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Smart Tax Planning

If your adjusted gross income for 2023 was $79,000 or less, you can use IRS Free File for federal tax returns this season.
Some 70% of taxpayers — roughly 100 million Americans — are eligible for IRS Free File, but only about 3% used it last year, according to Tim Hugo, executive director of the Free File Alliance.

Valentinrussanov | E+ | Getty Images

If you’re eager to save money filing your taxes this season, there’s a free option that’s used by only a fraction of eligible taxpayers.
Established in 2002, the program, known as IRS Free File, is a public-private partnership between the agency and the Free File Alliance, a nonprofit coalition of tax software companies. There are eight partners for 2023 filings.

Free File offers guided tax software for federal returns for taxpayers below a certain income and some partners also offer state filings. Some 70% of taxpayers — roughly 100 million Americans — are eligible for Free File, according to Tim Hugo, executive director of the Free File Alliance. But only about 3% of filers used the program last season.

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Here’s a look at more tax-planning news.

While the IRS is launching its Direct File software pilot this season, the agency said in a January press release that Free File is still a “great way to claim valuable tax credits,” such as the child tax credit and earned income tax credit.
“Through the years, Free File has helped millions of taxpayers, and it remains an important option for people to consider using to quickly and easily file their taxes,” IRS Commissioner Danny Werfel explained in the release.

How to qualify for IRS Free File

For 2023, you can use Free File with an adjusted gross income of $79,000 or less, which is up from $73,000 in 2022. Free File also offers Fillable Forms for all income levels, which is the electronic version of a paper filing, Hugo said.
You calculate adjusted gross income by taking your total earnings and subtracting “adjustments,” such as certain pretax individual retirement account contributions and student loan interest. Pretax 401(k) contributions also reduce your total income.

While there are software options for anyone who made $79,000 or less, each partner has different eligibility requirements, based on age, income and residency. You can use this tool to find the best software partner.

IRS Free File partners for 2024 season

1040Now
Drake (1040.com)
ezTaxReturn.com
FileYourTaxes.com
On-Line Taxes
TaxAct
TaxHawk (FreeTaxUSA)
TaxSlayer

IRS Free File is ‘not just for simple returns’

While complicated filings may need professional guidance, Free File can handle more tax situations than you may expect.
“Free File is not just for simple returns,” Hugo said.
Free File partners aren’t required to cover all federal income tax forms and schedules. But the software will include the “most commonly filed,” according to the IRS.
For example, you can file Schedule B for interest and dividends or Schedule C for self-employment, contract or gig economy work, Hugo said. There’s a full list of available forms and schedules here.
You can also file for an extension through Free File, which moves your filing deadline to Oct. 15. However, most filers still must pay taxes owed by the original deadline of April 15.

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It seems that every month Rep. James Clyburn is pushing for more relief for the country’s 40 million student loan borrowers, and he often mentions the issue of education debt in his television news appearances.
Here’s why the congressman cares so much about the issue.

House Democratic Caucus Chairman James E. Clyburn, D-S.C., during an interview in his hideaway in the U.S. Capitol. 
Scott J. Ferrell | Cq-roll Call, Inc. | Getty Images

WASHINGTON, D.C. — On a recent Sunday afternoon, Rep. James Clyburn, D-S.C., was attending a church service in his hometown of Sumter, South Carolina, when a member of his staff handed him a letter from a constituent.
The man was writing to share the pain his student debt had caused him, and to thank Clyburn and President Joe Biden for their recent actions. After more than three decades of payments, he’d gotten over $100,000 of his debt forgiven.

“My staff tell me these phone calls come in all the time,” Clyburn said to CNBC. “About half of them are crying on the phone about what a relief this is.”
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The Biden administration has reformed the government’s programs that lead to student loan forgiveness, resulting in more than 3.7 million Americans receiving debt cancellation, for a total of $136 billion in aid. After the Supreme Court blocked the president’s sweeping debt forgiveness plan, which erased up to $20,000 for tens of millions of people, Biden directed the U.S. Department of Education to work on a narrower debt relief package that would stand better legal chances.
Clyburn has played no small part in all of this.
It seems that every month the congressman is pushing for more relief for the country’s 40 million student loan borrowers, and he often mentions the issue of education debt in his television news appearances.

