It's tax season: Use tax-advantaged accounts to keep more of your income

Many people look for ways to reduce how much they pay in taxes each year. Health Savings Accounts provide a triple-tax advantage for qualified medical expenses. Contributions reduce taxable income, earnings grow tax-free, and withdrawals for eligible expenses are not taxed.

Photo: Leeloo The First/PEXELS

Smart financial planning starts with tax-advantaged accounts. Traditional IRAs may offer tax deductions, with taxes paid later in retirement. Regular contributions and monitoring investments can strengthen long-term savings. This can be beneficial when income decreases during retirement years.

StatePoint Media - If you’re looking for a smarter way to hold on to more of your earnings, the answer may already exist in the tax code. Certain accounts are designed to reward disciplined savers with meaningful tax breaks. When used correctly, they can serve both short-term and long-term goals. The key is knowing where to start. One way to ensure that more of your money benefits you and your future is by making strategic contributions to tax-advantaged savings accounts.

By opening and contributing to a Health Savings Account (HSA) and Individual Retirement Account (IRA), you can substantially reduce your taxable income. Not sure if these accounts are right for you? Consider these insights from Fidelity:

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HSAs

An HSA is an account that can be used to pay for qualified medical expenses, including copays, prescriptions, dental care, contacts and eyeglasses, bandages, X-rays, and a lot more. It’s “tax-advantaged” because your contributions reduce your taxable income; the money isn’t taxed while it’s in the account, even if it earns interest or investment returns; and as long as you use your HSA funds for qualified medical expenses, you won’t owe taxes when you take money out of the account. This triple-tax advantage is powerful, but it’s not the only reason why HSAs are so popular. Unlike a flexible spending account, an HSA is not “use-it-or-lose-it,” meaning it doesn’t need to be spent within a certain timeframe. If you don’t need the money in your HSA for current medical expenses, you can save and invest it until you do, and even take the account with you when you leave an employer. Just keep in mind that to open and contribute to an HSA, you’ll need to be enrolled in an HSA-eligible health plan.

IRAs

An IRA refers to a tax-advantaged account designed to help you save for retirement on your own, independent of an employer. There are several types of IRAs, but when people say “IRA” alone, they often mean a traditional IRA. That’s a type anyone with earned income can open and contribute to. Traditional IRAs allow you to save on income taxes now and pay them later in retirement, when you could be in a lower tax bracket and therefore owe less in taxes. Fidelity estimates that you may need 55% to 80% of your pre-retirement income in retirement. Because an employer-sponsored savings plan might not be enough to accumulate the savings you need due to annual contribution limits, investing through an IRA could help you save more for the future.

Before opening an IRA, check out a few different firms that offer them. Find out whether they offer helpful support and a user-friendly experience, plus whether they charge any fees or minimums. Then, once the account is open, decide how much you want to contribute and how often.

“Setting up automated contributions can make saving for retirement into a habit that requires very little effort,” said Rita Assaf, vice president, Retirement at Fidelity. “It’s also a good idea to regularly check your asset mix to see if it is still a good fit for your goals, risk tolerance and time horizon.”

For additional financial resources and insights, visit https://www.fidelity.com/learning-center.

With a smart strategy that involves directing your income into tax-advantaged accounts, you can build more wealth for future needs and wants.

TAGS: how to lower taxable income with HSA and IRA, benefits of health savings account tax advantages, traditional IRA contribution tax benefits explained, saving for retirement without employer plan options, tax efficient strategies for long term savings

A complete guide to preparing your home for sale: Inspection to staging

Simple improvements often change how buyers view an entire property, making early preparation essential for maximizing sale price. Here are some things you should know.

Selling a home starts long before the listing goes live. Careful preparation affects buyer interest and final sale price. Sellers who plan early gain control over repairs, cleaning, and organization. This approach reduces stress during the moving process.

Many homeowners underestimate how much work comes before listing. Buyers notice small issues quickly during showings. As a matter of fact, simple improvements often change how buyers view the entire property. Homes that feel organized and well-maintained attract stronger offers. When you prepare your home for sale early, the property enters the market in its best condition.

Photo: Pavel Danilyuk/PEXELS

Inspection reports are a must when selling your home. A pre-listing inspection gives you an ideal of the work you will need to do or the concessions you will have to make with an interested buyer.

Start With a Pre-Listing Home Inspection

A pre-listing inspection gives sellers useful information before buyers appear. Inspectors review systems, structure, and visible components across the property. Early findings help owners address problems before negotiations begin.

As an illustration, inspectors often uncover small plumbing leaks or roof wear. These issues may seem minor yet raise concern for buyers. Fixing them before listing prevents price reductions later. Sellers also gain time to choose contractors carefully.

Inspection reports also support honest communication with buyers. Another key point, transparency builds trust during negotiations. Buyers often feel more comfortable making offers when they understand the home's condition, or when they know they will be moving in a ready home.

Declutter With a Strategic Selling Mindset

Decluttering before listing helps buyers focus on the home itself. Personal items often distract from the property’s features. Removing extra belongings and storing your electronics creates a calmer environment during showings.

Closets and storage spaces deserve special attention. Similarly, buyers always check storage areas carefully. Overfilled closets suggest limited space. Removing many items helps those spaces appear larger and organized.

Packing early also helps the moving process later. Of course, sellers already know many items will travel to the next home. Packing them early reduces clutter throughout the house. Labeled boxes keep everything organized during the move.

Plan Your Moving Day to Avoid Last-Minute Stress

Many sellers focus only on listing preparation. However, moving logistics deserve equal attention. A clear moving plan keeps the transition smooth after you prepare your home for sale. Early planning prevents rushed packing and scheduling problems.

