Current Events in December 2016

Many students heading for college will be rushing to get their applications in next month ahead of deadlines, but they should also be thinking about financial aid at the same time.

This is the first year that aid requests are being considered three months earlier than in the past, and since aid is dispensed on a first-come, first-served basis, if you wait too long you could get left out.

To avoid missing out, Paula Craw—director of outreach and financial literacy for ECMC—is advising families to take advantage of the holiday lull to file their aid forms – known in education jargon as the FAFSA Form – without delay.

Craw says there are five things families should know to improve their chances of getting financial aid.

Procrastination is costly

Colleges and universities tend to hand out aid to the first students who apply for it. They don't hold it back since they don't know how many applications they will receive. With the earlier start to the application season, the funds will likely go sooner than in years past.

Craw cites one survey of colleges showing they've already received 32% of the FAFSA forms filed during all of last year.

Don't make assumptions

Families often make a big mistake by assuming they are too well off to qualify for financial aid. That's not always how it works, and many middle and even upper-middle income families get college aid each year.

There are a number of different factors that determine eligibility, including assets and number of household members currently attending college. You might not qualify for federal aid, but a lot of colleges rely on the FAFSA Form when they hand out their own scholarships.

You don't have to be class valedictorian

If you're applying to college you should have good grades, but they don't have to be outstanding. Most of the federal and state college aid packages focus more on need than merit.

Merit is certainly a powerful factor when it's on your side, but remember that in most cases you only need to maintain a “satisfactory” GPA to continue receiving aid dollars.

Don't be scared by the sticker price

Make no mistake, college is expensive, but don't let a college's posted tuition rate scare you off. Just like a car dealer, colleges will make a deal, putting together financial aid packages that can, in some cases, drastically lower the actual tuition cost.

Don't pass up the college of your choice until you can figure out what it will really cost.

It's an annual process

If you're a returning college student, don't assume last year's FAFSA Form will cover you this year. It doesn't automatically renew – you have to fill it out each year.

But to simplify the process, if you submitted the form last year you have the option of filling out a Renewal FAFSA, in which most of the questions are answered with last year's information.

Consumers often think that in order for health food to actually be healthy, it must cost an arm and a leg. But according to new research from Ohio State University, we’re being tricked into thinking that healthy food has to be expensive.

Lead researcher Dr. Rebecca Reczek says this common misconception may lead some budget-conscious shoppers to veer away from healthy eating.

"It’s concerning. The findings suggest that price of food alone can impact our perceptions of what is healthy and even what health issues we should be concerned about," Reczek said in a statement.

"People don’t just believe that healthy means more expensive -- they’re making choices based on that belief."

Healthy equals expensive?

Reczek and her colleagues conducted five different studies that analyzed participants’ perceptions of the relationship between healthy foods and price. They found that people often think higher-priced food is healthier, even when there is no evidence to support this assumption.

In one experiment, participants were asked to sample a new type of protein bar that was being touted as the “Healthiest Protein Bar on the Planet.” Participants were told that the protein bar would compete against other products that averaged $2 per bar.

This protein bar, however, would only cost 99 cents. The researchers found that this low price tag inspired skepticism among participants.

"People just couldn’t believe that the ‘healthiest protein bar on the planet’ would cost less than the average bar," Reczek said. "They had to read more to convince themselves this was true. They were much more willing to accept that the healthy bar would cost twice as much as average."

Know what constitutes “healthy”

Marketing is likely to blame for our assumption that expensive-equals-healthy, says Reczek. One example of the impact of marketing is the “Whole Paycheck” nickname people have given to Whole Foods -- a chain that calls itself “America’s Healthiest Grocery Store.”  

What can consumers to do combat their tendency to think that food must be expensive in order to be healthy? Reczek suggests recognizing that you may have this bias and trying to overcome it by looking for objective evidence.

“It makes it easier for us when we’re shopping to use this lay theory, and just assume we’re getting something healthier when we pay more. But we don’t have to be led astray,” she said.

“We can compare nutrition labels and we can do research before we go to the grocery store. We can use facts rather than our intuition.”

The study has been published online in the Journal of Consumer Research.

