Money Management

If you have a travel credit card, it can offer benefits beyond travel promotions and reward opportunities. Find out how to save even more with your card. [[{“value”:”

Many travelers use travel rewards credit cards. These credit cards include travel-specific benefits and allow cardholders to earn valuable rewards when they spend money with their cards. If you like to travel, you may benefit by having one of these rewards credit cards in your wallet, since your card could unlock travel deals.

I’ll share a few ways you can use your travel credit card to score amazing deals so you can explore more of the world while keeping more money in the bank.

1. Book through a travel portal to get a better deal

Some travel credit cards allow cardholders to redeem rewards for travel through the card issuer’s travel portal. You can book hotels, flights, rental cars, and more. But some cards take it to the next level by providing a better redemption rate when you book travel this way.

That means your points or miles may go further if you do this instead of redeeming them for cash back or a statement credit to your credit card account. Getting a better deal on travel redemptions can save you money on your next vacation.

Two such cards include the Chase Sapphire Preferred® Card and the Chase Sapphire Reserve®. Chase Sapphire Preferred® Cardholders get 25% more value from their points when they redeem them for travel through the Chase Ultimate Rewards portal. Those with the Chase Sapphire Reserve® get 50% more value when redeeming their points for travel this way.

2. Activate money-saving offers

Another way to access deals on everyday purchases, including travel expenses, is to activate cardholder deals made available by your credit card issuer. Some credit card issuers offer additional ways for consumers to save money by earning statement credits on eligible purchases.

One example is the Chase Offers program. It often includes valuable travel deals. For example, you could earn statement credit on an eligible hotel stay after activating an offer and using your card to pay for your purchase. I currently see multiple 10% cash back offers from various hotel chains through Chase Offers.

Keep in mind that these offers are targeted for individual customers, so not all cardholders will see the same deals. But reviewing offers like these is a good idea so you can take advantage of extra savings. Earning a statement credit is similar to getting a discount on travel.

3. Transfer your points to a travel partner

Travel credit card users can also get a deal by taking advantage of travel partners made available through their card issuer’s rewards program. Some travel rewards programs allow cardholders to transfer their rewards to select airline and hotel transfer partners.

After doing this, you can use your points to book flights and hotel stays directly. You can stay alert for award travel booking deals that airline and hotel rewards programs run and plan to redeem your rewards during sales to save on travel costs. Many travelers can stretch their credit card rewards further by taking advantage of travel partner redemptions.

Don’t ignore travel credit card benefits

It pays to get the most out of your travel credit cards. In addition to using these cards to earn rewards, you can also benefit from less obvious perks that allow you to get a better deal on travel bookings. Paying less for a trip is a win for your personal finances.

If you’re looking for a new credit card, check out our list of the best travel rewards credit cards to learn more.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase and Target. The Motley Fool has a disclosure policy.

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Nobody likes spending more money than they have to. But read on to see why this writer won’t lose her cool over a Costco fee hike. [[{“value”:”

These days, a lot of people are trying to recover financially from the rampant inflation that took hold in 2022. As such, many folks are tired of seeing their bills go up.

One expense of yours that has the potential to rise at some point is your Costco membership. Right now, the cost of a basic membership is $60 a year, while an Executive membership costs $120. I pay for the latter membership because it gives me 2% cash back on my Costco purchases.

Since it’s been a really long time since Costco has raised the cost of a membership, I’m expecting those fees to go up at some point in the not-so-distant future. And while Costco CFO Richard Galanti recently confirmed that the company has no specific plans to increase membership costs, he maintained that fees are apt to increase at some point.

What’s more, Galanti is set to depart as CFO this year. And sometimes, with new management can come new changes. So while a 2024 Costco membership fee hike is by no means a given, I personally would not be shocked if it were to happen.

But I also won’t get upset if Costco raises its fees, whether that happens this year or in the future. Here’s why.

A membership will still be worth it to me

Although it’s only March, I’ve already seen a few of my bills increase since the start of 2024. So if Costco were to join that mix, I’d accept it without getting upset.

The reason? Some of my personal bills have increased this year after also going up last year. Costco, on the other hand, hasn’t raised membership fees since 2017. So if, seven years later, Costco’s management team decides that an increase is called for, who am I to complain?

