Tag Archives: Credit Union Difference

Veterans Who Received Disability Severance Owed Refunds

USAgencies Credit Union is the only Oregon credit union open to all Oregon Veterans, and we want to ensure all eligible veterans receive this important information regarding available tax refunds brought to you by our friends at the U. S. Department of Veterans Affairs.

 

The Internal Revenue Service is advising certain Veterans who received disability severance payments after Jan. 17, 1991, and included that payment as income, that they should file Form 1040X, Amended U.S. Individual Income Tax Return, to claim a credit or refund of the over payment attributable to the disability severance payment.

This is a result of the Combat-Injured Veterans Tax Fairness Act passed in 2016.

Most Veterans who received a one-time lump-sum disability severance payment when they separated from their military service will receive a letter from the Department of Defense with information explaining how to claim tax refunds they are entitled to; the letters include an explanation of a simplified method for making the claim. The IRS has worked closely with the DoD to produce these letters, explaining how Veterans should claim the related tax refunds.

Statute of Limitations

The amount of time for claiming these tax refunds is limited. However, the law grants Veterans an alternative timeframe – one year from the date of the letter from DoD. Veterans making these claims have the normal limitations period for claiming a refund or one year from the date of their letter from the DoD, whichever expires later. As taxpayers can usually only claim tax refunds within 3 years from the due date of the return, this alternative time frame is especially important since some of the claims may be for refunds of taxes paid as far back as 1991.

Amount to Claim

Veterans can submit a claim based on the actual amount of their disability severance payment by completing Form 1040X, carefully following the instructions. However, there is a simplified method. Veterans can choose instead to claim a standard refund amount based on the calendar year (an individual’s tax year) in which they received the severance payment. Write “Disability Severance Payment” on line 15 of Form 1040X and enter on lines 15 and 22 the standard refund amount listed below that applies:

  • $1,750 for tax years 1991 – 2005
  • $2,400 for tax years 2006 – 2010
  • $3,200 for tax years 2011 – 2016

Claiming the standard refund amount is the easiest way for Veterans to claim a refund, because they do not need to access the original tax return from the year of their lump-sum disability severance payment.

Special Instructions
All Veterans claiming refunds for over payments attributable to their lump-sum disability severance payments should write either “Veteran Disability Severance” or “St. Clair Claim” across the top of the front page of the Form 1040X that they file. Because all amended returns are filed on paper, Veterans should mail their completed Form 1040X, with a copy of the DoD letter, to:

Internal Revenue Service

333 W. Pershing Street, Stop 6503, P5

Kansas City, MO  64108

Veterans eligible for a refund who did not receive a letter from DoD may still file Form 1040X to claim a refund but must include both of the following to verify the disability severance payment:

  • A copy of documentation showing the exact amount of and reason for the disability severance payment, such as a letter from the Defense Finance and Accounting Services (DFAS) explaining the severance payment at the time of the payment or a Form DD-214, and
  • A copy of either the VA determination letter confirming the Veteran’s disability or a determination that the Veteran’s injury or sickness was either incurred as a direct result of armed conflict, while in extra-hazardous service, or in simulated war exercises, or was caused by an instrumentality of war.

Veterans who did not receive the DoD letter and who do not have the required documentation showing the exact amount of and reason for their disability severance payment will need to obtain the necessary proof by contacting the Defense Finance and Accounting Services (DFAS).


For additional information, or to read the original article head over to the U. S. Department of Veterans Affairs page HERE. Questions about USAgencies Credit Union? Contact us at 503.275.0300 Option 3 or stop in today!

Get More Treats with the VISA Platinum Rewards Card

With so many possible rewards cards on the market, it is hard to determine which one is going to be the best for your financial life.  The choices are endless and we know it is important that you make the right choice. That is why we are here to give you some information about our VISA® Platinum Rewards Credit Card. 

Rewards

Earn a point for every dollar you spend using your VISA® Platinum Rewards Credit Card.  You can redeem your points for travel, product discounts here at USAgencies, as well as merchandise.  You earn while you spend!

Charitable Giving

Being connected and serving our community is a major focus here at USAgencies Credit Union. That is why each year we invest 5% of the net income from our VISA® Platinum Rewards Credit Card.  back into our neighborhoods.

Travel and Emergency Assistance

Traveling can come with a lot of uncertainties, which is why it is always important to be prepared. Using a credit card that helps with emergency assistance, car rental insurance and lost luggage can bring you peace of mind while traveling. Our VISA® Platinum Rewards Credit Card.  has all those additional benefits and more.

Low Interest Rate and Less Fees

Part of the structure of a credit union is that we are not-for-profit, and by standing by those values, we are able to give back to our members with fewer fees and better interest rates. This is no exception when it comes to the VISA® Platinum Rewards Credit Card. . With a competitive low rate, no cash advance fee, a low late fee and more, this card is designed to save you money.


Get a VISA® Platinum Rewards Credit Card with us this July, and your annual fee is on us – FOR LIFE*. Ready to start your application today? Connect with us by calling 503.275.0300 Option 2 to speak with Loan Specialist today. Don’t forget to ask them about our current 

 

Teach Your Child to Save During Youth Savings Month

April is National Credit Union Youth Month, and it’s a great time for credit unions, like USAgencies, to focus on children in communities, and talk about some of the ways you can help set your child up for a financially successful future.

