Doing taxes online for free
It doesn’t happen often, but sometimes there’s an advantage to being a working stiff. Tax time is one of them.
If you make under $57,000, you can probably do your federal taxes for free using online software programs. They use simple question-and-answer formats designed for ordinary folks. The programs fill out the forms.
Missouri residents should start at www.dor.mo.gov. Click on “file and pay personal taxes online.” You’ll find links to tax prep companies that will let you do both federal and Missouri taxes online for free.
Note that the companies’ criteria vary for who gets free service. Some favor young people, and some have income limits well below $57,000.
For Illinois residents, it’s a two-step process: file federal taxes first and then state taxes.
They can find a free service for only federal taxes at the IRS website, www.irs.gov. Click on “free file.”
With their federal returns completed, most Illinois residents can do their state taxes for free on the state tax website. www.tax.illinois.gov. People with unusual returns, such as their own corporations or trust income, can’t use the service. Neither can people in civil unions.
Have a live person do your taxes for free:
If you make less than $50,000, a trained volunteer will do your state and federal taxes for free at dozens of sites around the St. Louis region. The programs are run by the IRS Volunteer Income Tax Assistance program, the AARP and the Gateway EITC Coalition.
Coalition director Russ Signorino estimates that the service saves a family $250 to $260 in fees charged at a commercial tax preparer.
For information, dial 211, the region’s social service connection number, or 800-427-4626 or 800-906-9887, or check the IRS.gov website. A partial list of centers is at www.gecc.us. Click on “tax sites.”
U.S. stocks opened lower Friday after Greece’s bailout deal was put on hold, a day after it seemed that the country had satisfied its creditors.
In the first half hour of trading, the Dow Jones industrial average fell 99 points to 12,792. The broader S&P 500 was down 10 points to 1,342. The Nasdaq composite fell 20 points to 2,907.
On Thursday, Greek leaders agreed to private sector wage cuts, civil service layoffs and cuts in government spending.
But finance ministers from the other 16 countries that use the euro insisted that Greece save an extra euro325 million ($430 million), pass the cuts through parliament and guarantee that they will be enforced after planned elections in April.
The decline was broad free instant credit score. All ten sectors of the S&P 500 were down, led by materials companies, down 1.9 percent. Financial companies fell 1.3 percent.
Among stocks making big moves:
_ LinkedIn rose 12.5 percent. The online networking company announced that fourth quarter earnings had soared and revenue doubled.
_ Jeans maker True Religion Apparel plunged 24 percent. The company reported earnings that were far below what anlaysts were expecting and analysts slashed their ratings on the stock, citing weak sales and big markdowns.
Faced with a strong jobs report Friday, Republicans tried out a new rhetorical message: This isn’t a disaster, but Ronald Reagan could have done better.
"It didn’t have to be this way," said Rep. Cathy McMorris Rodgers of Washington. "There is a different approach that we could’ve taken. President Reagan took a very different approach."
On the other side of the aisle, Democrats have been careful not to compare the recovery to anything like Reagan’s fabled "Morning in America."
Alan Krueger, chairman of the White House’s Council of Economic Advisers, said that while the jobs report "provides further evidence that the economy is continuing to heal," it is "important not to read too much into any one monthly report."
So the parties are in agreement: The recovery of today is not like the recovery of 1983 and 1984.
And that’s true.
"The Reagan recovery had one of the fastest rates of growth we ever saw," said Barry Bosworth, an economist at the Brookings Institution. "If anything it was too strong. It was spectacular."
Just take a look at the numbers:
The economy grew at 4.5% in 1983, with a few quarters of growth north of 8%. In 2011, meanwhile, the economy grew just 1.7%.
In just one month — September 1983 — the economy added more than a million jobs. For the full year, the economy added almost 3.5 million jobs, a trend that continued into 1984, an election year in which Reagan captured 49 states in a landslide victory.
