Homeownership is one of the largest sources of wealth for Americans. If your home’s value goes up and you pay the mortgage on time, your ownership share—also called equity—increases, turning it into a veritable piggy bank.
Thanks to years of rising home prices, Americans are now sitting on billions in home equity. As of the fourth quarter of 2023, the typical homeowner had $298,000 in equity, according to data provider CoreLogic. U.S. homeowners gained $1.3 trillion in equity between the end of 2022 and the end of 2023 alone. wall arm lamp
Home equity loans are one way you can turn that equity into cash. Here’s how these loans work, how to shop for one, and risks you should be aware of before moving forward.
Home equity is the difference between the value of your home and the amount you owe on your mortgage (or mortgages). Typically, your equity will go up each time you make a payment. If home values rise, your equity will also get a boost.
Picture an old-fashioned scale—when you first buy a home, you probably have more debt than equity, so the scale is lopsided toward debt. But each mortgage payment adds weight to the equity side, slowly tipping the scale over time.
Home equity loans, also called second mortgages, are one way you can borrow against the equity you’ve built in your home and turn it into cash. Because home equity loans often have lower interest rates, they’re considered a smart alternative to using credit cards or personal loans to fund large purchases, home renovations, or emergency expenses. To be clear: home equity loans are secured loans—and your home is the collateral. If you take out a home equity loan and fail to make your payments, your lender could foreclose on the home.
With a home equity loan, you borrow a portion of your home equity and get that money in cash after closing. Lenders typically require you to maintain at least 10% to 20% equity, meaning you can borrow up to 80% to 90% of your current home value—minus any balance you have on your existing mortgage loan.
Here’s an example: Say your home is worth $500,000, you have a $250,000 balance on your current mortgage, and your lender allows up to a 90% loan-to-value ratio. You would use this formula to calculate how much you could potentially borrow:
But, how much you technically can borrow isn’t always the same amount your lender will approve. “It’s very, very much dependent upon your borrowing profile, as well as how much equity you have in the home relative to any mortgage or additional financing you might already have,” says Robert Heck, vice president of mortgage at Morty, an online mortgage broker.
Once you’re approved for and close on your home equity loan, you’ll get a lump sum of money that you can spend however you want. Then, you’re responsible for monthly payments of principal and interest—in addition to your primary mortgage payments. Rates on home equity loans are typically fixed, so your rate and payment should stay consistent for your entire loan term—usually between five and 30 years. Average rates on 30-year home equity loans in May 2024 were in the 8% range.
To qualify for a home equity loan—and get the best interest rate—you usually need to have a good to excellent credit score (that’s 670 or higher) and a low debt-to-income ratio.
Your debt-to-income ratio is calculated by tallying up all of your monthly debt payments, including mortgages and any other personal debts, and dividing that by your monthly income. For example, monthly debt payments of $1,200 and a monthly income of $5,000 would equal a debt-to-income ratio of 24% (1,200 divided by 5,000). The highest ratio most lenders will accept for home equity loan borrowers is 43%.
Your lender will also require an appraisal before you can get a home equity loan, as this helps them determine the current market value of your property—and, thus, how much equity you have to borrow against.
If you want an estimate of how much your house is worth before applying for a home equity loan, use free online tools from real estate marketplaces such as Zillow or Redfin, or check if your primary mortgage lender can help. “Some lenders actually have these systems available to consumers early on in the process,” Heck says. “And they may not charge for it.”
Compared to credit cards and personal loans, home equity loans have much lower rates (think versus single-digits versus double-digits), so they’re a handy tool if you need to pay for home renovations, unexpected expenses, or any other financial need that might crop up. Their rates are also fixed, so you won’t have to deal with changing rates or payments.
Home equity loans can also qualify you for a mortgage-interest deduction (as long as you use the funds to improve your house), and they let you spread your costs out over a long period of time—typically 10 to 30 years.
On the downside, home equity loans put your home at risk. Because they use your house as collateral, your lender can foreclose on the property if you don’t make your payments.
They also add an extra monthly payment to your household, which could cause financial difficulty, and they reduce your eventual profits when it comes time to sell. Finally, most lenders require you to have a large amount of equity to qualify (usually at least 20%).
Home equity loans aren’t the only option if you want to turn your home equity into spendable cash. Home equity lines of credit, or HELOCs, are another popular choice. Like home equity loans, HELOCs are secured by your home, but the way they function—and how you’ll pay—is a little different.
Whereas a home equity loan gives you a lump sum of money, a HELOC acts more like a credit card. You have access to cash for a preset amount of time, known as the draw period—usually 10 years, and you’ll make interest-only payments during that time. When the draw period is up (or earlier, if you want), you start repaying what you borrowed, plus interest.
Home equity investments are another tool for tapping your home equity. These allow you to sell a portion of your home’s equity in exchange for a lump sum. Unlike home equity loans, though, you won’t have a monthly payment. Instead, you’ll pay the investor back when you sell the house or refinance your loan.
The last way you can access your home equity is through a cash-out refinance. This method requires taking out a new loan that’s larger than your existing mortgage balance so that you can pay off the original debt and pocket some cash. In today’s market, though, these aren’t a great option for most homeowners, as the vast majority have mortgage rates much lower than current rates (which would mean trading a low rate for a higher one).
Here’s a look at how all four of these home equity options compare:
Sometimes with a cash-out refinance, your new mortgage may have a lower interest rate, too, which may lower your monthly payment. This isn’t typically the case with cash-out refinances these days, as many homeowners are locked into the ultralow mortgage rates of the pandemic days. Refinances have fallen sharply since mortgage rates started to rise in 2022.
The locked-in rate effect is likely why home equity loans and HELOCs have grown incredibly popular. According to TransUnion, 251,000-plus HELOCs originated in the second quarter of 2023—21% more than two years earlier. Home equity loan originations jumped over 50% to almost 240,000 in the same period.
There is no limit to what you can use a home equity loan for, but most home equity borrowers—two-thirds in 2022—use the funds to pay for home renovations or remodeling projects.
