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    ‘We’re in the era of the billionaire,’ human rights expert says. Here’s why wealth accumulation is accelerating

    Roughly 204 new billionaires were minted last year alone, according to Oxfam’s latest annual inequality report.
    After Oxfam’s report was released, some of the world’s wealthiest people called on elected representatives to introduce higher taxes on the very richest in society.

    The rich are getting richer.
    The combined wealth of the world’s most wealthy rose to $15 trillion from $13 trillion in just 12 months, according to Oxfam’s latest annual inequality report — notching the second largest annual increase in billionaire wealth since the global charity began tracking this data.

    Last year alone, roughly 204 new billionaires were minted, bringing the total number of billionaires to 2,769, up from 2,565 in 2023, the global charity found.
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    “Not only has the rate of billionaire wealth accumulation accelerated — by three times — but so too has their power,” Oxfam International’s Executive Director Amitabh Behar said in a statement Sunday. 
    “We’ve reached a new era now, we are in the era of the billionaire,” said Jenny Ricks, general secretary of the human rights group Fight Inequality Alliance. “The challenge now is turning this around and making this the era of the 99%.”

    Despite the fact that America ranks first as the richest nation in the world in terms of gross domestic product, 36.8 million Americans live in poverty, accounting for 11.1% of the total population, according to the latest report from the U.S. Census Bureau. 

    “We need government serving people’s real needs and rights,” Ricks said, with increased funding for education and healthcare, among other social services.

    ‘Tax us, the super rich’

    After Oxfam’s report was released, some of the world’s wealthiest people called on elected representatives of the world’s leading economies to introduce higher taxes on the very richest in society.
    In an open letter to political leaders attending the annual World Economic Forum in Davos, Switzerland, more than 370 billionaires and millionaires said that they wanted to “tackle the corrosive impact of extreme wealth.”
    To that end, “start with the simplest solution: tax us, the super rich,” the letter said.

    36% of billionaire wealth is inherited

    Oxfam found that 36% of billionaire wealth is now inherited. Much of that wealth will also get handed down. A separate report by UBS found that baby boomer billionaires’ heirs stand to inherit an estimated $6.3 trillion over the next 15 years.
    “As the great wealth transition gains momentum … we expect the proportion of multigenerational billionaires to increase,” the report said.

    According to Oxfam’s analysis, half of the world’s billionaires live in countries with no inheritance tax for direct descendants.
    In the U.S., there is a federal estate tax up to 40%, depending on the amount of the estate over the current exclusion limit.
    In 2025, the basic exclusion amount rose to $13.99 million per person, up from $13.61 million in 2024.
    Meanwhile, President Donald Trump has vowed to fully extend the trillions in tax breaks he enacted via the Tax Cuts and Jobs Act in 2017, which also doubled the estate and gift tax exemption.
    After 2025, the higher estate and gift tax exemption will sunset without action from Congress. If the provision expires, the exclusion will revert to 2017 levels, adjusted for inflation.
    Some Democrats have pushed back on TCJA extensions, noting that they disproportionately benefit the wealthy, rather than middle-class families.
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    Whatever happens with TikTok, ‘finfluencers’ are here to stay. Here’s how to vet money advice on social media

    TikTok came back online for users after Trump issued an executive order to pause the ban.
    While the long-term fate of the app remains uncertain, “financial influencers” are directing followers to other platforms.
    Here’s what consumers need to know.

    Jaap Arriens | Nurphoto | Getty Images

    TikTok’s fate is still uncertain.
    While the Supreme Court last week upheld the law that effectively bans TikTok from the U.S., one of Trump’s first actions as president was an executive order to pause the ban for 75 days, starting Jan. 20.

    The app’s future may shift how young adults learn about personal finance. Gen Zers, or those born between 1997 and 2012, often rely on TikTok’s financial community, or #FinTok, as a source of information about money.
    A 2024 report by the CFA Institute found that the generation is more likely than older generations to engage with “finfluencer” — or financial influencer — content on TikTok, YouTube and Instagram, in part because they have less access to professional financial advisors and a preference for obtaining information online.
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    Americans last year turned to TikTok for financial advice on topics including budgeting (25%), investing (24%), credit cards and credit scores (33%), according to a recent report by Chime, a financial technology company.
    The site polled 2,000 U.S. adults from November 1 to 16. It also analyzed user engagement patterns on TikTok compared with data from platforms like Google Trends and Exploding Topics, which track popularity and growth of trends over time.

