Last Minute Tax Tips - What If You Can't Pay And Other Advice

Tomorrow at midnight is Tax Day, the annual tax filing deadline for U.S. taxpayers. In keeping with this yearly ritual, I came across a piece from NBC's "The Today Show" that featured financial news correspondent Sharon Epperson (from the network's sister financial cable network, CNBC) providing last minute tax tips for late filers. In the video (below) Epperson provides, among other things, advice on what to do should you owe the I.R.S. money but can't pay at the time of filing--as well as other last-minute filing advice.

Happy filing!

Traveling By Bus Makes a Comeback

Recently on CBS's "Morning Show," the network's news travel editor, Peter Greenberg talked about the financial advantages of traveling by bus. Among the points that Greenberg made was that travel by bus is most economical for trips below $400 miles; after that, it becomes a less-bang-for-the-buck endeavor, especially in relation to a plane ride of the same distance (view video). 

In addition, Greyhound, the nation's premier cross-country bus line, has several options to make bus travel even cheaper. Most of these advantages can be capitalized on if you book through their website. Discounts are available for students with a Greyhound Student Advantage Discount Card. The card costs $20 to buy, and can pay for itself if you’re going to be making regular journeys across the country. The discount card earns users a 20% discount on bookings. Other discounts include a military discount (10% discount) and a senior discount (5%) for those aged over 62.

Other affordable bus travel alternatives include those that have less extensive, but more fixed routes to major cities include:

Megabus is a location-to-location bus line. It's somewhat upscale, offering free amenities such as free Wi-Fi and reclining seats. The fares can be more expensive than other budget bus services (see below) as a result of this, but there are some real bargains to be had if you travel on the right day and perhaps at less convenient times, such as early morning. Some fixed routes among its most traveled routes are priced as low $1.00 for a trip that lasts several hours, such as its New York to Washington DC run.  However, not all runs on this particular route leave or arrive at the most undesirable times.  As a result, a search of its site might be advisable in planning a trip through Megabus.  

Chinatown Bus is a budget bus company that services routes between the larger U.S. cities, mainly Seattle, Miami, San Francisco, San Diego, Las Vegas, Salt Lake City, Chicago, Atlanta, Orlando, Boston, New York, Philadelphia and Baltimore. Current fares include Philadelphia to New York for $10 and Washington DC to New York for $18.

Boltbus is similar to Megabus in that it offers Wi-Fi and extra leg room on its buses and fares start at just $1 dollar. After every eight trips made using the service, you’ll receive one free trip (one-way only).

Granted, long bus rides are not always the most pleasant of experiences, the prices for short and intermediate-length routes compared to airplane trips of similar duration and distance make it more-than-affordable for even the most price-conscious traveler.

New ATMs dispense $1 and $5 bills

For the life of me, I don’t why know it took banks so long to catch up to reality. But I suppose that the old saying is true about how its better being late than never. Earlier this year, it was reported that a couple of the larger banks—namely Chase and PNC—were in the process of switching over to Automatic Teller Machines (ATMs) that actually dispense $1 and $5 bills. This is a convenience that’s long overdue in the realm of banking. However, as with many such improvements in service related to banking, there are advantages and disadvantages to this move.

As many of us forced to make an unscheduled withdrawal from our local ATMs know, this move by these two banks has the potential to save us tons of money by helping to curtail the spending of the excess change we are forced to deal with because we are forced to take out more than we need. In addition, the most could save some customers money in punitive and costly fees. For example, a customer who needs only $25, but would likely overdraw their bank account if they took out $40 would benefit from smaller denominations. However, the new ATMs are free only to the customers of the particular banks. The same $3 out-of-network fees apply to non-customers as they do for any of the banks' ATMs (a customer's own bank typically charges a fee of around $1.60 or more when they use an out-of-network ATM).
At this early point in this new banking practice, it might be wise to anticipate that banks making this move to ATMS that dispense these smaller bills might be tempted become creative with other types of fees and cost to make up for the fact that it cost banks to make this switch in the first place, as well as add the smaller bills. But until banks do start adding more fees for this particular convenience, the only way money can wasted is if the customer is not being cognizant of his/her withdrawal and spending practices.

