All those tax returns that you’ve been filing over the years could one day prove to be very important documents if you ever decide to buy a home in the future. While they might just be gathering dust in your filing cabinets, at some point you might need to submit your tax returns to your lender in order to provide proof of your taxable income.

Some lenders might not request such documentation, but you want to ensure that you’re prepared to hand over this paperwork just in case, and not just the first page or two. Today, lenders often require entire tax returns and all schedules that come with it. That gives the lender the opportunity to assess your entire income position.

Essentially, your lender is interested in looking at your full tax returns for the last two or three years in order to see if your income is sufficient to sustain a mortgage, as well as to identify if there is any sign of loan fraud.

W-2 Wage Earners

If you are employed and receive a W-2 form from your employer, the IRS will get a copy of this every year which details how much you earned in that year and how much taxes were held back from your paycheck. Your lender will want to know if your income can be verified and if it’s consistent and sustainable.

There’s a chance that your lender may not ask for your tax returns if you’re a W-2 employee, but it’s important to be prepared just in case. However, if you are collecting pension income or social security income, you will likely have to come up with the last two years of tax returns to submit to your lender.

If you deduct any unreimbursed business expenses on your tax return – such as union dues, mileage for work travel, or mobile phones needed for business purposes – your lender will probably subtract this amount from the income you can use to qualify for a home loan. These expenses will then be deducted from your annual salary, which is the actual income that your lender will use towards your home loan qualification.

Self-Employed

If you’re self-employed, you will absolutely need to hand in your tax returns. These documents are really the only way for your lender to verify your income over the last few years to assess how much you make after all costs to operate your business have been paid, and whether that income is enough to show that you are financially capable of making good on your monthly mortgage payments.

Your tax returns will show what your actual net income is after you’ve paid your taxes. If you inflate your business expenses or under-report your income, you could be sabotaging your ability to get approved for a mortgage. You won’t be able to modify your previous tax returns to help you qualify, either.

Dividends or Interest From Investments

If you own any investments, such as mutual funds or stocks that pay your dividends or earn you interest, your lender will want to now how much you earn from them and if this income is regular and steady. A one-time income collection is not likely to be counted towards a mortgage approval.

Commissions

If you’re in some type of sales position, you will likely collect commissions based on your performance. Any commissions that you earn will be analyzed by your lender to see if this additional income is steady. If you didn’t report your commissions to the IRS, this money will probably not be counted towards your income, and therefore won’t be used to assess your ability to pay your mortgage.

Business Losses

If you or your spouse run a business, any losses will need to be recorded when you file your taxes at the end of the year.

Rental Income

If you own an income property that you regularly collect rent from, this amount will need to be specified on your tax return. However, if you bought the property in the current calendar year, the rent you collect needs to be documented on back-to-back monthly bank statements. If you don’t enter any rent collected on your tax returns, you can’t claim that as income when trying to qualify for a mortgage.

Capital Gains

When you sell an income property, you’ll be subject to paying taxes on your capital gains, which is the profit you make from the sale of the property. However, it’s not uncommon for capital gains to be counted towards your income because it’s not exactly a viable and continuous type of income, which is essentially what your lender will want to see before a loan is extended to you.

The Bottom Line

Any document that your lender can get a hold of that provides a complete picture of your actual income will likely be asked for. Be prepared to hand in your tax returns from the last two or three years, especially of you are self-employed or are collecting some form of income aside from your regular paychecks.

Just about every homeowner knows the danger of carbon monoxide and how it can build up in the home without offering any signs of its presence. It’s colorless and odorless, and can be deadly. That’s why it’s necessary to have carbon monoxide detectors installed in a home in order to help detect its presence and take action to eradicate it.

But another “silent killer” that doesn’t always get the same amount of exposure is radon. Yet it can also be present in the home without homeowners knowing it’s there because it is also odorless, tasteless, and colorless, and can pose a deadly threat to all occupants of a home.

What is Radon?

Radon is a radioactive gas that comes from the decay of uranium that’s naturally present in just about every type of soil and rock. Since it is a gas, radon can easily travel up to the air from the ground, and can even enter the home through cracks in the foundation where it then gets trapped and becomes concentrated.

While some areas in California are more susceptible to radon compared to others, it can still be present in both old and new homes alike, regardless of the particular region. Unless it’s tested for, it is impossible to know if your home is filled with radon or not.

Health Risks Associated With Radon

The reason why radon is so dangerous is because prolonged exposure to elevated levels of the gas can lead to an increased risk of developing lung cancer. While not everyone who is exposed to radon will develop lung cancer, it certainly increases the risk. According to the U.S. EPA and National Cancer Institute, the number of yearly lung cancer deaths among Americans that are associated with radon exposure is between 7,000 and 30,000.

On average, the concentration of radon in homes across the country is approximately 1.3 picocuries per liter (pCi/L). Exposure to radon concentrations over 4 pCi/L is considered dangerous. Testing the indoor air is the only way to know if the radon is at a potentially lethal level. The good news is that testing for this gas is easy and affordable. It’s recommended that actions be taken if the radon level in a home measures 4 pCi/L or more.

