Money Management

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What happenedThe IRS has announced that taxpayers who need to file an amended tax return will now be able to receive their associated refunds via direct deposit. Previously, filers who had to submit an amended tax return could only receive their refunds via paper check in the mail.So whatRoughly 3 million taxpayers file an amended return each year and now those refunds can hit bank accounts automatically, allowing recipients to get their hands on that money sooner.
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“This is a big win for taxpayers and another achievement as we transform the IRS to improve taxpayer experiences,” said IRS Acting Commissioner Doug O’Donnell. “This important update will cut refund time and reduce inconvenience for people who file amended returns.”Now whatYou may need to file an amended tax return if you make a mistake on your original return that isn’t just a matter of incorrect math (generally, the IRS can reconcile math errors on its own). You might file an amended tax return due to failing to claim the right credits and deductions, or claiming a tax break you realize you weren’t eligible for.Another big reason why filers often need to amend a tax return boils down to receiving an amended tax form from an outside party, like a 1099 form. These situations generally can’t be helped.However, one step you can take to avoid having to file an amended tax return is to submit your taxes electronically. Most software programs are designed to guide you toward the right credits and deductions so you know what to claim.If you want to reduce your chances of needing to file an amended tax return even more, hire a tax professional. Even though those who file an amended tax return are now eligible for direct deposit refunds, the simple act of having to resubmit a tax return is enough to delay that money. And at a time when inflation is surging, any refund-related holdup could be extremely detrimental.Alert: highest cash back card we’ve seen now has 0% intro APR until 2024If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee. In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes. Read our free reviewWe’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. 

What happened

The IRS has announced that taxpayers who need to file an amended tax return will now be able to receive their associated refunds via direct deposit. Previously, filers who had to submit an amended tax return could only receive their refunds via paper check in the mail.

So what

Roughly 3 million taxpayers file an amended return each year and now those refunds can hit bank accounts automatically, allowing recipients to get their hands on that money sooner.

“This is a big win for taxpayers and another achievement as we transform the IRS to improve taxpayer experiences,” said IRS Acting Commissioner Doug O’Donnell. “This important update will cut refund time and reduce inconvenience for people who file amended returns.”

Now what

You may need to file an amended tax return if you make a mistake on your original return that isn’t just a matter of incorrect math (generally, the IRS can reconcile math errors on its own). You might file an amended tax return due to failing to claim the right credits and deductions, or claiming a tax break you realize you weren’t eligible for.

Another big reason why filers often need to amend a tax return boils down to receiving an amended tax form from an outside party, like a 1099 form. These situations generally can’t be helped.

However, one step you can take to avoid having to file an amended tax return is to submit your taxes electronically. Most software programs are designed to guide you toward the right credits and deductions so you know what to claim.

If you want to reduce your chances of needing to file an amended tax return even more, hire a tax professional. Even though those who file an amended tax return are now eligible for direct deposit refunds, the simple act of having to resubmit a tax return is enough to delay that money. And at a time when inflation is surging, any refund-related holdup could be extremely detrimental.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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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Do you aspire to be a landlord, from the comfort of your own home? 

Depending on where you live in this great big country of ours, you likely have several options when it comes to buying a house. I live in a neighborhood (and indeed, a city) full of multi-family houses, and in fact, I currently live in one as a renter.

While I am intending to buy a single-family home in this area (we have plenty of those too), if you like the idea of owning a home that could also be an investment opportunity, buying a multi-family house to live in (which has also been called “house hacking”) could be right for you. Let’s have a look at some pros and cons.

Pros of buying a multi-family home

Here are the bright spots to look forward to if you decide to make an offer on that charming two-family house for sale up the block.

Pro No. 1: You can be a landlord in your very own home

One way to make renting out a property to other people easier is to actually live on-site yourself. If something goes wrong in your rental unit, you’re right there to fix it (or call someone who can), and can have the peace of mind that comes from knowing that a water leak or other problem isn’t going untreated. You’ll also have the opportunity to get to know your tenant(s) as people, rather than just a monthly rent check.

Pro No. 2: It’s an entryway to real estate investing

If you’re hoping to get into real estate investing on a larger scale, buying a property so you can rent out part of it can be a good entry point. You get hands-on experience with the local housing and rental markets, and a crash course on mortgages.

