Beware Tax Filing Scams

ax Filing Scam

It’s tax time! Unfortunately, that means there are thousands of scammers looking to steal your information and your tax refund by posing as authentic tax preparers. Here’s all you need to know about these scams and how to keep safe.

How the scam plays out: In a tax filing scam, a victim will hire an alleged tax preparer to do their taxes. The scammer then uses the victim’s information to file a tax return in the victim’s name. They’ll change some important details on the tax form, such as a checking account number or mailing address, and then collect the victim’s refund. By the time the victim realizes what’s happened, they’ve lost the money owed to them by the IRS and are now vulnerable to deeper identity theft.

Protect yourself: The best way to stay safe from a tax filing scam is to do your research carefully before hiring a tax preparer. First, avoid pop-up ads when choosing a tax preparer, especially those that are riddled with typos. Research any preparers you consider hiring by asking for references of previous clients and by looking for a physical address on their website. Be suspicious, as well, if they promise a large return without knowing anything about your finances.
Second, before hiring an individual or an agency to do your taxes, ask to see their Preparer Tax Identification Number (PTIN). If the “preparer” refuses to share their PTIN, you’re being scammed.
Finally, if you’ve already hired a preparer but you’re suspicious about their authenticity, look for these red flags:

• The preparer inflates numbers that affect your tax liability.
• The preparer claims ineligible individuals as your dependents.
• The preparer asks you to sign a blank form and promises to fill out the remainder after you sign.
• The preparer refuses to sign your form.

If your tax preparer follows any of the above practices, terminate your relationship with them immediately.

If you’ve been targeted: If you’ve been targeted by a tax filing scam, report it to the authorities as quickly as possible. Let the FTC know about the scam and alert the IRS. If you’ve shared personal information with the scammer, you are now vulnerable to identity theft. Check out the federal government’s page on identity theft recovery to learn what steps to take next.
Stay safe!

Questions? Want more information on Freedom? Contact a Freedom Federal Credit Union representative at freedomfcu.org or 1-800-440-4120.

About Freedom Federal Credit Union
Freedom Federal Credit Union is proud to be your financial partner. Freedom serves and is open to anyone who lives, works, worships, attends school, volunteers, or has family in Harford or Baltimore County, MD. As a credit union, we are committed to putting you first, not shareholders, and helping you achieve your financial goals.
Learn more at freedomfcu.org or call 410-612-2135 to see how we can help.

 

Your Turn: Have you ever been contacted by a tax-related scammer? Tell us about it on Facebook, LinkedIn,Twitter, or Instagram @FreedomFedCU.

 

About Freedom Federal Credit Union

Freedom Federal Credit Union is a community-chartered federal credit union offering consumer financial services to those who live, work, volunteer, worship, attend school, or have family in Harford and Baltimore Counties. Additionally, Freedom offers a full-line of banking services for all businesses, associations, and other organizations that are based in Harford or Baltimore County.  Freedom has been in business since 1953 and has six locations throughout Harford and Baltimore County. To learn more, visit freedomfcu.org.

 

Is Inflation Here to Stay?

Is Inflation Here to Stay?

Q: It seems like I have to take out a second mortgage just to fill up the gas tank and restock the pantry. Are these inflated prices a forever thing?

A: According to the most recent report by the Bureau of Labor Statistics, U.S. inflation is currently running at a 30-year high of 6.2%, and it’s showing no signs of slowing.

Inflation is not going anywhere soon

Rising prices in just about every sector is the new norm. The inflation rate fell at the start of the coronavirus pandemic, and during the nationwide lockdown. In March 2021, though, when the impact of halted manufacturing began hitting the market and crude oil prices started climbing, the inflation rate increased to 2.6% before hitting its current high of 6.2% in October. Experts, like the Trading Economics information technology company, had predicted that number would be around 5.5%, but even that prediction fell short.

Unfortunately for the average consumer who’s struggling to cover expenses amid rising costs, this means inflation isn’t going anywhere soon.

Why are prices so high?