It's that time of year. Out with the old, in with the new. For consumers, what does 2017 hold in store?

At this time last year, prognosticators said 2016 would be the year of wearable technology. And it pretty much was. For a while there it seemed everyone was wearing a Fitbit and counting steps.

Now however, as the year draws to a close, wearable technology is out. So, what's in?

Writing in AdWeek, Marian Salzman, CEO of Havas PR North America, predicts 2017 will be marked by consumers' renewed demand for more privacy and simplicity in their lives.

“More than ever, people recognize that everything from personal information to high-level data is an open book for hackers backed by foreign powers and bad actors,” Salzman writes. “Expect the demand for greater privacy to grow, much to the benefit of brands, businesses and even politicians that get it and help facilitate it.”

That could even translate into new Millennial parents getting off the grid and banning mothers and mothers-in-law from posting baby pictures on Facebook.

Craving simplicity more than actually achieving it

Consumers may buy fewer things in 2017 as Millennials' minimalist philosophy gains momentum. Books like Marie Kondo's “Life-Changing Magic of Tidying Up” may prompt consumers to clean out closets and pare down to life's essentials. On the other hand, Salzman suggests more consumers may crave the idea of simplicity than actually adopt it.

We might be seeing the leading edge of this trend during the holiday shopping season, as some retailers have not been all that enthusiastic about sales so far. Whether that's a product of consumers switching more of their purchases to online retailers like Amazon or spending less money on “things” and more on “experiences” remains to be seen.

Salzman also sees gender roles becoming even more confusing in 2017, as women continue to redefine feminism and men become even more uncertain about what is expected of them. That could well translate into some hilarious men's fashion.

One trend of 2016 – and 2014 and 2015 for that matter – is expected to grow in 2017: consumers will become even more dependent on their smartphones.

Salzman predicts what she calls more e-tail-retail mash-ups. When you walk into a store, don't be surprised if the store has beacons to deliver special deals and promotions straight to your mobile device.

Ford Motor Company is recalling 35 model year 2017 Ford Fusions manufactured September 27, 2016, to September 28, 2016.

The left rear seat backs pivot pins may have been improperly welded. During a crash, the improper welds may fail, allowing any stowed luggage to move into the passenger compartment, increasing the risk of injury.

What to do

Ford will notify owners, and dealers will replace the left hand, second row seat back frame, free of charge. The recall is expected to begin January 9, 2017.

Owners may contact Ford customer service at 1-866-436-7332. Ford's number for this recall is 16S43.

Volkswagen has encountered another hefty toll on the dirty diesel highway, agreeing to pay $1 billion to fix or buy back about 80,000 VW, Audi, and Porsche vehicles equipped with 3.0-liter TDI diesel engines.

The agreement settles suits brought by federal and California regulators. So far, VW has tossed about $17.5 billion into the coin basket and it still faces billions of dollars in fines and expenses as it tries to settle state and federal damage claims and criminal investigations.

Besides the buybacks, VW will help fund electric vehicle programs in California. Volkswagen's U.S. chief, Hinrick Woebcken, said it was "an important step forward in our efforts to make things right for our customers."

The latest settlement was announced Tuesday at a status conference by U.S. District Judge Charles Breyer in San Francisco. Breyer last year signed off on a $15 billion settlement under which VW buys back or tries to fix about 475,000 cars with 2.0-liter diesel engines.

“We are pleased to be moving forward on an agreement in principle to compensate consumers who purchased affected Volkswagen and Audi 3.0 liter vehicles and look forward to resolving the final details," said Federal Trade Commission Chairwoman Edith Ramirez in a prepared statement. "The FTC, with its partners, secured $10 billion in compensation for the vast majority of consumers harmed by Volkswagen’s deceptive advertising earlier this year, and today’s agreement will provide redress for a smaller but no less important group of consumers who were not part of the original settlement."

What to do

Details of the latest settlement have not yet been released. Owners of the affected vehicles should wait until the court approves a final settlement. Vehicle owners and lessees can also obtain information about their options at: www.VWCourtSettlement.com and www.AudiCourtSettlement.com.

