As Financial Literacy Month wraps up, it’s the perfect moment to reflect on how far we’ve come in mastering our financial game. For us women in leadership and entrepreneurship, understanding finances isn’t just about keeping the lights on—it’s about empowering ourselves to make smart choices, take risks with confidence, and build sustainable, independent futures. So, let’s dive into why financial literacy is our secret weapon and how we can keep sharpening it.

Why Financial Literacy is Our Superpower

Knowing the ins and outs of finance gives us the tools to navigate the sometimes intimidating world of business. Whether it’s managing cash flow, making investments, or understanding the bigger picture behind our financial decisions, it’s about being in control and making moves with purpose. For women entrepreneurs and leaders, this knowledge is more than just helpful—it’s essential. It breaks down barriers, opens doors, and ensures we’re not just players in the game, but we’re leading it.

Celebrating Our Wins

First things first—let’s give ourselves a pat on the back. From starting small businesses to steering Fortune 500 companies, we’re making waves. A big chunk of this success comes from getting smart about our finances. Every budget we stick to, every investment we make, every financial statement we tackle, strengthens our businesses. But beyond the numbers, it’s the confidence and independence that come with knowing our stuff that really count.

Taking Our Financial Literacy to the Next Level

Here are some tips to keep leveling up:

• Keep Learning
  Finance is always changing, so make lifelong learning a priority. Dive into books, podcasts, webinars, or courses. The more you know, the more confident and capable you become.
• Surround Yourself with Experts
  Find your tribe of financial gurus. Networking with knowledgeable people can give you new insights and advice that you might not have thought of. Plus, a good mentor is worth their weight in gold.
• Use Financial Tools.

Use technology to keep your finances in check. Be sure to check out www.mindingmybusiness.black—your go-to website for staying on top of your budgeting. If you can, hire an accountant or bookkeeper to keep things smooth, but if that’s not in the cards, grab some reliable accounting software and other tools to keep yourself organized. These tips will save you time, cut down on mistakes, and give you real-time updates on your financial health.

• Set Clear Financial Goals
  Know where you’re headed. Whether it’s boosting revenue, cutting down debt, or saving for a big investment, having clear goals keeps you focused and motivated.
• Be Smart with Money
  Take charge of your money management. This means budgeting wisely, saving regularly, and steering clear of unnecessary debt. Remember, every dollar you save is another dollar you can invest in your business or your future.
• Invest in Your Financial Education
  Consider taking a financial literacy course or workshop specifically for entrepreneurs. This kind of investment pays off big time by giving you the skills you need to manage your finances like a pro.
• Celebrate Your Financial Wins
  Just like we celebrate business milestones, let’s celebrate our financial victories too. Paid off a loan? Hit a savings target? These are the moments that deserve recognition and remind us why financial literacy is so important.

As we wrap up Financial Literacy Month, let’s remember that this journey is about so much more than just numbers—it’s about empowerment. Financial literacy gives us the confidence to lead, make informed decisions, and create our own paths to success. Here’s to our financial independence, breaking down barriers, and building our empires. Keep shining, keep learning, and let’s make this financial literacy journey one of our greatest adventures yet!

The Taxpayer Bill of Rights defines 10 fundamental rights of every taxpayer. One of these rights is the right to quality service. Let’s take a closer look at the right to quality service and what it means for taxpayers.

Right to quality service

Taxpayers have the right to:

• Receive prompt, courteous and professional assistance from the IRS.
• Be spoken to in a way they can easily understand.
• Receive clear and easily understandable communications from the IRS.
• Speak to a supervisor about inadequate service.

What taxpayers can expect

When taxpayers interact with the IRS, they can expect IRS representatives to:

• Listen objectively. They will consider all relevant information prior to giving the taxpayer an answer.
• Answer questions promptly, accurately and thoroughly.
• Give the taxpayer information on recourse options and applicable appeal rights.
• Treat people with courtesy.
• Generally, only contact taxpayers between 8 a.m. and 9 p.m.
• Provide the taxpayer with information about how to get help from the Taxpayer Advocate Service in all statutory notices of deficiency.
• Provide information about options for legal help if someone is eligible for assistance from a Low Income Taxpayer Clinic.

