It’s possible to amass $1 million in special health savings accounts to use in retirement, a new analysis finds, with several big caveats. You have to start young, contribute the maximum each year and leave the money untouched for decades instead of spending it on medical needs. Health savings accounts, known as H.S.A.s, let people set aside pretax money for health and medical care. To open an H.S.A., you must have a specific type of health plan with a high deductible — an amount you must cover out of pocket before insurance pays. The money can be saved or invested to grow tax-free, and is tax-free when withdrawn and spent on eligible care or products. (The federal government does not tax the accounts, but some states assess state taxes.) Because of their robust tax advantages, H.S.A.s are seen as a valuable tool to save for health needs later in life, including costs that aren’t covered by Medicare, the federal health plan for older Americans. H.S.A. funds can also be spent on nonmedical costs after age 65 without penalty. The money is taxed as ordinary income. The new analysis by the Employee Benefit Research Institute, a nonprofit group, assumes that at age 25, a saver begins contributing the maximum allowable amount each year ($4,300 for an individual in 2025 — the amount is tweaked annually for inflation — and an additional $1,000 for people 55 and older) and continues those contributions through age 64 with no withdrawals, “regardless of whether the individual uses any health care services.” It also assumes the funds are invested and earn a 7.5 percent rate of return. At lower rates of return, or fewer years of saving, the total would be less. At a 5 percent return, total savings after 40 years would be about $540,000 and at 2.5 percent, $298,000. Recent estimates of average savings needed to cover health care costs in retirement range from $165,000 to $184,000 for an individual, depending on variables like health status and the type of Medicare plan or other health coverage the person may have. The catch in saving so much in an H.S.A., of course, is the difficulty of maxing out annual contributions and leaving the money alone for four decades, paying for any needed care with other funds. Many account holders use H.S.A.s as if it were a checking account to pay for current care rather than for long-term savings. According to Devenir, an H.S.A. investment firm, 47 percent of funded H.S.A.s had withdrawals in 2023. As of mid-2024, just 9 percent of all accounts invested at least part of their balance. Paul Fronstin, director of health benefits research at the institute and an author of the analysis, said that the report illustrated the potential of H.S.A.s when someone took full advantage of them — but that not everyone could. “I don’t think it’s realistic for the average person,” he said. “You have to have enough money to max out contributions, and a lot of people don’t.” H.S.A.s have been criticized by some groups as benefiting mainly more affluent Americans who can afford to invest their contributions while paying for medical costs out of pocket. The accounts were introduced more than 20 years ago, and as of mid-2024, more than $137 billion was held in about 38 million accounts, according to Devenir. The accounts have grown along with the prevalence of health plans with high deductibles, which can make it difficult for many working people to pay for medical care, said Andrea Ducas, vice president of health policy at the Center for American Progress, a liberal think tank. “If you have less than $400 in savings and a $5,000 deductible, what does that health coverage actually mean for you?” she said. In 2024, 21 percent of people with job-based health insurance were in H.S.A.-eligible, high-deductible health plans, up from 14 percent a decade earlier, according to KFF, a nonprofit health care research group. But some research suggests many enrolled in such plans aren’t using the accounts to save for health care. Even so, various legislative proposals would broaden the availability of the accounts. One Republican-sponsored bill reintroduced in January, for instance, would expand the type of insurance plans eligible for H.S.A.s and increase annual contribution limits to better reflect the account holder’s potential out-of-pocket costs. The Tax Foundation, a research group that generally favors lower taxes, has suggested eliminating tax breaks for H.S.A.s and adopting so-called universal savings accounts that could be used for a broad variety of purposes, not just for health care, without penalty. The accounts might behave similarly to Roth individual retirement accounts, which offer no tax break for contributions but provide tax-free withdrawals (if certain requirements are met). The foundation has argued that universal accounts are more flexible and “fiscally responsible,” and that they can help simplify the current patchwork of complex, tax-favored accounts that can stymie savers. A draft list of ideas to pay for a tax cut circulated among House Republicans in January included an item that would replace H.S.A.s with universal accounts. Alex Cyriac, chief executive of Lively, a financial technology company that offers H.S.A.s., described discussion of universal accounts as a “talking point” but said the elimination of such accounts was unlikely. “I think the probability is pretty low,” largely because so many Americans have them, Mr. Cyriac said. Another bill, proposed with bipartisan support, would create a Roth-type account for health care expenses — similar to H.S.A.s but for people with low- or no-deductible health plans. Here are some questions and answers about health savings accounts: Can I take my H.S.A. with me if I change jobs? Yes. The accounts move with you if you change employers, in contrast with other workplace options like flexible health spending accounts, and there’s no deadline for spending the money. What is the minimum deductible for an H.S.A. health insurance plan? For 2025, an H.S.A.-eligible health plan must have a deductible of at least $1,650 for individual coverage and $3,300 for family coverage. What is the deadline for making an H.S.A. contribution for 2024? You can contribute for 2024 up to this year’s tax filing deadline (April 15 in most states, with later deadlines in federal disaster areas). If you are making a contribution this year for the 2024 tax year, the maximum contribution is $4,150 for individuals and $8,300 for families. (People 55 and older can contribute an additional $1,000.)