Some homeowners attempt doing everything in one day. This plan often creates stress and delays. Packing, cleaning, and moving rarely fit into a single day without problems. Others face the challenge of moving while closing on both houses on the same day. This situation demands precise timing and organization. Even small delays during closing can disrupt the entire moving schedule.

Temporary storage can also simplify the process. Besides, stored items reduce clutter during showings. A lighter home also supports better staging during the selling process.

Planning ahead keeps both tasks connected. Sellers who prepare your home for sale while organizing the move handle the transition with fewer surprises.

Photo: Blue Bird/PEXELS

When prepping your home for sale, take care of all the obvious marks on the walls and doors. Paint, fill cracks and holes, and repair doors to give potential buyers a good impression.

Minor Repairs That Increase Buyer Confidence

Small problems often signal poor maintenance to buyers. A dripping faucet or chipped paint may seem harmless. Yet buyers may assume larger problems exist behind the walls.

Fixing these issues improves buyer confidence immediately. Hence, minor repairs can support stronger offers. Simple fixes require little time yet improve the home's appearance.

Start with highly visible repairs throughout the property. Door handles, cabinet hinges, and wall marks deserve attention. Not to mention, squeaky doors often leave negative impressions during tours.

Improve Curb Appeal Before Buyers Arrive

Buyers form opinions before stepping inside the home. The exterior sets expectations for everything that follows. A clean and attractive entrance encourages buyers to explore further.

Start with basic outdoor maintenance tasks. Pressure washing removes dirt from siding and walkways. Fresh mulch improves the appearance of garden beds. Also, take care of your yard, trimmed bushes and trees create a tidy look. Besides, the front door often becomes a focal point. A new coat of paint refreshes the entrance quickly. Updated house numbers and a clean mailbox add subtle improvements.

How to Stage Rooms for Maximum Impact

Staging helps buyers imagine daily life in the home. Furniture placement plays a large role in that process. Rooms should highlight space, natural light, and functionality.

Start by simplifying each room’s layout. Remove oversized furniture that crowds the space. Whereas large pieces dominate small rooms, smaller arrangements allow movement and flow.

Neutral colors support staging goals as well. Bedding, curtains, and rugs should stay simple. Similarly, neutral tones appeal to many buyers. Strong colors often distract from the room itself.

Deep Cleaning That Makes Homes Feel New

Deep cleaning transforms how buyers experience a home. Dust, stains, and odors influence perception immediately. Clean homes feel better maintained and move-in ready.

Focus on details buyers often notice first. Windows, baseboards, and door frames collect dust over time. Not to mention, clean windows increase natural light inside the home.

Bathrooms and kitchens deserve extra effort during cleaning. Tile grout, sinks, and appliances should appear spotless. Nevertheless, strong chemical smells should be avoided.

Organize Important Documents for Buyers

Organizing home documents supports smooth negotiations later. Buyers often request detailed information about the property. Having documents ready prevents delays during closing.

Start by collecting appliance manuals and warranties. Buyers appreciate knowing how systems operate. Hence, these details help them feel comfortable with the purchase.

Renovation records also hold value. Receipts and contractor notes prove that upgrades happened properly. Besides, documented improvements support the home’s value.

Pricing Preparation Before Listing

Pricing strategy plays a central role in selling a home. Sellers should research comparable properties in the neighborhood. Recent sales offer helpful guidance for setting expectations.

Market demand also affects pricing decisions. Similarly, high demand often supports stronger listing prices. Low demand may require more competitive pricing strategies.

Home improvements also influence price positioning. Updated kitchens, bathrooms, and roofing add measurable value. In contrast, outdated features may reduce buyer interest.

Final Steps Before Listing Your Property

Preparing a home for sale requires careful attention across many areas. Inspections, repairs, cleaning, and staging each support a strong first impression. Buyers often respond quickly to homes that feel organized and well-maintained.

Early preparation also reduces pressure during the moving process. Tasks become manageable when spread across several weeks. As a matter of fact, sellers gain more control over decisions and timelines.

Taking time to prepare your home for sale creates clear advantages. Sellers present the property at its best. The result often includes faster sales, better offers, and less stress during the move.

how to prepare home for sale checklist, pre-listing home inspection benefits sellers, staging tips to sell house faster, minor repairs increase home value before listing

What to keep in mind when buying a land plot for your new home

Even if you plan to build your forever home, you should evaluate the land as an investment. Beyond legal and financial considerations, you should evaluate how the location fits your lifestyle.

A new house being framed on recently purchased lot

Photo: Paul Brennan/Pixabay

One of the things you want to do before buying property to build a new home is check to make sure the parcel of land connects to public utility services such as water, sewer, electricity, gas, and internet services.

by Casey Cartwright
Contributing Writer

Buying a land plot for your future home gives you freedom, flexibility, and long-term investment potential. Unlike purchasing an existing house, buying land requires you to evaluate factors that affect construction, daily living, and resale value. You must look beyond the surface appearance of the property and assess legal, financial, environmental, and infrastructure considerations before making a decision.

Understanding what to examine before closing on a parcel helps you avoid costly surprises and delays. The right preparation helps make sure that your land supports your vision and protects your investment.

Understand zoning and land use regulations

Before you commit to any property, confirm how local zoning laws classify the land. Zoning regulations determine what you can build, how large the structure can be, and how you can use the property. Some parcels allow single-family homes only, while others may restrict building size, height, or setbacks.

Contact the local planning or zoning department and ask:

What structures can you legally build?
Are there minimum square footage requirements?
Do setback rules limit where you can place your home?
Does the property sit within a protected or conservation area?

You should also check for future zoning changes or nearby development plans. A new commercial project next door may affect privacy and property value. Always verify land use restrictions before you assume you can build your desired home design.

Confirm legal access and property boundaries

You must confirm that the land offers clear and legal access. Some parcels appear accessible but lack a legally recorded access point. Without legal entry, you may face disputes with neighboring property owners.

