Kansas State University

The month of April is often seen as a hectic month in the personal finance world since it is normally when individual taxes are to be filed. As we know, the past year has been nothing short of hectic which has led to some changes from the IRS. During a news release on March 17th, the IRS announced that it was delaying the April 15 deadline for individuals until May 17, 2021. “This extension is absolutely necessary to give Americans some needed flexibility in a time of unprecedented crisis,” Richard Neal and Bill Pascrell said in a statement. “Under titanic stress and strain, American taxpayers and tax preparers must have more time to file tax returns. And the IRS itself started the filing season late, continues to be behind schedule, and now must implement changes from the American Rescue Plan.”

So, what does this mean? Under the notice, the postponement applies to anyone who files a federal individual income tax return on Form 1040, 1040-SR, 1040-NR, 1040-PR, 1040-SS, or 1040(SP) (the Form 1040 series) or has a federal tax payment reported on one of these forms that would be due April 15, 2021. The notice also postpones the time until May 17 for affected taxpayers to make 2020 contributions to their individual retirement arrangements (IRAs and Roth IRAs), health savings accounts (HSAs) and other related accounts.

It is important to note that taxpayers do not have to file any extension form, such as Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. There will be no penalty or additional expenses for not filing these forms out, they will be automatically taken care of by the IRS.

Given the extra month, there is even more time to have your taxes situated from the previous year. This is excellent news, and hopefully relieves some stress from what was a very stressful 2020.  Many students should file their federal and state tax returns to receive a refund of taxes previously withheld from their paychecks. If you need any assistance with preparing your tax returns, the K-State Research & Extension is operating the Volunteer Income Tax Assistance (VITA) site again this year. The tax preparation is free to eligible taxpayers and all tax preparers are certified for tax preparation by the IRS. There are three options for tax preparation by the VITA site:

1. One-on-One Appointment: available Wed-Thurs from noon to 6 p.m. in the Collaboration Space at the Manhattan Public Library. To request an appointment for a One-on-One Appointment: Book your appointment online at www.riley.ksu.edu. If you need assistance is setting up this appointment, email vitataxes@gmail.com or call 785-565-6426.
2. Drop Off Service with Review of Documents: available Tues-Thurs from noon to 6 p.m. in the Collaboration Space at the Manhattan Public Library. To request an appointment for Drop Office Service with Review of Documents: email vitataxes@gmail.com. If you do not have access to email, call 785-477-8877.
3. No Contact Drop Off Service: available Mon-Fri from 8:30 a.m. to 4:30 p.m. at the Riley County Extension Office. To use the No Contact Drop Off Service: emailvitataxes@gmail.com to receive the documents necessary to allow us to work your tax return with your documents.

This program prepares IRS 1040 tax returns and corresponding state returns for qualifying low to moderate income taxpayers. They cannot prepare returns for international students. All taxpayers will be required to provide proof of identify as required by the IRS; this includes social security card or other social security documentation that includes the complete social security number or previous year tax return. Photo ID is also required. For assistance or questions email vitataxes@gmail.com or call 785-477-8877.

Chace Prothe

Peer Financial Counselor II

powercatfinancial@k-state.edu

While most of us know the budgeting and observing spending process is incredibly important that does not make it easier to stick with the process. Budgeting can be overwhelming and time-consuming, especially when you are first trying to make it into a habit. To help make it easier to keep budgeting long term, here are a few strategies myself and others have found helpful.

1. Start Small

If creating a comprehensive budget seems like too much, break it into smaller chunks. Start by fully budgeting one or two categories for a month. What spending category do you really want to work on or think you are most likely to overspend in? For many people (including myself), this category tends to be groceries/ eating out. If I were to only focus on my eating out category, I would allot a certain amount of money to eating out. Each time I ate out, I would write the date, cost and place down. As the month went on I would adjust the budget or my behavior as needed. At the month’s, I would look back and see how I did, making any needed adjustments for the next month. As time goes on I would add more categories until I was budgeting all of my income. This is an example of one of the many ways to start small and work your way up.

2. Schedule Time to Follow Up

Most people find it overwhelming to track expenses each time they occur. One way to make logging expenses and reviewing spending habits easier, is to schedule a time at least once week to do it all at once. I have a friend who dedicates 30 minutes every Sunday to write down all his expenses from the week and check-in with his budget. Was he on track or did he need to make modifications? Simply scheduling a time on his calendar has made budgeting so much easier for him.

