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☆ Auto loan delinquencies are rising. Here's what to do if you're struggling with payments
▼ + stars: | 2023-02-04 | by ( Sarah O'Brien | ) www.cnbc.com time to read: +4 min

Fotostorm | E+ | Getty ImagesFor a rising share of car owners, monthly auto loan payments appear to be evolving into a problem. High prices, interest rates have led to bigger paymentsLoan delinquencies can harm your credit scoreWhile the auto loan delinquency rate is edging higher, the default rate is not, according to Cox. "If you're 30 days late, it impacts your credit score," said Brian Moody, executive editor of Kelley Blue Book. What to do if you're struggling with auto loan billsFor car owners who are pretty sure they're heading toward delinquency, it's important to try preventing the problem from snowballing. If you're struggling to keep up because you don't budget well, that's at least potentially fixable, experts say.

A slow real estate market is the most straightforward reason to consider an interest-rate buydown. If you're in a strong financial position and want to sell your home quickly, consider a buydown. People also ask whether they should sell and cash out on the appreciation of their real estate over the last few years. If selling some real estate is in your financial plan for 2023, though, then an interest-rate buydown, or seller buydown, might be worth offering. You're selling a 'starter home'While most first-time homebuyers anticipate staying in their first home for several decades, many typically stay in their home for five to 10 years.

☆ Don't risk a tax audit. Here are four reasons the IRS may flag your return
▼ + stars: | 2023-02-03 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

"People are scared to death of the IRS," said Karla Dennis, an enrolled agent and founder of Karla Dennis and Associates. 4 red flags for an IRS auditThe statute of limitations for an IRS audit is typically three years, with the clock starting once you file, explained John Apisa, a CPA and partner at PKF O'Connor Davies LLP. Refundable credits The IRS also reviews refundable tax credits more carefully since filers can still receive the tax credit with zero balance due. While audits have declined overall, the drop is lower for filers claiming the earned income tax credit, a tax break for low to moderate earners, which has contributed to higher audit rates among Black Americans. Round numbers Deductions with rounded expenses may raise eyebrows, said Preeti Shah, a certified financial planner and CPA at Enlight Financial in Hamilton, New Jersey.

☆ Roughly 70% of taxpayers are eligible for IRS Free File, but only 2% used it in 2022
▼ + stars: | 2023-02-02 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Roughly 70% of taxpayers qualify to use IRS Free File, but only 2% used it during the 2022 filing season, according to the National Taxpayer Advocate's annual report to Congress. A public-private partnership between the IRS and the Free File Alliance, the service offers free online guided tax preparation from partner companies for federal returns (and some state filings). You may qualify if your 2022 adjusted gross income was $73,000 or less. How Free File worksTo get started with Free File, you'll need last year's adjusted gross income for verification, your Social Security number and the necessary tax forms. Free File may not work for all taxpayersWhile Free File isn't widely used, some experts say it won't work for more complicated returns.

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☆ After the Fed’s latest move, how come you’re still not getting a higher rate on your bank savings?
▼ + stars: | 2023-02-01 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +10 min

So how come you’re not getting a higher rate on your bank savings? Another high-yield savings optionGiven today’s still-high rates of inflation, Series I savings bonds may be attractive because they’re designed to preserve the buying power of your money. For the week ending January 26, the 30-year fixed rate mortgage averaged 6.13%, well above where it was a year earlier, at 3.55%. So, if you’re close to buying a home or refinancing one, lock in the lowest fixed rate available to you. The variable rate on a home equity line of credit or a fixed rate on a home equity loan will rise because their formulas are directly tied to the Fed’s rates.

☆ Tax credits vs. tax deductions: How they differ, and what to know before you file
▼ + stars: | 2023-01-31 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

Tax credits offer a dollar-for-dollar reduction in liabilityA tax credit offers a dollar-for-dollar reduction of your taxes. For example, let's say you get a $1,000 tax credit and have a $5,000 tax liability. It's therefore a more indirect way of cutting your taxes relative to tax credits, which directly lower your actual tax liability. On the other hand, a $1,000 tax credit would shave $1,000 off their actual tax bill total. Tax deductions are a lot more valuable [for people] in the 37% tax bracket than someone in the 10% tax bracket.