Obama can claim job growth of 1.8 million in 2011. A welcome comeback, but still tepid by comparison.
Looking ahead to 2012, Obama could replicate the 243,000 jobs created in January over each of the next 11 months and still not approach Reagan’s total for 1984 of 3.9 million.
They’re hiring! 25 companies with openings
Reagan had an advantage over Obama: The recession of the early 1980s was caused by runaway inflation, which the Federal Reserve countered by hiking interest rates. When inflation dropped, the Fed lowered rates and a massive economic boom resulted.
"The monetary policy run by [Fed chairman] Paul Volcker was extremely successful," said Rudolph Penner, a former director of the Congressional Budget Office. "When inflation went away, that laid the groundwork for a very rapid recovery."
The major causes of the recession that started in December 2007 were a banking crisis and housing bubble that exploded during President George W. Bush’s final months in office. Plus, interest rates were already low heading into the recession.
The damage to the economy was not easy to fix in the short-run, said Greg Valliere, chief political strategist at the Potomac Research Group.
"We nearly fell off a cliff, and people have short memories. I think the threat to the country was far greater in 2008 than in the early 80s, which was a garden variety recession."
Another difference: With comparatively small debt loads, Reagan was able to push through a 23% across-the-board cut of individual income tax rates.
With revenue lower today, a tax cut of that magnitude is, according to Bosworth, something "we can’t really afford anymore."
Obama entered the presidency with substantial budget deficits and an economy contracting at a rate of 6.7%.
And both Bosworth and Penner agree that the stimulus package Obama did end up with could have been much better.
"The stimulus was poorly designed and didn’t get the bang for the buck we could have gotten," Penner said.
Still, it is possible to draw comparisons between the two recoveries within the context of the election cycle.
Just consider the good news in Friday’s report: The unemployment rate dropped to 8.3%, the lowest it has been since February 2009, after peaking at 10% in October 2009.
Beyond that, the private sector added jobs for the 23rd straight month.
At this point in Reagan’s first term, the unemployment rate was 8%, down from a peak of 10.8%. He ultimately was elected when unemployment was 7.2%.
Obama battles job crisis: 3 years…and counting
"The pattern here in 2012 looks a little like 1984 in that the economy is beginning to accelerate and the unemployment rate is starting to come down," Valliere said. "I think we can get to a little under 8% by Election Day."
Some political scientists say a more useful predictor of electoral success is the general trend and how Americans feel about the economy.
"You can start at quite a high level of unemployment," Penner said. "But so long as things are improving around the election, that improves the incumbent’s chances considerably."
But the White House has a long way to go to convince most Americans.
According to an NBC News/Wall Street Journal poll conducted late last month, only 45% of Americans approve of the way Obama is handling the economy, while 50% disapprove.
And a few stumbling blocks — the Eurozone debt crisis and domestic housing market — are still lurking.
"Obama’s had a couple of good months, but keep in mind this has happened a few times over the last couple years," Bosworth said. "I think people are getting too excited."
Iran’s powerful Revolutionary Guard began military exercises Saturday in the country’s south, the latest show of force after threats to close the strategic Strait of Hormuz in retaliation for tougher Western sanctions.
Plans for new Iranian naval games in the Persian Gulf off the country’s southern coast have been in the works for weeks. State media announced new maneuvers in southern Iran involving ground forces, but it was not immediately clear whether they were part of the planned naval training missions scheduled for this month or a separate operation.
The latest military maneuvers got under way following stern warnings by Iran’s Supreme Leader, Ayatollah Ali Khamenei, about any possible U.S. or Israeli attacks against Tehran’s nuclear facilities. It also comes after Western forces boosted their naval presence in the Gulf led by the American aircraft carrier USS Abraham Lincoln.