Pro No. 3: You can still qualify for financing

Speaking of mortgages, you can still get financing for a multi-family home if you’re not intending to buy with cash. NextAdvisor notes that you may need a larger down payment (15%, versus as little as 3% for a single-family home) if you’re wanting a conventional mortgage for a property that has four or fewer units (more than five is considered commercial real estate). If you’re opting for an FHA loan instead, you’ll be required to live in the property.

Cons of buying a multi-family home

There are drawbacks to be found here, too.

Con No. 1: Being a landlord comes with challenges

While I would argue that the negative impression that some people have of renters is largely undeserved, it seems as if everyone who owns a rental property has at least one “terrible tenant” story. If you’re to succeed in this area, you’ll need to take the time to screen tenants carefully, and hope you end up with one who pays rent on time and isn’t disruptive or destructive.

Con No. 2: You will likely have higher maintenance costs

If you’re saving money on the purchase of a big old two-family home, expect that your homeownership costs will likely be higher. You’ll have more square feet to keep in good condition, and if the house has been a rental property in the past, it may have seen uneven repairs and maintenance over the years. It’s likely that you’ll want to live in as nice a home as possible, and your tenant(s) will also feel the same way, so if you’re not willing to put the time and money into maintaining such a home, don’t buy one.

Con No. 3: It may be harder to sell

Another possible con to buying a multi-family home is having to work harder or wait longer to be able to sell it. Not everyone has an interest in them, and so if you’re expecting a quick turnaround on a future sale, you may be disappointed.

Buying and living in a multi-family house isn’t for everyone, but depending on where you are, you may be able to get a deal on one. Consider your options and the pros and cons carefully to decide.

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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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Image source: Getty Images
What happenedAfter considerable price hikes last year, PepsiCo has said it won’t raise its prices any more in 2023. This week, the consumer giant told Reuters it’s in a “sweet spot” price wise. “We have most of our price increases for the year already in place,” said PepsiCo Chief Financial Officer Hugh Johnston.So whatIn addition to Pepsi-Cola, the company makes Lay’s, Doritos, Quaker oats, Gatorade, and a host of other popular snacks and drinks. Even if you’re not a big snacker, the news that a big name brand isn’t planning more price increases is reassuring. It adds weight to the words of economists who say the worst is over, inflation-wise.Inflation has cooled so far this year, but prices are still high — especially for groceries and housing. Unfortunately, slowing inflation isn’t the same as no inflation, or, for that matter, disinflation which would mean prices actually went down again. Throw in the ongoing warnings of a potential recession, and consumers have a lot of reasons to watch their budgets. Now whatHigher living costs have impacted many Americans’ bank account balances this year. Some have had to dip into their savings and others have taken on debt to cover the essentials. While this is understandable, it isn’t sustainable. Not only might you need the money in your savings account for other things, such as to cover a financial emergency, rising interest rates make it more expensive to carry debt.The best way to fight inflation is to reduce your costs. If you can increase your income, so much the better, but that’s not an easy option for many people. Start by making a budget and working out exactly where your money goes. Then you can look at areas where you might shave a few costs.Here are a few ideas to consider:Cancel subscription services: Subscription costs can add up, especially as you may not even be using all the services you’re paying for. Cut as many as you can — you can always re-subscribe if you find you miss them.Switch to lower cost providers: Shop around to see if you can get a better deal on your phone or internet bill, or see whether you might be able to lower other fixed costs such as insurance. Reduce your utility costs: From taking shorter showers to lowering the thermostat a little in winter, there are a number of ways you can save money on utilities. The savings from energy efficient light bulbs and switching off unused appliances can all add up. Cut your grocery spending: Whether it’s reducing the amount of food you throw away, using cash back apps, switching to generic brands, or couponing like crazy, there are a lot of ways to reduce the amount you spend at the till. Cutting back isn’t always fun. At the same time, there’s a peace of mind and sense of security that comes from living within your means. Plus, you might be surprised. Implementing smaller money-saving changes might not have such a dramatic impact on your day-to-day life.Alert: highest cash back card we’ve seen now has 0% intro APR until 2024If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee. In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes. Read our free reviewWe’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. 

What happened

After considerable price hikes last year, PepsiCo has said it won’t raise its prices any more in 2023. This week, the consumer giant told Reuters it’s in a “sweet spot” price wise. “We have most of our price increases for the year already in place,” said PepsiCo Chief Financial Officer Hugh Johnston.

