Money Management

Don’t overlook all the valuable benefits of your Costco membership. Find out how to use your Costco membership to save money on car maintenance expenses. [[{“value”:”

Many people invest in a Costco membership to save on groceries, toiletries, cleaning supplies, and household essentials. But you can also use a Costco membership to save on other expenses. If you own a vehicle, you can use your membership benefits to save money on car maintenance expenses. Don’t miss out on these savings opportunities.

1. Get a discount on car repairs and maintenance services

If you need repairs or maintenance work done on your car, your Costco membership can save you money. While Costco doesn’t handle repairs or more thorough car maintenance work (beyond tire installation) at its clubs, the retailer partners with other service providers.

When you buy accessories and parts or get service done at a participating service center, you can use your Costco membership to save 15%. Members can get a discount of up to $500 per visit with this membership perk. Costco has a tool on its website that you can use to find a participating shop near you.

2. Get a good deal on new tires

When it’s time to replace your tires, research tire prices at your local club. Members can save money when buying tires at Costco. The company sells and installs tires from top tire manufacturers. When you buy your tires at Costco, you can get them installed for no extra charge. Many tires also come with a five-year road hazard warranty, so be sure to ask about this.

3. Spend less when buying DIY car replacement products

Your Costco membership perks can also help you save money on car products, like wiper blades. You’ll need to replace your windshield wipers occasionally when they get worn out. Many people replace their own blades instead of having this done at an auto service shop. You can buy vehicle replacement products like windshield wipers at Costco.

4. Score a discount when buying a new car battery

Here’s another way to use your Costco membership to save on car maintenance expenses. Costco sells automotive batteries from Interstate Batteries. If you need to replace your car battery soon, check to see if Costco has the best price. You can buy a battery at your local club, but the retailer doesn’t offer installation services, so keep this in mind. Customers who purchase their batteries at Costco can benefit from a 36-month prorated warranty.

5. Wash your car for an affordable price

While not available nationwide, Costco has car washes at some clubs. This service is available in five U.S. states: Arizona, California, Idaho, Tennessee, and Washington. Based on our research, a car wash costs around $7.99. If this service is available near you, check your club’s car wash pricing to see if you can save money on this maintenance expense.

Get the most from your Costco membership perks

There are many ways to use your Costco membership perks to save money. Since you’re paying $60 to $120 yearly to be a member, it’s advantageous to ensure you’re not missing out on additional services or discounts that could help you keep more money in your bank account. For additional ways to save money, take a look at our free personal finance resources.

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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.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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Filing taxes isn’t much fun, but it can have some definite financial upsides. Learn why you may want to file your return even if you don’t have to. [[{“value”:”

Believe it or not, there are some lucky Americans who don’t actually have to file a tax return this year — and you might be one of them. It all depends on your income, tax-filing status, and a few other things.

But just because you don’t have to submit a return doesn’t mean you shouldn’t. There’s a huge upside to filing your taxes that you really don’t want to miss out on.

How do you know if you need to file your taxes this year?

You may not have to file your taxes if your 2023 income was lower than the standard deduction for your tax filing status. The table below gives the standard deductions for all statuses so you can find yours:

You may also be able to skip your 2023 taxes if you paid enough in payroll taxes during the year to cover your tax liability. The IRS has resources available to help you determine whether you need to file.

There are some special situations where you may still need to file a return, even if you had little to no income last year. These include earning more than $400 in self-employment income during the year or owing alternative minimum tax.

Be sure to review the above rules carefully before determining that you don’t have to file taxes. If you guess wrong and you owe the IRS, you’ll face failure to file penalties worth 5% of your unpaid taxes per month until you file your return, with a cap of 25% of your unpaid taxes. You’ll also owe failure to pay penalties of 0.5% of your unpaid taxes per month, also with a cap of 25% of the unpaid taxes.

Why would you want to file taxes if you didn’t have to?

Filing taxes is often a smart move even if you suspect you don’t owe anything. You may have paid more in taxes throughout 2023 than you actually needed to, and that means you’re owed a refund from the IRS. But the IRS won’t give it to you unless you file a return proving what you paid in taxes throughout the year and what you actually owed.

