This month I have an interesting topic that might spark a little of a debate.  I was involved in a conversation with a friend of mine that made the following assertion.  They said, and I am paraphrasing, “Rich people (specifically Christians), who have achieved a level of financial success, should give away their competency (knowledge, skill, insight they contribute to their success) for free.  They already made their money and by selling their products, they are keeping the poor people poor, while they get richer.”  I knew immediately that didn’t sound right, but at the time, it was a group conversation and there wasn’t a lot of room for a discussion.  And to be honest at the time, I didn’t have the clarity I have now, but I still challenged the thought.  Now, I have more understanding from a scriptural basis and I want to share with you.

Should Christians give away their knowledge, skills, or wisdom for free to others that want it?  If you were to poll a group of believers, you would have no problem finding people on both sides of the debate.  But let’s remove emotion, use scripture as our guide, and draw our conclusions from the Word of God.  In Genesis 41, Joseph the great-grandson of Abraham has an encounter with Pharaoh, king of Egypt, when asked to interpret Pharaoh’s dream.  Joseph tells Pharaoh the dream is divine and God is showing him there will be 7 years of abundance and plenteousness followed by 7 years of grievous famine.  Then Joseph suggests Pharaoh impose a 20% holding tax (a.k.a. the “fifth part”) on the corn harvest of his people.  Basically, 1 of every 5 ears of corn would belong to Pharaoh.  That tax would be stored and held so when the 7 years of famine comes, there will be food for the people and they will not starve to death.  So Pharaoh appoints Joseph to oversee the matter and Joseph gets to work.  They stored up massive amounts of corn (the bible says, “as the sand of the sea” and it couldn’t be numbered).  And then the drought came just as God had said.  And it was bad. When the people of Egypt were famished and cried to Pharaoh because they were starving, he sent them to Joseph. And Joseph opened up the storehouses and SOLD the corn to the people so they can make food.  And all the countries came into Egypt to Joseph to buy corn because the famine was so sore in the lands.  Joseph didn’t give it away for free, but he sold it.  The people had to pay for it.

But what does God think about this? Surely, God wanted Joseph to give the corn away, right? I believe our answer is found in Proverbs 11:26.  And I think this because there is no other recording in the scripture of corn being sold.  The scripture says, “blessings shall be upon the head of him that selleth it [corn].”  So, are you telling me it is acceptable to God for Joseph to sell corn to people that will starve to death, but it is not acceptable for Christians to charge for the goods or services they offer?

I know this rattles some theological trees, but that’s OK.  You should never be afraid to challenge your own conclusions. Besides, shouldn’t the bible be the ultimate authority?  Please, understand my point. Do I think some people (even those who claim to be Christians) try to take advantage of the poor and the needy?  Absolutely. You can always find a charlatan selling blessed miracle water or special healing prayer cloths. But, do I think wealthy peoples should give away their possessions, just because they can afford it?  Absolutely not. You should always follow as the Spirit of God leads you, but God isn’t leading everyone down the same path.   The truth is some that have obtained a level of status, success, or achievement accomplished it through hard work and time and chance.  There is nothing wrong with wanting to prosper from accumulated knowledge, wisdom, and understanding or experiences.  And if you are seeking that wisdom (and the bible has tons to say about pursuing wisdom), you have to decide what is it worth to you.  It is your choice.  It’s ok to pay so. ne for their wisdom.  In fact, the bible tells you to do it! Proverbs, 23:23 says, “Buy the truth and sell it not; also wisdom, and instruction, and understanding”.  But it definitely is not wrong to make the offer.

So, maybe in future you will look at Christians that have a presence in the marketplace a little different.  If you don’t have the same appreciation for their services or products as the price tag warrants, that is your prerogative and there is nothing wrong with that.  You have the right to disagree and not purchase.  It is OK. It is fin. Do you, Boo! But don’t judge Christians and vilify them for creating the option to share for monetary compensation available.  Joseph did it. Solomon, the wisest and riches person to every live did it (2 Chronicles 9:22-24).  Why are you NOT doing it? I am just saying. God Bless.

Are you a last-minute sort of person? Do you only fill up after that little orange gas pump lights up on your dashboard? Do you wait to tackle that mountain of laundry until you have nothing clean (or even sort of clean) to wear? Hey, we’re not judging.