“As reported today by Judge Breyer, we have reached an agreement-in-principle with Volkswagen on substantial aspects of relief for 3.0-liter TDI Generation 1 and Generation 2 class members, and are working to resolve remaining issues. We will have no further comment, as the Court has instructed the parties that its confidentiality order still applies,” said Elizabeth Cabraser, court-appointed Lead Counsel for the Plaintiffs’ Steering Committee in an emailed statement.

Earlier this week, VW agreed to pay about C$2.1 billion to buy back polluting VWs in Canada. VW said today that German regulators had approved the company's plan to fix VW, Audi, Skoda and Seat cars sold across the European Union, Automotive News reported.

In yet another development, Robert Bosch GmbH, the company that produced the software used in the polluting diesels, has reportedly agreed to pay more than $300 million to settle a class action lawsuit filed by U.S. diesel owners, according to a Reuters report. 

Consumers who want to lose weight or just control their blood sugar may often be plagued by decisions on what they should be eating or drinking at any given time. When it comes to certain beverages, the decision becomes even trickier.

Some people believe that indulging in a beverage with artificial sweeteners can help reduce appetite and keep them from overeating at their next meal. Others say that choosing a drink with natural or non-nutritive sweeteners (NNS) is better because it cuts down on overall sugar consumption.

So, which option is actually better for you? One study suggests that arguing for one over the other is a moot point in the short-term. Researchers from the Agency for Science, Technology and Research (A*STAR) in Singapore tested four beverages and found that daily energy intake, glucose levels, and insulin levels the blood was the same no matter what. The reason: what calories we avoid by drinking certain beverages is made up by the foods we eat throughout the day.

Energy intake is initially the same

The researchers set out to test four different kinds of beverages for their short-term study: one containing sucrose (sugar), one containing aspartame (an NNS), one made with a plant-derived NNS (Stevia), and one made with monk fruit (Mogroside V).

Thirty healthy male participants were asked to randomly consume one of the four beverages on each day of the trial period, while adhering to a similar daily schedule; each person woke each day and ate a standardized breakfast, drank one test beverage at mid-morning, and ate a lunchtime meal where they were asked to eat until comfortably full and write out a food diary.

After each round, the researchers recorded participants’ blood glucose and insulin levels. Lead author Siew Ling Tey said that the results were “surprising” because the amount of total daily energy intake was the same across all four beverages, meaning that participants consumed the same number of calories regardless of what they drank.

Short-term vs. long-term weight loss

Tey attributes this to participants reducing or increasing meal intake depending on the beverage they consumed earlier. Those that drank the sucrose-sweetened drink tended to reduce the amount of food they ate at lunch, while those who drank an NNS-sweetened beverage tended to eat more at meals.

“The energy ‘saved’ from replacing sugar with non-nutritive sweetener was fully compensated for at subsequent meals in the current study, hence no difference in total daily energy intake was found between the four treatments,” said Tey.

However, the researchers point out that longer-term studies have found that using NNS sweeteners for significant periods of time eventually reduces overall energy intake and body weight. The takeaway, then, may be that quick weight loss is not decided by the type of sweetened beverage we consume, but it should be a consideration when making a long-term diet plan.

The full study has been published in the International Journal of Obesity.

In a change of heart, the National Highway Traffic Safety Administration (NHTSA) has agreed to push back the date that it will start imposing penalties on carmakers for failing to meet new fuel economy standards.

In response to pleas from several automotive companies and their advocacy groups, the government agency has agreed to hold the 2019 models to the new standard.

NHTSA said it is simply bowing to the reality that carmakers design their products well in advance. Jack Nerad, executive market analyst for Kelley Blue Book, says it was the right move.

“In a month of political posturing by outgoing and incoming administrations, this action by the National Highway Traffic Safety Administration adds a needed dose of reality to the conversation around fuel economy and emissions,” Nerad said in an email to ConsumerAffairs.

By delaying the penalties until the 2019 model year, Nerad says the agency is giving the auto industry some “much-needed breathing room” in their efforts to meet standards that are made more difficult to reach by the fact that fuel is reasonably inexpensive and expected to stay that way for at least a few years to come.

