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Show Page 8 The Ogden Valley news Volume XX Issue VII May 1, 2012 Which Financial Records to Save, Toss Zions Bank’s Pays for A’s Winners Announced Knowing These records include: By Jason Alderman —Local students bank $100 checks If the memory of hours spent hunting for • W-2 and 1099 income forms. the 2011-2012 school year to any Zions Bank and organizing paperwork to file your taxes • Year-end bank and brokerage statements branch. 2. For every “A,” you’ll get $1 deposited Getting good grades in school pays off—lit- into your Student Savings Account. Don’t have erally. You’ve worked hard for your grades; it’s a Zion’s account or not a client? No problem, time to get paid for it! Hardworking 7th through you’ll still be rewarded .50 cents per “A.” 3. Each “A” on your report card is an 12th-grade teen students (ages 13 – 18) in Utah and Idaho can earn $1 for every “A” they receive automatic entry for the chance to win in the on their 2011-2012 report cards. Plus, for each community and grand-prize drawings. You must pro“A,” students are automatically entered into drawings to win one of 152 scholarship savings vide your name, grade, phone number, school name, and city to be entered. accounts. Year-End On Friday, Grand Prize April 13, Drawing Melanie Eyres Entries from Eden’s from all comZions Bank munity drawbranch presentings will be ed Snowcrest pooled into the Junior High grand-prize School 7th drawing. One grade student Utah student Sam Good a and one Idaho one-hundredstudent will dollar check each win a for his stugrand prize—a dent savings $1,000 scholaccount. His arship savings name was choaccount. The sen from the deadline to Zions Bank’s turn in final Pays for A’s report cards drawing. Sam is the Pictured from left to right are Snowcrest Jr. HIgh Principal Scott for the yearson of Jeff and Elliott, student Sam Good, and Melanie Eyres from Zions Bank. end drawing is July 6, 2012. Jenny Good of Winners will be announced in October of 2012. Huntsville. For more information about the program, Applying is Easy - Applying for the Pays for A’s e-mail pays4as@zionsbank.com or contact program is easy: Andrea Schultze, Zions Bank Public Relations 1. Take your most recent report card for at 801-844-7934. is still fresh, think about doing some financial spring cleaning so next year’s tax preparation won’t be such an ordeal. Many people hold onto mounds of receipts and account statements because they’re not sure when it’s safe to toss them. (By toss, I mean shred – don’t give identity thieves any ammunition.) Here’s when you wouldn’t want to lack proper documentation: • If audited by the IRS you must be able to justify deductions, charitable contributions, income, etc. • Track stock and fund transactions so when you sell you’ll only be taxed on profits above the purchase amount; also, to justify claiming a loss on your taxes. • To claim tax credits/deductions for home improvements, such as energy-efficiency upgrades or for medical reasons. • If you make nondeductible (after-tax) contributions to an IRA or 401(k), to prove you’ve already paid taxes on the amount. • Your heirs will need your financial documents to settle your estate. The IRS has several periods of limitations during which you can be asked to produce records proving income, deductions, or credits you claimed: • Normally, they have up to three years after your tax return to request documentation. • However, if you failed to report income that is more than 25 percent of the gross income on your return, they have six years. • If you file a claim for losses from worthless securities, it’s seven years. • If you don’t file a return or file a fraudulent return, there is no statute of limitations. So, you should probably hold onto backup documentation for seven years, to be safe. showing interest earned. • Receipts, cancelled checks or other proof of payment for deducted expenses. • Home purchase or closing statements, insurance records and receipts for improvements. • Homeowners, car and medical insurance claim payouts. • Investment statements (stocks, bonds, mutual funds retirement accounts, etc.) IRS Form 552 contains detailed instructions on what to save and for how long (www.irs.gov). Hold onto certain documents for even longer than IRS audit requirements. For example: • Keep records for investments and major assets at least as long as you own them. • Save records and tax forms relating to retirement accounts, at least until you’ve drained their balances. • Toss monthly and