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Liz Weston

Wednesday’s need-to-know money news

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Today’s top story: The pros and cons of debt consolidation. Also in the news: The basics of travel cancellation refunds and vouchers, cheaper ways to access your credit line, and 5 considerations before becoming a digital nomad.

The Pros and Cons of Debt Consolidation
Consolidating may be a good idea if you can qualify for a low interest rate, make payments on-time and stay out of debt in the future.

Travel Cancellation Refunds and Vouchers: The Basics
Getting a refund depends on the type of travel booking you made and how far in advance you canceled.

Card Issuers Are Offering Cheaper Ways to Access Your Credit Line
Costly cash advances are no longer the only option for tapping into your available credit. But there are drawbacks to be aware of.

5 Considerations Before Becoming a Digital Nomad in the U.S.

What gig workers need to know about taxes

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If you became a gig worker during the pandemic, beware: Your taxes just got more complicated.

Gig work — Uber driving, Instacart shopping, Amazon Flex delivery and so on — is on-demand, freelance work that’s typically taxed as self-employment. Instead of having an employer withhold money from your paycheck, you’re an independent contractor who is expected to pay taxes on your gig income as you earn it. You’ll also owe a larger share of your pay to Social Security and Medicare taxes.

On the plus side, you may have more opportunities to deduct your expenses and save for retirement than you do as a W-2 employee.

In my latest for the Associated Press, unraveling the mysteries of gig worker taxes.

Tuesday’s need-to-know money news

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Today’s top story: How to get your savings resolution back on track. Also in the news: Where to look if your small business can’t get a PPP loan, breaking down the tax implications of PPP loans, and when you might get your $1,400 relief check.

Broke Your Savings Resolution? How to Get Back on Track
It’s not too late.

Where to Look If Your Small Business Can’t Get a PPP Loan
Small-business owners can turn to other SBA loans and grants from state and local agencies and organizations.

Breaking Down the Tax Implications of PPP Loans
Expenses paid with a PPP loan can be deducted on your taxes, even if that loan is forgiven.

When Will You Get Your $1,400 Relief Check?
It’s going to be a few weeks.

Monday’s need-to-know money news

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Today’s top story: Discriminatory practices leave Black Americans with less life insurance. Also in the news: How to keep your student loan payment at $0, a new episode of the Smart Money podcast on the lessons learned from Gamestop, and how to protect yourself from gas pump skimmers.

Discriminatory Practices Leave Black Americans With Less Life Insurance
Years of discrimination have led to a life insurance coverage gap between Black and white Americans.

How to Keep Your Student Loan Payment at $0
Take a look at income-driven repayment.

Smart Money Podcast: GameStop Lessons and Talking About Money With Your Partner
Understanding what the heck happened with Gamestop.

How to Protect Yourself From Gas Pump Skimmers
Scammers never rest.

Q&A: Age minimum for survivor benefits

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Dear Liz: I am 53 and Social Security is giving me a hold time for my widow support. What should I do?

Answer: The only thing you probably can do is wait.

Survivor benefits are normally only available once you turn 60. You can start as early as age 50 if you are disabled or at any age if you are caring for the deceased worker’s minor children.

Q&A: Dementia and financial accounts

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Dear Liz: You recently discussed the importance of adding spouses to financial accounts before one of them dies to make it easier for the surviving spouse. I wholeheartedly agree. I would add that this needs to be done sooner rather than later. If one of the spouses is diagnosed with dementia, the bank will likely not make changes to accounts. People have to be able to understand what they are signing.

Answer: That’s an excellent point. Another important task is to create powers of attorney for healthcare and finances. These allow someone else to make decisions for you if you are incapacitated. Someone in the early stages of dementia could sign such a document if they understand what it is, but otherwise the family might have to go to court to get a conservatorship, which can be an expensive process.