Category: Money

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VA Stimulus Check On The Way

The 2009 stimulus package signed by president Obama contains quite a few financial stimulus for many different parts of the population.  Infrastructure spending, tax cuts make up most of the bill but one of the key aspects to the package is a special cash payment.  This won’t be like the general stimulus check of last year but will be given to select groups such as retired veterans on disability.

$250 stimulus check in 2009

A one time payment of $250 will be paid out in 2009 for people in the following groups:

  • People currently receiving Social Security.
  • State government retirees not eligible for Social Security.
  • Veterans receiving pensions from the Department of Veteran Affairs.
  • People receiving SSI payments. Supplemental Security Income payments are for people who have little to no income and is intended to meet the basic needs for food, clothing and shelter.

When will I get my stimulus check?

Treasury is supposed to start sending out these checks as soon as possible.  This site will be updated when more information becomes available.

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Save Money With Zero Percent Balance Transfer Credit Card Offers

Everyone knows what credit cards are…unfortunately some of us know all too well how hard it can be to pay off the balances.  Once you get in the habit of only making the minimum balance on your credit card balance then it is very difficult to lower the debt because the interest rates are so high.  They often range from 18% to 30% annually which is very high.

If you owe $10,000 on a credit card that has 27% interest rate – your total interest payments if you only make the minimum payment will be approximately $2700 which is over a quarter of the original loan amount.  This is ridiculous – in order to deal with this situation you need to be able to pay significantly more than the minimum payment and be willing to pay off the balance in a reasonable amount of time (ie 6 months or less).  If that is too hard then you need to consider alternatives – and no I’m not talking about bankruptcy or missing payments!

Find out more about zero percent balance transfer credit card deals.  Not really sure what a balance transfer credit card is?

Transfer your high interest debt to a zero percent balance transfer credit card

Certain credit cards offer a program where you can transfer your existing high-interest credit card debt to a new credit card that has a zero interest rate for a certain period of time (usually 6 months to a year).  The idea is that you get a “grace” period where you can avoid any interest and instead make payments entirely to the principal of the loan.  This is the most efficient way to pay down or at least significantly reduce high-interest credit card debt.

This sounds too good to be true!

There is no such thing as a free lunch – the zero percent offer will only be around for a while.  After the offer expires then the interest rate will be much higher.  This is why it is so important to pay off as much as you can while the interest rate is zero.

Are there any balance transfer fees?

The transfer will be done for no charge or for a small percentage such as 3%.  It’s important to make sure you understand exactly what fees are involved.  Even if the transfer charge is 5% then you are going to save a lot of money in interest.

What is the catch?

There are a couple of things to watch out for with zero balance credit cards:

  • Don’t make any purchases with them.  The zero percent interest rate usually only applies to the amount transferred – not to any new purchases.  The sneaky thing is that the credit card companies will often apply any payments to the transfer amount (accruing at zero percent) and none to the purchase amount so you will pay a lot of interest for any new purchases.
  • The zero interest rate doesn’t last forever.  Whether it’s 6 months, 12 months or 18 years (this will never happen) – make sure you know exactly when the zero rate disappears and make plans to either pay off the loan, move to another zero balance or just psych yourself up for a higher interest rate.
  • Make the minimum payment on time.  Yes, there is still a minimum payment.  If this is missed then there may be fees and you could lose the zero interest rate.

Find out more about zero percent balance transfer credit card deals.

Recommended Zero Percent Balance Credit Card

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Tennessee Unemployment Benefits Extension – 20 More Weeks?

Update – Feb 7, 2011 – Legislation to add extra weeks for 99ers

Democratic Reps. Barbara Lee (Calif.) and Bobby Scott (Va.) are reintroducing legislation this week to provide additional weeks of unemployment insurance benefits for “99ers,”

Main article

Part of Obama’s 2009 stimulus package was extra funding for states to extend the length of unemployment benefits if necessary.  Most states have a fixed number of weeks available for benefits but can increase the number of weeks if the economic climate is bad enough.  This is usually measured by the unemployment rate.

The unemployment rate in Tennesse was 9.9% for April 2009 which is up from 6.0% in April of last year.  This is the highest unemployment rate in 25 years.  Tennesse has qualified for $141 million to pay for extended benefits as well as upgrades to the benefit infrastructure.

What unemployment benefits are available now?

Currently Tennessee will pay benefits for 26 weeks which is the normal payout period.  There is another 33 weeks which is available because of the 2009 stimulus package for a total of 59 weeks.


Unemployed workers can get up to $275 per week in benefits plus a bonus $25 a week from the federal government for a total of $300 per week.

Will the unemployment benefits be extended by another 20 weeks?

