Bruce came to personal finance writing the old fashioned way: he didn't have much money, but wanted to do cool things. Clearly, some creativity was in order. From traveling around Europe to paying for a wedding, moving to New York to raising a child, he's figured out how to have fun without spending much money. In the process, he's also learned a few things about how politics and economics can help (or hurt) middle class finances. As DailyFinance's senior features writer, Bruce gets to combine his two favorite things: learning how the world works and explaining what he's learned to his readers.
Eileen Wilbur, a 74 year-old blind woman living by herself, recently got a nasty shock when her daughter was helping her go through her mail. Apparently, Ms. Wilbur had failed to pay part of a water bill from the preceding year, and the city was now threatening her with a lien against her home. The bill, which Attleboro officials noted was among 2,000 that went out, was for one cent.
The letter went on to inform Ms. Wilbur that, unless she paid by December 10, she could face a $48 penalty, in addition to court proceedings. As her daughter, Rose Brederson, noted, Ms. Wilbur has lived in the house for almost 50 years and would most certainly pay the penny. However, given that the bill cost 42 cents to mail, one wonders how the City of Attleboro hopes to make its money back. What's more, while Ms. Wilbur is undoubtedly an outlier, it's reasonable to ask how many of the 2,000 bills, which cost $840 to mail, were worth less than the price of postage.
When confronted with this situation, City Collector Debra Marcoccio responded by pointing out that Attleboro's billing is completely automated, and is not audited by human beings. She went on to defensively ask why Ms. Wilbur didn't pay the one cent the year before, when it was first due. Like anyone else who's ever been through this sort of mess, I have a pretty good idea about what happened: the 1¢ bill is either unannounced interest on the water bill, or represents fractions of pennies that have accrued on Ms. Wilbur's account, which the billing software decided to add to her latest bill. Regardless, this is the sort of thing that any human being (or even a bureaucrat) with a fully-functioning cerebral cortex could probably have handled with a minimum of fuss.
Sadie Holmes, of Altamonte Springs, poses along a wall in her neighborhood across from her house, June 25, 2008. Holmes had her home made over two years ago on 'Extreme Makeover: Home Edition,' but now could lose it if she can't pay a $29,000 county lien placed on the property after months of code violations racked up. (Hilda M. Perez/Orlando Sentinel/MCT)
Hilda M. Perez, Orlando Sentinel / MCT
'Extreme Makeover' House The Harper family home in Georgia, which was rebuilt on an episode of ABC's "Extreme Makeover" in 2005, went into foreclosure this summer after the family used the house as collateral for a $450,000 loan and couldn't meet the payments.
Michael Buckner, Getty Images
Damon Dash Foreclosure proceedings have begun against hip-hop mogul Damon Dash over unpaid mortgages on two Manhattan apartments. Eastern Savings Bank says the Roc-A-Fella Records co-founder and his wife owe more than $7 million on the properties.
Gary Gershoff, Wire Image
Former "Tonight Show" personality Ed McMahon makes "a confidential deal" to sell his Beverly Hills home after falling behind on payments. But one thing is clear. It's not Donald Trump who recently offered to buy the home.
Matt Sayles, AP
Scott Storch Hip-hop producer Scott Storch went into foreclosure in July on his $10 million Miami mansion, according to The Palm Beach Post. He also had his Ferrari Scaglietti and his prized motorcycle, a Bones Bike, repossessed.
Wilfredo Lee, AP
Vin Baker Former NBA player Vin Baker has also been stung by the wave of foreclosures sweeping the U.S. Baker's 9,300-square-foot Georgian brick colonial Durham home, which has six bedrooms, a two-lane bowling alley, basketball court, guest house and pool was auctioned for $2.5 million.
Charles Krupa, AP
Ernestine Anderson The jazz vocalist sings the National Anthem at a Seattle Seahawks game. But Jackson may not be singing now as she faces a foreclosure on her Seattle home. Public records show that she is more than $30,000 in arrears in payments and penalties.
