Smart Money Podcast: Tips to Save on Groceries and Navigate Tax Season

Welcome to NerdWallet’s Good Cash podcast, the place we reply your real-world cash questions. On this episode:

Find out about savvy grocery saving and professional tax submitting tricks to bolster your finances and ease tax season stress.

This Week in Your Cash: How are you going to slash your grocery payments and nonetheless eat wholesome meals amid rising prices? What’s new for this 12 months’s tax season? Hosts Sean Pyles and Sara Rathner talk about saving cash on groceries and simplifying tax submitting that can assist you perceive eat sensible, save massive, and conquer tax season with ease. They start with a dialogue of frugal grocery procuring, with ideas and tips on evaluating unit costs, the advantages of curbside pickup, and incorporating a plant-based weight loss plan. NerdWallet’s Alana Benson joins Sean and Sara to clarify how she saved $800 on groceries over 5 months, highlighting the monetary and well being advantages of a plant-based weight loss plan and giving sensible ideas for individuals who are excited about reducing prices.

At this time’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. Additionally they demystify tax brackets, clarify get your tax refund quicker, and weigh the professionals and cons of consulting with an expert advisor for personalised monetary steerage.

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This transcript was generated from podcast audio by an AI instrument.

Hey, Sara, what’s your go-to tip to save cash on groceries?

So whenever you’re on the retailer, and also you’re trying on the value of an merchandise on a shelf, additionally have a look at the value per ounce or value per unit. That is the smaller quantity on that label on the shelf. In some instances, it may 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. Properly, 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 purpose 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 12 months? 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, loss of life 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 matter often, and we’re going that can assist you avoid wasting cash whereas we accomplish that.

Yeah, this isn’t precisely grocery store sweep, nevertheless it’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 way in which she outlets. Alana, welcome again to Good Cash.

So Alana, we often have you ever on right here to speak about investing, however you latterly wrote an article about the way you saved some severe money by purchasing for groceries in a brand new manner. 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 cellphone, 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 vegetation.

And this all began as a result of I used to be having some well being points, and my healthcare supplier simply beneficial rising my veggie consumption. And after a few months, I used to be like, “Huh, my grocery invoice is manner decrease than it was.” And I hadn’t even thought concerning the potential monetary financial savings originally.

Yeah. Okay. So how precisely is purchasing for extra veggie-focused meals extra inexpensive? Have been you simply shopping for lentils in bulk?

Yeah, just about, actually. Lentils and chickpeas. And seems they’re simply far more inexpensive than meat. So my focus was by no means actually on reducing something out of my weight loss plan. I attempted to simply concentrate on including in a bunch of vegetation, 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 related apart from the price.

And as time went on, I ended up simply saving an increasing number of cash, and apparently that is fairly typical. A 2021 research from Oxford College discovered that vegan diets scale back meals prices by as a lot as 1/3. And if you consider it makes a variety of sense. So in October of 2023, the typical price of a pound of floor beef was over $5. And in the event you exchange that meat with chickpeas, you’ll be able to anticipate to pay round a greenback for a 15-ounce can. So if that is the one change you are making, and even in the event you simply do it a few instances every week, it could actually find yourself saving you some huge cash in the long term.

That is actually fascinating. So I need to go extra into the well being advantages that impressed this modification in your weight loss plan and had these nice monetary outcomes for you. Are you able to speak with us extra about that?

Certain. And earlier than we get into this, I simply need to say I’m not a health care provider. 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 need to make it abundantly clear that we’re not recommending any manner 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 loss plan may assist with my situation. And I had a member of the family who additionally noticed a variety of well being advantages doing an identical factor. So I figured it was simply value a attempt. And at that time, I used to be three years into making an attempt to repair my abdomen issues, and I hadn’t had any success with conventional medication, so I type of figured simply why not attempt it?

Yeah, I imply, such as you stated, you had been including and never subtracting, and subbing out floor beef for chickpeas wasn’t actually going to make your scenario worse. So certain, completely. Why not?