    Leading up to the law’s initial Jan. 19 deadline for TikTok, finfluencers had been directing their followers to other platforms like Instagram and YouTube. Individuals also downloaded social media apps like RedNote as TikTok substitutes.
    But whatever ends up happening with TikTok, finfluencers are here to stay. Here’s how to vet their advice.

    The value of financial advice on TikTok

    About 65% of respondents in Chime’s survey said they feel more financially secure since using TikTok. Another 68% say #FinTok has improved their financial situation at home.
    “For 2025, TikTok users are gravitating toward digestible personal finance tips that incorporate budgeting apps, micro-investing and community-based saving challenges,” said certified financial planner Douglas Boneparth, president and founder of Bone Fide Wealth, a wealth management firm based in New York City that focuses on millennials, young professionals and entrepreneurs.
    Some viral TikTok trends are worth applying to your finances in 2025, like “loud budgeting,” experts say. The trend encourages consumers to take control of their finances and be vocal about making money-conscious decisions rather than overspending.
    Essentially, “loud budgeting is just financial boundaries,” financial therapist Lindsay Bryan-Podvin, author of “The Financial Anxiety Solution” and founder of Mind Money Balance.
    A short-term, no-spend challenge can also be an opportunity to do a “gut check on where you’re spending and where you’re saving,” Bryan-Podvin said.

    “These trends are worth adopting if you verify the underlying strategies [… and] modify them to align with your personal financial goals and risk tolerance,” said Boneparth, who is a member of the CNBC Financial Advisor Council.
    But a lot of incorrect or risky advice appears on social media, too. About 27% of social media users believed misleading financial advice or misinformation on social media, according to Edelman Financial Engines. About 42% of surveyed adults in their 30s have fallen prey to bad financial advice in social platforms, and 2 in 10 have been affected more than once, the report found.
    Edelman polled 3,008 adults of ages 30 and up from June 12 to July 2024. The total sample included 1,500 respondents between ages 45 and 70 with household assets between $500 and $3 million.

    Vet financial content and find other sources

    It’s important for social media users to be cautious about the content that influencers share, experts say. 
    “There’s really no barrier to entry for [an] influencer to participate on a platform,” said CFP Brian Walsh, head of financial planning advice at SoFi, a personal finance and financial planning technology company.
    While social media helps people easily access information and get unique insights, it can be concerning when it comes to information you’d apply to your personal finances, he said.
    “There’s nothing stopping someone with a ton of followers from promoting something that’s completely wrong,” Walsh said.

    Individuals who are affected by risky or incorrect advice they took from a social media creator can file a complaint with the Consumer Financial Protection Bureau, according to Amy Miller, an accredited financial counselor and manager of America Saves, a campaign managed by the Consumer Federation of America.
    Otherwise, here are three key steps to consider: 

    1. Look for other sources of other information

    In most instances, you might not find experienced financial advisors on TikTok like on other social platforms, according to Winnie Sun, co-founder and managing director of Irvine, California-based Sun Group Wealth Partners.
    Much of it has to do with compliance rules. In order for financial planners to maintain their licensing, they must adhere to certain guidelines on what information they’re allowed to share. It’s easier to track and review content posted on some platforms — TikTok isn’t one of them.
    “I’m not allowed to share information on TikTok,” said Sun, who is also a CNBC FA Council member.
    You can typically find licensed financial professionals actively sharing content on platforms like LinkedIn, YouTube and X, she said.
    It’s also “absolutely crucial” to develop a basic level of financial literacy before turning to social media for advice, said SoFi’s Walsh.
    Look for online courses, join financial forums and subscribe to legitimate publications to gain financial literacy, experts say. Organizations like the Consumer Financial Protection Bureau also provide free educational resources.

