Eyes On
Tax Season
ICYMI, tax season is here. What you need to know: Refunds will probably be smaller annnd could take longer to get if you file by mail. A charitable giving deduction from 2021 is no more, and the upped child tax credit (boosted in 2021) will return to its normal rate. Good news: If your salary didn’t keep up with inflation, you could be in a lower tax bracket.
Your move:
File for free. The IRS Free File Program offers $0 online prep and filing with select partners. Reminder: You need to earn $73,000 a year or less to qualify.
Don’t miss the deadline. File your taxes on or before April 18. If you need more time, request an extension. PS: Here are 11 tax forms to know.
Tap an accountant. If you're a W-2 employee with few deductions, DIYing your taxes could be the right move. But if your tax situation is more complicated, consider getting a pro to help you.
Related Stories
Money Tip of the Week
Planning a getaway? Get travel insurance.
Yes, it can be pricey. But if you have travel insurance and you get sick (which COVID variant are we on again?) or experience a delay, you’ll be reimbursed for prepaid, nonrefundable expenses.Think: Airfare and accommodations.Psst…here's what you need to know about travel insurance before you book your next trip.
Financial Goal Unlocked
The Goal: Say goodbye to your student loans.
A Winning Mindset: Paying off your student loans allows you to focus on other financial goals, like building an emergency fund and investing. But making that last payment — especially with student loan forgiveness up in the air — is no easy feat.
A Winning Strategy…
Choose your debt paydown tactic. The snowball method is all about paying off smaller balances, while the avalanche method focuses on tackling high-interest rates.
Automate your payments. Take some of the stress out of paying off your student loans by setting and forgetting your payments. PS: You might even get a discount.
See if refinancing is right for you. If your student loans come with high-interest rates, talk to your lender about refinancing. It could significantly lower your monthly bill.
theSkimm
Student loan payments can get in the way of other big financial goals. Pick a paydown strategy, automate your payments, and see if you can refinance high-interest balances.
And Also…This
While some millennials are buying mansions found on TikTok...
The typical renter is spending 30% of their income on rent. RIP COVID deals.
What improves when a ‘saver’ and ‘spender’ get married…
Their relationship with money.
How much time can remote work save you a day...
Hint: Over an hour.
What’s joining free delivery as a Prime perk…
Asking for a Friend
Q: What's the best way to find a good deal on a flight?
Victoria Walker: Being flexible. Which might mean being set on a destination, but taking a cheaper flight to another location close by. For example: If you want to go to Paris, but flights to Paris are really expensive, you could fly to London or Amsterdam. Then take either a regional flight or train to Paris, which could be cheaper. Also, check flights regularly to find the cheapest rates and dates. Don’t forget about your credit card points and your airline miles. Even if you're not someone who travels frequently, if your account is linked to a loyalty program and you've flown on that airline, there's a chance that you've earned some mileage.
Victoria Walker is the founder of Travel With Vikkie. She’s on a mission to make travel more affordable and accessible. Her answer has been edited for length and clarity.
Skimm’rs
Tell Us How You Really Feel: You’re making money moves and we want to celebrate them with you. If you scored a raise, saved up for a big purchase (hi, new car), or reached another money goal, tell us about it here.
Last week, you told us about your favorite money apps for budgeting, saving, and more……
“YNAB. It's a zero-based budgeting app that helps me rack up points and miles without going further into debt. Ex: If I buy groceries using my credit card, I log it into YNAB. Then YNAB deducts that money from my grocery category and moves it into my credit card payment category. So I always know I'll have enough to pay off my card in full.” — Joi W, Oklahoma City, OK
“Monarch Money. Before I started using it, I was budgeting the old-fashioned way, aka with a notebook and lots of highlighters and pens. Monarch is essentially the same thing but in an app. It's super user-friendly and helps my husband and me allocate our savings to different goals.” — Jenna R, Raleigh, NC
“Mint by Intuit. It easily tracks all of my accounts and helps me manage my budget with *minimal* judgment.” — Sarah K, San Diego, CA
Answers have been edited for length and clarity.
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