Clyburn counts student loan debt as “the biggest” issue facing Americans today, in part because failing to address it exacerbates other crises.
“You’re not going to solve the climate crisis unless you’ve got well-educated and trained people to do it,” he said. “You’re not going to solve the health-care crisis without doctors and nurses. And student loan debt is the best way to go.”
These days, Clyburn is thinking about how student debt could impact the 2024 presidential election. He is worried many voters don’t understand it was the Supreme Court’s conservative majority that ultimately stopped Biden’s biggest plan for forgiveness.
CNBC sat down with the congressman in late January in his office to discuss the student loan crisis and voters. (The interview has been edited and condensed for clarity.)

‘Forgiveness can’t reach everybody’

Annie Nova: At 83, you’re one of the oldest members of Congress. Student debt is largely considered a young person’s issue (although we know it impacts older people, too). Why do you care so much about the subject?
Rep. James Clyburn: I think one of the worst things about politics on this Hill is that everybody reduces everything to the person. I was not put on this earth for my own sake. Sometimes my brother says, “Maybe our religious upbringing was a curse” And maybe it was. But I don’t ever go to bed at night regretting having lived a day. I regret having to interact with some of the people I interact with.
AN: The Biden administration has forgiven a lot of student debt, but I often hear from borrowers who’ve been left out of the relief. A lot more, they say, still needs to be done.
JC: When I first discussed student loan debt with the president, I had a piece of legislation giving $50,000 in debt elimination to students. Joe Biden would never buy into that.

AN: Was that number too much?
JC: I didn’t say it was too much. It wasn’t the way he thought it should be done. I found out later, he was right. If I had given $50,000 to someone to pay off a $300,000 debt, they would still owe $250,000. Instead, the president said, ‘Let’s fix these programs that we have.’ Forgiveness can’t reach everybody. What you have to do is have a process that everyone can qualify for.

‘How can you blame Biden for the Supreme Court?’

AN: But the plan Biden did ultimately announce would have forgiven $400 billion in student debt, and impacted tens of millions of people.
JC: How can you blame Biden for the Supreme Court? I don’t see a single woman that blames Biden for the Dobbs decision. [In Dobbs v. Jackson, the justices overturned Roe v. Wade, the landmark ruling that established the constitutional right to abortion.] We have a right-wing Supreme Court that is intent on maintaining an underclass.
AN: Do you think voters understand that it was the Supreme Court that blocked the president’s broad forgiveness plan?
JC: No, they don’t. They’re blaming the president for it. I think it would be nice if people said, “To his credit, he tried. But the Supreme Court stopped him. So he went this other route.” You have $136 billion in debt forgiveness, and he’s not supposed to get credit for that? There’s something about Joe Biden that people just don’t give credit to.

AN: So how can you change that ahead of November?
JC: Well, going forward, I’m told by the Department of Education, that every two months for the next four years, another 75,000 people will be eligible to have their debt forgiven. That’s under the Public Service Loan Forgiveness program and income-driven repayment plans.
AN: What would another Trump presidency be like for student loan borrowers?
JC: I’d say to any young person, “Who do you want to be in charge of this country when your future arrives?” This country holds too much promise for us to allow it to go the way of Germany or Italy. All those people paid a hell of a price for taking a gamble on democracy.
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Few college admission cycles have been as tumultuous as this one.
As schools are forced to rethink their policies in the wake of the Supreme Court’s ruling against affirmative action, it’s not an easy time to be a college applicant, especially for students of color.
And then there is the issue of financial aid.

With competition at an all-time high and admissions practices increasingly unclear, it’s not an easy time to be a college applicant, especially for students of color.
The Supreme Court’s ruling against affirmative action was considered a massive blow to decades-old efforts to boost enrollment of minorities at American universities through policies that accounted for applicants’ race.