    2. Do a background check on the content creator

    Search for designations and look up the creator’s background, Walsh said: “The CFP [certified financial planner designation] is really the baseline when it comes to financial planning.”
    You can enter the content creator’s name on BrokerCheck to see if they have any credentials. If they are accredited, find out if they have any disclosures, a red flag which means they’ve gotten into trouble in the past.

    3. Verify the advice

    If the content creator is not actively in the financial industry or lacks accreditation altogether, be careful about what they say. Be cautious if they are promising quick results and if they speak in absolutes, SoFi’s Walsh said — it can take a long time to save for an emergency, pay off credit card debt or learn how to invest.
    “So promising get rich quick or overnight sensations […] that’s a big red flag for me,” Walsh said.
    Also be careful if a creator talks about how one product or solution can answer all of your problems, he explained.
    Outside of the basics like spending less than you make and saving money, there are “very few absolutes,” Walsh said.
    Cross-reference an influencer’s claims with sources like government regulators and content from reputable financial professionals and publications, Boneparth said. If you need personalized advice, consider reaching out to a certified financial planner, a tax professional or a licensed investment advisor, he said. More

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    Investors may be able to file taxes for free this season. Here’s who qualifies

    There’s less than a week until tax season kicks off on Jan. 27 — and investors may have more options to file returns for free than previous years.
    Typically, investors may receive Form 1099-B for capital gains and losses, Form 1099-DIV for dividends and capital gains distributions, along with Form 1099-INT for interest income.
    Some free tax filing options may include Direct File, IRS Free File and Volunteer Income Tax Assistance.

    Rockaa | E+ | Getty Images

    There’s less than a week until tax season kicks off on Jan. 27 — and investors may have more options to file returns for free than in previous years.
    Typically, investors need certain tax forms to file returns, including Form 1099-B for capital gains and losses and Form 1099-DIV for dividends and capital gains distributions. Form 1099-INT covers interest income from savings accounts, certificates of deposit, Series I bonds, Treasury bills and more.

    Plus, retirees may receive Form 1099-R for withdrawals from 401(k) plans, individual retirement accounts, pensions and other distributions.
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    Here are three free tax filing options to consider this season, depending on your situation.

    1. IRS Direct File

    This season, IRS Direct File, the agency’s free filing program, has expanded to 25 states. It covers more than 30 million taxpayers across eligible states, according to U.S. Department of the Treasury estimates.
    “We’re excited about the improvements to Direct File and the millions more taxpayers who will be eligible to use the service this year,” former IRS Commissioner Danny Werfel said in a press release in October.

    During the pilot in 2024, the program covered simple returns, including filings with interest of $1,500 or less. But for the 2025 filing season, the program supports interest above $1,500 and Alaska residents who receive the Alaska Permanent Fund dividend.  
    The program doesn’t currently cover other investment income, including capital gains and dividends.
    Starting in March, Direct File will also support distributions from most company retirement plans, such as 401(k) plans, pensions and more. But you can’t use the service if you withdrew funds from an IRA. 

    2. IRS Free File 

    Another option, IRS Free File, is a public-private partnership between the agency and the Free File Alliance, a nonprofit coalition of tax software companies.
    This season, you can use IRS Free File if your adjusted gross income, or AGI, was $84,000 or less in 2024.
    Eight software partners will accept the most commonly used tax forms and schedules, explained Tim Hugo, executive director of the Free File Alliance. Those include Schedule B for interest and ordinary dividends and Schedule D for capital gains and losses. These Schedules cover investing forms, such as 1099-INT over $1,500 and certain items from Forms 1099-B and 1099-DIV.
    “It really is a great tool that can serve millions of Americans that just nobody knows about,” Hugo said.

    3. Volunteer Income Tax Assistance

    If your want more guidance, you may also qualify for free tax prep from Volunteer Income Tax Assistance, or VITA, a program managed by the IRS. 
    For the 2025 season, you’ll qualify for VITA with an adjusted gross income of $67,000 or less.The program’s scope includes coverage for investors, including Forms 1099-INT, 1099-B and 1099-DIV, with certain limitations. VITA also covers Form 1099-R for retirement income with some exclusions. The program won’t cover cryptocurrency transactions for 2024 filings.    More

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    Here’s how climate change is reshaping home insurance costs in California — and the rest of the U.S.