While this can be a smart way to improve your home’s value, that’s not always the case. Data from Remodeling Magazine shows that typical homeowners recoup only about 66% of the cost of a bathroom remodel. Installing an upgraded garage door or stone veneer siding, though? Those recoup your expenses and then some.
Another common use for a home equity loan is to consolidate debt. Since home equity loans typically have lower interest rates than credit cards and personal loans, homeowners can use the cash to knock out their card and loan balances and repay the debt at a more manageable rate.
“Those are really great uses,” says Eric Alexander, a financial advisor at Benchmark Income Group in Dallas. “Where I don’t really recommend either the home equity loan or home equity line of credit is what I would call the ‘fliers,’” or speculative investments. If you spend borrowed funds on a hot stock tip that doesn’t pan out, for example, “now you’ve lost the investment and you’ve got to go repay the loan,” he says.
When you apply for a home equity loan, the lender assigns an interest rate to your loan after evaluating your financial profile.
“Typically speaking,” Heck says, rates on HELOCs and home equity loans are slightly higher than primary mortgage rates because the new lender is taking on more risk. (If you were to default on your debt, the home equity lender would only get second dibs on the proceeds from your house—after your primary mortgage lender.)
Still, he emphasizes the importance of casting a wide net. “I definitely think that there’s a lot of opportunity to shop, to get lower interest rates that are going to actually be closer to what you would find on a primary mortgage from some providers,” he says.
Aim to explore loan options and get quotes from at least four to five lenders, Heck says, including a credit union, a traditional bank, your existing mortgage lender, and an online lender. “Get a sense for the range of offerings across all these different types of lenders, because at the end of the day, they all have different specialties,” Heck says.
If the majority of your financial accounts are under one bank’s roof, Alexander recommends looking at that firm’s loan options first. “They’re an interested third party hoping to expand the relationship,” he says. “They’re very motivated to help you have a good experience.” That said, your current bank may not always offer the best rate.
When comparing options, find out what fees apply and the timeline for getting the cash. Be sure to ask any lender about how the home equity loan is structured, too, Alexander says. In some cases, you may be able to switch from a variable rate to a fixed rate, or vice versa, during the repayment period.
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If you have student loans, chances are you’ll encounter the IRS’s Form 1098-E.
This tax form, also known as the student loan interest statement, is typically sent by lenders via post or email to any borrower who has paid more than $600 in interest payments throughout the year. It should arrive by the end of January so you can potentially use it to claim the student loan interest tax deduction and reduce your bill with Uncle Sam before the April tax filing deadline. (If you don’t find the form in your mailbox or inbox, you can download it from your lender or loan servicer’s website.)
Making sense of this very short document to fully take advantage of that possible $2,500 tax break can be more complicated than its simple design lets on. And if you fall into the category of borrowers who’ve not paid off enough interest in the past year to receive this statement, you’ll need to do a little extra work yourself to claim the deduction.
To help, Buy Side from WSJ consulted student loan and tax experts to provide a line-by-line breakdown of the form and the information it contains, as well as all the tips, tricks, and pitfalls to be mindful of when claiming the deduction so you can keep more of your money.
In this box, you’ll see the total amount of interest payments your lender has received for student debt held in your name that year. This means if you have two or more student loans with the same lending institution, you’ll only get one 1098-E form showing all interest paid across all your debts with them, says Betsy Mayotte, president of The Institute of Student Loan Advisors. Those with multiple loans across multiple lenders will be sent a separate 1098-E form by each lending institution.
Generally, the amount listed in this section is the same amount you can claim to reduce your taxable income. If you have multiple 1098-E forms, you can add up these Box 1 amounts and claim that sum. The deduction, however, is capped at $2,500, meaning any interest you paid in excess of that can’t be used to lower your taxes.
Those lucky enough to work at one of the companies that make up the 7% of U.S. employers who offer student loan repayment assistance as part of a workplace benefits package will likely need to do a little extra work to uncover the true amount of student loan interest they can deduct from their taxable income, rather than just using the amount supplied by the lender.
Under the Cares Act, passed in 2020, employers can now pay off up to $5,250 of an employee’s student debt without it counting as part of that worker’s income, meaning they pay no income tax already on that assistance. To prevent double-dipping, the IRS won’t let you claim any interest paid by your employer to reduce your personal tax bill. The problem is lenders don’t usually distinguish between who has paid for what share of your debt’s interest, they just supply the final total they received. This means you’ll need to review your payment history on the lender’s website to find out exactly how much of that interest was seen off by you directly and claim only that portion, even if it’s less than the amount listed on the 1098-E, says Mayotte
Most borrowers who receive a 1098-E won’t have a mark in the blank square within Box 2 and can skip over this section. But for those who do, this mark indicates that you took out your student loan before Sept. 1, 2004.
This date represents when the IRS changed the interest reporting requirements for lenders. Prior to this, lenders only needed to include stated or simple interest, not other kinds of interest like loan origination fees and capitalized interest, in their Box 1 calculations of total interest received. As a result, anyone receiving a 1098-E with a marked box is still only seeing one kind of interest they may have paid represented on the form.
Any borrowers who paid those other forms of interest that aren’t included on their 1098-E can still deduct those amounts. They’ll just need to do some additional work to get there.
“You should be able to look at the original loan agreement for the loan origination fees and capitalized interest,” says Certified Public Accountant and TurboTax tax expert Lisa Greene-Lewis. “Capitalized interest can occur when someone has not been making payments and the interest is then added to the balance. You would be able to deduct only the interest or fees that were paid that year.”
Your lender may also be able to help you figure this out, even though they are not legally required to report such interest payments, says CPA April Walker, lead manager of the tax practice and ethics team at the American Institute of CPAs.
To get a 1098-E form, you must have paid $600 or more in interest on your student loan debt to a lender within a calendar year, but just because you’ve paid less and don’t receive this tax document, doesn’t mean you’re ineligible to claim the deduction.
Instead of relying on the Form 1098-E, you’ll need to request or download records of what you paid in interest and your payment history from your loan servicer, says Greene-Lewis. This will allow you to figure out yourself how much interest was paid during the year. In case of an audit, keep copies of such statements or take screenshots so you can back up the amount you’re claiming.