Procrastination is a real struggle. And if you wait until the very last minute to file your taxes, you’re not alone. About a third of Americans file their taxes in the last two weeks leading up to tax deadline.

While procrastinating on some things can lead to minor inconveniences (you can function on three hours of sleep, right?), procrastinating on your taxes can land you in a real mess.

Some of our Facebook fans learned their lessons about tax-time procrastination the hard way. So, to keep you from making the same mistakes—and to help make tax time less stressful—we’re sharing their stories as well as our tips to help you ace tax season.

You Have to File

For the first time in two years, the tax filing deadline hasn’t been extended due to COVID-19. Tax Day is April 18 this year.²

Let’s get one thing straight right off the bat: Ignoring your tax obligation won’t make it go away. Olga M. made that mistake twice and vows never to let it happen again: “For the past two years we have filed on October 15, late. Why? Because I’ve been unorganized and haven’t prioritized. The results? I’ve wasted $150–200 in interest.”

If you don’t file by Tax Day, here’s what will happen:

• If you’re getting a refund: You won’t be penalized for failing to file—but Uncle Sam won’t give you your money until you do. You have three years from the original deadline to file and still receive your refund.³ If you don’t file by then, you can kiss your refund goodbye.

• If you owe taxes: You’ll be charged a failure-to-file penalty of 5% of the taxes owed for each month—or part of a month—that your return is late, up to a maximum of 25%.⁴ You’ll also be charged interest (currently about 3%) on any unpaid taxes.⁵ If you filed on time but didn’t pay your bill in full, you’ll be charged a late-payment penalty (0.5% up to a max of 25%) and interest on your unpaid taxes starting the date payment is due, even if you filed at tax extension.

So, what if you can’t pay your tax bill and didn’t file an extension? Work with a tax pro to file as soon as possible! Why? Because the failure-to-file penalty can be 10 times more than the late-payment penalty. The sooner you file, the less you’ll have to pay!

Get Organized

We know digging through piles of clutter to find paperwork or trying to remember long-forgotten passwords to access online records isn’t fun. You’d much rather be doing something else with your free time (tennis, anyone?). But organizing your tax documents is a necessary part of filing your taxes—so why not go ahead and just get it out of the way? We promise you’ll feel better when it’s done.

Here are a few of the documents you may need to gather:

• W-2 forms
• 1099 forms
• Mortgage interest statements
• Receipts for tax credits or deductions like charitable giving, childcare and education costs, and medical bills
• Interest statements or Health Savings Account (HSA) statements

While you’re at it, start a folder for next year’s taxes and file documents as you receive them throughout the year. This tip helped Rachel H. “We’ve procrastinated year after year,” she said “The biggest lesson learned? I need to set up a filing system to keep the receipts I want to find for tax purposes.”

This past year, Rachel handed over all her tax documents to her CPA months before the deadline.

And once you’re organized, you can even file early.

Don’t know where to start? Our free tax preparation checklist can save you time and help you gather the right documents the first time around.

Waiting Can Cost You Money

The clock is ticking. So, just to be done with your taxes, you take the standard deduction, because who has time to itemize? And honestly, the Tax Cuts and Jobs Act about doubled the standard deduction, so it may not make sense for everyone to itemize their deductions.

But it is possible that your expenses add up to more than the standard deduction, which would make itemizing your best bet. Why? Because every deduction you claim reduces the amount of income you’re taxed on, lowering your tax bill. And while it might not make sense to itemize on your federal taxes, itemizing on your state taxes could save you a nice chunk of change.

Want help itemizing your deductions? Ask an experienced tax advisor for advice. But keep in mind that the longer you wait, the harder it may be to get someone to help. All the good ones may be booked through the end of tax season.

Get an Extension

If you start now, you should have time to file your taxes. But if you’re missing documentation—or something other than procrastination keeps you from hitting the deadline—you can request a six-month extension. Simply fill out IRS Form 4868 and submit it to the IRS by Tax Day.

But fair warning: An extension doesn’t buy you more time to pay your tax bill. It simply gives you more time to file. When you request an extension, you must estimate your tax liability (if any) and send payment with your request. If you don’t, you’ll be charged penalties and interest on the amount you owe after Tax Day.