Low gas prices equal lower mileage ratings

Automakers have discovered that it is much harder to sell smaller, more fuel-efficient cars when gasoline prices are barely over $2 a gallon. Instead, consumers have been buying less-efficient trucks and SUVs.

An automaker's fuel economy rating is based on the cumulative mileage rating of its entire fleet. The more trucks and SUVs a company sells, the lower its rating.

As recently as August, NHTSA and the Environmental Protection Agency (EPA) jointly finalized fuel economy and pollution standards, sticking with the original deadline.

In extending its deadline, NHTSA also granted a request by carmakers for a way to clear up discrepancies between the two different mandates administered by the two separate government agencies.

Washington State Attorney General Bob Ferguson has filed a report against a man who allegedly carried out a scheme in which he posed as a woman and claimed to run a Seattle talent agency that could connect women to high-paying jobs in the adult entertainment industry.

In fact, says Ferguson, Michael-Jon Matthew “Matt” Hickey, did little more than deceive his victims into posing for nude photos and having sex with him.

“This is one of the most egregious scams I’ve seen as Attorney General,” Ferguson said. “Beyond the monetary damage his victims suffered pursuing the defendant’s fictional job opportunities, they endured emotional trauma and unconscionable loss of privacy through his deception.”

Hickey posed as a woman named Deja Stwalley, contacting women via social media sites and claiming to run a “woman-owned” talent recruiting company called New Seattle Talent. Instead, Hickey allegedly convinced his victims to pose for nude photos and have sex with him as part of a phony “audition” process.

Facebook profile

Beyond the Stwalley profile, which was deliberately cultivated with more than 1,000 friends, Hickey further created a veil of legitimacy with fake business websites, email addresses, and a Google Voice number with a Las Vegas area code.

Hickey identified young women between the ages of 17 and 25 on Facebook, contacting them through Stwalley’s profile and presenting them with an opportunity to audition for a local indie/alternative adult film studio. Stwalley assured many women that they “TOTALLY have the look they’re going for” and could earn anywhere from $1,200 to $3,500 a day. To be considered for these upcoming opportunities, all they needed to do was “audition with one of our specially chosen ‘hunks’.”

When the women showed up for their "auditions," Hickey identified himself as Stwalley's photographer, shooting photos that were supposedly “for the purposes of scouting proofs and reference material for employment only.”

In fact, Hickey used these photos for his own purposes, and to this day, the photos still appear online, Ferguson said. 

Finally, prospective actresses auditioned by having sex with Hickey, Ferguson said. “Stwalley” told women that the sex was an “attitude test” necessary to secure jobs. Stwalley explained that Hickey’s written review of each woman’s sexual performance would be included in her talent portfolio.

In reality, Hickey never made any effort to find work for his victims, and he had no contacts or experience in the adult entertainment industry.

Phony profile

Hickey also created a second fake profile named Chrissy Baaten to serve as an endorsement of Stwalley and her business. That profile was registered with the email address fakegirl@matthickey.com, the attorney general said.

The report asks the court to order Hickey to stop his deceptive practices, provide restitution to victims, and impose civil penalties of up to $2,000 per violation. Each unfair or deceptive act Hickey committed in furtherance of his “business” could constitute a separate Consumer Protection Act violation.

You may laugh like a bowlful of Jello when you read this, but a new study finds that eating a gelatin supplement and adding a burst of intensive exercise can help build stronger ligaments, tendons, and bones.

The study was conducted by Keith Baar's Functional Molecular Biology Laboratory at the UC Davis College of Biological Sciences and the Australian Institute of Sport and is published in the January issue of the American Journal of Clinical Nutrition.

Injuries to connective tissue and bones are common in both athletes and the elderly, and often interfere with peoples' ability (and enthusiasm) for exercise, whether they are an elite athlete or just trying to lose weight and maintain fitness and flexibility. Therefore, researchers went looking for steps that can prevent injury and enhance recovery.

Now, it's hard to assess the direct effect of a supplement on tissues without opening up someone's knee. But Baar's laboratory has been developing techniques to grow artificial ligaments in the laboratory. They used their lab-dish ligaments as a stand-in for the real thing.

