion, sex, familial status or disability. Immigrants, including those who aren’t U.S. citizens or permanent residents, are protected under the FHA and have the same rights as other individuals. That includes: The right to rent or purchase housing without discrimination based on national origin The right to be treated the same as U.S. citizens or permanent residents in all aspects of the housing process, including advertising, application, screening and approval The right to request reasonable accommodations in housing, such as modifications to the physical structure of a home or changes to policies or procedures, if disabled If you believe you’re being discriminated against during the home loan, home buying or other housing process, you should report it.   How to Get a Mortgage as an Undocumented Immigrant Undocumented immigrants aren’t usually able to qualify for mortgages through traditional services, such as those backed by Fannie Mae and Freddie Mac. However, individuals with an ITIN may be able to get approved for special loans from private lenders. An ITIN (Individual Taxpayer Identification Number) is a unique identifier the IRS uses to process tax returns and payments for those that do not have or do not qualify for a social security number. Apply for an ITIN The first step is to apply for an ITIN, or Individual Taxpayer Identification Number. You do this by completing Form W-7 via mail, in person at an IRS-authorized agent or in person at an IRS Taxpayer Assistance Center. Save for a Down Payment Because undocumented immigrants can’t usually qualify for federally backed loans, such as those through the FHA, they probably won’t qualify for mortgages with low down payment requirements. Private lenders may require down payments as much as 20% or even 30%. If an undocumented immigrant wants to buy a home, they should start saving as soon as possible. That might mean paying down other debt first. Get Documentation Ready In addition to the ITIN, undocumented immigrants will have to provide information to help qualify them for a private home loan. That information can include: Proof of income, such as recent pay stubs, tax returns or other financial documents Information about credit history, including any outstanding debts, loans or credit accounts Recent bank statements that show account balances and transaction history Identification documents, such as passports or government-issued IDs Proof of residency status, such as a lease agreement or utility bill in the person’s name Proof of employment or self-employment, such as a letter from an employer or recent tax returns Apply for an ITIN Mortgage Once you have an ITIN, a down payment and all the necessary documentation, you can apply for an ITIN mortgage. Start by browsing the mortgage options in the Credit.com marketplace. The post Can an Undocumented Immigrant Get a Mortgage? appeared first on Credit.com. [ad_2]

[ad_1] Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Quick answer box There were over 389,000 reports of credit card fraud to the Federal Trade Commission (FTC) in 2021. Globally, there were over $32 billion in losses. Sources: Federal Trade Commission and Nilson In 2021, the Federal Trade Commission (FTC) reported that there were 5.7 million reports related to consumer fraud, and credit card fraud was one of the most reported types. The top two types of fraud included identity theft and impostor scams, which can also relate to credit card fraud. With this type of fraud being so prevalent, it’s helpful to know the data so you can know what to look out for. When you become the target of credit card fraud, it can damage your credit score and make it difficult to recover. Here, we’ll go over some of the most important findings as well as what you can do if you’ve become the victim of credit card fraud. Table of contents: Identity theft in the U.S. Identity theft in the U.S. by age Identity theft by state Credit card fraud in the U.S. Global credit card fraud losses by year Data breaches by year How credit card fraud hurts your credit score Key credit card fraud statistics Credit card fraud was down in the United States between 2020 and 2021, but it’s still a major problem. In addition to someone stealing your personal information, resulting in fraud, it’s also possible for a company you use to have its data breached. The following are some key findings from the data we collected: There were over 389,000 cases of credit card fraud reported to the FTC in 2021 (Federal Trade Commission) The largest data breach of credit card information happened in 2009 to Heartland Systems, and it affected 160 million credit cards (U.S. Department of Justice) Global losses from credit card fraud totaled over $32 billion in 2021 (Nilson) In 2021, Texas had the most reported cases of credit card fraud with over 146,000 reports (Federal Trade Commission) People ages 30 to 39 reported the most cases of credit card fraud in 2021, but those 80 years and older experienced the highest median loss of $1,500 per report (Federal Trade Commission) Identity theft in the U.S. According to the FTC, identity theft was the most common form of fraud reported during 2021. Identity theft accounted for just over 25% of all of the reports, which totaled 1.4 million reports during that year.  