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Liz Weston

Q&A: Getting your delayed refund

November 14, 2022 By Liz Weston

Dear Liz: Here’s another option for the person whose tax return got amended and who was still waiting for a refund. Contact your member of Congress or U.S. senator. They have constituent service staff who might be able to prod the IRS. This worked for our family when we learned my late father was owed two refunds from a few years before his death. The abysmal IRS phone system kept hanging up on me. My U.S. senator happens to sit on an IRS oversight committee and his staff is the only reason we finally received the refund checks after 11 months of wrangling.

Answer: Thanks for sharing your experience. Constituent service staffs can be helpful in resolving serious problems with various government agencies, although many people currently expecting refunds will simply have to wait to get their money. That’s extremely unfortunate, since refunds are a financial lifeline for many struggling households.

As mentioned in the previous column, the IRS is still slogging through a massive backlog created by the pandemic and years of inadequate funding. Getting through on the phone remains difficult, so people’s first stop should be the IRS.gov website, which offers a number of self-help resources for routine tasks, including the “Where’s My Refund?” tool, the “Where’s My Amended Return?” status tracker and a wealth of articles, publications and calculators.

The next stop might be the Taxpayer Advocate Service, which allows taxpayers to file a request for assistance if a missing refund is causing financial difficulties. The service is also warning about significant delays in helping taxpayers because of the IRS backlog.

Filed Under: Q&A, Taxes

Q&A: Flexible spending account use-or-lose deadlines are back after a pandemic hiatus

November 14, 2022 By Liz Weston

Dear Liz: The hospital where I work was bought out by another hospital last summer. I was in a flexible savings account at that time with my workplace. I had to enroll in a second FSA through the new medical facility. Trying to keep these two separate FSA accounts was not easy. I thought by March 31 of this year, my 2021 FSA accounts were spent. However, I recently found out I still had $700 left in one of my FSA accounts. I contacted the organization, pleading my case in regards to the midyear takeover and the difficulty of trying to keep two FSA accounts straight. No luck! Do I have any recourse?

Answer: The rules about spending FSA money were loosened after the COVID-19 pandemic hit, but it’s possible your employer didn’t opt in to those changes.

Medical FSAs, which allow employees to put aside pretax money to pay qualified healthcare expenses, have “use it or lose it” provisions that require the money to be spent within certain time frames. Normally, the deadline is Dec. 31, but employers can offer a grace period that extends the cutoff to March 15 of the following year, or allow employees to roll over a few hundred dollars ($550 in 2021 and $570 for 2022).

The federal Taxpayer Certainty and Disaster Tax Relief Act of 2020 gave employers the option of extending their spending deadlines by up to a year, or allowing their workers to roll over all the funds left in their FSAs in 2020 and 2021. Employers weren’t required to make these changes, which have since expired.

If your employer didn’t change its rules, it may not be too late, said Nitasha Kadam, a tax analyst for Wolters Kluwer Tax & Accounting. Plans can be amended retroactively to provide this relief. But the deadline is fast approaching — changes for the 2021 plan year would have to be made by Dec. 31, 2022. It’s worth asking about, although your case might be stronger if you can find co-workers in the same boat.

In any case, this is a timely reminder for other people who have money left in their FSAs: Check the deadlines, and make sure you spend the money before it’s gone forever.

Filed Under: Q&A Tagged With: Flexible Spending Account, FSA

Q&A: Why you need a credit score

November 14, 2022 By Liz Weston

Dear Liz: I use a credit card for most of my shopping and pay the balance in full every month. The card was opened years ago as a business card, but the business has since been closed. My credit scores are high but my card isn’t listed on my credit reports. I believe that is because it’s a business card. Should this be of concern to me? My wife and I own our home outright and have no other debt.

Answer: Your scores should be fine as long as you have (and occasionally use) other credit cards that show up on your reports at the three major credit bureaus.

If you didn’t have other active credit accounts, eventually your credit reports would no longer generate credit scores. That could make it much more difficult and expensive to borrow money, rent an apartment, get a cellphone and, in most states, insure a home or a car.