“In terms of ensuring access to higher education and income opportunities, the barriers are already so high,” said Cara McClellan, director of the Advocacy for Racial and Civil Justice Clinic and practice associate professor of law at the University of Pennsylvania Carey Law School.
However, this year’s admissions cycle, which marked the first in which race was not considered, is already reflecting an unexpected dynamic.

College application volume is rising

As of Jan. 1, college application volume rose 9% in the 2023-24 academic year compared with a year earlier, according to the latest report by the Common Application.
More students are applying overall, and a larger share of applicants identified as an underrepresented minority. The percentage of first-year applicants identifying as Black or Latino jumped 12% and 13%, respectively, year over year, outpacing other groups.
At the same time, colleges are seeing an increase in first-generation applicants and international students, the Common App found.

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Experts predicted the Supreme Court’s ruling would encourage colleges to put more weight on students’ household income and their regional background to diversify their student bodies.
Already, the number of applicants from below-median-income ZIP codes is notably higher, rising 12%, while more students requested a fee waiver, which is often used as a proxy for low-income status, according to the Common App.
These changes may be explained, in part, by an effort on behalf of colleges to enhance their recruitment efforts and financial aid awards, according to Bryan Cook, director of higher education policy at the Urban Institute.

It’s possible the numbers may not be as stark as people think.

Bryan Cook
director of higher education policy at the Urban Institute

“It’s possible the numbers may not be as stark as people think,” Cook said of how this year’s changes will be reflected in next year’s freshman class. “What may mitigate the decline is schools trying to work around this.”
However, research also shows that when states end affirmative action, the class makeup significantly shifts, added Elise Colin, a research analyst at the Urban Institute.
After the University of California eliminated affirmative action in 1996, the share of underrepresented groups fell 12% in the years that followed. When the University of Michigan banned race-conscious admissions, Black undergraduate enrollment at the school dropped by nearly half from 2006 to 2021, according to the Urban Institute. 
“Even when they tried to use other methods to increase diversity, that didn’t make up from the loss of affirmative action,” Colin said.

Advocates have warned that the ability to maintain racial and ethnic diversity would likely be under pressure and it may be a while before the impact of the high court’s ruling against affirmative action is entirely clear.
“Some institutions in the face of the Supreme Court’s decision, which has created a lot of uncertainty, are being incredibly thoughtful in how they can achieve their mission. But it requires real commitment,” McClellan said. 

The financial aid factor

For many families, the price tag is the most significant sticking point when it comes to college access. With financial aid awards delayed this year due to the rollout of the new Free Application for Federal Student Aid, or FAFSA, high school seniors are under even more pressure to decide on college with less time to weigh the financial implications.
Meanwhile, would-be college students have been looking more closely at the return on investment and the growing student loan balances that often go hand in hand with a degree, other reports also show. 

The costs associated with an undergraduate education have greatly outpaced the general cost of living over the past few decades, leading to the spike in student loan debt, according to a recent report by Wells Fargo.
The share of Black households that have student debt is 14 percentage points above the comparable share among all families, the Wells Fargo report found. Black households also tend to borrow more than other households to finance a higher education.
And because of historic racial and economic inequities, Black student loan borrowers struggle to repay their debt more than their white peers.
“This becomes another barrier for students who are underrepresented and under-resourced,” McClellan said.

In some ways, the student loan crisis has overshadowed higher education’s proven success, said Liz Cheron, CEO of the Coalition for College, which aims to promote college access.
However, for students going through the college admissions process this year, these are hefty challenges to navigate, she noted.
“The reality for students and families is that this is outside their control,” she said. “We have to trust that colleges and universities are working as hard as they can to innovate and create solutions in a more limited environment.”
“I’m really hopeful with this challenge that the collaboration and innovation and creativity really will allow for us to encourage diverse student audiences to pursue higher education,” she added.
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It’s not uncommon to turn to material possessions to fill the void created by isolation.
Being part of a community can be more rewarding than the temporary satisfaction that comes from spending.
Even small acts of kindness can make us braver and bolder in connecting with people.

