Author Archives: TimberwoodBanks Blogger

Give to others and yourself with tax deductions this season!

donations and taxes

During the season of giving, Americans dig into their pockets to give back to their favorite charities. You can give and receive this holiday season with tax deductions on charitable donations, minimizing taxable income and lowering the total amount you owe come April 15. Check out charitable giving FAQs from Timberwood Bank to help you make the most of your generosity.

Where does my gift need to go to make it tax deductible?

Score a deduction by itemizing and filing a 1040 form when you donate to a qualified organization. Non-profit institutions like religious groups, public government causes, nonprofit schools and hospitals, public parks and recreation areas, and war veterans’ groups fall under the qualified category, whereas for-profit entities, individuals, or political candidates for public office, don’t make the cut.

What’s with itemizing?

There are two types of deductions: standard and itemized. Standard is a fixed amount that reduces the income you’re taxed based on your filing status and age. Itemized lets you list your deductions on a schedule, which includes filings like property taxes and charitable donations. If you claim standard instead of itemized on gifts, you may not receive the deduction you deserve.

How much can I deduct from charitable donations?

If your cash benefits a public organization, deduct up to 50 percent from that year’s Adjusted Gross Income (AGI). That means that a $25,000 donation from your $40,000 AGI will only let you claim $20,000 on your charitable gift in the year that you give it. You can, however, roll over that extra $5,000 up to five years after donating. For contributions to private donations like the Bill & Melinda Gates Foundations, use the same rules but swap 50 percent with 30.

I donated stuff, not cash. Does that count?

Yep! Household goods (clothing, furniture, certain appliances, etc.) and other personal property can be claimed based on fair market value. However, it must be in good or better shape that when it was first purchased for the IRS to count it as a deduction. Regardless of the item, keep track of receipts from your donated items, which is especially required for donations of more than $250.

You’ll want to consult your Tax Advisor if you have any questions about how your charitable giving might play out on your tax forms.

The 5 Most Important Elements of Savings Plans

savings plan

Hearing the call to start a savings plan? Answer it! But first – do you know what’s pushing you to do it, how to get there, and what obstacles could deter your path to financial success? Timberwood Bank breaks down the five keys to keeping you on track as you save.  

#1: How You Think Affects What You Save

Say you’re aiming to save $10,000 for your child’s college tuition. That’s no chump change. Savings plans often fail because they seem too daunting of a task. The key? View it in smaller, manageable chunks and not one large lump sum.

#2: It Takes Time

It’s an unavoidable truth. Unless you land a bonus or secure funds elsewhere, recurring bills won’t allow you to squirrel away $1,000 all at once. Bit by bit, $25, $30 or $50 at a time is what makes it possible. Saving is about delayed gratification. Save now to savor the gain later.

#3: Consistency is Crucial

Saving money thrives on consistency. It can be as easy as automatically transferring a set amount from your checking account to your savings account every week. However you go about saving money, try to keep it as simple and routine as possible.

#4: You Need to Be Real with Yourself

Living a responsible life and saving what you can = good. Starving yourself and living desperately = bad. Be realistic about your saving, both in what your target is and how you’re going to get there. Food, housing and health take up a serious chunk of your income. Set an attainable amount per month to achieve in small increments.

#5: Cutting Loose Can Save You Big

All savings and no play makes your budget a pain to follow. Depriving yourself of any little purchases here and there makes you more at risk to snap and drop $200 on an impulse buy. Budgeting in a little wiggle room makes it easier to spend responsibly and keeps you from feeling weighted down your obligation. Just remember to keep track of your small expenses; they add up fast.

No matter how much you’re aiming to save, Timberwood Bank is ready to help. Contact one of our personal bankers to start your journey today!

Do Good this Holiday Season: 7 Tips to Spread Holiday Cheer

blog-donations

When you think of the holidays, what do you picture? Extended family gathered around a dinner table with a feast set in front of them? Wrapping gifts while sipping on hot chocolate? The truth is that while many of us are fortunate enough to have these experiences, many of our fellow community members are not.