Plus, even if Costco’s fees do go up a bit, I can’t imagine a scenario where paying for a membership won’t still be worth it for me.

Let’s say the cost of a basic membership rises $5 and the cost of an Executive membership rises $10, which is in line with Costco’s most recent fee hike. That means I’m looking at $130 a year for my Executive membership instead of $120.

But I can say with confidence that shopping at Costco easily saves me $20 a week on groceries and other household expenses, if not more. Multiply that by 50 weeks, and I’m saving $1,000 or more compared to sticking to a regular supermarket.

It doesn’t matter to me whether I pay $120 versus $130. Heck, even if Costco were to raise the cost of my membership to $150, I’d still happily fork over that money.

Plus, because I shop at Costco so often with my Executive membership, I’m actually able to score enough cash back to cover my fee in full. And I’d be able to do so even if it were a bit higher.

Don’t rush to give up your membership if Costco fees rise

At this point, you may be sick and tired of things getting more expensive in your life. And who could blame you?

But Costco is likely to raise fees at some point. Once that happens, don’t rush to cancel your membership. Instead, think about the value it offers you and the savings it provides you with. Chances are, you can easily justify the incremental cost.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Gala. The Motley Fool has a disclosure policy.

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Want to buy a car in 2024? There are good deals on used electric vehicles, but watch out for these pitfalls. [[{“value”:”

Getting EV tax credits on a new or used vehicle can help you save big money when buying a car in 2024 (and since your auto insurance costs may increase, it’s good to save wherever you can). But make sure you understand the rules and limits before you start shopping.

Here are five mistakes to avoid when buying a car with EV tax credits.

1. Not checking the income limits for EV tax credits

Before you start car shopping, before you start wondering if the car of your dreams will qualify for EV tax credits, make sure you qualify for EV tax credits. That’s right: the IRS has income limits for who can get EV tax credits. If you make too much money? No tax credit for you.

Here’s the maximum amount of modified adjusted gross income (AGI) to qualify:

For new EV tax credits, your income must be:

$300,000 or less for married couples filing jointly$225,000 or less for heads of households$150,000 for all other filers

For used EV tax credits, your income must be:

$150,000 or less for married filing jointly or a surviving spouse$112,500 or less for heads of households$75,000 or less for all other filers

Fortunately there is flexibility on this rule: you can qualify based on last year’s or this year’s income — whichever is lower. But if your modified AGI ends up being too high when you file taxes, you will have to repay the IRS for the tax credit. Don’t get stuck with an extra $7,500 tax bill!

2. Assuming that every new EV gets $7,500 of tax credits

The new EV tax credits of $7,500 got a lot of headlines in the media, but very few new vehicles qualify for that full amount. As of March 1, 2024, only six auto brands offer vehicles that can get the full $7,500 credit:

CadillacChevroletChryslerFordTeslaVolkswagen

And not all of these companies’ car models will get the full $7,500, either; some car companies have EVs that get only $3,750 of credits. To see the full list, check out FuelEconomy.gov.

3. Ignoring used cars

If new EV tax credits don’t seem like such a good deal anymore, you’re in luck: used EV tax credits might give you an even bigger discount. That’s because pre-owned EV tax credits add up to 30% off the sale price, up to $4,000. And you must choose a used car with a sale price of $25,000 or less.

Are you concerned about the limited selection of cars that offer new EV tax credits? Want to choose from a wider selection of foreign cars, like Toyota and Nissan? Good news: the used EV tax credit is open to a much longer list of auto brands, makes and models of electric vehicles, plug-in hybrids, or fuel cell vehicles.

Along with the “new tax credit” companies listed above, used EV tax credits let you choose from auto brands including:

AudiBMWHondaHyundaiJeepKiaLexusLincolnMercedes-BenzMitsubishiNissanPolestar AutomotivePorscheRivianSubaruToyotaVolvo

See the full list of qualifying used vehicles at FuelEconomy.gov.

4. Forgetting about plug-in hybrids

Don’t assume that the only way to get an EV tax credit is buying a fully electric vehicle. It’s understandable that some people might have range anxiety about EV batteries, especially if you can’t charge an EV at home. You don’t want to spend tens of thousands of dollars on a car, and then discover that you can’t fuel it.