The naysayers may say that vegetarian diets should not precisely identified for being thrilling. In case you’ve ever seen a bag of tan lentils, it is essentially the most boring-looking factor of all time. And I say this as anyone who has tan lentils in my cupboard in my kitchen proper now. And likewise, many individuals may suppose that not consuming meat, particularly in the event you lower it out of your weight loss plan completely, implies that you are depriving your self of not simply vitamin, but in addition scrumptious meals. So how did you’re employed by way of these challenges and make your self each scrumptious and nutritious meals?

Yeah, there’s loads there. So I’ve at all times been a foodie. Considered one of my favourite issues after I’m touring is to simply go tremendous exhausting on the native delicacies. If that is cheese, wine, meat dishes, no matter it’s, I really like that. And I’ve at all times sort of hated greens. Steamed broccoli is essentially the most disgusting factor within the universe to me.

So, at first, it was positively a problem, and I wasn’t certain the way it was going to go, however I began out actually, actually sluggish. So the very first thing that I did a few 12 months 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 grew to become like, “Okay, do I need to really feel fairly sick from consuming this, or do I need to really feel higher?” And for me, that simply… personally, that was a alternative that grew to become fairly straightforward.

After which I sort of simply began going to the grocery retailer, and I challenged myself to simply pick 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 attempt a romanesco, after which I attempted a kohlrabi, and I simply type of discovered what I favored, what I did not like, and sort of put together these greens that felt just a little avant-garde to me. And that simply felt like a enjoyable exploration as a substitute of reducing 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 a giant 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 loss plan. I am not tremendous strict as a result of absolutism is simply not how I dwell my life. However after I was re-getting right into a vegetarian way of life, as a result of I did this in school as effectively, what helped me was discovering enjoyable recipes to check out.

So I acquired a very good 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’ll department out and make this actually wild pasta that I would by no means even imagined earlier than with chickpeas and all kinds 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 a variety of methods to seek out that inspiration. I discovered a variety of actually nice recipes on TikTok, and on TikTok, you’ll be able to see them in motion. You see the sauce and every thing, and so it makes it really feel actually engaging. And I began selecting up magazines once more with recipes, just like the bodily ones, and for some motive that was useful.

One other trick is to think about worldwide delicacies or world delicacies and have 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 standard 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 speculated to as a result of they simply naturally do not have these elements.

Yeah. And I would say I like to prepare dinner. I’m pressed for time with cooking now that I’ve a child, and when he will get dwelling from daycare, I haven’t got infinite time to throw meals collectively. However simply including that problem has made me get extra inventive by way of the recipes that I do resolve to make in the course of the weekdays. What can I meal prep early within the day? If I’ve just a little break in the course of the day, can I cube an onion and put it in a container within the fridge?

Can I cube just a few different greens? Can I begin a recipe early? Can I do one thing within the crockpot, throw it within the morning, let it prepare dinner all day so I’ve dinner prepared by 6:00 PM? So actually simply rethinking not simply what I prepare dinner however how I prepare dinner and what’s life like for my way of life proper now. And I really feel like lots of people who’re listening may be feeling the identical. There’s one thing so exhausting about realizing daily that you must maintain 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 in the event you’re having a day the place you are able to do one thing elaborate, nice. However in the event you’re having a day the place you simply need 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 reasonably easy place, is 30 bucks, and doing that just a few nights every week actually provides up. So simply being sincere 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 loss 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 just a little reward for being so targeted and strategic with my vegetable consuming.

Yeah, I’ll name that journey self-care, and thus, it’s accountable and cash effectively spent.

Yeah, that cash was positively invested.

Not right into a brokerage account, however into you. And I really like that.

Into me, into my wellbeing.

Properly, Alana, thanks a lot for becoming a member of us.

This episode’s cash query is developing 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 12 months, which is 2024, in case anybody was confused about that.

So to assist us reply all kinds of questions on submitting your taxes this 12 months, together with what’s completely different this 12 months, whenever you may get your refund, and 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 observe that Bella, Sara, and I should not tax professionals. This isn’t monetary recommendation, just a few Nerdy meals for thought as you, pricey listener, take into consideration your personal taxes this 12 months. So with that out of the way in which, Bella, let’s begin off with a query that may be on lots of people’s minds, particularly if they’re inclined to procrastinate. What’s the tax submitting deadline this 12 months?