Saving Money On Cell Phone Services - T-Mobile Changes Service Plans (No More Contracts)

I’m always astounded how some news can so timely. On the heels of my last posting regarding saving on cell phone plans, yesterday it was reported (ahead of an expected press conference today) that cell phone carrier T-Mobile was preparing to be the first cell phone company to rewrite the old cell phone company model of 2-year contracts for various phone plans.

Seeking to regain a significant market share of the multi-billion dollar cell phone market it once dominated, T-Mobile became the first major cell phone company to end the often costly 2-year contract-based cell phone plan in favor installment plans based around the no-contract model (T-Mobile by all accounts languishes in 4th place among the major carriers). The reason for this revision of the company’s service model is due to the siphoning of their customer base by bigger competitors such as Verizon and Wireless and AT&T Mobile. Another reason why the company had been losing so many of its formerly loyal customers is that it had not been selling the best-selling cell phone model—Apple’s I-phone—along with its service. So in addition to scrapping contract-based plans, T-Mobile has also agreed to start offering the high-end but costly I-phone among its available cell phones.
Customers benefits from the change in marketing policy in the form of cheaper phone plans that no longer tie the customer into 2-year obligations. In addition, customers save money on those punitive cancellation charges that cell phone companies enact as a way of discouraging customers breaking their contracts. As before, T-Mobile's prices generally undercut those of the bigger phone companies. The chief downside is that its data network coverage is poorer in rural areas (as I can attest to harkening back to my days as a truck driver; in many areas such as out mountainous West, the coverage was awful). Another downside is that purchasing phones outright is still more costly (in the short term) as opposed to purchasing the phones over the course of a contract via service payments. The company will begin offering a monthly surcharge on high-end phones purchased with the new no-contract plans, but these surcharges can be avoided if you buy the phone outright. According to published reports,

Based on its new options, you will be able to get these phones alongside a monthly $50 unlimited talk and text plan (and 500MB of data thrown in for good measure). If you want unlimited data, you'll need to pay $20 more, totaling up to a reasonable $70 per month (T-Mobile News).

According to published reports, T-Mobile's service plan has a tier structure. That is, the potential monthly cost can increase should the customer opt to add an additional 2 gigabytes of mobile internet speed for every $10 added to the basic $50 monthly cost. In essence, T-Mobile will charge $60 a month for 2GB, with additional internet speeds increasing the potential monthly bill all the way up to T-Mobile's 12GB plan for a $110 per month.
Finally, along with its innovative singular no-contract service model and the I-Phone, T-Mobile plans to offer several new high-end, high-tech smart phones for the new customers it hopes to steal away from the larger carriers. They are:

Samsung Galaxy S4...
...expected in Q2 for T-Mobile.  The device will also pack a vividly bright 5-inch full HD Super AMOLED screen, either a 1.9GHz quad-core Snapdragon 600 processor or a 1.6GHz octo-core Exynos 5 Octa CPU (though chances are the U.S. model will get the former), and a 13-megapixel camera.

HTC One...
...which should be in stores now.  Not only is the One contain an all-aluminum-cased handset, it also has room under the hood for some impressive specs. It was one of the very first phones to be announced with a (1.7GHz) quad-core Snapdragon 600 processor, it has a 4-megapixel "Ultrapixel" camera that can record 1080p full HD video, and its 4.7-inch LCD screen boasts a whopping 468ppi.

BlackBerry Z10...
(pre-registration available now for T-Mobile).  In addition to running the novel and heavily gesture-based BB10 OS, the handset also sports an HDMI port, an 8-megapixel camera, and a dual-core 1.5GHz Snapdragon S4 Plus processor. All packaged in a handsome, sturdy construction.  I'm waiting for this little ditty myself!

With the announcement of T-Mobile's new service plan(s) model, the cell phone market just got a little more competitive...and a little more tolerable for those of us looking to save money on our mobile toys...I mean phones!

