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The pandemic revealed the vulnerability of many households to increased utility bills

By Justine Calma , a senior science reporter covering climate change, clean energy, and environmental justice with more than a decade of experience. She is also the host of Hell or High Water: When Disaster Hits Home, a podcast from Vox Media and Audible Originals.

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home working utility bills

The COVID-19 pandemic has given us a sneak peek into how working from home changes electricity demand and what that might mean for Americans’ utility bills. The picture it’s painted so far isn’t very pretty, particularly for anyone who’s already struggling to meet their needs. 

The transition to remote work is changing our energy system in ways that could worsen racial and economic inequities in the US. Working from home shifts energy costs from employers to workers. That burden is bigger for people who live in older, less efficient homes.

“I was either freezing in my house in the winter and trying to work from the kitchen or burning in my house in the summer,” Destenie Nock, an assistant professor of engineering and public policy at Carnegie Mellon University, tells The Verge . She lives in a century-old home in Pittsburgh that she says isn’t as well-insulated as newer construction, which became more obvious as she worked from home after the pandemic struck in 2020.

Then in the summer, she learned that a neighbor fainted in her home during a heat spell. The air conditioner was broken, and the neighbor didn’t have the funds at the time to fix it. “It was a really clear connection to how lack of energy use can lead to really important health outcomes,” says Nock, who is also the director of the Energy, Equity and Sustainability (EES) Group at Carnegie Mellon.

How lockdowns affect energy use

Nock and a team of researchers set out to study how pandemic-induced lockdowns affect the way people use electricity in their homes. Once- predictable patterns have changed , they found. And those changes have already had disparate impacts on people based on race and income. Some of those problems could persist if working from home is here to stay. 

Nock and her fellow researchers analyzed smart meter data from thousands of homes and businesses in Arizona and Illinois — two states representative of hotter and colder regions in the US — for January 2019 through April 2020. While offices and other commercial buildings shut down and used less electricity during the pandemic, they found that residential electricity use ticked up by around 5 percent as many people spent more time in their homes. Collectively, Americans paid $6 billion more on their home electricity bills from April to July 2020 than they would have before pandemic lockdowns, a separate study by the National Bureau of Economic Research found. 

Low-income households and communities of color saw the greatest increase in electricity consumption, Nock and her co-authors found in their research. In Arizona, where the disparities were starker, electricity use jumped up by nearly 10 percent for low-income, non-white people — twice the increase in residential electricity consumption overall.

One likely explanation is that people with less money tend to live in older housing, with worse insulation, less-efficient heating and cooling systems, and older, more energy-hungry appliances. All that translates into higher electricity bills.

“We know that it’s very expensive to be poor,” Nock says. “You’re going to be needing a lot more energy consumption to achieve the same standard of living as your more wealthy counterparts.”

“We know that it’s very expensive to be poor”

Even before the pandemic, nearly one in three households in the US struggled to pay their electricity bills or heat or cool their homes. It’s a problem called energy insecurity, which got worse when more people were forced to stay at home for work and school. 

People also started using electricity during different times of the day, the researchers found. 

Historically, residential electricity use has peaked in the morning and evening, when people get ready for work and school, and when they come home and settle in for the night. Plotted on a graph, those two peaks in electricity use create a shape that’s sometimes called the “ camel curve .” But with people spending more time at home, the camel’s humps flattened — reshaping the demand curve into one with more of a prolonged peak throughout the middle of the day. 

That’s important to know because the stability of our power grid depends on a precarious balance between energy supply and demand. To keep energy use from overwhelming the grid, some utilities offer plans with “ time-of-use rates ” that make it cheaper to use electricity during times of low demand and more expensive during times of high demand. In Arizona, for example, residents included in the study who were on time-of-use plans were subject to those higher rates between 2 and 8PM. The higher daytime rates are supposed to encourage people to save electricity during that time period, relieving pressure on the grid. But residents with inflexible schedules who have to work from home just wind up paying higher bills. 

The effect of remote work on future energy demand

Looking forward, continued remote work could bend the demand curve into a new shape just as the pandemic did. That’s something utilities will have to adjust to in order to make sure everyone has enough energy at affordable prices when they most need it. 

That shift in demand could be a great opportunity for solar energy to really shine. Solar panels can harvest the most energy during the day, obviously, when the sun is out in full force. In the past, that hasn’t lined up well with peak demand. But with more people working from home during those hours, home solar systems could lower their energy costs in the long run and relieve stress on the grid. 

Unfortunately, home solar is still a luxury purchase in most cases. “[Solar panel] installation is still expensive right now. It might benefit those high-income people instead of low-income people,” says Jiehong Lou, an assistant research professor at the University of Maryland and the lead author of one of the studies she co-authored with Nock. 

While there are some options starting to pop up for renters , the prerequisites for having a residential solar setup are usually pretty hefty. Do you own your own home? Can you shell out about $15,000 to $25,000 to buy and install the panels, or is your credit strong enough to finance the purchase? Is the roof in good enough shape? Does it get enough sunlight?

The perks of home solar still aren’t reaching the folks who would benefit the most

With all those hoops to jump through, the perks of home solar still aren’t reaching the folks who would benefit the most. To even things out, Lou says, supportive policies might need to provide subsidies or other measures to make solar panels and energy-efficient appliances more accessible to everyone. 

The Biden Administration, for example, recently announced new plans to connect more people with “ community solar ” projects that allow many residents to share in the benefits of a solar farm. The aim is to make solar energy more accessible for low-income households while shrinking their energy bills. Biden’s plans specifically focus on people who live in subsidized housing, and families that qualify for help paying their heating and cooling bills through the federal Low Income Home Energy Assistance Program ( LIHEAP ). LIHEAP also provides funds for weatherizing homes to make them more energy-efficient. Things like eliminating drafts, better insulating windows, and even replacing incandescent bulbs with more efficient LED lights can make a big difference in lowering electricity costs.

Climate change, of course, makes the shift to renewable energy and more efficient homes even more urgent. Summers are hotter and more dangerous , particularly for people making do the best they can in sweltering homes.

Nock points out that to keep our energy system functional and fair, in a world where many more people work from home, we’ll need to think about more than just power lines, power plants, and solar panels. “​​They should also look at changing our housing infrastructure because energy poverty occurs in the home,” she says. Homes ought to be better places to live and work for everybody, not just the wealthy. 

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Watch CBS News

Working from home? Get ready for higher utility bills

By Irina Ivanova

June 1, 2020 / 6:59 AM EDT / MoneyWatch

While most Americans have cinched their pursestrings  since the coronavirus pandemic started, spending in one area is surging: electricity, internet and phone bills for millions of people who are working from home.

For Sarah Coryell, a college lecturer in Madison, Wisconsin, her former habit of two hours of daily internet usage has ballooned into as many as 10 when she moved to full-time teaching from home in mid-March. Hunkered down at home and leaving only to buy groceries, her electricity bill nearly doubled.

"We're here all the time, we have the lights on, everything's plugged in — we're just using more," said Coryell, 27. "The shutdown and working from home has probably cost us several hundred dollars."  

In California, residential energy use during the pandemic has risen 15% to 20% over the same period last year, the state's utilities commission reports. In New York City, residential power use is up 4% to 7%, according to Columbia University researchers . 

The Big Apple's main electricity provider, Con Edison, recently told residents to expect higher bills this summer "due to more people staying home." Engineers also have warned of potential blackouts this summer as people crank up their air conditioners.

Where the money goes

It's not just electricity. Costs that might go unnoticed in an office environment are suddenly becoming visible as homebound workers brew their own coffee, run the dishwasher multiple times and even purchase equipment for working from home.

Coryell's cell phone data use has increased about tenfold since she started working from home, forcing her to upgrade to an unlimited-data plan. She's also bought a webcam and an office chair with back support. She briefly considered making a request from the university where she works for a second monitor, but was overwhelmed by simply getting everything set up in time. As a former elementary-school teacher, she said she was used to covering work expenses out of pocket.

"We had other charges that we put on credit cards in the time being," she said. "With the COVID thing, everyone had to do emergency work, emergency make-do, and it's not like I was going to stop teaching."  

Social media is deluged with people upset about their work-from-home power bills. One person suggested on Twitter that their employer should "at least pay the electric bill for the unnecessarily powerful laptop I have to run 8 hours a day now." Another tweeted, "[I]t's spring in South Texas, and if I have to work from home, it has to be comfortable."

Sooooo is the government going to pay for my energy bill? Because it’s been like $35 during the winter, but it’s spring in South Texas and if I have to work from home, it has to be comfortable. — C.D.O. (@seedeeorkeys) March 26, 2020

Some employers have made moves on this issue. Facebook offered some of its workers a $1,000 cash bonus to help with work-from-home costs. 

Employers typically save money when people work from home, for a range of reasons — from spending less on office space to getting more of a worker's time when their commute is eliminated. A recent Deutsche Bank study suggested that companies give a financial bonus to remote workers so they can build a home office: "Might it then make sense for employers to raise salaries for staff who work from home?" the investment bank mused.  

For now, getting an employer to cover a heavy electricity bill is a question that will be decided on a case-by-case basis.

"Does that potentially mean an employer pays for electric bills? The answer will vary state to state and even city to city," said Krista Slosburg, an employment lawyer based in Seattle. "Some states and cities have laws that actually require employers to reimburse employees for work-related expenses. Depending on what that law or ordinance provides, employers might be required to pay for internet or phone usage."

California, the District of Columbia, Illinois, Iowa, Massachusetts, Montana and Pennsylvania are among the places requiring companies to pay back employees for certain out-of-pocket work costs. Courts have also sided with workers in this scenario. Businesses have been told to pay for increased cell-phone use and even chip in for a workers' rent after requiring that person to work remotely.

It's also in the employer's interest to make their employees comfortable, no matter where they're working from, said Paul Scialla, CEO of Delos, a real-estate "wellness" company whose investors include Bill Gates. Wellness issues for the work-from-home crowd could range from testing for air and water quality to standup desks to relieve achy backs.

"If the company is going to get the benefit of having employees work and not pay for an office lease, there needs to be a financial consideration," Scialla said. "The environment that people put themselves has an impact on how well they perform."

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Surprising Costs of Working from Home and Smart Solutions

Posted: February 3, 2024 | Last updated: February 3, 2024

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Discover the surprising truths of remote work and uncover hidden costs like skyrocketing utility bills and investments in technology upgrades. From the wisdom of seasoned remote workers to the clever hacks that save the day, we’ve gathered everything you need to navigate remote work.

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Increased Utility Bills

Working from home means using your own electricity, heating, and water throughout the day. This can lead to a noticeable increase in your monthly utility bills. To combat this, consider energy-efficient appliances and set a strict schedule to minimize unnecessary usage. “I saved 20% on my electricity bill by simply turning off devices when not in use,” shares Jane, an online commenter.

image credit: Arsenii-Palivoda/Shutterstock <p><span>Decide whether to have joint or separate bank accounts. Discuss the pros and cons of each and what works best for your relationship. Be transparent about your preferences and financial habits. This decision should align with your financial goals and relationship dynamics.</span></p>

Technology Upgrades

Remote work often requires a reliable computer, high-speed internet, and other tech upgrades. These costs add up quickly but are essential for productivity. To keep expenses down, look for refurbished equipment or bundle deals from providers. Investing wisely in technology can prevent costly downtime and frustration.

image credit: GaudiLab/Shutterstock <p><span>Recite daily affirmations that resonate with your life and goals. Positive statements reinforce self-belief and motivation. “I am strong, I am capable” can transform your mindset over time. Make them personal and say them with conviction.</span></p>

Ergonomic Furniture

A comfortable and ergonomic workspace is crucial for long-term health and productivity. The cost of ergonomic chairs and desks might seem steep, but they’re an investment in your well-being. To save money, consider looking for second-hand options or adjustable additions to your existing furniture. Remember, your comfort directly impacts your work performance.

image credit: Juice-Flair/Shutterstock <p><span>Remote work can lead to feelings of isolation and mental health challenges. It’s important to recognize these hidden emotional costs. Engage regularly in virtual social interactions and set boundaries for work-life balance. “Joining online communities related to my field helped me feel less isolated,” notes a remote worker.</span></p>

Isolation and Mental Health

Remote work can lead to feelings of isolation and mental health challenges. It’s important to recognize these hidden emotional costs. Engage regularly in virtual social interactions and set boundaries for work-life balance. “Joining online communities related to my field helped me feel less isolated,” notes a remote worker.