    Even for homeowners outside of California, worsening extreme weather means higher insurance rates.
    In part because of escalating weather-related risks, home insurance rates have already jumped dramatically.
    What you will pay depends on your home as well as the city, state and proximity to areas prone to floods, earthquakes or wildfires, among other factors, experts say.

    Burned trees from the Palisades Fire and dust blown by winds are seen from Will Rogers State Park, with the City of Los Angeles in the background, in the Pacific Palisades neighborhood on Jan. 15, 2025 in Los Angeles, California.
    Apu Gomes | Getty Images

    Insurance premiums were surging well before this year’s massive wildfires in the Los Angeles area.
    Now, they are set to rise even higher as the L.A. wildfires could become the costliest blaze in U.S. history, analysts say.

    The insured losses may cost more than $20 billion, according to estimates by JPMorgan and Wells Fargo.
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    For California residents, the increased frequency and severity of natural disasters has had a direct impact on homeowners insurance costs, a trend that is now even more likely to accelerate. 
    “In the short term, insurance regulators need to allow for risk-based pricing,” Patrick Douville, vice president of global insurance and pension ratings at Morningstar, said in a statement. “This means that premiums are likely to increase, and affordability issues will continue, potentially affecting property values and leaving some homeowners without insurance.”
    California’s Department of Insurance also recently passed regulations that pave the way for rate increases in exchange for increased coverage in wildfire-prone regions. In 2024, some insurance companies in the state hiked rates as much as 34%, according to the San Francisco Chronicle.

    While it’s too early to predict how the fires in Southern California will directly impact the bottom line, filing one fire claim can increase premiums by 29%, on average, and two claims could boost premiums by 60%, according to a 2024 analysis by Insure.com.

    Going forward, premiums are almost guaranteed to go up as insurers attempt to cover their costs, according to Janet Ruiz, a director at the Insurance Information Institute and the organization’s California representative.
    “We have to take in enough money in premiums to pay out the claims,” she said.
    But even for homeowners outside of California, worsening extreme weather means higher insurance rates are on the way.

    How disasters affect can costs in other states

    The rest of the nation also wants to know: Will my insurance premiums be increasing? According to Ruiz, the short answer is no.
    “Homeowners and business owners in one state do not pay insurance premiums based on losses or catastrophes in other states,” she said.
    Because each state has a department of insurance that regulates rates in that region, there are protections in place to prevent that from happening, Ruiz said.

    And yet, even though insurance premiums are subject to extensive regulations at the state level, when insurers cannot adjust rates in highly regulated states, they do compensate by raising rates in less-regulated states — despite protections in place — leading to “a growing disconnect between insurance rates and risk,” according to a 2021 paper by economists at Harvard Business School, Columbia Business School and Federal Reserve Board. 
    “Our findings call into question the sustainability of the current regulatory system, especially if natural disasters become more frequent or severe,” the authors wrote.
    “Many insurance companies operate nationwide, or at least in multiple states,” said Holden Lewis, mortgage and real estate expert at NerdWallet.
    “They are going to make up for their losses somewhere,” Lewis said.

    In the wake of the wildfires, Michael Barrett, co-principal at Barrett Insurance Agency in St Johnsbury Vermont, where state insurance regulations are looser, said he has fielded lots of calls from clients asking about whether their premium will rise — “and the real true answer is it could,” he said.
    “From an insurance perspective, an increase in natural disasters will impact insurance going forward,” Barrett said.
    Vermont is not immune from its own extreme weather lately.
    “We had incredible rains with severe flooding,” Barrett said. “It’s something that’s very concerning as we see the reliance on insurance elevated through these events.”

    Extreme weather is a problem nationwide

    What has happened in California underscores what could happen in other parts of the country as well, partly due to increased climate concerns.
    Last year, 27 different natural disasters, from wildfires to winter storms, cost $1 billion each, the National Oceanic and Atmospheric Administration found.
    Nearly half of all homes in the U.S. are now at risk of severe or extreme damage from environmental threats, according to a separate Realtor.com report.

