White House serves up online tax-savings tool

Looking for last-minute advice in the days leading up to April 15? Financial consultants at the White House have unveiled an online tax-savings tool in order to help taxpayers be aware of credits made available by the Recovery Act.

A direct response to the economic crisis, the American Recovery and Reinvestment Act of 2009 has caused the average income tax refund to increase more than $260, according to IRS data. This year, data is showing people taking advantage of the tax savings caused by the Recovery Act. Through March 12, 2010, the average refund is $3,036, up $226 from last year, according to an article on WebCPA.com.

Vice President Joe Biden says, “The big guys know all the credits and deductions to claim during tax season, but we want middle-class families to know just how much is out there for them this year thanks to the Recovery Act and how to take advantage of it,” Biden continues, “From help with college expenses to credits for cost-saving, energy-efficiency home improvements, these Recovery Act tax credits not only provide some needed relief for working Americans, but also help them invest in their families’ futures.”

As of March 22, 2010, data shows that less than half have filed their income taxes. If this is you, there is still time to take advantage of the Recovery Act. President Obama will be hosting a series of events across the nation to inform Americans of the act.

Want to check it out? Simply go to www.WhiteHouse.gov/Recovery, and answer a questionnaire. Questions asked include salary range, filing status, college expenses and recent home purchases.

'Smart meters' get green light thanks to grants

Say "bye-bye" to the old-school way of measuring household energy usage. At least 18 million American homes will turn on the national switch of electronic "smart meters" that show customers how much their power use costs them at any given time, allowing them to adjust that use accordingly.

Armed with the new gadget, utility companies will be able to know when a meter is in need of repair. Also, the new meters eliminate the need for meter-readers and automatically notify energy providers when the power goes out.

With 18 million more smart meters, the nation's total will be up to 40 million, thanks to $400 thousand to $200 million dollars in stimulus grants according to the Department of Energy.

On Tuesday, 100 utility projects were named that will share $3.4 billion in federal stimulus funding. The goal? To lower energy use, make the electric power grid more robust and speed deployment of advanced technology, a Wall Street Journal article reports. President Obama firmly believes in automating utility substations and installing advanced digital meters throughout the U.S.

How will smart meters help the consumer? According to Department of Energy officials, they'll automate the energy consumption process. The new meters will instantly tell customers how much it costs to consume power at peak times - such as hot summer afternoons. And they will be able to interact with smart thermostats and other household devices to reduce power use automatically.

Also, advanced digital meters are slotted to handle the ups and downs of uneven bursts of energy from solar power systems or wind turbines, allowing greater efficiency of electricity.

In California and Texas, however, millions of smart meters have already been installed by utility companies. Will these states be penalized because they have advanced in smart meters before the stimulus grants were offered?

New consumer emerges in economic downturn

Today's tough economy has created a new consumer.

The U.S. consumer of 2009 has adopted new behaviors. The U.S. Commerce Dept reports that consumer spending in December was down for the sixth month in a row. The month's consumer spending is down 1%, while income is down only .2%. Energy prices are at an all time low, leaving cash in everyone's pockets.
What does this mean? More savings. This is due to the rising risk of unemployment, cut in hours and the decrease in home prices. The risks and uncertainties of today's economy are prompting Americans to hold on to their money. Historically low interest rates are enabling many to refinance their home. The Christian Science Monitor reports that Beth Byrne, a Boston-area resident, saves around $200 a month from a home refinance. She isn't planning on spending this money soon, either. The money is staying in the bank.

When is the U.S. consumer of 2009 going to rebound? Many economists feel the end of 2009 will boast a trend of increased spending, however, there is high uncertainty. A Diageo/Hotline poll in late January reveals 43% of Americans believe it will take between 2-4 years in order to get the economy back on track. President Obama agrees that the economy will take years to restore.

A rise in consumer confidence will ultimately increase spending. Tax cuts proposed by a stimulus plan in Congress will ultimately help reduce the decline in employment, and anything in place to help stop the decline in home prices will restore consumer confidence. Bank recovery policies that anticipate an end in the economic recession will increase investor's sentiment, thus increasing consumer confidence as well.