image credit: ground-picture/shutterstock <p>Tracking your sleep habits can identify patterns or issues that might be affecting your sleep. Note when you go to bed, wake up, and any nighttime awakenings. Over time, this can help pinpoint what works for you.</p>

Home Office Supplies

From paper to printers, the cost of office supplies can accumulate. Instead of making frequent small purchases, buy in bulk and look for discounts. Also, going digital wherever possible can save money and space. Efficiently managing your supplies reduces waste and expenses.

image credit: PeopleImages.com-Yuri-A/Shutterstock <p>The occasional difficulty with swallowing can happen, but it’s time to be evaluated if it becomes a consistent issue. Difficulty swallowing can be a sign of throat or esophageal cancer. It can start as a minor inconvenience but gradually progress to a more severe condition. “Eating became a challenge, and I knew something was wrong. My doctor diagnosed me with esophageal cancer,” recounted a patient named Alice.</p>

Increased Food and Snack Consumption

Being home all day might lead to more snacking and higher grocery bills. Plan your meals and snacks to avoid impulse buys and unhealthy eating. Bulk cooking and meal prepping can save both time and money. A little planning goes a long way in maintaining a healthy diet and budget.

image credit: siro46/Shutterstock <p><span>Once, you were the first to volunteer for new projects, but now, the thought of work fills you with dread. Projects and tasks that used to excite you now feel mundane. You notice a significant drop in your motivation and passion. If your job feels more like a burden than a purpose, it’s a clear red flag.</span></p>

Professional Development Stagnation

Without in-person networking and training, you might miss out on professional growth opportunities. Invest in online courses and virtual networking events to keep your skills sharp. Look for free or discounted resources provided by professional associations. “Webinars and online workshops have been a game-changer for my career development,” shares an online professional.

image credit: Rymden/Shutterstock <p>A well-thought-out budget is essential for financial success. It gives you control over your money and helps prevent overspending. Regularly review and adjust your budget to align with your goals. Sticking to a budget requires discipline but the financial rewards are worth it.</p>

Internet Security

Working from home increases the risk of cyber threats. Investing in good antivirus software and secure connections is essential but can be costly. To mitigate these costs, research the best options and consider shared licenses or family plans. Staying informed about cybersecurity can save you from potential losses.

image credit: lopolo/shutterstock <p>The temperature in a plane cabin can be unpredictable. Wearing layers allows you to easily adjust to maintain your personal comfort. This can range from a light t-shirt to a warm sweater or scarf. “Layers are the secret to staying comfortable, no matter the flight,” shares a travel expert.</p>

Heating and Cooling

Your home’s heating and cooling costs will likely rise as you spend more time there. To reduce these expenses, invest in smart thermostats and maintain your HVAC system regularly. Dressing appropriately for the season can also help you keep the thermostat at a more economical setting. Every degree counts when it comes to saving energy and money.

image credit: Miljan-Zivkovic/Shutterstock <p>Pale Luna, an urban legend about a mysterious text-based game, captivated the San Francisco Bay Area gaming community. The legend describes how a player, Michael Nevins, followed in-game coordinates to discover a gruesome scene. Although entirely fictional, this story demonstrates the power of urban legends to blur the lines between virtual worlds and reality, creating a narrative both intriguing and chilling.</p>

Distractions and Lower Productivity

Home distractions can lead to lower productivity and potentially longer work hours. Create a dedicated workspace and establish a routine to minimize distractions. Use productivity apps to stay on track and take regular breaks to maintain focus. “Setting strict work hours helped me avoid the trap of overworking,” an online commenter explains.

image credit: Olezzo/Shutterstock <p>Businesses are always looking for effective ways to reach their target audience online. As a digital marketing consultant, you can work from anywhere while helping clients build their brand through social media, email marketing, and more. Creative and strategic thinking, along with analytical skills, are crucial. Success in this field is often performance-based, making it potentially very rewarding.</p>

Wear and Tear on Personal Space

Your home will experience more wear and tear as it doubles as your office. This means more frequent maintenance and cleaning. To tackle this, set a regular cleaning schedule and perform small repairs promptly. Taking care of your space helps maintain its value and your comfort.

image credit: fizkes/shutterstock <p>Health and wellness have become a priority for companies. They’re offering gym memberships, organizing wellness programs, and providing healthy food options. These initiatives show a commitment to the overall well-being of their employees. A healthy workforce is a productive workforce.</p>

Healthcare and Wellness

Without the structured environment of an office, you might neglect physical activity and wellness. Incorporate regular exercise into your routine and consider ergonomic equipment to prevent strain. Remember, investing in your health now can prevent costly medical bills in the future. “My standing desk was a lifesaver for my back,” says a remote employee.

image credit: fizkes/shutterstock <p><span>You skip meals, exercise less, and neglect your personal hygiene. You find little to no time for activities that used to bring you joy. This neglect is a warning sign that your work-life balance is off and needs correction.</span></p>

Communication Overhead

Effective communication takes more effort when working remotely. The cost of various communication tools and the time spent organizing virtual meetings can add up. To reduce these costs, use integrated platforms and set clear communication protocols. Efficient communication saves time and reduces misunderstandings.

image credit: social fizkes/shutterstock <p><span>Sometimes, claims are denied, but that’s not the end of the road. Not understanding your right to appeal a denied claim can mean missing out on entitled benefits. Familiarizing yourself with the appeals process is crucial.</span></p>

Lack of Company Resources

At home, you don’t have access to the same resources as in the office, like printers or meeting rooms. This can lead to additional costs for similar services. Research local co-working spaces or libraries that might offer these resources for free or a minimal fee. Being resourceful can bridge the gap effectively.

image credit: Reshetnikov_art/Shutterstock <p><span>Choosing a doctor outside of your network is like taking a cab when you have a prepaid train ticket. While it may sometimes be necessary, it’s often more expensive. Staying within your insurance network can prevent unexpected bills.</span></p>

Higher Insurance Premiums

Using your home as an office might affect your home insurance premiums. Check with your provider to understand the implications and explore additional coverage if necessary. Sometimes, employers may offer compensation for this increase. Being informed helps you negotiate the best terms for your situation.

image credit: Halfpoint/Shutterstock <p><span>Setting energy efficiency standards for appliances reduces energy consumption and emissions. These standards ensure that appliances, from refrigerators to air conditioners, use less energy. They help consumers save money and reduce the environmental impact of household energy use. “Efficient appliances are a win-win for both the environment and our wallets,” says online commenter Rita V.</span></p>

Energy Inefficiency

Homes aren’t always as energy-efficient as modern offices. Improving your home’s energy efficiency can be an upfront cost but saves money in the long run. Consider insulation, energy-efficient lighting, and smart power strips. Small changes can make a significant impact on your energy bills.

image credit: Matt Gush/shutterstock <p><span>Sending documents or products can become a frequent necessity in remote work. To handle these costs, compare carriers for the best rates and consider digital alternatives whenever possible. Bulk purchasing of shipping supplies can also reduce expenses. Efficient planning and a bit of research can lead to substantial savings.</span></p>

Postage and Shipping

Sending documents or products can become a frequent necessity in remote work. To handle these costs, compare carriers for the best rates and consider digital alternatives whenever possible. Bulk purchasing of shipping supplies can also reduce expenses. Efficient planning and a bit of research can lead to substantial savings.

image credit: el-nariz/shutterstock <p><span>Remote work can complicate your tax situation, especially if you’re working across state lines. Consulting with a tax professional can help you understand and navigate these complexities. Keep thorough records of all work-related expenses for potential deductions. Proper management can lead to significant savings at tax time.</span></p>

Tax Complications

Remote work can complicate your tax situation, especially if you’re working across state lines. Consulting with a tax professional can help you understand and navigate these complexities. Keep thorough records of all work-related expenses for potential deductions. Proper management can lead to significant savings at tax time.

image credit: Dusan-Petkovic/Shutterstock <p><span>Working from home means missing out on company-provided perks like free coffee or gym memberships. To compensate, look for local deals or create your own home gym. Consider the value of these perks and find alternative ways to incorporate them into your life. Being creative can help maintain your lifestyle without breaking the bank.</span></p>

Loss of Company Perks

Working from home means missing out on company-provided perks like free coffee or gym memberships. To compensate, look for local deals or create your own home gym. Consider the value of these perks and find alternative ways to incorporate them into your life. Being creative can help maintain your lifestyle without breaking the bank.

image credit: jacob-lund/shutterstock <p><span>Don’t bottle up your feelings. Expressing emotions in a healthy way prevents them from festering. Talk to a trusted friend, write in a journal, or engage in creative activities. Acknowledging your feelings is the first step toward managing them.</span></p>

Networking Challenges

Building and maintaining a professional network is tougher from home. Attend virtual networking events and stay active on professional social media platforms. Consider setting up virtual coffee chats with colleagues and industry peers. “Regular participation in online forums has expanded my network significantly,” notes a dedicated remote worker.

image credit: g-stock-studio/shutterstock <p><span>Diversity and inclusion have moved to the forefront of company policies. There’s an increased effort to hire from diverse backgrounds, ensuring a variety of perspectives and fostering a more creative and inclusive work environment.</span></p>

Overlooked Opportunities for Advancement

Out of sight can mean out of mind when it comes to promotions and projects. Make your work and achievements visible to management through regular updates and participation in virtual meetings. Seek out additional responsibilities and demonstrate your commitment to your role. Proactively managing your career can lead to recognition and advancement even when working remotely.

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What Expenses Can I Claim For Working From Home As Self-Employed?

Working from home means saving money. When self-employed, there are many remote working-related business expenses that you can claim, including a proportion of: Gas, electricity and water bills Internet and telephone bills Rent and mortgage interest…

5 Minute Read

Last Updated: 10th November 2023

Self-Employment , Expenses , Working From Home

Working from home means saving money. When self-employed, there are many remote working-related business expenses that you can claim, including a proportion of:

  • Gas, electricity and water bills
  • Internet and telephone bills
  • Rent and mortgage interest costs
  • Council tax

These costs can be used to lower your tax bill and therefore save money for the future of your business. Here, we cover some of the expenses that you can and can’t claim if you’re self-employed, as well as how to calculate your working-from-home tax expense s .

Can I claim expenses when working from home as self-employed?

Yes! Although working from home may save you money on transportation, pricey meal deals and a takeaway cup of coffee, running a self-employed business can still be expensive.

As luck would have it, you can actually deduct some of these running costs as allowable business expenses when working out your taxable profit for that tax year.

Let’s explore what’s considered ‘allowable’…

What expenses can I claim working from home?

One of the main disadvantages of working from home is just how expensive your utility bills can be, especially during the winter months. You can generally expect to be charged more for increased use of gas, electricity and water, and possibly even your telephone and internet. But worry not – you can actually claim for a percentage of these.

Rent and mortgage expenses

In addition to your utility bills, you can also claim a proportion of your costs for rent, and mortgage interest if you own your home. You can even claim a portion of your council tax. With this in mind, you may have to pay Capital Gains Tax if you use the room solely for business purposes and sell your property in the future.

What expenses can’t I claim working from home?

Of course, you can’t claim costs for everything when working from home – that would simply be greedy. So, what can’t you claim for working remotely?

As to be expected, you can only claim for the things associated with your business, including lighting and electricity for your office space, business phone calls and business-related internet expenses. It’s not possible to claim personal expenses for things that you use privately.

How do I calculate my working-from-home tax expenses?

The amount you can claim for utility bills can be calculated using the number of rooms in your home. If you have four rooms in your home – one of which you use solely as an office – and your electricity bill is £400 per year, for example, you could claim up to £100 (400 divided by 4).

You can also avoid these complex calculations by using simplified expenses. This varies depending on the number of hours you work from home each month:

  • 25 to 50 hours a month – £10 per month
  • 51 to 100 hours a month – £18 per month
  • 101 hours a month or more – £26 per month

We understand how challenging it has been to run a small business as a sole trader during the pandemic. That’s why we’re here to help. Check out our handy Work From Home Calculator , where you can work out how much you could potentially save. 

With GoSimpleTax, you don’t have to be an expert to complete your annual tax return. Instead, we simplify matters so that you can spend more time focusing on your self-employed business and less time worrying about taxes.

With our free trial you can add your income and expense entries as well. That means you can then view how much tax you’ll owe completely free. We’ll even alert you when we think there’s a potential tax saving you might be missing out on. When you want to make more entries, or file or see a copy of your tax return, simply upgrade your account.

