Welcome to NerdWallet’s Good Cash podcast, the place we reply your real-world cash questions. On this episode:
Study savvy grocery saving and skilled tax submitting tricks to bolster your funds and ease tax season stress.
This Week in Your Cash: How will you slash your grocery payments and nonetheless eat wholesome meals amid rising prices? What’s new for this yr’s tax season? Hosts Sean Pyles and Sara Rathner focus on saving cash on groceries and simplifying tax submitting that can assist you perceive tips on how to eat sensible, save large, and conquer tax season with ease. They start with a dialogue of frugal grocery procuring, with suggestions and methods on evaluating unit costs, the advantages of curbside pickup, and incorporating a plant-based weight-reduction plan. NerdWallet’s Alana Benson joins Sean and Sara to elucidate how she saved $800 on groceries over 5 months, highlighting the monetary and well being advantages of a plant-based weight-reduction plan and giving sensible suggestions for many who are fascinated with chopping prices.
At the moment’s Cash Query: Bella Avila from NerdWallet’s tax crew joins Sean and Sara to debate IRS updates for this tax season, together with the brand new Direct File tax submitting software program and an replace to plain deductions. In addition they demystify tax brackets, clarify tips on how to get your tax refund quicker, and weigh the professionals and cons of consulting with an expert advisor for personalised monetary steering.
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Episode transcript
This transcript was generated from podcast audio by an AI software.
Hey, Sara, what’s your go-to tip to economize on groceries?
So if you’re on the retailer, and also you’re trying on the worth of an merchandise on a shelf, additionally take a look at the worth per ounce or worth per unit. That is the smaller quantity on that label on the shelf. In some circumstances, it could be cheaper to purchase two smaller containers and have the identical quantity of an merchandise versus shopping for one larger one.
I am all about curbside pickup. That saves me time, and it additionally stops me from shopping for random groceries that I don’t want.
That is nice as a result of time is cash.
Completely. Effectively, this episode, we’re going to assist our listeners get monetary savings on their groceries. Welcome to NerdWallet’s Good Cash Podcast, the place our objective is that can assist you make smarter monetary selections one cash query at a time. I am Sean Pyles.
This episode, we’re going deep into tax season 2024, answering questions like, what’s new about submitting this yr? When will I get my refund? And do I’ve to?
The reply to that final query is unfortunately sure as a result of, as we all know, demise and taxes are the 2 issues nobody can keep away from. However earlier than we get into that, we’ll go grocery procuring, which is a way more lighthearted subject normally, and we’re going that can assist you avoid wasting cash whereas we achieve this.
Yeah, this isn’t precisely grocery store sweep, but it surely’s as shut as we’ll get on Good Cash. We’re speaking with NerdWallet author Alana Benson about how she saved $800 on groceries over 5 months by altering the best way she retailers. Alana, welcome again to Good Cash.
So Alana, we normally have you ever on right here to speak about investing, however you lately wrote an article about the way you saved some critical money by looking for groceries in a brand new means. So what’s your secret?
It is humorous as a result of I am already such a cut price hunter. I’ve all of the coupon apps in my telephone, and I comply with all of the little recommendation for saving cash on the retailer. However this one simply sort of fell into my lap, and I by no means actually heard about it earlier than, and the key was simply consuming far more crops.
And this all began as a result of I used to be having some well being points, and my healthcare supplier simply really useful growing my veggie consumption. And after a few months, I used to be like, “Huh, my grocery invoice is means decrease than it was.” And I hadn’t even thought in regards to the potential monetary financial savings at first.
Yeah. Okay. So how precisely is looking for extra veggie-focused meals extra reasonably priced? Had been you simply shopping for lentils in bulk?
