The Clark Howard Podcast 01.07.26 What Early Tax Filers Need To Know / When To Take Social Security
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Jan 7, 2026 Tax time is here, and confusion reigns over IRS filings. Discover why the Direct File option is disappearing and how Free File can still help taxpayers. Clark dives into the timing of Social Security benefits, advising to wait until age 70 for maximum gains, with key exceptions. He also explores the benefits of Health Savings Accounts for families, credit freeze tips, and the implications of selling rental properties if they become burdensome. A treasure trove of financial wisdom awaits!
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Check Free File Before Paying For Tax Prep
- Before buying paid tax software, check IRS Free File options which may let you prepare and file federal (and sometimes state) returns for free.
- About 65–70% of taxpayers qualify for Free File, so match participating private providers to your situation to avoid paying to file.
Direct File Ended, But Free File Still Exists
- The federal Direct File program was discontinued, which caused public confusion about free filing disappearing completely.
- Free File remains but is more hands-on: you prepare returns with private software instead of automatic government-prepared filings.
Don't Rush To Prepay Low-Rate Mortgages
- Don't prepay a low-rate mortgage if your cash can earn more than the mortgage rate; keep the cheap debt and invest instead.
- If savings yields fall to near your mortgage rate and you strongly dislike debt, paying it off can be a reasonable personal choice.