Can’t cover it all by the deadline? Pay as much as you can when you file for an extension and try to knock out the balance before the IRS contacts you, which usually takes 30–60 days. If you can’t pay it off by then, you can apply for a payment plan. And good news—you can set up the plan on the IRS website without having to call and wait on hold for hours!

Written by: Ramsey Solutions

In the world of estate planning, wills and trusts often take center stage. They’re kind of like siblings (without all the fighting). Both are legal tools that transfer your stuff to those you love.

The main difference is that one takes over while you’re still alive and the other goes into effect after you die.

There are a few more important distinctions you should know about. Let’s go over each one, starting with the basics so you can decide what’s best for you.

What Is a Will?

A will is a legal document that explains what you want to happen when you die—and puts it all in writing. It outlines things like who you want to get your stuff, your money, and guardianship of your kids or pets.

There are many different types of wills. But for most people, a simple will is enough. In fact, for 95% of people, a will is all you need to establish a rock-solid estate plan—one that protects your family if something ever happens to you (and it will, eventually at least).

If you have less than $1 million in assets, you can just stop right here and get yourself a will. (Unless you really want to learn about living trusts as a kind of hobby. More power to you!)

If you think you might be in that 5% of people who need more than a will, keep reading.

What Is a Trust?

Trusts come in lots of different forms—close to a dozen, actually. So let’s focus on the most common ones and what they do.

Living Trust

A living trust lets you transfer your assets to loved ones quickly and easily. It’s “living” because it’s in effect while you’re alive, as opposed to a will, which only kicks into gear after you’re gone. You can put things like bank or savings accounts, cars, real estate, art, jewelry and even intellectual property (like your novel manuscript) in a living trust. But even though those assets are named inside your trust, other people can’t access them until after your death.

Revocable and Irrevocable Trusts

A revocable trust just means you can change the terms of the trust. How about an irrevocable trust? Yep, you guessed it. You can’t change the terms. For example, in an irrevocable trust, once you name the beneficiaries for your property, the names of those beneficiaries are set in stone and can’t be changed.

You can make most other kinds of trusts revocable or irrevocable. Revocable trusts are the most common, but even making changes to a revocable trust takes a lot of paperwork. Fun fact: Revocable trusts magically transform into irrevocable trusts after your death.

Charitable Trust

As the name suggests, a charitable trust is used to give away part of your estate to a charity. You can create a charitable lead trust (CLT) or a charitable remainder trust (CRT). The CLT is simple: You designate particular assets to go toward your favorite charity (like Agatha’s Donkey Shelter, for example). With a CRT, you put certain assets into the trust that you or your beneficiaries will get income from, and the rest of your assets go to one or more charities.

Testamentary Trust

A testamentary trust is one you create using a will. So in your will, you basically say, “When I die, this and this will be placed into a trust for this person.” The kind of trust (like charitable or special needs) you create is up to you.

Spendthrift Trust

Some people just don’t know how to handle money. If you’re looking at your loved ones and thinking, Yep—that’s them, a spendthrift trust might be a good option for you. This kind of trust allows you to control when and how your beneficiaries get your stuff.

Special Needs Trust

Using this trust, you can make sure any dependents with special needs will be supported and cared for after you’re gone.

Life Insurance Trust

Life insurance death benefits aren’t usually taxable. But if you’re super wealthy and your death benefit will cause your estate to be worth more than $12.92 million for a single person, those benefits will become subject to the federal estate tax.

So, a life insurance trust includes your insurance policy and can protect your death benefit from estate taxes when you pass away.

These are just some of the different types of trusts. They can get even more specialized depending on your needs. As you can see, trusts tend to be geared toward people with complex estates.

Bottom of Form

What’s Covered in a Will vs. Trust?

So, now that we’ve gone over what wills and trusts are, what sets them apart?

One of the most important differences between wills and trusts is the ability to name a guardian for your minor children. You can name a legal guardian in your will, but you can’t in a trust. So, even if you have a trust, you still need a will to make sure your kids are taken care of after you die.

Another important distinction between the two is that, unlike a will, a trust lets you skip probate court. Probate court cases can be expensive and drag on forever. So, skipping them is a big deal. If your estate gets mixed up in probate court because a loved one challenges the will, it could mean your family has to spend the next year heading to court while grieving. Not fun.

But remember, if your will is clear and you don’t have a huge estate (or if you have a lot of debt—yuck), probate won’t be a huge hassle. And you probably don’t need a trust.