Gelatin, Vitamin C, exercise

The study enrolled eight healthy young men in a trial of a gelatin supplement enhanced with vitamin C. The volunteers drank the supplement and had blood taken, and after one hour performed a short (five-minute) bout of high-impact exercise (skipping).

The researchers tested the blood for amino acids that could build up the collagen protein that composes tendons, ligaments, and bones. They also tested blood samples for their effect on Baar's lab-grown ligaments at UC Davis.

The results showed that the gelatin supplement increased blood levels of amino acids and markers linked to collagen synthesis and improved the mechanics of the engineered lab-grown ligaments.

"These data suggest that adding gelatin and vitamin C to an intermittent exercise program could play a beneficial role in injury prevention and tissue repair," the researchers wrote.

Gasoline prices are still relatively low but are rising nationwide, at a time when they are normally headed lower.

This week, prices in the Midwest have moved sharply higher, outpacing the increases in the rest of the country. In fact, some of the nation's most expensive states for gasoline have actually seen prices at the pump go down.

The AAA Fuel Gauge Survey shows the national average price for self-serve regular is $2.25 a gallon, up only three cents in the last week but 12 cents more than a month ago. Last year at this time, the national average price was just under $2 a gallon.

Sharp rise in the Midwest

In the Midwest, Michigan is seeing the largest increase in prices at the pump, with the statewide average rising nine cents a gallon, to $2.38, since yesterday. Patrick DeHaan, senior petroleum analyst at Gasbuddy, Tweeted that a plunge in temperatures caused problems at the Exxon Mobil refinery near Joliet, Ill., sending spot gasoline prices higher in the region, particularly in Chicago.

The current statewide average price of gasoline in Illinois is $2.36 a gallon, up nine cents from a week ago.

As for the rest of the country, the rising price of oil is mostly responsible for the unseasonable rise in prices at the pump. There is still a glut of oil on the world market, but AAA reports oil prices are rising on speculators' expectation that OPEC's recent agreement curtailing production will reduce supplies in the future.

Falling prices on the West Coast

Motorists on the West Coast still pay some of the highest fuel prices in the nation. Hawaii, which is always the most expensive, leads at $2.95 a gallon. But elsewhere, western consumers have seen prices actually come down in recent days.

Motorists in Idaho are paying 18 cents a gallon less this week while prices have dropped eight cents a gallon in Nevada.

One reason for this is a surge in West Coast refinery output. The Energy Information Administration reports gasoline production in the region reached a one-month high of 1.6 million barrels a day, and inventories remain at a 15-week high.

The nation's cheapest fuel is still found in the South and Southeast. Arkansas, Oklahoma, South Carolina, Mississippi, Texas, Alabama, and Tennessee all have statewide averages of $2.05 a gallon or less.

Illness doesn't take just a toll on health, though that understandably is the primary focus.

There is also a financial toll to getting sick, including a loss of income and expensive medications, which may not be fully – or even partially – covered by insurance or financial aid programs.

Chronic diseases are probably the most expensive and, of these, cancer is in a class by itself. Researchers at an international medical conference in Malaysia have presented findings showing that cancer's financial toll is not limited to the United States, but even to countries that provide free health care.

The study determined that more than half of cancer survivors spend at least a third of their yearly income on treatment and associated costs. They are often required to pay for cancer drugs that are not funded by the government.

A global problem

While the study results were based on the situation in Malaysia, health officials attending the conference said it is common throughout the world. Whatever kind of health care system a country has, citizens who get cancer face severe financial hardships, what the Malaysian researchers called “financial toxicity.”

"The loss of work, a carer's income and early retirement can all contribute to the financial burden on the household," said lead author Anupriya Agarwal, a cancer specialist from Sydney, Australia. “Our study aims to provide insight into these costs and assist policymakers in finding ways of reducing this burden on patients."

Very expensive drugs

Part of the expense lies in the cost of the drugs that treat cancer. It has been well-documented that some drug companies have significantly raised the price of older cancer treatment drugs without making any improvements to them. But new and effective cancer drugs are even more expensive.

Last year Drugwatch.com reported that a new Bristol Myers Squibb cancer drug that was shown to be highly effective against melanoma will cost $141,000 for the first 12 weeks of treatment and $256,000 for a year of treatment.