3. Automate as Much as Possible

One of the really nice perks of today’s technology is that you no longer have to manually input your spending, if you do not want to. There are free apps like Intuit’s Mint and NerdWallet that allow you to connect all of your accounts and they will track your expenses for you. Both will also send you notifications about your spending. A nice feature Mint has is that you can set up alerts that will notify you if you are over-budget, spending unusually or remind you of upcoming bills. The one caveat with this software is you may have to recategorize expenses later and add cash purchases, but automating the process makes it a lot less overwhelming. Additionally, you can have your budget and track spending all in one place through apps like Mint. Be aware, some apps like Mint are free while others may cost.

4. Be Realistic

Finally it is not easy, but you have to be realistic. Do you really think it is realistic to increase your savings from $0 to $500 a month when you make $450 a month and do not have the current capacity to bring more income in? I know it is not realistic for me. You need to give yourself time to adjust to the new habit you would like to build and stop shaming yourself for not being where you think you should be. Shame will not help you get where you want to be. Take it from someone who knows firsthand, it will just make it harder to get there and increase your chances of giving up on your goal.

If you want help with the budgeting questions or have additional questions about other topics, remember Powercat Financial is available for online or phone financial counseling sessions. They may be requested via our website link at www.k-state.edu/powercatfinancial.

Links: www.mint.com, https://www.nerdwallet.com/l/app

Anabelle Sanko

Peer Counselor II

Powercat Financial

www.k-state.edu/powercatfinancial

Understanding student loans can be an intimidating task, especially when trying to understand it by yourself. Today I am going to talk about a couple resources to help you as you go through both initially receiving student loans as well as tools to help you pay them off.

What is federal student loan entrance and exit counseling?

Entrance counseling is a tool provided by Federal Student Aid (FSA) for students in order to ensure they understand what exactly they are getting into when they receive a student loan. Federal student loan entrance counseling is required for undergraduate, graduate, and professional students who have not previously received a Direct Subsidized Loan or a Direct Unsubsidized Loan. It is an online process on StudentAid.gov that provides students with knowledge about their loans including terms and conditions, student rights, and responsibilities associated with taking out federal student loans. Through this process students learn what a loan is, how interest works within the loan, repayment options, and how to avoid misconduct and default.

Not only is it important for students to understand their student loan upon receiving, but it is also important that students have a plan for repayment. Exit counseling is required for students that either decide to leave school, graduating, or are below half-time enrollment. Exit counseling is similar to entrance counseling in a sense it also an online process to ensure student understand obligations and prepared for repayment. As students have already received federal student loans and are preparing to start their careers after college, exit counseling focuses on helping students paint a picture of what your federal student loan payments will look like after school.

Last month Federal Student Aid (FSA) announced new changes to both entrance and exit counseling in order to adapt the service to online tools including their mobile app for mobile access as well as an optimized web experience. National Association of Student Financial Aid Administrator (NASFAA) staff reporter Owen Daugherty writes “The updates to the entrance counseling bring shorter pages and briefer learning modules optimized for the web, in addition to newly incorporated loan repayment simulations that show borrowers the various repayment options. The College Scorecard will also be integrated into the session to allow for program-level data to be viewed by borrowers so they can estimate their debt and salary after they graduate.” Exit counseling has also received new additions to add a more personalized and in detail report of payment strategies. They have added a simulation tool that shows students a forecast of the process and resulting outcome for various different repayment strategies. Furthermore, the new addition also recommends the optimal repayment strategy for borrowers on the premise of employment, marital, and tax filing status. Finally, FSA has also made updates to their mobile app introducing a status center, a page for user’s personal documents, and a contact page.

How can additional in-person counseling with PF improve the borrowing process?

Even with improved access to information with online tools, students can still be confused on some aspects of their student loans and need more information. In-person counseling can be that solutions for students. Borrowers will still be required to complete the online entrance and exit counseling through StudentAid.gov, but Powercat Financial can help you navigate the often times confusing borrowing process by walking through with your different options and answering any questions you may have along the way. At the beginning of the borrowing process in-person counseling can not only explain what your student loans mean, but more importantly work with you to figure out the type and amount of student loans that makes the most sense for each individual student. The biggest mistake students tend to make when taking out loans is taking out too much or too little. Taking out the wrong amount can cause students to either pay more in interest if too much money is taken out or can force the student to take out additional loans if not enough money was taken out in the first place.