And while we’re on the subject of probate court, let’s talk about some family stuff.

There’s a little crazy in every family. You know who they are in your family (and if you don’t, it might be you). But some families deal with more than their fair share.

Wills are best for families that struggle with trust issues (not the kind you’re thinking of) and tension between family members because probate court can resolve those issues. On the other hand, families who can handle healthy conflict and have a lot of confidence in each other are better off with a trust since they don’t need a probate court to babysit them.

And if you’re wondering if you can have both a trust and a will, the answer is yes. In fact, most people who have a trust have a will too.

Will vs. Trust: How Much Does It Cost to Set Up?

In general, trusts can be more complicated and expensive to set up and maintain than wills. The exact cost depends on the type of trust, your location, and how complex the document is.

But remember, even though trusts might be more expensive up front, they could save your family money in the long run by avoiding probate court.

Wills, on the other hand, are generally easier to create and cost less to carry out. So, they’re cheaper up front than a trust. Again though, the ultimate cost of a will depends on how simple or complicated it is.

Will vs. Trust: Which Is Best?

Now comes the big question: Should you get a trust, a will or (drumroll, please) . . . both? It really boils down to personal choice.

First, take a big-picture look at your needs and your overall life circumstances.

• Just a will: A will is the best option if you’re like the average person with a couple of kids and a house. You won’t need a lawyer unless there’s something really complicated about your situation. You can set up a will in just a few minutes yourself online. That means no more excuses. Get a will!
• Just a trust: A trust might be better if you’re older, your kids are grown, and your estate is worth at least $1 million. This way, you can avoid probate in a way that wills don’t allow.
• Both a will and a living trust: You might need both if you have a large estate and dependents. (Remember, the will fills in that guardianship gap.) And if you do get both, don’t worry about them bumping into each other. They’re separate legal instruments and there usually aren’t any conflicts between them (unlike siblings). If there is a legitimate conflict, the trust overrides the will.

Here’s a simple chart that outlines the pros and cons.

So, let’s wrap it all up. The main difference between a will and a trust is that almost everyone needs a will but most people don’t need a trust. Trusts might be more than you need for your situation, but they can also be a great tool if you have a larger estate.

Written by: Ramsey Solutions

What is a Gas Tax Holiday?

Article by Ramsey Solutions 

In a divided country, what’s one thing that can unite us all? Our shared hate of high gas prices. Ugh. If you haven’t felt the pain of ridiculous gas prices these days, you must be traveling around on foot or riding a bike (or a horse).

In 2022, gas prices made headlines when the average price of gas nationwide hit five bucks. Yuck. So how can we put a stop to these outrageous prices that are eating away at our paychecks? Some folks say the answer is a gas tax holiday. But before you bust out the streamers, toss the confetti, and order a piñata, let’s break down why a gas tax holiday isn’t going to save the day.

What Is a Gas Tax Holiday?

A gas tax holiday puts a temporary ban on the taxes charged when someone buys gasoline (aka suspends the gas tax). It might last for a month, three months or six months. Whatever the time span, a gas tax holiday just means consumers don’t have to pay gas tax during a certain amount of time.

What Does Suspending Gas Tax Mean?

When it all boils down to it, suspending the gas tax just means a gallon of gas would cost less. And you’d see a lower total cost when you go to fill up your gas tank.

If the gas tax is suspended at a state level, that means they’re suspending the state gasoline tax. And if the gas tax is suspended at a federal level—you guessed it—that means they’re suspending the federal gasoline tax.

How Much Is the Federal Gas Tax Right Now?

The federal gas tax is 18 cents per gallon of regular gasoline and 24 cents per gallon of diesel gasoline. The federal government uses money from gas tax to fund highways and public transportation through the Highway Trust Fund.

How Much Money Would a Federal Gas Tax Holiday Save?

Not a lot. If you drive a car with a 15-gallon tank, you’d save $2.70 each time you fill up. And if you fill up every week, a three-month gas tax holiday would save you about $32. Oh, goody—that’s not even enough to buy a full tank of gas for most cars right now.

A gas tax holiday might sound like the cure to high gas prices (if you listen to the media), but a $32 savings over three freakin’ months isn’t much of a reason to celebrate. Every dollar counts, but an extra 32 of them won’t solve all your problems.