Maskot | Maskot | Getty Images

It’s all too easy to fall into a rhythm of mindless spending in the hustle and bustle of modern life.
This cycle of buying and seeking can leave us feeling empty, constantly chasing a happiness that always seems just one purchase away. But what if the key to a genuinely fulfilling life lies in turning toward the people around us, our communities?

Research conducted by Cigna and Morning Consult in 2022 reveals a startling truth: 58% of U.S. adults feel lonely. This number may feel palpably higher in cities, where individualism often overshadows communal living, especially for women who navigate these spaces independently.

Pitfalls of emotional spending

It’s not uncommon to turn to material possessions to fill the void created by isolation. Nearly half of Americans admit they’ve spent money to improve their mood, according to a recent LendingTree survey. Women are far more likely to engage in this behavior than men, at 57% vs. 40%.

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Yet this feeling tends to be fleeting. Nearly two-thirds of shoppers who have experienced buyer’s remorse regretted their purchase because it was unnecessary, according to a 2023 Google/Ipsos poll.
Then, of course, there are the financial consequences of mindless spending.
The average single female spends 110% of her monthly after-tax income, while men spend 95.8%, according to data compiled by Capital One Shopping. Over time, these habits of living paycheck to paycheck and overspending can lead to financial instability and strain, impeding progress toward longer-term goals.

The transformative power of community

Suppose mindless spending merely addresses the symptoms of loneliness rather than the underlying issue. How can we overcome the emotional load of social disconnection without falling into the trap of consumerism?
The answer may lie in the power of building a community.
Being part of a community provides a sense of belonging and identity. This connection to others can be more rewarding than the temporary satisfaction that comes from spending. For example, research indicates that the stronger our sense of belonging, the better our mental health and well-being.

In addition, communities provide opportunities for shared experiences, learning, and personal growth. Engaging in community events or projects creates memories and builds skills that enhance one’s life more than material possessions.
Beyond benefiting our emotional and physical wellness, community may also be favorable for our finances. In a Money and Mental Health survey of nearly 5,500 people, 72% of respondents said mental health problems made their financial situation worse, underscoring the profound connection between emotional well-being and financial stability.

How to forge connections

Alistair Berg | Digitalvision | Getty Images

Connecting with others is knowing your neighbors’ names or attending your neighborhood block party. But, more importantly, it’s about creating a network of support and continual shared experiences that enrich our lives in ways shopping never can.
It begins with the simple things: a smile to a neighbor or a stranger you pass on the street, a hello to the barista who makes your morning coffee. These small acts of kindness aren’t just effective for reducing stress and improving emotional well-being; they can also make us braver and bolder in connecting with people.
Some other ways to forge connections:

Volunteer: Participating in local initiatives can also foster a sense of belonging. Moreover, volunteering for causes dear to your heart can open doors to new friendships and connections. It’s a way of giving back that enriches the community and your life.

Engage with hobbies: Explore where your interests align with others, whether through local clubs, online platforms, or community centers. Be it a book club, a yoga class, or a gardening or dining group, these are activities where you can find like-minded individuals and potential friends. For example, I discovered Jill Daniel’s Happy Women Dinners when looking for more community. Jill plans lunches and dinners, usually with a female book author as the featured speaker.

Initiate opportunities: Above all, be proactive. Start a neighborhood garden or safety watch group if there isn’t one. Collaborate with neighbors and new connections to create initiatives that benefit everyone. There’s immense fulfillment in contributing to the well-being of your community.

In turning toward each other, we find what we’ve been searching for — connection, belonging, and a sense of purpose and fulfillment that no shopping spree can provide.
— By Cathy Curtis, certified financial planner and founder and CEO of Curtis Financial Planning. She is a member of the CNBC Financial Advisor Council. More

Smart Tax Planning

The Internal Revenue Service reminded taxpayers on Thursday that it’s important to carefully choose a tax professional.
There’s an accountant shortage in the U.S., so finding qualified tax prep help may be trickier this year.