The American Cancer Society says patients are generally hit with costs for doctor visits, lab tests, clinic visits for treatment, imaging tests, radiation treatments, drug costs, hospital stays, surgery and home care. Insurance plans might not cover all of these costs.

To help patients plan, the American Cancer Society offers these tips.

U.S. consumers have expressed their fair share of outrage over Volkswagen’s emissions scandal. Since last September, when news first broke on the defeat devices, the company has faced a barrage of litigation from all sides.

In October, a court approved the company’s $15 billion settlement in the U.S. that covered consumers who bought or leased Volkswagen or Audi 2.0-liter TDI “clean diesel” cars. While the U.S. is obviously not the only country that Volkswagen must worry about when it comes to making reparations, the company made progress by recently reaching an agreement with our neighbors to the north.

Reuters reports that Volkswagen has agreed to a C$2.1 billion agreement with Canadian diesel owners. The deal, which was struck on Monday, will buy back approximately 105,000 polluting diesel vehicles in the country.

Additionally, Volkswagen will pay a C$15 million civil administrative monetary penalty connected to the buyback. Approval hearings for the full deal are scheduled to be held in two Canadian courts in March. Reports suggest that most owners of affected vehicles should receive anywhere from C$5,100 to C$5,950 in compensation on top of the estimated value of their vehicle if they choose to turn it in.

“Volkswagen’s primary goal has always been to ensure our Canadian customers are treated fairly, and we believe that this proposed resolution achieves this aim,” said Maria Strenstroem, CEO and President of Volkswagen Group Canada.

Volkswagen is expected to announce a deal in the near future that also addresses 80,000 polluting 3.0-liter vehicles in the U.S., with experts saying that the company may incur an additional $200 million in fines based on the estimated amount of diesel pollution. That’s a small drop in the bucket, though, considering that the company may face billions in fines going forward if it is found guilty in federal and state investigations. 

If you need a kidney transplant, you have to wait for a donor who has a healthy organ and is a good match.

Oh yeah, one other thing. The donor needs to be a certain age. Currently, organs from donors older than 65 are often turned down and are only accepted on a case-by-case basis.

But now a new study suggests these age limits on donors prevent life-saving kidneys from getting to patients who need them. Writing in the Clinical Journal of the American Society of Nephrology, researchers argue that even kidneys from 80 year-old donors can function for years.

The researchers say kidneys from older people are routinely rejected because of age. But with a current shortage of available organs, they say it's time to rethink that age limit.

The study, conducted in Italy, examined information on more than 600 kidney transplants in which the donor was beyond the usual age cut-off. Some were 60 years-old or older, while others were between the ages of 50 and 59 but had certain risk factors.

Comparable survival rates

They performed a follow-up nearly five years later and found the survival rates were comparable among all age groups, even those over 80. However, some of the patients that received the oldest kidneys had undergone second transplants.

“The results of this study support the use of extended criteria donors, even donors older than 80 years, but they have to be accurately selected and managed with dedicated protocols,” the authors write.

A kidney transplant is an option when a patient's kidneys fail. The other option is dialysis. The National Kidney Foundation says patients often opt for the transplant because they feel it affords them greater freedom and quality of life.

Patients receiving a transplanted kidney may receive one from a deceased donor or from a family member, since it is possible to survive with a single kidney.

The National Kidney Foundation says the chances a transplanted kidney will function properly in the recipient's body are high – between 89% and 95%. It says success rates have improved in recent years.

While the deadline for filing your 2016 federal income return is still several months off, there are some things you should be doing now in preparation.

The Internal Revenue Service (IRS) notes that for most of us, December 31 is the last day to take actions that will affect our tax returns.