As long as you paid off part of a student loan during the year and earn less than $85,000 as a single filer or $175,000 as a married joint filer, you can claim the student loan interest deduction on line 21 of the Income Tax Return, or Form 1040, without needing to itemize, says Walker.
You can reduce your taxable income by either the total student loan interest you paid during the year or $2,500–whichever is smaller. However, the amount of income you earn could limit how much you can shave off as the deduction begins to phase out for single filers making more than $70,000 and joint filers making more than $145,000.
If your income falls in the phase out range, you’ll need to figure out how much you can actually claim. To do this, subtract either $70,000 (or $145,000 for joint filers) from your annual income and then divide by $15,000 (or $30,000 for joint filers). Next multiply the resulting sum by the amount of student loan interest you paid. Finally, subtract that figure from the total student interest you paid or $2,500 to get the amount you can actually claim on your return.
So, for instance, a single filer earning $78,000 who paid $800 in student loan interest would only be able to deduct about $373 from their taxable income thanks to the phase out reduction.
IRS publication 970 provides a full breakdown with examples of how to complete this calculation, although if you use tax software to file your return most will automatically complete this step, sparing you the math exercise, says Walker.
For most tax filers, claiming this tax deduction will be fairly straightforward, but there are a couple places where people commonly slip up.
One of the biggest mistakes, Greene-Lewis says she sees, is people who don’t receive a 1098-E because they’ve paid less than $600 in interest in the year, simply forgetting that the deduction exists and then paying more taxes than necessary.
You cannot claim the deduction if you’re listed as a dependent on someone else’s tax return. So for some families, it may work better from a tax-savings perspective to have a child who is still in higher education file independently rather than as a dependent on a parent’s return, especially if that parent’s high income disqualifies them from claiming this education tax benefit.
“In that case, the student should file their taxes, even if they have income under the IRS income filing threshold, if they can benefit from claiming the student loan interest deduction,” says Greene-Lewis.
If a parent took out the education loan, but you’re the one making the repayments, you cannot claim the deduction. “What matters is not who pays, but whose loan it is,” says Mayotte “Your name needs to be attached to the loan to claim the deduction.
Finally, if you find yourself just over the income threshold for claiming the student loan tax deduction, don’t give up on the tax break. There are a couple last-minute moves you should consider making before the April tax filing deadline so that you can qualify.
“If you’re at the borderline of being able to take this deduction, funding your health savings account or IRA with additional contributions could reduce your taxable income so you qualify,” says Walker. “You’re saving for your retirement and future self while also saving even more on taxes.”
There’s a lot to consider when you’re buying life insurance, not to mention the hassle of getting a medical exam, which most policies require. If you’re looking for a simpler, quicker alternative, no-exam life insurance may be a good fit.
A traditional life insurance policy typically involves a battery of tests and may take more than a month to come into place. If you’re one of the 6 in 10 Americans that have a chronic condition like diabetes or heart disease, you may end up paying thousands extra—if you can find a policy at all.
By contrast, no-exam policies can be done online usually in just a few days. “Medical exams can be off putting,” says Mark Scafaro, co-founder of Afficiency, an insurance technology company. “No-exam life insurance is a great alternative for customers who aren’t interested in completing a medical exam—or waiting weeks for an underwriting decision.”
To be sure, no-exam policies have their drawbacks. While it’s generally easier to get approved, there is no guarantee you will be. Coverage limits also tend to be far lower. And because the insurance company has less insight into your health, you will almost certainly pay more.
Still it’s no secret these have become more popular. Here is what you need to know.
No-exam life insurance is usually a term policy, which means you typically pay a premium to be covered for a specific term such as 10, 20 or 30 years. Afterward the insurance ends. But there are whole life policies, which stay in place as long as you maintain premiums, available as well.
Here are several common types:
You can be approved for this type of life insurance policy with minimal medical questions and no exams. Coverage starts as soon as your application is submitted and you’ve selected a premium.
As its name suggests, guaranteed issue life insurance is a type of whole life policy that guarantees you won’t get denied when you apply. You’ll skip all the health-related questions as well as a medical exam. However, these policies tend to have a long waiting period of around two to three years and a lower death benefit ranging from $2,000 to $25,000.
Accelerated underwriting relates to the process underwriters use to approve your application for insurance quicker. This is commonly used with no-exam life insurance and involves using third-party data and algorithms to determine a person’s approval rate and premium. Accelerated underwriting policies tend to have a coverage limit of $1 million and for anything higher, you’d need a medical exam.
No-exam life insurance may be a good choice if you are:
Traditional life insurance typically requires an in-person medical exam that involves drawing blood and collecting other samples, along with a review of your body-mass index, medical conditions and whether you smoke or drink alcohol. “It can be a rigorous process,” says Susana Zinn, an independent life insurance agent based in Miami. “Even an inch or two in your height could impact your BMI and premium rate during the medical exam,” she adds.
With no-exam life insurance you’ll still need to answer a few basic questions and disclose any medical conditions you have. No-exam life insurance doesn’t guarantee coverage, but it’s more forgiving. “Having some major health issues or risk factors in your history such as nicotine use, high blood pressure or high cholesterol, can make you a strong candidate for no-exam,” says Zinn.
No-exam life insurance can also make sense if you are young and healthy–and simply looking for a hassle-free way to get insured quickly. While you may pay slightly more, your premiums are likely to be low regardless of what kind of insurance you pick, so the convenience may be worth the trade off. Keep in mind no-exam life insurance policies tend to have smaller coverage limits than traditional policies, so the option works best if you are looking for a policy that pays less than $500,000.
With a term insurance policy—which is far more common for no-exam life insurance, your premium is often lower and fixed for the duration of the term length. With a permanent or whole life insurance policy, your premiums will be higher but stay the same so long as you keep the policy.
The cost of life insurance depends on several factors including your:
Because life insurance pricing is based on so many individual factors, it’s difficult to find data about average prices. However, here are some representative quotes provided by Quotacy through Bestow Life Insurance.