Filed Under: Credit Scoring, Q&A

Visiting Europe? Check Out Its “Second Cities”

November 9, 2022 By Liz Weston

Graz’s clock tower.

If you’re planning a trip to Europe next year or two, consider adding some lesser known destinations to your itinerary.

As I wrote in my recent column, “6 New Rules For Smarter European Travel,” increasing crowds and prices in Europe’s capitals mean that you could get a better experience in a country by visiting one of its smaller cities:

For example, France’s third-largest city, Lyon, has a lovely old town, spectacular Roman ruins, world-class museums and amazing restaurants. Even in peak season, I found a three-star hotel room for less than $100 a night and never encountered any long, soul-killing queues for attractions that could make Paris a trial.

Similarly, we enjoyed Austria’s second-largest city, Graz, a beautiful, affordable alternative to Vienna, and pretty Delft, a canal city just an hour’s train ride away from Amsterdam.

I would never recommend skipping Europe’s marvelous capital cities. But as tourism rebounds – as it did with a vengeance this summer – we’ve found the smaller cities help save our sanity as well as our wallets. 

Let’s start with Graz, Austria. I’d never heard of it before my husband got an offer to teach drawing workshops there, but it’s Austria’s second-largest city (and Arnold Schwarzenegger was raised in nearby Thal). My husband loved Graz in part because it boasts the world’s largest historical armory. Shields, helmets, cannons and other weapons apparently are quite fun to draw.

Will Weston teaching in Graz’s armory.

A bit outside the city is an open air museum with homes and other buildings moved from all over southeast Austria. We’re huge fans of these museums, such as Skansen in Stockholm and the Ulster American Folk Park in Northern Ireland, because they provide an immersive experience of what life was like centuries ago in their countries. Plus, again, they’re fun to draw.

Like Vienna, Graz has plenty of baroque architecture as well as some Art Nouveau and ground-breaking modern architecture. (The modern art museum is nicknamed “The Friendly Alien” for its weird, bulbous shape.) There’s a magnificent cathedral, lively farmers’ markets and wonderful restaurants — I got hooked on the beef goulash at Glöckl Bräu, a casual eatery with tables beneath the dancing figures of the city’s 1905 glockenspiel. Graz also has an outpost of Cafe Sacher, the restaurant that invented the iconic Sacher torte. While the Vienna restaurant always had a huge line outside, I walked right into the Graz restaurant and had my torte within minutes. Another find was the rooftop restaurant at Kastner & Öhler (K&O) department store, which offered lovely views of the town and its hilltop fortress, including Graz’ iconic clock tower.

The tower is one of the few buildings that survives from a once-impressive fortress that was destroyed by Napoleon’s forces in the early 19th century. Now the area is a beautifully landscaped park with a few ruins, multiple entertainment venues and some restaurants, including the delicious aiola upstairs. You can access the fortress via a funicular railway, a long hiking trail or a steep set of stairs that will really give you a workout. Getting back down is much easier: there’s a corkscrewing slide, drilled right through the mountain, that you can ride for five euros (and yes, it’s a thrill).

Graz is about a two-hour train ride from Vienna, so it’s possible to stay there and take day trips into the larger city as well as into the neighboring countryside to visit wineries, castles and abbeys.

Lyon is, similarly, about two hours from Paris via high speed train. But in our many trips to Paris – including a month-long stay in 2014 – I’d somehow never made it there. Je regrette ça, as I think the French would say (mon français est awful). But while scrolling around during pandemic lockdowns, I’d discovered the website of a cinema arts museum in Lyon with a magnificent collection of miniature scenes, and was determined to get there.

A scene from Lyon’s cinema and miniatures museum.

My husband was teaching in Paris, so I booked a quick solo side trip.