Biden’s Proposal for a Federal Gas Tax Holiday

It’s safe to say everyone and their mom has been begging President Biden to do something—anything—about gas prices. His answer? Proposing a three-month-long national gas tax holiday.  And his idea sounds exactly like you think it would: For three months, drivers wouldn’t have to shell out money to pay for the federal tax on gasoline.

Now, that’s all fine and dandy—but not paying the gas tax isn’t exactly going to change your life. Will it lower the price you pay at the pump? Sure. But that doesn’t matter much when overall inflation is sitting at a whopping 9.1%.

So, will Biden’s federal gas tax holiday actually happen? Probably not. But stranger things have happened—like, you know, three stimulus checks in 12 months. When it comes to how the government spends money, you never know. And with the way things look right now, there won’t be enough support to pass the bill—which means the buck passes on to the states .

Which States Are Having a Gas Tax Holiday?

Since nothing has happened at a national level yet, states have taken matters into their own hands to make gas tax holidays (and even gas stimulus checks) happen across the country. See if your state made the list:

• California

California Governor Gavin Newsom couldn’t get his state’s gas tax completely canceled, but lawmakers did suspend some of the diesel gas tax. So the gas tax on diesel fuel in the Golden State will cost about 23 cents less now. (P.S. California has the second-highest gas tax in that nation, clocking in at 51 cents.)

• Connecticut

Back in March, Governor Ned Lamont signed a bill ditching the state’s 25-cents-per-gallon motor vehicle tax through June 30. But this gas tax holiday for the Constitution State has been extended until November 30, 2022.

• Florida

Governor Ron DeSantis made a one-month-long gas tax holiday official in Florida—but it doesn’t start until October 1, 2022. Still, residents of the Sunshine State will get a month-long break from paying gas tax.

• Georgia

If you’ve got gas prices on your mind, Georgia’s the place to be. The Peach State has had a gas tax holiday in place since early spring, and they’ve extended it through August 13, 2022.

• Maryland

Maryland was the first state to take up the gas tax holiday back in March 2022. But their little holiday is already over and Governor Larry Hogan is calling on lawmakers to pass another gas tax holiday.

• New York

Wait, does anyone drive in the Empire State? Some do (just probably not in New York City). Lawmakers in the state took up an extra-long gas tax holiday—from June 1 to December 31, 2022. That means New Yorkers won’t see gas taxes again until 2023. Happy New Year to them.

Don’t Wait Around for a Gas Tax Holiday to Save You

Here’s the hard truth: You can’t just sit around refusing to drive until a gas tax holiday happens. Most people have to drive somewhere and aren’t using a horse and buggy to get around (although it does sound tempting). And even if you try to avoid driving as much as you can, you’ll still need to fill ’er up sooner or later. Here’s what to remember when you need some gas-saving tips:

1. Shop around for gas prices.

Don’t just pull into the nearest gas station to fill up your ride (unless you’re running on empty and need gas ASAP). It always pays to shop around for gas and see who has the cheapest prices around you. That might mean you get gas closer to work instead of filling up in your neighborhood. Or you can use apps like GasBuddy and Waze that search your local area to find the cheapest gas prices around.

2. Join gas rewards programs and cash-back apps.

You know these exist, right? Look for gas rewards programs and cash-back apps like Upside that will reward you with cash every time you fill up.

But look out—don’t fall for any of those gas credit cards that offer you rewards or those buy now, pay later apps like Klarna (yup, they really will let you pay for your gas using an installment plan). It’s pretty dumb to pay later on down the road for gasoline you’ve already used up. No matter what kind of a “deal” you think you’re getting, it’s not worth it.

3. Budget for high gas prices.

We know it’s hard to budget for gas when the price literally changes daily (or sooner!)—but that doesn’t mean you should just stop budgeting for gas altogether. Nope. If anything, it’s even more important to stay on top of your budget now more than ever.

Need help keeping up with your budget from month to month?  Ramsey Solutions offers a great free budgeting tool, called EveryDollar.  There is a free version and a paid version which can be found on at the following link.  But, it will help you budget for gas prices and tackle anything inflation can throw at you. And fingers crossed—one day, that line item you use for gas will have a much lower number.

(https://www.ramseysolutions.com/ramseyplus/everydollar/everydollar-0722)