This guide will provide you with actionable and effective financial-based tips that will help you to effectively plan, save money, spend in a wise manner, and maximize monetary value on your trips – it does not matter if you are planning a local getaway for the weekend or an adventure where you will be required to travel internationally. These strategies will allow you to travel on a more frequent basis and will help you travel luxuriously – without completely destroying your long-term goals associated with your finances. 

Why Does Financial Planning During Travel Matter?

It is not at all uncommon for most of us to delay travels that we dream of experiencing due to the belief that it will be quite costly. If you take the time to plan your trip, you will find that traveling does not have to be expensive. You just need to have a strategy in place, and you have to follow that strategy.

If you discipline yourself financially before, during, and immediately after traveling, you will find that your adventure is generally stress-free, it protects your Savings, and it protects your credit score. If you plan poorly, you will find that it is possible to overspend on flights, fees, and/or emergencies that may occur during your travels. A dream vacation can quickly turn into a financial nightmare if not planned appropriately. 

You should initiate the planning process by evaluating your current financial situation. You can start by doing a basic calculation of your income each month, your expenses, and the income that you have that is disposable. This will let you come up with a figure you can use to determine how much money you can allocate to your travels each month or even each year.

Travel savings should be treated like a bill that is non-negotiable. You can do this by transferring these funds to a dedicated high-yield savings account. By doing this, you are taking your travel money and switching it from a type of expense that is impulsive to one that is a planned investment. You can even look at it like an investment in your mental and physical well-being. 

How to Make a Travel Budget That is Realistic

Making a travel budget is considered to be the foundation of affordability. You should make it a goal to create this type of budget. You should start by breaking the budget down into four distinct categories:

1. Accommodation
2. Activities
3. Food
4. Transportation

In addition to this, you should also designate the categories of travel insurance and miscellaneous, which could cover items such as tips, purchasing souvenirs, and cards for electronic devices, etc. The following provides a detailed breakdown of these categories so that you are better able to break down your budget:

1. Activities – You will want to prioritize options that are either low in cost or completely free. 
2. Attractions – You should consider state and national parks and walking tours. 
3. Transportation – This could include flights, rented vehicles, trains, buses, and even fuel costs. You may use online cost calculators to allow you to come up with average costs. One of the best is Google Flights. 
4. Food – With food, you should buy some groceries, including costs from eating out, and include the costs of any associated tips when eating out. 
5. Lodging – Here, you will want to include the costs of hotels, motels, Airbnbs, and similar accommodations. 
6. Extra – In this category, you should add up to approximately 20% extra to handle additional expenses or costs incurred due to inflation. 

In addition to the above, depending on where you travel and the activities that you partake in, you should consider conversion fees for currency, costs associated with a Visa, and any medical needs that may eventually become necessary. When traveling, you should always research current reports from travelers. For example, if you are planning an international trip to engage in bucket-list activities, you may need up to $15,000.00. It all depends on the location, the length of your stay, and the activities that you take part in. You may use budgeting apps or even spreadsheets to assist you in tracking all expenses. If you discover that your trip will cost $6,000.00, divide the number of months by your total costs, and that will help you determine your contributions each month. 

Before Your Trip 

Saving money on a consistent basis makes travel a sustainable task. You should open up a savings account that is known as “high-yield” in order to save exclusively for your savings. You should automate regular transfers to this account. Consider the following strategies to achieve success:

1. Stop Unnecessary Spending – You should cut out subscription services, stop eating out, and even sell items that you are not using. 
2. Book your trips during the “off-peak season” in order to save up to 70% on transportation and accommodations.
3. Set up price alerts on sites that compare accommodations and vehicle rentals. 
4. Earn additional money with side gigs or sell your skills online. 
5. When using credit cards that have rewards and provide points, cash them in. 
6. Build an emergency fund first – one that has from three months to six months of expenses – before moving money into a travel fund. This is highly beneficial should a job loss, medical emergency, or trip cancellation occur. 

Smart Booking Strategies 

When it comes to a travel budget, you should know that transportation is often the largest part of a travel budget. You should book your flight up to 3 months in advance for the best deals in domestic travel. If you are traveling internationally, you should book your flight up to eight months in advance so that you are better able to save money. You should also make an effort to be flexible when it comes to the dates that you travel. For example, flights on Tuesdays and Wednesdays are typically cheaper than flights on other days of the week, especially on the weekend. 

When booking flights and other types of accommodations, you should use comparison websites. Examples include Skyscanner and Google Flights. There are many carriers that are known for their low costs. Examples include Frontier Flights and Spirit. Always remember to include baggage fees when planning your flight. If you need to fly internationally, you should opt for what is called “consolidator tickets” to save even more money. 

When booking lodging, it may be best to avoid hotels and opt for vacation rentals, guesthouses, hostels, and if you must select from hotels, use those that will offer you a rewards program or will allow for direct bookings. There are many hotels that will offer many free perks – like a free night or more, breakfast, and other services. The more you get for free, the more you save. 

Money Management During Travels

Once you are on your trip, look for ways to reduce your expenses on a daily basis. For example, it is cheaper to use public transportation than to use Uber or taxis, or even vehicle rentals. In many cities, you can get a day pass or a transit card that offers unlimited usage on public transportation systems. If you have a short distance to go, you may walk or use a bicycle. 

Food is considered to be a major expense while traveling. You should determine where the locals eat, shop at markets, and limit the amount of fancy dinners that you partake in. Street food vendors often offer relatively cheap food, and casual eateries are often the most affordable. You should also consider packing snacks and carrying a refillable water bottle to ensure proper – and inexpensive – hydration. 

When it comes to attractions, you should consider free days at museums, zoos, national parks, free tours, and even city passes. When managing money, take the following steps:

1. Use ATMS and withdraw larger amounts to reduce the amount that you pay on fees. 
2. Carry a credit card that has a “no-foreign transaction fee”.
3. Do not ever exchange money at airports because their rates are often very poor. 
4. Pack light to avoid baggage fees and do not check any bags. 