When it’s cold in northern North America, it’s high season in the warm reaches of the south — especially in the Caribbean — as snowbirds flock to sunnier shores. High season ushers in high prices, but bargain seekers can claim a stretch of sand by considering the value of all-inclusive resorts that bundle meals and activities into the rates. For example, Iberostar Waves Costa Dorada in the Dominican Republic offers a beach, pools and five restaurants (doubles from $170 a night for two). Liberty Travel, an agency based in Montvale, N.J., and known for its expertise in the Caribbean, steers clients to the Grand Palladium Jamaica Resort & Spa for its four beaches and multiple dining options (from $285 for a double). But for those seeking a D.I.Y. getaway, the following destinations allow travelers to stretch their budgets this winter.

Credit card debt is weighing on many Americans. The share of credit card holders making just the minimum monthly payment is at a 12-year high, the Federal Reserve Bank of Philadelphia reported last month. People are spending more on their cards but paying off less, increasing the amount of debt carried month to month and paying more in interest. And more people are late in paying their monthly card bill. “Credit card performance is showing signs of consumer stress,” the bank’s report said. Adding to the stress is the fact that interest rates on credit cards have risen in recent years. The average rate was more than 21 percent at the end of last year, the Federal Reserve said, compared with about 15 percent in 2019. So whether you observe “frugal” February or try a “no spend” challenge, now is a good time to make a plan to chip away at your balances. Right after the new year, “people have so many things on their mind,” said Charlestien Harris, a financial counselor in Clarksdale, Miss., with Southern Bancorp Community Partners. “By February, a person has a chance to settle down. You can begin to focus more and name a goal or two.” Advertisement SKIP ADVERTISEMENT If you’re worried about your card debt, there are options that can help you get it under control — such as transferring your balance to a lower-rate credit card, if you qualify. But the first step is to get a clear picture of your spending habits, said Daniel Yerger, a fee-only financial planner in Longmont, Colo. “Before you consolidate or refinance the debt, you have to address the ‘why’ of what’s happening,” Mr. Yerger said. If you are consistently spending beyond your means, moving the debt to a new card isn’t likely to help in the long run. “We can shuffle it around,” he said, “but you want to get ahead of it.” Mr. Yerger suggests looking at 12 months of spending — often, you can download transactions from your online account into a spreadsheet — to sum up where your money is going. Even people with higher incomes can fall into a card overspending trap, he said. Clients may dismiss larger, less frequent expenditures — say, a family trip to Disney — as outliers, even though they may be a big part of their spending. “They’re spending more than they think,” Mr. Yerger said. People tend to have an idea in their head of what they can afford to spend, he said, and seeing the numbers helps to recalibrate. Often people have card debt because of unavoidable medical bills, Ms. Harris said, but even smaller purchases can add up, particularly for those on a tight budget. She gives what she calls her “pop and chips” talk. “Most people have a habit,” she said. So a stop to buy gas for the car can easily get costly, if you also buy snacks and soda and perhaps a lottery ticket. Simply being aware of the pattern, she said, can help people spend less and perhaps put a bit more cash toward paying down debt or building a savings cushion. (She prefers to call it a “spending plan” instead of a budget because it sounds less burdensome.) Ms. Harris suggests that her clients try “Frugal February” — avoiding discretionary spending and impulse purchases, and putting the money toward debt reduction or savings — because it’s a short month, and people often stay home anyway because of cold weather. The steps can be small, she said, like watching a movie on a streaming service you already pay for instead of going out to a theater. Since it’s now tax season, she said, filers expecting a refund can consider using it to pay down debt and set aside cash for unplanned expenses. Another option, popularized on TikTok, is a “no spend” challenge, which involves paying only for necessities for a set period of time, whether a weekend, a week or longer. Mr. Yerger said that approach can be a helpful short-term experiment to gain insight into spending habits. But he cautioned that relying on willpower alone to stop overspending is difficult. “It takes more effort than they might expect.” Psychologically, he said, making a more substantial, one-time change is likely to be more sustainable than having to make the same decision — say, to skip buying a latte — 30 times a month. If you have good credit, looking for a credit card offering a zero percent balance transfer may be an option if you think you can pay off the debt during the promotional period. Some available offers give consumers up to 21 months to pay off the transferred balance with no interest, said Ted Rossman, senior industry analyst at the financial website Bankrate. Typically, the offers require a fee of 3 to 5 percent of the balance transferred. (On a $1,000 balance, that adds $30 to $50.) Another option, if you are a homeowner, is to borrow against the equity in your house — the difference between the home’s value and your mortgage. Many Americans have high home equity because housing values have risen. Rates on home equity loans and lines of credit are typically far lower than rates on credit cards because they are secured by your house. That means, however, that if you can’t pay back the debt, you may risk losing your home through foreclosure. So tapping home equity is advisable only if you’re confident you can repay the loan. If you are struggling with repaying card debt, Mr. Rossman suggested talking to a nonprofit credit counseling agency, which can help negotiate much lower rates on card debt in exchange for an agreement to pay it off over a period of several years. Kristen Holt, chief executive of GreenPath Financial Wellness, a nonprofit counseling group based in Farmington Hills, Mich., said the average debt of people enrolling in its debt management plans was about $21,000. GreenPath offers free counseling, typically over the phone, to help clients look at their overall income and spending to create a workable plan, Ms. Holt said. Depending on the borrower’s situation, counselors may suggest taking some big steps — like getting a second job to bring in more income or finding a roommate to help cover the rent. If borrowers enter a formal debt management plan, GreenPath negotiates a lower interest rate with the card companies. Borrowers can get an average 7 percent rate by enrolling in a debt management plan with GreenPath, a rate they would be highly unlikely to achieve by negotiating with creditors on their own, especially if they have maxed out their cards and missed payments. The borrower then makes payments to GreenPath, which pays the card companies and takes a fee, averaging $28 a month. (GreenPath says the drop in the rate is big enough that the borrower still saves money even with the fee.) Here are some questions and answers about credit card debt: How can I find a reputable credit counseling agency? You can search online at the National Foundation for Credit Counseling. What’s the best way to pay down credit card debt? There are two suggested self-help methods. The first, sometimes called the “avalanche” method, saves the most on interest. It involves identifying the card with the highest interest rate and putting as much as you can toward paying off that balance first, while continuing to make minimum payments on your other cards. When the balance is paid off, move on to the card with the next highest balance, and so on. The “snowball” method is similar, but starts with the card with the smallest balance. You pay that off, then move to the next largest balance. The idea is that paying off one account relatively quickly can encourage you to keep going. Will credit card interest rates be capped at 10 percent? During the presidential campaign, President Trump said he supported a temporary 10 percent rate limit on credit cards. Two United States senators, Bernie Sanders, the Vermont independent, and Josh Hawley, Republican of Missouri, have proposed legislation to set such a cap. The measure is opposed by groups representing banks and credit unions, which argue that such a move could limit the availability of credit to consumers who need it.