What’s stopping you? Sign up for GoSimpleTax today.

Working from Home Taxable Expenses Frequently Asked Questions

You can claim a proportion of your utility bills (gas,water and electricity), telecoms (internet and telephone), rent or mortage interest and council tax

You can’t claim for items that are not related your business activity while working at home.  Items such lighting and electricity for your office space, business phone calls and business-related internet expenses are OK, whereas a Netflix subscription would not be

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Home Office Tax Deduction: Work-from-Home Write-Offs for 2023

Can you claim the home office tax deduction this year?

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Interior view of a bright and modern home office

Like millions of people in the U.S., you may be fortunate to work from home. ( Data show that the number of people working from home nearly tripled over the past few years). That may make you wonder whether you can claim a home office tax deduction on your federal income tax return. After all, you likely have some unreimbursed expenses. For example, you might pay for printer paper, ink, and other office supplies. Plus, your electric and utility bills are likely higher since you're home during the day. 

But the reality is not every taxpayer can claim the home office deduction. Here's what you should know about the home office tax deduction before you file your 2023 tax return.

Home office tax deduction: Who qualifies?

Some people who work from home can deduct their business-related expenses, and there is also something called the "home office tax deduction" that lets you write off expenses for the business use of your home. However, whether you can claim those tax breaks depends on your employment status.

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Employees miss out. If you're a regular employee working from home, you can't deduct any of your related expenses on your tax return.

In the past, you could claim an itemized deduction for unreimbursed business expenses, including expenses for the business use of part of your home if they exceeded 2% of your adjusted gross income. However, that deduction was temporarily suspended. It's scheduled to go back into effect in 2026.

Home office tax deduction for self-employed people

Self-employed people can generally deduct office expenses on Schedule C (Form 1040) whether or not they work from home. This write-off covers office supplies, postage, computers, printers, and all the other ordinary and necessary things you need to run a home office.

The home office tax deduction is an often overlooked tax break for the self-employed that covers expenses for the business use of your home, including mortgage interest, rent, insurance, utilities, repairs, and depreciation. 

It doesn't matter what type of home you have (e.g., single family, townhouse, apartment, condo, mobile home, or boat.) You can also claim the home office tax deduction if you worked in an outbuilding on your property, such as an unattached garage, studio, barn, or greenhouse. 

Note: You cannot claim the home office tax deduction for any part of your home or property used exclusively as a hotel, motel, inn, or the like.

Claiming the home office tax deduction might lower your tax bill , but to qualify, you must use part of your home "regularly and exclusively" as your principal place of business. If you only work from home for part of the year, you can only claim the deduction for the period that you can satisfy the "regularly and exclusively" requirements.

"Regular use" means you use a specific area of your home (e.g., a room or other separately identifiable space) for business regularly. Incidental or occasional use of the space for business doesn't count.

"Exclusive use" means you use a specific area of your home only for your trade or business. The space doesn't have to be marked off by a permanent partition. You can't claim the home office deduction if you use the space for business and personal purposes. However, the exclusive use requirement might not apply if you use part of your home:

  • For the storage of inventory or product samples; or
  • As a daycare facility.

The space must also be used:

  • As your principal place of business for your trade or business;
  • To meet or deal with your patients, clients, or customers in the normal course of your trade or business; or
  • In connection with your trade or business if it's a separate structure that's not attached to your home.

(See IRS Publication 587 for more information about these and other requirements for the home office deduction.)

How to calculate the home office deduction

If you qualify, there are two ways to calculate the home office deduction. 

  • Under the actual expense" method , you essentially multiply the expenses of operating your home by the percentage of your home devoted to business use. If you work from home for part of the year, only include expenses incurred during that time. 
  • Under the simplified method , you deduct $5 for every square foot of space in your home used for a qualified business purpose. Again, you can only claim the deduction for the time you work from home. 

For example, if you have a 300-square-foot home office (the maximum size allowed for this method), and you work from home for three months (25% of the year), your deduction is $375 ((300 x $5) x 0.25).

Tax Tip: If you use the simplified method, you can't depreciate the part of your home used for business. However, to the extent you qualify, you can still claim itemized deductions for mortgage interest, real property taxes, and casualty losses for your home without allocating them between personal and business use.

The deduction is claimed on Line 30 of Schedule C (Form 1040) . If you use your home for more than one business, file a separate Schedule C for each business. Don't combine your deductions for each business on a single Schedule C.

If you use the actual expense method to calculate the tax break, also complete Form 8829 and file it with the rest of your tax return. If you use more than one home for business, you can file a Form 8829 for each home or use the simplified method for one home and Form 8829 for others. Combine all amounts calculated using the simplified method and amounts calculated using Form 8829, and then enter the total on Line 30 of the Schedule C you file for the business.

Employees with a side business

If you're an employee at a "regular" job, but you also have your own side hustle, you can claim deductions for business expenses and the home office deduction for your own business — if you meet all the requirements. Being an employee doesn't mean you can't also claim the deductions you're entitled to as a self-employed person.

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  • 7 Overlooked Tax Deductions and Credits for the Self-Employed
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Rocky Mengle was a Senior Tax Editor for Kiplinger from October 2018 to January 2023 with more than 20 years of experience covering federal and state tax developments. Before coming to Kiplinger, Rocky worked for Wolters Kluwer Tax & Accounting, and Kleinrock Publishing, where he provided breaking news and guidance for CPAs, tax attorneys, and other tax professionals. He has also been quoted as an expert by USA Today , Forbes , U.S. News & World Report , Reuters , Accounting Today , and other media outlets. Rocky holds a law degree from the University of Connecticut and a B.A. in History from Salisbury University.

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Home > Community > Deciding

Utility Bills 101: Utilities Tips, Average Costs, Fees, and More

Sarah Cimarusti

If you just moved or are planning a move , it’s important to plan your monthly budget around utility bills. In the US, residents should plan to spend at least $328.03 per month on essential utilities like electricity, natural gas, water, and sewer. Depending on where you live and your container size, you should also budget $25–$100 for trash and garbage collection. Additional utilities include internet ($36), phone ($114), and streaming services ($59).

Of course, climate and energy costs vary from one state to another, so utility bills do too. We looked into the average utility costs in individual states to see just how much they vary. Keep reading to learn more about monthly utility costs and get money-saving tips.

In this article:

  • Average utility costs in the US
  • How to save money on utility bills
  • Average utility costs by state
  • How to save energy
  • Average utility costs by service
  • Full data set: Ranking table of utility costs by state

Methodology

  • Electricity: $135.25
  • Natural gas: $90.62
  • Water: $39.16
  • Sewer: $63.00
  • Trash: $25-$100
  • Internet: $36
  • Phone: $114
  • Streaming services: $59

US average monthly utility bill cost: $562-$637

Every year, we review this page and update our national data and findings for every state, still we realize that many categories on this list (like electricity and natural gas) have fluctuated with inflation. Learn more about how inflation affects the cost of utilities .

How to save money on your utility bills

Before we get into more depth about utilities and how much they cost, here’s a handful of ways to save money on your utility bills every month:

  • Call around and shop providers to get the best price.
  • Adjust your thermostat or get a smart thermostat.
  • Research and compare affordable home insurance options.
  • Swap out your light bulbs with energy-efficient replacements.
  • Build credit by paying for utility bills.
  • Unplug electronics you’re not using.
  • Get solar panels for your house.
  • Replace your water heater if it’s more than 10 years old.
  • Replace your home’s air filters once a month to every 3 months.
  • Address leaks in your home.
  • Get an energy audit or HVAC maintenance checkup.
  • Wash your clothes in cold water.
  • Replace old appliances.
  • Thrift, rent, donate, and reuse items.

Homeowners can pay for kitchen upgrades or make repairs to their plumbing, electric, and HVAC systems by taking out a personal loan. While the interest may be higher on a personal loan than on a home equity loan, personal loans don’t require you to use your home as collateral. Don’t know where to start? Compare your loan options with Fiona , which simplifies your loan shopping process by delivering you personalized rates for some of the nation’s top lenders.

Explore your options .

How to save on utility costs by service

  • Heating and cooling
  • Electricity
  • Natural gas

home working utility bills

Average monthly utility costs by state

Now that we’ve discussed the national averages for utility expenses and ideas for how to save money on your utility bill, let’s talk about how much utilities cost per month in different states.

States with the least expensive utilities

1. new mexico: $401.

The year before last, New Mexico was number one on our list for the lowest utility costs in the US, and has risen back to the #1 spot again this year. With some of the largest oil and gas reserves in the nation, combined with increased investments in renewable electricity generation and energy efficiency initiatives over the past few years, New Mexico has been able to keep energy prices relatively low. 

2. Wisconsin: $431

Wisconsin residents enjoy one of the lowest average natural gas price of any state this year, with 70% of residents using natural gas to heat their homes.  In addition, Wisconsin benefitted from an average 21% reduction in home heating costs in the Midwest for 2023-24.

3. Minnesota: $451

Minnesota spends about 2% less on electricity compared to the national average, but that may change next year if Minnesota regulators approve Minnesota Power's request to increase electric rates by 12% in 2024 . 

4. Illinois: $457

The most populous state in the Midwest's average utility prices have come down year over year, moving them up to #4 in the nation for least expensive utilities in 2023, compared to #10 in 2022. Fun fact: about 95% of Illinois households use electric air conditioning, but only one in six Illinois households rely on electricity for home heating. (Almost 8 in 10 Illinois households use natural gas for heating). 29 The Land of Lincoln also enjoys a low cost of living , among other things.

5. Vermont: $460

Vermonters pay an average of $77 less than the national average in utility bills, due largely to their affordable electricity ($113.21), water ($18) sewer ($33), and internet ($25) costs, which are well below the national averages. Due partially to their small population, Vermont also has the lowest energy consumption in the country , so that helps keep costs down too.

home working utility bills

States with the most expensive utilities

1. hawaii: $897.

While Hawaii is known for its incredible beaches and laid-back lifestyles, it costs the average islander a pretty penny to live there and afford utilities, food, and housing. Hawaii has the highest electricity price, nearly triple the US average rate, and the state relies on imported petroleum for 60% of its electricity generation. 29  

2. West Virginia: $622

We’re sorry, West Virginia , but we’ve saved a spot for you as the runner-up on our most expensive utilities list. While well below the high prices for electricity and gas in Hawaii, West Virginians have the highest average water bill in the country at $91, well above the national average of $39.16. One reason for the increase this year was due to an increase in the Distribution System Improvement Charge (DSIC) , which is supposed to go toward improving infrastructure and water quality.

3. Missouri: $617

While last year Missouri ranked in the middle of the pack for utility costs, with below-average monthly utility costs, they shot up to #3 most expensive in the country in 2023, with above-average prices for natural gas, sewer and internet services.

4. Georgia: $617

Georgia continues to have some of the highest average electric ($151.25), natural gas ($119.30), and streaming service ($62) bills in the country, staying at #4 most expensive in the country this year. Luckily though, Georgians enjoy a lower cost of living, which is, on average, 50.38% lower than the national average .

5. Alabama: $615

Alabama ’s hot summers account for some of the highest electricity bills in the country, where 7 out 10 Alabama residents rely on electric energy to power their homes. 29 While Alabama took the eleventh spot on our list last year, it's moved up to #5, meaning costs have risen; namely electricity ($167.80, which is a 16.5% increase year over year).

Joe Roberts contributed to this article.

How to save money on utility bills by service

How to save on heating and cooling costs.

While this energy saver guide goes into more detail about specific ways to save on your heating and cooling costs, we wanted to summarize some top takeaways and provide more context here:

1. Seal air leaks

home working utility bills

Homeowners can save 10%–20% on heating and cooling bills by sealing air leaks around walls, ceilings, doors, fixtures, switches, electrical outlets, and windows. Take a look at these areas in your home and caulk, seal, and weatherstrip all seams, cracks, and openings to the outside.

2. Insulate your home

Properly insulating your home reduces the heat flow through the parts of the home that separate the interior from the outside. Consider adding insulation between the indoors and outdoors to reduce energy and save money.

