Author: Brenda Schmitt

A Iowa State University Extension and Outreach Family Finance Field Specialist helping North Central Iowans make the most of their money.

Entrepreneurial Spirit

Brenda Schmitt
Couple on bike trail

This past weekend, we participated in a biking event that was hosted by Hardin County, Iowa.  We covered more than 40 miles and passed through 6 different communities.  Each community eagerly awaited our arrival with venders offering water, grilled delights, ice cream and more.  We visited with the owner of a new, shiny red food truck and learned that she owned a restaurant in one of the neighboring towns. The food truck was her answer to the employee shortage that prevented her restaurant from operating full-time as it had prior to COVID. Now, during the day, she and one other employee run the food truck and her restaurant is open evenings. What a creative solution for this young entrepreneur. FYI…we really enjoyed her brisket sandwich.

When I shared the details of our weekend activities with my co-worker, nutrition and wellness educator Amy Jones, she commented, “I have seen an increase in interest in operating mobile food units otherwise known as a food trucks.  To obtain a license, Iowa Law requires each mobile unit to have a Certified Food Protection Manager on staff. This means more people are attending ServSafe Certified Food Protection Manager classes given through Iowa State University Extension and Outreach.”

Iowa Department of Inspections and Appeals has resources available for those interested in operating an mobile food truck: https://dia.iowa.gov/. More specific information is located at: https://ia.foodprotectiontaskforce.com/resources1/food-trucks-trailers-carts/#tab3

Brenda Schmitt

A Iowa State University Extension and Outreach Family Finance Field Specialist helping North Central Iowans make the most of their money.

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Weighing the Cost

Brenda Schmitt
Airplane and Tornado

Last week a tornado ran for a half-mile through one of our fields, flattening a 200-yard wide strip of corn. What are the chances of that happening? It is a first for us in the 45 years we have farmed. This week, aerial applicators are spraying for aphids and white mold that are threatening north central Iowa soybeans. What are the chances of that happening?  Almost every year that it is wet.

Nearly every day, my husband is inspecting crops or livestock or grain in a bin, to ensure his investment of time, labor and money is insured or protected against accidents, extreme temperatures, weather, disease, mold or pests. The decision to spray, plant, vaccinate, buy, sell or insure is not made once and forgotten about.  He is always weighing the cost of action or inaction against the return on his investment.

The same is true for me on the home front. We purchased a used camper three years ago with the expectation we would use it for five year. Our decision to NOT insure the camper was based on how much five years of insurance would cost compared to the amount we paid for the camper.  The amount we saved in NOT purchasing insurance could easily replace the camper should something happen to it.  Basically, we SELF-INSURED the camper.

The same thought process is used for our vehicles. The nice, fully insured, used car we purchase for me to drive for work will eventually becomes the “farm” vehicle which we carry minimal insurance on. There is a very little chance of my husband having an accident driving down gravel roads between fields, whereas the number of miles I drive on highways for work greatly increases the chances I may have an accident and need to replace my car.

The Money Talk workbook discusses financial basics, insurance, investing, retirement planning, and planning for life events. This practical, clearly written guidebook is available through Iowa State University Extension should you like to learn more about financial basics including Insurance.

Brenda Schmitt

A Iowa State University Extension and Outreach Family Finance Field Specialist helping North Central Iowans make the most of their money.

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Negotiating For Remote Work

Brenda Schmitt

Is Remote Work for You? 

Do you feel limited by the lack of career opportunities in your rural community? Are your skills being underutilized in your current position? Are the only job opportunities miles away from your hometown? Remote work or telecommuting allows you to work from anywhere without leaving your community! Register before July 28 to participate in the August Remote Work Certificate course. The course begins August 2.

I participated in the Remote Work Certificate course in November of 2019 because the idea of not having to travel for work in the winter appealed to me. A year later, Iowa State University Extension and Outreach became an affiliate member of the Remote Online Initiative of Utah State University…all before we fully knew the impact COVID was going to have on Iowa.