How much would you pay to go to the Super Bowl? Luxury packages for events like the presidential inauguration, the Olympic Games and the Super Bowl are nothing new, but in recent years, industry professionals have noticed a rise in “ultraluxe” travel — very expensive, private and customizable V.V.I.P. travel and event services. Take the Fairmont’s $350,000 package in Washington for the recent inauguration, a four-night deal that included round-trip flights for four people (and pets) from any location in the United States, a $25,000 Saks Fifth Avenue shopping spree and customized cocktails. The price for sports packages doesn’t have to soar so high, according to Virtuoso, a network of luxury and travel agencies, which said typical pricing for such events range from $10,000 to more than $50,000. “The consensus,” said Misty Belles, Virtuoso’s vice president of global public relations, “is that packages for big events like the Super Bowl and F1 sell out completely.” If you can swing five to six figures for a single experience, here’s some travel and event packages that might appeal. Advertisement SKIP ADVERTISEMENT The Super Bowl For the Super Bowl on Feb. 9 in New Orleans, the luxury hospitality and ticketing agency On Location sells packages that start at $7,050 per person and include a pregame party, open bar and a ticket to a private concert with Ludacris. A pricier offering, for $62,000, has an “all inclusive” option with seats on the 50-yard line, entry to a V.I.P. club, concierge services and a hotel stay. Roadtrips, a luxury sports travel group, also has Super Bowl packages, from $11,895 to $15,985 per person, which include game tickets, transportation during the weekend and a “V.I.P. Tailgate Party” where N.F.L. players make an appearance and the food is made by a celebrity chef.

Extra nights in cushy hotel suites, free premium air travel and even stays on private islands. Loyalty points and frequent flier miles, when strategically collected, can fund trips well beyond a traveler’s usual expectations and budget. But it isn’t easy to get these deals. Luckily for us, there’s an entire universe of experts who share their savvy in booking award travel, and at the forefront is Brian Kelly, who founded the travel website The Points Guy in 2010. For Mr. Kelly, 41, it started with the childhood challenge of booking travel for his family. At 12, he planned an entire vacation to Grand Cayman for his family of six, booking all of the flights with miles earned by his father. This successful trip laid the groundwork for his career as travel expert, he said. Deals still dictate his travel. In his new book, “How to Win at Travel,” Mr. Kelly shares advice on everything from understanding points and miles to handling flight disruptions and flight anxiety. Advertisement SKIP ADVERTISEMENT He shared some of that advice with The Times, discussing how to strategize purchases with credit cards (he has 29!), flying with children in business class and the evolving world of award travel. This conversation has been edited and condensed for clarity. You’ve researched points and miles for decades. What’s still fun about it? I love solving the puzzle. Yes, it’s a little bit difficult, but that’s also the point. If it was so easy for everyone in the world to use, it wouldn’t exist. For those who want to put in a little bit of work, I think there’s still a really high reward. Some examples: I’ve been to the Maldives, Paris and Japan on rewards points. What’s the best travel you ever scored? Airline technology can sometimes mess up in your favor. When US Airways was getting acquired by American back in 2013 or so, I had redeemed 130,000 points for a first-class, round-trip flight to Australia. I was flying during the tech transition, and they ended up refunding all of my points. I flew to Australia for absolutely free. Navigating points and miles requires a lot of legwork; travelers must compare the value of miles and dollars and points on different websites. Is it getting harder to nab good deals? The technology makes it really interesting these days. Before, you had to be an expert and know how to use 10 different airline websites. There are tools now, like seats.aero and Thrifty Traveler, that are a little wonky but not that hard to use. Award redemption is shifting, but with these technologies, it’s easier today to find those sweet spots than before. Certain airlines and partnerships still have really great value. Mostly the foreign programs, like Air Canada’s Aeroplan or Air France. You can fly business class to Japan on Japan Airlines with 60,000 American Airlines miles. You write that the best redemptions for U.S. airlines are generally on international partners, because these aren’t as tethered to dynamic pricing. The foreign airlines are eventually going to catch on. I just think they are several years behind. The prices will rise. Use points now and maximize the sweet spots. What is the No. 1 thing you’d suggest rewards novices do? It’s important for everyone to understand credit. Start with one card — it’s about getting credit cards with the big sign-up bonuses. But really the key is making sure you’re strategic about where you’re charging your dining, groceries and rent. You want to have a credit card portfolio, even if it’s just three cards. Start small, engage in the programs and then expand from there and put together a strategy that’s points and perks like trip disruption coverage. I pay every bill in full every month. When and where was the last time you flew economy? I still fly economy! Preferably for flights under an hour. You advise caution when booking travel with online travel agencies. Why? Some O.T.A.s are better than others, but a lot of their customer service is abysmal. Be careful which ones you choose. I’ve talked to hotel front desk agents: For hotel bookings, your O.T.A.s are generally looked upon as sort of the last priority. So don’t treat yourself poorly on purpose. If the price is the same, book direct. You no longer have elite status on a U.S. carrier. How is this points-only approach working for you? When we’re chasing elite status, we’re often spending more than we have to, or inconveniencing ourselves because we feel we have to keep up on the hamster wheel. I love being a free agent. I will fly the best flight for me and my family to get us there the most comfortably. I pretty much