Government Shutdown- Trouble Brewing For Those Anticipating a Tax Return

According to IRS (the nation’s tax collector), the tax season will begin by the end of this month and they will start sending people their tax refunds, irrespective of the government shutdown. Although the news comes like a relief for all those who are anticipating a tax return, trouble can still be seen brewing in the background.

How Will the Federal Shutdown Affect Taxpayers and Why?

The government shutdown was expected to end by the mid of January. But, since President Trump and the Democrats have not yet arrived at a point of agreement, the shutdown can be seen continuing for another couple of weeks. Although the IRS declared that it will start sending taxpayers their refunds as the tax season begins, it may not be a possibility because the government is facing an obvious shortage of funds. A majority of federal employees have temporarily been rendered unemployed due to the government shutdown and problems will only rise from here.

As a result of the federal shutdown, a lot is currently standing between you and your tax refund. Here are some of the issues that might keep you from getting your tax return in the coming months:

Uncertainty Regarding Rules

Accountants need proper guidelines and regulations to determine how the tax refunds of majority filers will get affected. For example, small business owners are looking forward to a 20-percent qualified business income deduction. Normally, the pass-through entities such as sole proprietorships and S-corps qualify for this tax break. So, the accountants need to be well-versed with the regulations before they go on to guide filers through the 2018 returns. The federal government shutdown has slowed down the process significantly.

Workforce either Furloughed or Made To Work without Pay

As a result of the government shutdown, the IRS rolled out its contingency plan, according to which, at least 12.5 percent (or somewhere around 10,000) of the federal workforce will be enforced to work without pay. Whereas, the remaining will be rendered furloughed for the time being. The tax season, however, is expected to bring the workforce on the floor. Though the workforce will work without pay, for now, they will be paid once the government reopens.

The IRS gets approximately 95 million calls each year. Among those furloughed are the personnel responsible for taking care of the queries of the filers. This directly implies that the common man will face a very hard time if they want to get their queries resolved.

Staff Processing Amended Returns Furloughed

Among the large number of staff that was furloughed, was the workforce responsible for processing the amended tax returns, which are done more manually compared to the other returns. This also implies that the tax filers having amended returns will have to wait a while longer to receive their tax refund this year.

A Final Word

The longest government shutdown in years has started to create a huge set of problems for the tax filers all over America. Also, it is not just the tax filers who are affected. The shutdown has impacted everyone, in one way or the other. From travelers to farmers to the ordinary Americans, the impact can be seen affecting one and all. In conclusion, there is just one thing to say: the longer the shutdown continues the greater and worse will be the impact.

Father’s Day Big Gesture: How to Pick the Right Car for Your Pop?

Every parent plays a fundamental role in shaping the life of their children. The countless sacrifices and love that is received from a parent is second to none. Fathers are often the first ones who teach their children how to drive a car. Purchasing your first car for college would not have been possible without your father, guiding you through all the fine details. Therefore, this Father’s Day, gifting your old man a sweet ride would be a small gesture that he would cherish for all the years ahead.

Factor In: Important Elements when Purchasing a Car for Your Dad

When it comes to fathers and their comfort, you should think about the following points before you make a decision.

1. Narrowing down the Right Car Model

You know your dad the best. If his main need is comfort, then gift him a car such as the 2019 Honda Fit that has easy to use technology, good value for money and an efficient engine. Alternatively, if your father is interested in adventures and road trips, then the right car for him would be the legendary Toyota Land Cruiser that can sustain rocky terrains. Therefore, narrowing down the right car for your father will require you to research extensively on the type of cars that he likes and needs. Make sure you purchase a car that encompasses all your requirements and budget.

2. Financing the Car

The way to finance a car for your father is to either to apply for the auto loan in your name or to co-sign it with your father. As it is a gift, ideally the auto loan should be in your own name. Consider the options for auto financing in terms of the length of the auto loan, the debt to income ratio, your credit score and your current credit standing. The best strategy would be to choose the right car, compare different auto loan quotes and find the best quote. If you are confused, starting with a heavy down payment will help you reduce the burden of the auto loan.

3. Registration & Title Formalities

The first thought to cross your mind would be to put the name of your father for the title of the car. In some states, the name of your father on the title may not be legally possible. You cannot purchase a car in someone else’s name and if you wish to have a shared title, the other person is required to sign the paperwork, which would ruin the surprise. For instance, New York DMV requires a bill of sale from the buyer that indicates that the purchase price is $0 as it is a gift. Thus, make sure you figure out the laws of gifting a vehicle in your state with regards to title transfer and registration.

A Gift of a Lifetime

A car is a big investment and you should prepare yourself with all the details before you make the purchase for your father. Once you sort out the nitty gritty of purchasing the car for your old man, decorate it yourself as a gesture on Father’s Day and it will be a gift that he will never forget.

FHA and USDA Home Loans Houston – What is the difference between them?

While you think of buying a house in the USA, it is essential to know about these loans. One of the common loan options to the borrowers is USDA. However, FHA loan is also popular to the homebuyers. You may try to make out how these two loans are different from each other. You will be able to apply for the better one for your needs.

The loan scheme under US Department of Agriculture is for the low-income Americans and for the Americans in the rural sector. The terms for USDA Home Loans Houston can range between thirty and thirty-eight years. While you apply for the guaranteed USDA loan, you have a chance of enjoying 100% financing. In this loan program, the standards for credit and income-related qualifications are different. However, when you have moderate amount of income, you have a chance getting approval for the loan. The house, purchased with this loan, has to be very modest in cost, design and size.

Citizenship-

USDA- To apply for USDA loan, you have to be a permanent alien or American citizen.

FHA- You must be a legal American resident, and you should have SS number.

Credit score-

USDA- As one of the USDA loan applicants, your credit score must be minimum 640.

FHA- Most of the lenders have set 620 as the minimum score. However, they always make sure that you have a clean and positive credit record in the past twelve months.

Down payment-

USDA- Lots of homebuyers look for Zero Down Home Loans, and for them, USDA loan is the right choice.

FHA- In most case, the down payment for this loan is 3.50%. This down payment is much lower than what we have found in other types of home loans.

Geographic restrictions-

USDA- For this loan, you have to make sure that your chosen house is in the USDA-entitled rural regions. In some American states, these regions are adjacent to the metropolitan sites. There are also various income limits for different geographic regions.

FHA- To get this loan, there is no restriction-related to the geographic sites. However, the loan limits may vary in different regions in the USA.

Which is the better loan for you?

Lots of homebuyers do not have the capacity of making 20% percent down payment. For them, both the loans are the best options. However, USDA loan applicants have to ensure the location of the house in the rural regions. Another good aspect of both the loans is that there is no strict requirement for higher credit scores. One demerit of FHA loan is that the mortgage insurance and interest rates are higher. For the USDA loans, the interest rate is not much high, and it is one of the advantages of the property buyers.