Quotacy through Bestow Life Insurance
There are a few ways to shop for individual no-exam life insurance:
Online is a great place to start, and you can quickly find quotes from well-known national brands, as well as startups like Bestow, Haven Life and Fabric, which are usually backed by major insurance companies. If you want guidance you can find Buy Side from WSJ’s picks for Best Life Insurance companies here.
Most of what you find online will be term life insurance options, but some major companies like Nationwide or Progressive will offer whole life insurance options as well. To get a quote, you’ll have to submit a form that includes some basic information about yourself including your name, ZIP Code, height and weight, and gender.
Experts recommend gathering at least three quotes to determine how much no-exam life insurance would cost based on your demographic. “No two life insurance companies are alike, meaning one company may rate someone a smoker if they use smokeless tobacco while another won’t,” says Brian Carden, a Brentwood, Tenn., insurance and financial advisor.
After receiving a quote, a representative from the insurer’s site may call you or you’ll be directed to continue completing an application form online.
If you work with a financial advisor, your advisor should be able to consider all aspects of your financial life to pick a policy that works for you. But remember some financial advisors earn commissions for selling insurance so they will have an incentive to recommend certain insurers and policies.
Working with a fee-only and fiduciary advisor means they won’t earn a commission and are more inclined to prioritize acting in your best interest. It’s always wise to ask a financial advisor if they have specific partners or earn commissions for making certain recommendations early on.
A life insurance agent sells policies for a living, so they can be some of the most knowledgeable professionals out there. While insurance agents traditionally work in person, there are also online brokers like Sproutt, if you prefer a digital experience.
Like many financial advisors, insurance agents typically work on commission which means they might have an incentive to recommend products that pay the highest commissions. They earn a commission that can range from 40% to 100% of the first year’s annual premium, along with a 2% to 5% commission each additional year when the policy renews.
In addition, some life insurance agents work with only one insurer or a handful of insurers, meaning they may only present you with a narrow slate of options. Other agents are “independent” meaning they have a broader reach and can help you get a policy with any life insurance company.
You may already have free no-exam life insurance through your employer. Check with your human resource department to see if life insurance is an employee benefit and what your coverage is.
Usually, your policy amount is equivalent to one year’s salary and your policy is only active so long as you remain an employee of the company. So keep in mind, if you need a higher coverage amount or don’t plan to stay at your job forever, this is when you should consider a policy from a private company.
Once you pick a company and policy that you’re happy with, it’s time to move forward and sign up for life insurance. All in all, signing up for a no-exam life insurance policy should take one to three days at most. Here is how the process works in four steps.
Interior lighting is notoriously hard to get right. There’s a delicate balance in creating light that is soft enough to be flattering, but bright enough for reading or working. It’s also challenging to figure out the right mix of overhead and accent lighting. A floor lamp may be the trickiest purchase as these lamps not only need to be a great source of light, they are also a key part of a room’s décor.
We asked interior designers to share their favorite floor lamps—ones that they have either owned themselves or used in projects for clients. From a classic brass reading light to a sculptural rice-paper lantern, these expert picks will make your room glow.
This is the lamp to place next to your favorite reading chair. “Pharmacy-style lamps have been around for many years and the lines of this piece are transitional, allowing it to work with many design styles without dating itself,” says Cynthia Masters, of the design firm Panageries in Greenville, S.C. “You can spend a little more on pieces like this because you’ll have them for a long time,” she adds. Masters notes that this swing arm‘s size and shape allow it to tuck cozily next to a chair, freeing up space on a nearby side table.
While there’s a case to be made for investment pieces, there are also times when you want a fast fix for a dark corner. “I was recently looking for an affordable brass, pharmacy-style lamp for my guest room where I didn’t want to spend a fortune,” says Grant K. Gibson, an interior designer who splits his time between San Francisco and Castine, Maine. He settled on a vintage-style gooseneck from Brightech, a newish, direct-to-consumer lighting company that offers free shipping.
Kaitlyn Murphy, senior designer at Marguerite Rodgers Interior Design in Philadelphia, says she has always been inspired by the 9602 Floor Lamp designed by Paavo Tynell for the Hotel Aulanko in 1935. This lamp has a timeless air and Murphy notes that while simple, it can hold its own in a room with rich materials like velvet upholstery, marble and plaster. She also points out there are many good, lower-cost homages to the design, including this lamp with a woven shade and rattan-wrapped base.
A milky glass sphere seems to perch precariously on the slender metal arm of this minimalist lamp designed by Michael Anastassiades. The tension in the design “will add drama and whimsy to any space,” says Charles Pavarini III, owner of Pavarini Design in New York City and a longtime board member of the Designers Lighting Forum of New York. Plus, he notes, it’s a high-quality fixture that throws off great light.
Designer pieces are not always attainable, but Isamu Noguchi’s Akari lights are design classics that fit a broad range of budgets, says Amanda Jesse, partner at Jesse Parris-Lamb, a Brooklyn-based interior design studio. “The handcrafted sculptural shape of an Akari floor lamp adds a warm, organic element to a space,” she says. “The textural washi paper shades filter light beautifully, but are equally stunning when the lamps are turned off.”
“This lamp provides the oft-forgotten sculptural element, which makes any room more layered and interesting to be in,” says Matthew Kowles, an interior designer based in New York City of this Aerin showpiece. Tom Stringer, principal of Tom Stringer Design Partners in Chicago agrees: “I like the strong visual profile, the texturing on the base, and the variety of well-thought-out finishes.” The lamp is also a design chameleon: Stringer has used it in a rustic mountain retreat in the bronze finish, while Kowles recently used a pair in the white plaster finish for a client on the Upper East Side. It’s notable that more than a dozen design pros have featured the Beaumont on a popular retail lighting site.
This swooping design is a laid-back take on an arched floor lamp. “The organic bend of this floor lamp reminds me of a plant,” says New York City interior designer Eneia White, who notes that the Johanson lamp would look beautiful in rooms including a children’s bedroom or nursery. White likes the natural rattan shade, which she says adds texture and a natural element to a room; the base is available in either an aged iron or antique brass finish.
