Expect Tax Refund Delays



In late December 2007, Congress decided to freeze the expansion of the Alternative Minimum Tax (AMT), an outdated tax law from 1969. While this was great news for some 25 million tax payers, the late date of this congressional action will reportedly create major delays in the processing of tax returns and, more importantly, refund checks.

As you might expect, the IRS had already prepared its tax packages and computer programs to reflect the 2007 tax year by the time Congress made its decision. Because of this, the IRS has said that it cannot process certain AMT-related tax forms until February 11, 2008, which could result in an estimated 13.5 million refund delays.

The forms are:

8863, Education Credits
5695, Residential Energy Credits
1040A's Schedule 2: Child & Dependent Care Expenses
8396, Mortgage Interest Credit
8859, District of Columbia First-Time Homebuyer Credit
If you need advice on how to proceed with your 2007 tax returns, give us a call. We'll make sure you get the assistance you need to reach all of your financial goals and needs.

Frequent "Liar" Programs



On December 31, 2007, United Airlines' Mileage Plus program slashed its mileage-expiration policy from 3 years to just 18 months, continuing the recent trend begun by other major airlines, such as American Airlines and Delta. This means that going forward your miles will expire after only 18 months of inactivity. To make matters worse, this change is retroactive. This means that your miles may have already expired and you don't even know it!

If you're looking for ways to keep your frequent flyer account active without actually having to fly anywhere, there are several easy ways customers can do this, according to United Airlines:

Use or sign-up for a Mileage Plus Visa credit or debit card.
Purchase products or services from travel and retail partners.
Use miles for merchandise, hotel stays, and dining.
Transfer miles to another Mileage Plus member.
Donate miles to the Mileage Plus Charity Miles program.

Know the Codes for Big Savings



Each year, more and more people turn to the Internet to do their holiday shopping, and last year was no different. According to Forrester Research , US online retail sales over the holiday season alone grew 11% over the previous year, for a total of $33 billion.

This year, if you're planning to shop online and add to these incredible figures, do not buy anything without first checking out RetailMeNot.com, a great website that offers coupons and promotional codes that could save you big on the things you were already going to buy. The site offers more than 50,000 codes and coupons at any one time, so there's a good chance they can save you money on whatever you need. Also, be sure to check out Current-Codes.com and CouponMountain.com, similar sites also recommended by Kiplinger's Personal Finance magazine.

Clean Up Your Credit or Forget It



Just when home prices and interest rates are really starting to look attractive, Fannie Mae and Freddie Mac announced increased delivery fees and new Loan-Level Price Adjustments, making credit much more expensive for potential homebuyers and homeowners looking to refinance. These increased fees are mandatory and have nothing to do with your mortgage professional. They are simply Fannie and Freddie's way of recouping losses associated with the recent rise in delinquencies and foreclosures. Under Loan-Level Price Adjustments, additional costs are assessed to mortgages based solely on FICO credit score ranges that fall below 680. In the mortgage industry, this is called risk-based pricing, and it can really add substantial costs to a mortgage if borrowers aren't credit ready.

If you or someone you know intends to take advantage of the low home prices and the lowest mortgage interest rates in years, please call us right away. We'll get you a copy of your credit score and see what, if anything, needs to be done. Sometimes small changes to your credit profile can yield big results that could save thousands of dollars on your mortgage. Other times, professional credit repair may be required, and this process could take up to six months to reach the scores you need. If you'd like more information about these new fees or a free copy of our informative Consumer Credit Scoring Booklet, just contact us.

Pamela DePristo
Senior Loan Officer
pdepristo@houseloansok.com
www.iwillworkforyou.com