There are many ways criminals use stolen identities, but the most common form identified in the FTC report was people using stolen identities to open checking and savings accounts. This type of identity theft was up 64%compared to the previous year. It’s also beneficial to remember that these are just the reported cases. There are many victims who never report these types of crimes to the FTC, so this number is likely higher than 1.4 million cases. The seven common types of identity theft Although criminals are likely to use stolen identities to open checking and savings accounts, there are seven common types of identity theft. Although criminals are likely to use stolen identities to open checking and savings accounts, there are seven types of theft that lead to stolen identities. This can include phone and utility fraud, government document or benefits fraud as well as tax-related fraud. Criminals then use these methods for fraudulent activities.  Government documents and benefits fraud leads the list with almost 400,000 cases reported, but it’s down two and a half percent compared to 2020. While this type of identity theft and credit card fraud is down, bank fraud increased by nearly 40%. .container{ max-width: 1200px; width: 100%; margin: auto; } .cradit-crawalable-table { border-collapse: separate; width: fit-content; border-radius: 10px; margin: 50px 0; border: solid 1px #f2f2f2; border-spacing: 0; overflow: auto; height: max-height; display: block; } .cradit-crawalable-table::-webkit-scrollbar { width: 5px; border-radius: 20px; } .cradit-crawalable-table::-webkit-scrollbar-track { -webkit-box-shadow: inset 0 0 6px rgba(0,0,0,0.3); border-radius: 20px; } .cradit-crawalable-table::-webkit-scrollbar-thumb { background-color: #44b853; outline: 1px solid slategrey; border-radius: 20px; } .cradit-crawalable-table thead { color: #303030; } .cradit-crawalable-table thead tr { background-color: #f2f2f2; border-radius: 10px; } .cradit-crawalable-table thead tr th { text-align: left; padding: 15px; border: 0; } .cradit-crawalable-table thead tr th:first-child { border-radius: 10px 0 0 0; } .cradit-crawalable-table thead tr th:last-child { border-radius: 0 10px 0 0; } .cradit-crawalable-table tr td { padding: 15px; border-left: 0; border-right: 0; border-bottom: solid 1px #f2f2f2; } .cradit-crawalable-table tr p { padding: 0; margin: 0; } .cradit-crawalable-table tr a { color: #44b853; padding: 0; text-decoration: none; } .question-box { padding: 50px; background-color: #1d4bb6; border-radius: 10px; color: #fff; margin: 50px 0; font-size: 18px; } .credit-card-saving { width: 100%; border-radius: 10px; border: solid 1px #dcdcdc; margin: 50px 0; } .credit-card-saving .title div { padding: 20px 50px; display: flex; align-items: center; justify-content: space-between; padding-bottom: 20px; } .credit-card-saving .title div h3 { margin: 0; font-size: 32px; } .credit-card-saving .title div img { width: 200px; } .credit-card-saving .title hr { width: 92%; border: #f2f2f2 solid 1px; } .credit-card-saving .content { display: flex; align-items: flex-start; justify-content: space-between; padding: 20px 50px; } .credit-card-saving .content .key-takeaways h4 { padding: 0; margin: 0 0 10px 0; font-size: 18px; } .credit-card-saving .content .key-takeaways ul { padding: 0 0 0 15px; } .credit-card-saving .content .rating h4 { padding: 0; margin: 0 0 10px 0; font-size: 18px; margin: 0; } .credit-card-saving .content .rating .stars { margin-top: 20px; color: #2c56bb; display: flex; align-items: center; justify-content: space-between; gap: 10px; } .credit-card-saving .content .rating .stars div { display: flex; } .credit-card-saving .content .rating .stars div img { width: 20px; } .credit-card-saving .content .btn a { background-color: #44b853; color: #fff; padding: 10px 50px; border-radius: 5px; text-decoration: none; display: block; } .credit-card-saving .why-we-chose-it { padding: 20px 50px; background-color: #f2f2f2; } .credit-card-saving .why-we-chose-it h4 { margin: 0 0 10px 0; } .credit-card-saving .why-we-chose-it p {

[ad_1] According to TransUnion, the total number of consumers that own a credit card account reached 166 million in the fourth quarter of 2022 . That accounts for an increase of over 13 million over the last three years . Even with that many credit cards in circulation, though, not everyone can get one. Why can’t you get a credit card? It may have to do with your credit score. A lower credit score can lead to fewer financial opportunities. Keep reading to learn what credit score you need to qualify for a credit card and how you can build credit to get better opportunities.   What Credit Score Do You Need for a Credit Card? If you can’t get a credit card, it could be for a number of reasons, such as if you don’t have proof of income. Credit card companies want to know you have regular income and the ability to pay off any balances you incur. Another common reason you can’t get a credit card is because you don’t meet the credit requirements. There isn’t a specific minimum credit score that gains you entrance into the credit card kingdom. Every credit card has its own requirements. Typically, credit cards with more perks, higher credit limits and better interest rates have higher credit score requirements. Cards for those with lower credit tend to have fewer benefits. Unsecured credit cards usually need higher overall credit scores than secured credit cards. Secured credit cards require you to put up some money as a deposit to secure your credit limit. The average FICO® score in the U.S. is around 714. Good credit is typically considered anything above 670. If your score falls below that, you may find it difficult to get a credit card with great interest rates or benefits. And if you fall too far below it, you may find you can’t get a credit card at all or are limited to secure credit cards. 