“The hardest thing to understand in the world is the income tax.”
-Albert Einstein
The easiest way to answer this question would be: Somewhere deep in the 7th ring of Dante’s inferno. But in all seriousness, it comes from a complex tax formula. For example, if an individual makes over $400 biweekly but not over $1,392 then you take 12.40 + 15% x Amount over 400. There are different ways of withholding, but that’s the simplest. When you start a job they have you fill out a W-4. The exemptions claimed, the number of kids you have, or if you are married all contribute to how much you get to wave goodbye to for Federal Tax Withholdings every time you collect your paycheck.
It’s not so bad considering you will see that money again; perhaps not in its entirety. Refunds are not always the way to go. I mean if you don’t claim so many exemptions, some of that money can go right into your savings and begin compounding interest. Get the right number of exemptions and keep them update them with your life situations and you won’t need to worry about your refund every year.
This year, The American Recovery and Reinvestment Act has a provision called “Making Work Pay”. This stipulation provides a refundable tax credit up to $400 for working individuals and an $800 one for married couples filing jointly. The credit is calculated at a rate of 6.2 percent of the earned income. This became effective as of 3/10/2009. Sadly the credit stops as the AGI (adjusted gross income) reaches excess of $75k for single people and $150 for those married.
“No credit? Bad credit? Repossession? No Problem. Come on down!”
I hate to burst the bubble, but these guys at the shady car dealerships don’t have it right. Your credit history can determine everything: whether you get a good job, a decent apartment, a deal on your cell phone or reasonable rates on your insurance. Not to employ scare tactics, but a late payment, maxing out your credit cards or defaulting on a loan can haunt you for years. Building good credit in a safe way is a task that may take some time. There are steps involved too.
If you don’t already have one, establish a savings account. Lenders see this as a sign of stability. Starting out without a credit history, you may need to piggy back off someone else’s credit. Usually, parents or spouses are the co-signer. Remember any delinquencies on the account are going to be adversely affecting them and not you.
They used to tell college kids to stay away from those booths on campus. Well all saw them, the ones offering credit card to all. I signed up for a few just for the free t-shirt and them never used them or quickly cancelled them. Not exactly a good practice. But college is a time to build credit. So don’t avoid the booths. Just find yourself a card with a low APR and make your payments on time. Pay it off every month if you can. The credit card companies call these people, the ones who pay in full every month, “deadbeats”. Ironic, right? But I digress. Secured credit cards are always a good start. You can give yourself a limit in the amount of your deposit. So you’ll never have issues. Also, carrying a balance won’t hurt your credit and not carrying one doesn’t either. Just pay on time.
Identity theft is the newest version of robbing your bank. But there is no FDIC help on it this go around.
“Innocent victims of identity theft sometimes do suffer losses. And if the crime is not detected early, people may face months or years cleaning up the damage to their reputation and credit rating, and sometimes they lose out on loans, jobs and other opportunities in the meantime.”
That’s really all they offer in the area of identity theft clean-up. Prevention is another story. Prevention is the jest of this post and this site.
It is baffling that individuals are so reluctant to recognize the pending threat. Just because you shove your head in the sand doesn’t elevate the problem. This is a call to arms people! In 2008, 10 million people were deemed victims of identity theft. That’s 22% more than the previous year. The degree of the felony varies from state to state as does the liability of the action. Restitution of the funds may not fix the credit history that you will have to deal with for the years to come. But if you protect yourself, the problem goes away:
- Protect your Social Security number (SSN), credit card and debit card numbers, PINs (personal identification numbers), passwords and other personal information.
- Protect your incoming and outgoing mail.
- Keep your financial trash “clean”.
- Keep a close watch on your bank account statements and credit card bills.
- Avoid identity theft on the Internet by using secure avenues like Paypal.
- Exercise your new rights under FACTA to review your credit record and report fraudulent activity.
- Make sure your financial institution has a no-liability policy
The breakdown for the stats behind identity theft is not pretty. About 10% of the entire population of the United States has had their identity “hijacked” to date.
Our goal at ProtectIdentity is to raise awareness with the hope that doing so will help to stop the rapid increasing of this hanis crime.
If you think you’re safe from identity theft, you should talk with the Spanish Prime Minister.
E-criminals have been setting their sights higher and higher, it seems. Recently, hackers found their way into the Spanish Prime Minister’s personal website. The results are a mix of viral humor and political protest.
Replacing the Prime Minister’s photo with that of slapstick character Mr. Bean, the hackers caused a uproar among Spanish politicians and civilians alike. They did not stop there, altering the text on the website as they saw fit. The full story can be found here.
On the surface, the gag is just a rabble-rousing act of vandalism, not unlike spray painting a wall with one’s views. The reality of the incident is far more serious.
Thanks to the Internet and modern hacking technology, nobody is safe from identity theft. Not the Prime Minister of Spain, and certainly not you. It’s a harsh reality that becomes more frightening by the day. The possibilities for e-criminals are virtually limitless.
Truth be told, the Prime Minister of Spain, and the people of Spain for that matter, got off pretty easy. With access to such reputable websites and profiles, hackers have the ability to do far worse things than simply poke fun.
In the wrong hands, access like this could yield disastrous results. On a small scale, identity theft can mean stolen money and information from an individual person. On a larger scale, identity theft can put the security of those in power, and the countries they run, at great risk.
It’s no secret by now that the Internet is a playground of sorts for hackers and identity thieves. It is possible to stay protected? Will it ever be? The future of the Internet, and your security while using it, are all question marks at this point.
But do not throw caution to the wind and surf the web blindly. Identity theft is very serious, and you are at greater risk now than ever before. It’s important to know this, and to make a daily effort to keep your information safe and secured.
It’s no secret that Facebook is popular. The number one social networking site, Facebook has swept the world with its convenience and usability in connecting with people.
But nothing good comes without a price. For users of Facebook, that price is the end of privacy.
It seems for avid Facebook users, the idea of privacy jumped out the window a long time ago. Now, nothing is exactly sacred in the lives of individual Facebook users. Personal information, photos, and even up-the-minute whereabouts are all common knowledge to those connected to each other through the site.
In some cases, though, the risk goes even deeper.
According to one story, the largest risk attached to Facebook is identity theft. If someone were to hack into your account, they can become you in the eyes of your friends and family. Once in this position, the hacker can use your identity as they see fit.
It’s a dangerous rope to walk, this Facebook thing. But now, as an indispensible part of many a user’s day, the site surely isn’t getting shut down any time soon.
Knowing this, it becomes crucial for Facebook users to stay alert and safe from the dangers that come along with being connected.
For Facebook users, it’s crucial that passwords and login information are kept as private as private can be. Not unlike an online banking account or e-mail address. Nobody – not friends, not family, not anybody – should have access to your account.
Also, you should be taking full advantage of the privacy settings for your account. It’s recommended that you keep your account private rather than public, as to keep your contact information and photos accessible to friends only. Having this information private, specifically phone numbers and photos that are less than flattering, is a move you won’t regret.
By now, Facebook is such a routine venture for so many people that it may seem like a riskless one. But every day that you have a Facebook account is a day at risk. It’s vital that you know this, and take the necessary precautions to keep your account and your identity protected.