☆ Is the ‘100 envelope challenge’ a smart money move?
▼ + stars: | 2023-01-31 | by ( Christine Romans | ) edition.cnn.com time to read: +4 min

It’s called the “100 Envelope Challenge” on TikTok, and it promises to put more than $5,000 in your pocket in just 100 days. Continue this way until day 100, when your final savings deposit of $100 will bring you to a grand total of $5,050. But given how popular the envelope challenge has become, I decided to ask certified financial planner Doug Flynn of Flynn Zito Capital Management for his take. “I’m all for whatever it takes to get people talking about saving money. The envelope challenge videos have a get-rich-quick flair that is certainly viral and entertaining, but obviously the exception, not the rule.

☆ 3 key things to know before opening a home equity line of credit
▼ + stars: | 2023-01-31 | by ( Sarah O'Brien | ) www.cnbc.com time to read: +4 min

Westend61HELOC use rose as cash-out refis droppedLast year, as mortgage rates climbed higher, accessing home equity by taking cash against it during refinancing — a so-called cash-out refi — became less appealing. That compares with personal loan rates of above 10%, for consumers with high credit scores, and about 20% for credit cards, according to CreditCards.com. I would not use a HELOC to buy frivolous things or things you can't afford. "I would not use a HELOC to buy frivolous things or things you can't afford," said certified financial planner David Demming, president of Demming Financial Services in Aurora, Ohio. Here are three key things to consider before signing on the dotted line.

☆ How to figure out the best time to file your tax return: Don't 'race to the finish line,' say tax pros
▼ + stars: | 2023-01-30 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

ozgurcankayaAs tax season begins, you may be eager to file your tax return for a faster refund and to check the annual task off of your list. Most tax forms arrive by late January to mid-February, but others may be later. Avoid tax identity theft by 'filing ahead of fraudsters'That said, there's no reason to wait once you have all your necessary forms. Tax-related identity theft happens when someone uses your Social Security number to file a return and claim a fraudulent refund. You may find out through a rejected tax return or IRS letter, among other warning signs, according to the IRS.

☆ Medicare users still have time to change, drop 2023 Advantage Plan coverage. What to know
▼ + stars: | 2023-01-30 | by ( Sarah O'Brien | ) www.cnbc.com time to read: +2 min

This means that once you move to a different Advantage Plan or drop it for basic Medicare, the change is generally locked in for the year. "Call your doctor's office and ask what their favorite Medicare Advantage Plan is," said McClanahan, a member of CNBC's Financial Advisor Council. "They see a lot come through so they often do know which Advantage Plans cover your drug," McClanahan said. Assess drug coverage if dropping an Advantage PlanMeanwhile, dropping an Advantage Plan in favor of basic Medicare often means losing drug coverage — which means you would have to enroll in a standalone Part D plan. That charge is 1% of the national base premium ($32.74 for 2023) for each full month you go without drug coverage.

☆ 'Buy the latte,' says CFP—save more by focusing on 'needle movers' instead
▼ + stars: | 2023-01-28 | by ( Ryan Ermey | ) www.cnbc.com time to read: +4 min

These days, Camp is a certified financial planner and owner of Camp Wealth, where her advice to clients skews a little differently. Here's why she says you're better off focusing on one-time, major financial moves rather than dwelling on the day-to-day. "If I don't buy a latte every day, it will save me a good $2,000 a year," she says. If a car is totally necessary, even "buying a car that's a few years old rather than a brand new one" can be a needle-mover, Camp says. To that end, "knowing how to really effectively negotiate your salary and knowing your worth are really important," says Camp.

If you've been debating whether to file your taxes early this year, tax experts say there are now several reasons that might be a good idea. "It’s safe to assume your Social Security number is in the hands of someone you don’t want to have it," Long said. If you are exposed to identity theft-related tax fraud, the process to file your real return could be onerous, she said. There are other reasons filing early could prove beneficial, especially if you're owed a refund. For many people who expect larger refunds, she said, filing early will help pay for, or help you plan for, expenses for the rest of the year.