Remote work is challenging. Team work is especially difficult when teams are not in the same physical location. It affects communication, brainstorming, and problem-solving and Supervisors need to adjust how they manage their remote teams. To date, 18 Human Sciences Extension and Outreach specialists at Iowa State University have completed this professional development course, assisting with their transition to a remote workplace. The educational programming in Family Life, Nutrition and Finance did not slow when we were all sent home to work.

With approximately a fourth of the FY20 program year affected by COVID-19 and the Derecho, Human Sciences Extension and Outreach provided educational information and programs in nutrition and wellness, family life, and family finance across the state, resulting in over 93,000 direct contacts. 5,284 participants attended online mental health/stress related offerings.

Nationwide, the drive to get employees back into offices is clashing with workers who’ve embraced remote work as the new normal. The pandemic may be winding down, but that does not mean all will return to full-time commuting and packed office buildings. The greatest accidental experiment in the history of labor has lessons to teach us about productivity, flexibility, and even reversing the brain drain.

Currently, employers are facing pressure to adjust their workplace policies, if just to reflect shifting attitudes toward remote work among other tech giants. There has never been a more opportune time to negotiate remote or flexible work arrangements with your boss. In this online workshop, Dr. Paul Hill, Extension professor with Utah State University, will present the evidence-based steps to help you prepare for successful negotiation for remote or flexible work arrangements with your boss. Register to join Dr. Hill on Wednesday, July 21 at 1 PM CDT for this free webinar at Negotiating Your Remote Work Arrangements Tickets, Wed, Jul 21, 2021 at 12:00 PM | Eventbrite.

Brenda Schmitt

A Iowa State University Extension and Outreach Family Finance Field Specialist helping North Central Iowans make the most of their money.

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More: Assistance for Internet and Technology

Brenda Schmitt

The Federal Communications Commission (FCC)’s Emergency Broadband Benefit launched on May 12th. This benefit provides a discount of $50 per month for eligible low-income households or $75 per month for households on Tribal lands to cover internet bills, as well as discounts on some devices. This program can also be combined with Lifeline benefits.

Reliable home internet and technology provide older adults with more options to access important services and supports, including legal assistance, telehealth services, and portals for economic impact payment eligibility and benefits programs. The FCC has announced that eligible households can apply for the program in three ways: 
– Contact participating broadband providers directly to learn about their application process.  
– Visit GetEmergencyBroadband.org to apply online and to find participating providers.
– Call (833) 511-0311 for a mail-in application, and return it along with proof of eligibility to: Emergency Broadband Support Center, P.O. Box 7081, London, KY 40742. 

Individuals who use videophones and are fluent in American Sign Language (ASL) may call the FCC’s ASL Consumer Support Line at (844) 432-2275 (videophone).   There are resources available to help advocates advertise the program to their clients and community, and it is especially important to share this information with populations who face the greatest barriers to connectivity, including older adults of color, those living in rural areas, and other marginalized groups. The Federal Communications Commission (FCC)’s Emergency Broadband Benefit launched on May 12th. This benefit provides a discount of $50 per month for eligible low-income households or $75 per month for households on Tribal lands to cover internet bills, as well as discounts on some devices. This program can also be combined with Lifeline benefits.

Reliable home internet and technology provide older adults with more options to access important services and supports, including legal assistance, telehealth services, and portals for economic impact payment eligibility and benefits programs. The FCC has announced that eligible households can apply for the program in three ways: 
– Contact participating broadband providers directly to learn about their application process.  
– Visit GetEmergencyBroadband.org to apply online and to find participating providers.
– Call (833) 511-0311 for a mail-in application, and return it along with proof of eligibility to: Emergency Broadband Support Center, P.O. Box 7081, London, KY 40742. 

Individuals who use videophones and are fluent in American Sign Language (ASL) may call the FCC’s ASL Consumer Support Line at (844) 432-2275 (videophone).  

Brenda Schmitt

A Iowa State University Extension and Outreach Family Finance Field Specialist helping North Central Iowans make the most of their money.

