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Loretta Hixenbaugh, Social Security Manager, Wilmington DE

Millions of taxpayers are busy gathering all the forms and documents they need to file their Federal, State, and local tax returns.  If you receive Social Security benefits, one of those items may be your SSA-1099 from Social Security. Some people who receive Social Security may have to pay taxes on a portion of their benefits. If you're one of these individuals, a Social Security Benefit Statement (Form  SSA-1099) is an important tax document for you to have.

Social Security mailed the SSA-1099s for tax year 2010 to all beneficiaries in January. If you receive Social Security and need a replacement SSA-1099 for 2010 in order to file a tax return, you can request it online at www.socialsecurity.gov/i1099. The SSA-1099 shows the total amount of benefits received in the previous year and is used to find out if any Social Security benefits are subject to tax. The Federal tax laws about Social Security benefits provide that:

·Up to 50 percent of Social Security benefits may be subject to Federal income tax for individuals with a combined income between $25,000 and $34,000, or for couples with a combined income between $32,000 and $44,000; and

·Up to 85 percent of Social Security benefits may be subject to Federal income tax for individuals with a combined income above $34,000, or for couples with a combined income above $44,000. (Note: "Combined income" means adjusted gross income, plus nontaxable interest, plus one-half of Social Security benefits.)

For more information on taxation of Social Security benefits, visit the IRS website at www.irs.gov. To request a replacement SSA-1099, visit www.socialsecurity.gov/i1099 

BUDGETING: YOUR FOUNDATION FOR FINANCIAL SUCCESS

In today's economy most of us are looking for ways to improve and safeguard our personal finances.  Budgeting is an important step to achieving this goal.   When a group of consumers recently were asked why they didn't have a family budget, they replied they didn't know how to set one up, they didn't have time, or they found the budget process too complicated and constraining.  If any of these reasons ring true for you, think again.  A budget is simply a PLAN for spending your money with purpose. Setting one up is easy, and sticking to one will provide you with increased financial freedom and security.  Still unconvinced?  Consider this:

Creating a Budget Only Involves Three Simple Steps. First, determine your monthly income by looking at pay stubs and listing other sources of income, such as child support or dividends.  Next, track your expenses. List the fixed monthly payments you make, such as for your mortgage or rent, car loan, utilities, insurance, and taxes.  To discover where the rest of your money goes, review your checkbook / bank statement and jot down the additional amount you spend on items such as transportation, entertainment, lunches out, snacks, etc.  Finally, take a look at the bottom line.  Subtract your monthly expenses from your monthly income.  If you come out with money left over, you are living within your means and should begin a savings account.  If you have less income than expenses, it's time to look for ways to spend less.  Note:  If you need help setting up a budget, CCCS of MD and DE has a free, interactive budget worksheet located on its website (www.cccs-inc.org).

Small Spending Adjustments Produce Big Savings.  Staying on budget doesn't generally require giant financial sacrifices.  Small changes in lifestyle may put you back on track.  Consider what you spend on food, utilities, transportation, and entertainment.  Costs in these areas can often be trimmed.  For example: Prepare food instead of buying prepackaged meals, pack a lunch instead of eating out at work, or buy food items in bulk instead of small units.  Save money on utilities by turning off the lights, turning down the temperature on the water heater, and taking shorter showers.  Reduce transportation costs by keeping your car tires properly inflated, carpooling, and taking public transportation. On the entertainment front, consider changing from a premium to a standard cable or satellite tv plan, rent DVDs instead of taking your family out to the movies, or look for free activities to attend such as concerts at local colleges.  The CCCS of MD & DE website offers more ideas on how to reduce your expenses.

Budgeting Leads to Lasting Rewards.  It's easier to stick to a budget if you start with realistic expectations, keep a positive attitude, and stay motivated.  A budget allows you to control your money instead of letting it control you.  A budget makes it possible to live within your means and reach savings goals.  The increased financial security that accrues from budgeting offers a cushion against potential job loss.  The peace of mind it supplies may improve your marriage and relationship with others, help you worry less, and sleep better at night! 

Consumer Credit Counseling Service of MD & DE, Inc. (CCCS) is an accredited nonprofit agency that has served the local community since 1966.  CCCS is dedicated to helping individuals and families resolve their financial problems. We promote the wise use of credit through education and confidential budget and money management counseling.  Please call 1-800-642-2227 or visit our website at www.cccs-inc.org to find out more.  DE State License #07-01.

Looking for more information on budgeting and money management? Attend a Money School class!  

Visit www.delawaremoneyschool.com for a complete class listing.

Meals for a $teal  

Colcannon

Celebrate St. Patrick's Day with this delicious, traditional Irish dish!  

    * 2 1/2 pounds potatoes, peeled and     cubed

    * 4 slices bacon

    * 1/2 small head cabbage, chopped

    * 1 large onion, chopped

    * 1/2 cup milk

    * salt and pepper to taste

    * 1/4 cup butter, melted

   1. Place potatoes in a saucepan with enough water to cover. Bring to a boil, and cook for 15 to 20 minutes, until tender.

   2. Place bacon in a large, deep skillet. Cook over medium high heat until evenly brown. Drain, reserving drippings, crumble and set aside. In the reserved drippings, saute the cabbage and onion until soft and translucent. Putting a lid on the pan helps the vegetables cook faster.

   3. Drain the cooked potatoes, mash with milk and season with salt and pepper. Fold in the bacon, cabbage, and onions, then transfer the mixture to a large serving bowl. Make a well in the center, and pour in the melted butter. Serve immediately. 

Earn Purses hours! Submit your signature recipe! 

e-mail Tami@dfli.org