You may also want to file a return if you believe you’ll qualify for refundable tax credits. Tax credits offer dollar-for-dollar reductions of your tax bill, and refundable tax credits can actually bring your tax liability below zero. Let’s say you owed $500 in taxes and you qualified for a $1,000 tax credit. The first $500 of that would wipe out your existing tax liability, meaning you’d owe the IRS nothing. But since it’s a refundable credit, the IRS would give you the remaining $500 as a refund.

It’s ultimately your call, but it takes most people a couple of hours to file their return with tax software, and it could result in a refund worth thousands. And if you want to file your return but don’t feel comfortable doing it yourself, you could always enlist the help of a tax professional. You’ll pay a fee, but it can get you your money with almost no effort on your part.

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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.
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Filing a tax return is fraught with many potential pitfalls. Keep reading to learn a few misconceptions about taxes. [[{“value”:”

Ah, tax season — ready to sit down with your paperwork and spend a Saturday plugging in numbers? (Or perhaps make repeated phone calls to your accountant’s office in hopes of getting your return filed ASAP so you can apply for a mortgage — maybe that’s just me.)

No matter how you’re approaching your taxes this year, there are a few pervasive myths about the process that just won’t die. Let’s tackle a few of them, in hopes of leaving you better prepared to handle everything tax season throws at you.

1. You don’t have to report all your 1099 income

Did you do a little side work outside your regular employment situation in 2023? Or maybe you’re a freelancer like me, and you juggled multiple clients who paid you without taking taxes out. If you’re now sitting on a pile of 1099-NEC forms you received from these clients, you might wonder if it’s OK to just not report what you earned from some of them, so you don’t have to pay taxes on that money.

Resist that impulse! If you received a 1099, so did the IRS — so it already knows you got paid, and will be expecting you to report the income. If you don’t, you could face a tax audit and even be penalized.

2. You have longer to pay if you get an extension

This one has the potential to cost you in fees and penalties if you fall for it. If you need more time to assemble and file your tax return, you can get it pretty easily — just file for an extension and you’ll have until Oct. 15, 2024, to file your 2023 taxes. That’s six months beyond the standard deadline of April 15, 2024 — but that extension only applies to the tax filing itself, and not any additional money you might owe Uncle Sam.

You still need to do your best to estimate what you owe and pay that by April 15. Failure to do so means incurring a penalty of 0.50% of the tax owed for each month or part of a month that it goes unpaid, up to 25%. And if you owe money to your state, you will likely also need to ask for an extension there too.

3. You should file your tax return on paper

You might assume that a paper tax return is the safer and more secure way to file your taxes — but you’d be wrong. E-filing is both safe and convenient if you use one of the best tax-filing software programs, and best of all, it’s fast. You’ll get confirmation that your return has been received, and won’t have to worry about it being lost in the mail. And a faster filing means a faster refund if you’re owed one (more about refunds below!).

4. You qualify for a home office deduction if you work from home

Here’s an easy one to clear up. Are you one of the lucky workers still allowed to toil away from home after all the saber-rattling about “back to the office” in the wake of COVID-19 achieving some sort of normalcy in our lives? I’m thrilled for you — remote work is great. But if you’re a W-2 employee (rather than a 1099 contractor or other small business owner of some kind), you don’t get to claim a home office deduction. This deduction is reserved for those of us who are self-employed.

5. You should celebrate receiving a big tax refund

Every late winter and spring, I see tons of folks on social media cheering for a huge tax refund — and I wonder if they struggled with money at any point during the year. A tax refund represents money you loaned to the government (interest free, to boot), and that would have improved your life and personal finances had you received it during the year.

Let’s say you get a refund of $3,000 when you file your 2023 taxes. Divide that by 12, and that could’ve been an extra $250 every month of 2023. What could an extra $250 per month do for you? It may have helped you pad your savings account, help fund a sweet vacation, or even just have given you more breathing room in your budget.

That said, I understand that a lot of Americans view a tax refund as a sort of “forced savings,” and that infusion of cash every spring makes their lives a bit easier when it arrives. But based on my own history of living paycheck to paycheck, I can’t help but advocate for making the changes necessary to receive more of your money in those paychecks. Consider adjusting your withholdings with your employer’s human resources department — you can figure out the change to make by using the IRS withholding calculator.