Conclusion 

It is possible to travel on a budget, but you must practice discipline and make decisions that are smart. It all has to start with setting a budget that is realistic and saving money on a consistent basis. The tips contained in this guide will help empower you to safeguard your finances while traveling. For more financial information, you may contact us here at Somerville Bank today by visiting one of our many locations: https://somervillebank.net/locations/

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Preparation Tips

The following outlines a list of tips that are highly beneficial in total preparation for tax season:

1. Go to IRS.gov – The website, IRS.gov is available 24 hours a day, 7 days a week. If you need help figuring out how to get ready for tax season or have any questions or just want to look up information. Millions of people in the United States utilize this website to learn more about tax solutions and the website even allows you to file your taxes and pay any due taxes.
2. Gather up All Records – It is important to keep up on all associated records because it helps make a tax return much easier to complete. Having good, solid records and being organized can help in finding deductions and credits that you may qualify for.
3. Online Tools – When getting your taxes together, there are many online tools that you can use to help you gather up everything that you need, and teach you how to complete your taxes without the assistance of a professional.
4. Highly Reputable Preparer – There are many tax preparers out there today. Not all of them have the same level of experience, though. When preparing for your taxes, you should use the IRS Directory of Federal Tax Return Preparers in order to find a highly reputable preparer. This database will help you find a preparer in or around your area that have professional credentials and participate in the IRS program for filing season.
5. Electronic Filing – In today’s world, the IRS encourages its citizens to file tax returns on an electronic basis. It is recommended that you choose direct deposit for any refunds that are due to you.
6. Direct Deposit – When you file your taxes, you should choose to have your refund direct deposited. This is easier, faster, and a reliable and a highly secure way to actually receive a refund. You may elect to have the money deposited up to three accounts. According to the IRS, it is much more likely to experience issues with a tax refund check than a direct deposit. It could be lost, stolen, uncashed, or even misdirected.
7. Report Unemployment – If you drew unemployment during the year, you should make certain that you report that income when you file your taxes.
8. Report ALL Income – You are legally required to report all income from every source – including gig economy jobs, 1099s, and W-2, and Wage Statements and Tax Statements.
9. Accuracy is Key – When you submit your tax return, you should make sure that your bookkeeper and you review the return for accuracy. If your return is accurate, you can avoid delays in it being delayed. Check your name, Social Security numbers, account numbers, routing numbers, and other information.
10. Review Publication 17 – You should review this publication because it gives you the rules for filing a return to the federal government. There is a new format that helps to make the publication easy to understand and download.

Need Someone to Help You Prepare Your Tax Return?

If you need to have help preparing your tax return, you will quickly find that there many different types of preparers out there. You may choose from certified public accountants, enrolled agents, several types of attorneys, and others who are not professionally credential or other type of credential. Your information is highly sensitive. It will include information about your marital status, your kids, all of your Social Security numbers, and other financial information. It is best to opt for a reputable tax preparer.

How to Pick a Reputable Tax Preparer

There are many steps that you may take that will allow you to choose a tax preparer that is reputable. The following outlines these steps:

1. First, you should elect to not work with preparers that state that they can get you larger refunds than other preparers are able to get you.
2. You should never work with a preparer that bases fees on the percentage on the refund you are entitled to or who provide the offer to deposit parts of your money from your refund into their accounts.
3. Make sure that the preparer that you use includes their unique PTIN on the business transactions that they engage in.
4. Make sure that the tax preparer provides you with a copy of your return when it is finished.
5. Tax preparers that are on top of their game will ask to see receipts, records, and other types of documents.
6. You should never sign a tax form that is blank.
7. Ask the Better Business Bureau (BBB) about the tax preparer that you want to use to learn more about them.
8. You should always review the credentials.

What to Do with Your Tax Return?

Most people just spend their tax return when they receive it. In fact, most people have done this at least once. It is a perfectly acceptable option; however, it is best to try to avoid spending the return and pay yourself. On average, most taxpayers receive high and sizeable refunds. The average is $2,800 and higher. In a recent survey, many people were asked what they did with the money that they received. The following outlines the findings:

• 31% Invested
• 27% Purchased Food
• 28% Paid Down Debts
• 6% Spent it on Shopping Sprees or Going on Vacation

This means that six people out of every ten who receive a refund will use it to try to improve their finances. Honestly, we should all strive to do this. The following outlines tips on how you can use your tax refund in a productive manner:

1. When you get your tax return back, you should place a priority on paying off your high interest debts. If any of your debts carry interest of 16% or more, that is considered to be high.
2. You should take your tax return and create an emergency fund. This can be used to make up for lost time at work, unexpected mechanical issues with your vehicle, and even household emergencies. It is ideal to have an emergency fund that includes about the same amount of money that you would make within 6 months at your job.
3. If you have a mortgage, you can use your tax return in order to make an additional payment or add to the principal of the account.
4. You can place the refund in a high yield savings account so that your money makes money, over time.
5. If you have an annual retirement plan, you can use the refund that you receive in order to max out your plan contribution. You may also put the money in some other type of investment account. If either account is tax-advantaged, you will have the ability to make that money grow even larger, over time.
6. In addition to the above, you can invest your tax refund into an indirect investment. These include business endeavors, making purchases that you may sell for a profit.
7. The earnings that you accumulate throughout the year are held back by a certain percentage. This is in case you owe taxes in the future. If you get a refund yearly, you should have your W-4 withholding this will allow you to have larger paychecks throughout the year.
8. Invest in yourself. Do things like buy a new home, sign up for a bank account, use some of it to build your credit through a secured credit type of credit product.

How Long Should You Keep Your IRS and Associated Records?

You should keep your tax returns and all of your associated tax records for a period of up to three years. If you are self-employed or have served as a guardian or a Rep Payee to another individual, you should keep the returns and associated for up to seven years. If you file a claim from a loss such as a bad debt deduction or any worthless securities. If you have any other questions about how long to keep your tax returns and associated records, you should contact your tax preparer.

Conclusion

If you need assistance with your tax returns, you may contact one of our financial associated here at Somerville Bank. In addition to standard financial advice, we offer savings accounts, checking accounts, and other types of financial products that can help you maximize your tax return. For more information, you may visit one of our locations at: https://somervillebank.net/locations/

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Who Do Scammers Target the Most?

