New state-by-state resource for caregivers

For anyone who’s helping look after an older relative, the Family Caregiver Alliance’s state-by-state Family Care Navigator, which we mentioned in a blog post last month, is now up and running. Just click on this map for information on services available in your or your relative’s state.

Series I Savings Bonds pay nothing

Well, not quite nothing. But for the first time since these inflation-adjusted savings bonds were introduced in 1998, Series I bonds bought from now through October won't pay any fixed-rate interest. You'll still keep up with the inflation, but only just.

The earnings rate of Series I Savings bonds is a combination of the fixed rate, as set by the U.S. Treasury, plus a rate that tracks the rate of inflation, as measured by the Consumer Price Index. As of May 1, the fixed-rate portion was set at zero percent; the inflation component was set at an annual rate of 4.84 percent. So, based on the current reading, I bonds will pay a 4.84 percent annual percentage yield through the end of October. Every six months thereafter, the payout readjusts to conform with newer CPI readings, but the fixed rate will remain at zero.

On the one hand, not paying anything above and beyond the "official" rate of inflation seems a bit miserly.  However, the interest you earn is exempt from local and state taxes, as long as you don't touch the principal, and finding a commercial instrument yielding as much is a tall order these days.  —Chris Horymski

Where's my stimulus payment (tax rebate)?

The IRS recently posted a new interactive worksheet on its Web site, "Where's My Stimulus Payment?" It's intended to help taxpayers determine the status of their stimulus payment: how much it is, when it should arrive, and how it will be delivered. You only need three pieces of information to use it: the Social Security number of the first person listed on the tax return, filing status (single, married filing jointly, etc.), and the number of exemptions claimed on the return.

You are welcome to try it, but don't be surprised if you end up frustrated. The IRS interactive indeed told how much my husband and I, who filed separately, would receive of the basic stimulus payment by this Friday. But didn't explain why we wouldn't get credit for our 14-year-old daughter, whom my husband claimed as a dependent.

Several colleagues and commenters on this blog tried the system and got the equivalent of no answer at all. One got the response, "We are sorry but we cannot tell you the status of your Stimulus payment." Another got, "We are sorry. Specific information about your Stimulus payment is not available."

In fact, it appears that "Where's My Stimulus Payment" is only useful when the payment is nearly in your hands. As it told one colleague, "Specific information about your Stimulus Payment will not be available until about one week before your payment is scheduled to be issued. " An IRS spokesman told me basically the same thing.

A lot of good that does.

In the mean time, check the IRS's rebate payment schedule, which may be able to tell you the week in which you can expect your rebate.

And if you received your rebate and disagree with the amount or don't understand why you got what you got, call the Refund Hotline at 1-866-234-2942 and wait for a human being. An IRS representative wasn't able to help me because I didn't have certain information at hand, but perhaps you'll be luckier.

--Tobie Stanger

Proposed rules take aim at abusive credit card and bank practices

Federal banking regulators this week proposed new rules to end some of the most criticized practices consumers face when they use their credit cards or overdraw their bank accounts.

The proposal, adopted by the Federal Reserve Board, Office of Thrift Supervision, and National Credit Union Administration is headed for a 75-day public comment, after which it could be modified. You can read a 2-page summary or the 269-page full proposal online. (Start on page 153 to see the actual rule.)

Among the changes, the new rules would:

• Force card issuers to give consumers a reasonable time, such as 21 days (including mail time), to make a payment before imposing late charges and other penalties.
• Limit the practice of applying payments to the lowest-rate portion of a multi-rate balance, such as the 0 percent portion balance instead of a 21 percent cash advance portion.
• Prohibit issuers from raising rates on existing balances, unless there is a variable rate, a promotional rate that is lost or expires, or a cardholder's payment is delinquent for at least 30 days.
• Eliminate the two-cycle method of calculating interest rates, which can penalize cardholders who occasionally carry a balance.
• Stop issuers from charging credit card account fees or security deposits if those fees or deposits would use up the majority of the available credit limit. Fees that exceed 25 percent of the credit limit would have to be spread over a year instead of being charged as a lump sum at the account opening.
• Prevent issuers from charging over-limit fees when a retailer's hold is the only reason the consumer exceeded the limit. Gas stations, hotels, restaurants, car rental companies, among other retailers, often place a hold on a portion of the credit line in anticipation of how much consumers may charge after, for example, completing use of a rental car or a hotel stay. Those holds can take days to disappear, causing consumers to unwittingly exceed their credit limits.
• Prohibit banks from charging a fee after paying an overdraft unless they have first given customers a chance to opt-out of overdraft payments. The rule would apply to any transaction that causes the overdraft, including use of checks, debits card, ATM withdrawals, and recurring payments.

The proposal drew praise from consumer advocacy organizations, including Consumers Union, which has long been calling for credit card reform. However, the organization issued a statement that said the rules need to go further.--Anthony Giorgianni

Feds list more low-quality nursing homes

The Centers for Medicare & Medicaid Services launched a new feature on its Nursing Home Compare Web site last week listing 134 homes it considers “special focus facilities,” or SFFs.

SFF is fedspeak for homes with a history of poor performance or repeated violations of health and safety rules.

To see the list, which is in pdf format, go to this page and scroll down to the downloads section and click on "Special Focus Facility Background Info and List - Updated 4/23/08."

For basic advice on choosing a nursing home, see our special 2006 report.

Target’s 'hidden' return policy

If you try returning something to Target without a receipt, there’s the retailer’s posted 90-day return policy and then there’s its unwritten return policy.

