As homeowners, we are always looking for new ways to reduce our monthly expenses yet increase the value of our home. Installing solar on your home does both, and more. So, to share our passion for going Green and to help you decide on Solar, we are wrapping up our 20 Financial Tips for 2020 with five reasons to get solar today.
1. Reduce Your Electricity Bills
When you install solar panels on your home, you will generate power for the life of your panels (25+ years) and cover your energy consumption each and every month, sometimes covering more than 100% of your usage. Plus, you can feed that extra energy back into the grid for credit on your electric bill.
2. Increase Your Property Value
Experts have found that homes with solar systems have higher property values and sell more quickly than homes without.
3. Shield Yourself From Increased Energy Costs
Having your own solar energy system allows you to fix your electricity rate and protects you against unanticipated increases in energy costs.
4. Take Advantage of the Tax Credit Extension
At the end of 2016, a five year extension made tax credits available through 2021, on a sliding scale. From 2016 through 2019, the tax credit was 30 percent of the system’s cost. This year, solar owners can deduct 26 percent of the cost of the system from their taxes. The percentage drops to 22 percent in 2021, and then again to 0 percent for residential systems and 10 percent for commercial systems in 2022. So, if you are thinking about installing solar and want to make the most out of its tax deduction, 2020 is the time to buy.
Many consumers make the decision to purchase and install solar on their home so they can take advantage of the solar tax credit, officially known as the Investment Tax Credit (ITC). This tax credit is available to those who purchase their solar, which makes buying a system more affordable. Solar systems installed during the year 2023 will receive a dollar-for-dollar tax deduction equivalent to 30% of the cost of the system.
Example: The tax credit at 30% on a $20,000 system is $5,200, which makes the net cost only $14,800. Once installed, the net cost will continue to be reduced by the amount you save each month on electricity bills.
Take the following steps to claim your tax credit:
Make sure you have enough tax liability to claim against your taxes, referencing Section 48 of the Internal Revenue Code, the ITC can be carried back one year and forward 20 years. So, if you had a tax liability last year and not this year, you can still claim your credit under this rule.
Complete IRS Form 5695.
Include your ITC information to your Form 1040.
*Meet with your Tax Advisor to validate based on your personal situation.
As part of our 20 Financial Tips for 2020 series, we want to make sure you have the tips and tools to keep yourself, and your finances, safe.
1. Keep Your Private Information, Private
We never think we will become a victim of fraud until it’s too late. That’s why, it is important to always be cautious when you are contacted and prompted for personal information. A common fraud tactic is to impersonate a financial representative and make-up a scenario, such as there being fraud on your account, to encourage you to release private information.
Since your financial institution may indeed contact you, it is important to distinguish what they will not ask you for. At Wheelhouse Credit Union, we will never call you and ask you for:
Your Digital Banking username and/or password
Your Wheelhouse account number
Your Debit or Credit Card number, CVV, or PIN
If you are unsure of the caller’s identity, you should always hang up the phone and contact the institution directly. It is important to note, fraudsters may be using ‘line-tapping’ to stay connected after you hang up. This may allow them to remain on the line during your next call, or redirect it back to them. However, it is believed that line-tapping only remains in effect for several minutes after the initial call.
Therefore, we recommend you wait 5 to 10 minutes before calling the institution directly, or call immediately from another line.
2. Set Strong Passwords or Use an Alternative Method.
This is SO important, we cannot stress it enough. Here are a few dos and don’ts when setting up your passwords:
Do use 15+ characters. A great way to do this is to make up a sentence that you can remember. The longer the password, the better.
Do swap out letters with numbers, symbols and a mix of uppercase and lowercase.
Do have different passwords for each account. If a hacker gets your password from one platform/application, they can try and use it across your other platforms. If you have a different password on these platforms, you will reduce the chance of them getting in.
Do change your passwords every 3 to 6 months, depending on complexity.
Don’t use obvious numbers like your birthday, your wedding date, or your address.
Don’t use obvious words like your child’s name, your last name, or commonly used words.
Don’t use the same password across multiple platforms.
Don’t recycle old passwords. Your old passwords were likely less strong and more simplified. These passwords may have been breached at some point without you knowing. It is best to avoid this and just create new passwords.
Do you have a hard time remember passwords? Consider using a secure password management system such as Bitwarden or a tool such as a YubiKey.
3. Protect Your Personal Identification Number (PIN)
Be alert when making purchases
Pull hard on card scanners to make sure that a skimmer is not attached
Check for cameras that may be picking up your PIN
Cover the keypad when typing in your PIN
Look for anyone nearby that may be glancing over your shoulder
When possible, use metal keypads over silicone to protect from infrared readers
4. Use a Digital Wallet
Generally speaking, digital wallet applications are better secured than your physical credit or debit card. This is because the digital wallet app provides a unique, one-time code whenever you make a purchase. This code can only be used for that specific purchase, which means if a hacker got the code, they wouldn’t be able to use it. By using a code, it also eliminates the need for card details to be transferred, preventing an employee and/or a potential hacker from receiving your card details. To learn more about the security of digital wallets, you can check out this article on DefendingDigital.
5. Be Wary of Public WiFi
Public WiFi is both convenient and dangerous. The number one tip to remember when you are connected to public WiFi is to avoid making any financial transactions or logging into any financial account. You may want to consider using a Virtual Private Network (VPN) for an extra layer of security when using public WiFi. You can learn more about VPNs and see a provider comparison here.
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