For a minimalist, functional task light, Cheri Etchelecu, the designer behind Cheri Etchelecu Interior Design in Dallas, recommends Koncept’s “Z bar” floor lamp, which is basically an oversize desk lamp. “It has a discreet look that can fit into almost any design scheme,” she notes. With its dimmable and highly positionable design, you can direct the specific amount of light exactly where you want it for reading or working.
Made from turned solid oak, this lamp has the look of a bygone era. “I’ve used the Bari floor lamp a few times, especially in homes that lean toward a wabi-sabi or more laid-back California style,” says Gianpiero Gaglione, founder of GG Interiors in Los Angeles. “It’s beautifully proportioned, but my favorite detail has to be the parchment shade with leather stitching,” he says. “It’s so subtle, and the craftsmanship is exquisite.”
“Iconic” is how Bryan Yates, founder of Yates Desygn in Dallas, describes this lamp. “I’ve been obsessed with it for as long as I can remember,” he says. “Its light, contemporary construction is the synthesis of function and form, adding a hint of sculpture to a space.” Indeed, the 1975 design is included in the permanent collections of several art and design museums, including the Musée des Arts Décoratifs in Paris and the Brooklyn Museum. American artist Donald Judd had one in his SoHo loft, further validating its serious design cred.
For a floor lamp that is the focal point, not a background player, look for a design with a thick trunk in an unexpected material, like this carved wood model. “The rich wood tones of this sturdy floor lamp are the perfect blender within any casual room,” says Jennifer Walter, of Phoenix, Md.-based Folding Chair Design Co. “Plus, the large cylinder shade makes just enough of a statement to hold its own.” We’ve also spotted it in of-the-moment designer Sarah Sherman Samuel’s Grand Rapids, Mich., living room, where it pops against white walls.
With its bone-china shade and cotton braided cord, this classic British design is all about the details, says Glenn Ban, an interior designer based in East Hampton, N.Y. Ban loves that this lamp works in traditional interiors and more modern spaces, and he also appreciates the brand’s stated commitment to green manufacturing practices.
“Floor lamps are a great opportunity to do something a little bit funky and add a really interesting shape to your space,” says Ginger Curtis, president of Urbanology Designs in Fort Worth, Texas. In addition to its unique shape, Curtis admires the Astrid floor lamp’s rich mix of materials: leather, wood, and brass.
A swing arm floor lamp lets you easily control where the light is directed when you’re reading. This model features a simple linen shade that also offers diffuse light for the whole room. Caroline Brackett, principal designer at Caroline Brackett Studio of Design in Greenville, S. C., describes this model, designed by Paloma Contreras, as “a transitional take on a traditional style.”
When searching for a lamp for her daughter’s room, Mary Maydan, founder of Maydan Architects in Palo Alto, Calif., was pleasantly surprised to discover this tripod floor lamp, which is sold on Amazon but has striking resemblance to tripod fixtures by high-end suppliers. “The thinness of the legs and the elegance of the fabric that shields the light are exquisite,” she says. Maydan also notes that the all-black lamp adds welcome contrast, so a room doesn’t get “washed out.”
A surprise such as a promotion or birthday celebration can be exciting, but surprises are generally less welcome when it comes to taxes.
If filing your tax return this year came with an unwelcome bill or a larger-than-expected refund, you may be glad to know that the Internal Revenue Service offers a way to fine-tune your tax withholding: Form W-4.
With this form, also known as an Employee’s Withholding Certificate, you can adjust how much federal income tax gets withheld from each paycheck to align with your expectations come tax day (April 15, 2024, for income earned in 2023.)
Form W-4 tells your employer how much tax to withhold from your paycheck. Employees need to fill one out whenever they start a new job. Yet this form isn’t one to add to the “set it and forget it” stack, says Michael J. Faust, president of wealth management at Bailard.
“This is a dynamic form,” Faust says. “If something in your life changed this year, your W-4 is your chance to get out in front of it so you’re not surprised come tax time next year.”
For instance, if you owed more taxes or got a smaller refund than expected, you can use your W-4 to increase the amount of money that gets withheld from your paycheck. But if you overpaid and got a larger refund than expected—which some view as a bad financial move—you can instead use the form to decrease your withholding and increase your take-home pay.
Faust says it can help to think of your W-4 as part of your financial plan. Just as a good retirement plan helps balance your income and taxes over the long term, your W-4 can help do the same each year.
If you haven’t checked in on your W-4 in a few years, you’ll want to take a gander, says Pete Isberg, an executive with payroll provider ADP. That’s because Form W-4 was overhauled in 2020 based on changes passed in the Tax Cuts and Jobs Act a few years earlier.
Before 2020, your tax withholdings were calculated using personal exemptions, a dollar amount you could deduct from your total income for yourself, as well as for your spouse and any dependents, if applicable. Using an IRS-provided worksheet, you would determine the number of exemptions to claim—indicated by a number ranging from 0 to 3. The higher the number, the less tax was withheld from your pay.
Today’s W-4 no longer uses personal exemptions to account for dependents and changes how you factor in additional jobs or income from nonjob sources.
At the top of the W-4 form, you enter your personal information and filing status.
If the name you enter in this section differs from the name on your Social Security card, it’s worth taking the extra step of checking in with the Social Security Administration. With a free online account, you can review your earnings record to ensure you’re receiving credit for wages that may have been earned under a different name.
Step 2 can be deceptive, as it looks like there is only one box to check. However, if you’re filing jointly or a single filer with multiple jobs you’ll need to do some behind-the-scenes calculations to ensure an accurate withholding rate.
Luckily, the IRS provides tools to help. If you have multiple jobs, you’ll use Step 2(b)—Multiple Jobs Worksheet, which is found on page 3 of Form W-4.
It’s important to note that “multiple jobs” means that you (or you and a spouse) simultaneously work more than one job. If you change jobs during the year but none of those jobs overlap, “multiple jobs” doesn’t apply to you.