3. Adjust your thermostat

You can save up to 10% per year on heating and cooling by turning your thermostat down 7°–10°F for 8 hours a day in the fall and winter. 3

4. Get a smart thermostat

home working utility bills

Smart thermostats allow you to schedule adjustments to your heating and cooling systems and track energy consumption all through a mobile device. Keep in mind that smart thermostats work best in homes with a furnace and/or central air conditioning. 4

In 2021, about 40% of U.S. homes had smart thermostats. 5 It is worth noting that homeowners should work with thermostat providers to better understand how to program their thermostats for maximum efficiency and with their utilities to stagger scheduling to avoid overwhelming the electrical grid, according to recent findings .

How to save on your average electric bill

Solar panels can save you money on your electric bill and increase the value of your home. You can actually see for yourself how much money going solar can save you using Google’s Project Sunroof tool . Use a site like Solar Power Authority to find solar companies in your area and compare prices from local solar panel installation experts.

Aside from installing energy-efficient, cost-effective systems like solar or geothermal , here are some quick, affordable routes to conserve electricity that your household generates:

1. Use your ceiling fan

home working utility bills

Ceiling fans are cheap to run (around a cent per hour) and can help save energy costs when used with an efficient air conditioner. By using your AC and fan at the same time, you can increase the thermostat by four degrees.

2. Avoid using the oven in the summer

home working utility bills

Cooking with an oven uses more energy than a microwave, air fryer, or grill, and it forces your air conditioner to work harder to keep your home cool during the summer months.

3. Keep shades or blinds closed during the day

home working utility bills

About 30% of a home's heating energy is lost through windows. 8 Keeping your blinds closed during the day, especially when the sun is the brightest, will prevent heat from radiating through the windows. There are also different styles and colors of window coverings that deflect more heat than others.

4. Use a power strip with a switch

home working utility bills

Appliances in standby mode account for 5% to 10% of residential energy use a year. 9 You can use a power strip with a switch to plug in your appliances and flip off the power strip when you’re not using the appliances to help save on your home’s electricity or simply unplug appliances you’re not using.

How to save on your natural gas bill

Aside from fitting your home with one of the smart thermostats we recommended earlier, the best way to save on your natural gas bill is to regularly replace your air filters and perform annual furnace maintenance.

1. Replace your air filters at least once every one to three months

home working utility bills

Your HVAC’s air filters become dirty and clogged over time, forcing systems to work harder to achieve efficiency. Clean or replace your furnace and air conditioner system's filters once a month to every three months for optimal performance. Replacement can lower your air conditioner's energy consumption by 5% to 15%. 10 It’s important to know what size filter you need. Here are some of the most common air filter sizes homeowners use:

  • 10 x 20 x 1 ’’
  • 14 x 20 x 1’’
  • 16 x 24 x 1’’
  • 18 x 30 x 1”

2. Clean air conditioner coils

Outdoor condenser coils get dirty over time, so it’s important to remove any dirt or debris that collects. Clean the coils, remove debris, and trim the foliage back at least two feet to allow for adequate airflow.

3. Get annual maintenance for your HVAC systems

Think of your HVAC system as a car. If you wait too long to service your car for regular maintenance, you could be looking at hefty repairs down the road. While it costs from $5,000 to $10,000 to install a new HVAC system, it costs around $75 and $200 per year to ensure the existing appliance is running smoothly. 11 Consider getting an annual HVAC maintenance checkup to make sure your systems are efficient and saving you money and headaches in the future.

How to save on your water bill

If you’re looking to combat water costs, pay special attention to appliances that use more water than others and identify what is necessary for water use.

1. Fix leaks

The average family can waste 180 gallons per week, or 9,400 gallons of water annually, from household leaks. 12 The most common leak culprits are the kitchen and bathroom faucet, shower hose, toilet flapper, hot water tank, and supply line. Check out this plumbing repair cost guide for the most common household leaks and how much goes into a repair.

2. Replace fixtures with WaterSense products

home working utility bills

The average family can save more than $380 annually from retrofitting with WaterSense-labeled fixtures and ENERGY STAR-certified appliances. 12 Here are some more facts on savings from WaterSense-labelled products :

  • You save 4 gallons of water every time you take a shower.
  • Faucets and aerators can save 700 gallons of water per year (and are 30 percent more efficient than standard faucets while still providing sufficient flow).
  • An irrigation controller can save your home up to 15,000 gallons of water annually.

3. Turn off the tap while you brush your teeth

This age-old water-saving tip may not sound like much, but apparently, turning off the tap while brushing your teeth can save eight gallons of water per day. 12

4. Collect rainwater for your landscape needs

home working utility bills

Depending on the region, homeowners use between 30% and 70% of their water outdoors. 14 It may seem like a no-brainer, but you can use water that collects on your roof or other catchment areas to water your lawn or clean your car. You’ll need a barrel, which will run you $50–$200 from your local hardware store or online , and to follow some simple rainwater harvesting tips .

5. Water lawns early morning and after the sun goes down

It's best to water lawns and landscapes early in the morning and when the sun goes down in the evening. Watering during this time prevents evaporation during the hottest parts of the day. Other watering tips :

  • Use native plants or plants that don’t need a lot of water.
  • Plant turf grass only in recreation areas.
  • Organize your landscape into hydrozones with a different watering schedule for each.

How to reduce your trash bill

The best way to reduce what you spend on trash collection is to reduce your waste. Here are some tips on how to reduce your trash:

home working utility bills

  • Use reusable water bottles and food containers.
  • Cook at home; limit ordering in or frequenting drive-thrus.
  • Buy in bulk.
  • Reduce purchases that come in plastic containers.
  • Thrift, rent, and reuse items.
  • Go paperless.
  • Bring reusable shopping bags to stores.
  • Compost to reduce food waste.

How to save on your internet bill

Similar to paying for channels you don’t watch, it’s possible you could be paying for internet you don’t use. If that’s you, consider reducing your internet speed or lowering your data usage. According to Reviews.org , other ways to save on your internet bill include:

  • Buy your own modem and router .
  • Bundle internet and TV.
  • Shop around and compare prices .
  • Cancel your cell phone data plan.
  • Negotiate your bill.
  • Ask for discounts.
  • See if you qualify for subsidies.

How to save on your cell phone bill

The best way to save money on your cell phone bill is to keep an eye on each mobile carrier’s promotions. You’ll often see promotions advertising discounted prices on phone plans (and even new smartphones) if you add an extra line to your plan or switch carriers.

If you aren’t concerned about using a lot of mobile data each month, a prepaid mobile plan may be right for you. Prepaid plans are often less expensive than standard postpaid plans, and many of the major mobile carriers have prepaid plan options to choose from.

Tips for Saving Money on Summer Utility Bills

home working utility bills

Average costs by service

How much does heating and cooling your home cost on average.

According to the US Energy Information Administration, the average cost of energy in US households was about $117.46 a month in 2020 1 —with nearly half of that money going to heating and cooling (which has gone up since then). The average cost of natural gas to power homes in US households was about $90.62 a month in 2022.

While your energy source determines the energy cost you pay, your bill also depends on inflation , geopolitics, and how much energy you conserve. Here are some other important factors to consider:

  • Location. Where you live and the climate you exist in play a significant role in heating and cooling costs.
  • Home size. Heating and cooling a small apartment with modern windows and proper insulation costs less than heating and cooling an older, larger home.
  • Age of appliances. Old systems and appliances are one of the largest contributors to higher energy consumption. 2

Sample-electric-utility-bill

Heating bill charges and usage vary by utility provider and by region. Here is a sample winter electric bill for two people living in a 1391-square-foot home in Wayne County, Michigan.

Get credit for paying your utility bills

In the past, having good standing with your utility providers and paying all your bills on time hasn’t really mattered in regards to your credit score. Some residents—particularly those with limited or fair credit—benefit from having their utility payment history attached to their financial footprint because it can help give them the leg up they need in the home buying process or even in making upgrades to their home.

In 2019, Experian created a free tool called Experian Boost, which connects your utility bills to your checking or savings account (with your permission) and gives you credit for making on-time utility bill payments. With Experian Boost, you can improve your credit score and build a credit history by connecting utility, telecom, and even Netflix bills you pay every month. Learn more about the service or register for your free credit score report. 

At Move.org, we provide resources for people to plan their move, find moving services that make sense for them, and get settled into their new homes. If you’re looking for more support on budget-friendly options for a move, take a look at the following resources:

  • Best Cheap Moving Companies of 2022
  • How Much Does it Cost to Move?
  • How to Pay for Your Move
  • 11 Ways to Move on a Budget
  • Best Moving Discounts and Deals

How much does the average electric bill cost?

The average monthly electric bill in the US is $135.25. In 2021, the average price per kilowatt-hour (kWh—the unit of measurement for electricity) for the residential US was 11.8 cents. 6

Some appliances and electronics use more power than others

It may come as no surprise that running an electric clothes dryer uses more kWh than charging your mobile phone or using other small electronics. Silicon Valley Power (a municipal utility provider in California) breaks down energy use by appliance. 7

Energy use by appliance

Data from Silicon Valley of Power, City of Santa Clara.  Data from January 2022. 

How much is the average natural gas bill?

The average monthly cost of natural gas to power homes in US households was about $90.62 a month in 2022, though natural gas costs more in some states than others.

Reading your natural gas bill may feel like reading a science report, so let’s get down to the most important acronym, BTU. It’s short for British Thermal Unit, a unit of energy. Your bill isn’t based strictly on BTUs. You may also see some other items on your gas bill—such as taxes. Check with your local provider for details to see what’s included in your bill.

While we don’t talk about rent in this article, it’s an important part of your monthly costs. If you want to learn how much rent can cost in the US, check out our article on the US cities with the lowest cost of living . Also, take a look at our guide about the least livable US cities for minimum wage earners . In that guide, we talk about the average rent for a one-bedroom apartment in the most populous US cities.

How much does the average water bill cost?

The average American water bill is $39.16 per month in 2022, which is actually lower than the previous year. Americans use an average of 82 gallons of water a day at home. 12 The best way to see how much water you’re using is to look at the breakdown of charges on your water bill. Here is a guide on how to decipher what each of those charges on your water bill means.

America’s water bills have been on the rise for a while. A study in 2019 found that low-income households must now spend an average of 12.4% of their disposable income and/or work 10.1 hours at minimum wage to pay for basic monthly water and sewer services. 13

Aside from growing concern over high water bills, water conservation is also an especially timely topic in the US. With droughts and heat waves impacting regions across the US, homeowners are especially interested in ways to save water in states like California, Arizona, Colorado, Nevada, New Mexico, Utah, and Wyoming.

utility bill example

Water charges and usage vary by utility provider and by region. Here is a sample water bill from two people living in a 1,900-square-foot home in Salt Lake City, Utah.

What about the average sewer bill?

The average US sewer bill is $63.00 a month. The reason it ranges depends on your water and wastewater utilities and the source of your water.

An estimated 283 million people rely on public-supply water for their household use. 15 Homeowners pay a monthly bill that covers the cost of the water and draining that water into the public sewer.

Depending on where you live, you may be billed for water usage and wastewater treatment separately. Sometimes you’ll even see water, sewage, and trash all on the same bill with one monthly fee.

Homeowners who rely on well and septic systems (15% of the US population), 16 however, pay for the well and septic to be drilled, inspected, maintained, and, in the case of septic, emptied regularly. This means they don’t get a monthly water or sewer bill.

According to recent findings from a Bluefield Research that surveyed 50 utilities in the US, combined household water and wastewater bills have increased an average of 4.2% per year over the past 9 years. 17 The study also found that utilities are trying to balance water affordability with the cost of operating water and wastewater systems by using tiered pricing to make water use less costly.

Ways to save on sewer charges:

  • Do larger loads of laundry less often. Try designating one laundry day a week and throwing every single dirty item into the wash. Washing a full load of laundry is the most cost-effective way to save on water costs. Reducing your total number of loads each year by 25% could save 3,227 gallons of water. 18
  • Wash clothes in cold water. Simply, hot water requires more energy. It might not seem like much, but washing your clothes in cold water could save you $60 a year. 19
  • Run the dishwasher when it’s full. Reduce wastewater by queuing up the dishwasher only when you’ve placed every dish and utensil you can possibly fit into it without overloading.

What is the average trash collection bill?

The average homeowner typically pays between $25 to $100 per month for residential trash and garbage collection services, depending on the location and size of the container. 20

One of the easiest ways to get rid of belongings in your home is to reach out to a junk removal company , which donates and recycles things like furniture and appliances that may be of use to others. For information on junk removal options and costs, check out our article on the average cost of junk removal .