IRS representatives will not:

• Contact the taxpayer’s employer if they know the employer doesn’t allow such contact.
• Make aggressive phone calls that threaten arrest or prison time.

Taxpayers can find answers to most tax questions on IRS.gov. Taxpayers can also contact the IRS directly by calling the number on the top right corner of all notices and letters.

More information

• Taxpayer Advocate Service
• Publication 556, Examination of Returns, Appeal Rights, and Claims for Refund
• Forms and publications about your appeal rights
• Publication 594, The IRS Collection Process PDF

Businesses that file 10 or more information returns must e-file Form 8300, Report of Cash Payments Over $10,000, instead of filing a paper return. For those with fewer information returns, e-filing Form 8300 is optional.

To electronically file Form 8300, a business must set up an account with the Financial Crimes Enforcement Network’s BSA E-Filing System.

Waivers and exemptions

If electronic filing would cause undue hardship, a business can request a waiver by submitting Form 8508, Application for a Waiver from Electronic Filing of Information Returns PDF. If the IRS grants a waiver from e-filing any information return, that waiver automatically applies to all Forms 8300 for the rest of the calendar year. A business may not request a waiver from filing electronically only Form 8300. If a waiver is given, the business must include the word “waiver” on the center top of each Form 8300 when submitting a paper filed return.

If using the e-file technology conflicts with a filer’s religious beliefs, they’re automatically exempt from electronic filing. The filer must include the words “religious exemption” on the top of each Form 8300 when submitting the paper return.

Electronic filing is free and convenient

The e-filing system is a more convenient and cost-effective way to meet the reporting deadline of 15 days after a transaction. Businesses get a confirmation email when the IRS receives the form, and they can batch e-file their reports. This especially helps if businesses must file many forms.

For more information, businesses can call the Bank Secrecy Act E-Filing Help Desk at 866-346-9478 or email them at bsaefilinghelp@fincen.gov. For details about the BSA E-Filing System, businesses can submit a technical support request at Self Service Help Ticket. The help desk is available Monday through Friday from 8 a.m. to 6 p.m. ET.

If taxpayers are filing a tax return for the first time, IRS Free File can help. This program provides free tax preparation, free electronic filing and free direct deposit for eligible taxpayers.

The IRS Free File adjusted gross income (AGI) limit for tax year 2023 is $79,000 for families and individuals. Each provider sets its own eligibility rules based on age, state residency and income, and offers are available in English and Spanish. To find an offer that is right for them, taxpayers can use the Find Your Trusted Partner tool.

What taxpayers will need to prepare to file

To complete a tax return with IRS Free File, taxpayers need to gather the following information:

• Social Security number. Taxpayers who don’t have or aren’t eligible for a Social Security number can use an Individual Taxpayer Identification Number.
• Wage and income information. This information is usually on forms from their employer or other payer, such as Form W-2, Wage and Tax Statement and the Form 1099 series.
• Their dependent status. They need to know if another taxpayer, such as a parent, plans to claim them on a separate tax return. If they’re claimed as a dependent on another tax return, they can’t claim themselves as a dependent on their own tax return.
• Documentation for all tax credits and deductions. With the increased standard deduction, itemized deductions may not be necessary. All credits and deductions are subject to IRS verification and review.
• Adjusted gross income (AGI) for the prior year or a self-selected PIN. They need this information to validate and sign an electronic tax return. First time filers over the age of 16 can enter “0” as their prior year income to sign their tax return. Taxpayers who have filed before should use the AGI from their prior year tax return.
• Bank account and routing number. If taxpayers get a refund, they need this information to have their refund direct deposited. Direct deposit the fastest and safest way for them to get their money.

Benefits of IRS Free File

• A free federal tax return. Taxpayers can choose an IRS Free File partner’s offer based on the offer qualifications on IRS.gov. If they choose a program and qualify, there’s no charge for preparation and e-filing of a federal tax return.
• Fees to file a federal return are prohibited. IRS Free File program participants can’t charge qualified taxpayers to file a federal tax return.
• Protected tax information. IRS Free File partner companies may not disclose or use tax return information for purposes other than tax return preparation without the taxpayer’s informed and voluntary consent. These companies are also subject to the Federal Trade Commission Privacy and Safeguards Rules and IRS e-file regulations.