The California Department of Public Health (CDPH) recommends that all homes should be tested for radon, regardless of the area, just to be safe.

Testing For Radon

If you’re buying a home, you can have your home inspector conduct the test during the inspection. Otherwise, you can either hire a professional radon test service, or do it yourself using a radon testing kit that is available at home improvement stores. After the allotted time has passed, the detector will then need to be sent to a lab to be analyzed.

It may be necessary to test in all levels of your home if you have a forced air HVAC system, as this gas can travel more liberally throughout the home. As such, you may find the same radon levels on each level.

All windows and doors need to be kept closed (except for general use of exterior doors to enter and exit your home) for at least 12 hours before the test is done and during the actual testing process. If you don’t typically use your air exchanger, keep it turned off during the test. Your HAVC systems can operate as usual.

The detector is placed away from sources of moving air, and shouldn’t be used during windy or wet weather, as this can produce inaccurate results.

The Next Steps

If the level of radon in your home is far less than 4 pCi/L, great. However, if it’s approaching 4 pCi/L or has even exceeded that level, it’s time to take action. There are radon mitigation systems that can help rectify the situation in your home.

One method of reducing the level of radon in your home is through active soil depressurization, which gathers up the radon that is under your home before it’s able to get in. This system sucks out the gas from underneath and then releases it outside, far from any openings to your home.

The Bottom Line

Whether you’re buying, selling, renovating, or are just planning to stay put, you should have your home tested for radon. Even if the average data in the area you live in shows low levels of radon, don’t take a chance. Radon levels can be different from one house to another, even on the same street. It’s a quick and inexpensive test, and might even save your life and that of your family.

Since moving to Chicago from Austin, I’ve been on the hunt for good Mexican food. I couldn’t have been happier to stumble on Fiesta Mexicana, located at 2423 N Lincoln Ave in Lincoln Park. We came in on a Wednesday night and were seated right away. The staff is incredibly friendly and were immediately attentive to our group. Complimentary chips and salsa were served along with our first round of drinks. I tried the El Paisano Picante, a margarita with fresh lime juice and spicy jalapeno. If you like a drink with a kick, I highly recommend this one. We started off with chips and guacamole, which was very tasty. With a larger group, we got to try a number of items on the menu. One of our group favorites was the Fiesta Soup: roasted corn, black beans, tomatoes, onions, and chicken, garnished with tortilla strips and an avocado cream sauce. Another table favorite were the Steak Fajitas. The medley of roasted vegetables was quite tasty and the steak was cooked to perfection. We also tried the Camaron (shrimp) tacos and the Barbacoa tacos. Both were delicious, but I would choose something different next time.

The restaurant is large, with a good number of tables, as well as an extensive bar area. The atmosphere is warm and inviting- perfect for a casual family dinner or a party. At their Lincoln Park location, try Happy Hour from 4 pm- 7 pm, Monday through Thursday, and from 3 pm- 6 pm on Fridays. In addition to numerous drink specials, happy hour includes half-price appetizers. Taco Tuesday is All-You-Can-Eat tacos for just $10! What a steal. You can find other drink specials and events here. Visit their other location at 4806 N Broadway St, in the Uptown neighborhood.

RACHEL HOOVLER & DEAN’S TEAM CHICAGO

When it comes to revamping your home, you’d probably rather focus on projects that will improve the visual esthetics of the space. New kitchen cabinets, refinished hardwood floors, and updated light fixtures are the types of cosmetic jobs that can really make a big difference in the look of your home. But what’s behind the walls and hidden from plain view is just as important for a comfortable, efficient home.

Insulation plays a critical role in reducing the exchange of air between the inside and outside of your home, which means less cool air will escape. If you’ve got your air conditioner running, you don’t want to be wasting energy (and money) operating this unit only to have a good chunk of this cooled air lost to the outdoors. Insulation is therefore crucial for maximum energy efficiency.

The “R-value” of a certain type of insulation measures it effectiveness, whereby the “R” represents resistance to heat flow. The higher the R-value, the better the insulation. The walls in your home aren’t the only areas in the home that should be insulated. Other areas include the attic, foundation walls, floors over crawlspaces, and walls and floors between an attached garage.

Whether you’re planning a renovation or are simply looking to improve the insulation – or lack thereof – in your home, here are some of your options.

Batt and Blanket

This is the more common type of insulation and is made of fiberglass, rock wool, or cotton. They come in rolls that can be easily cut to the desired length. It’s important that this type of insulation is precisely cut to fit around awkward spots, such as around electrical wiring or plumbing pipes. If it is stuffed in these spots carelessly, it can lose as much as 50% of its effectiveness. 

Fiberglass batting comes with an R-value between 3 to 4 per inch and is widely available. The main issue with fiberglass – aside from the fact that it can cause itching when installing it – is that it contains phenol formaldehyde which has been linked to cancer.

Rock wool has an R-value between 4 to 5 per inch, and is more fire-resistant compared to fiberglass and makes use of a lot of recycled content. The downside to rock wool is that it tends to retain moisture, so if it gets wet or damp, it can be a breeding ground for mold.