You can also donate items to various charities for reuse.

What about recycling?

Roughly half of Americans have access to curbside recycling, and those that do are charged about $4 per month for the service. 21

The national recycling rate is 34.7%. 22 Recycling varies by city, county, and state, and there’s long been an overemphasis on consumers’ responsibility to recycle, though the process is anything but simple. Only 9% of plastic is recycled. 23 Not to mention that the recycling industry has dramatically declined since the plastic import halt in 2018 .

Many communities choose landfills over recycling for cost, convenience, and environmental reasons (while recycling has a lower carbon footprint and greenhouse gas emissions than landfills and burning, energy and resources still vary by recycled material).

Here are some things you can recycle: 24

  • Clean and dry PET plastic bottles (the bottles labeled number 1 that water and soda are usually sold in) and HDPE milk jugs
  • Aluminum and steel cans
  • Paper, newspaper, and magazines
  • Glass bottles and containers
  • Flattened cardboard and paperboard (clean and without liners)

What is the average internet bill?

The average internet bill is around $36 per month, down from last year. The monthly cost of your internet will vary widely based on connection type and speed. Slow dial-up connections cost as little as $10 per month, but the fastest fiber optic connections can cost up to $150 each month. 25

How much is the average phone bill?

The average phone bill in the US is $114, 26 but you can expect to pay as little as $60 for a single line per month to $240 per month for a family of four. 27

Nearly half of Americans think they are paying too much for cell phone service, and 73% worry that phone rates will rise, according to a recent WhistleOut survey . So, you’re not alone if you think your phone bill is too high.

What is the average monthly cost of cable?

How much does streaming cost.

The average cost Americans pay for streaming services is $59, up about $10 from last year.

There are over 100 streaming TV services available, from on-demand streaming (Netflix, Hulu, and Prime Video) to TV streaming platforms (Hulu + Live TV, Sling TV, and YouTube TV) to network-owned streaming apps (HBO Max, ESPN+, and Peacock).

To learn more about what to look for in a streaming service, what you’ll pay, and what are the best providers out there, take a look at this article on the best streaming services . And if you’re looking for ways to save on your streaming costs, check out these 10 helpful tips .

How much does cable TV cost?

While streaming accounts for nearly 33.7% of total television consumption, 28 according to Reviews.org 32 , nearly 54% of Americans are still paying for cable television (roughly $87 a month), often in addition to their streaming service bills. 

Full Ranking Dataset for utility costs by state

For energy bill costs, we pulled the average electricity price from Energybot.

For natural gas bill costs, we pulled the average rate per 1,000 cubic feet for 2021 from the U.S. Energy Information Administration 31 and assumed each household used 168 cubic feet a day.

We used WiseVoter 33 and RentCafe 17 to pull the average monthly household water and wastewater bill for each state.

Our data about the average cost of streaming services come from a survey conducted by Reviews.org 32 . taken in 2022 and applied a 23% increase for 2023 as reported by Variety.

The sum of these utilities makes up our averages for each state’s total utility costs per month. States were ranked solely based on how much these utilities cost their residents each month on average. Other factors were not considered for our rankings.

While we included trash collection 20 in the estimated US total average, we did not use it in our state rankings.

  • US Energy Information Administration, “ 2020 Average Monthly Bill—Residential. ” Accessed December 7, 2023.
  • US Department of Energy Energy Saver, “ Tips on Saving Money in Your Home ,” Published October 2017. Accessed December 7, 2023.
  • US Department of Energy Energy Saver, “ Programmable Thermostats ,” Accessed December 7, 2023.
  • Jon Chase, Wirecutter, “ When a Smart Thermostat Isn’t a Smart Choice .” Published October 25, 2021. Accessed December 7, 2023.
  • Blaine Friedlander, Cornell Chronicle, “ Smart Thermostats Inadvertently Strain Electric Power Grids .” Published July 12, 2022. Accessed December 7, 2023.
  • US Energy Information Administration “ During 2021, US Retail Electricity Prices Rose at Fastest Rate Since 2008 .” Published March 1, 2022. Accessed December 7, 2023.
  • Silicon Valley of Power, “ Appliance Energy Use Chart .” Published January 4, 2022. Accessed December 7, 2023.
  • US Department of Energy Energy Saver, “ Update or Replace Windows .” Accessed December 7, 2023.
  • US Department of Energy Energy Saver, “ 3 Easy Tips to Reduce Your Standby Power Loads .” Published February 9, 2022. Accessed December 7, 2023.
  • US Department of Energy Energy Saver, “ Maintain Air Conditioner .” Accessed December 7, 2023.
  • Glenda Taylor, Bob Vila, “How Much Does HVAC Service Cost?” Published July 6, 2022. Accessed December 7, 2023.
  • EPA, “ Statistics and Facts ,” Published May 11, 2022. Accessed December 7, 2023.
  • Manuel P. Teodoro, Robin Rose Saywitz, American Water Works Association, “ A Snapshot of Water and Sewer Affordability in the US .” Published August 4, 2022. Accessed December 7, 2023.
  • EPA, “ WaterSense Labeled Homes Outdoors. ” Published April 1, 2022. Accessed December 7, 2023.
  • US Geological Survey, “ Public Supply Water Use. ” Published March 1, 2019. Accessed December 7, 2023.
  • US Geological Survey, “ Domestic (Private) Supply Wells .” Published March 1, 2019. Accessed December 7, 2023.
  • Mihaela Buzec, RentCafe, " What Are Apartment Utilities & How Much Will They Cost Me? ," Published July 24, 2023. Accessed December 7, 2023.
  • Energy Star, “ Laundry Made Easy .” Accessed December 7, 2023.
  • Lisa Iscrupe, Save on Energy, “ The Best Energy-Saving Hacks to Save Money ,” Published June 16, 2021. Accessed December 7, 2023.
  • HomeAdvisor, “ How Much Does Junk Removal Cost? ” Published April 21, 2022. Accessed December 7, 2023.
  • The Recycling Partnership, “ 2020 State of Curbside Recycling Report .” Published April 15, 2021. Accessed December 7, 2023.
  • EPA, “ National Overview: Facts and Figures on Materials, Wastes and Recycling .” Published June 29, 2022. Accessed December 7, 2023.
  • Pang-Chieh Ho, Consumer Reports, “ Smarter: Which Plastics Are Actually Recyclable? ” March 1, 2022. Accessed December 7, 2023.
  • Waste Management, “ Recycling 101 .” Accessed December 7, 2023.
  • CostHelper, “ Cost of Internet Access .” Accessed December 7, 2023.
  • Angelo Ilumba, WhistleOut, “ How Much Are Americans Spending on Their Phone Plans? ” Published July 13, 2022. Accessed December 7, 2023.
  • Bree Fowler, Consumer Reports, “ Best Low-Cost Cell Phone Plans .” Published July 14, 2021. Accessed December 7, 2023.
  • PR Newswire, “ Nielsen: Streaming Accounted for More Than One-Third of TV Viewing in June .” Published July 21, 2022. Accessed December 7, 2023.
  • US Energy Information Administration, US States . Accessed December 7, 2023.
  • US Energy Information Administration, “ Electric Sales, Revenue, and Average Price .” Published October 7, 2021. Accessed December 7, 2023.
  • US Energy Information Administration, “ Natural Gas Prices .” Published July 7, 2022. Accessed December 7, 2023.
  • Chantel Buchi, Reviews.org, “ Best Streaming Services 2022 .” Published July 11, 2022. Accessed December 7, 2023.
  • Wisevoter, " Water Prices by State ," Accessed December 7, 2023.
  • Todd Spangler, Variety, " Price Storm: Why Major Streaming Services Have Hiked Rates This Year ," Published : November 8, 2023. Accessed December 7, 2023
  • Thad Warren, Energybot, " Average Electricity Bills in Every State [Ranks for All States + DC] ,", Published June 2023. Accessed December 7, 2023

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Get help with energy bills

The LIHEAP and WAP programs help pay for heating, cooling, and home weatherization. Learn if you are eligible and how to apply. And get help if your utilities were disconnected.

Find out if you are eligible for LIHEAP and apply

The Low Income Home Energy Assistance Program (LIHEAP) can help you pay your heating or cooling bills or get emergency services during an energy crisis.

You may be eligible for help with your energy bills based on your income. To see if you qualify and how to apply, contact your state's LIHEAP office.

Find your LIHEAP office

Find out if you are eligible for WAP and apply

For home improvements that save money on energy, you may qualify for help through the Weatherization Assistance Program (WAP).

Your eligibility for weatherization assistance depends on your income. Or you may qualify if you already receive benefits through a federal assistance program such as Temporary Assistance for Needy Families (TANF) or Supplemental Security Income (SSI). To see if you are eligible and how to apply, contact your state's WAP office.

Find your WAP office

Find out who to contact if your utilities are disconnected

Each state has a different policy about when utility companies can and cannot disconnect your electricity or natural gas for non-payment. These policies may be based on:

  • The current weather in your area
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Find out your state’s policy and who to contact if your power gets disconnected.

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Utility bills 101: what's included, average costs, and planning ahead

home working utility bills

Congratulations on making the move to your new apartment! If you're reading this, you're likely busy unpacking boxes and laying out fresh linen. Moving into a new home is always exciting and often overwhelming, particularly when you think about finances. Before you spring for fancy furniture, consider the  two most important monthly expenses for a tenant - rent payments and utility bills.  In this guide, we'll walk you through what's covered by utility bills, the average monthly costs, and planning your finances to stay within budget. Let's dive in!

What are Utility Bills?

A utility bill is a statement of the amount owed for essential services or utilities. Typically, utilities include electricity, water, and gas bills. You can also add sewage, trash, and recycling, as well as TV, internet, phone, and streaming services to the list.

home working utility bills

⏰ TIP:  Utility bills are often used as proof of residence, especially for licensing and passport needs . If you don't have a utility bill, call the issuing company directly to learn what other documents they accept, like certain tax or financial documents.

Utility Bills 101: What's Covered and for How Much?

Everyone has different lifestyles and priorities, so not everyone will be paying the same for house utilities. For instance, if you love online gaming, you're likely to use way more internet than someone who only uses the service for work or Netflix. Nonetheless, we've compiled a list of how much utility bills cost on average per month to give you a rough idea.

home working utility bills

However, bear in mind that utility bills can differ greatly depending on the service, provider, location, and the amount used.

Electricity Bill

As of  October 2021 , an average US household spends $112.50 on electricity bills per month.  While this may seem like a lot, the pandemic has actually lowered the national monthly average! For instance, in 2019, the monthly average for this in the US was $115.49.

home working utility bills

This lowered electricity bill may not have you jumping for joy just yet, but trust us, when you're on a budget, every cent counts.

How can I lower my electricity bill?

Wait until you have a full load of laundry and/or dishes before starting the dryer or the dishwasher.

Make sure to switch off lights around the house when they're not in use. The same applies to personal gadgets and appliances.

Try a smart power strip, which automatically turns off the electricity when you aren't using your devices.

home working utility bills

Access to clean water is your right as a renter. An average American family spends a little over $1,000 a year on water bills.  This works out at about $83 per month.

How can I lower my water bill?

Check for leaky faucets, sinks, toilet valves, and showerheads.

Try tweaking your habits, for example, taking shorter showers and turning off the tap while you brush your teeth.

You can also look into installing low-flow toilets or convert your current ones. This one-time investment will pay off in the future!

home working utility bills

Do you know whether or not your house uses natural gas for space and water heating? According to the  American Gas Association , nearly 50% of households do.  The average gas bill is about $59 per month.  Additionally, some house utility providers club electricity and gas bills together. This is where you need to read the fine print and ask your service provider if you have any doubts.

However, if you're wondering why the gas bill for your home is so high, there are two factors to consider:

First, that gas usage greatly depends on seasonal changes. For instance, you need heaters in the winters to keep you from shivering.

Secondly, in states that don't have natural reserves like Hawaii there's limited supply and higher rates.

Source:  US Energy Information Administration

How can I lower my gas bill?

Check for outdated appliances around the house, like old stoves and clothes dryers. If these aren't functioning properly, they'll use more energy.

Gauge your own habits - are there any ways you can cut back? For instance, lowering your thermostat by 1° can help you save up to 3% in energy usage. Pretty easy, right

Lastly, if you're having trouble paying gas bills by yourself, you can always  ask for help .

home working utility bills

Other House Utilities

As mentioned above, no two tenants or families are the same. So, how do you decide which internet plan and service provider is best for your lifestyle?  Luckily, the FCC has a handy  Broadband Speed Guide , which helps you gauge your network usage and the best overall speed for your house!