IRS Direct File

Taxpayers in 12 states may be eligible to file for free with the IRS Direct File pilot, a new tax filing service from the IRS.

Money market accounts can be great for people who want the higher interest rates of a savings account but also want the flexibility to write checks. Some banks require minimum balances to get the best rates, but many—especially online-only banks—don’t.

Here’s how money market accounts stack up against other savings options and what to look for when choosing one.

What is a money market account?

A money market account is an interest-bearing bank account. At the end of the day, it looks and functions very much like a savings account, but with a few distinct features of a checking account.

A money market account will usually have some combination of the following features:

• A higher interest rate than the checking account at the same bank
• FDIC Insurance
• Check-writing capabilities
• A debit or ATM card
• A minimum balance requirement
• A monthly withdrawal limit
• Monthly maintenance or service fees

Here’s how a money market account compares to other types of bank accounts.

Money market accounts vs. savings accounts

Money market accounts tend to be more accessible than savings accounts.  They often come with a debit or ATM card and a checkbook so you can pay others or make direct withdrawals yourself, instead of having to transfer money to a checking account first. But how frequently you can make withdrawals or transfers depends on the individual bank’s rules.

The Federal Reserve used to limit withdrawals and transfers from savings products, including money market accounts, to six per month. The Fed scrapped that rule during the pandemic and now let banks decide whether to limit withdrawals or not. It’s not uncommon for a bank to set a monthly limit and charge a fee for each additional withdrawal or transfer.

In terms of interest rates, money market accounts and so-called high-yield savings accounts pay about the same on your balance—which is to say, much more than a checking account. Online banks as of late October 2023 were offering top rates of 5% or more on money market and savings accounts, while typical checking accounts earned less than 1%, according to DepositAccounts.com data.

Money market accounts vs. checking accounts

Checking accounts are the most accessible place to keep your money, aside from that shoebox under your bed. Most people use a checking account for day-to-day finances like paying bills, writing checks or taking out cash. Because of the low interest rates usually associated with checking accounts, they are not the most efficient place to keep large balances over the long term.

Money market accounts, like savings accounts, are designed to keep your money safe—and even growing—for longer than a few weeks or months. As such, a bank will pay interest on your balance as a way of enticing you to park your money there.

This is a presumed ideal setup, using a savings or money market account in conjunction with a checking account to manage your cash flow and short-term savings needs.

Money market accounts vs. CDs

While still a savings product, certificates of deposits or CDs, have a distinct difference when it comes to accessibility. A CD may offer a higher interest rate than a savings or money market account, but earning that return depends on locking up your money for a fixed period. The longer you leave your money untouched, the higher your interest rate, generally.

Money market accounts, by contrast, let you deposit and withdraw your cash with relative frequency.

Money Market Accounts vs. Money Market Funds

Money market accounts are deposit accounts, while money market funds are investment products. Although a money market fund is as low risk as an investment can get, it’s still not as safe as a deposit account.

Money market accounts, savings accounts, checking accounts, and CDs are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account holder, per ownership category, per bank. This insurance means you won’t lose your money if the bank goes under. It’s peace of mind without extra cost.

Money market mutual funds invest your cash in low-risk U.S. Treasury securities. These funds are commonly used to temporarily hold cash before making an investment. However, since they are actively managed, there’s a fee that eats into your returns.

Money Market Account Terms to Know

When shopping for a money market account, keep these important features in mind:

Annual Percentage Yield (APY)

This is the rate of return on your balance, including compounding, over a year. Banks compound interest daily or monthly, but APY changes several times a year, so the actual interest earned may differ from the advertised rate.

Deposit

Some banks allow cash deposits into your money market account via ATMs, while others only accept electronic transfers from other bank accounts.

Fees

Monthly maintenance or service fees are less common with online banking, but many traditional banks still charge them. You can often avoid these fees by maintaining a certain balance or opting out of paper statements.