3 Ways to Build Credit with Low to No Credit History You can start building your credit in other ways. Once you boost your score, you may have a better chance of getting approved for the card you want. Get a Credit Builder Loan Credit builder loans aren’t really loans you use to get funds you need right now. They’re secure loans that let you demonstrate you can manage credit and payments well, which can boost your credit score.  One option is LOQBOX. With this option, you buy a savings voucher. The money you pay for it is deposited in a “lockbox”, and you’re given a “loan” for the amount. You pay off the loan over a year and the lockbox is opened, giving you access to the money in the savings account. Your timely payments are reported to the credit bureaus, helping increase your payment history and, hopefully, your score. Another similar option is CreditStrong, which offers a number of plans to help people build credit.   Report Rent and Utility Payments Unfortunately, landlords and utility companies don’t usually report your payments to the credit bureaus. That means you’re not getting credit for making regular payments every month on some of your biggest expenses. When you sign up for ExtraCredit, you can use the Build It feature to get these items reported on your credit reports. That way, you can build payment history by demonstrating that you responsibly pay a number of bills every month.  Become an Authorized User  If you have a trusted friend or family member with a credit card account in good standing, you might ask them if you can be added as an authorized user. For this to work, the credit card company has to report account and payment information to the credit bureaus for the authorized user too, so double-check before you go through the trouble. You also need to ensure the primary account holder pays their statement on time every month and doesn’t run up balances to create high credit utilization. Otherwise, getting the account on your credit report could be a negative rather than a positive.  Try ExtraCredit Want more great tips and information on building your credit? Sign up for ExtraCredit today. You’ll get five great features to help you build and protect your credit, including: Build It, which lets you report rent and utility payments to the credit bureaus Guard It, which provides identity theft monitoring and protection Track It, which gives you access to 28 of your FICO scores Reward It, which has cash back rewards for completing offers Restore It, which provides discounts for credit repair service The Bottom Line Being denied a credit card can be a bummer. But that denial doesn’t have to be a roadblock on your journey to build credit. Look at all your options, starting with some of those listed above, to find credit-building tools that work for you. Then, put in the work to make good financial and money management decisions to build your credit in the future.  The post 3 Ways to Build Credit if You Can’t Get a Credit Card appeared first on Credit.com. [ad_2]

[ad_1] According to the Federal Reserve, 4 in 10 people who go to college incur debt to pay for their education. Currently, individuals with outstanding student loan debt owe as much as $100,000 or more, with more than 40% owing between $20,000 and $99,999.  If you’re struggling with student loan debt, you certainly aren’t alone. Understanding your loan is an important first step in creating a viable plan to pay it back. You may be dealing with one of many student loan service providers, including Navient. Find out more about Navient below, including what to expect if this company is calling you, so you’re more educated about your student loan debt and avoid making mistakes on your student loans.  In This Piece What Is Navient? Why Is Navient Calling Me? What Should I Expect When Navient Calls? What Is Navient? Navient is a student loan servicer. This means it’s a company that handles student loans, including the collection of those loans. Navient previously existed as an arm of Sallie Mae, the Student Loan Marketing Association. However, the company split off from Sallie Mae in 2014. Is Navient Legitimate? Yes, Navient is a real company with real contracts with student loan lenders. If this is your student loan servicer, it’s not a scam, and you can make your payments with confidence. Still, it’s always a good idea to keep records of all your debt payments in case you need to prove them later.  