use points for all of my airfare. Advertisement SKIP ADVERTISEMENT People mistakenly assume all planes are the same, but different planes can be the dramatically much better or worse experiences: legroom, noise, amenities. Cheap is expensive, too, when you account for fees and a bad experience. What’s it like to travel frequently with young children? My older son is 2 years old and has been to 16 countries. My second son was born in December. We’re heading to Thailand for a month in April, flying with points on the Etihad Residence, where you get your own bedroom on the plane. It’ll be my second son’s first international flight. Later this year, we’re going on a cruise in Antarctica. (The cruise itself is not on points, but all of the flights and hotels before and after will be.) I think the younger you start, the better they are about traveling. When they’re young, it’s easy. It’s about preparation; snacks, activities and timing flights to sleep schedules has worked for me. Will your sons be able to fly in the main cabin after experiencing luxury flying? I plan on giving them this character-building experience when I don’t have to be there with them! Is the golden age for rewards over? There are so many credit cards and ways to earn points. It’s constantly evolving. It’s pivoting toward a more stable valuation for miles and points as more and more people get in. This might mean that points and miles will kind of land at a lower overall value. Potentially less sweet spots overall, but more easy to attain value. Because if airlines don’t become more clear about how consumers can get their value, I think they do face regulation from the government, which they obviously want to avoid. Advertisement SKIP ADVERTISEMENT It’s not just airlines that have these new pricing technologies; consumers do too. There’s all sorts of new tools and tricks. It goes both ways. Let’s end on some rapid-fire questions. Amex Centurion or Chase Sapphire lounge? Sapphire. Oneworld, SkyTeam or Star Alliance? Oneworld. TSA PreCheck, Global Entry or Clear? Global Entry. Favorite city to travel to? Cape Town. Favorite airport? Hamad International Airport in Doha. Best first class? Air France. Best airline loyalty program? Alaska Airlines. Hotel loyalty program? World of Hyatt. Carry on or check? Carry on, when possible. Babies in first and business class? Hell to the yes!

If you were planning to use your tax refund to buy the paper version of inflation bonds, you’re out of luck: That option has been eliminated. The Treasury Department ended its tax-time savings bond program as of Jan. 1. The program was the last way to buy the paper version of I bonds, as Series I savings bonds are known. The bonds aim to protect savers against the rising cost of living by paying an interest rate linked to inflation. Some people liked to give paper bonds as gifts, but others used the tax-time program because it let them buy as much as $5,000 in extra I bonds, beyond the allowed annual limit of $10,000 a person in digital bonds. (Couples filing jointly could buy a total of $25,000 in I bonds: $10,000 each, plus up to $5,000 with their refund.) Now, all savings bonds are digital and must be bought online using the department’s TreasuryDirect system. And the extra $5,000 option has ended. “You may continue to purchase up to $10,000 of series I bonds in a calendar year,” the system’s website says. You can still get your tax refund sent to your checking account, say, and then use the money to buy digital I bonds via TreasuryDirect. What’s going away is the ability to fill out a special form with your tax return and have the paper bonds bought with your refund. The change was quietly announced with a website update last year, under the Biden administration. The tax-time savings bond program was begun in 2010 to give tax filers, especially those with low and moderate incomes, a way to buy I bonds with their refunds. But the program “was costly and not frequently used,” the TreasuryDirect site says. On average, 35,000 tax filers bought paper I bonds each year, representing .03 percent of tax filers and less than 10 percent of I bond purchasers. Mailing paper bonds risked fraud, theft, loss and delays, the site says, adding that buying savings bonds online is “simple, safe and affordable.” David Enna, founder of Tipswatch.com, a website that tracks securities that protect against inflation, said the government hadn’t widely publicized its new I bond purchase policy. Some tax filers are likely to be disappointed, he said, because a popular strategy was to overpay taxes during a tax year to generate a tax refund to buy the bonds the next spring. The loss of the option to buy an extra $5,000 in I bonds will probably be unpopular among buyers, he said. The $10,000 annual cap, he said, is “too small,” because it takes years to buy enough bonds to generate significant interest. I bonds, first issued in 1998, grabbed savers’ attention during the pandemic-induced inflation surge. In 2022, the interest rate on I bonds rose to well over 9 percent, far outpacing rates on other safe options for cash. The low-risk bonds pay a rate made up of two parts: a fixed rate, set when the bond is issued and staying the same for its 30-year life, and a variable rate that changes every six months — on May 1 and Nov. 1 — based on the Consumer Price Index. The Treasury Department applies a formula to combine the two parts into an overall rate. Rates on I bonds have fallen to more pedestrian levels as inflation has eased. I bonds bought from Nov. 1, 2024, through April 30 are paying an annualized composite rate of 3.11 percent. That means the bonds aren’t a compelling way right now for parking short-term cash, said Jeremy Keil, a financial planner near Milwaukee who tracks the bonds, because safe alternatives, including high-yield savings accounts and certificates of deposit, are paying 4 percent or higher. But the bonds remain attractive for people seeking a hedge against inflation over the longer term, he said. The current fixed rate on I bonds is 1.2 percent, one of their highest in recent years. Holders will also get a variable rate tied to inflation, he said. (When rates reset in May, it’s likely that the base rate will stay about the same and the variable rate will increase, Mr. Keil said). Here are some questions and answers about I bonds: What else should I know about I