Withdrawal Limit

Banks must disclose withdrawal limits, which is the number of times per statement period you can withdraw cash or transfer money from the account. By law, a bank can’t set a monthly withdrawal limit of fewer than six on savings or money market accounts.

Minimum Deposit Requirement

Some accounts require a certain amount of money to open. These minimums vary, so shop around to find one that meets your needs.

Minimum Balance Requirement

Banks may require a minimum balance to avoid fees or account closure. Some banks don’t have a minimum balance requirement but only pay interest once your account reaches a certain amount. These are called rate or balance tiers, where larger balances get a higher rate.

FDIC Insurance

Money market accounts are insured up to $250,000 per account holder, per ownership category, per bank. You can check your insurance status using the FDIC calculator. For example, you can have $250,000 in an individual money market account and $250,000 in a joint savings account at the same bank and be fully insured. The FDIC insures over 4,700 financial institutions, and you can use their tool to check a bank’s membership status.

Debit or ATM Card

Some money market accounts provide ATM cards for withdrawals. Some even offer debit cards for purchases. Check if there are any fees associated with these cards.

Check Writing

Some money market accounts allow check writing, like a checking account. Keep in mind that a cashed check may count towards your monthly withdrawal limit.

How to Use Money Market Accounts in Your Portfolio

Whether you’re building an emergency fund, saving for a big purchase, or just wanting to earn some interest on your cash without risking it in the stock market, a money market account is a reliable tool.

Some banks only offer money market accounts or savings accounts, not both. If you’re unsure which to choose and don’t need to check writing or a debit card, compare a few trusted banks or credit unions to see what they offer.

CDs are federally insured, just like you’re checking and savings accounts, but they usually come with much better interest rates. In 2023, some CD rates hit 6% or more. The catch? Unlike other bank accounts, CDs require you to lock up your money for a set period, which can range from a month to five years or more.

That’s where a CD ladder comes in handy. This strategy involves splitting your savings into several CDs that mature at different times. This way, you can earn the most interest possible while still having access to some of your money.

The ladder is a very simple tool that gives you the maximum amount of flexibility.

How to Find the Best CD Ladder Rates

CDs usually pay higher interest rates than checking and savings accounts because they require you to lock up your money for a specific period. For example, in October, the average savings account paid 0.46%, while average CD rates ranged from 0.22% to 1.50%. Online banks and credit unions often offer even better rates.

Rates vary based on the length of the CD and how much you deposit. Typically, the more money you’re able to invest and the longer the term, the better the rate you’re going to get.

While some big national banks have started offering competitive CD rates, it’s also worth checking out online banks, local community banks, and credit unions. CDs are available in various terms, from a few months to five years or more. Some institutions even offer CDs with terms as short as 30 days, but those usually don’t have great returns.

Banks often have promotional CD rates, too. These rates might look appealing but aren’t always ideal for laddering because they often come in odd terms, like 11 months instead of a full year.

How to Set Up a CD Ladder

A CD ladder is a savings strategy that offers the higher yield of a CD with the flexibility of a savings account.

You create a CD ladder by dividing the amount you want to save into smaller portions and putting those into individual CDs with staggered maturity dates. When a CD matures, you roll those funds into a new CD, potentially at a higher interest rate.

Here’s a simple example: Let’s say you have $15,000 to invest in CDs. Instead of putting it all into one CD, you could create a ladder with three different CDs:

• $5,000 in a 3-month CD
• $5,000 in a 6-month CD
• $5,000 in a 1-year CD

When the 3-month CD matures, you roll it into a 6-month CD. This way, at any point, you’ll have access to $5,000 every three months, giving you a nice balance of earning interest and keeping your money accessible.

How Much Money Do You Need for a CD Ladder?

While some banks have minimum deposits of $1,000 or more for CDs, many set the bar lower, or have no minimum at all. This means you can build a CD ladder even with a modest amount of money. If you aim for a five-year ladder and use CDs with a $500 minimum deposit, you could start with as little as $2,500.

How Long Should a CD Ladder Be?

