Savings tips, your refund, and more

Welcome to the CA$H Maine Newsletter

Jumpstart your savings with Start Small, Save Up

By Liane Fiano and Dave Sieminski – APR 15, 2019

For many Americans, their tax refund is one of the biggest checks they’ll receive all year. If you received a tax refund, consider setting some of it aside as savings. Sometimes “life happens,” so having a rainy day fund to cover unexpected expenses throughout the year may help you breathe a little easier.

If you feel like you’re living paycheck to paycheck or always coming up short, it’s difficult to think about putting any money aside. And, you’re not alone. According to a study conducted by the Federal Reserve Board, 40 percent of Americans could not come up with $400 to cover an emergency expense, or would do so by borrowing money or selling something.

CFPB recently launched the Start Small, Save Up campaign to provide tools and strategies to help Americans to save. A few small steps can really add up and help you realize your dreams for the future, regardless of whether it’s creating security for a rainy day, saving for your dream house, or building towards retirement.
Learn how you can start small now and create lasting change.

Editor's note: New Ventures Maine offers a Rainy Day Savings Program, a matched savings account for income-eligible individuals and families who want to save money to pay for unexpected emergency expenses. This program matches each dollar you deposit in your Rainy Day Savings Account, up to $300.

Did You Have an Unexpected Tax Bill in 2019?

Now that you’ve filed, do you need to tell your employer to withhold more or less income to pay your 2019 taxes?

Was your refund lower than expected, or did you have an unexpected tax bill when you filed this year? You can take steps today to make sure your federal income tax withholding is on the right track for this year.

Checking your withholding at the beginning of the year helps ensure you don’t have too little or too much withheld from your paychecks throughout the year. This is especially important if you changed your withholding in 2018. A mid-year withholding change in 2018 can have a different full-year impact in 2019. You should also check your withholding any time your personal or financial information changes. Use the
Withholding Calculator to help you decide whether you need to change your withholding.

Federal taxes operate on a pay-as-you-go basis. This means that you need to pay most of your tax during the year, as you earn the income.

Paying too much tax throughout the year will result in a refund while not paying enough can lead to a tax bill, penalties and interest when you file. One way to avoid owing a balance is to correctly calculate and adjust how much tax you should have withheld from your wages. Use the Withholding Calculator to help you decide whether you need to change your withholding.

Another option is to consider making quarterly estimated tax payments. Those who don’t pay taxes through withholding, or don’t pay enough tax that way, may still use the Withholding Calculator to determine if they have to pay estimated tax quarterly during the year to the IRS. Those who are self-employed generally pay tax this way. See Form 1040-ES, Estimated Taxes for Individuals, for details.

Visit IRS.gov/payasyougo to learn more about withholding and to determine if you should be making estimated tax payments.

You are in the driver’s seat. Check your withholding today.

Trixie Sidelinger: Long Road Traveled to Lewiston/Auburn CA$H

Trixie Sidelinger first came to Lewiston/Auburn CA$H during the 2018 tax season for free tax preparation. She and her young son traveled cross country and began life anew.

“When we relocated across country from Montana to Maine, we encountered amazing hardships and challenges. From our vehicle blowing its engine in South Dakota, to leaving everything behind but 2 suitcases, to the sheer insanity of putting 4 cats, 2 dogs, a fish, and 2 humans into a 2 door car for a 3,000 mile drive. It was the stuff of movies.”

“When it came time to file our taxes, we encountered a lot of refusals from the free tax help clinics as ours was the curious case of 2 different state taxes, poverty income levels, AND moving expenses. Little did we know that the awesome people at L/A CA$H were about to become the latest angels in a long string of miracle events for my young son and I. Not only were they willing to take on the 3 hour endeavor of digging through tax codes and IRS moving allowances, they were also so generous and gracious in their attitudes about assisting us.”

Read more about Trixie and Lewiston/Auburn CA$H.

Improve Your Financial Literacy in 2019!

April is Financial Literacy Month. Take a money management class or work with a financial coach to improve your financial literacy in 2019.

New Ventures Maine offers My Money Works statewide throughout the year both in person and online. This free class can help you gain the skills and confidence you need to stretch your money, pay your bills, reduce debt, find money for savings, plan for retirement, and set personal financial goals.

South Portland - starting 4/2 6
Online - starting 4 /30
Lewiston - starting 5/2
Farmington - starting 6/3

Other money management classes with New Ventures Maine:
Budgeting Basics,Greenville - 5/7, Newport - 5/13
Clean Up Your Credit, Online - 4/25

York County Community Action offers Financial Coaching and Education. Financial coaches will work with individuals one-on-one to offer support as individuals set their financial goals. Together, they will develop action steps with the coach acting as a guide and providing accountability. Financial coaching services are offered at no cost and to anyone living in York County.

ProsperityME offers financial literacy courses, Basic Money Management, Saving to Build Wealth and Microfinance. All of their services are offered at no cost to participants and are available to all immigrants, refugees, asylees, and low-income individuals living in Greater Portland and Lewiston/Auburn Maine. All courses are taught by refugees and immigrants who understand the culture of the participants.

If you are thinking of buying a home, plan to attend a hoMEworks class at one of several convenient locations statewide, or complete your homebuyer education on line.

CA$H Maine is a statewide collaboration of ten coalitions, comprised of 50 non- and for-profit partners, working together to help empower Maine individuals and families to achieve long-term financial stability. Since 2003, we have offered free tax preparation to qualified filers during tax season and educated hard-working families and individuals about programs in the community that can increase their income, reduce debt, and build savings. CA$H Maine is a year-round resource, providing outreach and education about ways you can make the most of your money.

To find a coalition near you click here.

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