Fortunately, there is a solution: plug-in hybrid electric vehicles, or PHEVs. I drive a plug-in hybrid, a 2017 Toyota Prius Prime, and I love it. It runs on gas and electricity. I can drive in silent, electric spaceship mode for 22 miles per day, as long as I remember to plug the car into my garage outlet overnight. Or I can just go to a gas station and fuel up on petroleum products; I get about 100 miles per gallon.

My 2017 Toyota Prius Prime plug-in hybrid, if I bought it today, would qualify for used EV tax credits. I wish I could’ve gotten that $4,000 discount! I really believe that plug-in hybrids can be a great solution for anyone who’s in the market to buy a car in 2024. These EV tax credits can give you a big discount on a used (or new) plug-in hybrid. But be prepared for higher car insurance costs than you’d pay on a typical gas-powered car.

5. Failing to file IRS Form 8936

The car dealership is where you actually receive the cost savings from your EV tax credits. Car dealerships know which models qualify for which credits. Dealers are required to register with the IRS and make sure everything’s done properly.

On the day you buy your EV, the dealership will have you sign a form to agree to “transfer” your tax credit to the dealership, and the dealership will give you an immediate discount for the value of the tax credit. So if you buy a $20,000 used EV that gets a $4,000 credit, your car’s sale price will actually be $16,000. The dealer will give you a “time-of-sale” report with all the details, and then you have to file IRS Form 8936 with your taxes.

Bottom line

There are good deals on electric vehicles and plug-in hybrids in 2024. EV tax credits can reduce your cost of car ownership by knocking thousands of dollars off the sale price. Just be prepared to shop around for car insurance before you shop for cars.

Our picks for the best credit cards

Our experts vetted the most popular offers to land on the select picks that are worthy of a spot in your wallet. These best-in-class cards pack in rich perks, such as big sign-up bonuses, long 0% intro APR offers, and robust rewards. Get started today with our recommended credit cards.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

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Still need to file your 2023 federal tax return? Here’s how to see if you qualify for the IRS’s Direct File pilot program. [[{“value”:”

If you have yet to file your 2023 federal tax return, it’s not too late. The federal filing deadline is over one month away. Before filing, check to see if you qualify for free tax-filing resources so you don’t waste money. On March 8, the IRS announced that the pilot IRS Direct File is open for the 2024 tax-filing season. Eligible taxpayers in 12 participating pilot states can file their federal tax returns online for free. Find out what you need to know about the pilot program.

Introducing the IRS Direct File pilot

The IRS plans to launch a free nationwide tax-filing resource in the future. But for now, the agency is testing out a limited pilot program. IRS Direct File will allow taxpayers with simple federal tax returns to file their returns electronically for free.

To qualify to use this service, taxpayers must have lived in one of 12 participating states in 2023. Depending on your state, you may be ineligible to use this service if you earned income in multiple states in 2023.

Here’s a list of the participating states:

ArizonaCaliforniaFloridaMassachusettsNevadaNew HampshireNew YorkSouth DakotaTennesseeTexasWashingtonWyoming

Users will follow step-by-step prompts to prepare and file their federal returns electronically. Live online support from IRS staff is available Monday through Friday, from 7 a.m. to 10 p.m. ET. You can verify eligibility and start preparing your federal return by visiting directfile.irs.gov.

Note: The IRS Direct File program only supports federal tax return filing. However, Arizona, California, Massachusetts, and New York taxpayers using the Direct File pilot will be directed to a state-supported tool to prepare and file their state tax returns.

Only some income, credits, and deductions are supported

In addition to residing in a participating state in 2023, other restrictions exist. IRS Direct File only supports certain types of income, credits, and deductions. If you have a simple tax return, you likely qualify. Here’s a look at what kind of tax situations the pilot program currently supports.

Income

Supported: The pilot supports W-2 income, Social Security and Railroad Retirement benefits, unemployment compensation, and 1099-INT interest income of $1,500 or less.

Not supported: You can’t use Direct File if you have gig economy earnings or business income.