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Where’s My Refund? Where’s my EIP?

Brenda Schmitt

I am one of several Iowa State University Extension and Outreach Field Specialists that assist families with tax preparation and e-filing. This past week, I have been receiving at least one phone call a day from individuals wanting to know where their refund is. Many tell me they have already been to the website to check their status. The only place individuals should be checking their refund status is at the IRS.gov web site. Likewise, if you are wondering about the status of your Third Economic Impact Payment (generally $1400/person), the IRS web site is your source.

IRS.gov is the only safe place to check your refund or your stimulus payment

Refund Status. There are ONLY THREE QUESTIONS that need to be answered when using the Get Your Refund Status link on the IRS.gov website: 1) The Social Security number of the person listed on the return as the FIRST NAME on the return (not the spouse); 2) Your FILING STATUS (single, married filing jointly, head of household, married filing separately, or qualifying widow(er)); and 3) the amount of your refund, which is found on line 35A of page 2 of your federal tax return.

Stimulus Payment Status. Here again, the IRS has THREE QUESTIONS, although they are different. The needed information is: 1) Your Social Security number; 2) Your date of birth; and 3) Your mailing address. The mailing address can be tricky if you have moved recently. Generally, you should enter the mailing address on the most recent tax return the IRS has processed from you. However, if you have not filed a tax return in recent years, use the mailing address on file at Social Security or the Veterans Administration. Note: The tool to check your stimulus payment only relates to the third economic impact payment, authorized in the American Rescue Plan signed in mid-March. If you have not received either of the first two payments, your only option is to file a 2020 tax return, even if you have no income to report. The tax return allows you to claim the first two stimulus payments, and also sets the wheels in motion to process your third payment.

If you “google” where’s my refund and are taken to a website that asks for additional information, such as your salary, mother’s maiden name, or any other personal information, you are in the wrong place; you may be giving your personal information to someone who is stealing your identity.

~ Brenda Schmitt

Brenda Schmitt

A Iowa State University Extension and Outreach Family Finance Field Specialist helping North Central Iowans make the most of their money.

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Remote Work

Brenda Schmitt

Over the past year, many Iowans have experienced working remotely. Their experiences have convinced them – and their employers – that remote work can continue to be a viable option, with or without a pandemic. Over the past year, many Iowans have experienced working remotely. Their experiences have convinced them – and their employers – that remote work can continue to be a viable option, with or without a pandemic.

Remote work is likely here to stay. Having the skills to be successful in remote work can open employment possibilities for Iowans no matter where they live. Iowans can gain these skills through the Remote Work Certificate. ISU Extension and Outreach offers the virtual course in partnership with Utah State University Extension. The four-week course is open to adult learners and requires approximately 30 hours to complete. Participants work at their own pace but must participate in four weekly virtual workshops and submit weekly assignments. The course simulates remote work. Participants work independently on the assignments and meet as a group each week for one-hour via Zoom to practice technology, etiquette and virtual small-group work. Participants are divided into work groups made up of individuals across the U.S. to complete a project.

Participants must have broadband internet access, a Web camera and microphone, and basic computer proficiency. The course registration fee is $249 and upon completion participants receive a Remote Work Certificate. A new session begins each month, except in July and December. Upcoming sessions are listed and registration information is available on the Human Sciences Extension and Outreach website at https://www.extension.iastate.edu/humansciences/remote-work.

Five human sciences specialists coordinate the course and provide support for participants. At the end of the four-week course, participants who would like one-on-one assistance in setting career goals, identifying gaps in skills and finding opportunities for remote work can schedule time with a specialist. Participants take the course for many reasons. Some are preparing for remote employment. Some are transitioning from an on-site job to remote work. Others are looking for professional development and are investing in themselves. Remote work can provide self-employed entrepreneurs with flexibility and access to a larger pool of contract work to select from as they build their business.