It is a known fact that scammers will target certain segments of the population. While they may scam anyone, they especially target individuals in older age groups. The following outlines who scammers are known to target the most:

• Those that are in their seventies or are older.
• Individuals that live alone.
• People who have recently lost their spouse or have become disabled.
• People who now have taken on new financial responsibilities.
• Those who do not have a lot of savings and are concerned about that.
• People who worry about the ability to pay their debts and/or remain in their own home.
• Those who have the capability of conducting their own affairs and do not depend on others for assistance.

What Types of Scams Impact Older Populations?

The following outlines the most common scams that directly impact older populations:

1. Friendship/Relationship Scams – This type of scam occurs when a scammer lures a victim into a friendship or a relationship that is considered to be bogus. Once the con is in full swing, the scammer will rob the victim of their money. In most instances, older adults who have done through a major life event – such as a death of a spouse – fall victim to these types of scams. The scammer will befriend the victim by connecting through mutual interests and/or mutual friends. Once the connection is made, the scammer exploits the victim’s trust. Contact is typically made through social media platforms, dating sites, and messaging apps.
2. Investment Scams – Older adults strive for financial security and want to leave a nest egg for their kids and their grandchildren. In investment scams, scammer will target seniors with fake investment opportunities and/or fake annuities. In terms of money making, the only person that usually makes any money is the scammer. If an opportunity sounds too good to be true, it probably is.
3. Telemarketing Scams – Many scammers perform telemarketing scams where they try to sell something, they want to steal a victim’s money or they want to obtain personal information. It has been estimated that Robocalls cost people about $40 billion dollars each year. The elderly should be encouraged to hang up and not answer unwanted phone calls and to register their phone number with the Do Not Call Registry. At donotcall.gov. In some instances, the scammer who makes the call may pretend to be a friend, neighbor, or a family member.
4. Sweepstakes Scams – There are many scammers that specialize in sweepstakes scams. They use this level of excitement in order to get the victim to make a poor decision. The victim will get a phone call, an email, or a letter stating that they have won some type of lottery or sweepstakes and that they have made it to the finalist stage. Then, they will ask the victim to make a down payment or pay a fee in order to get the prize money. The main strategy they use to get money is to tell the victim that they have to prepay the tax amount on the money that they have won. If you do not remember entering the sweepstakes and/or lottery and it sounds too good to be true, it probably is – never send any money to someone who claims you have won a prize.
5. Technical Support Scams – These types of scams are some of the oldest, yet most common. Victims are contacted through a phone call, an email, or a pop-up message on a home pc. The message will claim that a problem has occurred with their computer and they are able to resolve it by being provided with remote access. Once access is granted to the supposed “technician”, they may gain access to any information that is stored on it or any network in which the PC is connected. Malware may be installed in order to bypass password-protected files. The elderly are most at risk to these scams because they simply do not understand the dynamics of true technical support. They should be instructed to never click on any links or give money to someone who claims they can fix their issue. Additionally, older populations should be instructed how to update their computer and update their computer’s security software.
6. Cryptocurrency Scams – Cryptocurrency is the newest type of digital currency that is used to pay for various types of purchases and/or to make investments. Scammers have recently started taking advantage of many people because cryptocurrency is not at all easy to understand. Additionally, these transactions are often irreversible and are not easy to track. Cryptocurrency does not have a lot of legal-based protections and if someone is scammed, there is likely no legal recourse that can be taken. Older adults must research investments and seek professional assistance if they want to avoid being scammed. They should also be told that cryptocurrency does not result in immediate riches.
7. Home Repair Scams – It is a known fact among scammers that homes require regular maintenance and repairs as they age. There are scammers out there that will knock on the doors of the elderly and will offer to do something simple around your home- examples include cleaning out the gutters. Once they complete that work, they will claim that they have identified other types of problems with the home that must be immediately repaired. The elderly should be instructed to only work with contractors that are licensed and insured, that they should never pay upfront, and they should not fall for the gambit of an individual offering to do one job but then stating other jobs need done.
8. Healthcare Scams – All of us – especially those that are older – want to remain healthy and safe. There are scammers out there that are attempting to exploit fears that relate to health in order to get money and personal information. If a victim is contacted about free prescriptions, miracle cures, medical bill relief, it may be a scam. Victims should only get medical advice and associated products from their primary care physician and avoid products and services that appear to be too good to be true.
9. Grandparent Scams – These scams take advantage of the elderly. Scammers will pretend to be someone in your family and acting as if they are in trouble and need money – immediately. They do this by scouring the internet and social media websites. When they have enough information to pull off the scam, they will make a call to the victim. They will then request money that will help them get out of a crisis. They may use artificial intelligence in order to create a voice recording that actually sounds like the loved one being replicated. They will request money to be wired, or money loaded onto different types of gift cards. Before sending money to anyone, you should verify the person’s identity, even if you are asked not to do that.
10. Imposter Scams – Scammers will often pretend to be someone who carries a level of authority – such as law enforcement, a government agency, or a bank. They may act as if they want to give you a government grant and/or they may be threatening you with legal consequences or fees. Victims must be instructed to never rely on caller ID in order to determine if a call is trustworthy. If a call is received from a so-called “authority”, the victim should be instructed to hang up and call that authority directly to validate the original call. If they are being threatened, they should know that the call is a scam. The victim should be told to never give money to a so-called authority figure if they call. They should not give money through wire transfers, cryptocurrency, or gift cards.

Other Types of Scams

There are other types of scams that may occur. Examples include charity scams, phishing scams, and affinity scams. If you have an older loved one, it is important to share this information with them so that they do not become the next victim and they should be told to consult with you or an authority to determine if they are close to becoming a victim of a scam.

Contact Us Today

We here at Somerville Bank offer many services and applications to our clients that will keep them safe from scammers. We also offer identity protection services. Contact us today and ensure the safety of your older loved ones for all of their tomorrows, Click the following location to find a branch near you: https://somervillebank.net/locations/

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Filing Deadline

This year, the filing deadline for taxes is April 15 th 2025. The goal should be to get ready for this filing date way ahead of time. If you earned any type of income for the year of 2025, you will need to file a tax return on a federal level and a state tax, if your state requires taxes from residents.