Here are some age appropriate suggestions for teaching children money management:

Ages 3 to 6 Years

Before children can handle money, they must first understand simple numbers. and know a penny from a nickel and a dime. Introduce coins by letting them handle money when buying small items.

At 5 or 6, give your child a dime and explain it will buy a piece of candy, or a toy, but not both. Money management involves choices and even at this age, when children spend, they need freedom of choice.

Ages 7 to 12 Years

When children begin to earn an allowance, help them use it wisely by putting part of it in a different envelopes or other containers for different purposes. Make sure sure to include one for savings.

Encourage your child to save by showing them some things that cost more than their allowance, and that they will have to save until they have enough.

Ages 13 to 18 Years

Teens experience managing money and making more decisions. Additional money beyond the normal allowance should not be given out generously. If you give them more, they may not learn the importance of planning, wise spending, and setting limits.

Share with your teenager the responsibility for spending part of the family’s budget. Have them prepare meals or do the weekly shopping; take them with you so they can learn how. Family budgeting will teach your teenager about living costs and values.


Ready to start a savings account for your child, or have some questions? We would love to help. USAgencies Credit Union offers many beneficial youth savings options. Give us a call at 503.275.0300 Option 2, or email at info@usacu.org.

 

I won $500 with Save to Win!

Congrats to USAgencies’ biggest Save to Win prizewinner yet–Jesse! Jesse took home $500 in a quarterly multi-state drawing this January.

Jesse’s very excited about his win and said this was a “nice surprise” and was thrilled with the “good news.” He mentioned he hadn’t won at the Credit Union level yet but that he hopes to win again soon… maybe with “a couple more zeros added onto that check” next time around.

Save to Win was developed by Commonwealth, the Filene Research Institute and the Michigan Credit Union League (MCUL). The MCUL launched the pilot program in partnership with eight Michigan credit unions in 2009 and has since expanded to include several states. The program is now administered by CU Solutions Group, an affiliate of MCUL.

To date, the program has awarded more than $2.3 million dollars in cash prizes and has helped credit union members save nearly $140 million nationwide.


 

To learn more about Save to Win at USAgencies Credit Union, visit https://www.usacu.org/savetowin.

ENGLISH insurance label

Tax Identity Theft Awareness Week

From our friends at the Federal Trade Commission

Tax identity theft happens when someone uses your Social Security number to get a tax refund or a job. You might find out it has happened when you get a letter from the IRS saying more than one tax return was filed in your name, or IRS records show you have wages from an employer you don’t know.

Learn how to reduce the chance you’ll be a victim and find out what to do if you are during Tax Identity Theft Awareness Week, January 29-February 2, 2018. The FTC and its partners are hosting a series of free webinars and Twitter chats. Follow the links below for information about how to participate.

Here’s what’s on tap:

Monday, Jan. 29

  • 2 p.m. EST ― The FTC and the Identity Theft Resource Center co-host a webinar for consumers. Learn about tax-related identity theft and IRS imposter scams, their financial and emotional impact, how to protect yourself, and how to recover if you become a victim.

Tuesday, Jan. 30

  • 2:30 p.m. EST ― The FTC, AARP Fraud Watch Network, AARP Foundation Tax-Aide program, and the Treasury Inspector General for Tax Administration host a webinar on tax identity theft and IRS imposter scams. Learn how tax identity theft and IRS imposter scams occur, how to avoid them, recovery steps for victims, and about free resources for you and your community.

Wednesday, Jan. 31

  • 11 a.m. EST ― The FTC and the Department of Veterans Affairs co-host a Twitter chat for service members, veterans, and their families. Learn how to minimize your risk of tax identity theft, and what to do if it happens to you. Join the conversation at #VeteranIDTheft.
  • 1 p.m. EST ― The FTC, the Department of Veterans Affairs, and the Treasury Inspector General for Tax Administration discuss tax identity theft, IRS imposter scams, and how to lower your risk of becoming a victim. This is a closed webinar for Veterans Administration employees, contractors, and patients.

Thursday, Feb. 1

  • 1 p.m. EST ― The FTC and IRS offer a webinar for small businesses: Protecting Sensitive Business and Customer Data ― Practical Identity Safety Practices for Your Business. Learn about tax-related identity theft, imposter scams that target businesses, practical cybersecurity practices for small business, data breach response, and free resources for your business, employees and customers.
  • 3 p.m. EST ― The FTC and the Identity Theft Resource Center co-host a Twitter chat about protecting yourself against tax-related identity theft. Get to know the warning signs, how to reduce the chance of becoming a victim, and how to recover if it happens to you. Join the conversation at #IDTheftChat.

 

For information about identity theft in general, please visit ftc.gov/idtheft.

Take Control of Your Money in 2018

A Credit Union Can Help You Become Financially Fit

Joining a gym, finally taking your dream vacation, or planning to spend more time with the family this year?  Why not make financial fitness one of your New Year’s Resolutions, too?  It’s do-able, and the first thing on your list should be to join a credit union.