[edit – please note that this bill has been passed]

Currently there is a bill called HB 2324 which if passed will increase benefits by up to 20 weeks.  If the claimant has any children the bill will also add on $15 per week per child up to 3 kids.  This bill has not been made law yet but you can check on the status of the bill here.  At the moment (May 22) it says that it is scheduled for the Finance, Means and Ways committe for May 27.  This bill was first introduced on Feb 26 so it is taking a long time.

Once the bill is passed by the FMW committee then it will go to the house and senate and lastly the governor.

There is a very good chance that unemployment benefits will be extended by 20 weeks however the slow machine of politics means that it might take a while.

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New York State Extends Unemployment Benefits By 13 Weeks

Update – Feb 7, 2011 – Legislation to add extra weeks for 99ers

Democratic Reps. Barbara Lee (Calif.) and Bobby Scott (Va.) are reintroducing legislation this week to provide additional weeks of unemployment insurance benefits for “99ers,”

Main article

On May 12, the Senate finance committee voted and unanimously approved changes to legislation which will extend benefits to unemployed New Yorkers. There are approximately 120,000 unemployed people in New York currently receiving benefits which will run out before the end of May. These changes will extend the benefits by 13 weeks which result in a total of 72 weeks.

New York was given $645 million in federal stimulus package money to spend on unemployment benefits and administration – so far New York along with several other states has been very slow to institute changes to accomodate the federal aid. The main delay in New York was a desire to change the whole unemployment system to increase the maximum weekly benefit (currently $430) which is the lowest in the area.

These changes have not been finalized yet since the legislation now has to go the Senate floor for a full vote. Once it is passed by the legislature it has to be approved by Governor Paterson. It is expected that this will take place by the end of next week so that there will be no disruption in any unemployment insurance benefits.

Here is a quote from Senator Onorato who sponsored the bill:

“I could not be more pleased that this vital legislation, which will provide an additional 13 weeks of unemployment benefits for New York’s jobless, is now moving swiftly towards becoming law,” said Senator Onorato. “Unemployment benefits for some 56,000 jobless New York residents are slated to begin running out next week, with at least 5,000 more a week after that. Passage of this legislation will provide unemployed New Yorkers with critically needed financial assistance during very difficult economic times. This is a win-win for unemployed workers in need of aid, as well as for local economies that will benefit from the money these New Yorkers will spend on food, rent and other basic needs in their communities.”

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New York Unemployment Extensions – 13 More Weeks Of Extended Benefits?

Please note the comments are closed on this post because of technical difficulties. The discussion has been moved to this post.

[update on May 12  New York extends unemployment by 13 weeks]
[update on May 19 – Unemployment bill to extend EB by 13 weeks has been passed by legislature].

The state of New York has been hit pretty hard by the current economic climate and unemployment levels have been rising.  As a result of these  high unemployment rates New York state has qualified for unemployment benefit extensions which were introduced as part of the 2009 stimulus package.

Unemployment benefits currently available in New York

At the moment there are a total of 59 weeks of unemployment available to New Yorkers:

  • 26 weeks – These are the regular unemployment benefits which are available regardless of the economy.
  • 33 weeks – This is Emergency Unemployment Compensation (EUC) which is made up of a 20 week segment followed by a 13 week segment.  Emergency benefits will be paid by the same method as the regular benefits (direct deposit or check).

Will there be another 13 weeks of extended benefits?

The state government including Gov. David A. Paterson, is currently working on this extension which would involve about $645 million of federal money along with state money for funding.  The reason for the delay is that New York, along with several other states have laws which need changing in order to accept the federal funding.  If the legislation is passed it will provide an additional 13 weeks of benefits to approximately 120,000 New Yorkers for a total of 72 weeks of unemployment benefits.

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2009 Social Security Stimulus Check Will Be Arriving In May Or Early June

As a result of the 2009 federal stimulus package (otherwise known as the American Recovery and Reinvestment Act) there will be a $250 stimulus check paid out to all Social Security recipients in 2009. You might have already received a letter from the Social Security Administration telling you about this one-time payment.

The Social Security Administration is planning to send out these payments during the month of May so if you are eligible for this special payment then expect to get the $250 sometime in May or in the first week of June. Please don’t call the SSA unless you haven’t received your check by June 4.

The maximum amount per individual is $250 even if that person qualifies under different programs (SSI, veterans’ compensation, veterans pension payments or railroad retirement benefits). Couples can qualify to receive up to $500 ($250 each).

You will still get your regular Social Security payment as always.

Who is eligible for the $250 check?