bonds? Interest on the bonds is exempt from state and local income taxes. You’ll owe federal tax on the interest earned, but you can wait to pay it until you cash the bond, if you want. Advertisement SKIP ADVERTISEMENT You can’t redeem the bonds until you have held them for at least a year. And if you cash them in before five years, you’ll forfeit the last three months of interest as a penalty. What should I do if I have paper I bonds? You can hold them until you’re ready to cash them in (at a bank, if you can find one that still does it, or by mailing them to the Treasury Department). Or you can convert them to electronic bonds using your online TreasuryDirect account. Can I still buy electronic I bonds directly, using my income tax refund? No. According to the I.R.S. Form 1040 instructions for 2024, “The program allowing for your refund to be deposited into your Treasury Direct account to buy savings bonds, as well as the ability to buy paper bonds with your refund, has been discontinued.” Form 8888, which filers could previously use to direct refunds to buy the bonds, can be used to split a direct deposit refund into two accounts, like a checking or savings account or even an individual retirement account. But it cannot be used to deposit a refund into a TreasuryDirect account, said a Treasury Department spokesman.

Tax season opens Monday, and the Internal Revenue Service has announced that it has expanded its free online system for filing 2024 returns directly with the federal government. The Direct File option was initially offered in a dozen states last year to low- and moderate-income taxpayers with simple returns. The trial went well, with most filers giving it high marks. The agency said it would expand the program this year, making it available to millions of taxpayers in 13 more states and adding features to cover more tax situations. Whether Direct File continues beyond this year, however, remains to be seen. The offering has faced opposition from commercial tax-preparation software firms and from Republican members of Congress, who last month urged President-elect Donald J. Trump to end what they called the “unauthorized and wasteful” program. (The I.R.S. was tasked with exploring a free direct-filing option as part of the Inflation Reduction Act of 2022, the wide-ranging law championed by Democrats and the Biden administration.) Scott Bessent, President Trump’s nominee for secretary of the Treasury Department, which oversees the I.R.S., pledged at his confirmation hearing before the Senate Finance Committee this month that if he was confirmed, Direct File would operate for this year’s tax season. He said he would then “study” the program. The I.R.S. accepted more than 140,000 Direct File returns last year. Most were from single filers. Their average age was 33, their average income was $44,000 and a quarter had income under federal poverty guidelines, the I.R.S. said. This year, according to the I.R.S. online eligibility tool, single filers with wages of $200,000 or less in 2024 can use Direct File. For those with more than one employer, the cutoff drops to $168,600. Married couples filing jointly are eligible as long as their combined wages don’t exceed $250,000. People who itemize deductions aren’t eligible to use Direct File. Adam Ruben, vice president of campaigns and political strategy at the Economic Security Project, an advocacy group that champions efforts to help low- and moderate-income families, including free tax filing, said he was “optimistic” the program would endure because it’s easy and free. “I think it will sell itself,” he said. “No one loves to do their taxes, but you shouldn’t have to pay to get it done.” On average, Americans spend about 13 hours and $270 to prepare their taxes every year, according to the I.R.S. In last year’s pilot program, which was available for just part of the filing season, Direct File was limited to people with income such as wages reported on W-2 forms, Social Security income, unemployment payments and interest income under $1,500. This year, the system will be available from the first day of filing season and can also be used by people with higher interest income and some types of retirement income. (Gig workers still aren’t eligible.) This year’s version can also handle returns claiming more types of tax credits. In addition to the earned-income tax credit, the child tax credit, and the credit for other dependents, this year the system will cover filers claiming the child and dependent care credit; the premium tax credit for those who get health coverage from the Affordable Care Act marketplace; the credit for the elderly and disabled; and the retirement savings contributions credit, which is also known as the “saver’s credit.” People with deductions for contributing to a health savings account, a type of tax-favored account paired with a high-deductible health insurance plan, can also use the tool. This year, users will have the option of having their Direct File tax form filled in with some information the I.R.S. already has, like their name, address and Social Security number. They’ll also be able to have financial information from their Form W-2 wage statement imported electronically, but that function won’t be available until February, according to an I.R.S. video shared with reporters. “This is a huge step forward and will decrease barriers for many households,” said Courtney O’Reilly, senior program manager for tax benefits at Code for America, a nonprofit group that has worked with six states to create free state filing tools that work with Direct File. Filers can use Direct File on a mobile phone, laptop, tablet or desktop computer. Like commercial tax software, the system asks questions to guide users through their return. Filers can get help using a live chat feature. The Government Accountability Office, which generally praised last year’s pilot in a report in December, said the I.R.S. was behind in training customer service representatives for the program this year. In response, the I.R.S. said that it was “on track.” Taxpayers must create an online I.R.S. account to use Direct File. You’ll need to verify your identity by uploading a driver’s license or other ID and a photograph of yourself. Filers who must also file state tax returns are guided to a state website after completing their federal form. Matthew Chaves, 19, a