A lot of people feel stress and anxiety around tax season, and with good reason — the government knows how much money we all made, and yet we are still supposed to recalculate that number and show our work? Take a deep breath and rest easier, knowing that you are now more well-informed and less likely to fall for a few common tax myths.

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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.The Motley Fool has a disclosure policy.

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Don’t overpay for your next hotel stay. You may be missing out on a better deal. Here’s how to score a better hotel rate to spend less on vacation costs. [[{“value”:”

Travel is a big passion of mine. To afford to see more of the world, I make strategic moves that save me money on travel expenses. When I get a better deal on a hotel or flight, it frees up more money in my travel fund for other expenses like food and activities — plus it allows me to take more trips.

Hotel bookings are one of the more costly travel expenses. If you stay at a hotel for several nights, you can expect to pay a good chunk of cash. But there’s one technique that could help you score a better deal. Here’s one of my favorite ways to save money on hotel bookings.

Make a refundable hotel booking so you have flexibility

When I book a hotel for an upcoming trip, I ensure it’s a refundable booking. Some hotels offer travelers a more affordable rate if they book a non-refundable stay. But I value flexibility, so saving only a few bucks per night on a non-refundable booking isn’t worthwhile for me.

Most hotels let travelers who make refundable bookings cancel their reservations up to 48 hours in advance without penalty. This works nicely for me because I often rebook my stay later when hotel rates are more affordable.

Monitor hotel rates and rebook your stay when prices are lower

Travelers may get a better hotel rate by booking a hotel a few weeks or a couple of months in advance rather than making a booking a few days before they depart for their trip. But that doesn’t mean the rate they get a few months out will be the lowest rate the hotel offers.

It’s common for hotel rates to fluctuate, so booking in advance won’t ensure you get the best possible deal for your hotel stay. Some hotels lower their rates to encourage more travelers to book a stay. This means travelers who made refundable bookings can benefit when hotel rates drop.

If I find a better deal a few weeks before my trip begins, I save money by canceling my existing refundable stay and making a new refundable booking at the more affordable rate. This strategy has worked many times for me over the last couple of years, and I’ve saved well over $1,000.

Follow these tips for the best success

If you’re a frequent traveler who prefers staying in hotels, this booking strategy could save you hundreds of dollars yearly. But note that if you use this strategy, it’s essential to make sure you cancel the previously booked reservation. You want to avoid accidentally paying for two separate stays.

Before making a reservation, you should also review the refundable booking rules for the hotel to know how long you have to cancel if your plans change or you find a new, lower price.

How far in advance should you begin monitoring rates? I like to monitor prices starting at least a few weeks before my check-in date. If the hotel reduces the nightly rates for your travel dates, rebooking your stay could be a win for your bank account.

Don’t miss out on additional savings

As you make travel plans, look for ways to get a better deal. You can free up more cash in your vacation fund by taking advantage of hotel and flight deals. Monitoring hotel rates and rebooking your hotel accommodations could result in additional savings. Check out our personal finance resources for more ways to save money on travel expenses.

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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.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Cosigning for a personal loan may seem like a nice thing to do, but it has a lot of financial implications. Learn what to expect if you make this choice. [[{“value”:”

If someone you care about is trying to take out a personal loan but cannot qualify on their own, they may ask you to cosign for them. This would mean you’d need to provide financial details and help them fill out an application. But what exactly are the implications of this for you, both in the short term and the long term?

You shouldn’t take action and agree to cosign until you understand exactly what occurs when you make this commitment. Here’s what happens if you cosign for someone else’s personal loan.

The lender will check your credit and income

If you cosign for a personal loan, you agree to vouch for the primary borrower. Basically, you put your credit and income on the line. The creditor will consider your financial credentials to determine if you’re a qualified cosigner and to make a choice about whether to approve the loan.

Since the lender is going to evaluate you as if you were personally borrowing, you should be prepared to provide information about your income and assets. You will also likely undergo a credit check, which means an inquiry will be placed on your credit record and stay there for two years.

Inquiries impact your credit score, accounting for 10% of your score. Too many inquiries can lower your score because it looks as if you’re borrowing too much. So even before you’ve formally cosigned for the loan, your credit could be affected by your choice. And if you try to borrow in the next two years, you could be asked to explain that inquiry.