Get Your Free Credit Score & Monitoring Plus Weekly Updates From Our 50+ Experts Get It Now Privacy Policy What Does Navient Do? Note that Navient is not the lender. It didn’t loan you the money for the student loan or buy the student loan debt from your lender. It’s more of a middleman between the borrower and the lender and is responsible for a variety of tasks, including: Sending information about your student loan balances and when payments are due Working with you on deferrals and other measures when you’re in school or after you graduate Collecting payments from you Working with you to set up payment plans when necessary Reporting payments—both timely payments and late or missed payments—to the credit bureaus Navient primarily services private student loans after ending its contract with the Department of Education in late 2021. Why Is Navient Calling Me? If Navient is your student loan service provider, it may call you for a number of reasons. Navient reps may contact you due to: A need to update your records or questions about information on your account To ensure everything is on track while you’re still in school Because your account is in danger of defaulting and you need to attend to it or set up payment plans It’s important to pay attention to communication from your student loan provider so you can keep your account in good standing. Student loan servicers may also send you emails or mail, so watch for those types of communications as well. You should always know what company is servicing your student loan accounts so you can work with it to repay your loans. Defaulting on your student loans can have great consequences on your finances, including your credit score. So, you should contact your loan servicer to find out what options you may have. For example, you can contact them to learn how to discharge your student loans, and for what programs you may qualify. What Should I Expect When Navient Calls? Always verify that someone calling about a debt is who they say they are. Check the phone number on your caller ID. You can look it up online or compare it with phone numbers listed on paperwork you might have from the company.  Avoid answering questions with personal information. Navient reps won’t call you and ask for specifics like your account number or Social Security number. They already have all the pertinent information they need in their files.  Whether Navient is calling you or you’re calling your student loan servicer, be prepared to discuss the best ways to deal with your debt. Have a plan for how much you can pay, and don’t be afraid to ask about payment plans and other options to help you get back on track if your student loan payments have fallen behind. The Bottom Line Student loan servicers want to collect the debt from you, but they also have a number of tools they can use to help you pay that debt. You also have options, including refinancing your student loans. Not paying your student loans will affect your credit score. Always make sure you understand the terms of any loans or refinance loans and how they might impact your credit. See where your credit stands at Credit.com by checking out your free credit report card. The post Who Is Navient and Why Are They Calling Me? appeared first on Credit.com. [ad_2]

[ad_1] Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. .container{ max-width: 1200px; width: 100%; margin: auto; } .question-box { padding: 50px; background-color: #1d4bb6; border-radius: 10px; color: #fff; margin: 50px 0; font-size: 18px; }/*# sourceMappingURL=style.css.map */ At the end of 2022, the Federal Reserve reported that roughly 43.5 million Americans have student loan debt, which totals over $1.7 trillion. Each borrower owes an average of $37,787. If you owe tens of thousands of dollars in student loan debt, you’re not alone. According to the Federal Reserve’s Consumer Credit report, 43.5 million Americans have some form of federal or private student loan debt. That’s 13 percent of the population. Not only can you not declare bankruptcy on many forms of student loan debt, but it can also harm your credit. Here, we’re going to help you better understand the student loan debt dilemma that millions of Americans are facing. We’ll cover both federal and private student loan statistics, which states have the most student loan debt as well as delinquency rates. This will help you see where you stand in comparison to others in a similar situation. Table of contents: Average student loan debt How many Americans have student loan debt? Student loan debt by state Total federal student loan debt Total private student loan debt Average student loan debt by age group Student loan repayment status Student loan default and delinquency rates Student loan debt forgiveness Student loan debt FAQ Average student loan debt The Education Data initiative is a primary source for tracking data on student loan debt and other educational statistics. In a January 2023 report, their analysis showed that the average debt per borrower was over $37,000 for federal student loans and nearly $55,000 for private loans. Student loan debt has reached new highs in recent years and has been rising since 2007. Less than 20 years ago, the average student loan debt per borrower was just $18,200. This means that by 2022, we saw a 106 percent increase. Here’s some more interesting data from their report: Those with a medical degree have an average student loan debt of over $300,000 The least amount of student loan debt is those with a Master of Education, which is $67,500 Stafford loan borrowers owe $25,249 on average 10 percent of borrowers owe more than $100,000 and 45 percent owe less than $20,000 How many Americans have student loan debt? Over 43 million Americans have student loan debt. The following table from the  U.S. Department of Education shows how many Americans have debt by federal loan type.  .container{ max-width: 1200px; width: 100%; margin: auto; } .cradit-crawalable-table { border-collapse: separate; width: fit-content; border-radius: 10px; margin: 50px 0; border: solid 1px #f2f2f2; border-spacing: 0; overflow: auto; height: max-height; display: block; } .cradit-crawalable-table::-webkit-scrollbar { width: 5px; border-radius: 20px; } .cradit-crawalable-table::-webkit-scrollbar-track { -webkit-box-shadow: inset 0 0 6px rgba(0,0,0,0.3); border-radius: 20px; } .cradit-crawalable-table::-webkit-scrollbar-thumb { background-color: #44b853; outline: 1px solid slategrey; border-radius: 20px; } .cradit-crawalable-table thead { color: #303030; } .cradit-crawalable-table thead tr { background-color: #f2f2f2; border-radius: 10px; } .cradit-crawalable-table thead tr th { text-align: left; padding: 15px; border: 0; } .cradit-crawalable-table thead tr th:first-child { border-radius: 10px 0 0 0; } .cradit-crawalable-table thead tr th:last-child { border-radius: 0 10px 0 0; } .cradit-crawalable-table tr td { padding: 15px; border-left: 0; border-right: 0; border-bottom: solid 1px #f2f2f2; } .cradit-crawalable-table tr p { padding: 0; margin: 0; } .cradit-crawalable-table tr a { color: #44b853; padding: 0; text-decoration: none; } .question-box { padding: 50px; background-color: #1d4bb6; border-radius: 10px; color: #fff; margin: 50px 0; font-size: 18px; } .credit-card-saving { width: 100%; border-radius: 10px; border: solid 1px #dcdcdc; margin: 50px 0; } .credit-card-saving .title div { padding: 20px 50px; display: flex; align-items: center; justify-content: space-between; padding-bottom: 20px; } .credit-card-saving .title div h3 { margin: 0; font-size: 32px; } .credit-card-saving .title div img { width: 200px; } .credit-card-saving .title hr { width: 92%; border: #f2f2f2 solid 1px; } .credit-card-saving .content { display: flex; align-items: flex-start; justify-content: space-between; padding: 20px 50px; } .credit-card-saving .content .key-takeaways h4 { padding: 0; margin: 0 0 10px 0; font-size: 18px; } .credit-card-saving .content .key-takeaways ul { padding: 0 0 0 15px; } .credit-card-saving .content .rating h4 { padding: 0; margin: 0 0 10px 0; font-size: 18px; margin: 0; } .credit-card-saving .content .rating .stars { margin-top: 20px; color: #2c56bb; display: flex; align-items: center; justify-content: space-between; gap: 10px; } .credit-card-saving .content .rating .stars div { display: flex; } .credit-card-saving .content .rating .stars div img { width: 20px; } .credit-card-saving .content .btn a { background-color: #44b853; color: #fff; padding: 10px 50px; border-radius: 5px; text-decoration: none; display: block; } .credit-card-saving .why-we-chose-it { padding: 20px 50px; background-color: #f2f2f2; } .credit-card-saving .why-we-chose-it h4 { margin: 0 0 10px 0; } .credit-card-saving .why-we-chose-it p { margin: 0 0 20px 0; } .saving-account { width: 100%; border-radius: 10px; border: solid 1px #dcdcdc; margin: 50px 0; } .saving-account .title div { padding: 50px; display: flex; align-items: center; justify-content: space-between; padding-bottom: 20px; } .saving-account .title div h3 { margin: 0; font-size: 32px; } .saving-account .title div img { width: 200px; } .saving-account .title hr { width: 92%; border: #f2f2f2 solid 1px; } .saving-account .content { padding: 20px 50px; display: flex; align-items: flex-start; justify-content: space-between; } .saving-account .content .rewards-rate h4 { padding: 0; margin: 0 0 10px 0; font-size: 18px; } .saving-account .content .best-for h4 { padding: 0; margin: 0 0 10px 0; font-size: 18px; } .saving-account .content .best-for ul { padding: 0 0 0 15px; } .saving-account .content .rating h4 { padding: 0; margin: 0 0 10px 0; font-size: 18px; margin: 0; } .saving-account .content .rating .stars { margin-top: 20px; color: #2c56bb; display: flex; align-items: center; justify-content: space-between; gap: 10px; } .saving-account .content .rating .stars div { display: flex; } .saving-account .content .rating .stars div img { width: 20px; } .saving-account .content .btn a { background-color: #44b853; color: #fff; padding: 10px 50px; border-radius: 5px;

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[ad_1] The IRS processes huge amounts of data and documents each year. In 2021 alone, it processed more than 261 million tax returns and documents to supplement tax returns. That includes more than 83.9 million individual electronic tax returns. One of the best ways you can make sure your tax return makes it through IRS processes unscathed is by preparing for tax season. When you have the information you need and are ready to file your return as early as possible, you increase your chances of getting a fast refund. It’s important to prepare for tax season whether you’re planning to work with a tax pro or file your taxes on your own. Find out more about preparing for tax season below. We’ve got 10 steps you may want to consider following. In This Piece Know When You Can Start Paying Taxes Gather Important Documents Gather Information About Dependents Double-Check Personal Info With Your Employer Plan Ahead to Pay Taxes Plan Ahead to Practice Good Financial Habits with Potential Tax Refunds Renew Your ITIN Start Preparing Your Return Research Professional Tax Preparers Consider Planning for the Future 1. Know When You Can Start Paying Taxes If you owe taxes, you definitely need to know when to pay them. The IRS notes that you’re supposed to pay around 90% of your taxes throughout the year via withholdings on your paycheck or estimated quarterly tax payments. As far as returns go, the IRS started accepting 2022 tax returns on January 23, 2023.   