Yeah, just about, actually. Lentils and chickpeas. And seems they’re simply far more reasonably priced than meat. So my focus was by no means actually on chopping something out of my weight-reduction plan. I attempted to simply deal with including in a bunch of crops, however one factor that made it simpler was simply swapping issues in. Like lentils and black beans for floor beef and tacos, for example. And also you add the identical spices, you have got guac, the chipotle aioli, and it actually felt fairly comparable aside from the associated fee.
And as time went on, I ended up simply saving increasingly more cash, and apparently that is fairly typical. A 2021 research from Oxford College discovered that vegan diets cut back meals prices by as a lot as 1/3. And if you consider it makes numerous sense. So in October of 2023, the typical value of a pound of floor beef was over $5. And if you happen to change that meat with chickpeas, you may anticipate to pay round a greenback for a 15-ounce can. So if that is the one change you make, and even if you happen to simply do it a few instances per week, it may possibly find yourself saving you some huge cash in the long term.
That is actually fascinating. So I wish to go extra into the well being advantages that impressed this modification in your weight-reduction plan and had these nice monetary outcomes for you. Are you able to discuss with us extra about that?
Positive. And earlier than we get into this, I simply wish to say I’m not a physician. I am not a nutritionist, and that is solely based mostly on my private expertise, and meals is a really, very private factor, and I simply wish to make it abundantly clear that we aren’t recommending any means of consuming right here.
However as you had been saying, yeah, I would been coping with some fairly intense abdomen issues for some time, and I heard a few podcast the place there was a specialist speaking about how a plant-based weight-reduction plan might assist with my situation. And I had a member of the family who additionally noticed numerous well being advantages doing the same factor. So I figured it was simply value a strive. And at that time, I used to be three years into attempting to repair my abdomen issues, and I hadn’t had any success with conventional medication, so I form of figured simply why not strive it?
Yeah, I imply, such as you mentioned, you had been including and never subtracting, and subbing out floor beef for chickpeas wasn’t actually going to make your scenario worse. So positive, completely. Why not?
The naysayers may say that vegetarian diets aren’t precisely identified for being thrilling. Should you’ve ever seen a bag of tan lentils, it is probably the most boring-looking factor of all time. And I say this as someone who has tan lentils in my cupboard in my kitchen proper now. And in addition, many individuals may suppose that not consuming meat, particularly if you happen to minimize it out of your weight-reduction plan solely, signifies that you are depriving your self of not simply diet, but additionally scrumptious meals. So how did you’re employed by means of these challenges and make your self each scrumptious and nutritious meals?
Yeah, there’s loads there. So I’ve all the time been a foodie. One in all my favourite issues once I’m touring is to simply go tremendous laborious on the native delicacies. If that is cheese, wine, meat dishes, no matter it’s, I really like that. And I’ve all the time sort of hated greens. Steamed broccoli is probably the most disgusting factor within the universe to me.
So, at first, it was undoubtedly a problem, and I wasn’t positive the way it was going to go, however I began out actually, actually sluggish. So the very first thing that I did a few yr in the past was to chop out dairy after I would been including in some greens. And it seems that I am very lactose illiberal. In order a lot of a bummer as that was, I did really really feel fairly a bit higher actually quick. And so it turned like, “Okay, do I wish to really feel fairly sick from consuming this, or do I wish to really feel higher?” And for me, that simply… personally, that was a alternative that turned fairly straightforward.
After which I sort of simply began going to the grocery retailer, and I challenged myself to simply select one new vegetable that I would by no means tried earlier than and add it into my present meals. So in the future, I’d strive a romanesco, after which I attempted a kohlrabi, and I simply form of found out what I favored, what I did not like, and sort of tips on how to put together these greens that felt a bit avant-garde to me. And that simply felt like a enjoyable exploration as an alternative of chopping stuff out. And it was a gradual change. And over time, actually, my tastes change. And so as soon as I noticed the financial savings potential, that was an enormous factor too. And I nonetheless eat meat. I simply do it loads much less typically than I used to.