college sophomore from Durham, N.C., attending school near Boston, just filed his taxes himself for the first time as part of a test phase for Direct File. Previously, he said, he had filed taxes with guidance from his mother, using commercial tax-preparation software, so he was relieved to complete his federal return on his own in about half an hour. He said he also liked that his North Carolina state tax return automatically populated with his federal information. “It was super seamless,” he said. “And also, it’s free!” He’s expecting a refund of $40. Taxpayers with income of $84,000 or less still have the option of using the separate Free File program, a partnership between the I.R.S. and several do-it-yourself tax software firms, to file free electronic returns. The I.R.S. also provides free online forms, without step-by-step guidance, that filers can use, regardless of income, to file federal returns. Some commercial providers also offer free options for filers based on their income, but consumers have sometimes found the terms of the deals confusing. Last year, the Federal Trade Commission found that Intuit, the parent of TurboTax, had engaged in deceptive advertising about its free tax filing product. Intuit has appealed the finding and the case is before the U.S. Court of Appeals for the Fifth Circuit. In an email, the company said it “looks forward to defending itself in front of a neutral arbiter and has always been clear, fair and transparent with its customers and is committed to free tax preparation.” The start of filing season comes amid a shake-up of I.R.S. leadership. Daniel Werfel, who oversaw the Direct File pilot as the agency’s commissioner, resigned Monday. (Mr. Werfel was appointed by President Joseph R. Biden and his term was scheduled to run through late 2027. But Mr. Werfel said he would resign on Jan. 20, citing President Trump’s stated plan to nominate a replacement.) Here are some questions and answers about Direct File and the 2025 tax season: What states will offer Direct File this year? In addition to the 12 states that offered the tool as a pilot last year — Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming — eligible taxpayers in 13 more states can use the system: Alaska, Connecticut, Idaho, Illinois, Kansas, Maine, Maryland, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania and Wisconsin. How do I know if I’m eligible to use Direct File? You must have lived and worked in a participating state for all of 2024, and meet other requirements. To see if you qualify, check online at IRS.gov. When is the tax filing deadline this year? The federal tax filing deadline is April 15. Direct file is scheduled to be available until Oct. 15, the deadline for those who requested an automatic extension to file.

Wishing you could buy a home? It can be challenging to save enough for a down payment, given how much houses now cost. But many people don’t realize there are myriad programs that offer grants or loans to help home buyers come up with the necessary funds. “There are tons of programs to assist them,” said Deatra Kemp, an advocate for first-time home buyers in Milwaukee. The programs can ease some of the daunting numbers behind buying a house. The median price of a home has risen to more than $400,000, meaning the once-traditional 20 percent down payment — an amount paid in cash toward the purchase of a home, in addition to the amount borrowed for a mortgage — would be about $80,000. And typical house prices are significantly higher in some parts of the country. Even 5 to 10 percent down is a stretch because rising rents have made it harder for people to save to buy a home, said Teig Whaley-Smith, chief alliance executive with the Community Development Alliance, a nonprofit group in Milwaukee that promotes affordable homeownership as a path to racial equity. “For working families,” he said, “that’s next to impossible.” Plus, increasing mortgage interest rates, which drive up monthly costs, don’t help. This week, rates for a 30-year fixed-rate mortgage rose above 7 percent — to an average of 7.04 percent — for the first time since May, according to Freddie Mac, the federally backed mortgage finance giant. Sonu Mittal, senior vice president and head of the single-family acquisitions division at Freddie Mac, said that outside of high prices and interest rates, which consumers can’t control, raising a down payment “continues to be the No. 1 barrier to homeownership.” But down-payment assistance options can help buyers come up with the necessary cash. When combined with loan programs that allow buyers to put less money down — as little as 3 percent of the home’s purchase price, in some cases — the help can make buying a home a reality. It’s also possible in some cases to put no money down. Two federal government programs offer zero percent down-payment loans to borrowers who meet specific criteria. The Department of Veterans Affairs offers full financing for veterans and those on active military duty, and the Department of Agriculture guarantees zero percent down-payment loans in rural areas. “Twenty percent down is a myth,” Ms. Kemp said. The typical down payment for first-time buyers in 2024 was 9 percent, according to the National Association of Realtors. Yet the notion that higher down payments are needed persists. As a result, many people of modest means don’t even consider the notion of owning a home, said Ms. Kemp, vice president of programs at Acts Housing, a nonprofit group that provides financial coaching and other services to help renters become homeowners. Still, finding the right assistance program isn’t easy. A 2023 report from the Urban Institute, a nonprofit research group, identified more than 1,600 government programs across the country designed to help with down payments. Some are offered by the federal government, others by state housing finance agencies or county and local governments. Community-funded organizations and even commercial lenders may also offer help. Most, but not all, programs serve first-time buyers, and most set income limits for borrowers — typically based on the median income in the home’s area. The dizzying assortment of programs, which have varying criteria and geographic restrictions, can make it challenging to identify and apply for available help. “Home buyers don’t know where to start,” said Ashley Moore, community lending