Damircudic | E+ | Getty Images

Why it may be harder to find an accountant

Accounting bachelor’s degree completions have been falling about 3% every year since 2015, according to the American Institute of Certified Public Accountants. The number of new candidates sitting in for the certified public accountant exams has also been declining since 2016, the AICPA found.
To address the decline of new professionals in the field and “expand the CPA pipeline,” the format of the CPA exam will be different in 2024, Henry Grzes, lead manager for tax practice and ethics with the AICPA, recently told CNBC.

“That’s the reason the exam was changed: to allow more people to have that designation. The CPA designation is a very important standard,” Grzes said.
Here are five ways to vet a tax preparer, according to the IRS:

1. Make sure they have a PTIN

Always ensure the tax preparer you are hiring for the service is registered with a valid Preparer Tax Identification Number. Anyone who is paid to prepare or assists in preparing federal tax returns is required to have a PTIN by law.
Confirm that the professional will both sign the return and include their PTIN.
“Not signing a tax return is a red flag that a paid preparer is likely not to be trusted,” according to the IRS.

2. Confirm availability

Ideally, you want a preparer who is available year-round, and who won’t disappear after tax season.
“If questions come up about a tax return, taxpayers may need to contact the preparer after the filing season is over,” the IRS notes.

3. Understand the preparer’s credentials

If you haven’t found an accountant or CPA for this tax season, you can broaden your search to include tax attorneys and enrolled agents. Either can legally represent you before the IRS.
Some tax preparers only carry a PTIN. While they can prepare and file your returns, they cannot represent you before the IRS if there’s ever a notice or an audit, Tommy Lucas, a certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida, previously told CNBC.
The IRS also notes that Annual Filing Season Program participants who prepare and sign a tax return can represent taxpayers in limited situations.

4. Review the preparer’s history

Taxpayers can often look up information about the tax preparer to make sure there are no red flags.

The Better Business Bureau and review sites such as Yelp may have information about the preparer as well as customer reviews and complaints.
Visit credentialing organizations’ websites to verify a preparer’s status and check for disciplinary actions. For CPAs, check the State Board of Accountancy’s site, and for attorneys, their State Bar Association, the IRS notes.
For enrolled agents, use the IRS Directory of Federal Tax Return Preparers to verify their status.

5. Ask about fees

“Taxpayers should avoid tax return preparers who base their fees on a percentage of the refund or who offer to deposit all or part of the refund into their own financial accounts,” the IRS notes. “Be wary of tax return preparers who claim they can get larger refunds than their competitors.”
If you are having trouble finding a qualified professional in your area, think about strategies such as free or paid online filing options, volunteer income tax assistance programs or even filing your taxes later in the year. More

Some insurance companies are pulling back coverage from fire- and flood-prone areas, leaving homeowners with limited affordable options. This trend may even affect the property value of American homes, experts say.
The nation’s largest homeowner’s insurance company, State Farm, stopped accepting new applications for policies on property in California in May. Allstate announced in November that it would “pause new homeowners, condo and commercial insurance policies in California to protect current customers,” the Associated Press reported in June.

This trend will likely continue across the insurance industry, said Jeremy Porter, head of climate implications research at First Street Foundation, a nonprofit research organization that compiles comprehensive climate risk data.
“They know the risk is just too high to be actuarially sound for their business,” he said.
In its announcement, State Farm said too many buildings are being destroyed by climate catastrophes, inflation is making it too expensive to rebuild, and it can’t protect its investments any longer. 
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The problem is not just in California, where wildfires are prevalent. Louisiana and Florida homeowners are also contending with a lack of access to insurance, due to flood risk.  

“Losses are increasingly related to climate risk,” said Sean Kevelighan, president and CEO of the Insurance Information Institute, an insurance industry association. “As that risk increases, so does the cost of insuring those assets that people have on hand.”
Even though there wasn’t an increase in major disasters in 2023, he said, the industry is still expecting to see $50 billion in losses just because of “severe convective issues” such as flash flooding and the implications of heavier everyday storms. 

What happens when a homeowner can’t get insurance

Darlene Tucker and Tom Pinter

Without insurance, many homeowners can find themselves in big financial trouble. 
Darlene Tucker, 66, and Tom Pinter, 68, are longtime homeowners in Sonora, California. The couple bought their “dream home” 18 years ago and have been enjoying their retirement from their respective jobs in manufacturing.
Tucker also cares for her horses and a rescued 100-pound tortoise on the property, and runs a dog day care center to help make ends meet. She said Pinter also works as a delivery driver to help out.