You Need to Learn What Your Filing Status is before you file taxes. The IRS has five statuses that taxpayers may qualify as. These include:

1. Single
2. Head of Household
3. Married Filing Jointly
4. Married Filing Separately
5. Qualifying Widow/Widower with Dependent Child

Each filing status has different requirements when filing and actually qualify for different types of deductions and even credits. It is important to note that for the 2024 tax year, Married couples who are filing jointly will be allowed a standard deduction of $29,200.

Updated Personal Information

If you have recently gotten married, divorced, moved, or legally changed your name, you must report this information to the IRS and the Social Security Administration. If you have undergone a legal name change, you will need to contact the Social Security office nearest to you.

You will need to provide proof of your identity, a life insurance policy or a marriage license. You may then contact the IRS directly and update your information, such as your address. If you wait to do this until you file your return or later, you may miss important information that they attempt to send you.

Adjust Withholding

If you perform work in a traditional W-2 job, each January, your employer will request that you fill out a W-4 form. This determines how much your employer will hold back from your earnings throughout the year based on the number of dependents that you are claiming, your tax status, and other types of nonemployment income and/or deductions.

If you get a larger refund on your return for last year, it could mean that too much is being withheld from your earnings. If you find that you owe taxes, you may discover that you actually need to adjust how much you have withheld.

Organize Tax Documents

Now, it is time to get together all of the necessary documents to do the filing. The following outlines some of the most common documents:

Last Year’s Return – This will let you figure out what deductions you claimed and credits that you received. The information may assist you in helping you file the current year’s return.

Letter 6419 – This details the amount of child tax credits you received in the past. By evaluating this form, you may be able to claim the credit on your current return if you have a dependent that is aged 17 years or younger.

W-2 Forms – These forms detail exactly how much was earned with that particular employer. You will receive these forms in the mail by the end of January.

1099 Forms – If you were self-employed, the clients that you have performed work for will send you these forms, which outlines how much you were paid during the year. If you have not set up quarterly taxes on that income, you will be required to pay all that you are required to pay in full when you file your return in the Month of April. Form 1095-A – This is the Health Insurance Marketplace statement. It allows those who are enrolled in a health plan that qualifies to get either the tax credit or reconcile the credit on their returns with any payments received.

Form 1098 – If you own a home, this form outlines the amount of interest you have paid on your mortgage throughout the year.

Form 5498 – This form outlines the amount that you have contributes to an individual retirement account or “IRA”. The firm that holds your account will provide you with this form at the end of the year or in January. The contribution amount you made may actually be tax-deductible as long as your income does not exceed the limit that has been imposed by the IRS.

Form 1099-DIV – This report allows you to report any type of income that you have received from dividends or distributions that are directly associated with the investments that you have made. If you have a rental property, stocks, bonds, or another type of investment – such as cryptocurrency – that actually generated a profit, you will receive this form.

1098-E – This is a student loan statement that outlines the loan interest. It shares how much interest that you paid throughout the year.

Deductions – You should get together receipts and other documents that verify the deductions.

Business Expenses – If you are self-employed or you have a small business, you should gather credit card statements, receipts, and or statements that show how much you spent. You should strive to keep this information all year long before filing so that you may maximize the deductions you are claiming and you can reduce your overall tax liability.

Max Out Those IRA Contributions

If you have an IRA, you should contribute as much as possible before the filing deadline. If you are under the age of 50, you may contribute as much as $7000 for the year. If you are over 50, you an contribute up to $8000.

Will You Use a Tax Preparer?

You need to determine if you will prepare and file the taxes yourself or if you will be using a professional tax preparer. This is especially helpful if you own a business or are self-employed. An accountant can help to make sure that all of the information on the filing is correct and is properly filed with the IRS.

Programs

If you decide to file your taxes on your own, you should use a program that will guide you through the process so that errors are not made. The best programs available today include the following:

H&R Block

TurboTax

FreeTaxUSA

Jackson Hewitt

TaxAct

TaxSlayer

Other Documents of Interest

In addition to the documents that we have previously outlined, there are other documents of interest that should be gathered. These include the following:

Alimony

Individual Retirement

Account distribution

Rental Property Income and Expenses

Scholarships

Gambling Winnings

Investment Income

Jury Duty

Social Security Benefits

Student Loan Interest

Mortgage Points

Moving Expenses

Child and Dependent Care Tax Credit

Filing an Extension

If you have yet to gather all that you need to or You are still waiting on tax documents, you may want to give yourself a little buffer and file for an extension. This gives you an automatic six months extension. Then, your tax return will need to be turned in in the Month of October.

To request an extension, you will need to complete and mail Form 4868 or you may ask the preparer that you use for your taxes to do this. The extension is free, but if you end up owing, the interest will continue to add up and you may find yourself getting penalties.

Where’s My Refund?

Once you file your return, you may find that you are curious as to where it is in the process. The IRS has a Where’s My Refund tool that will provide you with the status of your return 24 hours after it is filed. That is, if you filed electronically. If you file a paper return, it will take longer to see any information on the tool. You may access this tool online on the IRS website, or you may access it through the app at 1RS2Go mobile app. In addition to the tool, it provides free help on tax topics and allows you to make payments on what you owe the IRS, if you owe anything.

Refunds

If you are expecting a refund, it should arrive to you within 3 weeks. You will receive it more quickly if you file electronically and opt for direct deposit into your bank. If you do not have a bank to get the deposit, we here at Somervile Bank are ready to assist you. Just browse our website and use our location tab to determine which branch is closer to you. If your refund is delayed, it could be because your return was wrong or it had inaccurate information on it. Corrections may need to be made regarding the child tax credit or the earned income tax credit. For more information, click the following link to see our locations: https://somervillebank.net/locations/

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What are the Different Types of Student Loans Available Today?

In short, there are two general types of loans available for students – federal student loans and private student loans.

Federal loans do not require you to have a minimum credit score to obtain them and should be your first option before looking into private student loans.

Private student loans are available to those that need more funds for school than federal student loans provide. Additionally, the private loans are the option available for students that do not qualify for the federal loan options due to their current citizenship status.

What Types of Federal Student Loans Are There?