What to do

• Charitable contributions are deductible in the year made. Donations charged to a credit card before the end of 2016 count for the 2016 tax year, even if the bill isn’t paid until 2017. Checks to a charity count for 2016 as long as they are mailed by the last day of the year.
• If you're over age 70 ½ you are generally required to receive payments from your IRAs and workplace retirement plans by the end of the year. However, a special rule allows those who reached 70 ½ in 2016 to wait until April 1, 2017 to receive them.
• Most workplace retirement account contributions should be made by the end of the year, but taxpayers can make 2016 IRA contributions until April 18, 2017. For 2016, the limit for a 401(k) is $18,000. For traditional and Roth IRAs, the limit is $6,500 if age 50 or older and up to $15,500 for a Simple IRA for age 50 or older.
• Taxpayers who have moved should tell the U.S. Postal Service, their employers, and the IRS. To notify the IRS, mail IRS Form 8822, Change of Address, to the address listed on the form’s instructions. Taxpayers who buy health insurance through the Health Insurance Marketplace should also notify the Marketplace when they move out of the area covered by their current Marketplace plan.
• If you changed your name due to marriage or divorce, notify the Social Security Administration (SSA) so the new name will match IRS and SSA records. Also notify the SSA if a dependent’s name changed. A mismatch between the name shown on your tax return and the SSA records can cause problems in the processing of your return and may even delay your refund.
• Starting January 1, 2017, any Individual Taxpayer Identification Number (ITIN) not used at least once on a tax return in the past three years will no longer be valid for use on a return. In addition, an ITIN with middle digits 78 or 79 will also expire on Jan. 1. Those with expiring ITINs who need to file a return in 2017 must renew their ITIN. Affected ITIN holders can avoid delays by starting the renewal process now.
• Be sure to allow seven weeks from January 1, 2017, or the mailing date of the Form W-7, whichever is later, for the IRS to notify you of your ITIN application status -- nine to 11 weeks if you wait to submit Form W-7 during the peak filing season, or send it from overseas. Those who fail to renew before filing a return could face a delayed refund and may be ineligible for some important tax credits. For more information, including answers to frequently-asked questions, visit the ITIN information page on IRS.gov.
• Keeping copies of tax returns is important as the IRS makes changes to protect taxpayers and authenticate their identity. Beginning in 2017, taxpayers using a software product for the first time may need their Adjusted Gross Income amount from a prior tax return to verify their identity. Taxpayers can learn more about how to verify their identity and electronically sign their tax return at Validating Your Electronically Filed Tax Return.

If more consumers doing last minute Christmas shopping are paying with cash, it could mean they are trying to stick to their budget in the final shopping frenzy.

Or, it could be a defensive move, an effort to prevent getting caught up in a retailer's data breach.

Thales, an IT and cybersecurity firm, reports most consumers would change their shopping behavior in some ways if they knew a particular retailer had suffered a system hack. While 20% of consumers in a Thales survey said they would avoid shopping at the store, the majority – 55% – said they would continue shopping at the retailer but would pay using cash.

The return to old fashioned currency bucks the recent trend of electronic payments that has caused some to speculate on the eventual demise of cash. But the Thales survey makes clear that consumers view cash as a firewall against their data being compromised.

Still using plastic

That's not to say that consumers have abandoned electronic payments. Far from it. The survey found that more than 90% of holiday shoppers will use a credit card, debit card, or mobile wallet to pay for at least some of their purchases.

And while mobile wallet use is on the rise, it has a long way to go to catch up with plastic, and even cash. Only 16% of shoppers said they planned to pay with their smartphones this holiday season.

In a promising sign for consumers' financial health, the survey found more shoppers plan to use debit cards and cash over credit cards. Since debit card purchases come directly out of a consumer's bank account, it suggests there could be less of a shopping hangover when credit card bills arrive in January.

Cash is still an important tool

Cash might not be king, but Jose Diaz, director of payment strategy at Thales e-Security, says it remains an important tool for consumers, not only for budgeting but in protecting against theft.

"These survey results offer a stark reminder that a serious data breach could stop many consumers from shopping at a merchant's store or at the very least move them back to cash payments," Diaz said.

As for the future, Diaz predicts greater use of mobile for both browsing and buying during the holidays. In the next five years, he also sees a sharp rise in the use of mobile wallets.

U.S. consumers spent $457 billion on prescription drugs in 2015, as the cost of medicine became one of the top consumer issues.

The issue isn't going away, as the price of drugs rises each year, much faster than the rate of inflation. Researchers at Texas A&M have explored the reasons.