It is April fifteenth this 12 months, and if that date appears to be creeping up on you just a little bit, bear in mind that you may at all times apply for a six-month extension, which extends your deadline to October. This provides you extra time to file your taxes, nevertheless it does not really offer you extra time to pay them.

So one other vital date individuals might need to know: whenever you get that refund cash, assuming you get it, when can individuals anticipate to obtain their tax refunds after they file?

That is just a little little bit of a tough query as a result of it actually depends upon the way you file your taxes moderately than being a particular date. Submitting your taxes on-line is unquestionably a approach to get your refunds sooner. Normally, you’ll be able to anticipate your refund about 21 days after you file your return in the event you filed on-line, your return was error-free, and also you selected direct deposit as your refund methodology. However mailing a return means the IRS may take as much as 4 weeks simply to course of it, and you would wait as much as six months to get your refund.

And if individuals need to verify the place their refunds are, there may be an app for that. The IRS has an app referred to as IRS2Go, that is the quantity two in there, the place you’ll be able to see when your refunds ought to arrive. Additionally, in the event you do not need to obtain an app, you too can simply use the The place’s My Refund tracker on the IRS web site.

It is like monitoring a package deal if a package deal was stuffed with your personal a refund, so-

… not too dangerous. So with all that in thoughts, let’s speak about what’s new this 12 months, and by this 12 months, 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 may be unfamiliar with that, every year, the IRS offers taxpayers entry to model identify tax software program without spending a dime. Some software program companions even allow you to file federal and state returns for free of charge. So anybody who made $79,000 or much less in 2023 is eligible for this system this 12 months.

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 referred to as Direct File. Direct File’s being rolled out in phases. So it is nonetheless in its early levels, and it is solely out there in 12 states. It could’t be used to file enterprise or self-employment earnings. It’s important to take the usual deduction, and you may’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 does not put together state returns.

Sean, I do know your state, Washington, is likely one of the 12 the place you should use Direct Information. Are you going to make use of it this 12 months?

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’ll rent a CPA to do my tax return this 12 months, which is a primary for me, however possibly sooner or later if my taxes change into easy once more. We’ll see.

So in the event you 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 possibility to think about.

Okay. And talking of the usual deduction, that acquired an replace this 12 months. What’s taking place there?

That is proper. So when submitting, individuals can select both the usual deduction or they will itemize the deductions. The usual deduction is unquestionably extra standard as a result of it is simple and it advantages most individuals. It is also listed for inflation.

In order that mainly simply means the quantity you’ll be able to deduct will get larger every year. 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 12 months, a lot of individuals needed to restart paying their scholar loans. Sorry, everybody. However there’s at the least one vibrant facet of that in addition to your scholar mortgage stability beginning to go down once more. And that’s doubtlessly with the ability to write off scholar mortgage curiosity whenever you do your taxes. So what ought to people who’ve scholar loans find out about that?

There’s one thing referred to as the Scholar Mortgage Curiosity Deduction that may shave off as much as $2,500 for taxable earnings for curiosity you paid on federal scholar loans in 2023. So this may be curiosity you paid on a scholar mortgage for your self or a partner or dependent. There are some stipulations, although, as a result of it’s the IRS.

You possibly can’t declare this deduction in the event you’re married, submitting individually, in case your modified adjusted gross earnings is above a certain quantity, in the event you’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 advocate studying IRS Publication 970 for all the small print.

And for individuals who may be curious, how are you aware what your tax price is, and the way is it calculated? As a result of there’s at all times people who find themselves like, “Oh, I do not need to get a elevate 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, primarily?

Yeah, that may be a widespread 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 isn’t taxed at that one price. After which, in fact, 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 12 months 2023, which is the taxes we’re submitting this 12 months, in the event you’re a single filer who made, say, $70,000, the best tax price you are topic to is 22%, however you need to observe that I stated 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 subsequent 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’ll be able to go to our tax brackets and charges web page.