2. Gather Important Documents Taxes require a great deal of paperwork. Get organized by gathering those documents as soon as possible. You can create a folder or basket where you store documents until you’re ready to use them. Because many tax documents, including W-2s and 1099s, might come electronically, create a digital folder where you can store those documents or be prepared to print physical copies for your basket.  Common documents you might need to file your taxes include but aren’t limited to: W-2s from employers 1099s from anyone who paid you miscellaneous, contract, or other relevant funds Documents showing medical, educational, childcare, or other expenses, especially if you’re itemizing  Statements regarding investments or mortgage interest payments Receipts You don’t have to keep every receipt throughout the year. You’ll need receipts to document deductible expenses, though, including charitable deductions. If the IRS ever audits you, they won’t just take your word for it.  3. Gather Information About Dependents You’ll need the names and Social Security numbers of any dependents you include on your tax return. If someone else can or might claim one of your dependents on their return, you need to know that. For example, if you’re divorced, it might be a good idea to work out which parent will claim a child or children for the 2022 tax year. You can’t both claim the same child for the same tax year. 4. Double-Check Personal Info With Your Employer Filing your tax return as soon as possible after the IRS starts processing returns can be a way to get a refund sooner—and avoid potential taxpayer identity theft. But you’re often at the mercy of employers and other institutions. Employers must send W-2s by the last day of January each year. Whether your employer sends your W-2 early or waits until the last day, you could receive it late if your employer doesn’t have the right address. To avoid this issue, check with HR to make sure all your information is up to date. This is actually a good exercise to practice with other businesses in December as well. Whether it’s a bank, your IRA provider or your child’s school, if someone is likely to send you tax documents, make sure they have your correct address. 5. Plan Ahead to Pay Taxes If you fall behind on tax payments, you could pay high penalties and interest. You might also put yourself at risk for IRS collection methods, which can include tax liens and levies.  One of the best ways to keep yourself from becoming delinquent is to plan ahead if you think you might owe taxes. Here are a few tips for doing so: Start a savings account to pay for your taxes. If you put money away starting as early as December, you can break a tax debt into smaller chunks and have enough to cover it by the April deadline. Consider maximizing contributions and charitable donations to reduce your taxable income. This might lower the total amount you owe. Consider consulting with a professional tax attorney or accountant to find out if you can reduce your tax burden in other ways. For most people, the deadline to pay federal personal income taxes for the 2022 tax year is April 18, 2023. However, the IRS did create an extension for those in disaster areas in California, Alabama, and Georgia. Individuals in these qualifying areas have until October 16, 2023, to pay taxes. 6. Plan Ahead to Practice Good Financial Habits with Potential Tax Refunds It’s a good idea to be prepared to practice good financial habits with any resources you get from your tax refund. Take some time to consider your budget, debt, and financial goals. Make a plan to use your tax refund to pay down debt, establish stronger savings, make an important purchase, or start investing. That way, you don’t spend it all quickly and without much to show for it at the end of April.  7. Renew Your ITIN If you use an Individual Taxpayer Identification Number to file your taxes and haven’t used it at least once in the past 3 years, it expires at the end of December the following year. That means if you didn’t use the ITIN on your 2019, 2020, or 2021 return, it will expire before you use it on the 2022 return. If your ITIN has middle digits of 88, 90, 91, 92, 94, 95, 96, 97, 98, or 99 and you haven’t taken action to renew it, it’s also expired. You’ll need to renew your ITIN, but you can

[ad_1] Do you think it’s possible someone stole your tax refund check? You wouldn’t be alone. In 2020, just under 1.4 million people reported cases of identity theft, and around 400,000 of those involved the theft of government benefits or documents—including tax refunds. The issue was concerning enough that the IRS started what it calls Identity Theft Central to provide information about identity theft. Find out how identity theft happens below. Then learn what action you should take if you believe your tax refund was stolen. How Does Identity Theft Happen? Identity theft occurs when someone gathers enough information about you that they can impersonate you to a sufficient degree to commit fraud. For example, if someone gets enough of your sensitive personal information, they can apply for credit cards in your name. They receive the cards after approval, run up balances and never pay them because the account is all in your name.  