But we can all help. There are some great organizations in our community that we can work through. There are also some things you and your family can do to help those who need assistance this holiday season.

Take a look at the list and identify which good deeds you can do this holiday season.

Continue reading →

Survival Tips for Black Friday

blog-black-friday

Ah, Black Friday is upon us once again, and while we can’t say we’re fans of stores opening on Thanksgiving night, we recognize that Black Friday is an annual tradition for many of our customers.

As your bank, we want you to be properly prepared, both financially and in terms of safety. We’ve compiled some tips to help you and your bank accounts make it through Black Friday unscathed. Take a look and give them a try this year!

Continue reading →

How to Eliminate Holiday Stress for a Great Thanksgiving

blog-thanksgiving

We all know what a picture-perfect Thanksgiving looks like. There’s a family gathered around a table filled with a royal feast. There’s a giant turkey, plenty of mashed potatoes and gravy, green bean casserole and cranberries. Oh, and don’t forget pumpkin pie with whipped cream for dessert.

However, all this amazing food may not be possible if you’re running a tight budget. Never fear, though, as a great Thanksgiving experience is still possible.

Continue reading →

Best Budgeting Apps to Use

blog-budgeting-apps

Think about what you use your smartphone for: sending texts, taking pictures and oh yeah, making calls. But it can also play a large role in your personal financial management as well.

If you already use Mobile Banking, you know this to be true. While our Mobile Banking app does a lot of amazing things, but you may have to look to other apps for a visual budgeting tool. Fortunately, you have plenty of options to choose from.

Continue reading →

How to Keep Your Brain from Making You Overspend

blog-spending

Nothing beats that post-purchase rush – except, perhaps, the post-purchase panic. From Cloud Nine one minute to the depths of “I regret everything!” the next. What gives? Your brain’s reward center lights up when you spend money, pumping out a chemical that makes you crave more.

Knowledge is power, so let Timberwood Bank help you understand your brain before it busts your wallet.

Continue reading →

Take Advantage of Online Bill Pay

blog-bill-pay

No one really enjoys paying bills. However, to have a home, vehicle, cable, electricity and other amenities, monthly payments are a necessity in life.

Think about the way you pay your bills right now. You have to make sure you have envelopes and stamps on hand, as well as checks. You fill out the check, seal it in the envelope, mail it and then wait. Who knows how long your check will take to be processed?

What if there was a better way to pay bills, or even pay people to whom you who money? The truth is, such a solution exists, and we offer it right here at Timberwood Bank: Online Bill Pay.

Online Bill Pay is accessible through your Online Banking account, and is quite simple to use even for those of us who are not as tech-savvy as our kids. In order to pay a bill, you follow these steps:

Continue reading →

5 Fall Home Projects to Keep You (and Your Wallet) Warm & Fuzzy

blog-home-improvement

Fall has once again come to Wisconsin, which means a few things have become certainties: college football on Saturdays, the return of your favorite jacket to your wardrobe and local farmers finishing up the harvest season.

Another certainty is the eventual change of the weather from pleasant and crisp to windy, cold and miserable. Luckily, the weather in October is generally nice enough to allow you to make some final renovations to your home to save energy once the temperature begins to drop.

At Timberwood Bank, we’re all about trying to help you save money. Try these short, but beneficial fall home projects to save energy and money throughout the fall and the rest of the year.

Continue reading →

Keep Cyber Monsters at Bay for Cyber Security Month

blog-cyber-security

Ghosts and goblins are spooky, but know what really sends chills down the spine? Cyberattacks. Last year, nearly one million computer viruses and malicious software pieces were unleashed each day. October is Cyber Security Month, and Timberwood Bank is giving you a couple of treats to avoid sneaky hackers’ tricks.

08 Continue reading →