☆ Unemployment is lasting longer for more Americans—here are 3 ways to boost your savings
▼ + stars: | 2023-01-27 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +3 min

Layoffs and extended periods of unemployment are a few of the many reasons you might have to use your emergency fund. Use these tips to beef up your emergency fund, whether you're just getting started or looking to add extra cushioning. Ideally, you'll be able to routinely put money toward both your emergency fund and retirement savings, but if you have to pick one, prioritize emergency savings first. Your emergency savings, on the other hand, should be readily available, such as in a high-yield savings account. Plus, when you're young, you have time to catch up on your retirement savings.

☆ IRS warns tax refunds may be 'somewhat lower.' With high inflation, that's a 'double whammy' for families, says advisor
▼ + stars: | 2023-01-26 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Bill Oxford | E+ | Getty ImagesIf you're banking on a tax refund, it may be "somewhat lower" than last year's payment, according to the IRS. Meanwhile, many Americans are still struggling financially, with nearly one-third relying on their tax refund to make ends meet, a recent Credit Karma survey found. Joe Buhrmann, a certified financial planner and senior financial planning consultant at eMoney Advisor, said smaller refunds and high inflation may be a "double whammy" for some families. Thanks to the American Rescue Plan of 2021, many families got a boost from the enhanced child tax credit, worth up to $3,600 per child, and child and dependent care tax credit of up to $4,000 per dependent. For 2022, the child tax credit dropped back to a maximum $2,000 per child, and the child and dependent care tax credit reverted to $1,050 per dependent.

☆ Interest rates are high. Here’s a relatively safe way to squeeze more from your cash
▼ + stars: | 2023-01-25 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Be aware that money market accounts offered by a bank are subject to protection from the Federal Deposit Insurance Corp. This isn't the case with money market funds, which can't guarantee that you won't lose money. When shopping for a money market fund, look for offerings that hold high quality underlying investments, and be sure to keep an eye out for fees. Money market funds that Lawrence likes include the Federated Hermes Prime Cash Obligations Fund (PCOXX) and the Fidelity Tax-Exempt Money Market Fund Premium Class (FZEXX). Unless they're tax exempt, money market fund income is subject to federal, state and local taxes.

☆ The average tax refund was over $3,000 last year—here are the best ways to use yours at every age
▼ + stars: | 2023-01-24 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +4 min

While getting a large tax refund may mean you should reconsider your withholdings, in general there's nothing wrong with preferring to take the refund route. Anyone receiving a significant refund check, however, may want to use that cash strategically to work toward various money goals. A few hundred dollars from your tax refund can give your emergency fund, 401(k) or other retirement account a nice boost. Many people also become parents in their 30s, which can drastically change your financial goals. Your tax refund may not be large enough to completely tackle a big money goal, but small steps can still make an impact.

☆ These are the key tax forms you need to file your return — and when to expect them
▼ + stars: | 2023-01-24 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

pcess609If you're expecting a refund this season, it's critical to file a complete and accurate tax return to avoid "extensive processing" and delays, according to the IRS. Whether you're working with a tax professional or filing on your own, here's what to know about your tax forms — and when to expect them. When to expect your tax formsWhile most tax forms have a Jan. 31 deadline, others aren't due until mid-February or beyond, said certified financial planner John Loyd, owner at The Wealth Planner in Fort Worth, Texas. Regardless of your situation, it's important to have all the necessary forms handy before filing your return, Loyd said. Review last year's return 'page-by-page'If you're not sure which tax forms to expect, experts say last year's tax return is a great starting point.

☆ Tax filing season has kicked off. Here's how to get a faster refund
▼ + stars: | 2023-01-24 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Drakula & Co. | Moment | Getty ImagesHow soon to expect a tax refund after filing your returnTypically, you will receive a refund within 21 days if you've filed an accurate, electronic return with direct deposit for the payment, according to the IRS. The timeline changes if you're claiming the earned income tax credit — a tax break for low- to moderate-income workers — or the additional child tax credit. While your finances may change from year to year, your 2021 tax return may provide a rough guideline of what to expect, she said. "Filing an accurate tax return can help taxpayers avoid delays or later IRS notices," the agency said in a recent news release. Always double-check your tax return

☆ Record high share in U.S. report delaying medical treatments due to costs — here's how you can save on health care
▼ + stars: | 2023-01-20 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

Iona Studio | Istock | Getty ImagesMore people in the U.S. are deciding to hold off on medical care for financial reasons. That percentage is the highest since the polling organization began taking the measurement in 2001, at which point 19% of people answered they'd postponed health care because of money. Sometimes, doctors leave a network, McClanahan said, so you want to check this again if you haven't seen a provider in some time. Your deductible is the amount you have to pay for your health care before your coverage kicks in. If you reach your deductible, you might want to squeeze in other care or treatments within the same year to cut costs, McClanahan said.