Out of all of the methods available for paying for college, federal student loans are considered to be the most popular option. These loans have a high level of flexibility – in terms of payment options – and are known for having the best/lowest interest rates. The loans are provided by the Direct Loan Program. The following outlines the loans that are available federally along with a brief description of each:

1. Direct Subsidized Loans – These loans are available to undergraduate students who are deemed to have a financial need. While the student is within school, there is no interest that is accrued on the loan. Additionally, this holds true during the grace period of six months as well as any associated deferment period.
2. Direct Unsubsidized Loans – These types of loans are readily available for undergraduate students, graduate students, and professional students. There is no need to display any type of financial need. These loans start accruing interest right away. This interest will continue while you are in school obtaining your education, after graduation, and even during the deferment or the forbearance periods.
3. Direct PLUS Loans – These types of loans are dedicated to graduate students and professional students. They are also available to the parents of undergraduate students that are dependent upon them. The funds may be used to aid in paying for educational expenses. These have the highest origination fees and the highest interest rates.
4. Parent PLUS Loans – These types of loans are taken out by the parents of a student. This means that the parents are legally responsible for repaying the balance and that the loan will appear on the credit report of each parent named on the loan.

What Types of Private Loans Are Currently Available?

There are numerous private loans currently available for students. The private lenders offer numerous terms of repayment, designated incentives, interest rates, and consolidation options. Private student loans may have fixed interest rates or variable interest rates. The following outlines the common private loans available and a general description of each:

1. Undergraduate Loans – These types of loans typically have a lower loan limit but a higher interest rate. In most instances, they will require a cosigner who will agree to take full responsibility for repayment if the student defaults. The reason that these loans usually require a cosigner is because the undergraduate student has yet to develop a credit history. The good news is, in many instances, once the student graduates, the lenders may offer a discount on the remaining principal of the loan.
2. Graduate Loans – These loans are offered to borrowers that are going to a specific school – such as medical school or law school. The loan limits are higher, the interest rates are lower, and the repayment terms are longer. Lenders may also offer those who sign up for these loans longer grace periods, deferment periods during schooling, and additional deferment while a student works to complete a residency.
3. Parent Loans – These types of loans are available for parents to take out to pay for the education of their child. These loans require citizenship or special eligibility as a non-citizen, good credit, and the student being enrolled in a qualified educational facility at least half of the time as an undergraduate. Other requirements will be outlined by each private lender that specializes in student loans for parents.

Best Practices for Applying for Student Loans

If you want to take out a loan for your education, there are several best practices that will help you get started. Remember, it is always best to try your hand at obtaining a federal loan first. Then, move to trying to obtain a private loan – if it becomes necessary. The following outlines the tips that you should take:

1. First, you should check to see if you are eligible to receive financial aid or federal aid. Simply review the eligibility requirements. If you meet these requirements, move on to step 2.
2. Next, submit the FAFSA. If you are considered a dependent of your parents or your guardian, you must include their income on the FAFSA. If not, report your income on it. The amount of money that you qualify for will depend heavily upon your needs. If approved, you may receive grants from the federal government, work-study options, and/or student loans.
3. Once you submit the FAFSA, you will receive a report that outlines what type of federal aid that you qualify for and how much. You will also find that you receive award letters from the schools that you have been accepted to start.
4. Once you determine how much financial aid you have, you will be able to determine how much more aid you need to fulfill your financial responsibilities. It is now time to consider taking out additional private student loans to cover the remaining financial obligation.
5. If you decide to take out a private loan, it is time to research the various options offered by private lenders. You should consider the interest rates of the loan, your credit history, the possibility of having a cosigner, and the repayment terms associated with each offer. If you have difficulty finding private lenders for student loans, you should make an appointment with the financial aid office at your school. They will be able to provide solid recommendations on the best private loan offers in or around your area.

What’s the Differences in Repayments Between Federal and Private Loans?

In short, the main difference between federal loans and private loans are the associated payment plans of each. If you get a federal loan, you are not required to make payments as long as you are enrolled in the school on a part time basis.

Private loans will require you to make payments right away and before you graduate.

These private offerings cannot be consolidated into the Direct Consolidation Loan option; however, it is possible to refinance these loans.

If you take out a private loan, consult with your lender on the refinancing options you have and any associated consolidation options.

If your loan is from a private lender and has variable interest rates, you should know that the interest rate that you pay will – eventually – increase.

What is Deferment and Forbearance?

Deferment and forbearance – in terms of a student loan – outline forms of temporary types of relief for the loan. It is – in short – a period of time where the lender that you have does not expect any payments towards the loan.

It must be understood that during these times on a loan, interest may still accrue. These typically kick in as a result of job loss and other types of financial setbacks.

You may have to apply to have the luxury of deferment and forbearance on your student loan. Simply contact the lender to find out more.

Contact Us

If you have an interest in a student loan, you have both federal options and private loan options. First, you should always check to see if you qualify for financial aid. Then, you should try to apply for financial loans immediately thereafter. Once you have all the approvals in place, you should determine if you need anymore money. If so, you should apply for one or more private loans.

If you are in need of a private loan, we here at Somerville Bank are capable of assisting you. We offer many types of loans for consumers and have the best interest rates – so that you get more bang for your buck. If you are interested in a loan, you should contact one of our loan specialists today. You may reach us by visiting or calling one of our many locations.

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IMPORTANT: You should know that the Internal Revenue Service (IRS) will never initiate contact with any taxpayer by text message, social media, or email to make a request for personal information or for financial information.

Scams:

1. Fraudulent Tax Return Filed

Tax identity theft is a common issue. In the year of 2022 – alone – there were nearly 8 million reports of suspicious activity that were tax-related. Tax identity occurs when someone makes a tax filing using your name.

All this scammer needs is your full name, your date of birth, and your Social Security number.

The return will be created in such a way that a large refund will be issued. Once issued, the scammer will deposit. Then, you go to file your taxes. At that time, the IRS will alert you to the fact that you have already filed.

You can avoid fraudulent tax returns filed in your name by creating a designated Identity Protection PIN.

This helps to ensure that your return is secure. Each year, when you file your return, you will be required to set up a six-digit passcode. This passcode will serve as a type of “password”. That way, any imposter that attempt to is unable to file a return in your name.

Simply go to the IRS IP PIN page on their website to set this up so that you can be immediately protected.