There are several factors for the inflation bubble. First, suppliers are still catching up on production shortages that were caused by factory shutdowns during the pandemic. Second, climate disasters, like California wildfires and a drought in Brazil, are responsible for driving up prices in the food industry. The demand for higher wages, partially caused by the 11 million job openings in the U.S., and the rising cost of gas, are contributing to inflation as well.

What can consumers expect in 2022?

While no one can accurately predict the future, economists are expecting inflation levels to taper off by the middle of 2022. According to a survey conducted by the Wall Street Journal, many are expecting inflation to drop to 3.4% by June 2022 and to continue falling until it hits 1.8% by the end of the year.

 

Your Turn: When do you think the inflation rate will fall? Tell us about it on Facebook, LinkedIn,Twitter, or Instagram @FreedomFedCU.

 

About Freedom Federal Credit Union

Freedom Federal Credit Union is a community-chartered federal credit union offering consumer financial services to those who live, work, volunteer, worship, attend school, or have family in Harford and Baltimore Counties. Additionally, Freedom offers a full-line of banking services for all businesses, associations, and other organizations that are based in Harford or Baltimore County.  Freedom has been in business since 1953 and has six locations throughout Harford and Baltimore County. To learn more, visit freedomfcu.org.

 

Credit Cards: Reading the Fine Print

Girl holding a magnifying glass to her eye

Q: How do I read the fine print from my credit card issuer?

A: Fine print often has information you can’t afford to miss. Here’s the big deal on the small print found on credit card paperwork:

What do all those terms mean?

First, let’s take a look at 10 basic credit card terms that are important to know but are often misunderstood:

  • Accrued interest – The amount of interest incurred on the credit card balance as of a specific date.
  • Annual Percentage Rate (APR) – The rate of interest paid on a carried credit card balance each year.
  • Annual fee – The yearly fee a financial institution or credit card company charges you for having the card.
  • Balance – the amount of money owed on a credit card.
  • Billing cycle – The amount of time between the last statement closing date and the next one.
  • Cash advance – Money withdrawn from your credit card account, usually with higher interest rates and attached fees.
  • Credit limit – The maximum amount of money that can be charged to your credit card.
  • Grace period – The time the consumer has between making a purchase and being charged interest.
  • Late payment notice and fee – These will alert you to a missed payment and its fee for missing it.
  • Minimum payment – The smallest amount of money the consumer can pay each month to keep the account current and avoid fees.

Do I need to read the small print on my credit card application?

Those microscopic letters on your credit card application contain important information. Here are some common claims you might find on an application and what the small print below these claims actually says:

Claim: Sign-up bonus: $950!

Fine print: Must spend $3,000 on the card within the first three months of ownership.

Claim: Interest-free offer!

Fine print: Expires after 18 months, and then a 22.5% interest rate kicks in.

Claim: 0% balance transfer!

Fine print: But there is a $300 balance transfer fee.

Claim: Cash advance of up to $1,500!

Fine print: With 20% interest and a $200 cash-advance fee.

How do I find the fine print on my credit card application or statement? 

Read the fine print before you sign up for a credit card. You’ll find this information on the credit card’s paper or digital application under a label marked “Pricing and Terms” or “Terms and Conditions.” You can also find this information when researching credit cards online; it may be labeled as “Interest Rates and Fees” or “Offer Details.”

If you’ve already signed up for the card, you’ll find these conditions on the “Cardmember Agreement” that generally comes with a new credit card.

Your credit card statements will also have lots of fine print, though most of it will be on the back of the bill. The information there will include everything in your application, as well as some additional information about your monthly bill.

Your Turn: Have you ever regretted missing the fine print on your credit card paperwork? Tell us about it on Facebook, Twitter, or Instagram. @FreedomFedCU

About Freedom Federal Credit Union

Freedom Federal Credit Union is proud to be your financial partner. Freedom serves and is open to anyone who lives, works, worships, attends school, volunteers, or has family in Harford or Baltimore County, MD. As a credit union, we are committed to putting you first, not shareholders, and helping you achieve your financial goals.

Learn more at freedomfcu.org/personal/credit-cards or call us 800-440-4120 to see how we can help.