In addition to confirming road access to the land, review recorded easements and right-of-way agreements. Easements allow others, such as utility companies or neighbors, to use a portion of your property. These agreements can limit where you build driveways, fences, or structures.

Hire a licensed surveyor to verify property boundaries. A survey prevents boundary disputes and ensures that you build within your legal limits. Never rely solely on verbal descriptions or old fencing lines to define the lot.

Evaluate utilities and infrastructure

Raw land often lacks essential utilities. Before you purchase, determine whether the property connects to public water, sewer, electricity, gas, and internet services. If utilities do not exist at the lot line, you must factor installation costs into your budget.

Ask local providers about connection fees and distance limitations. Extending power lines or water pipes can significantly increase development costs. In rural areas, you may need a well and septic system instead of public services.

Test soil conditions for septic suitability if the property does not connect to a municipal sewer system. A failed soil test can prevent you from building a home altogether. Schedule a professional percolation test before closing on the land.

Assess the topography and soil quality

The physical characteristics of the land influence construction feasibility and cost. Sloped terrain, rocky soil, or unstable ground may require additional grading, foundation reinforcement, or retaining walls.

Walk the property carefully and examine:

Elevation changes
Drainage patterns
Signs of erosion
Flood risks
Soil composition

Review local flood maps to determine whether the property sits in a floodplain. Flood-prone land may require expensive insurance and special building standards. You should also check whether the property contains wetlands, as environmental regulations may restrict development.

Review environmental and natural factors

Environmental conditions directly affect long-term livability and maintenance costs. Research the climate, weather patterns, and natural risks in the area. Wildfire zones, hurricane exposure, or earthquake risks may influence building materials and insurance premiums.

Inspect the property for nearby hazards such as unstable slopes, heavy traffic noise, or industrial sites. Consider sunlight exposure and wind direction, as these elements impact energy efficiency and outdoor comfort.

Investigate property taxes and ongoing costs

Land ownership carries ongoing financial responsibilities. Before purchasing, review the current property tax rate and ask how the county assesses vacant land versus developed property. Taxes may increase significantly after you build your home.

In addition to property taxes, consider:

Homeowners association (HOA) fees
Road maintenance contributions
Utility maintenance costs
Insurance premiums
Septic system maintenance

Some rural communities require shared maintenance fees for private roads or community wells. These costs can add up over time, so you should include them in your long-term budget planning.

Study local market trends and resale value

Even if you plan to build your forever home, you should evaluate the land as an investment. Market trends influence future resale value and neighborhood growth.

Research comparable land sales in the area. Look at price trends over the past few years and identify whether values continue to rise or remain stable. Strong school districts, job growth, and infrastructure development typically support higher property values.

You should also consider the character of the surrounding neighborhood. Consistent property maintenance and new construction indicate stability. Vacant lots with stalled projects may signal development challenges.

A local real estate professional can provide insight into demand patterns and potential appreciation. Smart research protects your financial interests.

Examine financing options and loan requirements

Financing land differs from financing an existing home. Many lenders classify land loans as higher risk, especially for undeveloped parcels. As a result, you may face higher interest rates and larger down payment requirements.

Ask lenders about:

Minimum down payment percentages
Loan term lengths
Construction-to-permanent loan options
Required appraisals
Documentation for zoning and utility access

Some lenders require you to begin construction within a certain timeframe. If you plan to hold the land before building, confirm that loan terms align with your timeline.

Prepare for additional upfront costs such as surveys, soil tests, and legal fees. A clear understanding of financing prevents last-minute complications.

Photo: Pixabay

When deciding on where to buy a land for your home, ask yourself if the community you plan to build in or near suits your lifestyle in terms of medical care, entertainment, and commute to work.

Plan for access, transportation, and daily living

Beyond legal considerations, you should evaluate how the location fits your lifestyle. Measure commute times to work, schools, grocery stores, and medical facilities. Remote land may offer privacy but increase travel time and fuel costs.

Evaluate seasonal accessibility. Some rural roads become difficult to navigate during heavy rain or snow. Reliable access affects both convenience and emergency services response times.

Think about delivery services, waste collection, and internet speed. These practical factors shape everyday comfort more than scenic views alone.

Create a realistic development budget

The purchase price represents only one portion of your total investment. You must calculate development costs before committing to the land.

Include expenses such as:

Site clearing and grading
Utility installation
Driveway construction
Permits and inspections
Architectural and engineering plans
Foundation preparation

Unexpected challenges often arise during site preparation. Set aside contingency funds to handle unforeseen costs. Financial preparation keeps your building project on schedule.

Final thoughts on choosing the right land plot

Buying a land plot for your home requires careful planning and thorough research. You must analyze zoning laws, legal access, environmental conditions, utilities, and long-term financial obligations before making a commitment. Attention to detail protects both your lifestyle goals and your investment.

When you evaluate each factor carefully and consult qualified professionals, you position yourself for a smoother building process and a more secure future home. Thoughtful preparation ensures that your chosen land truly supports the vision you have for your property.

Casey Cartwright is a passionate copyeditor highly motivated to provide compelling SEO content in the digital marketing space. Her expertise includes a vast range of industries from highly technical, consumer, and lifestyle-based, with an emphasis on attention to detail and readability.

Illinois among states where taxes and insurance add heavily to homeowner costs

Several Illinois metro areas rank among the highest in the country for taxes and insurance as a share of housing costs. Decatur, Peoria and Rockford all appeared in the top 10 of the new report.

COLUMBIA, MO - Homebuyers often focus on home prices and mortgage interest rates when calculating affordability, but a new analysis suggests two other costs are quietly pushing monthly housing payments higher: property taxes and homeowners insurance.