Another version of identity theft occurs when someone has enough information to file a fake tax return in your name. They get a refund in your name, and when you go to file your legitimate tax return, you find you can’t get a refund. Someone stole it out from under you. Some methods people use to get the information required to commit identity theft include: Imposter scams. The scammers email, call or otherwise contact you while pretending to be someone else, such as the IRS. They use that contact to try to get personal information out of you. Social media scams. Scammers comb social media, looking for personal information people might have shared. They also use direct messages to try to get information from you. Dark web databases. If your information is included in a data breach, it may be shared or sold to scammers online. Checking your trash. In some cases, scammers simply go through unshredded documents in the garbage to get the information they need. When someone uses information in this way to file a fake tax return, it’s a crime called Stolen Identity Refund Fraud. There are serious penalties for this crime. It’s always best to safeguard your private information as much as possible to reduce your risk of becoming a victim.  How to Know if Your Tax Refund Was Stolen The IRS provides a tool called Where’s My Refund? that lets you track the status of your refund. If you’re worried someone has filed a fake return in your name or tried to steal your refund check, use that tool to see what’s going on with your refund. You can also ask the IRS to do a refund trace to find out more about where the tax refund check or deposit went. The IRS will also notify you when more than one return is filed in your name for a particular year. If you file a tax return and receive this notice, there’s a good chance some fraud has occurred.  Important Steps to Take after Tax Refund Fraud If you’ve received a notice from the IRS stating that more than one return has been filed in your name, or if you believe your identity has been used fraudulently, you should act quickly. Follow the steps below.  1. Report the Fraud If your Social Security number was compromised and you think you may be the victim of tax-related identity theft, file a report with your local police and file a complaint with the Federal Trade Commission at www.identitytheft.gov or by calling the FTC Identity Theft Hotline at 1-877-438-4338. 2. File a Report With the IRS Once you’ve filed a police report, file an IRS Form 14039 Identity Theft Affidavit.  Print the form and mail or fax it according to the instructions. 3. Pay Your Taxes Be sure to continue to pay your taxes and file your tax return on time, even if you must do so by mailing in paper forms. 4. Check Your Credit Reports and Scores Just because you were first alerted to the problem through a false tax return doesn’t mean that’s where the ID theft started.  A sudden drop in credit scores can be a sign your identity has been stolen. You should also monitor your credit reports for activity that isn’t yours. You can get a free copy of your credit report from each of the major credit bureaus at AnnualCreditReport.com. You can also check 28 of your FICO scores and get regularly updated information about your credit reports and scores when you sign up for ExtraCredit. 5. Add Fraud Alerts to Your Credit Reports Contact each credit bureau and add a fraud alert to your credit report. You can do this online or via phone. A fraud alert makes it harder for someone to apply for credit in your name. 6. Close Any Fraudulent Accounts Reach out to creditors to close any accounts opened in your name fraudulently. You should also report them as fraudulent to the banks and lenders.  7. Change All Your Passwords Thieves know people use the same password for multiple websites and accounts. Change all your passwords immediately if you believe you’re the victim of identity theft or fraud. It’s also a good idea to change your passwords regularly, even if you aren’t a victim of identity theft.  8. Follow Up on Your Case If you informed the IRS about taxpayer ID theft and didn’t receive a resolution, contact the Identity Protection Specialized Unit at 1-800-908-4490 about your case. If you’re experiencing financial difficulties because of the delay, you can reach out to the taxpayer advocate service, an independent organization within the IRS, at 877-777-4778.  9. Stay Calm & Be Patient A typical case of ID theft can take an average of 120 days to resolve, according to the IRS. Remember that the average might not reflect your case, and it could take a year or more to resolve it. Just remember, the IRS will eventually pay you your refund, but if you’re experiencing financial difficulties because of the delay, you can contact the taxpayer advocate service, an independent organization within the