A three-year or a five-year ladder are oftentimes best, because longer-duration CDs generally offer higher returns than shorter-term ones. If you think you’ll need the funds in less than three years, a high-yield savings account might be a better option, offering similar interest rates without the limitations of a CD.

Most CDs have penalties if you withdraw funds before maturity, ranging from 30 days to a full year’s worth of interest, depending on the term. If you don’t want to risk it, look for a no-penalty CD, but note that they usually have lower interest rates than traditional CDs.

What Are the Benefits of CD Laddering?

The main benefit of laddering is that you always have access to some portion of your savings within a relatively short time frame. While not a substitute for an emergency fund, a CD ladder can effectively augment one. If the first CD in your ladder matures in three months, you can keep enough money in a regular savings account to cover expenses during those three months and invest the rest in a ladder of CDs with higher interest rates.

In a rising interest rate environment, laddering CDs helps you capture potential rate increases. If you had locked $10,000 into a three-year CD in 2021 or 2020, you’d probably regret it now. But if you split that total into $2,000 blocks with staggered maturity dates, you would have the chance to reinvest part of your savings at higher rates as the Fed raises interest rates to combat inflation.

Laddering also allows you to benefit from the higher yields offered by longer-term CDs. Once you have a ladder with regular maturity dates, each new CD you buy will have a term corresponding to the farthest date of your ladder, letting you earn extra interest while keeping some of your money accessible.

How Many CDs Can You Have at One Bank?

There’s no limit to how many CD accounts you can have at one bank, but FDIC insurance typically covers only up to $250,000 in deposits at a single institution. If you plan to have more than that in CDs, spread your accounts across several banks to ensure your funds are fully protected.

What Are Some Alternatives to a CD Ladder Strategy?

Experts suggest that you can use the laddering technique for other types of financial products as well. Any low-risk, fixed-income instrument works well in a ladder. It could be a CD, a Treasury, an investment-grade corporate, or municipal bond.

Short-Term Treasurys

Like CDs, short-term Treasurys are sensitive to Fed rate changes and offer marginally more favorable tax treatment. Earnings are taxed federally at ordinary income rates, but interest on deposit accounts (including CDs) and corporate bond yields are also taxed at the state and local levels.

No-Penalty CDs

One of the biggest drawbacks of CDs is the penalty for early withdrawal. Some banks offer non-penalty CDs, but these typically have lower rates of return.

Brokered CDs

Brokered CDs, bought through brokerage accounts, offer higher returns than conventional CDs without risking your principal. They allow you to hold CDs with multiple banks and credit unions at once, helping to ensure FDIC insurance coverage (since the limit is $250,000 per institution).

Brokered CDs can also be sold before maturity without early withdrawal penalties, but they are callable, meaning the bank can terminate the CD at any time.

Savings Accounts

If you prefer not to lock away your money or don’t want to manage CD rollover dates, consider high-yield savings accounts. While CDs offer higher APYs, many online and some traditional banks offer savings accounts with returns of 4% or higher.

For those with the time and funds, a CD ladder is a risk-free strategy that can earn higher returns over time. The nice part about laddering CDs is you’re getting a higher rate for your savings, but you’re still able to maintain that liquidity.

There’s no magic number involved—it’s all about timing

So, you’ve got some extra cash on hand. Now you need to decide whether to save it or invest it. Surprisingly, this decision isn’t about how much money you have. Nowadays, with apps offering no transaction fees and low ongoing costs, you don’t need a large sum to start investing.

The key factor is time, not money. Here’s the simple rule: if you need the money within the next three years, save it in a high-yield savings account or a CD. If your goal is more long-term, or you don’t have a specific need for the money, consider investing in something that can grow, like stocks or bonds.

Time matters because it relates to risk. Money in a savings account is safe—you keep your balance, earn interest, and your funds are FDIC insured if the bank fails. Plus, you can access your money anytime without worrying about losses.

Right now, interest rates on high-yield savings accounts, especially from online banks, are pretty good—around 5 to 6% at some places. (These rates will eventually drop, but high-yield accounts will almost always be better than traditional ones.) CDs and money market accounts also have high rates right now, even beating inflation.