2. “Ghost” Tax Preparation

In this scam, the individual conducting the scam will act as if they are filing your taxes. They will often use inappropriate exceptions, make mistakes, and may even file their own fraudulent tax return in your name, ensuring that the refund is deposited into their account.

If you do not file your taxes on your own, you should utilize a professional tax preparer that has a verifiable IRS Preparer Tax Identification Number (PTIN). You may verify this by requesting it and conducting a search for them in the Directory of the IRS.

3. Overdue Stimulus or Unemployment Benefits

This tax return scam started during the pandemic of COVID-19. In short, you will receive a notice of some type that claims that you have additional stimulus payments or even uncashed unemployment benefits. A link will be included that allows you to verify your personal information. It may even request that a fee be paid. The information and/or fee that you pay will then be submitted to the scammer.

If you want to see the status of any benefits that you may have pending, you should inquire on the account that you have with the IRS.

4. Cryptocurrency or Gift Card Payment Request

An individual will usually use a phone call to commit this scam. When they call, they will say that you have penalties, tax obligations, or fees that you owe. They will claim to be the IRS and will threaten you. Then, they will say that you may pay in cryptocurrency – such as Bitcoin – or in gift cards – such as Amazon.

The IRS does NOT accept these forms of payments. If you receive any of these calls, hang up. This is a scam that could detrimentally impact your finances and possibly even put your personal information and investments at risk.

5. Offer in Compromise (OIC)

The program, Offer in Compromise, is a legitimate one that is offered to taxpayers that are having difficulties paying their tax-related debt. Taxpayers are required to meet specific criteria in order to qualify for the program.

Unfortunately, scammers are aware of this. As a result, they will contact you, claiming that they are able to offer assistance to help you apply – even if you do not meet the qualifications. Then, they will require a fee for their services. To avoid this, visit the pre-qualifying tool offered by the IRS.

Steps to Identify an IRS Imposter

To protect yourself from tax refund scams, you must learn how to identify a scammer who attempts to pose as an IRS representative. First, you should know that nearly all of the correspondence from the IRS will be delivered through the mail.

If you fail to respond, yes, another form of contact may be initiated. In most instances, a call will be made. In other instances, an agent may visit in person. If this happens, they will have a government-issued badge that is identified as a “HSPD-12”.

The following outlines the warning signs that you are dealing with a scammer:

1. The individual attempts to contact you through text messaging, email, or social media.
2. The phone message that you receive is recorded. If the IRS does call, it will always be a person on the other end, not a pre-recorded message.
3. They inform you that you will need to pay through a means that is unofficial. The IRS always payments at their website, IRS.gov.
4. The individual states that payments may be made with cryptocurrency, gift cards, a wire transfer.
5. They will tell you that the check you write must be made to the “IRS”; however, the REAL IRS has checks made out to the “U.S Treasury”. They do this because they can transition what you wrote to the word “MRS”.
6. They want information about your bank, your credit cards, and other aspects of your finances. Do not give out bank numbers, account numbers, or any login information.
7. They may threaten to revoke your Driver’s License.
8. They may claim that you may be arrested and deported.
9. They say that they are able to perform a service for you, but you must pay upfront.
10. They claim you have surplus funds from another account and you will need to pay a fee to release those funds.

You are a Victim of a Scam

If you have discovered that you are a victim of a tax refund scam, you should do the following:

1. If a tax refund has been filed fraudulently, print out an affidavit for Identity Theft and then mail your tax return.
2. If you are told you owe the IRS taxes, check out their IRS Payments page on their website to verify – one way or another.
3. If you have sent money to the scammer, make an attempt to cancel it. If you provided bank account or credit card information, call the fraud department and request a freeze to be placed on that card.
4. You may file a report with the FTC at the IdentityTheft.gov website as well as the Treasury Inspector General for Tax Administration (TIGTA) if you find that you are a victim of identity theft.
5. Take all steps necessary to protect your identity and finances in the future.

Contact Us

If you are in need of financial assistance, want to open a bank account, take out a loan, or discover more ways to protect your money and identity, contact us here at Somerville Bank by visiting one of our many locations. We have financial agents standing by to assist you. You may view our locations by clicking the following link: https://somervillebank.net/locations/

The post Top 5 Tax Refund Scams Targeting Consumers in 2023 appeared first on Somerville Bank.

What is the Fastest Way to Receive My Refund?

If you want to get the funds from your tax refund quickly, the fastest method is to have the money electronically deposited directly into your bank account.

This is possible through the Direct Deposit Program offered by the Internal Revenue Service. One of the best perks about this program is that it is 100% FREE!

In addition to Direct Depost being the most secure method of receiving your money, it may also be deposited into up to three different accounts! For example, if you have a checking account, a savings account, and an emergency account, you may have a little money deposited in each!

If you do not have a bank account, be sure to obtain one prior to filing your taxes!

Is a Paper Check Safe?

In most instances, it is safe to receive a paper check with your tax refund. Prior to the Direct Deposit Program becoming available, this is how everyone received their refund.

Unfortunately, you must be aware of the fact that checks take the longest to receive.

Additionally, there is a high risk for a paper check to become lost, damaged, stolen, and returned to the Internal Revenue Service. It is MUCH safer, easier, and faster to have your tax refund direct deposited.

Are Prepaid Cards Available for Tax Refunds?

Yes, prepaid cards are available for consumers who are expecting a tax refund.

Read the small print and understand the terms and conditions associated with the prepaid card you choose.

You must know how to have money deposited on it and what fees you will be charged. Some cards will charge a special fee for tax refunds from the government.

You must create a PIN for the prepaid card. Special care should be taken to protect the card as it could be lost or stolen.

If stolen and unauthorized charges are incurred, you may be held responsible. It is best to choose a bank account and have the refund safely deposited into that account.

Is it Possible to Track My Tax Refund Status?

Yes, you may track the status of your tax refund from the Internal Revenue Service. Simply go to IRS Tools on the IRS website and fill out the information.

There is even an app for your mobile device. This is called “IRS2GO”. This will allow you to also track your refund in real-time.

If you have a computer, you may access and utilize the “Where’s My Refund?” tool under Refunds and Payments on the irs.gov website.