[ad_1] Key takeaways: Net worth is one of the metrics that shows a person or household’s overall wealth The average American net worth is $748,000, but the median for households is $121,700 Americans 65 to 74 have the highest average net worth at $1,217,700 Those with a college degree have the highest net worth compared to those without one The median net worth for White Americans is seven times higher than Black Americans The Federal Reserve conducts a survey every few years to see where Americans stand financially. As of 2019, they found that the average American net worth was $748,000. The median net worth for American households was $121,700 during this same time. So, where do you stand? Knowing your net worth and how you compare to other Americans can be a good way to see where you stand financially and how secure you are in your future. Here, we’ll go over the average American net worth by age, education, household type, and more. This will give you a rough idea of how you compare, and then we’ll give some actionable tips you can use to increase your net worth and improve your financial well-being. Table of contents: What is a net worth? Key American net worth statistics Average net worth by age Average net worth by education level Average net worth by housing status Average net worth by family structure Average net worth by state Average net worth by race Average net worth by location How to increase your net worth Why your net worth matters What Is Net Worth? Your net worth is comprised of your assets and your liabilities. Your assets include anything you own that’s worth money, which includes the following: Checking and savings account funds Investment accounts Retirement accounts Stocks and bonds Vehicles and homes you own Liabilities are your debts, such as: Bank debt Credit card debt Mortgage loan Vehicle loan Student loan debt Key American net worth statistics How much you save and invest aren’t the only contributing factors to your net worth. Here are some of the key findings and factors for the average net worth of Americans as reported by the Federal Reserve. Average net worth by age As of 2019, the median net worth of Americans was $121,700 and the mean was $748,800. The median is the main number to look at because it helps separate outliers. For example, if you had $100 and someone had $5, the average (or mean) would be $52, but that’s not an accurate picture because the person with $5 is so far from that average number. With net worth, the median helps separate the extremely wealthy from the average American. Here, we’ve listed both the mean and median net worth of Americans by age: Age group Median net worth Mean net worth Under 35 $13,900 $76,300 35 to 44 $91,300 $436,200 45 to 54 $168,600 $833,200 55 to 64 $212,500 $1,175,900 65 to 74 $266,400 $1,217,700 75 and older $254,800 $977,600 What’s a good net worth for your age group? While you might be looking to increase your net worth, it’s helpful to remember that everyone’s situation and goals are different. Your ideal net worth should be the amount you need to have to live comfortably and pursue the activities that you enjoy. As we’ll cover in upcoming sections, education, family structure, race, and more all statistically influence net worth. In fact, Georgetown University published a study showing that one of the primary predictors of wealth was being born into a family with a high socioeconomic status (SES). The report found that these children often receive the material support they need to increase their scores, earn college degrees, and work in good entry-level jobs as young adults. Average net worth by education level Education is one of the primary predictors of wealth in America, and those with a college degree have a median net worth of over 1,400 percent more than those without a high school degree. These individuals also have a median net worth of $219,400 more than those who only have some college. Education level Median net worth Mean net worth No high school diploma $20,500 $137,800 High school diploma $74,000 $305,200 Some college $88,800 $376,400 College degree $308,200 $1,519,900 Average net worth by housing status Owning a home is one of the primary ways that people increase their net worth. In fact, many people buy homes as an investment. With every renovation, the value of a home typically increases, depending on the economy. During times when the housing market is performing well, a person’s net worth can grow significantly with homeownership. Housing status Median net worth Mean net worth Renter or other $6,300 $95,600 Homeowner $255,000 $1,102,100 Homeowners have a median net worth of nearly $250,000 more than renters. To buy a home, you need a quality credit score as well as the funds for a down payment.  Average net worth by family structure The Federal Reserve charts how different family structures vary in net worth as well, and it shows that couples without children have a significantly higher net worth than single Americans. This makes sense because these are typically dual-income households without the additional expenses of raising children. Family structure Median net worth Mean net worth Single (less than 55 years old), no child $15,700 $131,760 Single with child(ren) $36,710 $284,620 Single (55 years or older), no child $119,500 $444,900 Couple with child(ren) $166,300 $879,210 Couple, no child $251,700 $1,314,550 Average net worth by state Empower recently ran a survey of their users to discover the average net worth from state to state. Currently, California has the highest average net worth at $884,003, followed by Connecticut and Washington, which are at $873,746 and $865,309, respectively. The state with the lowest average net worth is North Dakota at $339,955. In a section on why some states rank high or low, Todd Burnaford at Empower says, “Not surprisingly, some of the states with the largest numbers of millionaire households