The course also is appropriate for high school seniors who want to enter the workforce upon graduation. Many already possess the necessary technology skills, and the course can add the experience of remote work that may appeal to potential employers. Other students will find remote work valuable as they pay their way through college. By working remotely, they won’t have to find a different job when they return home during semester breaks. ~Brenda Schmitt

Photo credit: insta_photos/stock.adobe.com

Brenda Schmitt

A Iowa State University Extension and Outreach Family Finance Field Specialist helping North Central Iowans make the most of their money.

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Every Little Bit Counts

Brenda Schmitt

I raise bees, then extract and sell their honey. I set my finances up so I can keep that money separate and use it to buy or replace equipment, hoping my hobby would support itself. If I run my apiary as a business, I would need an EIN (Employer Identification Number), and would need to keep good records of all my Income and Expenses. If I run my apiary as a hobby, I will still need to keep good records because I will need to report my income. Personally, I would keep track of my expenses even though they will not help me when filing my tax return. As much as I love bees and their honey, I want to track my expenses to make sure I am not losing too much money with this hobby.

An activity qualifies as a business if your primary purpose for engaging in the activity is for income or profit and you are involved in the activity with continuity and regularity. As a business, you will use a Schedule C to report your business activities (income and expenses) and determine what tax should be paid.  You will also be expected to pay self-employment tax quarterly.

As for me and my hobby, I will report my honey sales on a Schedule 1, line 8 of the Form 1040. The income won’t be subject to self-employment tax. On the downside, I may not be able to deduct expenses associated with my apiary.

So, you might be wondering now, “why report the income if I will have to pay taxes on it?” The first reason is that the law requires it. But in addition, there are at least two ways you can benefit from reporting the income.

  • If you have a lower income and are trying to make ends meet by working on the side, any earned income will be used to calculate the Earned Income Credit. Hobby income is not considered “earned income,” but if you report it on Schedule C as business income, then it is considered “earned income.” The earned income credit (EIC) is a tax credit that helps certain U.S. taxpayers with low earned incomes reduce the amount of tax owed on a dollar-for-dollar basis and may result in a refund to the taxpayer if the amount of the credit is greater than the amount of tax owed.  
  • Another benefit of reporting that income as earned income relates to Social Security. Remember that the monthly social security check you will receive in the future is based on current and past work and earnings history. Social Security retirement benefits are based on your average indexed monthly earnings (AIME) over your 35 highest-earning years.  You must have 40 quarters of at least $1410 (2020 rule) of earned income to qualify for Social Security.  Though the income from any job-on-the side is not enough to live on, it may be worth counting toward your 40 quarters and the calculations used to determine your future social security check.

Brenda Schmitt

A Iowa State University Extension and Outreach Family Finance Field Specialist helping North Central Iowans make the most of their money.

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Side-Hustle or Remotely Employed?

Brenda Schmitt

Many Americans have looked at new ways to make a living due to the pandemic undermining some traditional employment options. In a post-pandemic world, many job seekers will look towards the gig economy for answers.

The gig economy has been around for a while. You will have noticed these individuals in your community as self-employed individuals who mow lawns, deliver papers, provide childcare or work temporarily on your farm during harvest.  More recently, though, technology has removed a lot of barriers to high-paying, full-time and part-time remote employment.  Some of these jobs will require a degree while others require only the many skills and knowledge you already possess.

If you are looking into or already committed to earning a living in the gig economy, you will most likely find yourself in the following statistics.

  • 57.3 million people freelance in the U.S. It’s estimated that by 2027 there will be 86.5 million freelancers. (Upwork)
  • 36% of U.S. workers participate in the gig economy through either their primary or secondary jobs. (Gallup)
  • For 44% of gig workers, their work in the gig economy is their primary source of income. (Edison Research)
  • For 53% of gig workers aged 18-34, their work in the gig economy is their primary source of income. (Edison Research)
  • Gig employees are more likely to be young, with 38% of 18-34-year-olds being part of the gig economy. (Edison Research)

If becoming part of the gig economy is in your future, there are a few things to remember:

  • Keep on top of your paperwork
  • Set aside money for taxes
  • Contribute to an IRA
  • Make use of tax deductions.