☆ Google bonus delay has a windfall lesson for workers: ‘Don't have it spent before it gets there,’ says advisor
▼ + stars: | 2023-01-20 | by ( Greg Iacurci | ) www.cnbc.com time to read: +2 min

A pedestrian strolls on the Google campus in Mountain View, California, on Jan. 27, 2022. David Paul Morris/Bloomberg via Getty ImagesGoogle is delaying full year-end bonus checks by a few months, simultaneously demonstrating a keystone tenet of household finance: Don't count on money you don't have in hand. The investment bank earlier this month announced job cuts for up to 3,200 employees, or 6.5% of its workforce. watch nowAcross all industries, small businesses slashed 2022 bonuses by 9.7% to an average $526, down from $582 in 2021, according to Gusto, a payroll provider. They shrank most — by 10.7% — among financial companies, law firms and others in the "professional services" category.

☆ Higher Social Security cost-of-living adjustments may affect your taxes. Here's how to plan
▼ + stars: | 2023-01-20 | by ( Lorie Konish | ) www.cnbc.com time to read: +2 min

Social Security recipients are just starting to see the record 8.7% cost-of-living adjustment in their monthly checks. Last year's 5.9% cost-of-living adjustment was like getting a 6% wage bump in 2022, according to Mary Johnson, Social Security and Medicare policy analyst at The Senior Citizens League. A recent survey by The Senior Citizens League found 57% of older taxpayers worry more of their Social Security benefits will be taxed due to last year's 5.9% cost-of-living adjustment. More from Personal Finance:What the U.S. debt ceiling could mean for Social Security and MedicareApproaching 62? However, beneficiaries would be wise to get a jump on their tax planning for next year to mitigate the effects of the 8.7% cost-of-living adjustment.

☆ Lack of financial literacy cost 15% of adults at least $10,000 in 2022. Here's how the rest fared
▼ + stars: | 2023-01-19 | by ( Sarah O'Brien | ) www.cnbc.com time to read: +3 min

A report from the National Financial Educators Council shows that 38% of individuals in a recent survey said their lack of financial literacy cost them at least $500 in 2022, including 15% who said it set them back by $10,000 or more. The majority (68%) of respondents said poor financial literacy cost them somewhere from zero to $499. For instance, adults correctly answered, on average, 50% of the 28 basic money questions in the 2022 TIAA Institute-GFLEC Personal Finance index, the sixth annual barometer of financial literacy. Financial literacy is 'a key tool in the toolkit'Advocates of financial literacy say the teaching needs to start before teens reach their high school graduation. "There's good data showing people make better decisions when they have financial literacy," said Nan Morrison, CEE president and CEO.

☆ Investors can boost income with this strategy, but should be aware of the risks
▼ + stars: | 2023-01-18 | by ( Carmen Reinicke | ) www.cnbc.com time to read: +4 min

A foray into the world of options trading could give some investors a way to make money without deploying tons of cash in securities – but they should make sure they understand the risks first. A few important caveats While the strategy may sound simple – basically, it's betting on a stock going up – the process is a bit more complicated. First, such contracts require investors to promise to purchase 100 shares of a stock or ETF. While you get to keep the $500 premium, you've spent $9,000 on a stock that's fallen in value. Boneparth added that for most investors, options trading might not be a great idea because it might not add value and could instead be a distraction.

☆ There's still time to avoid a penalty for fourth-quarter estimated taxes — but the clock is ticking
▼ + stars: | 2023-01-17 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

There's still time to avoid a penalty if you didn't pay enough taxes in 2022 — but the clock is ticking. If you are self-employed or receive income from gig economy work, investments and more, the deadline for your 2022 fourth-quarter estimated tax payment is Jan. 17. Your payment may reduce your 2022 tax bill and bypass extra penalties and interest, according to financial experts. You can also make payments through your IRS online account, which provides access to payment history, or digitally through the Electronic Federal Tax Payment System. You can see other options through the IRS payments website.

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