Credits

Supported: The IRS Direct File supports the Earned Income Tax Credit, Child Tax Credit, and Credit for Other Dependents.

Not supported: You can’t use the pilot if you claim other credits, such as the Child and Dependent Care Credit, Saver’s Credit, or the Premium Tax Credit.

Deductions

Supported: This pilot program supports the standard deduction, education loan interest, and educator expenses.

Not supported: You can’t use Direct File if you itemize deductions.

Keep more money in your pocket

Don’t waste money on tax-filing fees. Free tax prep and filing services can help you keep more money in the bank. If you live in one of the participating states and qualify based on the type of return you’ll file, try IRS Direct File this tax season.

You may be eligible for the IRS Free File program if you don’t qualify for Direct File. Eligible taxpayers with a household adjusted gross income (AGI) of $79,000 or less can file their federal tax returns for free online.

Another tax-filing option to explore is free tax software. To learn more before you file your tax return, check out our tax-filing guide. For additional financial guidance, The Ascent also offers free personal finance resources.

Alert: our top-rated cash back card now has 0% intro APR until 2025

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Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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Tight on cash this March? Keep reading for a few options to get your daily workout in for free. [[{“value”:”

When most of us hear “free workout,” we might think of the usual free activities, like jogging outside or using those free workout machines in parks. And while those are great ways to work out for free, it can be tricky to do them when it’s cold and rainy in late winter. Unless you’re fortunate enough to have a home gym, working out at a local facility can put a hefty charge on your credit card.

Take yoga, for example. The price of an unlimited membership at my local yoga studio is $149 per month. That’s more than my monthly car insurance premium. For comparison, if I put that money each month into a 529 college savings plan with a 7% rate of return, I would have $64,550 for my daughter’s college in 18 years (real talk: that would be a lot of yoga).

However, you don’t have to blow your budget to work out. If you want to stay fit without hurting your personal finance goals, here are three ways to sweat it out for free in March.

1. Try out a new gym or fitness studio

The easiest way to get a free workout is to try out a new facility. Many fitness studios offer complimentary classes or free trials for new clients, sometimes up to two weeks of unlimited workouts. In fact, you don’t have to dig deep to find these. Often, you just have to google “free fitness classes” and your location and several studios will pop up.

Just be careful. Once your free trial is up, the studio will likely try to lock you into a membership, many of which have minimum commitments of at least three months.

Alternatively, you can get a free week at many popular gyms. For example, here are eight national brands that currently offer free trials.

Anytime Fitness: One to seven day free trial (claim pass here)Gold’s Gym: Seven day free trial (claim pass here)YMCA: Three to seven day free trial (call your local YMCA)LA Fitness: Three day free trial (claim pass here)24 Hour Fitness: Three day free trial (claim pass here)Workout Anytime: One to three day free trial (call your local gym)Planet Fitness: One day free trial (claim pass here)Snap Fitness: One day free trial (find a gym, then claim pass on separate website)

2. Ask about a trade

Many fitness studios make profits on a margin and are always looking for ways to save money. One such way is to negotiate a trade with clients: You do a service for them, they give you a free class.

For example, you could ask a gym or studio manager about getting on their cleaning list (most studios have them). You’ll be assigned a day and time to clean the facility. Then, in exchange for your service, you can attend classes for free. This is how my wife gets free yoga classes, and it’s worked in several cities, like Nashville and Portland.

If you don’t like cleaning — and I don’t blame you — you could consider another trade. For example, you could manage a studio’s social media accounts, or you could offer to style a retail section. You could also work the front desk, though this one might involve more time commitment than the free classes are worth.

3. Buddy up

Know someone with a gym membership? If so, ask to join them on their next workout. Many gyms and studios will let members bring a guest for free. For example, Planet Fitness offers free guest passes to anyone with a Black Card® membership, and 24/7 Fitness has a similar option called the Buddy Pass.

Staying healthy doesn’t have to cost you extra, especially if you’re not limited to one style of exercise. And don’t rule out unconventional workouts — cleaning your home, for example, is a free and productive way to get your heart rate up. And if you do end up paying for a gym, check out some of our best cash back credit cards to earn some of that membership money back as a reward.

Alert: our top-rated cash back card now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.

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