Darlene Tucker and Tom Pinter’s home in Sonora, California.

The couple received a nonrenewal notice from Allstate in November. Tucker told CNBC she has been working with her Allstate agent to find another insurer.
“I had one company step up and said they’d do it for $12,000 a year,” she said — that’s roughly six times her previous annual premium under Allstate of about $2,000.
She said there was no way the couple could afford that new policy, and they would likely have to move. 

Dogs play at Darlene Tucker and Tom Pinter’s home in Sonora, California.

But Tucker and Pinter may find that selling their home also comes with a steep cost.
Porter said First Street Foundation’s research in California concluded that “the moment that an individual gets a non-renewal letter from the private insurance market, they essentially lose 12% of their property value.”

Insurance costs ‘should be an alarm’ for homebuyers

Experts say the insurance landscape in California is particularly tricky because, in addition to the wildfire risk, the state has a law that adds extra approval measures, including board approval and review by the insurance commissioner, if an insurance company wants to raise the rate of insurance by more than 7%. That’s been in effect since the 1980s.
Kevelighan, of the Insurance Information Institute, said that law, called Proposition 103, creates a regulatory environment in California that restricts the industry from adequately including climate risk in its forecasting and is one of the reasons the industry is being forced to pull back coverage in the state.

“Risk management does not come into play until it’s entirely too late when it comes to individual personal property purchasing,” Kevelighan said. “It comes into play when the mortgage provider needs you to go get it.”
“And that’s the first time when a consumer even begins to think about where they’re living and what the risks might be,” he said. “The cost reflects that risk. That should be an alarm to tell them that they’re living in a risky place and then ask themselves: How could I reduce that risk? Or do I need to think about living somewhere else?”

‘Give me something to work with’

With just days remaining until Tucker and Pinter’s Allstate policy expires, on Feb. 15, the couple is still looking for more options. Tucker told CNBC that a recent quote they received was three times what they were originally paying, with a $10,000 deductible.
Of the whole situation, she said she feels frustrated.

Darlene Tucker and Tom Pinter

“We’re doing everything we can,” Tucker said. “You know, we worked hard, we retired. We take good care of our house. I’m never late on my bills. I paid that [policy] for 18 years … And you just give me no choice. That’s the part that bugged me the most, I think. Give me a list. Give me something to work with. Raise [the price] if you need to, reasonably. But don’t just give me no choice. That’s not right.”
Tucker’s insurance agent from Allstate told CNBC that “most insurance companies are not currently writing polices in high fire prone areas,” and confirmed the company was trying to help her find other options.
State Farm did not respond to CNBC’s requests for comment.
Watch the video to learn more about why some American homeowners are losing their property insurance and the changes the insurance industry would like to see to be able to offset some of the mounting risks.  More

Smart Tax Planning

The cost of tax preparation and accounting fees grew 8.3% in November 2023 compared to the previous year.
But if your return is relatively simple, there are several free filing options to consider this season, experts say.

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Filing taxes is more expensive this year as the industry raises prices to combat a growing accountant shortage.
The cost of tax preparation and accounting fees grew 8.3% in November 2023 compared to the previous year, according to the U.S. Bureau of Labor Statistics. Taxpayers typically spend an average of $140 to file taxes every year, the IRS estimates.

But if your return is relatively simple, there are several free filing options to consider this season, experts say.

1. IRS Free File

A public-private partnership between the IRS and Free File Alliance, a nonprofit comprised of tax software companies, IRS Free File offers free guided tax prep software for eligible filers.
The “biggest change” this season is a higher adjusted gross income limit, which is now $79,000 for 2023 filings, up from $73,000 last season, according to Tim Hugo, executive director of the Free File Alliance.
Adjusted gross income is your total income minus “adjustments,” such as certain pretax individual retirement account contributions and student loan interest. Pretax 401(k) contributions also reduce the income reported on your W-2.