“Brand name drugs, due to the high cost of their development, start out expensive and then tend to go up in price every year,” said Lixian Zhong, PhD, assistant professor of pharmaceutical sciences at the Texas A&M. “Combine this with other factors affecting the industry, and you have ballooning prices.”

Those other factors include a limited time to reap the biggest profits. Once a drug goes on the market, its manufacturer has a patent giving it exclusive rights for a period of years. Once the patent expires, the drug becomes a “generic,” meaning other manufacturers can make versions of it.

Specialized drugs are more expensive

Another factor is the size of the market for the drug. The more specialized the drug, the more expensive it is.

“The most expensive drugs tend to treat orphan diseases, those with a patient population of less than 200,000,” Zhong said.

Drugs that treat complex, chronic conditions are also very expensive. And if a drug is very effective, it is usually very expensive. Zhong says one particular drug that treats hepatitis C has a higher cure rate than competing drugs and fewer side effects. As a result, it also costs more.

Then there are new drugs that have been developed to treat cancer, rheumatoid arthritis, multiple sclerosis, and other diseases. These easily cost more than $10,000 a year, Zhong said.

“We cannot look at this problem without looking at the whole health care system, which is fragmented in the United States with many different payers,” Zhong said. “Countries with a single-payer system tend to have more negotiating power, so we pay more than other countries, often by quite a bit. On the other hand, those countries may limit the access to new medications due to economic concerns.”

What to do

Zhong says consumers struggling with high prescription drug costs have a few options to make their meds more affordable. They include:

• Seeking help from patient assistance programs. Many drug companies, for example, will provide medications at low or no cost in some cases.
• Looking for private insurance co-payment coupons to reduce or eliminate out of pocket costs.
• Asking your pharmacist about generic versions of name brand drugs
• Shopping around. You will be surprised how widely costs can vary, depending on the pharmacy and its location.
• Negotiating with the pharmacy. Sometimes they'll cut you a break, but you have to ask.

It’s a general rule that safety always comes first when you’re a parent. Making sure your little one is strapped in during car trips and taking all the right medicine as part of the daily routine becomes second nature to most, but the results of a new poll show that this vigilance seems to take a break when families are on vacation.

Researchers from the University of Michigan conducted a poll and found that parents tended to be much more lax about safety when traveling for the holidays. They stress that it is just as important for parents to be attentive to safety on trips as they would be at home.

"Parents are typically vigilant about safety measures, making sure toddlers are always in car seats and that medications and cleaning supplies are locked up or out of reach. But they may be less fastidious while on vacation, leaving medications in open suitcases or on hotel tables or not childproofing a relative's house," said Sarah Clark, M.P.H. and the poll’s co-director.

Neglecting safety precautions

The researchers found that car safety was particularly lacking for small children while traveling, especially when families decided to take a taxi or call for a pick-up on a ride-sharing app. Fifteen percent of parents who answered the poll said they decided not to use a car seat for their toddler on every car ride of a trip.

"Car crashes are a leading cause of injury and death among toddlers, which is why it's critical that parents plan ahead to make sure their child is properly restrained during every car ride on vacation. Planning for car seats can be inconvenient in certain destinations, but going without is never worth the risk," said Clark.

Additionally, the researchers say that 25% of parents weren’t careful about how they stored certain medications while traveling, with many just leaving them in open suitcases where a child could easily get to them. Thirty-three percent also said they didn’t properly secure cleaning supplies or other dangerous items when staying in a hotel, and another 33% said they neglected to check the hot water temperature where they were staying.

"Traveling with a toddler can be a daunting task. Many parents spend quite a bit of time planning ahead to avoid meltdowns by scheduling days around naps and packing items that will keep their kids entertained. It's just as important that parents plan for measures to keep kids safe on the road," said Clark.

Safety tips

In order to keep children safe while traveling, Clark and her fellow researchers have made several suggestions that parents should consider. They include:

• Bringing a car seat or renting one while traveling;
• Asking family, friends, or hosts to store medication, cleaning supplies, or other dangerous substances out of reach;
• Packing portable safety devices, such as cabinet latches or baby gates to use as barriers; and
• Conducting a thorough review of any place the family is staying for potential safety hazards;

The C.S. Mott Children’s Hospital has published the full report here.