Saving Money On Cell Phone Services

I’ll just come right out and say that I’ve been using cell phone since the late 1990s. I’ve had both contract and prepaid services. And I don’t mind saying that for sheer savings, prepaid cell phone services beat contract services hands down (for the sensitive among the readership, I will refrain from any references about how I felt violated by the terms of previous contract services).

However, I do know that many cell phone customers are still privy to utilizing contract services for various personal reasons. For that reason, I thought I would post a little something about saving money with both cell phone and contract cell phones services. First, let’s start with the contract services.
With the many options available to cell phone customers (texting, internet access, voicemail, e-mail, etc.), those looking for the best bargain in contract cell phones have to consider what type of phone might be best for them. Nowadays, even the most basic of available cell phones have at least some options in addition to simple calling. T-Mobile, Verizon, and AT&T for example offer basic phones that all have texting, voicemail, e-mail, and camera capabilities. Such phones are perfect for those who need simple no bells-and-whistles communications, such as elderly customers, or those smart enough not to be addicted to leisure social networking. These same providers, in addition to most others, also have on the other end of the technology spectrum “smart phones” that have more apps that the average person will use. These high-end phones are mostly touch-screen android models (although there are still some Blackberry phones still favored among cell phone users), with internet service, programs that synch computer-based e-mail accounts to their phones, and a host of other cool gadgetry. The biggest difference between high-end cell phone and basic models is the reliability and speed of the networks these phones work on.  Higher speed networks (3 & 4G networks) tend to be reserved for high-end phones with internet access. 
If you already have a basic model phone, upgrading from the basic model to a high-end model from one of the major carriers isn't cheap. First, you have to buy the smart phone itself, which is usually cost in the neighborhood of between $100 to $700 when signing a two-year contract.  In addition, be prepared to fork over $70 to $110 a month for a plan with data service for internet access. That’s a lot more than a basic phone plan, which generally costs $40 to $70 a month. Even if you already own a smart phone, you might be persuaded to buy the latest new smart phones, the best being the Apple iPhone 5, the Samsung Galaxy S III, and Samsung Galaxy Note II.  Each have better cameras, bigger and more responsive screens, and faster built-in processors for speedier internet surfing and app performance.
If you want to go with a contract carrier, according to Consumer Reports, the best-rated company for customer service is Verizon. And for the third year in a row, the company with the worst customer service is AT&T. Sprint and T-Mobile are in the middle.  However, if you’re interested in contract services, you have to be willing to balance the worst aspects of a particular provider’s service with areas where they might be worth considering. Despite their reputation for poor customer service, AT&T was rated as having the best network coverage—particularly 4G internet speed—of all the major carriers.
So, what if you already have a cell phone service, and you're looking to cut monthly bills--especially if you have plans with multiple users such as family members?  Watch a recent piece from ABC news and consider these tips...

Also, if you’re looking to save money on contract phones, look into inquiring your carrier whether you can switch to their prepaid services.
And speaking of prepaid cell phone plans, Consumer Reports revealed that for sheer savings, Wal-Mart’s Straight Talk was the best-rated company. With both $30 and $45 a month plans, Straight Talk offers both basic and smart phones, with the $30 a month non-contract plans linked to the basic phones, while the $45 a month plans working only with the high-end phones (conversely, $30 plans do not work on Straight Talk’s smart phones). This is half the price of Verizon’s cheapest, unlimited air time per month plan. That’s a huge savings from the estimated $1,500 a year Americans save on contract cell phone services.
The advantages of non-contract month-to-month cell phone plans like Straight Talk include—in addition to the cost savings—the lack of credit checks, non-contractual commitments, and flexible monthly spending plans.
T-Mobile offers individual prepaid plans, “Pay As You Go” and “Pay By The Day.” The latter plan involves paying only when you use your phone. That means starting as low as $1 a day on the days you use your phone, subtracted from the $30, $50, & $100 cards you purchase. With the $1 a day plan, you pay .10 a minute with unlimited texting. With the $2 and $3 a day plans, the talking and texting is unlimited with different amounts of available web use.
Verizon's prepaid plans offers unlimited talk and texting starting at $50 a month, with both basic and smart phone availability (by the way, ranked No. 1 for best overall satisfaction and service).
There are a host of other prepaid cell phones and cell phone services (e.g., prepaid services are also offered from companies like TracFone, and MetroPCS). each with their respective pros and cons.  As with everything else involving saving money and comparison shopping, its up to you to research which phone and service suits your needs.  A good starting to begin comparing prepaid cell phones and price plans are the online offerings of the major consumer retailers, including those listed by Best Buy, Wal-Mart, and Target.  