We've spent a lot of time indoors over the past two years because of the pandemic. What better way to spend your time than kicking back with a bucket of popcorn and a big TV?  Cable costs around $45 a month but can go up to $130 depending on the provider and number of channels.  Check out  this guide  for the best cable providers in 2021.

home working utility bills

Budgeting Effectively for House Utilities

Phew! We've covered all the utility bills, and now it's time to plan your monthly payments.

How can you budget effectively for utility bills?

For starters, we recommend downloading a budget app  to keep track of payments.

Try the 50/30/20 rule. 50% of your income towards rents and utility bills. 30% towards wants, like vacations and spa days—20% towards saving, which includes an emergency fund, retirement accounts, and debt payments.

Calculate your bills ahead of time by using a utility bills estimator like the one designed by Reliant Energy .

Wrapping Up

Planning your finances well ahead of time will help you keep track of where your money is going and how much you can or need to cut back. Paying utility bills on time ensures that your providers don't shut off services! Try experimenting with different budget systems until you find one that works for you. This will help you avoid late fees and getting a bad credit score.

Looking to move into a new home? We can be your guarantor for a  lease guarantee!

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  • Business and self-employed
  • Business tax

Simplified expenses if you're self-employed

Working from home.

Calculate your allowable expenses using a flat rate based on the hours you work from home each month.

This means you do not have to work out the proportion of personal and business use for your home, for example how much of your utility bills are for business.

The flat rate does not include telephone or internet expenses. You can claim the business proportion of these bills by working out the actual costs.

You can only use simplified expenses if you work for 25 hours or more a month from home.

You worked 40 hours from home for 10 months, but worked 60 hours during 2 particular months:

10 months x £10 = £100 2 months x £18 = £36

Total you can claim = £136

Use the simplified expenses checker to compare what you can claim using simplified expenses with what you can claim by working out the actual costs.

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Can I claim my home utility bills as a business expense?

Can I claim my home utility bills as a business expense?

home working utility bills

I f you work from home, you can claim some of your home utility costs as a business expense, saving yourself a bit of tax. What you can claim, and how, depends on whether you’re a company director or sole trader.

What utility expenses can company directors claim?

Option 1: Claim a flat £18 per month “working from home” expenses It’s as easy as that! You don’t even need to keep any receipts. However, if you work a lot from home, you may be able to claim more using the alternative method below.

Option 2: Claim a proportion of each utility bill using a reasonable calculation There’s no set definition of what counts as a “reasonable calculation”, but we recommend the following method.

1. Divide the utility bill by the number of rooms in your house, excluding bathrooms. E.g. You have an electricity bill for £320 and your house has four rooms excluding bathrooms. Your per room cost is £320 / 4 = £80 per room.

2. For each room you work in, divide the number of hours you work in the room per day by the total number of hours you spend in the room per day. Multiply this by 100 to get the percentage of time you spend working in the room. E.g. You spend a total of 8 hours per day in the lounge. 2 of those 8 hours are spent working. 2/8 x 100 = 25%. You spent a total of 5 hours per day in the study. 4 of those 5 hours are spent working. 4/5 x 100 = 80%

3. Multiply the room cost by the percentage. E.g. Lounge: 25% x £80 = £20 Study 80% x £80 = £64

4. Add these together to get the total claim for the utility bill. E.g. Total claim: £20 + £64 = £84.

What utility bills can I apply the above method to? For company directors, the above method can only be used for heating and electricity bills. Directors can’t claim fixed costs like insurance, mortgage repayments, repairs, council tax or cleaning. However, it’s a different story for sole traders (see below).

Top tip: Whether you’re a company director or sole trader, it’s best not to use any room solely for work. If you do, you may have to pay capital gains tax on that room when you sell your house!

What utility expenses can sole traders claim? Like company directors, sole traders have two options. They can use option 2 exactly as above to calculate a “reasonable” claim for their utility bills. However, unlike company directors, sole traders can also use this method for home insurance (but only if it also covers their business), rent, council tax, repairs, and cleaning bills that apply to the whole house, and the interest on mortgage payments (only the interest, not the full payment).

Alternatively, they can use a simplified monthly flat-rate allowance for heat and electricity bills, though this is slightly different from the one for company directors.

NB The simplified method for sole traders only covers heat and electricity. You should use the proportional method for the other expenses mentioned above (rent, council tax, etc).

The simplified allowance allows sole trader to claim a flat rate based on the hours they work during a month. The rates are as follows.

25 to 50 hours: £10 per month. 51 to 100 hours: £18 per month. 101+ hours: £26 per month.

For example: during the year, you work for 30 hours from home per month for 9 months and 60 hours from home per month for the other 3 months. Your total claim for the year is (9 x £10) + (3 x £18) = £144.

Feel free to get in touch with us if you have any questions about claiming utility bills or other expenses.

Remember It’s got more expensive for providers to buy energy, which has led to it costing more for us to power our homes and businesses. This is why at GoCompare, we have developed an interactive energy cost calculator tool to find out how much something costs to run. Use the calculator below to pick the appliances you want to compare and select how long they’ll be in use for. Energy Calculator here

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Did your Duke Energy bill shock you? Why your electric bill is so high and what you can do

Did your electric bill from January knock the wind out of you? You’re not alone. People across Greater Cincinnati are lighting up social media with their concerns over their bills.

The Enquirer spoke to Duke Energy , which provides electricity in the area, and the Public Utilities Commission of Ohio , which regulates how much electric companies can charge to deliver electricity in the state.

Here are two reasons your electric bill went up in January, and two things you can do to deal with the sticker shock in the future.

Why did my Duke electric bill go up?

  • You used a lot of electricity to run the heat.

Heating is the No. 1 use of electricity in the house and accounts for roughly half of your bill, according to Jeff Brooks, a spokesperson for Duke Energy. “If a day is particularly cold, you're going to use more electricity to heat.”

In Cincinnati, there was an increase in an index called heating-degree days from 807 in January 2023 to 1,047 in 2024, which meant people needed more electricity to keep their homes warm.  

More: Tips for saving money on your heating bill

“You had a really mild January last year,” Brooks said. “So that difference in the bill looks even more pronounced when you look at those two numbers on your bill because you had a milder year last year compared to this year. So bills are going to seem higher if you compare year over year."

  • It cost Duke Energy more to buy electricity.

The Public Utilities Commission of Ohio only regulates how much companies like Duke Energy can charge customers to deliver their electricity, not how much they charge for the electrons themselves. That means that consumers will pay based on what Duke pays, unless they can lock in a contract with another energy supplier.

Duke Energy gets much of its energy from natural gas, coal, and nuclear, Brooks said. In June, the company updated how much they pay for energy from external sources . The rates went up and this increase in cost was passed to the customer through charges such as the retail energy rider, also known as Rider RE, a fee the state allows electric companies to charge to recover what they pay.

Customers who pay for Duke Energy to source their electricity, not just deliver it, felt this change over the past few months. Brooks says that the generation costs increased the typical bill by about 30%. Brooks said that these rates get renegotiated each year, and that they can go down next year.

How can I afford my electric bill?

  • Buy your electricity elsewhere .

Ohio lets you choose your own company to supply your electricity. Duke Energy would still deliver that electricity to your home, but the price you pay for the electricity itself would be determined by your contract with the other company, instead of what Duke Energy pays. You could end up paying a higher or lower rate for the electricity, but you would no longer see so many riders on your bill, including the retail energy rider, also known as Rider RE .  

  • Sign up for an extended payment plan.

All residential customers, regardless of their income, are eligible for extended payment plans, according to the Public Utilities Commission of Ohio. These allow you to make payments on a balance over a three- to nine-month period. You can sign up for one through Duke Energy.  

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US airlines hiking checked baggage fees as costs jump

United Airlines on Friday became the third major U.S. airline to hike checked baggage fees for customers traveling in North America after American Airlines and JetBlue Airways announced similar increases.

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13 Ways to Lower Your Electric Bill

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Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

Utility costs, especially the electric bill, tend to make up a significant part of household budgets. In fact, the average electric bill for U.S. residential customers in 2022 was $137 per month (or about $1,600 a year), according to the U.S. Energy Information Administration.

Try these effective ways to lower your bill.

Do an energy audit.

Give your thermostat a nudge.

Adjust your fridge and freezer temperature.

Keep up with routine maintenance.

Take shorter showers.

Replace your showerhead.

Wash clothes in warm or cold water.

Adjust the temperature on your water heater.

Purchase energy-efficient appliances .

Ask about discounted rates.

Switch to LED lighting.

Install dimmer switches.

Use smart power strips.

Keep reading for data and details on how to keep your electric bill down. For more information on these tips and others, see the Energy Department's Office of Energy Saver .

Heating and cooling

Home heating and cooling are some of the biggest culprits behind hefty utility bills — and the best places to look for cost-cutting opportunities.

Do an energy audit

If you can, start with a visit from the pros. Utility providers will often conduct a home energy audit, sometimes for free, and can identify ways to reduce your energy usage. An audit can help you figure out if faulty seals on windows and doors or leaky ductwork, among other things, are draining energy from your home. You’ll also get recommendations for repairs and efficient fixtures. Check with your local power company for details on how to schedule an audit.

Give your thermostat a nudge

This one is easy. To save money , set your thermostat down or up 7 to 10 degrees (depending on the season) when you’re asleep or away from home. Doing so for eight hours can lower your annual heating and cooling costs by around 10%. A programmable thermostat does the work for you.

Adjust your fridge and freezer temperature

Set your fridge to 37 degrees and your freezer to 0 degrees. This will keep your food fresh, but your fridge and freezer won’t need to work as hard to maintain the temperature.

Keep up with routine maintenance

Maintenance matters to keep your HVAC and appliances running efficiently. That can be as simple as regularly swapping out the air filter of your heating and air conditioning system. It’s also wise to hire a reputable repair company for an annual check. For the fridge, you’ll want to clean the refrigerator coils at least once a year and keep it away from heat sources (e.g., a sunny window or the oven) to reduce energy usage.

» MORE: How much is the average gas bill?

Hot water is the second-largest expense in powering most homes, according to the Energy Department. Cutting back on your hot water usage — in the shower, laundry and dishwasher — can make a sizable dent in your overall energy bill.

Take shorter showers

Standard showerheads go through 2.5 gallons of water a minute, according to manufacturer Waterpik. That means trimming just two minutes off your shower time could save 5 gallons of water. Taking a shorter shower will reduce the energy used to heat the water too.

Replace your showerhead

An efficient showerhead — that uses no more than 2 gallons per minute — can reduce household water usage by 2,700 gallons per year, according to the Environmental Protection Agency. Look for one with the WaterSense label, which is certified to meet efficiency criteria set by the EPA.

Wash clothes in warm or cold water

Stick to warm or cold water when you do laundry to lower your electric bill. Doing so can also help prevent clothes from shrinking, fading and wrinkling, according to GE Appliances. That’s a win-win.

Adjust the temperature on your water heater

The default temperature setting on some water heaters is 140 degrees. Lowering it to 120 degrees can reduce your energy costs by 4%-22% annually.

Purchase energy-efficient appliances

If you’re in the market for a new washer, dishwasher or water heater, buy an energy-efficient model to yield long-term savings. A dishwasher with the EPA’s Energy Star label uses 12% less energy and 30% less water on average than a regular model. Prioritize appliances that run most often, like the fridge, dishwasher, TV, washer and dryer.

Ask about discounted rates

Some utility providers offer cheaper rates during parts of the day when general usage is down— think early in the day or late at night. You could spend less on electricity by doing laundry and other energy-intensive chores at off-peak times. If this appeals to you, ask your power company about a time-of-use rate plan.

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» MORE: What is a utility bill?

Power and lighting

Keeping the lights on accounts for roughly 15% or more of a home’s energy usage.

Switch to LED lighting

Save around $225 per year by swapping out incandescent bulbs and old light fixtures with LEDs. Doing so will certainly help you cut costs, but the switch to LEDs is inevitable. Energy Department efficiency rules that went into effect in 2022 will take most incandescent bulbs off the market. Look for lighting products that bear the Energy Star label.

Install dimmer switches

Dimmers let you set the brightness in a room to suit your needs, setting the mood and saving electricity.