In-person counseling can offer services that online tools cannot provide with exit counseling as well. With new additions to exit counseling students can view their payments based on the simulation tool, but often lack the knowledge to properly select the option that best fits their needs. At Powercat Financial, we can walk you through this process step by step explaining the different aspects of the repayment process and explain what all of these differences mean while considering what options make the most sense for your individual situation.

If you have any additional questions or would like more information regarding student loans, Powercat Financial would love to help! To request a free appointment, go to the request an appointment link on our website at www.k-state.edu/powercatfinancial. Your session may be conveniently held via Zoom.

Alex Miller

Peer Financial Counselor I

Powercat Financial

www.k-state.edu/powercatfinancial

Sources:

Daugherty, Owen. “FSA Announces Updates to Mobile App, New Features for Entrance and Exit Counseling.” NASFAA, 24 Feb. 2021, www.nasfaa.org/news-item/24816/FSA_Announces_Updates_to_Mobile_App_New_Features_for_Entrance_and_Exit_Counseling.

It is the time of year that each undergraduate has been waiting for! The time where all your many years of hard work have paid off, you are months away from receiving your college degree and are ready to start your career. These past years in college have been preparing you to become the best employee for your desired career. You have learned the necessary education requirements, certifications, work experiences, etc. to get your dream job. Essentially you have developed yourself to be the best fit for your employer, but have you ever thought if your future employer is the best fit for you? It’s easy to get carried away once receiving a job offer from a well-respected employer but this is a huge decision that will impact your career and it should not be made in haste. Here are some tips to consider when determining whether to accept a job offer:

1. Fit Within the Company
   1. What is their mission statement?

A mission statement is a summary of an organization’s goals and values. The quality and content of a company’s mission statement can affect every part of a business, including its customers and employees. It is important for you as a prospective employee to learn and identify with the company’s mission statement because of the impact it has on the work you will do and your overall success at the company.

1. What are their core values?

Core values are personal values that guide you when making important decisions and doing work. Identifying core values for yourself or within a company can provide structure and instruction, especially when dealing with certain decisions. These values can inform you about how other people interact, the focus of a person or business’ work or the individual responsibilities one will hold.

2. Your Income and Taxes
   1. Difference between salary and hourly:

Understanding the differences between salary vs. hourly pay can help you decide whether to take accept a job offer. While there is an important distinction between the two employment classifications, there is not one that is necessarily better than the other. There are several advantages and disadvantages of hourly and salary positions that should be considered before accepting a job offer.

Salaried Employee Advantages and Disadvantages

Pros of being a salaried employee:

Fixed regular paycheck gives you a peace of mind

May offer a more flexible schedule

May allow opportunity to work less than 40 hours a week

Ability to miss work without being docked in pay

Cons of being a salaried employee:

May require you to be available during “off” hours

Usually does not pay for overtime hours

May require you to work more hours than an hourly position

 Hourly Employee Advantages and Disadvantages

 Pros of being an hourly employee:

Ability to earn overtime at 1.5 times your regular hourly rate

Will be paid at least the minimum wage for every hour worked

Can “work ahead” and take less vacation time

Offers flexibility for choosing work hours

Cons of being an hourly employee:

More difficult to count on an income

If you miss hours or a shift, you likely won’t be paid for that time

Can miss out on wages if hours or shifts are docked

Typically a less flexible work schedule

1. Pre-Tax Income

Once you have determined if you will be a salary or hourly employee, it is time to look at the estimated salary you will be earning and if that can support the cost of living in the location of your job offer. What can seem like a lot of money in your current state of residence can be barely enough to get by in another state. Each state comes with its own unique environment, culture, climate, and tax rates. Each state has different percentages of taxes they take out your income. Your job offer will give you a starting pre-tax salary, but it is especially important to look at how much income you will have to live on after taxes are taken out. This site from MIT, https://livingwage.mit.edu/, calculates the after-tax income that you need to live in your location of choosing, along with average expenses ranging from one single adult to two adults with the option to add up to three children. This site gives you an idea of the minimum salary you need to support yourself or a family along with an idea of the cost of living.