Follow-Up: Saving Money on Prescription Drugs - Little Known Tricks

Last evening, ABC News presented a follow-up to the subject my last posting regarding the use of comparison-shopping to find the best bargains on prescription drugs.  That's right...the cost of prescription drugs are not etched in market stone as many of us would believe.  Just like any other consumption goods, the prices of prescription drugs varies, according to where you buy them, and the policies of the seller.  Watch the video below to find out how to shop around for the best drug prices...

Saving Money on Prescription Drugs - Little Known Tricks

One of the most positive results of being a news and information junkie is that I am constantly learning, especially about issues related to personal finance and economics. Monday, I was watching a segment from ABC’s “Good Morning America,” which spotlighted a family struggling with paying health care costs—particularly the cost of prescription drugs—in light of their unique circumstances. Although their circumstances are unique, the Florida family spotlighted in the piece represent the nearly 50% of Americans who need some form of prescription drugs (according to figures of the U.S. Centers for Disease Control and Prevention).
However, the family in the news segment was lucky in one respect; ABC brought in a noted health care advocate and author, Michelle Katz, to help show them ways in which they might trim down the cost of prescription drugs. Watching the piece, I was slightly taken aback by some of the little-known ways which you and I as consumers can advocate on our own behalves in saving money on prescription drugs (see video below).

There are many websites dedicated to informing the public about ways to cut costs related to health care for the consumer. As an example, start here: www.facebook.com/healthcareforless. Other places to begin searching online for ways to lower costs is to check out sites which focus on particular afflictions, such as Multiple Sclerosis or other blogs. In addition,the tips offered by Katz include:

1. Check your bill, like you would at a restaurant. 

Believe it or not, there are codes for your drugs, and billing departments often get them wrong. In helping the family, Katz found one of those wrong codes on their bill. The family was being charged for a higher priced drug. Fixing the code immediately saved them $1,200. 

2. Arm yourself with the Low RX App. 

Drug prices fluctuate like gas prices. This app tells you what the average cost is for a particular drug and its generic, and arms you with the phone numbers of every pharmacy in your area. You can call other pharmacies to comparison shop. The app also shows discounts. In some cases, you can get up to 75% off.

3. Go to big wholesalers, even if you’re not a member. 

The Low RX app revealed lower drug prices at Costco, which as it turned out, by law you can buy your prescription drugs there...even if you weren’t a member. Katz found the family's drugs at Costco for $100 less than elsewhere. 

4. Negotiate. 

If you go to smaller mom-and-pop pharmacies, you can wheel and deal to bring the price down. Bringing cash can increase your bargaining power. Instead of paying $30 for a prescription at a local pharmacy, the Florida family secured the same prescription for $12 – an $18 savings. 

5. You can go directly to the big drug companies. 

Katz called and emailed large drug companies on behalf of the Florida family. She kept at it for weeks, providing proof of the family’s financial situation and even suggested that the family might have to stop buying its particular drug altogether. 

6. Visit Needymeds.com. 

Needymeds is a nonprofit group that offers grants, vouchers and patient assistance through its website. 

7. Use an RX Access discount card. 

Together Rx Access offers savings on brand-name and generic prescription products to individuals and families without prescription drug coverage, according to its website. With the help of Michelle Katz, the Florida family in the ABC News segment lowered their monthly prescription drug bill from $20,000.19 to $1,252.28, saving them $18,747.91. 

If you're one of the nearly 50% of Americans who find themselves in need of prescription drugs, these tips should be a great starting point to lower drug costs.  I've already uploaded the Low RX App to my tablet, and it works like a charm.  And I hope to check out the other sites myself when (or if) I ever need them.
Learning is a good thing!