    Annual premiums are heading higher

    In part because of escalating weather-related risks, home insurance rates jumped 33.8% between 2018 and 2023, rising 11.3% in 2023 alone, according to S&P Global Market Intelligence.
    A working paper published by the National Bureau of Economic Research found an even sharper 33% increase in average premiums just between 2020 and 2023 and that climate-exposed households will face $700 higher annual premiums by 2053.

    The national average cost of home insurance is now $2,181 a year, on average, for a policy with a $300,000 dwelling limit, or about $182 per month, according to Bankrate.
    What each homeowner pays depends on the home as well as the city, state and proximity to areas prone to floods, earthquakes or wildfires, among other factors, experts say.
    But generally, all of those factors have caused costs to go up across the board, including the impact of extreme weather and the rising costs of repairing or rebuilding.

    Rising repair costs also play a role

    Especially since the pandemic, the cost of rebuilding has risen significantly and continues to increase.
    “That same home that might have cost $166 a square foot to rebuild now costs easily $300, and that’s if you are not doing a lot of frills,” Barrett said.
    “When people renew their insurance policies, they might just renew the same maximum payout,” said NerdWallet’s Lewis. “A lot of homeowners are not even thinking about that.”
    But because repairing damaged homes has become much more expensive, that can cause homeowners to be underinsured, leaving them vulnerable to substantial losses. 

    Homeowners are likely underinsured

    Lewis advises homeowners to get an updated estimate on how much would it cost to rebuild if the home was destroyed in a fire or other natural disaster by asking an insurance agent or local contractor.
    “You want to be insured for that amount,” he explained.

    You also want to have the right kinds of coverage.
    For example, a recent report by the Consumer Financial Protection Bureau found that hundreds of thousands of homeowners are likely underinsured against the risk of flooding. Since homeowners and renters insurance policies don’t cover flood damage, that requires a separate flood insurance policy.
    According to the consumer watchdog, the flood risk exposure of the mortgage market “is more extensive and more geographically dispersed than previously understood.”
    Homeowners near inland streams and rivers, specifically, were less likely to have flood insurance or other financial resources to draw on to recover from a flood and “are most at risk of suffering catastrophic loss.” The report was based on a sample of mortgage applications from 2018-2022.
    “I encourage people every year, when you get your renewal notice, look at that rebuilding amount and ask a contractor the average cost per square foot to rebuild,” Ruiz said. “People didn’t to pay much attention to their insurance but it’s important to understand if you need more or less — most people need more.”
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    A Trump meme coin ETF is already in the works

    A cartoon image of US President-elect Donald Trump with cryptocurrency tokens, depicted in front of the White House to mark his inauguration, displayed at a Coinhero store in Hong Kong, China, on Monday, Jan. 20, 2025.
    Paul Yeung | Bloomberg | Getty Images

    A new securities filing Tuesday revealed that an ETF issuer is already rushing to launch a fund to track the new Trump crypto token.
    The proposed fund is called the Rex-Osprey Trump ETF. The fund could gain exposure to the Trump token at least in part through a Cayman Islands subsidiary, according to the document. The filing does not have a ticker or fee listed.

    The type of filing and the preliminary details included suggest that the fund would be legally different from how the popular bitcoin ETFs operate. That could help the fund launch more quickly, but it could also increase the likelihood that regulators reject the proposal.
    The filing Tuesday comes on the first business day after last Friday’s launch of Trump coin, which is built on the Solana platform. The token has been highly volatile but appears to be worth billions of dollars of notional value to the Trump family.
    The website for the token, shared by Trump himself on social media, said that Trump coin is intended to be “an express of support” and not “an investment opportunity.”
    The proposed Rex-Osprey Trump ETF is one of a flurry of new crypto ETF filings in recent days. The same fund series documents for the Trump ETF also listed proposals for funds following the two majors crypto coins — bitcoin and ether — and secondary coins solana and XRP, as well as meme coins bonk and doge.
    Proposals for several other funds came late Friday, including the multi-token CoinShares Digital Asset ETF and a series of leveraged and inverse XRP funds from ProShares.