Iran officials and lawmakers have repeatedly said that their country would close the Strait of Hormuz at the mouth of the Persian Gulf in retaliation for sanctions that affect Iran’s oil exports. They have as yet made no attempts to disrupt shipping through the waterway, the route for one-fifth of the world’s crude oil, and the U.S. and allies have said they would respond swiftly to any attempts at a blockade.
Last month, Iran’s navy wrapped up 10 days of exercises in the Gulf, but the Revolutionary Guard _ which is directly under control of the supreme leader _ represents a significantly stronger military force and controls key programs such as missile development. Iranian state media announced the new maneuvers, but gave no further details.
Khamenei, in a speech nationally broadcast on Friday, staked out a hard line after suggestions by Israel that military strikes are an increasing possibility if sanctions fail to rein in the Islamic Republic’s nuclear program.
He pledged to aid any nation or group that challenges Israel and said any military strikes would damage U.S. interests in the Middle East “10 times” more than they would hurt Iran. The comments also may signal that Tehran’s proxy forces _ led by Lebanon’s Islamic militant group Hezbollah _ could be given the green light to revive attacks on Israel as the showdown between the archfoes intensifies.
The West and its allies fear Iran could use its uranium enrichment labs _ which make nuclear fuel _ to eventually produce weapons-grade material. Iran insists it only seeks reactors for energy and medical research.
Israel has so far publicly backed the efforts by the U.S. and European Union for tougher sanctions that target Iran’s crucial oil exports. But Israeli leaders have urged even harsher measures and warn that military action remains a clear option despite Western appeals to allow time for the economic pressures and isolation to bear down on Iran payday loans with no fax.
Iran’s oil minister repeated claims that an EU oil embargo will not cripple Iran’s economy, claiming Saturday that the country already has identified new customers to replace the loss in European sales that accounted for about 18 percent of Iran’s exports.
Rostam Qassemi also reinforced Iran’s warning to Saudi Arabia and other fellow OPEC members against boosting production to offset any potential drop in Tehran’s crude exports, saying the cartel should not be used as a political weapon against a member state.
Although Israel has raised the strongest hints that it is likely to start a military campaign, Khamenei reserved some of his strongest comments for Israel’s key U.S. ally.
“A war itself will damage the U.S. 10 times” more in the region, said Khamenei.
Khamenei claimed Iran, however, could only emerge stronger. “Iran will not withdraw. Then what happens?” asked Khamenei. “In conclusion, the West’s hegemony and threats will be discredited” in the Middle East. “The hegemony of Iran will be promoted. In fact, this will be in our service.”
On Thursday, Israel’s defense minister, Ehud Barak, suggested the world is increasingly ready to consider a military strike if sanctions fail. The head of the country’s strategic affairs ministry, Vice Premier Moshe Yaalon, also suggested Iran’s main military installations are still vulnerable to airstrikes _ even as Iran starts up a new uranium enrichment facility deep in a mountainside bunker south of Tehran.
Yaalon’s comments appear to reinforce earlier suggestions by other Israel officials that the window for a possible attack is closing and Israel would need to strike by summer to inflict significant setbacks on Iran’s nuclear facilities. The officials spoke on condition of anonymity under standing guidelines.
At Ramstein Air Base in Germany, U.S. Defense Secretary Leon Panetta said sanctions remain the best approach to pressure Iran. But he told U.S. airmen Friday that Washington keeps “all options on the table and would be prepared to respond if we have to.”
Khamenei answered by repeating Iran’s declarations that it will never roll back its nuclear program, which he had earlier said was now part of the country’s “identity” and a cornerstone of its technological endeavors. On Friday, Iran said it successfully sent a small satellite into orbit in the third such launch in recent years, state media reported.
“From now on, in any place, if any nation or any group confronts the Zionist regime, we will endorse and we will help. We have no fear expressing this,” said Khamenei, using the phrase widely used by Iran’s leader to describe Israel.
Dow Chemical Co. said Thursday it posted a loss in the fourth-quarter because of a one-time charge that caused it to pay higher taxes at its Brazilian operations.