Use smart power strips

Some electronic gadgets — such as TVs, computers and speakers — never truly power off. Instead, they sit in standby mode using a trickle of power that can account for 5%-10% of home energy use and $100 a year. Plug these electronics into a smart power strip, which cuts off the current when the devices aren’t in use. A power strip with a manual on/off switch is another good option.

Try a few of these tips to start, and monitor your electric bill for savings in the months ahead. Work up to more changes to compound what you save in energy and money.

On a similar note...

Massachusetts Legislature must expand community solar to more low-income households

3-minute read.

Community solar has emerged over the past decade as a leading way to help low-income residents manage their rising utility bills. It has been a valuable economic lifeline for Massachusetts residents, particularly last winter when bills dramatically spiked due to soaring natural gas prices.

State lawmakers should be applauded for favorably reporting H.3216 out of the Joint Committee on Telecommunications, Utilities and Energy. This legislation will substantially expand community solar in the commonwealth and further reduce barriers to low-income participation.

Now the Massachusetts Legislature must seize this momentum by enacting this bill. Expanding community solar will not only provide much-needed relief to consumers but also boost the economy and help the commonwealth achieve its ambitious climate goals of reaching net-zero emissions by 2050.

H.3216 sets a statewide target of installing 10 GW of community solar by 2030, which will help ensure no family in the state is left behind in the clean energy economy.

With community solar, the two-thirds of Americans who cannot install rooftop panels on their homes (because they rent, live in large buildings, or cannot afford the upfront costs) can access the benefits of solar by tapping into panels located elsewhere. Once online, households and businesses can subscribe and source a portion of their energy through the projects. Subscribers then save money on their utility bills. Every little bit helps in a state where monthly utility bills continue to be among the highest in the nation.

Opening up clean energy access and equity is also a critical component. For too long, low-income households in Massachusetts have experienced an energy burden three times higher than the average and as high as 31% in some neighborhoods, meaning that these families spend nearly one-third of their income on their energy bills.

This legislation expands access to those whose income is at or below 80% of the area median income or 200% of the federal poverty level. It slashes the red tape that has historically discouraged low-income households from participating in clean energy programs, and includes provisions for certain small businesses and low-income multidwelling units to access the program.

If enacted, this bill will remove barriers to participation by providing households with multiple easy ways to verify their income status, all without the need to provide sensitive information. It will also prevent credit-based discrimination by prohibiting solar developers from running credit checks to screen households for participation, and prohibits termination and exit fees for households. 

In short, H.3216 ensures that community solar is an easy-to-use, risk-free tool for low-income customers to reduce their energy bills.

While Massachusetts can and should go further in ensuring our community solar program is benefiting as many people as possible — such as by guaranteeing savings for participants, reserving a percentage of program capacity for low-wealth households, and allowing low-wealth participants to self-verify their income status — there is much to applaud about the pieces moving forward. This legislation is a game changer for removing the barriers that limit participation in community solar projects among low-wealth households in the Bay State. 

Community solar shapes the lives of the community for the better. At a time when working-class families continue to face higher costs for everything, from eggs to rent, expanding access to this program will help them make ends meet by lowering utility bills.

For lawmakers, expanding the program will be truly transformative, helping to meet the state’s climate goals, aid working-class families and spur the local economy. 

In politics, there are few triple-win decisions. But this is one of them.

Elena Weissmann is the northeast regional director for Vote Solar, and James Feinstein is policy director at Arcadia, the nation’s largest subscriber manager developer of community solar projects.

NBC New York

Here's what's open and closed on Presidents Day 2024 and why we celebrate the holiday

Here's a look at what presidents day is, when it takes place and what will be open and closed, published february 16, 2024 • updated on february 17, 2024 at 1:40 pm.

The U.S. is celebrating Presidents Day Monday and while many will be off work for the federal holiday, they'll also be wondering where they can go and what they can do.

Here's a look at what Presidents Day is, when it takes place and what will be open and closed:

What is Presidents Day and why do we celebrate it?

The earliest iteration of Presidents Day dates back to the 1800s, when the life of first U.S. President George Washington was celebrated each Feb. 22, which was his birthday, according to History.com . In 1885, Washington's birthday became the first to be designated as a federal holiday.

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Then, in 1971, the holiday was moved to third Monday in February as a result of the Uniform Monday Holiday Act, which was designed to give workers a number of three-day weekends throughout the year. According to the National Archives , the position of the holiday between Washington's birthday and Abraham Lincoln's birthday, which was Feb. 12, "gave rise to the popular name of Presidents Day."

Since Lincoln's birthday wasn't a federal holiday, Presidents Day has become a day to honor both presidents.

When is Presidents Day?

U.s. & world.

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In 2024, Presidents Day falls on Monday, Feb. 19.

What's open and closed for Presidents Day 2024?

Because Presidents Day is a federal holiday, many facilities will be closed.

Banks: Mostly closed

Presidents Day is a holiday for the Federal Reserve Bank, meaning most bank locations will be closed. TD Bank stores will be open, though.

Post office: Closed

Because Presidents Day is a federal holiday, USPS offices will be closed.

UPS: Locations open

UPS says "pickup and delivery services are available," on Presidents Day. The company notes that UPS SurePost and UPS Mail Innovations deliveries "will require one additional business days’ time in transit due to the Federal (USPS) holiday."

The UPS Store locations are open, however.

FedEx: Modified service

Though most routes will operate normally, FedEx says it will employ modified service for FedEx Express and Ground Economy for the holiday.

Schools: Mostly closed

Most schools across the country are closed on Presidents Day, with some districts even having off the Friday before the holiday as well.

Grocery stores: Mostly open

Stores like Trader Joe's, Costco and more have said they will operate regular hours. Check your local store for hours.

Retailers and restaurants: Mostly open

While most government functions will not be operating on Monday, most big box stores and restaurants will remain open.

Many major chains will be offering a number of holidays sales in celebration of the day.

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Some ComEd customers can't log in to access bills, get wrong balances during system upgrade

Samantha Chatman Image

CHICAGO (WLS) -- Some ComEd customers said they can't log into their accounts to pay their bill and, when calling customer service have been told outrageous balances, while the utility's billing system undergoes an upgrade.

ComEd said it is in the middle of a billing system upgrade, and during the process some customers have had problems logging into their accounts. That has left them confused about how much they owe, when they should pay. Scammers are now taking advantage of this confusion, calling customers pretending to be from ComEd.

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Bianca Washington said she is among those customers who can't log into their accounts.

"When I pressed log-on, I get an error message saying we're sorry this page is unavailable," she said.

The system upgrade will update account numbers, and as a result the self-service page is "temporarily unavailable."

"It's an inconvenience if I'm trying to pay my bill online because I don't want to get late payments or a late fee," Washington said.

The issue has left consumers confused and concerned.

"You know, I think what happened is, as you go into these transitions, you have to shut down you online technology," said Melissa Washington, senior vice president of customer relations for ComEd. "I think what's really driving this is, that was a five-day outage that was planned, and then when we brought the system back up, the digital is not back up yet. So I think it's compounding because of that."

ComEd said when customers couldn't get into their accounts, some called ComEd's number to get their balance or pay by phone. When they did, some customers heard their amount due is $9,999.99, leaving some shocked.

Washington assured customers this is an automated error.

"What we believe may have happened, someone may have, during the time that we were still down, made a phone call to get into an automated payment system through one of our vendors that had a default balance due, which was the $9,999," she said.

ComEd said scammers are already trying to capitalize on the confusion, calling customers to say they'll accept payment by phone.

"If someone calls you, even if they call you from a number that looks like a ComEd number, that could be spoofing. So please do not give anyone payment over the phone if they've called you," Washington said.

So what should you do about your bill?

ComEd said you can call their number, 1-800-334-7661 (1-800-EDISON), wait in the queue, and someone over the phone can assist you, but there could be longer than normal wait times. The utility said when you call you can opt for the virtual hold option, and a legitimate customer service agent will call you back to help with payment.

ComEd said customers will not be disconnected for nonpayment during this time, and they will not be charged a late fee. They are opening a call center Saturday from 7 a.m. to 5 p.m. to hep with the influx of calls. They're hoping to be fully back online soon.

Full statement from ComEd

"ComEd is aware that some of our account services are temporarily unavailable as we perform maintenance to our system. During this time, ComEd customers will not incur any negative impact, including the issuance of late payment fees, resulting directly from the system upgrade. Please note that ComEd does not, at any time, contact customers by phone, text or email to demand immediate payment - especially with a prepaid cash card, QR code, cryptocurrency or third-party banking app. If you believe you've been the target of such a scam, call ComEd immediately at 800-EDISON1 (800-334-7661). To learn more about energy-related scams, visit ComEd.com/ScamAlert."

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After rate hikes this year, PG&E announces nearly 25% increase in profits to $2.2B for 2023

PG&E customers already paid some of the highest energy bills in the country before 2024's hikes.

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SAN FRANCISCO (KGO) -- The Pacific Gas and Electric Company (PG &E) announced on Thursday that it saw an almost 25 percent increase in profits for 2023. This comes after the utility company slapped customers with substantial rate hikes at the beginning of this year.

"It's a joke. It's an absolute joke."

Shock on the streets of San Francisco Thursday.

RELATED: PG &E requests another rate increase. Here's how much you could pay in 2024

Earlier in the day, PG &E announced its profits for 2023 surged to over $2.2 billion - a jump of almost 25 percent.

"These outrageous profits that the PG &E shareholders are pocketing are coming out of the pockets of customers," said Mark Toney.

Toney works for The Utility Reform Network or TURN.

He says the profits are a slap in the face to customers after substantial rate hikes at the beginning of this year.

"I think a lot of people get upset and say, PG &E cries poor me and yet they have plenty of money," Toney said.

MORE: California utility companies propose charging customers based on how much money they make

PG &E customers already paid some of the highest energy bills in the country before 2024's hikes.

PG &E declined to do an on-camera interview with ABC7 News, but sent us a statement that says:

"The investments we plan in 2024 and beyond focus on three goals: keeping our energy system safe and reliable for customers, meeting growing energy demand and adding even more renewables to our energy mix. At the same time, we're aggressively focused on funding new ways to work so that we can keep future bill increases at or below a broader, long-term inflation rate of two percent to four percent."

Those words of little comfort though to several PG &E customers.

MORE: CA receives $67.5 million to modernize power grid, help avoid rolling blackouts

Many of whom tell us they don't see where their money is actually going.

"It just takes a tree to come down and we're out of power for, what I think the last storm was a couple of days for some people," said Lisa Warren.

And with PG &E anticipating perhaps even better profits for this year, TURN says it wants concrete action to stop bills from rising further.

"We need a cap on rate increases to be no more than the cost of living adjustment provided by social security," Toney said.

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Could Florida electric bills go up because of a fuel made from manure?

  • Emily L. Mahoney Times staff

A bill advancing through the Florida Legislature that would entice utility companies to invest in “renewable natural gas” could cost Florida residents if signed into law, according to energy watchdog groups.

“Renewable natural gas” is made from a complex process that converts the climate-warming gas emitted by animal manure at large farms, for example, into a substance similar to the natural gas that is drilled from the earth. Proponents say it could help Florida become less reliant on natural gas shipped in from elsewhere, possibly giving utility customers more stable energy prices.

Most electricity in Florida is generated by power plants burning natural gas to produce energy.

But opponents cautioned that the bill in the Legislature, which was written by a utility company, is likely to increase Floridians’ costs because it could make it easier for utility companies to pass production costs of building renewable natural gas infrastructure on to consumers.

And while renewable natural gas is subsidized by the state of California and the federal government to address climate change, some environmentalists argue that the substance does more harm than good.

But let’s back up. How will something that starts out as cow manure actually impact your electric bill? Here are a few things to know:

What is “renewable natural gas?”

It’s a type of fuel that has rapidly gained more attention and government incentives as proponents have viewed it as part of the solution to climate change. A popular source of the fuel is animal manure. It can also be derived from wastewater and landfills.

The process starts with creating conditions with minimal oxygen. The manure will be left to stagnate in a pool. In these conditions, the manure emits methane, a potent greenhouse gas. Then a container called a “digestor” takes that methane, concentrates it and processes it into a substance that can eventually be pumped into pipelines.

Is it actually clean energy?

Not completely. Burning renewable natural gas emits a similar amount of carbon dioxide to traditional natural gas. That means when power plants burn it to make energy, they will produce a similar amount of emissions.