    The crypto ETFs currently market in the U.S. track just bitcoin and ether or the futures contracts for those tokens. Crypto products were viewed skeptically by former Securities and Exchange Commission Chair Gary Gensler, but both the ETF and crypto industry expect that a wider scope of funds could launch under the Trump administration.
    Acting SEC Chair Mark Uyeda announced Tuesday that the SEC has launched a “crypto task force” to help develop a clearer regulatory framework around digital assets. More

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    This student loan relief may be most at risk under the Trump administration, experts say

    With President Donald Trump back in the White House and Republicans in control of Congress, a number of student loan programs face uncertainty.
    Trump is a vocal critic of education debt forgiveness policies.
    Meanwhile, House Budget Committee Republicans are exploring options for limiting eligibility for the Public Service Loan Forgiveness program and axing a popular tax break for borrowers.

    US President Donald Trump holds up outgoing President Joe Biden’s letter as he signs executive orders in the Oval Office of the WHite House in Washington, DC, on Jan. 20, 2025.
    Jim Watson | AFP | Getty Images

    With President Donald Trump back in the White House and Republicans in control of Congress, experts worry that a number of student loan programs may now be in jeopardy.
    At-risk programs include the U.S. Department of Education’s new repayment option for borrowers — called the Saving on a Valuable Education, or SAVE, plan — and the Biden administration’s more lenient bankruptcy policy.

    Meanwhile, House Budget Committee Republicans are floating proposals that would reduce or eliminate more student loan programs, including the Biden administration-era rules that made it easier for borrowers to get debt relief when they’re defrauded by their schools, Politico reported last week.
    Consumer advocates are worried for borrowers based on Trump’s comments about student loan relief on the campaign trail. At one rally, he called the Biden administration’s debt forgiveness efforts “vile” and “not even legal.”
    The White House did not immediately respond to a request for comment.
    More than 40 million Americans carry federal student loans, and the outstanding debt exceeds $1.6 trillion, according to higher education expert Mark Kantrowitz.
    Here are the programs experts think are most at risk under the Trump administration.

    SAVE plan

    When SAVE launched in 2023, the Biden administration called its new repayment plan for federal student loan borrowers “the most affordable student loan plan ever.” SAVE cut many borrowers’ monthly bills in half and shortened the timeline to loan forgiveness for those with smaller balances.
    It quickly proved popular. To that point, around 8 million borrowers signed up for the new income-driven repayment, or IDR, plan, the White House had said.
    But the plan also quickly ran into legal troubles.
    Republican attorneys general in Kansas and Missouri, who led the legal challenges against SAVE, argued that President Joe Biden was essentially trying to find a roundabout way to forgive student debt after the Supreme Court blocked its sweeping debt cancellation plan in June 2023. Due to those legal actions, the plan has been on hold since last year.
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    The plan is unlikely to survive a second Trump term, Kantrowitz said.
    “There are several methods the Trump administration could use to kill the SAVE repayment plan,” he said. “They could abandon the defense of the repayment plan in the pending lawsuits.”
    “They could issue new regulations to revoke the repayment plan,” or Congress could pass a law to do away with the plan, Kantrowitz added.
    Currently, SAVE enrollees are excused from making payments while the plan is tied up in the courts. That reprieve may soon end, too, experts said.

    Bankruptcy protections

    For decades, student loan borrowers found it next to impossible to walk away from their federal student debt in bankruptcy. The Biden administration changed that.
    In the fall of 2022, the Department of Education and the Department of Justice jointly released updated bankruptcy guidelines to make the bankruptcy process for student loan borrowers less arduous. The Biden administration’s updated policy treated student loans like other types of debt in bankruptcy court, experts said.
    Trump is likely to rescind that guidance, Kantrowitz said.
    “There may be more of a scorched earth approach to opposing all attempts to discharge federal student loans in bankruptcy,” he said.

    However, Malissa Giles, a consumer bankruptcy attorney in Virginia, said she was hopeful that the guidance will remain in place.
    Still, her concern is that many jurisdictions will have new assistant U.S. attorneys, “and we may see a shift in the approach based on changing politics and pressures of more Republican-aligned U.S. attorneys.”
    For now, Giles said she was being more conservative in what student loan bankruptcy cases she took on.