According to a report released March 4 by Neighbors Bank, taxes and insurance now account for an average of 21% of a homeowner’s monthly mortgage payment nationwide. The study, titled The “Hidden” Costs Causing Monthly Housing Payments To Rise, examined nearly 450 metropolitan areas and calculated typical payments using a 30-year fixed-rate mortgage at 6.59% interest.

Photo: Yan Krukau/PEXELS

Looking at buying a home? New home buyers should also pay attention to taxes and insurance in determining monthly budgets after the purchase.

Mortgage payments are commonly described using the acronym PITI — principal, interest, taxes and insurance. While principal and interest make up the core loan payment, taxes and insurance are typically collected through an escrow account and added to the monthly bill. Those costs can rise even when a homeowner’s mortgage rate stays the same.

“It’s important to look beyond the sticker price and understand how taxes and insurance will shape your monthly payment,” said Jake Vehige, president of mortgage lending at Neighbors Bank. “They’re recurring costs that need to be planned for from day one.”

The report found that in some areas, non-mortgage costs make up more than one-third of the total housing payment. In the highest-burden markets, taxes and insurance significantly increase the overall cost of homeownership.

Several Illinois communities rank among those with the largest share of taxes and insurance in monthly housing payments. The metro area around Decatur ranked second nationally, where taxes and insurance account for about 37.4% of the typical monthly payment. In that market, the average principal-and-interest payment is about $598 per month, while taxes and insurance add roughly $357, bringing the total payment to about $955.

Top 10 Highest-Burden Markets

Rank	Metro Area	T&I Share of Avg. Monthly Housing Payment	Avg. Monthly P&I	Avg. Monthly T&I	Total Avg. Monthly Payment (PITI)
1	Pensacola-Ferry Pass-Brent, Fla.	43.6 %	$1,531	$1,183	$2,714
2	Decatur, Ill.	37.4 %	$598	$357	$955
3	Massena-Ogdensburg, N.Y.	36.5 %	$690	$397	$1,088
4	Peoria, Ill.	35.7 %	$823	$458	$1,281
5	Wichita Falls, Texas	34.9 %	$863	$462	$1,324
6	Elmira, N.Y.	34.3 %	$760	$398	$1,157
7	Miami-Fort Lauderdale-West Palm Beach	34.3 %	$2,383	$1,244	$3,627
8	Corning, N.Y.	34.0 %	$818	$421	$1,239
9	Rockford, Ill.	33.9 %	$1,048	$537	$1,585
10	Pine Bluff, Ark.	33.9 %	$494	$253	$747

Two other Illinois metro areas — Peoria and Rockford — also ranked among the top 10 nationally for the share of housing payments driven by taxes and insurance. Analysts said Illinois appears frequently in the rankings largely because of higher property tax rates compared with many other states.

In contrast, some of the nation’s most expensive housing markets show a smaller share of monthly payments coming from taxes and insurance. In Honolulu, for example, those costs account for about 9% of the average monthly mortgage payment. The lower share is attributed to Hawaii’s relatively low property tax rates and stable insurance costs.

Taxes and insurance can also create surprises for homeowners over time. Many first-time buyers rely on government-backed mortgage programs that require escrow accounts. Those accounts collect property taxes and insurance premiums as part of the monthly mortgage payment.

Because those costs can change from year to year, a fixed-rate mortgage does not always mean a fixed monthly payment. Lenders conduct annual escrow reviews, adjusting the monthly payment if taxes or insurance premiums increase. If prior payments were too low to cover rising costs, borrowers may also need to pay an escrow shortfall.

Vehige said homeowners can take steps to manage the risk of rising costs, including reviewing escrow statements annually, shopping for insurance coverage and appealing property tax assessments when appropriate.

“Many homeowners assume their payment will stay the same each year, but even if your mortgage rate doesn’t change, taxes and insurance often do,” Vehige said. “Understanding those costs can help prevent surprises and keep your budget on track.”

TAGS: how property taxes affect monthly mortgage payments, homeowners insurance impact on mortgage costs, hidden costs of homeownership taxes and insurance, Illinois property taxes and housing affordability, why mortgage payments increase with escrow adjustments

How to make an older home more energy efficient

With the cost of comfort rising due to poor federal policies and the rise in artificial intelligence data centers, making your home more energy efficient is a priority for saving money and staying warm as utility costs rise.

Photo: John Cheathem/PEXELS

Energy loss often begins with small, unnoticed gaps in walls, ceilings, and foundations. Homeowners who want to lower their bills, often look for energy efficiency upgrades to reduce the cost to stay comfortable indoors. Here's tips to spend less on your heating and cooling bills.

SNS - Many homeowners want to make an older home more energy efficient without losing its original character. Older houses often waste energy through worn materials, outdated systems, and hidden air leaks. These weaknesses affect comfort and raise monthly expenses throughout the year. Drafty rooms, uneven temperatures, and rising bills often signal deeper efficiency problems. Understanding these issues creates a strong foundation for meaningful improvements. With clear planning, even historic homes can reach modern efficiency standards.

Finding the Right Professional Support

Before starting any upgrades, focus on more energy-efficient planning and find the ideal contractor. An experienced professional understands how older structures behave over time and how materials age. They know how to inspect wiring, insulation, and ventilation without damaging original features. A qualified contractor also explains which upgrades offer the best return. Their guidance helps align renovation goals with realistic budgets and timelines. Strong communication reduces misunderstandings and improves project outcomes.

Preparing Your Home Before Work Begins

Successful upgrades depend on preparation, especially when aiming for energy-efficient results. That includes clearing work zones to protect valuables and improve safety for technicians. Organized spaces allow workers to access walls, ceilings, and mechanical systems easily. Proper preparation also prevents accidental damage during construction. When the home is ready, projects move faster and more smoothly.