Shares fell nearly 3 percent in trading before the opening bell.
The Midland, Mich. company, the nation’s largest chemical maker, reported a loss of $20 million, or 2 cents per share, compared with a year-ago profit of $426 million, or 37 cents per share. Excluding a charge of 27 cents per share, Dow would have earned 25 cents per share in the quarter.
Revenue rose 2 percent to $14.1 billion.
Results were below Wall Street’s expectations. Analysts polled by FactSet expected a profit, excluding items, of 31 cents per share on revenue of $14 Business Card Holders.18 billion.
Volume fell 3 percent in the quarter. Demand slipped as customers in North America, Europe and other regions worked through existing inventory instead of replenishing their stockpiles. Dow says it saw global economic “deterioration” in the period, with “considerable weakness” in Western Europe. Europe accounts for a quarter of the company’s sales.
Prices rose 5 percent, offsetting higher feedstock and energy costs.
Former U.S. Treasury Secretary Lawrence Summers said the U.S. economy is not yet at
The world
Raw fish and cough medicine may not seem like they should occupy the same store, but a select few Walgreens now carry both.
In 2009 Walgreen Co., based in a Chicago suburb, announced it would elevate food offerings at some of its most prominent stores, in downtown Chicago, on Wall Street and elsewhere. Those stores – designed to trumpet that the century-plus-old pharmacy chain was entering new, more rarified terrain – now have sushi bars, $400 bottles of wine, cigar humidors and made-to-order smoothies.
But the company also promised it would fill more shelf space, including here in St. Louis, with cheaper, less esoteric offerings, especially in areas where low-income residents have little access to nutritious or fresh food. Walgreens plans to turn at least 500 of its 7,800 U.S. stores, most in low-income neighborhoods, into what the company is calling “food oases.”
“We found that in lower-income areas, in food deserts, that grocery stores have moved out,” said Bryan Pugh, the company’s vice president of merchandising. “It’s a very strategic initiative. Food brings the shopper in more often.”
So far the company has expanded offerings, including fresh produce, at a modest 35 stores in Chicago, Detroit, San Francisco, Oakland and Indianapolis. But it plans to expand to other cities over the next five years. The company aims to boost food offerings in some of its 110 St. Louis-area stores by 2013, Pugh said, noting that it has already rolled out new in-house food brands that are on store shelves already.
“We’re overhauling all our brands,” Pugh said.
Walgreens is not the only retailer who says it will bring fresh produce to under-served areas in St. Louis and beyond. Save-A-Lot stores have said they will open 500 stores in these neighborhoods in the five years, and Wal-Mart has made a similar commitment, saying it will open as many as 300 by 2016. But Walgreens already has a major presence in low-income urban areas, with stores already in place, making its efforts easier to execute, analysts note.
Walgreens’ move, analysts say, could help the company keep customers Walgreens is losing after the company’s split from pharmacy benefits manager Express Scripts. Walgreens stands to lose billions in sales as customers fill their prescriptions elsewhere.
“It’s really interesting timing, because Walgreens can re-establish themselves with people who can no longer fill their prescription there,” said supermarket analyst, Phil Lempert. “It’s: What can we sell them to keep them coming to our store, until they make the transition to Medicare?”
While Walgreens acknowledges that the move is strategic, it also says it has good intentions of providing fresh produce to nutrition-poor areas where fast food is usually the only source of calories. Nutritionists and critics, however, question how successful that effort could be.
“A lot of this is overblown,” said David Livingston, an analyst and supermarket industry researcher. “They already had some food items. They’re adding a few more. They’re adding a few more perishables. Are they really making a difference? I don’t think so.”
Walgreens says it will expand the space it devotes to food by 35 to 40 percent in some of its stores. But, Livingston notes, that translates to roughly 400 square feet. “That’s 20 by 20,” Livingston said. “That’s the size of my bathroom.”