    Other student loan aid at risk

    Among the recent ideas floated by House Budget Committee Republicans is the partial repeal of the Biden administration’s Borrower Defense regulations, which made it easier for borrowers to get their debt excused when their school engaged in misconduct.
    The GOP members are also reviewing reforms to Public Service Loan Forgiveness, including the possibility of “limiting eligibility for the program,” according to the document obtained by Politico.
    They’re also considering eliminating the student loan interest deduction. That tax break allows qualifying borrowers to deduct up to $2,500 a year in interest paid on eligible private or federal education debt. Before the Covid pandemic, nearly 13 million taxpayers took advantage of the deduction, according to Kantrowitz.

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    This free tax filing option is ‘fast and simple,’ IRS says. Here’s who can use it

    Roughly 70% of taxpayers qualify for IRS Free File, but only a fraction of eligible filers use the software.
    For the 2025 season, you can use IRS Free File if your adjusted gross income, or AGI, was $84,000 or less in 2024.
    “It’s not just for simple returns,” said Tim Hugo, executive director of the Free File Alliance.

    Rockaa | E+ | Getty Images

    How to qualify for IRS Free File

    For the 2025 season, you can use IRS Free File if your adjusted gross income, or AGI, was $84,000 or less in 2024.
    You calculate AGI by subtracting certain tax breaks from your total, or gross income. The figure will be line 11 on the front page of your 2024 tax return.  
    While there are guided Free File options for anyone who made $84,000 or less for 2024, each partner has different eligibility, depending on your age, income, state residency and military status.

    Some partners also offer free state tax returns, Hugo said. You can browse all eight partners here.   
    The program also offers Free Fillable Forms, which is the electronic version of a paper-filed return, for taxpayers at all income levels.  

    Free File ‘not just for simple returns’

    Roughly 70% of taxpayers qualify for IRS Free File, but only a fraction of eligible filers use the software, according to Tim Hugo, executive director of the Free File Alliance.
    “It’s not just for simple returns,” he said. 
    There are eight software partners for 2024 filings and each must accept the most commonly used tax forms and schedules, Hugo explained.
    Some of these include Schedule A for itemized deductions, Schedules B and D for investment earnings and Schedule C for self-employed filers, among others.  

    The program opened on Jan. 10 and taxpayers can e-file returns prepared through Free File partners starting on Jan. 27, according to the IRS.  

    Free File remains a ‘valuable resource’

    During the 2024 season, Free File processed 2.9 million returns through May 11, a 7.3% jump compared to the same period in 2023, according to the IRS.
    “This program continues to be a valuable resource for eligible individuals looking to file their taxes for free through this unique program,” Werfel said. 
    Although the agency launched Direct File, its own free tax filing service, the IRS in May announced an extension of the Free File program through 2029.
    “It’s kind of like a hidden gem in the forest,” said Hugo. “We just need more people to know about it.” More

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    5 cities with the lowest ‘barrier to homeownership’ — where saving a 20% down payment takes less than 4 years

    Detroit is the city with the lowest “barrier to homeownership,” according to a new RealtyHop report.
    Would-be buyers in Detroit can come up with a 20% down payment in just 2.53 years, according to the findings.
    In pricier metros such as New York City, homebuyers might need to save for at least a decade. 

    Cofotoisme | E+ | Getty Images

    How long it takes you to save for a 20% down payment on a home depends in part on where you live. 
    In a pricey area such as New York City, it could take the typical buyer roughly 10.85 years to save $173,000, which is 20% of the median list price of $865,000 for a home, according to a report by RealtyHop, a real estate investment agency.

    RealtyHop measured the “barrier to homeownership” for the top 100 U.S. cities by population. The analysis is based on median list price using more than 1.5 million residential listings, as well as median household income data from the U.S. Census Bureau. It assumes a household saves 20% of its annual gross income and intends to make a 20% down payment.
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    In each of the five cities with the lowest barrier to homeownership, the savings timeline is less than four years.
    Detroit has the lowest barrier to homeownership, the report found. 
    In Detroit, potential homebuyers who earn about $39,575 — the median household income in the area — need just 2.53 years to come up with a 20% down payment on a home purchase, the report found. That amounts to $20,000 for a home priced at $100,000.

    Cleveland, Ohio, is the runner-up: A potential buyer in the area needs 3.55 years to save $27,800, or 20% of a home that costs $139,000, the median listing price in the area.
    Rounding out the top five are Baltimore; Buffalo, New York; and Pittsburgh.