Jonathan Ferrey, Getty Images
Adam 'Pacman' Jones The home of Cowboys cornerback Adam "Pacman" Jones will was recently put up for auction, attracting a $1.1 million offer --significantly less than the $1.4 million he owned on his home. Jones is one of the latest sports stars to run into issues with money management.
Ray Tamarra, Getty Images
The Mount, author Edith Wharton's estate in Lenox, Mass., needs to raise $6 million by the end of October to avoid foreclosure. Since February, $900,000 has been donated, but fundraisers need another $2.1 million in order to secure a pledged matching donation.
The trust overseeing Mark Twain's House and Museum in Hartford, Conn., still owes $4.9 million on a bank loan and is trying to meet its $2.9 million annual budget. The Twain House's executive director says an ambitious $19 million visitor center which opened in 2003 set the site's finances back.
Like almost everybody, I've had a few problems with automatic billing. My personal bete noir was Virginia Tech. When I was in college, I would occasionally find my account blocked because of library fines, accrued pennies, or some other incredibly minor issue. Given that my access to the dining halls, the library, my grades, and all university services depended on having my account open, these little issues often became big problems rather quickly. The final time this happened, however, I was living off campus, preparing my own meals, and generally out of the reach of the big, bad campus cash cow. Consequently, I decided to have a little fun.
First off, I sent a check to the University. I apparently owed them $6.93, but I paid them a full $7. I then proceeded to mail them increasingly nasty letters demanding repayment of my 7¢. I threatened to block their account, take them to court, and report them to various credit agencies. I was enjoying myself until the University ruined the fun by sending me a check for $7. I thought about cashing it, owing them $6.93 again, and restarting the whole mess, but decided against it. I think I still have the check lying around somewhere. One of these days, I'm going to frame it.
In the end, this was probably incredibly petty and more than a little ridiculous. It cost me five or six stamps, not to mention the time I took to craft the letters, tear-off slips, and payment envelopes. However, this was one of those situations in which the money was secondary to the thrill of revenge. For a few cents and an hour at the computer, I experienced the unbridled joy of harassing the harassers. I still remember it with a smile.
If Ms. Wilbur is so inclined, I could easily suggest a way to work out some frustration. All she needs to do is send the City of Attleboro a check for 8 cents...
Bruce Watson is a freelance writer, blogger, and all-around cheapskate. "Petty Smartass" is his middle name. Actually, it's "Wallace," but he wishes that it was "Petty Smartass"...
The Affordable Care Act put in place significant tax-related programs that impact Medicare and Medicaid, such as increased Medicare taxes on earned and unearned income for high-wage earners, and Medicaid changes that increase the number of insured individuals. Establishing whether you are affected by the ACA-imposed taxes, or are eligible for certain health programs that fall under the Centers for Medicare and Medicaid Services, is determined by filing your income tax.
There?s a fine line between looking to save money on your taxes and taking deductions that will raise eyebrows at the Internal Revenue Service. Some taxpayers are tripped up by expenses that they assume are tax deductions, but don?t qualify under IRS guidelines. Here are a dozen items that can lead to unpleasant surprises in case of an audit.
The Affordable Care Act (ACA), also referred to as Obamacare, affects how millions of Americans will prepare their taxes in the new year. The law now includes penalties for all who haven?t obtained health insurance -- and those penalties are expected to be paid at tax time. The ACA also provides tax credits to help people pay for insurance, and you can claim those credits when you file your taxes. The Internal Revenue Service (IRS) has introduced a number of tax forms to accommodate the ACA.
The Affordable Care Act, also known as Obamacare, requires most Americans to have health insurance that meets a government standard known as "minimum essential coverage," or MEC. Whether your insurance qualifies as MEC depends not on the plan itself, but on how you obtained your coverage.
In 2014 the Affordable Health Care Act, also known as Obamacare, introduced three new tax forms relevant to individuals, employers and health insurance providers. They are forms 1095-A, 1095-B and 1095-C. These forms help determine if you need to comply with the new shared responsibility payment, the fee you might have to pay if you don't have health insurance. For individuals who bought insurance through the health care marketplace, this information will help to determine whether you are able to receive an additional premium tax credit or have to pay some back.