Yeah. I actually like your spirit of exploration with this as a result of I additionally eat a largely vegetarian weight-reduction plan. I am not tremendous strict as a result of absolutism is simply not how I dwell my life. However once I was re-getting right into a vegetarian life-style, as a result of I did this in faculty as nicely, what helped me was discovering enjoyable recipes to check out.
So I acquired a great cookbook that had fairly accessible recipes, and I simply dove in, and I used to be like, “Okay, I’m going to make that lentil soup to start out with, after which I will department out and make this actually wild pasta that I would by no means even imagined earlier than with chickpeas and all types of enjoyable spices in it.” And that simply opened up my world to new methods of consuming, and I additionally saved an honest amount of cash whereas I used to be doing that.
Yeah. There’s numerous methods to seek out that inspiration. I discovered numerous actually nice recipes on TikTok, and on TikTok, you may see them in motion. You see the sauce and all the things, and so it makes it really feel actually attractive. And I began choosing up magazines once more with recipes, just like the bodily ones, and for some motive that was useful.
One other trick is to consider worldwide delicacies or international delicacies and take a look at recipes from areas that sort of naturally gravitate in direction of extra meatless dishes or dairy-free dishes, simply because in these elements of the world, dairy or meat is not as well-liked or accessible. So these are the sorts of issues in the event that they’re simply naturally not in that recipe, you do not actually have to fret about subbing issues in or having it not style fairly prefer it’s imagined to as a result of they only naturally do not have these substances.
Yeah. And I would say I like to cook dinner. I’m pressed for time with cooking now that I’ve a child, and when he will get residence from daycare, I haven’t got infinite time to throw meals collectively. However simply including that problem has made me get extra inventive when it comes to the recipes that I do determine to make in the course of the weekdays. What can I meal prep early within the day? If I’ve a bit break in the course of the day, can I cube an onion and put it in a container within the fridge?
Can I cube a couple of different greens? Can I begin a recipe early? Can I do one thing within the crockpot, throw it within the morning, let it cook dinner all day so I’ve dinner prepared by 6:00 PM? So actually simply rethinking not simply what I cook dinner however how I cook dinner and what’s reasonable for my life-style proper now. And I really feel like lots of people who’re listening could be feeling the identical. There’s one thing so exhausting about realizing each day that you must hold feeding your self, and it takes effort.
You are like, “Once more? I simply did that!”
It is like, “I simply ate. Now I’ve to make extra meals.” And it is exhausting. And so honoring the place you’re, and if you happen to’re having a day the place you are able to do one thing elaborate, nice. However if you happen to’re having a day the place you simply wish to let one thing simmer on the range after which combine it up after which pour it into some bowls, that is additionally legitimate. And that’s one thing that retains cooking sustainable for me and retains me from getting extra takeout, which is basically costly.
Getting takeout for 2, even from a fairly easy place, is 30 bucks, and doing that a couple of nights per week actually provides up. So simply being trustworthy with your self about how a lot effort you are prepared to place in and simply discovering recipes that really match that degree of effort actually helps.
So, Alana, you saved $800 over 5 months by switching up your weight-reduction plan. I have to ask, what did you do with that cash?
That is clearly such a traditional NerdWallet query. I really did not do something very accountable with it. However I did put it in direction of a trip in Costa Rica, which sort of felt like a bit reward for being so targeted and strategic with my vegetable consuming.
Yeah, I will name that journey self-care, and thus, it’s accountable and cash nicely spent.
Yeah, that cash was undoubtedly invested.
Not right into a brokerage account, however into you. And I really like that.
Into me, into my wellbeing.
Effectively, Alana, thanks a lot for becoming a member of us.
This episode’s cash query is arising subsequent. Stick with us.
We’re again and answering your real-world cash questions that can assist you make smarter selections about your cash. And this episode, we’re digging into tax season 2024. That’s you submitting your 2023 taxes this yr, which is 2024, in case anybody was confused about that.