A more complicated question is whether it’s cleaner than using traditional natural gas alone.

Proponents of this energy source argue that since animal manure, wastewater and landfills were already going to emit methane into the air, using renewable natural gas can reduce the amount of fossil natural gas needed, and thus reduce emissions overall.

Environmentalists push back on this. It is not inevitable that large-scale farms have to emit as much methane as they do — if governments better regulated manure storage, they could reduce the emissions. Instead renewable natural gas rewards farms with profit for how much methane they produce.

Because there’s money to be made from the methane, opponents say the adoption of renewable natural gas keeps our society hooked on pipelines, slowing down the construction of new infrastructure to support other energy sources like solar and wind. No matter how widely digestors are adopted, the demand for natural gas is too great in the United States to come close to completely replacing fossil-derived natural gas with this newer substance, experts said.

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“It is our belief that we should displace every molecule of this fossil gas that we can, even if (renewable natural gas) only ends up as one portion of the overall gas mix,” said Dylan Chase, a spokesperson for The Coalition for Renewable Natural Gas, a Sacramento, California, group whose members include utility companies in Florida and elsewhere, plus multiple universities. “Doesn’t it make more sense to use the methane created from waste left behind in Florida, by Floridians, rather than simply ferrying in fossil gas from Texas, Louisiana and elsewhere?”

What are Florida lawmakers proposing to do?

Senate Bill 480, sponsored by Sen. Nick DiCeglie, R-Indian Rocks Beach, would allow the Public Service Commission to establish an “experimental” way for utility companies to pass along the cost of building renewable natural gas infrastructure to their customers. The bill offers limited details on how this would work, other than saying the commission, which regulates utility companies, can decide whether yearly hearings are needed to discuss adding these costs to consumers’ electricity bills.

The bill has received minimal pushback, often getting bipartisan unanimous votes in committee stops along the way. A similar bill has passed one committee in the House.

Where did this idea come from?

Senate Bill 480 was originally written by Chesapeake Utilities, emails provided to the Tampa Bay Times from the Energy and Policy Institute, a utility watchdog group, show. Chesapeake, through a subsidiary called Florida Public Utilities Co., provides natural gas to Floridians, including in Hillsborough and Hernando counties. The emails were first reported by the Miami Herald.

Chesapeake has a renewable natural gas facility under construction in northern Florida to process the methane produced by a dairy farm.

In addition to sending the bill language to DiCeglie’s legislative aide, the emails show a Chesapeake lobbyist making specific, line-by-line notes about the bill’s wording. One of the lobbyist’s requests was to remove a phrase from last year’s version of the proposal that required the Public Service Commission to ensure that any increase in electric bills “will not result in an undue hardship to customers.” It was not in the version filed this year.

“When we look at these bills and the fact they’re coming from corporations … and the fact the wording pushes for more gas, I think that is very concerning,” said Alissa Jean Schafer, a research and communications manager at the Energy and Policy Institute. “It just screams greenwashing.”

DiCeglie did not respond to two voicemails and a text message requesting an interview.

In an email, Brianna Patterson, a spokesperson for Chesapeake, said that the “undue hardship” phrase was deleted because it was not consistent with language used in the rest of that chapter of state law. Still, “there are numerous important consumer protections in this bill, as it includes language that ensures the Public Service Commission has robust oversight over (renewable natural gas) projects in the state,” she said.

Will this cost me money?

The bill sets the stage for utility companies to be able to charge customers to build renewable natural gas facilities, which cost millions. If that happens, Floridians would see additional charges in their electric bills. It’s unclear at this time exactly how much it could cost individual residents.

When asked during a committee hearing how this could impact what customers pay, DiCeglie didn’t answer directly.

“This bill doesn’t speak to rate increases, decreases,” he said. “In many ways, I believe since this is an energy diversification legislation, you could make the argument that it could lower bills in the long run. So … there’s a big question mark there.”

Chase, the spokesperson for the renewable natural gas advocacy group, said that because this fuel can be used anywhere fossil natural gas is used, it is “one of the lowest-cost ways to reduce our dependence on fossil fuels.”

What could this mean?

Because the state of California and the federal government subsidize the development of these facilities around the country, there has been a “gold rush” of companies trying to get into the business, said Danny Cullenward, a senior fellow with the Kleinman Center for Energy Policy at the University of Pennsylvania and the vice chairperson of California’s Independent Emissions Market Advisory Committee.

That allows the companies that build renewable natural gas facilities to reap big profits. Under the California program, for example, gasoline companies operating in that state will pay money to renewable natural gas facilities elsewhere — like Florida — to comply with California carbon standards and essentially offset their negative impact to the climate, Cullenward said.

While the Florida bill would allow customers to pay for building renewable gas facilities, it doesn’t specify what happens if utility companies profit from them.

“It could open up the possibility that the costs would be charged to ratepayers but the revenues from selling renewable natural gas — potentially in the form of these credit attributes traded heavily throughout the U.S. — would go to shareholders. That’s an area of concern I hope policymakers could clarify,” Cullenward said. “That would be a very messed-up situation given how profitable this is now.”

Emily L. Mahoney is the energy reporter. Reach her at [email protected].

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Tax Time Guide 2024: What to know before completing a tax return

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IR-2024-45, Feb. 21, 2024

WASHINGTON — During the busiest time of the tax filing season, the Internal Revenue Service kicked off its 2024 Tax Time Guide series to help remind taxpayers of key items they’ll need to file a 2023 tax return.

As part of its four-part, weekly Tax Time Guide series, the IRS continues to provide new and updated resources to help taxpayers file an accurate tax return. Taxpayers can count on IRS.gov for updated resources and tools along with a special free help page available around the clock. Taxpayers are also encouraged to read Publication 17, Your Federal Income Tax (For Individuals) for additional guidance.

Essentials to filing an accurate tax return

The deadline this tax season for filing Form 1040, U.S. Individual Income Tax Return , or 1040-SR, U.S. Tax Return for Seniors , is April 15, 2024. However, those who live in Maine or Massachusetts will have until April 17, 2024, to file due to official holidays observed in those states.

Taxpayers are advised to wait until they receive all their proper tax documents before filing their tax returns. Filing without all the necessary documents could lead to mistakes and potential delays.

It’s important for taxpayers to carefully review their documents for any inaccuracies or missing information. If any issues are found, taxpayers should contact the payer immediately to request a correction or confirm that the payer has their current mailing or email address on file.

Creating an IRS Online Account can provide taxpayers with secure access to information about their federal tax account, including payment history, tax records and other important information.

Having organized tax records can make the process of preparing a complete and accurate tax return easier and may also help taxpayers identify any overlooked deductions or credits .

Taxpayers who have an Individual Taxpayer Identification Number or ITIN may need to renew it if it has expired and is required for a U.S. federal tax return. If an expiring or expired ITIN is not renewed, the IRS can still accept the tax return, but it may result in processing delays or delays in credits owed.

Changes to credits and deductions for tax year 2023

Standard deduction amount increased. For 2023, the standard deduction amount has been increased for all filers. The amounts are:

  • Single or married filing separately — $13,850.
  • Head of household — $20,800.
  • Married filing jointly or qualifying surviving spouse — $27,700.

Additional child tax credit amount increased. The maximum additional child tax credit amount has increased to $1,600 for each qualifying child.

Child tax credit enhancements. Many changes to the Child tax credit (CTC) that had been implemented by the American Rescue Plan Act of 2021 have expired.

However, the IRS continues to closely monitor legislation being considered by Congress affecting the Child Tax Credit. The IRS reminds taxpayers eligible for the Child Tax Credit that they should not wait to file their 2023 tax return this filing season. If Congress changes the CTC guidelines, the IRS will automatically make adjustments for those who have already filed so no additional action will be needed by those eligible taxpayers.

Under current law, for tax year 2023, the following currently apply:

  • The enhanced credit allowed for qualifying children under age 6 and children under age 18 has expired. For 2023, the initial amount of the CTC is $2,000 for each qualifying child. The credit amount begins to phase out where AGI income exceeds $200,000 ($400,000 in the case of a joint return). The amount of the CTC that can be claimed as a refundable credit is limited as it was in 2020 except that the maximum ACTC amount for each qualifying child increased to $1,500.
  • The increased age allowance for a qualifying child has expired. A child must be under age 17 at the end of 2023 to be a qualifying child.

Changes to the Earned Income Tax Credit (EITC). The enhancements for taxpayers without a qualifying child implemented by the American Rescue Plan Act of 2021 will not apply for tax year 2023. To claim the EITC without a qualifying child in 2023, taxpayers must be at least age 25 but under age 65 at the end of 2023. If a taxpayer is married filing a joint return, one spouse must be at least age 25 but under age 65 at the end of 2023.

Taxpayers may find more information on Child tax credits in the Instructions for Schedule 8812 (Form 1040) .

New Clean Vehicle Credit. The credit for new qualified plug-in electric drive motor vehicles has changed. This credit is now known as the Clean Vehicle Credit. The maximum amount of the credit and some of the requirements to claim the credit have changed. The credit is reported on Form 8936, Qualified Plug-In Electric Drive Motor Vehicle Credit , and on Form 1040, Schedule 3.

More information on these and other credit and deduction changes for tax year 2023 may be found in the Publication 17, Your Federal Income Tax (For Individuals) , taxpayer guide.

1099-K reporting requirements have not changed for tax year 2023

Following feedback from taxpayers, tax professionals and payment processors, and to reduce taxpayer confusion, the IRS recently released Notice 2023-74 announcing a delay of the new $600 reporting threshold for tax year 2023 on Form 1099-K, Payment Card and Third-Party Network Transactions . The previous reporting thresholds will remain in place for 2023.

The IRS has published a fact sheet with further information to assist taxpayers concerning changes to 1099-K reporting requirements for tax year 2023.

Form 1099-K reporting requirements

Taxpayers who take direct payment by credit, debit or gift cards for selling goods or providing services by customers or clients should get a Form 1099-K from their payment processor or payment settlement entity no matter how many payments they got or how much they were for.

If they used a payment app or online marketplace and received over $20,000 from over 200 transactions,

the payment app or online marketplace is required to send a Form 1099-K. However, they can send a Form 1099-K with lower amounts. Whether or not the taxpayer receives a Form 1099-K, they must still report any income on their tax return.

What’s taxable? It’s the profit from these activities that’s taxable income. The Form 1099-K shows the gross or total amount of payments received. Taxpayers can use it and other records to figure out the actual taxes they owe on any profits. Remember that all income, no matter the amount, is taxable unless the tax law says it isn’t – even if taxpayers don’t get a Form 1099-K.

What’s not taxable? Taxpayers shouldn’t receive a Form 1099-K for personal payments, including money received as a gift and for repayment of shared expenses. That money isn’t taxable. To prevent getting an inaccurate Form 1099-K, note those payments as “personal,” if possible.

Good recordkeeping is key. Be sure to keep good records because it helps when it’s time to file a tax return. It’s a good idea to keep business and personal transactions separate to make it easier to figure out what a taxpayer owes.

For details on what to do if a taxpayer gets a Form 1099-K in error or the information on their form is incorrect, visit IRS.gov/1099k  or find frequently asked questions at Form 1099-K FAQs .

Direct File pilot program provides a new option this year for some

The IRS launched the Direct File pilot program during the 2024 tax season. The pilot will give eligible taxpayers an option to prepare and electronically file their 2023 tax returns, for free, directly with the IRS.

The Direct File pilot program will be offered to eligible taxpayers in 12 pilot states who have relatively simple tax returns reporting only certain types of income and claiming limited credits and deductions. The 12 states currently participating in the Direct File pilot program are Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington state and Wyoming. Taxpayers can check their eligibility at directfile.irs.gov .

The Direct File pilot is currently in the internal testing phase and will be more widely available in mid-March. Taxpayers can get the latest news about the pilot at Direct File pilot news and sign up to be notified when Direct File is open to new users.

Finally, for comprehensive information on all these and other changes for tax year 2023, taxpayers and tax professionals are encouraged to read the Publication 17, Your Federal Income Tax (For Individuals) , taxpayer guide, as well as visit other topics of taxpayer interest on IRS.gov.

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  1. Understand Your Utility Bill

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  2. Explaining Your AMLP Electric Bill

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  3. City of Missoula Utilities

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  4. Utility Bill Template

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  5. Understanding Residential Utility Bills

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  6. Utility Billing

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