quarterly loan statements after receiving year-end summaries, but always retain final payoff notices in case the loan erroneously goes into collection and you need proof. • Save all tax returns and attachments (Schedules, W-2 form, etc.) indefinitely. The same goes for hard-to-replace personal documents such as birth, marriage and death certificates, divorce, adoption and military discharge papers, will, power of attorney, etc. You can always save actual documents and receipts. But if your goal is to reduce paper clutter, scan copies and save as PDF files. Back up electronic “soft copies” on an encrypted flash drive or external hard drive in case your computer crashes. And, if you’re worried about fire, theft or other disasters, store additional copies in a safety deposit box or with a trusted friend. Recordkeeping is no fun, but compared to tearing the house apart to prepare for an audit, it’s a small price to pay. Zions Bank Wasatch Front Consumer Price Index Escalating Fuel Prices, Inflation, & Sustained Confidence In March 2012, on a non-seasonally adjusted basis, the Zions Bank Wasatch Front Consumer Price Index (CPI) increased 1.1 percent. The U.S. CPI, which is an aggregation of all prices throughout the nation, increased at a rate of 0.8 percent on a non-seasonally adjusted basis. Year-over-year, the Zions Bank CPI has gauged local inflation to be 2.7 percent, which is in line with the U.S. CPI of 2.7 percent. Almost 80 percent of March’s spike in inflation was driven by a single data point: price at the pump. Crude oil, which accounts for 76 percent of the price of gasoline, has risen approximately 9 percent since December 2011. These increases have been the result of higher tensions with Iran, growing demand from China, and oil investors speculating the worst. In March of last year, the Wasatch Front experienced a similar jump in inflation, again driven largely by gasoline prices. Twelve months ago, the surge in fuel prices closed wallets, decelerated investments, and challenged the state’s recovery. Today, the economy’s fundamentals have since strengthened in key areas, such as employment, consumer spending, and confidence. The latest consumer confidence data (local and national) reveal that higher prices at the pump have not changed consumer behavior. Historically, higher fuel costs equate to drops in confidence. However, with the flow of positive economic data, it is difficult to speculate the degree to which higher gasoline prices will adversely affect the local economy. In March, the cost of transportation along the Wasatch Front increased 5.2 percent, the largest single month increase ever recorded by the Zions Bank CPI. Gasoline prices, the primary contributor to the increase, rose 16 percent. Despite the significant increase in fuel costs, Utah remains the third cheapest state for gasoline in the nation. According to AAA’s Daily Fuel Gauge, the average price of regular gasoline in the state is $3.72—90 cents less than Hawaii. The cost of utilities jumped 1.1 percent last month due to increases in the price of propane and gas. Year-over-year, utilities have increased roughly 6.4 percent along the Wasatch Front. March’s increase is primarily attributable to seasonal adjustments in price, which occurs every spring. All other categories tracked by the Zions Bank CPI (e.g., food, clothing, housing, etc.) revealed a healthy rate of inflation. It is important to remember that March’s inflation is the result of higher gasoline costs and is not indicative of general price increases. As a result, the current rate of inflation is seen as short-term and will likely subdue in the long-run, having little impact on future economic growth. “There are two economic events playing out along the Wasatch Front right now,” said Zions Bank President and CEO Scott Anderson. “We are seeing escalating fuel prices compete with an improving labor market, where both have historically led confidence in polar directions. The latest Zions Bank Consumer Attitude Index revealed that the labor market’s improvements outweigh the negative impact of rising gasoline costs. However, Zions Bank will continue to track the situation closely, bringing consumers and businesses the most up-to-date information each month.” Analysis and data collection for the Zions Bank CPI and the Utah Consumer Attitude Index, to be released April 24, are provided by the Cicero Group/Dan Jones & Associates, a premier market research firm based in Salt Lake City. Additional information is available at <www.zionsbank.com> |