So to assist us reply all types of questions on submitting your taxes this yr, together with what’s completely different this yr, if you may get your refund, and tips on how to really go about submitting your taxes, we’re speaking with Bella Avila from NerdWallet’s tax crew. Bella, welcome to Good Cash.
Thanks a lot for having me.
So earlier than we get into questions, a fast notice that Bella, Sara, and I aren’t tax execs. This isn’t monetary recommendation, just a few Nerdy meals for thought as you, pricey listener, take into consideration your personal taxes this yr. So with that out of the best way, Bella, let’s begin off with a query that could be on lots of people’s minds, particularly if they’re inclined to procrastinate. What’s the tax submitting deadline this yr?
It is April fifteenth this yr, and if that date appears to be creeping up on you a bit bit, keep in mind that you may all the time apply for a six-month extension, which extends your deadline to October. This provides you extra time to file your taxes, but it surely would not really offer you extra time to pay them.
So one other essential date individuals might wish to know: if you get that refund cash, assuming you get it, when can individuals anticipate to obtain their tax refunds after they file?
That is a bit little bit of a difficult query as a result of it actually will depend on the way you file your taxes slightly than being a particular date. Submitting your taxes on-line is certainly a technique to get your refunds sooner. Often, you may anticipate your refund about 21 days after you file your return if you happen to filed on-line, your return was error-free, and also you selected direct deposit as your refund technique. However mailing a return means the IRS might take as much as 4 weeks simply to course of it, and you may wait as much as six months to get your refund.
And if individuals wish to test the place their refunds are, there may be an app for that. The IRS has an app known as IRS2Go, that is the quantity two in there, the place you may see when your refunds ought to arrive. Additionally, if you happen to do not wish to obtain an app, you may also simply use the The place’s My Refund tracker on the IRS web site.
It is like monitoring a bundle if a bundle was stuffed with your personal a reimbursement, so-
… not too dangerous. So with all that in thoughts, let’s speak about what’s new this yr, and by this yr, I imply for 2023, tax-wise. What ought to individuals concentrate on?
Some excellent news is that the IRS elevated the earnings threshold for its Free File program. And for these of you who could be unfamiliar with that, annually, the IRS provides taxpayers entry to model identify tax software program without cost. Some software program companions even allow you to file federal and state returns without charge. So anybody who made $79,000 or much less in 2023 is eligible for this system this yr.
After which a model new factor for 2024 is that for the primary time ever, the IRS created its personal free tax submitting software program known as Direct File. Direct File’s being rolled out in phases. So it is nonetheless in its early phases, and it is solely obtainable in 12 states. It might probably’t be used to file enterprise or self-employment earnings. You must take the usual deduction, and you’ll’t declare sure credit that you simply may in any other case be capable of. After which it is also value noting that Direct File would not put together state returns.
Sean, I do know your state, Washington, is without doubt one of the 12 the place you should use Direct Recordsdata. Are you going to make use of it this yr?
I used to be going to, however then I checked out my tax scenario, and I noticed it’s a little bit sophisticated. So I will rent a CPA to do my tax return this yr, which is a primary for me, however possibly sooner or later if my taxes change into easy once more. We’ll see.
So if you happen to dwell in one of many 12 pilot states and you’ve got a easy return and also you had already deliberate to take the usual deduction, this could possibly be an choice to think about.
Okay. And talking of the usual deduction, that acquired an replace this yr. What’s occurring there?
That is proper. So when submitting, individuals can select both the usual deduction or they’ll itemize the deductions. The usual deduction is certainly extra well-liked as a result of it is simple and it advantages most individuals. It is also listed for inflation.
In order that principally simply means the quantity you may deduct will get larger annually. For this submitting season, the usual deduction has elevated to $13,850 for single individuals and people married submitting individually. It is $27,700 for individuals married submitting collectively and certified widows or widowers. After which, lastly, it is $20,800 for heads of family.