Brenda Schmitt

A Iowa State University Extension and Outreach Family Finance Field Specialist helping North Central Iowans make the most of their money.

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October Dates to Remember

Brenda Schmitt

Around this time of the year, I get a surge of individuals wanting me to prepare the previous year’s taxes. Then I remember…October 1 is the first day to file the FAFSA for college financial aid. Some colleges award scholarships and financial assistance on a first-come, first-served basis.

October Dates to Remember

October 15 is the new deadline to file your return if an extension was filed earlier this year.  If you filed for an extension on your taxes, October 15 is also the last day to contribute to a SEP IRA for self-employed people and small business owners.

Sometime in the fall, usually beginning in October or November, most employers hold their open enrollment period so you can change your employee benefits for the upcoming year. Review your health election, 401(k), and other employee benefits like life and disability insurance to see if they’re still meeting your needs. Do you have a flexible spending account (FSA)? Use those funds for qualified medical expenses or child care expenses by the end of the year. That money generally won’t roll over into next year. If you have a health savings account (HSA), that money will roll over and is tax-deferred, so consider maxing it.

November 1 is just around the corner and is the opening day of the federal health insurance marketplace enrollment for 2021 coverage. Iowa State University Extension has online class scheduled to help individuals choose wisely, the kind of health insurance they need.  The Smart Choice Basics class is intended for individuals that are 65 or younger and helps you select the right plan. Smart Choice Actions teaches individuals how to make wise use of the health insurance plan and intended for adults of any age.  Both workshops are 1 hour long at begin at 6:00 PM.  For dates and registration information, go to…

10/26/20  Smart Choice Basics

11/2/20  Smart Use

11/19/20 Smart Choice Basics

12/1/20  Smart Choice Basics   

12/8/20  Smart Use

Brenda Schmitt

A Iowa State University Extension and Outreach Family Finance Field Specialist helping North Central Iowans make the most of their money.

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Debt? Make A Plan

Brenda Schmitt

The financial impact of COVID-19 has many people worrying about paying back borrowed money and wondering where to start. If you’d like help after reviewing the steps below, Iowa State University Extension Family Finance Specialists across the state are available for educational consultations that are free and confidential.

To get started, take 3 steps to manage your debt.

First, understand your debts. Make a chart or a list showing each debt, with who you owe, the amount you owe (including interest), and projected payoff date (if available). Having this clear view of your total debt picture will help you plan your approach.

Second, consider what the consequences are if you do not pay on time. In most cases, late payment or failure to pay will hurt your credit score. But in some cases, the consequences are more serious: for example, you may lose a service, such as water or electricity; or your vehicle may be repossessed. Considering the consequences will help you decide which bills to prioritize. NOTE: eventually it will be important to repay all your debts, but in the short term, it is advisable to prioritize those that are essential to your family’s well-being or to keep your job.

Third, plan a payment strategy that works best for you. After prioritizing the bills that are critical to your family’s well-being, you still may have several other debts to address – which of those should you pay first? You should, of course, keep paying the agreed-upon monthly payments if possible, but if you have extra money to put toward your debts, where should you start? Some people start by attacking the debt with the lowest balance – they are motivated by the idea of completely wiping out a debt so they have fewer bills to think about. You will actually save the most money by first focusing on the bill with the highest interest rate. To explore debt repayment options, check out PowerPay, a free and non-commercial debt calculator sponsored by Utah State University Extension.

Taking control of your debts starts with three steps: understanding it, being aware of consequences of not paying debt, and having a plan to reduce debts. It’s not easy to become debt-free, but for most consumers it can be accomplished with hard work and dedication. Be sure to contact your local ISU Extension financial educator if you’d like some assistance with sorting through your options.

Brenda Schmitt

A Iowa State University Extension and Outreach Family Finance Field Specialist helping North Central Iowans make the most of their money.

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