So what

In addition to Pepsi-Cola, the company makes Lay’s, Doritos, Quaker oats, Gatorade, and a host of other popular snacks and drinks. Even if you’re not a big snacker, the news that a big name brand isn’t planning more price increases is reassuring. It adds weight to the words of economists who say the worst is over, inflation-wise.

Inflation has cooled so far this year, but prices are still high — especially for groceries and housing. Unfortunately, slowing inflation isn’t the same as no inflation, or, for that matter, disinflation which would mean prices actually went down again. Throw in the ongoing warnings of a potential recession, and consumers have a lot of reasons to watch their budgets.

Now what

Higher living costs have impacted many Americans’ bank account balances this year. Some have had to dip into their savings and others have taken on debt to cover the essentials. While this is understandable, it isn’t sustainable. Not only might you need the money in your savings account for other things, such as to cover a financial emergency, rising interest rates make it more expensive to carry debt.

The best way to fight inflation is to reduce your costs. If you can increase your income, so much the better, but that’s not an easy option for many people. Start by making a budget and working out exactly where your money goes. Then you can look at areas where you might shave a few costs.

Here are a few ideas to consider:

Cancel subscription services: Subscription costs can add up, especially as you may not even be using all the services you’re paying for. Cut as many as you can — you can always re-subscribe if you find you miss them.Switch to lower cost providers: Shop around to see if you can get a better deal on your phone or internet bill, or see whether you might be able to lower other fixed costs such as insurance. Reduce your utility costs: From taking shorter showers to lowering the thermostat a little in winter, there are a number of ways you can save money on utilities. The savings from energy efficient light bulbs and switching off unused appliances can all add up. Cut your grocery spending: Whether it’s reducing the amount of food you throw away, using cash back apps, switching to generic brands, or couponing like crazy, there are a lot of ways to reduce the amount you spend at the till.

Cutting back isn’t always fun. At the same time, there’s a peace of mind and sense of security that comes from living within your means. Plus, you might be surprised. Implementing smaller money-saving changes might not have such a dramatic impact on your day-to-day life.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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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One of these cars is almost 20% cheaper than it was four months ago. 

The average cost of a new car hit a record high last year at $49,507. According to Kelley Blue Book (KBB), Americans have paid above a car’s manufacturer’s suggested retail price (MSRP) every month since July 2021. Used car prices also hit an all-time high last year in April before beginning to fall. While the average new car is 5% more expensive than it was a year ago, used car prices have started to drop. The average used car cost $27,143 in December, about $1,000 less than the previous year. Some used car prices have dropped even more, especially electric vehicles. Here are the used cars with the biggest price drops.

Top 10 cars with the largest price decreases

Biggest price drops for EVs

Electric vehicles are a costly part of the overall market, with the average cost close to that of a luxury vehicle. But the average price for an EV in December was down 5.5% ($3,594) from the previous month. The average cost of a new EV sold for $61,448 and a used one was at about $42,700. Both are well above the cost of an average car.

The Tesla Model 3 saw the biggest price decrease, at close to 17% cheaper than four months ago. Tesla, which makes up 65% of all EV cars, has begun to slash the cost of its new cars as demand for EVs has dropped. Some experts believe that Tesla is dropping prices as its competitors begin to catch up, as a way to help boost demand so Tesla can continue to dominate the EV market.

Prices for the Hyundai Ioniq Hybrid dropped by 11%. Hyundai discontinued the Ioniq last year to focus on its next generation of EVs. The other two vehicles that saw a double digit decrease from September to December of last year were the Nissan Kicks (-11.9%) and Ford Mustang (-11.5%).

Used luxury car prices increase

While the used car market has seen an overall drop in prices from the previous year, some used cars saw prices increase by double digits. The top ten used cars with the biggest price increases were all luxury cars, with the Cadillac Escalade and Porsche 911 increasing by 15%. Other brands that held up well in price were Mercedes-Benz, Maserati, BMW, Acura, and Chevy’s Corvette.

If you’re in the market for a new car but don’t want to spend too much money on a car loan, the 10 cars listed here may be worth considering, as they have all gotten significantly cheaper in the past year. Despite the price drop, Tesla’s Model 3 price still makes it more expensive than gas-powered vehicles. Overall used car prices have started to drop but are still well above pre-pandemic levels. With the supply of used cars increasing, there may be greater opportunity for shoppers on a budget to purchase a car in the future.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2024

If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.

In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.

Read our free review

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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