manager with Chase Home Lending in Houston. Some programs offer grants, which don’t need to be repaid, but most offer help in the form of a low- or no-interest second mortgage, meaning there is additional debt on the home. Payments on the loans, however, are often deferred, meaning you don’t have to start paying them back right away, and the loans may be forgiven if you remain in the home for a certain period of time — often five years. Jung Hyun Choi, principal research associate with the Urban Institute’s housing finance policy center, said borrowers may combine benefits of several different down-payment programs, a practice sometimes called “stacking,” to come up with the necessary funds. But it can take time and effort to find and apply for various programs. “It’s pretty complicated,” she said, and can drag out the buying process. Groups like Acts Housing aim to help borrowers identify the right programs and often find that borrowers are eligible for more than one. “We love to stack,” Ms. Kemp said. Acts Housing recently worked with a buyer who was able to get $19,500 in down-payment assistance from a combination of grants from federal and private lenders and a city program, she said. The buyer put down less than $700 out of pocket at closing for a home in Milwaukee. “Get all the grants you deserve,” Ms. Kemp said. “Don’t leave any money on the table.” The borrower, Latoya Myrick, 44, who works in community services, said the assistance had enabled her to buy a duplex for about $200,000, realizing a longtime goal of owning her own home. She had tried before, she said, but didn’t have enough for a down payment. She closed on Jan. 6 and will soon move in. “I’m so grateful.” Other resources are emerging to help home buyers find down-payment assistance. Freddie Mac in late 2023 began offering a free online search tool, DPA One, aimed at helping lenders and housing counselors match eligible borrowers with down-payment help. “Loan officers may not even know there is a program available,” Mr. Mittal said. “We want to make sure we don’t miss those opportunities.” It’s too soon to say how many homes have been purchased because of the new offering, Mr. Mittal said, but the tool is gaining traction. About 7,000 loan officers use the tool, which now has information on about 800 programs across 50 states and the District of Columbia. (Home buyers can try DPA One, but it’s mainly intended for professionals.) Another option is Down Payment Resource, an online search tool. Borrowers enter details about themselves and the type of home they want and can get information about programs for which they may be eligible. You can also contact your state housing finance authority or work with a housing counseling agency certified by the federal Department of Housing and Urban Development to learn about available programs. You can search on the HUD website for agencies in your area. Here are questions and answers about mortgage down payments: Will using a down-payment assistance program cause the interest rate on my loan to be higher? Some predatory lenders may charge a higher rate to borrowers using assistance programs, Ms. Kemp said. When that happens, counselors at certified housing agencies can work with buyers to find lenders who won’t penalize borrowers using down-payment help, she said. Can I use a family gift to help with a down payment? Lenders may allow gifts from close family members to be included as part of a down payment. In 2024, 8 percent of home buyers (and 21 percent of first-time buyers) said they had used a gift from a relative or friend, according to the National Association of Realtors. You may need to provide a letter signed by the donor to document that the money doesn’t need to be repaid, according to the credit bureau Experian. Do private lenders offer assistance with down payments? Some do. Chase, for instance, offers grants of up to $7,500 in eligible areas, including federally identified neighborhoods with majority Black, Hispanic or Latino populations, that can be used toward a down payment or to reduce a home loan’s interest rate or closing costs. You can check online for available programs.

American Express said on Thursday that it would pay $230 million to settle civil and criminal allegations that the company used deceptive sales tactics related to credit card and wire transfer products sold to small business customers. The Justice Department’s civil division claimed that, from 2014 through 2017, the credit card and travel services giant misrepresented its card rewards and fees, and whether credit checks would be done without a customer’s consent. The Justice Department also said the company had submitted falsified financial information for prospective customers, such as overstating a business’s income. American Express was also accused of tricking its bank into issuing credit cards to small business customers without employer identification numbers, or E.I.N.s, which are required for certain businesses, the department said. Then, from 2018 to 2021, the department claimed, American Express deceptively sold wire transfer products known as Payroll Rewards and Premium Wire, making false claims about the products’ tax benefits. The Justice Department settlement includes a $108.7 million civil payment related to those allegations. American Express also entered a separate nonprosecution agreement with the U.S. attorney’s office for the Eastern District of New York to resolve a criminal investigation related to the Payroll Rewards and Premium Wire products. The company will pay about $138 million to resolve that matter. Amex also said on Thursday that it had reached an agreement in principle with the Federal Reserve System to resolve investigations into the same practices. The settlements include a potential credit the company is expected to receive, bringing the overall total penalty to $230 million, American Express said. The credit card giant said it “cooperated extensively” with the agencies and its regulators, and took “voluntary action” to address the issue. That included discontinuing certain products, conducting a comprehensive internal review and taking disciplinary measures, making organizational changes and enhancing its internal controls. American Express said the settlement costs were already set aside and disclosed in prior periods and will not affect its 2024 earnings guidance.