Livingston and other analysts point out that grocery stores pulled out of these neighborhoods for a reason. “If there’s money to be made selling fresh produce, grocery stores would have figured it out,” he said. “I wonder what they’re thinking.”
Marjorie Sawicki, and assistant professor of nutrition and dietetics at Saint Louis University, said she believes Walgreens produce may make a small dent in nutrition-poor diets.
“Where we have food deserts, if there are fruits and vegetables, it might help, because there’s a Walgreens on every block,” Sawicki said. “If they displace items that are filled with sodium and fat, then it could have a benefit. It depends on how they emphasize the food.”
Bringing healthy food to under-served neighborhoods will require a more holistic approach, Sawicki says. “I think it’s a Band-Aid,” she said. “What we need to be looking at is creating community investment so people can access healthy food at a fair price and support the person who grew it. But that’s going to take time.”
Sawicki pointed to other efforts to bring produce to under-served areas, such as The North City Food Co-Op, as better models. Other new additions to the market landscape in St. Louis food deserts include YOURS Market, which opened in the Baden neighborhood in late 2010.
Still, Walgreens sees an opportunity.
The company did extensive research to determine which stores should sell more food. “Different stores have different trends,” Pugh said. “If I’m on a corner, near a Dominick’s, a Target and a Walmart , I’ll probably do better with beauty (products) there. I’ll look at my data by category and see if I’ve got traffic and I’m selling food. You can’t put fresh food in a store that’s not busy.”
The company’s plan, Pugh said, is not to expand the stores, but to devote more existing space to food. “We’re already in those areas,” he said. “We are the health care oasis there.”
Lempert says he believes that’s a smart strategy.
“I think it’s fascinating that for years drug chains had the lowest price for milk, that was their loss leader – what they did to get people in,” Lempert said. “Now they’ve leap-frogged milk, and said we can do this bigger and better.”
“We buy food 2.2 times a week, so if they can get more traffic in these stores, they sell more product,” Lempert added. “Supermarket sales are either flat or declining, and if you look at drug-store food sales, they’re through the roof.”
A Qatar-owned company says it has taken over the famous Raffles Hotel Singapore and an affiliated luxury hotel in Paris in the latest high-profile acquisitions by the energy-rich Gulf state.
The Qatar National Hotels Co. said Saturday that it recently took ownership of the 125-year-old Raffles Hotel Singapore and Le Royal Monceau Raffles hotel in Paris.
It did not disclose financial terms in the deal with Toronto-based Fairmont Raffles Hotels International, which had owned both hotels one hour payday loan.
State-owned Qatari companies have been snapping up investments at a brisk pace in recent months, including stakes in European energy companies, Germany’s largest builder Hochtief AG and majority ownership in the French football team Paris Saint-Germain.
High unemployment has sent many Americans back to school, and they’re taking on big debt to finance their education.
Americans now owe more on in student loans, $750 billion, than on their credit cards.
Lenders are getting very worried about that. Sixty-seven percent of bank risk managers expect a rise in student loan delinquencies, according to a new survey for FICO, the credit scoring company, and the Professional Risk Managers Association. That number is 17 points higher than last summer.
You can find FICO’s press release here and the study here.
Education is usually an excellent investment — it improves your earnings for life. But it’s possible to end up worse off, not better.
Many for-profit private trade schools, the kind that advertise on afternoon TV, have online payday advance.stltoday.com/business/columns/jim-gallagher/students-should-look-at-loan-default-rates-to-judge-colleges/article_fa88b67f-51e7-5e16-b1ca-1688d2ee0a6c.html”> student loan default rates of over 20 percent. Those schools often charge outrageous tuition, and the high default rates indicate that many students are worse off for attending.
The best deals in vocational training are found at community colleges, where tuition is cheap.
Those looking for a bachelors degree should consider whether a high-tuition private university really delivers value that justifies its price. State universities are usually cheaper.
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