If you and your spouse each have one job and similar annual incomes, you can opt to check box c in Step 2. In IRS parlance, “similar” means that the income from the lowest-paying job is more than 50% that of the highest-paying. The IRS indicates checking box c will result in a more accurate withholding if the lowest household income is more than half the highest salary.
If you have two jobs, use the chart on page 4 of Form W-4 to locate your annual taxable income from the columns for the higher- and lower-paying jobs. For instance, say you’re a single filer with two jobs with taxable annual incomes of $82,000 and $21,000 on your previous year’s W-2s. Using the page 4 chart that corresponds with your filing status, you would enter $5,040 on line 1 of the worksheet.
Then, you enter the number of pay periods for your highest-paying job on line 3 of the Multiple Jobs Worksheet. Finally, you’ll divide the dollar amount on line 1 by the number of pay periods on line 3 and enter this figure on line 4. You’ll use this number when you get to Step 4(c) on page 1 of the W-4 of the highest-paying job.
So, if the single filer in the example above was paid twice monthly, or 24 times a year, they would divide $5,040 by 24 and enter $210.
You won’t fill out line 1 of the Multiple Jobs Worksheet if you have three jobs. Instead, you’ll begin with line 2a.
For example, suppose you’re a married couple filing jointly with three total jobs with annual taxable salaries of $82,000, $45,000 and $21,000. On line 2a, you’ll find the intersection of the highest two salaries using the “Higher Paying Job” and “Lower Paying Job” columns and enter the figure ($6,090) on line 2a.
Next, you’ll add the two highest salaries together. In this case, the total would be $127,000.
Going back to the page 4 chart, you’ll now use $127,000 as the highest-paying job and the salary of $21,000 as the lowest-paying job. You’ll write the figure in those intersecting columns ($6,270) on line 2b. You’ll then add the figures from lines 2(a) and 2(b) and enter the dollar amount on line 2(c).
Next, you’ll complete line 3 using the number of pay periods for the highest-paying job. And finally, you’ll divide the amount on line 2(c) by the number of pay periods in line 3 and write the figure on line 4. You’ll use this figure in Step 4(c) on the W-4 of the highest-paying job.
Note: If multiple jobs have annual taxable salaries above $120,000 or there are more than three jobs, you can use the online IRS Tax Withholding Estimator for an accurate figure or consult a tax professional. This tool can also be useful if you start a new job midyear.
To get the most accurate estimate using the estimator, you and your spouse will need these documents on hand:
You’ll use the figure from the withholding estimator in Step 4(c) on page 1.
When you claim a tax credit, the amount of the credit gets subtracted from the income tax you owe.
If your adjusted gross income is $200,000 or less ($400,000 for joint filers) and you have eligible dependents, you’ll calculate your child tax credit and credit for other dependents here. Claiming these credits will decrease your withholding and increase your take-home pay.
Calculations for children under age 17 go on the first line, and other dependent calculations go on the second line. The IRS definition of dependent is fairly broad, and there is an online tool to help determine whether you’re eligible to claim someone as a dependent on your taxes.
You’ll add up the figures on the first two lines and write the total on line 3. If you know you will be eligible for other credits, such as the adoption credit or earned income credit, you can include those credit amounts here as well.
Step 4 is where you can insert the additional amount you’d like withheld to prevent surprises when you next file your taxes.
Other income. If you anticipate income from sources that don’t typically have taxes withheld, you can add an estimate of that income to line 4(a). This typically includes stock dividends or withdrawals from retirement accounts, but can include any income that will be reported on a Form 1099.
Deductions. A tax deduction reduces your taxable income. Since the Tax Cuts and Jobs Act went into effect, most taxpayers have taken the standard deduction. However, about 10% of people benefit from itemizing. If you plan on itemizing, you can use the Deductions Worksheet on page 3 of Form W-4 to find the right deduction to enter on line 4(b). Some examples of common itemized deductions are significant charitable contributions, mortgage interest and medical expenses that exceed 7.5% of your adjusted gross income.
On this worksheet, you can also add in estimates for expenses such as student loan interest, certain IRA contributions, health savings account contributions and educator expenses that can be deducted from income even if you don’t itemize. To see a list of potential deductions to include, see Part II Adjustments to Income on Schedule 1 (Form 1040).
Extra withholding. Faust of Bailard says one of the most common reasons some people opt to have extra withheld via line 4(c) is to build up a tax refund.
While some say refunds give the government an interest-free loan and should be avoided, other taxpayers use refunds as a financial tool. For instance, Faust says that some people get inspired by lump-sum refunds and use the annual cash influx to fuel other financial goals.
A poll from Ameriprise Financial found that, of those expecting refunds, 38% planned on using their refund for a specific financial goal. Of that 38%, 50% indicate they’ll use their refund to add to retirement savings, 41% will use it to pay off debt and 29% will invest the money.
Faust also mentions that some taxpayers like to build up a cushion with the IRS. If you owe more than planned, the cash cushion can lessen the blow come tax time. Conversely, if you owe less than planned, a refund can go right back into the bank. (However, if you are confident in your tax calculations, you can also use a W-4 to to boost your take-home pay.)
Your last step is to sign and date your form, then return it to your employer. Your employer will fill out the Employer Only section.
If you’re a single filer comfortable with your tax bill or refund each year, your W-4 might be fine at your current withholding rate. But there are plenty of life events that could necessitate a change to your W-4, says Ashley Stahl, a career expert with financial services company SoFi.
“You can update this form throughout the year as your work or money situation changes, be it through getting married, having a child, losing your job or taking on a second job,” Stahl says.
However, Isberg with ADP suggests making W-4 reviews an annual practice—not just around life events. “It should really be part of your annual tax preparation process, meaning first, you file your taxes for the year prior, and second, you adjust your withholding for the next year,” he says. So after you file your Form 1040 tax return, your W-4 form updates should be next.
He also adds that W-4 adjustments should be made as early in the year as possible. By doing so, you can spread out increased withholdings over more pay periods to lessen the impact on your monthly finances.