For homeowners relocating into an older property ahead of planned improvements, preparation often begins with preparing fragile furniture before your movers pick it up, especially when antique pieces, aged wood, or delicate finishes are involved. A smart approach means taking time to identify all fragile furniture items, cleaning each piece before you pack to avoid trapped debris, disassembling items when possible to reduce strain on joints, and using the right packing materials to protect surfaces that may already show wear. Handling these steps early helps you make sure everything's ready while renovations move forward, allowing your attention to stay on energy-efficiency upgrades rather than preventable repairs.

Understanding Where Energy Is Lost

Energy loss often begins with small, unnoticed gaps in walls, ceilings, and foundations. These openings allow heat to escape in winter and enter in summer. As a result, heating and cooling systems must work harder every day. Over time, this constant strain increases wear and energy costs. Thermal imaging and professional inspections can reveal hidden leaks. Locating these weak points helps guide improvement priorities and budget planning.

Make an Older Home More Energy Efficient: Reducing Monthly Utility Expenses

Many homeowners pursue energy efficiency upgrades to reduce their home's monthly bills over time. High energy use often reflects poor insulation, aging equipment, and uncontrolled air leaks. Small improvements like sealing gaps and upgrading lighting can lead to measurable savings within months. As waste decreases, heating and cooling systems operate more efficiently and last longer. These steady reductions in energy use create room for future home investments. Gradual improvements prevent financial strain while delivering consistent, long-term results.

Improving Wall and Attic Insulation

Insulation forms the backbone of energy performance in older homes. Thin or deteriorated materials allow temperature fluctuations throughout the day. Warm air escapes upward, while cold air enters through gaps. Modern insulation stabilizes indoor conditions throughout the year. Better thermal control also reduces strain on mechanical systems. Proper installation ensures long-term durability and comfort.

Upgrading Windows and Sealing Frames

Older windows often lack proper sealing and thermal protection. Drafts around frames create steady energy loss in every season. Condensation may also form on glass surfaces, leading to moisture issues. Installing modern units or sealing existing ones improves indoor stability. Quality caulking and weather stripping enhance performance. These changes also reduce outside noise and improve overall comfort.

Maintaining Heating and Cooling Systems

Heating and cooling systems consume a large share of household energy. Aging equipment loses efficiency through wear and outdated technology. Dust buildup, blocked vents, and worn parts reduce airflow. Routine servicing improves performance and reliability. Upgrading to efficient models further strengthens long-term savings. Well-maintained systems also last longer and break down less often.

Photo: Mikael Blomkvist/PEXELS

Preventing Long-Term Structural and Financial Damage

Ignoring repairs makes it harder to make an older home more energy efficient and increases the long-term costs of overlooking them. Water intrusion weakens insulation and framing over time. Cracks expand as moisture spreads through walls and floors. Mold growth further reduces indoor air quality. Delayed maintenance increases repair expenses. Early action protects both energy systems and structural integrity.

Improving Roof Performance and Ventilation

Roofs absorb heat and influence indoor temperatures year-round. Poor ventilation traps warm air in attic spaces. This buildup increases cooling demands during warmer months. Moisture can also collect under roofing materials. Balanced airflow protects insulation and wood framing. Proper roof performance extends the lifespan of the entire structure.

Modernizing Lighting Systems

Outdated lighting wastes electricity and produces excess heat. Incandescent bulbs convert most energy into warmth instead of light. LED bulbs consume less power and last longer. Improved lighting reduces replacement frequency and maintenance costs. Updating fixtures enhances visibility in work and living areas. These small changes add up across the home.

Choosing Energy-Saving Appliances

Older appliances often draw more power than necessary. Refrigerators, washers, and dryers run longer to complete basic tasks. Inefficient motors and outdated controls increase consumption. Energy-rated models operate more efficiently with modern sensors. Replacing outdated units lowers overall household demand. Lower energy use also reduces environmental impact.

Managing Water Heating Efficiency

Water heating represents a major share of energy use in many homes. Older tanks lose heat through weak insulation and aging components. Hot water may cool quickly between uses. Modern systems retain warmth and adjust output to demand. Tankless heaters reduce standby losses. Improved efficiency lowers both water and energy expenses.

Sealing Basements and Crawl Spaces

Basements and crawl spaces allow cold air and moisture to enter living areas. Damp conditions weaken insulation and structural supports. Mold and mildew may develop in poorly sealed spaces. Sealing these areas blocks drafts and reduces humidity. Vapor barriers and insulation improve temperature control. A stable foundation improves overall thermal performance.

Monitoring and Adjusting Energy Use

Tracking energy consumption reveals patterns and problem areas. Smart meters and monitoring tools provide real-time feedback. Monthly reviews show how upgrades affect usage. This information helps homeowners adjust habits effectively. Turning off unused devices reduces unnecessary waste. Awareness strengthens the impact of physical improvements.

Creating a Comfortable and Sustainable Home

Knowing how to make an older home more energy efficient requires steady planning, informed choices, and consistent upkeep. Each improvement reinforces comfort, lowers costs, and protects property value. Connected upgrades work together to strengthen long-term performance. Small actions build lasting results over time. Regular maintenance preserves efficiency gains. With focused effort, an older home becomes reliable, efficient, and resilient.

Federal policy shift may cause student loan borrowers to face state and federal taxes on forgiven debt

Student loan borrowers in Illinois could face federal, state ‘tax bomb’ in 2026. Illinois is among 20 states whose tax codes automatically follow federal changes, potentially taxing forgiven student loans at the state level. Borrowers should review repayment options and seek guidance.

Image: 3D Animation Production Company/Pixabay

by Sam Freeman & Medill Illinois News Bureau
Capitol News Illinois

SPRINGFIELD - For the first time in five years, certain forms of student loan forgiveness will be taxable following a change in federal tax policy this year.

This comes after a provision of the American Rescue Plan Act expired Dec. 31. That measure, signed into law in 2021 by former President Joe Biden, temporarily excluded student loan debt from federal income taxes.