By checking in early and getting to the gate with plenty of time, you’ve done everything right. But then the airline throws a curveball, announcing an overbooked flight. Instead of boarding passengers, gate agents ask for volunteers to give up their seats. Then they stop asking and start bumping passengers off the flight. And they may call your name. This situation, which can be deeply inconvenient, is entirely legal. Airlines are allowed to oversell flights, a practice relied on to account for no-shows and to maximize revenue. Another reason they bump passengers? To swap aircraft for a smaller one with fewer seats because of factors such as weight restrictions or maintenance issues. The good news from this bad situation? Passengers can generally expect to get compensated when they’re bumped, either voluntarily or involuntarily — and in amounts that could be quite attractive. First, know what you are entitled to. In an airline’s contract of carriage, the document usually found online outlining what an airline expects from and owes passengers, carriers say they will rebook bumped passengers — whether voluntarily or involuntarily — on later flights. The rebooked flight may be on another carrier, and there are no requirements as to when the second flight must depart. In its contract of carriage, Delta Air Lines, for instance, says the passenger will be placed “on its next flight on which space is available.” Advertisement SKIP ADVERTISEMENT The Transportation Department does mandate compensation for this inconvenience, but it is up to airlines to decide how much to offer and in what form. Cash, flight credits or vouchers are most frequently offered. Generally, passengers will not be bumped after they have boarded the plane. (There are some exceptions, the D.O.T. said, such as onboard unruly behavior.) Volunteers should negotiate the compensation — the payouts may not be the same for all travelers. There is no limit to the amount of compensation that can be offered to volunteers, and gate agents will often raise amounts to entice passengers, who can then negotiate for more. Sometimes compensation can rise to the thousands of dollars, according to passenger reports, and exceed the original ticket fare. Agents will ask for volunteers over the airport intercom, or passengers will see an offer on the airline’s app, or through the app’s text messages. Airlines typically like a private approach where some passengers may accept lower offers than they might in a public negotiation, said Robert Mann, an aviation analyst and a former American Airlines executive. Less frequent customers tend to be contacted first, he added. Airlines are not required to grant all volunteers the same compensation, said Katy Nastro, an expert at the Going travel app. Compensation needs to be given at the airport or sent within 24 hours, according to the Transportation Department: Checks may be sent via the mail, or a flight voucher may be deposited in a passenger’s airline account. Compensation may be more than money or flight vouchers. In particularly desperate scenarios, Ms. Nastro added, airlines may be willing to negotiate further perks beyond a flight, which may include business class seats, a direct route, food, accommodation and lounge access. “There is no limit, per D.O.T. regulation, for voluntary amounts,” she said. “The sky is the limit there.” Not enough volunteers? The carrier will then involuntarily bump passengers. The first passengers to get bumped tend to be those who were the last to check in, said Sally French, a travel expert for the personal finance company NerdWallet. Advertisement SKIP ADVERTISEMENT In their contracts of carriages, airlines provide more details about their approach to denied boarding. Carriers usually give the following passengers priority on flights with overbooked seats: unaccompanied minors, those with elite frequent flier status or flying in premium cabins, and passengers who require special assistance. There are minimum compensation amounts for involuntarily bumping. In most cases, involuntarily bumped passengers will receive compensation. This can be a check if that’s your preference, per D.O.T. rules. For flights within the United States or departing from the United States out of the country, the amount passengers receive, according to the D.O.T., depends on factors including the ticket price, the length of their delay, and whether their flights were domestic or international. The D.O.T. lays out the minimum owed amounts on its website, although airlines may pay more. In one example, if a rebooked traveler on a domestic flight arrives between one and two hours after they should have on their original itinerary, the airline must pay 200 percent of the passenger’s one-way fare, or $775, whichever is lower. If a bumped traveler on a rebooked domestic flight arrives at their destination more than two hours later than they would have on their original itinerary, airlines could pay as much as 400 percent of the passenger’s one-way fare, or $1,550, whichever is lowest. Advertisement SKIP ADVERTISEMENT Situations may arise when no compensation will be offered. Passengers who are involuntarily denied boarding should not expect compensation if they missed the flight’s check-in deadline or if, on their replacement flight after being bumped, they arrive within an hour of their original scheduled time. Additionally, passengers who are bumped because the carrier changed the flight to a smaller aircraft should not expect compensation. If passengers were denied boarding because of weight and safety constraints that arose on a plane with between 30 and 60 seats, according to the D.O.T., they will not receive compensation. Charter flights and flights on planes with fewer than 30 seats are also exempt from the D.O.T.’s compensation rules. You should receive compensation if you are involuntarily bumped while flying to, within or out of the European Union on certain carriers. According to European Union regulations, passengers rights and compensation for voluntary bumping work similarly to those in the United States. Advertisement SKIP ADVERTISEMENT The compensation for involuntary bumping depend on distance: Passengers should receive 250 euros (around $258) for flights up to 1,500 kilometers (932 miles); 400 euros for flights between 1,500 kilometers and 3,500 kilometers, and for flights of more than 1,500 kilometers within Europe; and 600 euros for flights more than 3,500 kilometers. These travelers are also eligible for a rebooked flight or a refund, and assistance from the airline in the form of meals, refreshments and accommodation, said Tomasz Pawliszyn, the chief executive of AirHelp, a Berlin-based company that assists passengers with airline claims. Travelers denied boarding on a connecting flight because of a delayed first flight are also entitled to compensation, in amounts ranging from 125 to 300 euros, depending on distance and delay. These rights apply to flights within the European Union and operated by any airline; international flights arriving into the European Union and operated by an E.U.-based airline, and flights departing from the European Union to a country out of the bloc and operated by any airline. Know how to protect yourself from being involuntarily bumped. Experts emphasize that checking in early online, or through the carrier’s app, could help you avoid a denied boarding. They also suggest attaching frequent flier information, if you have it, to your booking. Finally, it never hurts to get to the airport early. For more travel advice, visit our collection of Travel 101 tips and hacks.