The Bottom Line
Small business is important to Central Oregon, and to Mid Oregon. Find tips and resources for business, and information about Mid Oregon’s commercial services and business members.
Holiday Dough Crumbles Records in 2020
Although many things in 2020 haven’t gone according to plan, Mid Oregon members haven’t let that dampen their holiday spirit. Look no further than this year’s Holiday Dough fundraiser, which has already smashed every previous year’s total by several thousand dollars.
Responding to increasing community needs
Traditionally, Mid Oregon’s Holiday Dough fundraiser invites members to make small cash contributions at the branches to assist local food pantries with holiday meals. This year, we predicted the need would be greater—and the branch traffic would be lower.
So we introduced another option. We created an online form to make it easier for members to donate from their homes or offices. And they delivered! So far, members and the Mid Oregon branch teams have contributed more than $6,400. The record for a previous year fundraiser was $3,871 in 2018.
- The Giving Plate of Bend, coordinating the Monthly Food Box program, Grow & Give Garden, Kid’s Korner food bank, and Backpacks for Bend.
- La Pine Christmas Basket Association, providing food during the Christmas holiday for people in the South Deschutes County area.
- Redmond Jericho Road, Providing hot meals, backpacks of food, emergency and housing assistance to those in need in the Redmond area.
- Jefferson County Food Bank (Madras), supplying food to families and individuals.
- Crook County Holiday Partnership—(Prineville), providing holiday support to families with children, senior and disabled citizens in need in Crook County.
- Sisters Kiwanis Food Bank – Distributing more than 60,000 pounds of food annually and helping more than 100 families each month, the food bank offers a shopping-style food pantry to patrons.
It’s not too late!
It’s still not too late to donate to Holiday Dough—use our convenient online form to transfer funds from your Mid Oregon account. Or, you can give us a call at 541-382-1795 and we’ll handle it over the phone.
Once again, our members show up to help, so we thank everyone who participated in Holiday Dough in 2020. We appreciate all you do to help local families have a brighter holiday season!
Year-End Tax Tips For 2020
By Jean Chatzky *
These year-end tax tips offer potential savings for your 2020 returns
Yes, it feels like we just finished filing our taxes. And yes, it’s already time to start thinking about them again. That means getting organized now and making sure you do everything you can to lower your 2020 tax bill before the end of the year.
Lisa Greene-Lewis, a certified public accountant and tax expert, offers these tips to help maximize savings on your 2020 returns:
Donate to Charity
If you are among the 90 percent of taxpayers who now take the standard deduction and don’t itemize your returns, including charitable donations, pay close attention. Under the CARES Act, Greene-Lewis says, there’s a new charitable deduction of up to $300 on your 2020 taxes (the ones you pay in 2021) for cash donations made to a 501(c)(3) organization such as a church or synagogue, even if you don’t itemize and claim the standard deduction.
Something else to note: The CARES Act also temporarily eliminates the limit on the number of cash contributions you can deduct when itemizing. And please don’t forget to ask for a receipt. The Internal Revenue Service requires proof of all cash donations, such as a canceled check or a statement or receipt from the organization where you made a contribution. This will come in handy if you are audited.
Maximize your retirement
Another way to reduce taxable income is to make a contribution to your retirement savings account. Whether your contribution goes to a 401(k) or traditional IRA, you can reduce taxable income (and save more for the future) by making sure you contribute the maximum allowed in your plan by Dec. 31, 2020. (Making a Roth IRA contribution is also good for your future, btw. It just won’t help on lower your tax bill.)
Pay tuition early
Being a lifelong learner has its rewards, especially when the courses you take help to maintain or enhance your job skills. If you are enrolled in an accredited college or other educational program, consider paying for the next semester’s tuition by Dec. 31 which could qualify you for a tax credit of up to $2,000 with the Lifetime Learning Credit.
Consider a home office tax deduction
Because of the COVID-19 global pandemic, many people’s employment status has changed, with a growing number of Americans becoming self-employed. The good news here is that eligibility rules for claiming a home office deduction have been relaxed, Greene-Lewis says, to allow more self-employed filers to claim the tax break. If you have no fixed location for your business, you can claim a home office deduction if you use the space for administrative or management activities, even if you don’t meet clients there.
While you can’t claim your kitchen if you are using your dining table as a desk, you can use a home office if the space is used exclusively for business, says Greene-Lewis, noting that many people have avoided the home office tax deduction because it was considered a red flag for an audit. If you legitimately qualify for the deduction, she says, there shouldn’t be a problem.