Investing could earn you more, but there are no guarantees. For example, the S&P 500 had over 20% returns in 2023 but lost 19% in 2022.

So, how do you choose the best option for your money and goals? There are tons of accounts and financial products out there. We’ve researched options from financial experts on each one and when they’re best to use. Read on to find out more.

Save Money You Need This Month

Your strategy: Saving
The tool you need: Checking account

Option: Put money for your day-to-day spending and bill payments here. This should cover your monthly spending, but not much more. However, avoid cutting it too close to avoid overdraft fees. Even though many banks have reduced these fees, penalties can still occur. Track your budget with a DIY method or a budgeting app and aim to keep at least 25% more than your monthly needs in your account to cover your checks.

Save for Emergencies and Unexpected Costs

Your strategy: Saving
The tool you need: High-yield savings account

Option: Use a savings account for your emergency fund and unexpected costs. These accounts should be liquid so you can easily cover deductibles, unexpected repairs, market downturns, or avoid debt.

Most financial experts suggest having at least three to six months of expenses saved for emergencies, like job loss. To be extra cautious, aim for 12 months given the current economic climate. If your income is unpredictable or you’re nearing retirement, you might want to save even more. Early retirees often keep up to two years of cash handy to avoid market risks. I learned this firsthand, and it really helped.

If retirement is far off, keep a minimum in your savings and invest the rest for long-term growth. Automating your savings is a smart move. Set up part of your paycheck to go directly into a savings account or arrange automatic transfers from your checking account. Money you don’t see is money you don’t spend. Keeping your high-yield savings account at a different bank from your checking can also help separate your savings from your spending.

CDs and Money Market Accounts

Your strategy: Saving
The tool you need: CDs, money market accounts

Option: For goals like buying a house in a couple of years, a CD can be a good choice. CDs lock in your money for a set period, offering a guaranteed rate of return, usually higher than a traditional savings account. You can open a CD online with most banks or investment brokerages. If you’re concerned about accessing your money, consider a CD ladder, which staggers your investments to ensure you have funds maturing regularly.

Money market accounts are another option, offering high interest without locking in your cash. These can be great for transitioning from saving to investing.

Invest for Long-Term Goals

Your strategy: Investing
Tools you need: Brokerage account or robo-advisor

Option: For long-term goals like funding your child’s college education, investing is a good strategy. Start by assessing your risk tolerance. Would you prefer having 100% in cash and seeing the market rise, or 100% in the market and seeing it fall by 29%? Your risk tolerance helps you decide on a portfolio mix, like 60% stocks and 40% bonds.

For young investors, a long-time horizon means short-term fluctuations are less relevant, so investing heavily in stocks might make sense. Most investing, like saving, can be done with a few clicks online. You can buy popular ETFs like VTI (Vanguard Total Stock Market Index Fund ETF) easily. If you’re hesitant about investing on your own, consider robo-advisors or professional advisors, which can offer tailored investment advice based on your financial situation.

Remember to diversify your investments to protect against downturns, spreading your money across different asset classes and sectors.

Invest for Retirement

Your strategy: Investing
The tools you need: 401(k), 403(b), IRA

Option: If you’re working, make sure you’re using an account like a 401(k) or 403(b) to save for retirement. Aim to max out your 401(k) or other workplace plan and at least contribute enough to get your company match.

Consider setting up automatic annual increases for your contributions, usually by 1%. Anything you don’t have to think about will help you save. If your employer matches 4%, save at least 5%—that’s just a day’s lunch money. Over time, you won’t even notice the difference. After a year, think about increasing your savings by 2% or even 3% each year.

If your company doesn’t offer a plan and you have earned income, you can start your own IRA or Roth IRA with an investment firm and contribute up to the yearly IRS limit. There are also options for self-employed retirement accounts with higher limits.

Should You Seek Professional Advice?

While you can go it alone with the advice above, sometimes getting personalized guidance from a professional can be smart. Experts suggest seeking a pro’s help during major life changes (marriage, having a child, etc.), if you want a solid retirement plan, or if you need reassurance that you’re on the right track.