    Even in cheap cities, there can be savings roadblocks

    Big expenses can derail your down payment savings timeline, even in a city where homes are less expensive.
    A separate report by Zoocasa, a Canada-based real estate website and brokerage, found that homebuyers with children on average take longer to come up with a 20% down payment versus buyers without children because of expenses such as child care costs.
    Potential homebuyers with children in Detroit, for example, need roughly 20.3 years to save for a 20% down payment from scratch, according to Zoocasa. Meanwhile, homebuyers without children in the area need about 4.2 years to come up with a 20% down payment if they’re starting off without prior savings, the report found.
    Rising home prices can represent another challenge, said Jacob Channel, an economist at LendingTree.
    “The more expensive real estate is where you want to live, the more you’ll probably want to save for a down payment,” Channel said.
    The median list price for homes in Los Angeles, for example, is about $1.13 million, RealtyHop found. LA tops the list of five cities with the biggest barriers to homeownership, followed by Irvine, California; Miami; New York City; and Anaheim, California.
    Even the cheapest real estate price on the “high barrier” list — No. 3, Miami — is $699,000, nearly three times pricier than the most expensive city on the “low barrier” list, Pittsburgh.
    If a typical household in LA aimed for a 20% down payment, they would need to save $1,339 a month for roughly 14.10 years, the report found.

    Why you might not need to put 20% down

    In many cases, a 20% down payment is not required for you to buy a home.
    In the third quarter of 2024, the average down payment was 14.5% and the median amount was $30,300, according to Realtor.com data. That’s down from 14.9% and $32,700 in the second quarter of 2024, the site found.
    Some mortgages require much smaller down payments. For instance, the Department of Veterans Affairs offers VA loan programs; those who qualify can put down as little as 0%. Mortgages from the U.S. Department of Agriculture, referred to as USDA loans, aim to help buyers purchase homes in rural areas and also offer 0% down payment options. 
    Federal Housing Administration loans, or FHA loans, can require as little as 3.5% down for qualifying borrowers, which include first-time buyers, low- and moderate-income buyers, and buyers from minority groups. 

    The benefit of a smaller down payment is that you can become a homeowner faster, and with less saved up, experts say. 
    But if you decide to buy a home with less cash upfront, you’ll likely end up with higher monthly mortgage payments. 
    “If you put less money toward a down payment, you’re going to end up with a larger loan,” Channel said.
    Additionally, private mortgage insurance is usually added on to the monthly cost when the buyer puts less than 20% down on the home, he said.
    PMI can cost anywhere from 0.5% to 1.5% of the loan amount per year, depending on factors such as your credit score and your total down payment, according to The Mortgage Reports. For example, on a loan for $300,000, mortgage insurance premiums could cost from $1,500 to $4,500 a year, or $125 to $375 a month, the site found.
    “That’s another kind of payment that might be bundled in with your mortgage that further increases your housing costs,” Channel said. 

    How to come up with your own savings timeline

    Where you want to live long-term and what your financial circumstances are can help you figure out your own down payment savings timeline, according to Melissa Cohn, regional vice president at William Raveis Mortgage.
    First, you need to have a good household budget — understand how much money you make, the amount you typically spend and what you’re able to save in a given month, said Cohn. 
    “Can you cut back on how much you spend? Can you increase your savings? … Can you save your bonuses every year?” she said. 

    Then, find out what a house in your desired location typically costs. “It would be important for a buyer to go out and get an understanding of what price point would work for them,” Cohn said. 
    You also have to save for closing costs, which can vary substantially from place to place, Cohn said.
    Average closing costs can range from roughly 2% to 6% of the loan amount, according to NerdWallet. So a $300,000 mortgage could require from $6,000 to $18,000 in closing costs on top of the down payment, it said.
    To figure out what closing costs typically amount to in your desired area, ask a mortgage broker or a real estate agent, she said. 
    Overall, you want to set realistic goals for yourself and take the time you need to get there. 
    “Go as slow or as quickly as you need to,” LendingTree’s Channel said. “Ensure that you’re making good choices.” More