And those tax implications could extend to Illinois state taxes as well unless lawmakers act.

President Donald Trump’s “One Big Beautiful Bill Act,” enacted last summer, did not make the student loan tax forgiveness provision permanent. As a result, student loans that are canceled or partially forgiven in 2026 and beyond will see taxes owed on those forgiven amounts, advocates said. These taxes could amount to as much as $10,000, depending on the borrower’s income.

This includes income-driven repayment plan-related forgiveness; some closed school discharges — where 100% of a student loan obligation is wiped out if a school closes — and private settlements. Meanwhile, some forms of loan forgiveness remain tax-free, such as public service loan forgiveness, teacher loan forgiveness, and death and disability discharge programs.

According to a report from Protect Borrowers, a nonprofit organization dedicated to eliminating the burden of student debt, two-thirds of people who receive loan cancellation under income-driven repayment plans earn less than $50,000 a year and have less than $1,000 in savings.

“A tax bomb on people with that amount of assets and that amount of income, it could be really financially devastating,” said Jennifer Zhang, a researcher for Protect Borrowers.

Illinois State Graphic A group of congressional Democrats, including U.S. Sen. Tammy Duckworth, sent a letter to Treasury Secretary and Acting IRS Commissioner Scott Bessent on Nov. 9 calling the tax reinstatement a “financial disaster for working-class Americans.”

Illinois will also tax loan forgiveness

In addition to federal taxes, some borrowers will also face a similar tax hike at the state level. Illinois is one of 20 states whose tax codes automatically conform to the federal change. This means that unless Illinois legislators decouple the conforming provision before taxes are due next year, student loan forgiveness amounts will also be taxed by the state.

“I would certainly be supportive of (decoupling),” Sen. Mike Halpin, D-Rock Island, said, although it’s currently not an issue that has reached the Illinois state legislature.

Lawmakers passed a bill in their fall veto session to decouple the state and federal tax code as it pertained to certain corporate taxes to head off a budget shortfall for the upcoming year. But it did not address student borrowing.

Other challenges facing student loan forgiveness are also expected to take effect this year:

Student loan forgiveness under Biden’s Saving on Valuable Education, or SAVE, plan has been blocked for more than a year after some Republican-led states mounted legal challenges, claiming the program is illegal. As a result, 7 million borrowers have been stuck in forbearance, which does not count toward loan forgiveness under income-driven repayment plans or the public service loan forgiveness provision.

The SAVE plan is an income-driven repayment plan for federal student loans created to lower monthly payments, limit interest from ballooning payments, and accelerate loan forgiveness.

If a proposed settlement agreement between the U.S. Department of Education and the state of Missouri is approved, the SAVE plan will end entirely. That would require borrowers to switch to another plan, like an income-based repayment plan, to qualify for loan forgiveness. This change shouldn’t result in any loss of loan forgiveness credit.

Income-based repayment currently is the only student loan repayment plan that remains preserved by the One Big Beautiful Bill. Trump’s bill removed the partial financial hardship requirement from the income-based repayment, which makes it easier for borrowers with higher incomes to enroll.

Income-based repayment is a federal student loan plan that caps monthly payments at a percentage of the borrower’s discretionary income. It is intended to benefit borrowers who have a high debt relative to their income.

The SAVE lawsuit also suspended student loan forgiveness under the Income-Contingent Repayment, or ICR, plan and Pay As You Earn, or PAYE, plan. The Department of Education agreed to resume processing student loans that had reached their 25-year or 20-year eligibility thresholds, after a lawsuit challenge.

Although loan forgiveness under ICR and PAYE is expected to resume in February, these plans will be phased out under Trump’s bill by July 2028. As with SAVE, borrowers enrolled in ICR and PAYE will need to switch to an income-based repayment plan or a new Repayment Assistance Plan, or RAP, that is supposed to launch later this year.

RAP includes lower payments for some borrowers, an interest subsidy that will prevent loans from ballooning over time, and a 30-year repayment term before a borrower can qualify for student loan forgiveness. This repayment term is longer than current IDR options.

“When people have that much of a continual financial strain, they don't build up their savings. They might not ever buy a home. They might not ever have kids,” Zhang said. “They might not ever achieve these different kinds of financial milestones.”

RAP also will require higher monthly payments for the lowest-income borrowers.

Finally, borrowers with federal Parent PLUS loans, who are typically limited to the ICR plan, also could face changes to their repayment options.

“Individuals with questions about their loans should call our Student Loan Helpline, 1-800-455-2456, which can direct struggling student borrowers to free resources about repayment options and information on avoiding default,” Illinois Attorney General Kwame Raoul said in a statement.

Borrowers can also use the Federal Student Aid website’s loan simulator to calculate monthly payments, evaluate repayment plan eligibility and choose the repayment plan that best suits their needs.

Sam Freeman is a graduate student in journalism with Northwestern University’s Medill School of Journalism, Media, Integrated Marketing Communications, and a fellow in its Medill Illinois News Bureau working in partnership with Capitol News Illinois.

Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.

TAGS: student loan forgiveness taxable Illinois, federal student loan tax policy changes, income-driven repayment forgiveness taxes, Illinois student loan tax conformity, student loan forgiveness 2026 taxes

Looking past the charm: How to evaluate that older house you want to buy

The Cold and Bold – March for America is scheduled to take place around West Side Park in Champaign. The one-day demonstration is expected to be brief.

Photo: Roger Starnes Sr/Unsplash

Older homes often attract buyers through character, layout, and established neighborhoods. Of course, charm should never outweigh careful evaluation. First-time buyers should look for practical signs that reveal how the home truly functions. Early decisions affect comfort, safety, and finances for decades.