Defer your income or bonus
If you are in the enviable position of earning a year-end bonus in 2020, you can ask to be paid in January 2021, if it’s an acceptable practice at your company to pay bonuses the following year. Of course, you will still have to pay taxes on the money, just not in 2020.
Those who are self-employed or do freelance work may have a little more wiggle room with deferring reportable income. One way to lower 2020 income is to delay your invoices until late December so that you won’t receive a payment until January 2021 or later. For those with side gigs, you are required to report income of $600 or more from employers.
Double check your withholding
You can use the Tax Withholding Estimator on IRS.gov to help determine the right amount of tax to be withheld from your paychecks if you work for someone else. If you want to adjust your withholding for the remainder of the year, time is running out. You should submit a new Form W-4, Employee’s Withholding Certificate to your employer as soon as possible.
* This guest article, “Year End Tax Tips for 2020”, is from the “Your Money Blog” in Mid Oregon’s digital banking Credit Savvy resource. “Year End Tax Tips for 2020” is made possible by Savvy Money.
How to Start Looking for a New Car
In an ideal world, a car dealer helps you find the perfect car for you at the perfect price, and you drive away with a smile on your face and many happy years ahead of you. And that’s how it does work for many of those looking for a new car, who did their homework in advance, learning how to navigate the process and how to work with dealers.
Because some dealers put more emphasis on their profits than on their customers’ satisfaction, an educated car-buyer looking for a new car must know what he wants and for how much, so that he makes the transaction smooth and comfortable with no regrets as he leaves the lot.
Know what you want
The more clearly you know what you want, the less likely you are to be steered toward something you discover later you don’t want, or can’t afford. This includes the various options that come with a vehicle. If you don’t know exactly what you want, at least have your preference narrowed down to a few choices.
Research the vehicles on dealer Websites or automaker Websites. Also check out consumer publications such as Motor Trend, Car and Driver, and Consumer Reports‘ annual car-buying issue. Internet sites like edmunds.com are also valuable sources of information on looking for a new car.
Check the selection and pricing of several dealers in your area.
Know how much you want to pay
How much can you afford to pay for a new car, truck, minivan, or other vehicle? Factor that in so that you don’t get sold on something you can’t afford. The dealer will most likely ask you how much you can afford so that he or she knows what to offer you. Having a specific number handy can help you when it comes time to negotiate with a dealer.
A popular recommendation is that your total monthly car payments should not exceed 20% of your take-home pay.
Have your financing in advance
If you can’t pay for a vehicle in cash or have someone else pay for it, are you preapproved for a loan? Compare the financing options offered by the dealer (if it offers financing) against those offered by your financial institution.
Mid Oregon can be your resource for financing when looking for a new car or truck. Review our Auto loan webpage, or contact a loan officer by email, phone (541) 382-1795, or in person at one of our seven Central Oregon branches.
Learn the pricing language
Several different prices are used in new-car dealings when you are looking for a new car.
Invoice price. This is the price that the manufacturer charges the dealer for the vehicle. It may actually be higher than what the dealer charges you because dealers get rebates, allowances, and various incentives from the manufacturers. In addition to the price of the vehicle, the invoice price should have the destination and delivery cost built into it.
Base price. This is the cost of the vehicle without any options.
MSRP. The manufacturer’s suggested retail price (MSRP) is the price that the manufacturer suggests the vehicle be sold. This price includes the manufacturer’s installed options and the factory warranty. This price is also known as the Monroney sticker price, after the US senator who sponsored legislation to require disclosure of information on new autos. By law, a sticker with the MSRP and the fuel economy information must be affixed to the car window.
Dealer sticker price. The dealer sticker price is the MSRP plus the suggested retail price of any dealer-installed options and any dealer markups.
Ordering a car
Sometimes dealers don’t have exactly what you want, so you can work with a dealer to order a car directly from the automaker and have it delivered to the dealer, where you can pick it up.
Buying on the Internet
You can also buy a new vehicle on the Internet, in which you will work with a dealer by email or phone.
Mid Oregon’s financial workshop, “Take the Wheel, Get The Best Car Deal”, can provide additional information to help you buy the right vehicle for the right price. To see upcoming Mid Oregon workshops, visit https://www.midoregon.com/education/financial-workshops.shtml.
Watch the recorded webinar version.
See workshop handouts and other available webinar videos and handouts.