To get the $250 you must meet the following criteria:

  • Currently receiving Social Security.
  • Must have been eligible for benefits at any time in November 2008, December 2008 or January 2009.
  • The person receiving the Social Security must have an address of record in one of the 50 states, the District of Columbia, American Samoa, Puerto Rico, the U.S. Virgin Islands, Guam or the Northern Mariana Islands.

What do I have to do to get my $250 Social Security payment?

Nothing – if you qualify then the check will be mailed or direct deposited to you automatically. If you haven’t received the payment by June 4 then call the SSA.

How will I get my $250 payment?

The extra $250 payment will be paid to you in the same method that is currently used to your Social Security or SSI benefit. If you currently receive your regular benefit by check, your one-time payment will be made by check. If you receive a monthly direct deposit or Direct Express® debit card payment, that is how you will receive your one-time payment.

Social Security information website

If you wish to look at the SSA (Social Security Administration) website then please go to

Social Security Stimulus Check 2010 – FAQ

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$250 SSI 2009 Stimulus Check Will Be Arriving In May Or Early June

As a result of the 2009 federal stimulus package (otherwise known as the American Recovery and Reinvestment Act) there will be a $250 stimulus check paid out to all recipients of SSI (Supplemental Security Income).

The Social Security Administration is planning to send out these payments during the month of May so if you are eligible for this payment then expect to get the $250 sometime in May or in the first week of June. Please don’t call the SSA unless you haven’t received your check by June 4.

The maximum amount per individual is $250 even if that person qualifies under different programs (Social Security, veterans’ compensation, veterans pension payments or railroad retirement benefits). Couples can qualify to receive up to $500 ($250 each).

To qualify for the SSI one time payment of $250 you must have been receiving SSI payments during the period of November, 2008 and January, 2009.

You will still get your regular SSI payment as always.

SSI information website

If you wish to look at the SSA (Social Security Administration) website then please go to

The following websites are not valid and should be avoided – www.ssi.gov and ssi.gov.

Info on Social Security Stimulus Check 2010 – FAQ

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IRS – Late Filing Tax Return Penalties – Need Some Motivation?

If you are still working on filing your taxes with the IRS after the April 15th deadline or perhaps you haven’t even thought about doing your taxes then you need to read this article – all the various financial penalties will be outlined.  Once you have finished this article, then you should be more motivated to finish your tax return.

Read about the 2010 tax deadline for your 2009 taxes.

If you thinking about buying tax preparation software then consider software programs such as TurboTax or TurboTax Canada (formerly QuickTax).

Failure to file penalty

This is the big one – if you don’t file your tax return or an extension by April 15th then you will get nailed for the failure to file penalty.  This also applies if you get an extension to file your tax return and miss the new deadline.

How much is the failure to file penalty?

The penalty is 5% of the tax balance due per month up to a maximum of 25%.  A new month starts on the 15th of each month so if you file on May 18th then you will pay 2 months penalty or 10%.  This is the biggest penalty by far so it’s important to file your tax return as soon as you can even if you don’t have a penny to pay the money owed.  If you don’t owe any money then there is no penalty.

For example if you owe $1000  and file your taxes 1 week after the deadline then your failure to file penalty will be $50 ( 5% of $1000).  Keep in mind that if you file more than 60 days past the deadline then the minimum failure to file penalty will be your unpaid tax or $135 whichever is smaller.

If you owe $1000 and don’t file for 5 months or more then the failure to file penalty will be 25% or $250!

Late payment penalty

The late payment or failure to pay penalty is applied when you have filed your tax return but didn’t pay the full balance owed.  In that case the penalty will be 0.5% of the balance due per month.  There is no maximum amount for this penalty so it can add up.  If you can’t pay your full balance by April 15th then you should try to pay as much as you can to reduce the penalty.  There is no late payment penalty if you don’t owe any tax money.  If this penalty is applied then the late filing penalty drops to 4.5%.

For example if you owe $1000 and you don’t pay for 6 months then the penalty will be $30 ( 6 x 0.005 x 1000).

Interest charged on balance due

The last penalty for late payment is interest – currently the IRS charges 4% interest on late payments.  This interest rate can change quarterly.

For example if you owe $1000 and pay 6 months late – then the interest charge will be $20 (2% of $1000).

What are my total charges on $1000 paid 6 months late?

Failure to file penalty:  4.5% of $1000 per month for 6 months = $270.  (This is only 4.5% because the late payment penalty is applied).

Failure to pay penalty:  0.5% of $1000 per month for 6 months = $30.

Interest:  4% annually for 6 months on $1000 = $20.

Total = $320 – in other words your tax balance due will have increased by 32%.  So get that return in!

More information

What happens if you didn’t file your taxes?

What if I messed up my taxes?

What should I do if I can’t pay my taxes?

What happens if you don’t file your tax return?

Do I need a tax attorney?