Within an hour of arriving, I was checked in to a cozy three star hotel that cost about half what a similar accommodation would charge in Paris. The friendly woman who checked me in supplied me with a map, recommendations on what to do and a dinner reservation for a terrific bouchon, a traditional type of Lyon eatery, for dinner. She told me about the traboules, or hidden passages throughout the old town that reportedly were used by silk makers to avoid the rain, and urged me to visit the Roman amphitheaters (Lyon was the capital of Gaul back in the day). When she found out I was only staying a night, she shook her head regretfully and urged me to return for a longer stay with my husband. That experience was repeated several times – people would ask how long I was staying, and express dismay that my visit wasn’t longer. I can’t imagine a Parisian asking, or caring, how long a tourist was in their city!

Which brings me to the other advantage of visiting less-trampled cities: it’s just a warmer experience, with more opportunities to chat with locals and soak up the atmosphere.

The two other alternate cities I wanted to mention were in the Netherlands. Work took my husband to Rotterdam, and I took advantage of the time to explore that city and lovely Delft.

The Erasmus Bridge in Rotterdam.

Rotterdam used to look a lot like Amsterdam, but 13 minutes of Nazi bombing and three days’ of resulting fires effectively flattened the city. Today it’s known as “Manhattan on the Maas River” for its business orientation and its spectacular modern architecture. There’s an art storage facility that looks like a massive mirrored planter; a giant arched market hall with shops on the ground and apartments in the walls; bright yellow “cube houses” perched on their ends; and a spectacular train station with a soaring modern roof, among other notable buildings. The Port of Rotterdam is Europe’s largest, and a fascinating maritime museum offered insights into its history as well as opportunities for kids to pilot little boats in a protected bay. 

Rotterdam’s historic core wasn’t completely wiped out: In Oude Haven, you’ll find a small neighborhood of canals, historic buildings and a windmill that survived World War II. Not far away is a city museum with a small but immersive exhibit about life in Rotterdam during the occupation.

The old church in Delt. That’s not an optical illusion — the church has a serious tilt.

For more canals and quaint buildings, check out Delft, about 45 minutes from Rotterdam by train. Delft is popular with tourists but has a much saner vibe than anything-goes Amsterdam. It also has grand churches, a sprawling market square and – of course – shops loaded with the blue and white pottery for which it’s known.

And all these are just a fraction of the many, many alternate destinations there are to explore. Let me know if you find others. Happy travels!

 

Filed Under: Liz's Blog

5 ways to save this holiday shopping season

November 7, 2022 By Liz Weston

This holiday shopping season is shaping up to be longer, pricier and in some ways more chaotic than in previous years, which makes it easy to overspend. But there are also opportunities for significant savings if you know where and how to search for them.

“There are supply chain issues, inflation, major retailers reducing inventory — when you put all of that together, it looks like a recipe for disaster,” says Jill Cataldo, a consumer coupon expert based in Chicago. Her solution? “I started shopping now. If you see something and it looks like a good deal, it’s time to pick it up.”

In Kimberly Palmer’s latest for the Associated Press, find out the best ways to save money this Black Friday season.

Filed Under: Liz's Blog Tagged With: Black Friday 2022

This week’s money news

November 7, 2022 By Liz Weston

This week’s top story: Smart Money podcast on when your bank stiffs you, and co-signing risks. In other news: Job growth despite slight rise in unemployment, a high cost to stop inflation, and when the Fed hikes interest rates, who gets hurt.

Smart Money Podcast: When Your Bank Stiffs You, and Co-Signing Risks
This week’s episode starts with a discussion about what to do when your bank stiffs you with a low annual percentage yield.

Job Market Still Strong Despite Slight Rise in Unemployment
Job growth continues and wages remain strong despite forecasts predicting job losses in 2023.

A High Cost to Stop Inflation: Sink the Economy and Spark Unemployment
Money News & Moves: Fed interest rate hikes so far this year have been slow to move the needle on inflation.

When the Fed Hikes Interest Rates, Who Gets Hurt?
Federal Reserve Chairman Jerome Powell said in September that he wishes “there were a painless way” to lower inflation. “There isn’t,” he said.

Filed Under: Liz's Blog Tagged With: fed interest rate hikes, inflation, unemployment

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