The personal loan will show up on your credit report

If the lender approves the loan and you move forward with cosigning, the loan is going to show on your credit record as a debt that you owe. There won’t be any special notation or anything on your credit record that you’re just a cosigner — it’s going to look to anyone who checks your credit like you took on the debt.

And that’s because you essentially did. Although you may have an understanding that the primary borrower will be responsible for repayment, the lender will still report the account on your record, including the balance due, any late payments made, and if the debt goes into default.

Since this account shows up on your record, lenders will count it when calculating how much you owe if you try to borrow in the future. So, for example, if you wanted to get a mortgage, this could impact the amount you were allowed to borrow for yourself.

If the primary borrower makes any late payments, those will also damage your credit and be counted against you by future lenders and in the credit scoring formula.

You could be held jointly responsible for repaying the entire loan balance

Finally, when you cosign a loan, the lender will hold you responsible for paying it just as much as the primary borrower. If the person who you cosigned for stops paying for any reason — even if they become disabled or die — the creditor is usually going to look to you to pay off the balance in full.

As you can see, a lot happens when you agree to cosign. Unless all of the above conditions are OK with you, cosigning is most likely something you should say no to. Otherwise, you could really regret it.

Our picks for the best personal loans

Our team of independent experts pored over the fine print to find the select personal loans that offer competitive rates and low fees. Get started by reviewing our picks for the best personal loans.

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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If you’re sick of the high cost of prescription drugs, you’re not alone. Find out which strategies could help you spend less on prescription medications. [[{“value”:”

If you’re feeling the strain of high prescription drug costs, you’re not alone. High healthcare and medication costs impact the wallets of many Americans. Even with a good health insurance policy, medication can be expensive.

If you’re feeling financial strain at the pharmacy checkout line, it may be time to take extra steps to lower your prescription drug costs. You may be spending more than necessary. Here are a few solutions to help you keep more money in your pocket.

1. Compare drug prices with GoodRx

Some medications are pricier than others. If you require a pricey medication for your health, you should check to see if you can use GoodRx to save money. GoodRx is a website and mobile app many people use to save on drug costs. You can use this free resource to compare drug prices at pharmacies in your area to find the cheapest place to fill your prescription.

GoodRx also has digital coupons for many popular drugs. Americans can get a lower price for some medications with a GoodRx coupon instead of using their health insurance. You can use GoodRx at most pharmacies nationwide, so make sure you’re not overpaying for your drugs.

Whether a GoodRx coupon is available or not, using this tool to find the best drug prices in your local community is worthwhile. Getting your medication filled at a different pharmacy could help you keep more money in the bank. Every dollar you save adds up and makes a difference.

2. Ask about other alternatives

It may be worthwhile to ask your medical provider whether other medications could work for your health needs. Some prescription drugs are cheaper than others. Your provider may suggest trying a different brand or switching to a generic drug to lower your prescription costs.

3. Get your prescriptions filled at a warehouse club

Many Americans invest in warehouse club memberships to save money on groceries and household goods. While you need a membership to buy everyday essentials at retailers like Costco, you don’t need a membership to use the pharmacy.

You can pick up your prescription drugs at Costco or Sam’s Club without paying a yearly membership fee. If you have warehouse clubs near your home, you may want to see if you can save money by filling your medications there instead of at your go-to pharmacy.

4. Explore patient assistance programs

Some drug manufacturers have patient assistance programs available. If your medication costs are getting out of control, check to see if any assistance programs are available. You’ll likely need to apply for assistance and meet income requirements to qualify for help. But this solution could help you save money on prescription drug costs. Don’t be afraid to explore this option.

5. Ask for a 90-day supply

Many people get their medications refilled every month. However, some medications can be ordered in bulk, and you may get a better price when you do this. Check to see if your medical provider will prescribe a 90-day supply and whether doing this could help you save some cash. This solution may not work for some medications, like controlled substances.

Get creative to find ways to save on medication costs

Unfortunately, consumers have little control over the cost of medical care and medications in the United States. But we can make strategic moves to keep our prescription drug spending in check. The above suggestions may help you lower your monthly medication spending. For additional ways to save money, check out our personal finance resources.

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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.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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