With summertime comes sandals and breezy dresses. To find some of the best summer dresses on the market, we asked stylists from across the country to share their favorite versatile picks across a range of prices. See our list for dresses to wear to the office, on vacation, to a wedding or just around town this summer.
Claire Roberts, owner of the Raleigh, N.C.-based Claire Roberts Style, loves this sophisticated midi dress for its versatility. “It’s great for work, for play,” she explains. With its unstructured silhouette, tie waist and ultrasoft fabric, it “could pair with sneakers and a denim jacket, or heels and a blazer.”
For a summery dress you can wear to backyard parties or casual errands, check out this elegant linen summer maxi dress. The “airy and comfortable” piece is “the perfect multifunctional off-duty dress,” says Alison Bruhn, co-founder of the fashion site The Style That Binds Us, based in New York City. It’s available in four colors (including black polka dot), has an oversize design and features a deep-V neckline made for showing off jewelry. The 100% linen dress is also machine-washable.
Bruhn recommends this gorgeous “European chic”-style patterned minidress from La DoubleJ. The “price is not cheap, but the fabric is very high quality with a timeless appeal,” she notes, a jacquard of polyester, cotton, silk and polyamide, giving it a vintage vibe.
Lindsay Olivarez, a stylist at Stitch Fix in Dallas, calls this pink mini dress “a versatile, all-in-one look that will keep you breezy, stylish and comfortable all summer long.” This 100% cotton dress features a lined, roomy silhouette (ideal for extra-hot days, Olivarez notes), embroidered pattern, adjustable halter neckline and hidden pockets.
There’s so much to love about this stunning midi, says Bruhn, like its “drawstring at the waist, the V-neckline and the colorful, joyful print.” With ruffle sleeves and a chic silhouette, and “it’s the perfect piece to bring on summer holiday trips,” per the stylist. It’s from FARM Rio, a B-Corp certified brand with a sustainability commitment to “concrete changes for an inclusive, equitable, and regenerative economy.”
New York City-based stylist Britt Theodora is a big fan of brown dresses because the color “beautifully transitions from the cooler months to the summer.” This simple yet stylish short-sleeve midi can be worn to the office with a blazer, on a date with strappy sandals or with a floppy straw hat for brunch. You may spend more on a round of drinks than the low-price dress itself. It also comes in two dozen other colors if brown isn’t your thing.
Roberts calls this collared mini “perfection in a dress” due to its “flirty” pleated hem, point collar and professional-style button placket. “It’s great for work and then out to drinks and dinner,” she adds. Pair the dress with some simple heels or white sneakers to complete the look.
“No summer wardrobe would be complete without a classic linen dress,” Olivarez says, and you can nab this short-sleeve option for just over $30. In addition to its comfy feel and low price, we love this dress’s collared neckline, tie waist and fun front slit, as well as its wider-than-average variety of sizes, from XS to 4X.
Olivarez also adores this beautiful patterned midi featuring “a retro-inspired summer print that’s perfect for the season.” The dress is made from breathable cotton with 3% elastane for stretch and a hidden side zipper. It features detachable straps that, she adds, make it ideal if you want a strapless look for a wedding or formal event. It’s also machine-washable.
This stunning maxi dress makes a fantastic wedding guest look, says Roberts, thanks to its “beautiful patterned fabric” and “lush skirt.” The center cutout and strapless style add some sexiness to the look, while the gown’s flowy length gives it a formal air.
Sherry Farrahi, a Los Angeles-based stylist, says “a white summer dress is essential to your summer wardrobe.” This simple cotton look “can be styled so many different ways, depending on the occasion,” she adds. The Piedmont Sundress is a favorite of hers thanks to its lightweight organic cotton fabric that will keep you cool even on hot summer days.
This racerback minidress is made of stretchy cotton. With built-in shorts and generous pockets, it’s great for city explorations this summer. Made of cotton and spandex, it’s also machine washable.
With its corset-like bust and “flared, mermaid-like pleats at the bottom,” this strappy dress is “great for a curvy body,” according to Roberts. You can pick from three colors and patterns, all of which are “sexy and sophisticated,” Roberts adds.
This beautiful lingerie-style dress is made from delicate silk. “I’d throw this over a swimsuit or wear it with a kitten heel and blazer for dinner,” says Theodora. You can get the midi piece in Creme de Menthe, a lovely mint green, or Chrysanthemum Sky Floral, a print featuring daisies, daffodils and the titular chrysanthemums.
“With puff sleeves, a smocked waist and a tiered skirt, this summer maxi dress will make you feel like you’re floating—even on the hottest summer day,” says Olivarez. It comes in five color schemes. Pair it with sneakers for a casual day or wedge sandals for a party.
Commuting has undoubtedly changed for many of us in the past few years with the increase in remote and hybrid working. But if you are going into the office at least part of the time you still need a work bag, and ideally one you feel good about carrying.
The best options hold all you need, are stylishly constructed and can take the wear and tear of a commute. It can be tough to find all three assets in one bag, so we asked fashionable professionals—all of whom have jobs that require stepping beyond the home office on a regular basis—to share their top picks. These are the nine commuter bags they swear by.
Structured canvas totes have long been a mainstay of summertime, and for good reason. The material is durable and the spacious shape makes the bag easy to pack for the office, a day at the beach or even an overnight trip. Elizabeth Cardinal Tamkin, a New York City-based personal stylist and content director at clothing brand Kule, is a fan of this style from Baggu. She appreciates that it fits her laptop and that the straps rest comfortably on her shoulder. For a slightly more elevated version, Tamkin suggests this pick from Staud with leather straps and trim.
Merino wool isn't just for your favorite sweater. This Graf Lantz tote is made from the odor- and stain-resistant material, in four colors, all with leather straps. \"I love the pop of color in this tomato-red tote,\" Tamkin says of the bold colorway, adding that choosing a bright commuter bag will \"add some color to many of our monochrome (all-black) work wardrobes.\"
While Longchamp is well-known for its nylon totes, this all-leather version offers a dressier, business casual look. It has a mostly open interior with one slip pocket, which gives you options for how you want to organize it-we recommend using a laptop sleeve and zippered pouches. The entire bag zips closed, making it a smart choice to keep your belongings secure throughout your commute.