If you have a job offer that you are considering taking and have any questions about your offer you can visit Powercat Financial, where we offer free peer-to-peer financial counseling for students transitioning from school to work. A trained counselor can review your job offer packet and answer questions regarding your finances and benefits offered as you prepare to enter the workforce.

We’d also like to invite you to come experience a “real-world” Game of Life based on day-to-day financial decisions and learn how to manage your money. Join the Hands-on Banking® experience hosted by the Powercat Financial Student Advisory Board at 7:30pm on March 23^rd to learn more about budgeting, comparison shopping, and evaluating needs, wants, and trade-offs. Register at: https://forms.gle/gNCw7XFAKvXvrP1i6.

Rebecca Hernandez

Peer Counselor I

Powercat Financial

www.k-state.edu/powercatfinancial

Sources:

https://livingwage.mit.edu/

https://www.indeed.com/career-advice/career-development/why-mission-statement-is-important

https://www.indeed.com/career-advice/career-development/core-values

https://mint.intuit.com/blog/real-money-talk/salary-vs-hourly-1236/#:~:text=Salaried%20employees%20are%20paid%20a,such%20as%20%2415%20per%20hour.

Tax season is generally a time that most people enjoy, as getting a nice tax refund is always something to look forward to. However, small business/high wage earners such as doctors are likely to hear from the IRS. Understanding how taxation works can give you greater control of your finances. Types of taxes include income taxes, property taxes, sales taxes, estate taxes and more. Here are 4 tips on how you can get prepared for tax season.

1. Get organized to avoid mistakes – Start by getting everything organized and double check the accuracy of forms you have filled out, EIN numbers, social security numbers, and identification. Then put everything in a folder where you will remember for next year them (W-2s for income, 1099s for interest/dividends, 1098-T for tuition paid, 1098-E if you paid student loan interest, 1099-G for unemployment compensation received, etc.). Also check out https://www.nerdwallet.com/article/taxes/tax-prep-checklist for a tax prep checklist.
2. Avoid excessive or underutilized deductions – Claiming excessive or unrealistic deductions can attract the IRS attention. Make sure your deductions are backed up by proper documentation.
3. Document large charitable donations – Charitable donations are very helpful to the community and can result in very large tax deduction. Be sure to classify your charitable donations as business or personal. Previously, charitable contributions could only be deducted if you itemized your deductions. However, taxpayers who don’t itemize deductions may take a charitable deduction of up to $300 for cash contributions made in 2020 to qualifying organizations.
4. Get your taxes done for free – There are plenty of places you can file your federal and state taxed for free. It may take some practice but once you learn how to do it you won’t forget and can do it for yourself.
   • Check out Volunteer Income Tax Assistance (VITA) here in Manhattan, KS. VITA is an IRS sponsored program that trains and certifies volunteers who wish to prepare tax returns for low-income individuals for free. See details at https://www.riley.k-state.edu/VITA%20Site%20Flyer%202021%2020200125.pdf
   • IRS provides access to federal tax preparation online for free for certain filers at https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free
   • TurboTax is another free website you can use to file your own taxes. There are also professional accountants that can help you for free or for a small fee depending on your income.
5. What do Taxes Pay for and what are taxes – Tax is money that is collected by the US government to help fund things like schools, roads, parks, hospitals, and other public services. Payroll taxes fund Social Security and Medicare and are deducted from your paycheck as well from your employer.
   • Direct taxes – Money that is paid straight to the government by the individual or business.
   • Indirect taxes – Money that is paid from included sales tax, value-added taxes, and tariff.

Schedule an appointment with Powercat Financial so we can help you find the right financial advisor that will fit you and your tax needs. To request a free appointment, go to the request an appointment link on our website at www.k-state.edu/powercatfinancial. Your session may be conveniently held via Zoom.

Tyson Rodriguez

Graduate Assistant

powercatfinancial@ksu.edu

http://www.ksu.edu/powercatfinancial

Food can be one of the main expenses for a college student. From grocery shopping, being pressured by friends to eat out, or simply grabbing a quick meal, a college student’s income can quickly be depleted. In the midst of our busy schedules, it can be difficult to trade convenience for saving money. Luckily, there are tips that can make both saving money and eating conveniently possible! I hope these suggestions can help with eating well on a budget and navigating grocery shopping seem a little more attainable.