According to the posted policy, you’re simply out of luck if you don’t have a receipt and Target can’t verify the purchase through its electronic “receipt look-up” system, as might be the case if you paid cash or received the item as a gift.

But for items costing up to $20, there’s another “hidden” option that you won’t see on the store’s posted return policy. Customers can get store credit, provided they show a driver’s license or other government-issued identification and haven’t already used this option twice during the year. This option actually has been around awhile, although it initially allowed no-receipt returns for items valued up to $100, an amount subsequently reduced to $40, and reduced again last year to $20.
   
“It is something we look at as an accommodation above and beyond the policy," says Target spokesman David Fransen. "It’s not publicized or advertised.”

We wonder why Target simply doesn’t tell shoppers this. Even better, we wonder why it doesn’t adopt the no-hassle policy of its largest competitor, Wal-Mart. Customers who return products to Wal-Mart without a receipt can get a store credit, even for high-priced purchases. And for purchases of less than $25, customers have the option of taking cash. As with Target, Wal-Mart’s return policy is 90 days for most products, although it’s shorter for computers, digital cameras and camcorders, and some other items. What’s more, Wal-Mart recently loosened its return policy for holiday gifts that fall under the shorter return policy. The return period starts on Dec. 26, even if the gift was purchased as early as Nov. 15.

But even Wal-Mart has its limits. If you return more than three items without a receipt within 45 days, transactions will need to be approved by a manager, and your account will be flagged for the next six months. The flag will disappear if there are no more returns during that time period.—Anthony Giorgianni

Your stimulus payment is on the way...eventually

If you played all your cards right and happen to have the right Social Security number, you could get your economic stimulus payment (rebate) this week. The IRS says the first rebate payments--of up to $1,200 per couple and $300 per child--are going out via direct deposit this week to qualifying taxpayers who 1) had their returns processed by April 15; 2) arranged for direct deposit of their refunds and 3) have Social Security numbers ending with the last two digits between 00 and 20.

The rest of us will have to wait a little longer. Those who meet conditions 1) and 2) but have higher Social Security numbers should see their rebates by May 16. The remainder of folks who filed on time could wait as long as July 11, especially if they opted to have their refunds--and hence their rebates--sent by mail. In general, your rebate will be sent the same way as your refund.

That said, there are exceptions. Even if you opted for direct deposit of your refund, your stimulus rebate will be mailed if:

•You opted to direct-deposit your refund into more than one account (called a split refund).

•You got your refund through a refund anticipation loan (RAL). The IRS says it will not direct-deposit rebates into such arrangements. Folks who used H&R Block's Emerald Card to hold their refunds, for example, will get mailed rebate checks. (Click here for details from the IRS, and scroll through the section called "When and How.")

•You paid your tax-prep and/or electronic filing fee by subtracting it from your refund. These arrangements, which use third-party banks--such as Santa Barbara Bank and Trust for TurboTax users--are not eligible for rebate direct deposit.

•You arranged for direct deposit of your refund but then had to change or close your bank account after getting it. When the IRS's attempt to direct deposit fails, the agency will send you a rebate check.

The IRS says it soon will be putting an interactive feature on its Web site that will help taxpayers track the status of their rebates, similar to the "Where's My Refund?" page. Check later this week at www.irs.gov.

Yet another airline calls it quits

Eos Airlines, a Purchase, N.Y.-based carrier that specialized in “premium class” service from New York to London filed for Chapter 11 bankruptcy on April 26, announcing that it would cease operations the following day.

The company posted this message to consumers on its Web site, including advice for ticketholders.

For general advice on what to do when an airline goes bankrupt (an unfortunate trend in recent weeks), please see this earlier blog post.

Tax gripes? Don't imitate Snipes

The sentencing this week of actor Wesley Snipes to three years in prison for failure to pay income taxes is a reminder that, no matter how much you disagree with our tax system, you still must fill Uncle Sam's till.

On its Web site, the IRS has compiled a list of common tax-protest arguments. Agree with them if you like, but follow them at your peril!

Put your tax rebate to work for you

The Internal Revenue Service will start issuing economic-stimulus payments next week and continue through at least July 11. When you get yours depends on when you filed your tax return, whether you arranged for direct deposit, and the last two digits of your Social Security number.

Depending on your income, you could get up to $600 per individual and $1,200 per married couple, plus $300 for each qualifying child. The intent, as you probably know, is to boost consumer spending, and the economy as well.

If you're planning to spend your payment, our colleagues at the Home & Garden blog have compiled a list of top-performing home-related products that you might consider buying.

But you may have better uses for the money, such as using it to pay down debt. For example, if you're carrying a balance on your credit cards, you can put your check toward paying it off. Similarly, if you're facing even a modest reset of an adjustable-rate mortgage this month (for example, a 20 percent increase on a $1,500 monthly payment), the tax rebate can help cushion that blow.

If you don’t need to use your stimulus check to pay off debt—and you don’t plan to go on an economy-boosting shopping spree—there are plenty of ways to put the money to work for you. If you are saving for retirement, you can put it in an Individual Retirement Account or Roth IRA. If you are setting aside money to help pay college tuition for a child or grandchild, you can put your rebate into a 529 college savings plan.

Other options that don’t require large minimum deposits are bank CDs, many no-load index funds, and U.S. Savings Bonds or Treasury Inflation-Protected Securities (TIPS) via Treasury Direct. 

Using your economic stimulus check to jump-start your own savings could end up being the best $600 or $1,200 you ever spent.—Chris Horymski