So final yr, various individuals needed to restart paying their pupil loans. Sorry, everybody. However there’s a minimum of one shiny aspect of that moreover your pupil mortgage steadiness beginning to go down once more. And that’s doubtlessly with the ability to write off pupil mortgage curiosity if you do your taxes. So what ought to of us who’ve pupil loans find out about that?
There’s one thing known as the Pupil Mortgage Curiosity Deduction that may shave off as much as $2,500 for taxable earnings for curiosity you paid on federal pupil loans in 2023. So this may be curiosity you paid on a pupil mortgage for your self or a partner or dependent. There are some stipulations, although, as a result of it’s the IRS.
You’ll be able to’t declare this deduction if you happen to’re married, submitting individually, in case your modified adjusted gross earnings is above a specific amount, if you happen to’re dependent, amongst different issues. However there may be one good factor about this, which is that you do not have to itemize your deductions to take this. I would suggest studying IRS Publication 970 for all the small print.
And for many who could be curious, how have you learnt what your tax price is, and the way is it calculated? As a result of there’s all the time people who find themselves like, “Oh, I do not wish to get a increase as a result of then it is simply going to utterly get eaten up by taxes,” which is-
So how do tax charges and tax brackets work, basically?
Yeah, that may be a frequent false impression. There are literally seven federal tax charges, and parts of your earnings could possibly be topic to completely different charges relying on which brackets you are in. A bracket divides earnings into chunks in order that it is not taxed at that one price. After which, after all, submitting statuses come into play right here too. If this all sounds actually sophisticated to you, do not fret. I will present you the way it all performs out with an instance.
So for tax yr 2023, which is the taxes we’re submitting this yr, if you happen to’re a single filer who made, say, $70,000, the best tax price you are topic to is 22%, however you wish to notice that I mentioned highest. That is a key phrase right here. Not your whole earnings is taxed on the similar price. The primary $11,000 of your earnings is taxed at 10%. The following chunk as much as $44,725 is taxed at 12%. After which it is solely that final chunk of your earnings that is taxed at 22%. However to see how this all shakes out to your particular tax scenario, you may go to our tax brackets and charges web page.
Now, let’s discuss in regards to the course of of really submitting your taxes. Many can be debating whether or not to make use of the IRS’s Direct File in the event that they dwell in a kind of 12 eligible states. There’s additionally Free File, and folk may wish to use the tax software program they have been utilizing for years. After which, in the event that they’re like me, they could be hiring somebody to do that work for them. So let’s discuss by means of the professionals and cons of every choice.
The way you file your taxes may be very particular person. It will depend on what your wants and priorities are. So some individuals may wish to file as cheaply as they’ll. Some individuals may wish to file in a means that saves them probably the most time, and the listing goes on. There are three foremost ways in which individuals file, although.
You’ll be able to file on paper, you should use tax software program, or you may work with a CPA or one other sort of tax preparer. However I will run you thru every choice. You’ll be able to file a person earnings tax return on paper by filling out a 1040 after which mailing it to the IRS. This is not essentially really useful, although, as a result of, as I discussed earlier than, if you’re owed a refund, it may possibly take fairly some time to get to you.
Yeah, I am guessing most individuals aren’t going to go the paper route, and as an alternative, they’re going to go for one thing like tax software program as a result of that is a bit bit extra user-friendly and a bit bit quicker, after all. So what ought to they find out about utilizing tax software program?
There are numerous actually nice tax software program choices on the market to select from. As talked about, the IRS runs the Free File program, after which there’s the brand new Direct File choice. After which, after all, there’s your big-name tax software program corporations like TurboTax and H&R Block that additionally supply free submitting for easy tax returns after which pay packages for extra advanced returns.
Most of those on-line tax software program are user-friendly. They ask questions in a Q&A mode after which fill out all of the types you want within the background for you. With a few of these packages, you may also improve if you would like further assist from a tax professional alongside the best way, however that’ll normally bump up the associated fee to your prep.