Be sure you only access this on the actual website of the IRS as it includes sensitive questions pertaining to your tax refund from the IRS.

How Do I Protect Myself from Tax Scams?

Regardless of how you handle your tax refund, it is critical that you ensure complete protection. If sensitive information – such as your name, your birthday, your Social Security number, and your address gets into the wrong hands, it could be used by scammers to take out a loan, a credit card, and/or to file a tax return under your name that is fraudulent.

In turn, THAT individual may be able to claim any tax refund that you have coming your way.

What Should I Do if I Think My Information Was Stolen?

If you feel that your information regarding your tax information has been stolen, you must contact the Internal Revenue Service immediately. You may call 800-908-4490.

You may also visit the IRS website and search for “Identity Protection”. There is a direct page you may visit. It is the Identity Theft Central page. This page provides resources for those who have had their personal information stolen by a scammer with the purpose and intent of committing tax fraud.

What Happens if an IRS Agent Contacts Me?

First, it is rare that an IRS agent will call you. It has been known to happen.

If you get a call from a supposed agent, do not talk to them unless you call 800-829-1040 first to confirm a contact was initiated. In most instances, the IRS will correspond through mail that is delivered through the United States Postal Service.

By calling the IRS directly, you can have it confirmed as to whether or not the contact was a legitimate one.

What if the IRS Agent Who Contacted Me was a Fake?

If the IRS agent that contacted you was a fraud, you must report it. The report must be presented to the Treasury Inspector General for Tax Administration. You may reach this special department of the Internal Revenue Service by calling 800-366-4484.

If you receive any emails that are unsolicited by a supposed IRS agent, you may forward them to the phishing department. Their email is: phishing@IRS.gov .

Who Do I Get to File My Taxes?

Most individuals that specialize in tax preparation are professionals.

You should avoid those that indulge in heavy marketing, promise high refunds, or claim to know little-known “secrets” to getting a higher refund. You should also avoid preparers that claim to offer in-home tax preparation.

To verify that you are dealing with a legitimate tax preparer that will NOT steal your information, you must check their PTIN. This is a preparer identifier used by the IRS that all preparation professionals must have.

Additionally, you may ask the preparer to provide you with references of those that they have serviced in the past.

What Should I Do with My Tax Refund?

People handle their tax refunds in different ways. You may contribute to an emergency fund, place it in a savings account that allows you to get a return on the balance, and/or reduce or eliminate any type of outstanding debts that you have – such as a loan, credit cards, credit accounts, or even pay off your home or your car! The choice is yours.

Depending on your tax bracket, your refund could be potentially large. Many people may choose to pay their rent or mortgage for the year or pursue some other expense. Regardless, it is important that you spend the money wisely – if you even spend it at all.

Opening a Bank Account

If you do not have a bank account, it is advised that you open one up as soon as possible. This is the safest and easiest method of handling your tax refund money.

It is also the best strategy for handling your finances throughout the year. We here at Somerville Bank are dedicated to serving you! We can assist in opening a checking account, a savings account, and help with online and mobile banking. We are insured by the FDIC. That means when you bank with us, your money is protected!

If you would like to learn more about our banking options, inquire about protecting your tax refund, or simply want to learn more about how to manage your tax refund, contact us today! You may call or visit one of our many locations. We are standing by to assist you! Click the following link to obtain information about our locations and contact numbers: https://somervillebank.net/locations/

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All primed and ready to paint inside

FINISHED! Opening October 11, 2022

The post New Building for Eaton South Location appeared first on Somerville Bank.

Established in the year of 1910, Somerville Bank has a long history of providing services to consumers in the Southwestern region of the State of Ohio. By the year of 1990, it expanded to a total of seven branches – all offering full services. In the year of 2010, the financial institution celebrated 100 years of service. In 2018, the institution became an Ohio Chartered Bank. In recent months, we have created and implemented a brand-new website for our clients. In this brief guide, we will provide details on the changes associated with that new site.

The Home Page

In exploring the home page of our new website, you will immediately find that the area is cleaner and easier to navigate than our previous site. Right on that page, you will get a glimpse into our earliest days through an historical image and a brief outline of our expansive history. As you continue down, you will be able to clearly see the Mission Statement. The information contained on this page outlines how our history meets today to provide a promising future. Our Mission includes:

• Providing financial products and a variety of services at the lowest costs possible
• Ensuring top capitalization and high returns for our shareholders
• Establishing a high-quality establishment for our employees
• Encouraging support with community-based services that will provide enhancements to the quality of life for individuals

Navigational Features

As you visit our new website, you will quickly discover that we have created it so that you – the user – reap the most benefits. Our user-friendly navigational features allow you to gain direct access to that which is most important to you – be it consumer interests, business interests, services, or if you simply want to learn about us.

Our goal is to make it easier and quicker to learn about the services and solutions that we offer. Our newly designed website is highly interactive and provides instantaneous access to the information that matters to you!

For the Consumer

In our consumer section, you will be able to learn about consumer accounts, auto loans, and residential lending features that we here at Somerville Bank offer.

Examples of the solutions you will discover in our residential lending section include the following:

• Loans for Building Site Lots
• Properties for Investments
• Mixed-Use Properties
• USDA for Rural Development
• FHA Loans
• VA Loans
• Lines of Credit Based on Home Equity
• Construction Loans for Residences

In addition to a comprehensive outline of our services, we have outlined our consumer & residential lending specialists:

• Katie Orr
• Mike Reuss
• Melinda Burr
• Kevin D. McKeehan
• Lacy Aikman
• Becky Melton
• Adam Day
• Emma Rogers

In our auto loans section, you will find that we have the ability to pre-approve for an auto loan. Our bank is the direct lender. We obtain your credit score, your annual earnings, the expenses that you have, and your employment history. We then take the vehicle you are interested in purchasing and the terms associated with said vehicle. We then run that information and work closely with you to create a loan that will allow you to step into that new vehicle and drive away!