Because credit unions are not-for-profit cooperatives, you’re a member—and an owner. Unlike for-profit financial institutions that must pay stockholders, credit unions return benefits back to you, the member. That means you pay lower fees, and get lower interest rates on your loans and credit cards.

Nearly two million Oregonians are member-owners of credit unions. Here’s how that helped their financial fitness last year: *

  • Collectively, their Beaver State credit unions delivered $180.5 million in direct benefits right back to them.
  • That’s an advantage of $107 that each member enjoyed because they banked with a credit union.
  • Every Main Street household with a credit union member, saw benefits of at least $203.
  • Consumers who got their new car loans from an Oregon credit union, are saving an average of $251 in interest during each year of a 60-month, $25,000 loan.
  • The interest rate that Oregon credit unions charge for credit cards, is as much as 5.4 percent lower than rates that profit-driven financial institutions are charging. That means Oregon’s credit union members spent $29 million less of their hard-earned money on credit card interest rates, than bank customers spent.
  • Credit unions cooperate. Most network their ATMS, meaning members have access to their money as they travel. They can use the ATM at almost any credit union, and they don’t have to pay those annoying fees!

*Source: Informa Research comparing not-for-profit and profit-driven financial institutions’ interest rates and fees in the 12 months ending June 30, 2017; National Credit Union Administration and Credit Union National Association.


Still not a member of USAgencies Credit Union? Join today!

Already a member, but know someone who could benefit from membership? Refer them to USAgencies and you’ll both be eligible for our Refer-a-Member drawing. 

USACU at the 2017 GAC

At the GAC‘Powerful Cause and Positive Effect’ was the theme for this year’s Credit Union National Association (CUNA) Governmental Affairs Conference (GAC). USAgencies very own Kathy Scholes, Vice President/CFO; Kasey Rockwell, Director of CU Relations; and Jeff Griese, Board of Directors 1st Vice-Chair, all attended the conference late February in our nation’s capital, along with over 5,000 credit union professionals and advocates from around the U.S.

Every year credit union proponents descend upon Washington D.C. to connect with peers, glean best practices, trade stories, and gain insights of the political landscape for credit unions and the financial industry. Attendees had the opportunity to hear from great speakers such as the Honorable Colin L. Powell; Kat Cole, Group President of Focus Brands; CUNA President, Jim Nussle; and a lineup of Congressional lawmakers and regulators from the National Credit Union Administration (NCUA).

Scholes, Rockwell and Griese met with Oregon credit union peers to ensure the message was consistent for lawmakers before they climbed the steps of Capitol Hill. They met with Congressman Blumenauer’s (D-OR-3) Deputy Chief of Staff and Counsel, David Skillman. There were about 30 constituents in the meeting, representing nine credit unions from the Portland area. Later in the afternoon Oregon credit unions also met with Senator Ron Wyden and staff from Senator Merkley’s office to share the same message. Some of the information shared with legislators included:

  • Credit unions are not-for-profit cooperatives and are inherently accountable to their members, not to Wall Street stockholders.
  • Members own their cooperative credit unions. This means financial dividends, lower interest rates on loans and higher interest rates on savings are delivered to member-owners as direct benefits.
  • The Northwest Credit Union Association recently commissioned economists at ECONorthwest to perform their second independent analysis on credit unions’ impact in our Northwest economy. They found that Oregon credit unions delivered $159 million in direct financial benefit to their 2 million member-owners. That’s $81 per credit union member and $156 financial benefit per member household, delivered through lower fees and better rates as a result of that cooperative structure.
  • The importance of Common-Sense Regulatory Reform and how one-size-fits-all regulations don’t work for small credit unions.
  • The costs of merchant data breaches and how costs should ultimately be borne by the entity that occurs the breach.

They ended the day with a reception on the Hill with credit unions from Oregon, Washington and Idaho. It was a long, but productive day!

Rockwell summed up her experience at this year’s GAC, “Sharing our credit union stories with elected officials is a great honor. Being in D.C. allows you to feel like you are a part of something bigger than your credit union. You can feel the energy of all of us working together to make a difference. Twenty years ago, was my first GAC and I still have the same excitement and feeling of honor to be a part of the Credit Union Movement. We are doing great things to help improve our member’s financial lives and are staying true to the foundational credit union philosophy of ‘People Helping People’.”

Griese left feeling inspired, saying “My testimony of the credit union movement has grown tremendously and seeing so many hard-working folks gathered together in an effort to improve people’s lives was inspiring and something I will not soon forget!”

Scholes shared her thoughts, saying “Attending the 2017 CUNA Governmental Affairs Conference was an amazing experience! Being one of 5,000 credit union professionals converging on the Capital to meet with elected officials to tell our story and fight for credit union interests was moving. I returned to Portland with a renewed interest to advocate for the credit union movement. Credit unions are good for consumers, our member-owners. We need to work to protect our unique structure and improve awareness to our members and potential members of who and what we are that makes us different from other financial service providers. ‘People Helping People’ by looking out for the financial well-being of our members and communities – what’s not to love!”