If the stock market is volatile and you’re thinking about making big changes to your investments, a pro can offer valuable advice. A seasoned professional might tell you it’s a great time to maintain and even add to your portfolio to take advantage of lower stock prices. In the end, make the best financial decisions for your situation.

The Taxpayer Bill of Rights is the 10 rights all taxpayers have any time they interact with the IRS. These rights cover a wide range of topics and issues, and they explain what taxpayers can expect if they need to work with the IRS on a tax matter. This includes when a taxpayer files a return, pays taxes, responds to a letter or notice, goes through an audit or appeals an IRS decision.

Taxpayer Bill of Rights
Taxpayers have a right to:

Be Informed – The right to know what to do to comply with the tax laws.

Quality Service – The right to receive prompt, courteous and professional assistance when working with the IRS.

Pay No More than the Correct Amount of Tax – The right to pay only the amount of tax legally due, including interest and penalties, and to have the IRS apply all tax payments properly.

Challenge the IRS’s Position and Be Heard – The right to raise objections and provide additional documentation in response to formal IRS actions or proposed actions.

Appeal an IRS Decision in an Independent Forum – The right to a fair and impartial administrative appeal of most IRS decisions.

Finality – The right to know when the IRS has finished an audit.

Privacy – The right to expect that any IRS inquiry, examination or enforcement action will comply with the law and be no more intrusive than necessary.

Confidentiality – The right to expect that any information taxpayers provide to the IRS will not be disclosed unless authorized by the taxpayer or by law.

Retain Representation – The right to retain an authorized representative of the taxpayer’s choice to represent them when working with the IRS. Taxpayers have the right to seek assistance from a Low Income Taxpayer ClinicPDF if they cannot afford representation.

A Fair and Just Tax System – The right to expect the tax system to consider facts and circumstances that might affect their underlying liabilities, ability to pay or ability to provide information timely.
More Information:
Taxpayer Advocate Service

Knowing the ins and outs can give peace of mind

What is FDIC

Bank failures—like what just happened with Silicon Valley Bank—can be pretty nerve-wracking, making you worry about losing all your savings overnight. But don’t stress too much, because the Federal Deposit Insurance Corp. (FDIC) has got your back.

The FDIC was set up by Congress back in 1933, after a bunch of bank runs contributed to the Great Depression. Its main job is to protect the money of everyday depositors. By guaranteeing that your money is safe, the FDIC helps prevent the kind of panic withdrawals that can even take down healthy banks.

While the FDIC officially insures up to $250,000 per depositor, there are simple and legal ways to increase that coverage so that all your savings are protected.

So, if the news about Silicon Valley Bank—or Signature Bank, which also recently had issues—has you thinking about pulling your money from your bank, take a deep breath and relax. The answer is probably, “no need.”

Read on to find out how the FDIC works and exactly what is covered.

FDIC Insurance coverage limits

For most deposit accounts like checking and savings, the FDIC insurance limit is $250,000. That’s usually enough for most people, but there are a few things to keep in mind.

The $250,000 limit is per bank, per depositor, and per “ownership category.” Ownership categories include single accounts, joint accounts, certain types of trust accounts, corporate accounts, government accounts, and some retirement and benefit accounts.

This setup means you can actually get more than $250,000 in coverage. For example, if you have $250,000 in a savings account at Bank A and another $250,000 in a savings account at Bank B, you’re covered for $500,000 total. But if you have $500,000 split between a checking and a savings account at one bank, only $250,000 is insured.

You can also boost your coverage limits without using multiple banks. For instance, if you have a savings account in your name and a joint account with your spouse, your family is covered up to $750,000. That’s because the FDIC treats joint accounts as a different ownership category from single accounts, insuring them up to $250,000 per depositor.

Here’s another tip to ensure you’re covered: look beyond your bank’s brand name, especially if you have a high-yield savings account or CD.

Many digital banks are actually brands of traditional banks. For example, BrioDirect is the digital brand of Webster Bank, and UFB Direct is a brand of Axos Bank. These digital banks do carry FDIC insurance, but if you have deposits at both the online brand and the physical parent bank, they might fall under the same $250,000 FDIC coverage limit.

