Blogging Documents

In the midst of the sub-prime mortgage meltdown the Federal Reserve has made several cuts in interest rates. The most recent cut on March 21, 2008 brought the short-term interest rate to 2.25%.

You might be asking yourself “What is the short-term interest rate anyway and why should I care?” To be honest, I’m not entirely sure… but I’m trying to figure it out.

According to CNNMoney.com Ask the Expert article What the Fed means to me: How are individuals affected when the Federal Reserve raises interest rates?(March 21, 2005) the Fed raises and lowers the target fund rate, which in turn affects everything else. “The biggest effect is on short-term rates, such as those charged on adjustable-rate mortgages, and credit cards as well as the rates banks pay on money-market accounts and short-term CDs…. Thus, people who already have balances outstanding on their credit cards or home equity lines will face higher interest charges, while people considering signing up for plastic or a home equity line will pay a higher rate.”

Note this article was written in 2005 as rates were going up, not down. As it stands now, those suffering over the rise of their adjustable rate mortgage (ARM) will feel some relief. And if you’re anything like a close family members of mine while the rates are low everything from houses to cars will be refinanced. But be careful, many banks are increasing fees to compensate for the lower rates.

Still confused on what all of it means? The Federal Reserve offers an online tutorial, Financial Education for All: Interest Rates, that provides a greater explanation of interest rates and the role the Fed plays. Another great resource for tracking the Fed and staying on top of what’s happening in the U.S. and World economies is Liber8. Liber8 keeps you apprised of current economic indicators (another subject for another posting), provides current economic research, and even tracks U.S. and world inflation.

Ultimately, what we know and do as consumers effects what’s going on. So, it’s good to have at least a rudimentary understanding of how the U.S. economy works and what the talking heads mean when they mention all of those rates.

Tulsa World reporter Phil Mulkin’s Action Line for Tuesday March 4 offered a list of tax credits available for qualifying tax payers. Tax credits are as they sound, a dollar for dollar credit on taxes paid or owed. It should be noted that not all tax credits result in a refund.

Here is a list of common tax credits –

• Child and Dependent Care Credit
• Child Tax Credit
• Qualified adoption expenses
• Credit for the Elderly or the Disabled
• Retirement Savings Contribution Credit
• Tax benefits for education

Yesterday the Nation hosted yet another round of primaries. Texas, Ohio, Vermont and Rhode Island voters went to the polls to cast their ballots for Presidential nominees, and Tulsa hosted it’s own primaries for City Council.

While the political pundits may claim that the front runners have been decided, this might not be the case – at least not on the democratic side. There are still 7 more primary dates until the Conventions. To keep up on all of the happenings with the 2008 Presidential election, NPR has a great interactive map with primary dates, polling results, and a running total on delegate distribution.

Tulsa County election results can be found in the Tulsa World or on the Tulsa County Election Board website.

For many Americans, come May it might feel like an early birthday or perhaps just some much needed economic relief. Why? Beginning in May the Treasury Department will begin mailing the economic stimulus rebate checks. Rebate checks will only be sent to families or individuals who file a 2007 federal tax return.

To find out more about the stimulus rebate visit the Economic Stimulus Payments Information Center on the IRS website.

You can contact the IRS directly with questions about the rebate program or taxes in general toll free at 1-800-829-1040. When you phone the IRS you speak to a live, friendly person who can provide answers to your tax questions.

The digital television conversion will officially take place on Feb 17, 2009.

Beginning Jan 1, 2008, individuals who have analog televisions will be able to request a $40 coupon to be put toward the purchase of a converter box. Each household can request 2 coupons, which cannot be combined and must be used within 3 months of issuance.
http://www.ntia.doc.gov/dtvcoupon/PreparingForTheDTVTransition.pdf – link to pamphlet explaining the coupon program.
Beginning Jan 1, 2008 people can phone 1-888-DTV-2009 or 1-888-388-2009 to request a coupon.

Here are a few other sites that might prove helpful…
http://www.dtv.gov/
http://www.ntia.doc.gov/dtvcoupon/index.html
http://www.ntia.doc.gov/otiahome/dtv/FAQ_v6_07212006.htm