Many older houses appear updated but hide aging systems. Besides, surface upgrades rarely fix deeper issues. Paint and fixtures can distract from costly problems below. This guide explains what buyers should look for before making a serious offer. Clear knowledge builds confidence and prevents expensive mistakes.

The Structure Beneath the Charm

Structure determines whether a home stands strong or if it needs a renovation. In contrast, visual appeal offers little protection against foundation problems. Buyers should inspect walls, floors, and ceilings for movement signs. Cracks wider than a coin deserve professional review.

Uneven floors often indicate settlement or moisture issues. Nevertheless, some movement is common in older homes. The concern lies in ongoing or uneven shifting. Basement walls, support beams, and crawl spaces reveal important clues. These areas show how the home has aged.

Moisture damage weakens the structure over time. Similarly, past water intrusion leaves stains, crumbling mortar, or warped framing. Buyers should check for musty odors and efflorescence. These signs often point to drainage or grading problems outside.

Roof Age and Drainage Performance

The roof protects every system below it. Not to mention, replacement costs strain new homeowner budgets. Buyers should confirm roof age, material, and maintenance history. Asphalt shingles age faster than metal or slate.

Drainage plays an equal role in long-term protection. As a result, poor gutter systems cause foundation and siding damage. Downspouts should extend away from the house. Soil should slope outward to prevent pooling near walls.

Roof flashing deserves close attention. Likewise, failed flashing allows water entry around chimneys and vents. Interior ceiling stains often trace back to roof weaknesses. Early detection prevents widespread damage.

Photo: Pavel Danilyuk/PEXELS

Cosmetic updates can hide costly problems. Relocation planning is an important but often overlooked part of buying an older home. Focus on hidden costs, aging systems, and long-term home performance when doing a walk-through with an agent.

Relocation is Also Important

A smooth move can influence how you feel about your new home from day one. Older properties, for example, often require extra planning. Narrow hallways make it harder to move large furniture, while tight door frames can slow down appliance delivery. Taking measurements ahead of time for entryways, staircases, and ceiling height keeps everything on track and prevents dents, scratches, or last-minute rearranging.

Many families discover that relocating without much hassle comes down to early organization and the right tools. Simple moving hacks that save time and stress include investing in sturdy packing materials so boxes don’t collapse in transit, packing room-by-room instead of mixing items, and using color-coded labels to identify where everything belongs the moment the truck opens. A dedicated first-night box with basics like toiletries, bed sheets, chargers, and snacks brings comfort when you are too tired to unpack.

Utility transfers are another often overlooked detail. Older homes may require manual meter readings or separate appointments for water, gas, and electricity setup. Confirm service activation well in advance so you don’t arrive at a cold house or a delayed internet installation. With thoughtful planning, the move feels less chaotic, and your first week in the new home becomes far more manageable.

Plumbing Systems That Reveal Hidden Costs

Plumbing upgrades often lag behind visible renovations. Of course, pipe material determines reliability and lifespan. Galvanized steel corrodes internally and reduces water pressure. Copper and modern plastics last longer and perform better.

Buyers should test faucets and toilets during inspections. Slow drainage hints at deeper blockages. Older sewer lines may crack or collapse. A camera inspection provides clarity and leverage during negotiations.

Water heaters also signal future expenses. In comparison, older units operate less efficiently. Rust, leaks, or age beyond ten years suggest replacement soon. These costs should factor into purchase decisions.

Electrical Capacity and Safety Standards

Electrical systems often reflect the home’s original era. Whereas modern homes support higher power demands, older ones may struggle. Limited amperage restricts appliance use and future upgrades. Panel size and breaker condition matter greatly.

Wiring type affects safety and insurance approval. Nevertheless, outdated systems still exist in many homes. Knob-and-tube wiring lacks grounding and poses fire risks. Aluminum wiring requires special handling to remain safe.

Outlet placement also reveals system age. Similarly, a few outlets lead to extension cord overuse. Grounded outlets protect electronics and occupants. Electrical updates improve safety and resale value.

Insulation and Energy Efficiency Gaps

Older homes often lose heat through hidden gaps. Besides, poor insulation raises utility bills year-round. Attics usually show the biggest deficiencies. Buyers should check insulation depth and coverage.

Wall insulation varies widely by construction era. In contrast, some older homes contain none at all. Infrared scans identify cold spots and air leaks. These tests guide targeted improvements after purchase.

Windows strongly affect energy performance. Likewise, single-pane glass increases heating and cooling costs. Storm windows help but rarely match modern efficiency. Buyers should budget for upgrades if comfort matters.

What First-Time Buyers Should Look For During Inspections

Standard inspections may miss age-specific issues. As a matter of fact, first-time buyers should look for inspectors experienced with older homes. These professionals recognize patterns others overlook. Their reports offer deeper insight.

Specialized inspections add another protection layer. Not to mention, sewer scopes uncover buried problems. Pest inspections reveal hidden wood damage. Radon testing also matters in older basements.

Buyers should attend inspections when possible. Meanwhile, asking questions builds understanding. Inspectors often share maintenance tips and priorities. This guidance proves valuable after closing.

Renovation Restrictions and Local Codes

Renovation plans depend on local rules. Of course, historic designations limit exterior changes. Windows, doors, and siding may require approval. Buyers should research restrictions before planning updates.

Building codes affect interior work as well. In contrast, older layouts may not meet current standards. Stair widths, ceiling heights, and egress rules matter. Bringing spaces up to code increases project costs.

Permit history reveals past work quality. Similarly, unpermitted renovations create legal and safety risks. Buyers should verify permits for major remodeling. This step prevents future complications.

Photo: Kindel Media/PEXELS

First-time buyers should look for homes that support long-term living, not short-term appeal.

Maintenance Patterns Tell a Story

Maintenance records reveal how owners treated the home. Besides, consistent care signals pride and responsibility. Regular roof, HVAC, and plumbing service reduces surprise failures. Gaps in records raise questions.