How to eat cheaper? 

1. Eat at Home

I have found that one of the easiest ways to save money during college is to eat at home. I can make a meal that will last me a few days for the price of eating out once. I choose a couple of options for breakfast and dinner, and then eat leftovers as many times as I can. This simplifies grocery shopping, and I don’t have to cook near as often. I also always have a few options of fruit and/or vegetables on hand to keep a balanced meal.

2. Choose meals with ingredients that are cheap and variable. 

Meal Ideas:

Quesadillas- You can use cheese, beans, meat, pizza, vegetables or even banana and peanut butter.

Soup- Normally, soup recipes just take a lot of canned goods, broth and spices.

Potatoes- My favorite way to have potatoes is to roast them in the oven. I put chicken breast, potatoes, and green beans with Italian seasoning powder in the oven and it is a great meal!

Salad- You can make your own salad or get the salad kits and add some chicken in them.

Pasta- Noodles can be so versatile and require few extra ingredients. Sometimes all it takes is some alfredo sauce!

Pizza- You can make this with pizza crust, bagels, flat bread, tortillas, or anything else you have on hand.

3. Check out places around Manhattan that help students by providing food. 

St. Isidore’s offers a free meal (plus breakfast) each Wednesday at 5:30pm for anyone. https://www.facebook.com/konzastudenttable/

Riley County has many resources available if you are in need of food or want to donate. There is a new helpful online tool to connect you to food sources: https://nourishtogether.org/?fbclid=IwAR3W6cgpVOCqJPUgawFY59FrxJXzriqkDoJ75S_oEe64VkU8Dlm7xepEejc

Cats’ Cupboard is a free food pantry located on campus in Fairchild 009. Check out their website for their hours and more information. https://www.k-state.edu/cats-cupboard/

HandsOn Kansas State, in conjunction with Harvesters Community Food Network of Topeka, hosts three mobile food distributions during the spring 2021 semester at 4 p.m. in parking lot C-1 of the Chester E. Peters Recreation Complex. The mobile food distribution is open to all members of the K-State and Manhattan community with fresh fruits and vegetables offered at no cost, while supplies last, on the following dates:

Friday, Feb. 19

Friday, March 12

Friday, April 9

How to shop for groceries efficiently? 

Before:

Before you head out to go shopping, set a budget for how much money you can spend on groceries. Then, start the process of making a grocery list. Look to see if you can use anything in your fridge. You may only need a few more ingredients to make something. If it is close to expiring, use it! Also, check your freezer for items that you may have forgotten about. After you are aware of what food you have, make a list of what you need and stick to it!

During:

While shopping, there are a few tips to cut down the total bill. It helps to look for the “unit price” that shows how much an item costs per pound/ounce. This helps compare brands and sizes of items in order to get the best deal. Another tip is to avoid shopping at eye level. Generic and cheaper items will be on the lower or higher shelves. Something that helps me is to choose one fun item or treat that I get each trip. Mine is often a bag of chocolate chips. If I limit myself to having one, then I get to look forward to that each week and avoid buying too many snacks. To combat impulsive buying, practice saying no to something each time you go to the grocery store. It helps improve self-discipline and save money at the same time!

After:

Now is the time to go back to your budget to record your expenses. This can be done by simply writing down how much you spent, or you can split it into categories. The idea of this is to be mindful of your spending habits and then determine if your expenses are exceeding your available amount to spend.

These are just a few tips that can make cooking and grocery shopping a little easier while being a busy college student! If you would like even more information on this topic, please check out this folder full of resources to help you out: https://drive.google.com/drive/folders/1SzJjVuZ9cDGqt7c2cytcvW7_-zQDMJll?fbclid=IwAR3Rwy-kKnaUq3F-8rRt5f6XeTBLlMoyv9TZd_o7f0NwD7JCb7n681UZdrY.

If you have any more financial questions or would like to create your own spending plan to help lower food expenses, Powercat Financial is happy to help! To request a free appointment, go to the request an appointment link on our website at www.k-state.edu/powercatfinancial. Your session may be conveniently held via Zoom.

Laura Peterson

Peer Financial Counselor I

Powercat Financial

www.k-state.edu/powercatfinancial