A backpack is a sensible choice for your daily commute, but this pick from British brand Bennett Winch is a stylish upgrade from your typical bookbag. We tested the backpack and were impressed with its sleek look, spacious interior and thoughtful details. The laptop fit our 13-inch MacBook Air comfortably, and slip pockets inside offered space for our computer mouse, smartphone and other small essentials. Plus a separate zippered bag that snaps into place provides handy storage for gym clothes or an extra pair of shoes. It’s made of durable cotton canvas with leather details for a practical, yet elevated, look.
This duffel-style bag from Dagne Dover is a solid choice if you’re headed from home to the office to the gym on a regular basis. The neoprene bag has a laptop sleeve designed to hold 13-inch computers, as well as two interior mesh pockets, an exterior phone pocket and a shoe bag (perfect for keeping gym shoes and clothing separate from your work essentials). It comes in six colors and four other sizes, should you require more or less space.
This tote caught our eye because it is specifically designed for commuting. Its roomy interior features a 13-inch laptop sleeve and a key leash, while the outside includes two zippered pockets, a luggage sleeve that allows you to secure it on top of a rolling suitcase and an adjustable padded strap for comfortable carrying. You’ll find it in four neutral colors, but we’re particular fans of the chic beige faux leather option.
Clean-lined and crafted with a single interior pocket, this leather style, which comes in 13-inch and 16-inch versions, is a minimalist bag with a space-maximizing twist: It’s designed to be customized with inserts you can buy separately to keep you organized, like a laptop sleeve, flap bag and zipper pouch, all in the same luxurious pebbled leather as the tote itself. “Separating what I need for the day into designated zones is the easiest way to feel prepared,” says New York City-based fashion writer Nicole Kliest, who carries the Cappuccino version with all three add-ons to meetings with designers and on frequent work trips abroad. The absence of hardware also makes this bag among the lightest we tried.
This backpack is a weather-resistant, practical model that tech marketer Matt Tuffuor relies upon for his rigorously scheduled, split-city life. The founder of Toasted Life, a live events company, travels between Cleveland and Oakland, Calif. “A commute is valuable time to fire off emails, texts or squeeze in a quick read,” he says, “so I prefer a bag that I can toss on my back to free up my hands.” It’s also a sensible option for varying transportation modes, like “when you need to jump on an electric scooter or city bike,” he says. Two netted interior pockets and a felt-lined laptop sleeve keep items secure on a bumpy ride. And while backpacks generally aren’t known for stylish design (though these certainly do deliver), this is where Thule’s Chasm shines: Though it’s made of rugged performance nylon, the rounded front and hidden zippers give it a look that’s more urban sleek than solely outdoorsy.
Parisian brand Polène’s handcrafted bags are priced well below those from its European counterparts, and while much of the collection is made up of smaller silhouettes, the Cyme is big enough to accommodate a laptop and function as a commuter option. Magnetic tabs sewn into the leather on both sides allow you to expand the bag or fold it inward for a smaller shape. (That versatility has made it one of my favorite bags, as I can use it to haul all of my work gear one day and then carry it as a medium-size purse to dinner or drinks the next.) It comes in seven colors, though some are currently out of stock and the others are available for pre-order, which will ship starting April 19. The Mara Bag from Sezane is a similar option you can order now.
Anyone who prefers the structure of a traditional briefcase but wishes it were big enough for an overnight work trip will appreciate Shinola’s Vachetta leather option. Charleston, S.C.-based retail executive Scott Sanford, who previously worked at fashion brands Steven Alan and Robert Graham, uses it as a combo of commuter case and gym bag because “there’s no need to tote around additional baggage when you can carry just one.” It’s equipped with a shoulder strap and padded laptop compartment along with suitcase-style features including interior elastic shoe pockets and a clothing divider. It’s 8 inches wide and the heaviest of the styles we tried, so it’s best suited for car commuters.
The least expensive pick in our mix is likely to garner the most compliments, says Manhattan-based fashion editor turned real-estate agent Robert Khederian, noting it stands out with its modern monogram detail. He’s also a fan of the bag’s durable construction. Made of 100% natural jute with a water-resistant lining, “it’s almost designed to get beaten up,” he says. “If it rains on the way to and from [meetings], this bag can handle it.” The long leather handles are reinforced with nickel rivets, and according to the brand, the bag can hold more than 100 pounds.
This handmade pick from Khederian is constructed of tumbled leather, which means the material has been spun in rotating drums to soften it. We can vouch for the buttery feel. It’s also generously sized, with two deep exterior pockets that can hold a phone or folded newspaper, plus a roomy interior—a feature Khederian considers key. “I need something that fits more than a briefcase would,” he says, and this zipper-top tote lined with hardy Sunbrella fabric easily accommodates a few post-work groceries or a bottle of wine. It also offers two carrying modes, with a shoulder strap and top handles.
—Additional reporting by Madeline Diamond
Part timekeeping tool, part jewelry and part style statement, a classic analog watch won’t count your steps or display text messages, but that can be a good thing. “In the smartphone era, an analog watch might seem like a frivolous luxury,” says Brynn Wallner, a New York City-based creative consultant and the founder of the watch blog Dimepiece.co. “But as we all collectively become fatigued by our screens, an old-school timepiece may just be the antidote.”
Not only does an analog watch offer a break from the constant distractions of apps and social media, it also provides an elegant way to express your personal style, adds Dallas-based personal stylist Roxanne Carne. “Upgrading your watch is a simple yet powerful way to elevate your overall look while adding a touch of sophistication, professionalism and distinction to any outfit.” (These days women’s analog watches are so popular, male celebrities are sporting them.)
wall hanging lamp for bedroom From storied Swiss brands to contemporary fashion houses, there are seemingly countless timepiece options. (There are also lots of jewelry insurance options you may want to consider to protect your purchase.) To help you find the right piece for you, we asked stylists and watch experts for their picks to suit every style, occasion and budget. (Experts also weigh in on watches designed for men.)