Deferred maintenance accelerates deterioration. Nevertheless, some issues remain hidden despite good care. Buyers should compare records with inspection findings. Mismatches deserve further investigation.

Exterior maintenance matters as much as interior care. Likewise, peeling paint exposes wood to rot. Failing caulk allows moisture entry. These details affect long-term durability.

Insurance and Financing Challenges

Older homes face unique insurance hurdles. Of course, outdated systems increase perceived risk. Insurers may require upgrades before issuing policies. Buyers should confirm coverage early.

Financing rules also affect purchase options. In comparison, government-backed loans impose stricter property standards. Peeling paint, handrails, and safety issues matter. Buyers should understand lender expectations.

Replacement cost coverage deserves attention. Similarly, rebuilding an older home costs more than the market value. Accurate coverage protects against underinsurance. This step safeguards long-term security.

Making Confident Choices With Clear Priorities

Older homes reward informed and patient buyers. With careful planning, first-time buyers should look for solid systems over surface beauty. Structure, utilities, and efficiency deserve top priority. Style can follow later. Knowledge reduces fear and regret.

In summary, first-time buyers should look for homes that support long-term living, not short-term appeal. Clear evaluation leads to smarter offers. Confidence grows when buyers know what truly matters.

Stop spending money at the coffee shop: Tips and tricks to save

If you spend five dollars a day on a latte, five days a week, you spend $1,300 a year. Browse tips to save yourself money and still have a great cup of Joe in the morning.

Photo: Vitaly Gariev/Unsplash

by Casey Cartwright
Contributing Writer

You likely start your morning with a familiar ritual. You leave the house, head to the local cafe, wait in a line that wraps around the corner, and tap your card for a drink that costs upwards of five or six dollars. It feels insignificant in the moment. It’s just one cup, after all. But that daily transaction drains your bank account faster than almost any other small habit. When you look at the monthly aggregate, that innocent morning routine transforms into a car payment or a significant chunk of a mortgage.

Self-employed and house hunting? Here’s tips on how to get your mortgage

Self-employed professionals can qualify for a mortgage, but the process differs from traditional borrowers. Proper documentation, such as tax returns and profit/loss statements, is key.

Photo: Kraken Images/Unsplash

StatePoint - If you’re self-employed or own a business, you may be wondering if it’s possible to get a mortgage.

The short answer is yes, you can, but the process will look different. You’ll need to provide documentation verifying your employment and lenders will be analyzing your financial situation and the financial situation of your business to see how likely you are to pay back your loans in a timely manner.

To help you put your best foot forward, Wells Fargo is offering guidance on navigating the home loan process.

What does it mean to be self-employed?

Typically, lenders consider an applicant self-employed if they meet any of the following:

They own at least 25% of a business
The ownership of a business is their major source of income
They complete a 1099 tax form during tax filing instead of a W-2
They’re an entrepreneur or sole proprietor whose income is filed under Schedule C of their tax returns
They’re an independent contractor or service provider

If you fit into these categories, you’ll also need to show lenders verified employment records or proof of self-employment during the past two years. Lenders are ideally looking for your business to have been active for at least 12 consecutive months. They review the overall health of the business, looking at both net income and expenses.

What employment documentation is needed?

When lenders review your application, they’re analyzing items like how stable your income is, if your business has strong finances, and what the future may look like for you and your business. Any of the following forms of documentation can help lenders show proof of your employee verification:

Business licenses and/or DBA certificates
Proof of correspondence with CPAs and/or clients
Proof of business insurance
Profit/loss statements or balance sheets reflecting your business’s performance
Lenders’ requirements vary. Check with yours for what will be required for your situation.

What tax return requirements are needed?

Personal tax returns under IRS Form 1040 include various schedules. Commonly used schedules are:

Schedule B (Form 1040) – Interest and ordinary dividends
Schedule C (Form 1040) – Profit or Loss from Business (Sole proprietorship)
Schedule D (Form 1040) – Capital Gains and Losses
Schedule E (Form 1040) – Supplemental Income and Loss
Schedule F (Form 1040) – Profit or Loss from Farming

For business tax returns, a business may choose to report taxable income either on a calendar year or fiscal year basis. Commonly used forms include:

IRS Form 1065 – U.S. Return of Partnership Income
IRS Form 1120S – U.S. Income Tax Return for an S Corporation
IRS Form 1120 – U.S. Corporation Income Tax Return

What factors show the strength of your borrowing ability?

Having a favorable debt-to-income ratio and credit score. A strong credit history shows lenders your ability to repay debts and utilize credit responsibly.

If you are self-employed, there are methods available to help make your goal of homeownership a reality

Staying organized. Keep expenses separate if you have multiple income sources, and separate business and personal accounts so that lenders can more easily tell which assets are which.

Having additional support, especially for closing. Certain factors may lower your risk for lenders, like utilizing a co-signer or borrower or paying a higher-percentage down payment than what’s required.

What’s next?

If you are self-employed, there are methods available to help make your goal of homeownership a reality. For example, eligible self-employed borrowers with Wells Fargo may have access to a variety of loans, such as VA or FHA loans or Wells Fargo products like Dream. Plan. Home. and the Homebuyer Access grant. Information can be found online about the eligibility requirements and personal tax implications of these products.

Talk to a home mortgage consultant to learn more about what your mortgage process may look like. Also, check out Wells Fargo’s home lending portal for personalized rate quote tools and for its content library featuring helpful articles. These can be found at https://www.wellsfargo.com.

“While self-employment makes obtaining a mortgage a bit more complex, your lender will walk you through the process, step by step,” says Rulon Washington, mortgage sustainability, Wells Fargo.

Tags: self-employed mortgage process, Wells Fargo home loan guide, mortgage approval for business owners, freelance home loan requirements, entrepreneur home financing tips