More from Smart Tax Planning:

Here’s a look at more tax-planning news.

If you’re comfortable with tax software, Free File has eight partners this season, with varying income eligibility — and some offer free linked state filings. You can find the best option with this tool.

“Free File is not just for simple returns,” Hugo said, pointing to the program’s required forms and schedules, such as Schedule B for interest and dividends or Schedule C for self-employment, contract or gig economy work.

Free File is not just for simple returns.

Executive director of the Free File Alliance

Roughly 70% of taxpayers qualify for Free File, but only 2% used it during the 2022 filing season, according to the National Taxpayer Advocate.
“It’s a product that we’re very proud of,” Hugo said. “We just wish more people knew about it.”

2. Free File Fillable Forms

If your adjusted gross income was higher than $79,000 in 2023, Free File also offers Fillable Forms for any income level, which is the electronic version of a paper return. Roughly 460,000 taxpayers used Fillable Forms through Nov. 3 last season, according to the Free File Alliance.
It may be a good option if you’re comfortable completing the necessary forms and schedules without step-by-step guidance, according to the program. But you can only use Fillable Forms for the current tax year and there is no support for state filings. The system will automatically delete your account after Oct. 20, and you will lose access to your filing.
If you use Fillable Forms, you should save a copy of your return for your records, and in case of a future audit.

3. Volunteer tax prep from IRS programs

If you’re looking for more guidance, you may also qualify for free tax prep from IRS programs with trained volunteers.
The Volunteer Income Tax Assistance, or VITA, program offers free tax prep for taxpayers typically making up to $64,000, in addition to filers with disabilities and limited English proficiency.
Tax Counseling for the Elderly, or TCE, is for filers age 60 or older, with a focus on pension and retirement questions. AARP Foundation Tax-Aide also offers free tax prep for low- to moderate-income older adults. You can see what this program covers here.
While both IRS programs include a range of forms and schedules, there are limitations outlined here. You can use this tool to find a location near you.

4. IRS Direct File

Certain taxpayers may also qualify for the limited Direct File pilot this season, which offers free filing via the IRS. 
While the program starts as invitation only, the agency expects to roll out the service to certain taxpayers in 12 states by mid-March. Eligible states will include Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming.

Internal Revenue Service

“It’s basically for people with very simple tax affairs,” said Steven Hamilton, assistant professor of economics at The George Washington University.
This season, Direct File will only accept Form W-2 wages, Social Security retirement income, unemployment earnings and interest of $1,500 or less. You must claim the standard deduction, and the system only accepts a handful of credits and other tax breaks.

5. Private companies

Certain taxpayers may also find free filing options from private companies. But “if you go with a tax prep company, watch for and expect add-on fees for additional services” said Ed Mierzwinski, consumer advocate at U.S. Public Interest Research Group. “That’s the business model.”
The Federal Trade Commission in January upheld a September ruling that found Intuit, maker of tax filing software TurboTax, violated federal law by marketing free software to filers who were not eligible, and were upgraded to deluxe and premium products. Intuit has appealed the “deeply flawed decision,” according to a spokesperson. More

The Netflix logo is shown on one of the streaming giant’s Hollywood buildings in Los Angeles on July 12, 2023.
Mike Blake | Reuters

The U.S. stock market continues to be volatile due to the uncertainty surrounding when the Federal Reserve will start to lower interest rates, and how many times. Despite the highest level of rates in a generation, and a tough macroeconomic backdrop, several companies have been delivering strong performances, reflecting the resilience of their business models.
To select the stocks of such companies that have attractive growth potential, investors can track the recommendations of Wall Street’s experts.

Here are three stocks favored by the Street’s top analysts, according to TipRanks, a platform that ranks analysts based on their past performance.  