Now, let’s speak concerning the course of of truly submitting your taxes. Many shall be debating whether or not to make use of the IRS’s Direct File in the event that they dwell in a type of 12 eligible states. There’s additionally Free File, and folk may need to use the tax software program they have been utilizing for years. After which, in the event that they’re like me, they may be hiring somebody to do that work for them. So let’s speak by way of the professionals and cons of every possibility.

The way you file your taxes could be very particular person. It depends upon what your wants and priorities are. So some individuals may need to file as cheaply as they will. Some individuals may need to file in a manner that saves them essentially the most time, and the checklist goes on. There are three predominant ways in which individuals file, although.

You possibly can file on paper, you should use tax software program, or you’ll be able to work with a CPA or one other sort of tax preparer. However I will run you thru every possibility. You possibly can file a person earnings tax return on paper by filling out a 1040 after which mailing it to the IRS. This is not essentially beneficial, although, as a result of, as I discussed earlier than, if you’re owed a refund, it could actually take fairly some time to get to you.

Yeah, I am guessing most individuals aren’t going to go the paper route, and as a substitute, they’re going to go for one thing like tax software program as a result of that is just a little bit extra user-friendly and just a little bit quicker, in fact. So what ought to they find out about utilizing tax software program?

There are a variety of 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 possibility. After which, in fact, there’s your big-name tax software program firms like TurboTax and H&R Block that additionally provide free submitting for easy tax returns after which pay packages for extra complicated returns.

Most of those on-line tax software program are user-friendly. They ask questions in a Q&A method after which fill out all of the kinds you want within the background for you. With a few of these packages, you too can improve if you would like additional assist from a tax professional alongside the way in which, however that’ll often bump up the price to your prep.

And a fast observe 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 tough investing earnings, may select to get hands-on assist from a tax professional, however there aren’t guidelines round who can and might’t work with a tax preparer. You probably have a easy return however you simply need the additional assurance, hiring a professional may make sense for you. However simply remember to verify 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 after I came upon how a lot it was going to price me, a whole bunch of {dollars} actually. However that stated, my tax scenario is just a little bit sophisticated this 12 months. I am making an attempt to reap some losses with investments. So hiring an accountant is solely the easiest way 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, after 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 job on to anyone who is aware of much more than we do about taxes. It is in all probability among the finest cash we spend all 12 months.

It is value it to not really feel harassed and to not have one other job to perform, proper.

Yeah. Properly, hopefully, you all have been… all of you who’re listening have been saving up. In case you suppose you may owe cash, extra cash in your taxes this 12 months, however in the event you did not and you end up in a little bit of a bind as a result of you have got a giant tax invoice, what are some choices which are on the market? Can individuals make a take care of the IRS? Are there any fee plans out there? Does it go in your credit score report? What can individuals anticipate if they’ve an enormous tax invoice?

It is positively a actuality that some individuals may not have the means to pay an enormous tax invoice they weren’t anticipating in a giant lump sum. However I am right here to ease individuals’s worries just a little 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 depends upon 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. However, short-term fee plans must be paid off inside 180 days. Ensure you learn the superb print when making use of for fee plans, as there could also be additional 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 positively be an intimidating matter, however there are such a lot of nice assets on the market that can assist you navigate its complexities. Prep by researching completely different submitting choices, fee plans, in the event you want one, credit and deductions, and extra to set your self up for stress-free submitting this 12 months.

Nice. Properly, 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 need to hear your real-world cash questions as a result of our job is to make you smarter about your cash and make it easier to 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 electronic mail us at [email protected] and go to nerdwallet.com/podcast for more information on this episode. And bear in mind to comply with, price, and overview us wherever you are getting this podcast.

This episode was produced by Sean Pyles. Kevin Berry and Tess Vigeland helped with the modifying. Sara Brink combined our audio. And a giant thanks to NerdWallet’s editors for all their assist. And this is our transient disclaimer. We’re not monetary or funding advisors. This nerdy information is supplied for basic academic and leisure functions and should not apply to your particular circumstances.