If you’re unsure, you can check the FDIC-member bank for your account using the FDIC’s BankFind tool.

Also, be diligent about FDIC insurance if you keep money with a nonbank fintech company. Many of these neobanks partner with FDIC-member banks for deposit coverage, but the FDIC advises caution. Make sure you understand the terms of how, when, and where your money is insured through the firm’s FDIC-member bank partner.

Keep reading to learn how the FDIC works and what it covers.

What does FDIC insurance cover?

FDIC insurance covers everyday bank accounts like checking and savings accounts, whether they earn interest or not. It also covers other types of deposit products, including money market deposit accounts and CDs.

However, FDIC insurance doesn’t cover everything. It does not protect stocks, bonds (including municipal bonds), mutual funds, life insurance, annuities, or crypto assets, though these might be covered by other types of insurance. It also doesn’t cover U.S. Treasurys, but these are backed by the U.S. government, making them a safe investment.

Here’s a quick rundown:

Are money market accounts FDIC insured?

Yes, FDIC insurance includes money market deposit accounts, but it doesn’t cover money market mutual funds, which you buy through a broker.

Are CDs FDIC insured?

Yes, certificates of deposit (CDs) are FDIC insured, up to the coverage limits. The exception is brokered CDs, which are bought through brokers and aren’t covered by FDIC insurance.

Are credit unions FDIC insured?

No, FDIC insurance doesn’t cover credit unions. Instead, credit union deposits are insured by the National Credit Union Administration (NCUA), which offers the same $250,000 coverage per depositor.

From a customer perspective, NCUA insurance is just like FDIC insurance. If you bank with an NCUA member institution, you automatically get NCUA insurance coverage, just like with FDIC member banks.

Are brokerage accounts FDIC insured?

No, brokerage accounts aren’t covered by FDIC insurance. Investment products like stocks, bonds (including municipal bonds), and mutual funds are not protected. If your brokerage account loses value, that’s a risk you take as an investor.

However, there’s some protection through the Securities Investor Protection Corporation (SIPC), an independent organization for broker-dealers. If your brokerage account is with an SIPC-member company and it fails, SIPC covers lost cash and securities up to $500,000 per customer, per institution, including a $250,000 limit for cash. This limit applies even if you have multiple accounts with the same brokerage.

Are crypto exchange accounts FDIC insured?

No, crypto exchange accounts are not FDIC insured. The FDIC doesn’t cover nonbank assets, including cryptocurrency. It also doesn’t protect against losses from fraud or theft.

The crypto market operates in a regulatory gray area, so you don’t get the same protection as you would with cash in a bank or credit union. Cryptocurrency exchanges, brokers, custodians, and wallet providers are all outside the FDIC’s supervision and coverage.

Tax credits and deductions change the amount of a person’s tax bill or refund. People should understand which credits and deductions they can claim and the records they need to show their eligibility.

Tax credits
A tax credit reduces the income tax bill dollar-for-dollar that a taxpayer owes based on their tax return.

Some tax credits, such as the Earned Income Tax Credit, are refundable. If a person’s tax bill is less than the amount of a refundable credit, they can get the difference back in their refund.

To claim a tax credit, people should:

Keep records to show their eligibility for the tax credits they claim.
Check now to see if they qualify to claim any credits next year on their tax return.
Deductions
Deductions can reduce the amount of a taxpayer’s income before they calculate the tax they owe.

Most people take the standard deduction. The standard deduction changes each year for inflation. The amount of the standard deduction depends on a taxpayer’s filing status, age and whether they’re blind and whether the taxpayer is claimed as a dependent by someone else.

Some people must itemize their deductions, and some people may choose to do so because it reduces their taxable income more than the standard deduction. Generally, if a taxpayer’s itemized deductions are larger than their standard deduction, it makes sense for them to itemize.

Interactive Tax Assistant
Find help with tax questions based on specific circumstances with the Interactive Tax Assistant. It can help a person decide if they’re eligible for many popular tax credits and deductions.

More information:
Tax credits for individuals: What they mean and how they can help refunds
Deductions for individuals: What they mean and the difference between standard and itemized deductions