Cotton batting has an R-value of 3.5 to 4 per inch and consists of a minimum of 85% recycled materials. However, it’s more expensive and not as widely available compared to other materials.

Loose Fill

This type of insulation is made up of ground-up fiber that’s been treated with fire retardants and is blown into spaces using special equipment. It’s usually pricier compared to batt and blanket insulation, but it is much more effective at filling in gaps and corners, which means it can help reduce air leakage and provide optimal sound insulation. Loose fill insulation comes with an R-value of 3 to 4 per inch.

Spray Foam

While more expensive than batt and blanket insulation, spray foam comes with an R-value between 4 to 6.5 per inch. It’s also great at creating an air barrier that virtually eliminates the need for other tasks to cut down on air leakage, such has caulking.

Spray foam insulation comes in either open-cell or closed-cell polyurethane. Open-cell polyurethane spray foam is able to stop the movement of air, but allows moisture to pass through, which means a moisture barrier will also need to be added. This type of spray foam is cheaper than closed-cell polyurethane, but its R-value is much lower.

Closed-cell polyurethane spray foam also stops the movement of air, but goes a step further than open-cell polyurethane by inhibiting the passing of moisture as well. It has an R-value of 6 to 6.5 per inch.

Rigid Insulated Panels

Rigid insulated panels offer much more energy efficiency compared to other types of insulation, but they are also much more expensive. These are ideal when replacing large surfaces, such as roofing, siding, or crawl spaces. Some panels come with tongue-and-groove edges that allow for a tight seam that’s highly energy-efficient. Polystyrene panels have an R-value of 4 to 5 per inch, while polyisocyanurate/polyurethane panels are as high as 6 to 8 per inch.

The Bottom Line

The type of insulation you choose will depend on a number of factors, including the actual space being insulated, and your budget. One thing is for certain – insulation is certainly not one of those jobs that you want to cut corners on. Any effort or money that you might want to save on today will only cost you a lot more in the future in energy loss.

Bucktown and Wicker Park: There’s nothing like a good old-fashioned speakeasy, is there? The Violet Hour in Wicker Park would agree with you on that one! Whether you’re a regular or checking it out for the first time, the Violet Hour is here to please. They just released their Winter 2017 drink menu and it looks delicious. The menu includes items like The Violet Hour Toddy, a hot rye cocktail, and Goodbye Now, Ta-Ta Then: a multi-faceted drink with hints of pie spicing and coffee bitters. The Violet Hour is located at 1520 N Damen, open Sunday to Friday from 6 pm to 2 am, and Saturday from 6 pm to 3 am.

Lakeview: Ever feel like you’re the only nerd in Chicago? Never fear, the Chicago Nerd Social Club is here! The group says of themselves, “The Chicago Nerd Social Club hosts nerdy-friendly events in Chicago. We are nerds and we enjoy hanging out with other nerds.” Members are from a variety of Chicago neighborhoods and pay only $15 annually for discounts at nerd-accessible venues and group-hosted events. The group also hosts a monthly fantasy/sci-fi book club in Wicker Park at Filter Café. To find out more, go to their website, https://www.chicagonerds.com/.

Lincoln Park: Steppenwolf Theatre is joining the nationwide Ghostlight Project, this evening (Thursday, January 19) at 5:30 pm. The name speaks to the theatrical tradition of leaving on a ghost-light at all times. First and foremost, this is for safety, but many posture that it will banish unwanted spirits or placate theatre ghosts. The lighting ceremony will begin at 5:15 pm in the parking lot next to the theatre, located at 1650 N. Halsted St. The event is to encourage and celebrate inclusion and diversity. Theatre companies across the nation will be participating in the event as a show of solidarity and support.

River North:  The Women’s March on Chicago will be held this Saturday in downtown Chicago. Jessica Scheller, co-chairwoman of the march, estimates that over 50,000 women will be in attendance. Following the election of Donald Trump, a Women’s March on Washington was formulated and the Chicago march is its counterpart. The event will begin at 10 am, at Jackson Boulevard on Lake Shore Drive. There will be speakers and performers before the walk itself begins at 11:30 am.

Lincoln Square: Ever wondered who makes the best baguette in Chicago? Wonder no more. The Baguette Battle will take place on February 16, from 6-8 pm at the Sofitel Hotel. La Boulangerie, a Lincoln Square bakery, will be competing, in addition to Floriole, La Farine, and others. You can purchase tickets for $20 in advance, $40  after early bird registration closes. The ticket price includes bread tastings, meat and cheese selections, and one glass of wine. Get your tickets here!

Oak Park: There’s still time to catch the Stars of the Pharoahs event at Cernan Earth and Space Center. This featured event explores the tombs and temples of Egypt, 5,000 years ago. The Egyptians had a deep connection with the stars that guided their daily lives. The event has been running since December 3 and will continue until January 29. For just $4 for children and seniors and $8 dollars for adults, this event is a steal. Check it out Saturdays at 7 pm and Sundays at 2 pm.