Agricultural and Commercial Solutions

If you specialize in agricultural services or commercial services, you will be pleased to know that our new website outlines a wide variety of services to you, including business accounts and lending. Examples of these include the following:

• Agricultural Land Loans
• Commercial R.E Loans
• SBA Loans
• FSA Loans
• Commercial-based Construction Loans

The following outlines our current agricultural and commercial lending specialists:

• David Douglas Ulrich
• Rick Hawley
• Pete Ferriell
• Greg Meier

Identity Theft Protection Services

We here at Somerville Bank are happy to announce our new ID TheftSmart system. This, too, is outlined on our new website. Currently, we are offering this service at the low rate of just $8.50 a month! The protection provided is absolutely priceless!

Not only will this provide you with direct access to a live Identity Consultant, it will also provide you with your own Private Investigator should your identity ever become compromised.

This is a special service that we recommend for both consumer and commercial patrons. Simply contact us at one of our branches to learn more about signing up for this very necessary service.

Services

While exploring our new website, you will find information about the various services that we provide. These include online banking, mobile banking, check ordering services, and more!

We have dedicated a specific area of the website on these services so that you may quickly and conveniently gain immediate access to that which you need. In exploring these services, you will find that we also offer Bill Pay Services, Mobile Apps for Deposits and Transfers, Customizable Alerts, ACH Payments, and more! If you are in search of a one-stop financial banking institution, you will find it with us here at Somerville Bank!

About

In reviewing our new About section on our website, you will gain immediate access to a wealth of information. This includes the following:

• The addresses, phone numbers, fax numbers, and hours of all of our locations
• The locations of all of our ATM and Remote ATMs
• A list of our current employment opportunities
• A direct link to a comprehensive blog that provides the latest and greatest information pertaining to your finances

Direct Contact

In our effort to be completely transparent with our clients, we now have a comprehensive list of contacts listed on our new website. Regardless of what you need or who you want to speak with, you will now be able to locate them and contact them immediately. Those that serve as our main points of contacts on this section include the following:

• Sharon Rich, Branch Manager in Somerville
• Abby Moore, Branch Manager in Camden
• Amy Hauser, Assistant Cashier in North Eaton
• Marla Swope, Branch Manager in South Eaton
• Leah Wallace, Branch Manager in Oxford
• Cindy Wallace, Branch Manager in Hamilton
• Angie Mears, Branch Manager in New Lebanon
• Becky Melton, Vice President in Richmond, Indiana
• More to come!

We here at Somerville Bank thank you for your continued support! We look forward to serving you!

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What is a Credit Card – Exactly?

A credit card is a specially-designed product that is created to represent a type of payment mechanism that is used to facilitate both consumer-based and commercial-based transactions such as purchases and advances in cash. It is typically used as a type of substitute for a check or cash. In most instances, it gives the user an unsecured line of credit that is revolving.

Each billing cycle – which is typically outlined as a specific number of days or a month – the borrower is obligated to pay part of the outstanding balance associated with the card. As the outstanding balance decreases, the amount of available credit increases.

The Physical Card

The physical card is thin and rectangular. The front includes a series of numbers. These represent the bank, account number, and the associated network.

The back of the card has a magnetic strip that is often referred to as the “magstripe”. This includes embedded information about the account.

There is a signature box. The information and details of these cards are constantly morphing in order to optimize the account holder’s security.

Examples of changes that have occurred and may be included on the card include a chip, biometric capabilities, and blink technology.

Choosing Credit Cards

The best strategy for maximizing the benefits associated with credit cards involve having a solid understanding of your finances and associated lifestyle and credit score. This means that you should consider what you need, the things that you want, your monthly income, and how much you spend and how this affects your overall financial status. You will need to become familiar with the terms associated with the credit card. The following outlines specific points that you need to know:

• You should learn about the Annual Percentage Rate (APR). When evaluating the APR, determine if it is fixed or it is a variable APR.
• It is imperative to become familiar with the fees associated with the overdraft limit, the annual cost (if any), and with being late on a payment.
• It is essential that you know how much the credit limit is on the credit card account. This is the maximum amount that may be spent on the product.
• There comes a time where interest will start accruing on the account. You should know how long the grace period is before this starts.
• You will also want to familiarize yourself with any rewards associated with the credit card account – such as cash back rewards and any type of airline reward program where you build up mileage.

What is the Cost of Using Credit Cards?

If you have credit cards and do not pay the balance off each month, the interest will start to add up. This means that you will end up spending more than you originally planned to spend.

For example, if you purchase something for $1,000 and the credit card has an APR of 25%, with a minimum monthly payment amount of $40, it will take 36 months to pay off the purchase. Your total finance charge will be $427.22. That means that – instead of $1,000 – you will end up paying a total of $1,427.22! That is a significant amount in the difference.

Be very careful when using credit cards and always plan on paying more, in the end. For financial purposes, it is best to pay in cash when it is possible to do so.

Controlling Debt with Credit Cards

If you decide to get a credit card, it is important to set some basic rules for yourself so that the debt ratio does not overwhelm you.

One strategy is to make a rule to purchase one thing a month that costs less than $50.00. Then, make a point to pay that off each month so that you do not carry a balance that could result in high-interest charges. It is important to set goals related to payoffs for larger purchases.

The quicker that you pay off a credit card debt, the better. Not only will it reflect positively in your credit report, but you will actually SAVE money. Finally, try to avoid cash advances. These increase your balance, have larger fees, and will cost more to pay off.

Disputing Errors

Each month, you should carefully examine your statement for billing mistakes. While not common, they do happen. If you observe any type of error, you should report it to the credit card issuer immediately. Continue to make the payments associated with your accurate/undisputed charges. The card company should let you know when any disputed information is resolved. You should then review your statement to ensure that the errors were resolved.

Contact Us

If you are interested in obtaining credit, it is often best to consult with a bank – such as us here at Somerville Bank – about loans. Credit cards typically carry very high-interest rates, but it is possible to get a bank loan with a significantly lower interest rate. Additionally, there are many different types of loans to choose from. In addition to loans, we have professional financial advisors in employment here at Somerville Bank.

These professionals can assist you with numerous aspects of your financial life. Examples include budgeting, debit cards, mobile banking, loans, CDs, stocks, bonds, and more! If you are ready to take control of your financial affairs, we are willing to help you. To achieve the highest level of success and put your finances in order, do not hesitate any longer. Give us a call here at Somerville Bank or visit us at one of our many locations today: https://somervillebank.net/locations/

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