ServiceNow

First up is the cloud-based workflow management platform ServiceNow (NOW). The company recently announced upbeat results for the fourth quarter of 2023 and raised its 2024 subscription revenue and operating margin guidance.
Following the results, Baird analyst Robert Oliver reiterated a buy rating on NOW stock and boosted his price target to $870 from $780. The analyst noted that all key financial metrics were above expectations in Q4 2023.
ServiceNow’s cRPO (current remaining performance obligations) that will be recognized as revenue over the next 12 months grew 23% on a constant currency basis. The Baird analyst highlighted that while this growth rate marked a slight deceleration from the 24% growth in the previous quarter, it surpassed the firm’s own guidance of more than 21% growth.
Oliver explained that the upside in cRPO was fueled by net new ACV (annual contract value) and higher early renewals. He also noted the strength of ServiceNow’s public sector business and the traction in its generative AI (artificial intelligence) products.

The Baird analyst said that his revised price target for NOW reflects a reasonable valuation of 44x his 2025 FCF (free cash flow) estimate, given its “1) above-average growth profile, 2) strong competitive positioning, 3) large TAM [total addressable market], and 4) top-decile FCF margin.”  
Oliver ranks No. 367 among more than 8,600 analysts tracked by TipRanks. His ratings have been profitable 58% of the time, with each delivering an average return of 11.5%. (See ServiceNow Financial Statements on TipRanks)

Netflix

Streaming giant Netflix (NFLX) impressed investors with stellar fourth-quarter results. The company added 13.1 million subscribers in the final quarter of 2023, helping the stock to a 16% gain so far in 2024.
DBS analyst Sachin Mittal noted that the company’s crackdown on password sharing in more than 100 markets since May 2023 drove the robust subscriber additions in Q4 2023. He added that ad membership increased 70% sequentially in the fourth quarter and now represents 40% of all new sign-ups in the company’s 12 ad markets.
“Overall, we believe that paid sharing and advertising would help re-accelerate subscriber and revenue growth while driving high-margin incremental revenue,” said Mittal.
The analyst also highlighted that while Netflix saw a sixth consecutive quarter of subscriber growth, rival Disney’s (DIS) subscriber base has declined for three straight quarters. Wall Street expects Netflix’s subscriber base to grow at a faster rate than Disney, reflecting a diminished competitive threat from Bob Iger’s theme park operator.
Mittal reaffirmed a buy rating on Netflix and increased the price target to $580 from $540. He believes that NFLX deserves a premium valuation compared to peers due to faster earnings growth, supported by its dominance in streaming, and increased value from its ad-supported tier and paid sharing efforts.
Mittal holds the 334th rank among more than 8,600 analysts tracked by TipRanks. His ratings have been successful 79% of the time, with each generating an average return of 22.8%. (See Netflix Hedge Fund Activity on TipRanks)

Rivian

This week’s third stock pick is electric vehicle maker Rivian (RIVN). In early January, the company reported 13,972 deliveries in the fourth quarter of 2023. Overall, Rivian delivered 50,122 EVs in 2023.
Recently, Tigress Financial analyst Ivan Feinseth reiterated a buy rating on RIVN stock with a price target of $36. Feinseth thinks that the pullback in the stock offers a good opportunity to gain exposure to the emerging EV player. Rivian is down 33.5% in 2024.
Feinseth is bullish on RIVN citing multiple catalysts, including, “ongoing production ramp-up, expanded commercial vehicle opportunities, new lease programs and the upcoming introduction of its R2 platform.”
The analyst noted that the company continues to see solid demand for its pick-up trucks and SUVs, and he also expects Rivian to benefit from increasing demand for its commercial vans, given the company’s expansion an existing partnership with Amazon (AMZN).
In particular, Feinseth highlighted Rivian’s recently announced deal with AT&T (T), under which the telecom provider agreed to purchase commercial vans and R1 electric vehicles to reduce its carbon footprint.   
Feinseth is optimistic about Rivian, saying it has a total addressable market (TAM) of $9 trillion and a service addressable market of more than $1 trillion over the next three years. The analyst believes that Rivian has a significant first-mover advantage as the leading manufacturer of electric pick-up trucks and SUVs.  
Feinseth ranks No. 235 among more than 8,600 analysts tracked by TipRanks. His ratings have been profitable 62% of the time, with each delivering an average return of 11.4%. (See Rivian Insider Trading Activity on TipRanks)  More