And a fast notice for listeners that TurboTax and H&R Block are NerdWallet companions. So Bella, how does hiring a CPA slot in? Are you able to describe who that is finest for?
Individuals who have extra sophisticated tax returns, like possibly somebody who’s self-employed or has difficult investing earnings, may select to get hands-on assist from a tax professional, however there aren’t guidelines round who can and may’t work with a tax preparer. You probably have a easy return however you simply need the additional assurance, hiring a professional might make sense for you. However simply be sure you test the credentials of whoever you’re employed with.
I will say that after a few years of waffling and whether or not to rent a CPA or not, I had a little bit of sticker shock once I came upon how a lot it was going to value me, lots of of {dollars} actually. However that mentioned, my tax scenario is a bit bit sophisticated this yr. I am attempting to reap some losses with investments. So hiring an accountant is solely one of the best ways to go for me proper now, and it is value it for the peace of thoughts.
Yeah, I used to do my very own taxes, after which, once I acquired married, not solely was I submitting collectively for the primary time, however on the time, my husband was self-employed, later I used to be self-employed. Now, neither of us are self-employed, however we have simply actually loved passing the majority of this process on to someone who is aware of much more than we do about taxes. It is in all probability a number of the finest cash we spend all yr.
It is value it to not really feel burdened and to not have one other process to perform, proper.
Yeah. Effectively, hopefully, you all have been… all of you who’re listening have been saving up. Should you suppose you may owe cash, more money in your taxes this yr, however if you happen to did not and you end up in a little bit of a bind as a result of you have got an enormous tax invoice, what are some choices which can be on the market? Can individuals make a cope with the IRS? Are there any fee plans obtainable? Does it go in your credit score report? What can individuals anticipate if they’ve an enormous tax invoice?
It is undoubtedly a actuality that some individuals may not have the means to pay an enormous tax invoice they weren’t anticipating in an enormous lump sum. However I am right here to ease individuals’s worries a bit bit. As you talked about, the IRS has fee plans, and requesting one doesn’t go in your credit score report. There are long-term and short-term fee plans, and which one is best for you actually simply will depend on your particular tax scenario. Lengthy-term fee plans can work for people who owe $50,000 or much less.
And short-term fee plans can work for people who owe lower than $100,000. On a long-term fee plan, you pay in month-to-month installments, and also you stand up to 6 years to repay your debt. Then again, short-term fee plans must be paid off inside 180 days. Be sure to learn the high quality print when making use of for fee plans, as there could also be further charges for establishing the plan for card funds, et cetera.
All proper. So, Bella, as a tax Nerd, do you have got any last phrases of knowledge for our listeners as they embark on tax season in 2024?
Taxes can undoubtedly be an intimidating subject, however there are such a lot of nice sources on the market that can assist you navigate its complexities. Prep by researching completely different submitting choices, fee plans, if you happen to want one, credit and deductions, and extra to set your self up for stress-free submitting this yr.
Nice. Effectively, Bella, thanks a lot for speaking with us.
And that is all we’ve got for this episode. Bear in mind, listener, that we’re right here for you, and we wish to hear your real-world cash questions as a result of our job is to make you smarter about your cash and assist you make good selections. So flip to the Nerds and name or textual content us your questions at 901-730-6373. That is 901-730-NERD. You can even e-mail us at [email protected] and go to nerdwallet.com/podcast for more information on this episode. And keep in mind to comply with, price, and evaluate us wherever you are getting this podcast.
This episode was produced by Sean Pyles. Kevin Berry and Tess Vigeland helped with the enhancing. Sara Brink blended our audio. And an enormous thanks to NerdWallet’s editors for all their assist. And this is our temporary disclaimer. We’re not monetary or funding advisors. This nerdy data is offered for common academic and leisure functions and should not apply to your particular circumstances.
And with that mentioned, till subsequent time, flip to the Nerds.