Consumer News: Gold surged to new record highs this week

One-time $1,776 housing supplements are exempt under current law

By Mark Huffman of ConsumerAffairs

• The Treasury and the IRS confirmed that special housing-related payments made to service members in December 2025 are not taxable and should not be included in income.

• The one-time payments stem from a $2.9 billion congressional appropriation approved last summer to supplement the militarys basic allowance for housing.

• About 1.45 million eligible active-duty and reserve service members received $1,776 payments announced by President Trump as a pre-Christmas Warrior Dividend.

The Department of the Treasury and the Internal Revenue Service have clarified that supplemental housing payments issued to members of the uniformed services in December 2025 are exempt from federal income tax.

The payments were authorized under the One, Big, Beautiful Bill, enacted by Congress in July, which set aside $2.9 billion to boost the basic allowance for housing (BAH) paid to military personnel. In December, President Trump announced that roughly 1.45 million service members would receive a one-time payment ahead of the holidays, calling it a Warrior Dividend.

Eligible recipients received $1,776 payments funded by the congressional appropriation. The payments were made primarily to active-duty members in pay grades O-6 and below, as well as qualifying Reserve Component members of the Army, Air Force, Navy, Marine Corps, and Space Force who were eligible as of Nov. 30, 2025.

Exempted from gross income

Treasury and IRS officials said the payments are excluded from gross income under existing federal tax law. The law specifically exempts qualified military benefits from taxation, a category that includes basic allowance for housing payments and related supplements.

As a result, service members who received the December payments do not need to report the funds as taxable income on their federal tax returns.

Consumer confidence is at its lowest point in more than a decade

By Mark Huffman of ConsumerAffairs

• Consumer confidence tumbled sharply in January, with The Conference Board Consumer Confidence Index falling 9.7 points to 84.5, its lowest level in more than a decade.

• Both current conditions and future expectations weakened, as concerns about jobs, business conditions, and income prospects deepened across all demographics.

• Pessimism outweighed optimism, with inflation, prices, politics, and trade increasingly cited as top economic worries by consumers.

Consumer confidence plunged in January, erasing Decembers brief rebound and signaling renewed anxiety about the U.S. economic outlook.

The Conference Board said its Consumer Confidence Index dropped to 84.5 (1985=100), down from an upwardly revised 94.2 in December. The January reading marks the lowest level since May 2014 and falls below even the depths reached during the COVID-19 pandemic.

Confidence collapsed in January, as consumer concerns about both the present situation and expectations for the future deepened, said Dana M. Peterson, chief economist at The Conference Board. All five components of the Index deteriorated.

Broad-based decline

The decline was broad-based. The Present Situation Index, which reflects consumers views of current business and labor market conditions, fell 9.9 points to 113.7. Assessments of business conditions slipped to barely positive territory, while perceptions of job availability weakened further. The labor market differentialthe share of consumers saying jobs are plentiful minus those saying jobs are hard to getcontinued to deteriorate.

The Expectations Index dropped 9.5 points to 65.1, far below the threshold of 80 that typically signals a recession ahead. Expectations for business conditions, job availability, and household income six months from now all declined, with views on business and labor market conditions sinking deeper into negative territory.

Confidence weakened across every demographic group. On a six-month moving average basis, sentiment fell for all age and income brackets, though consumers under 35and Gen Z in particularremained more optimistic than older generations.

By income, confidence slipped across the board, with households earning less than $15,000 remaining the least optimistic. Confidence also declined among all political affiliations, with Independents recording the sharpest drop.

Gloomy mood

Consumers written comments underscored the gloomy mood. References to inflation and pricesespecially food, groceries, and oil and gasremained elevated. Mentions of tariffs and trade, politics, and labor market concerns increased, while references to health insurance and war also edged higher.

Despite a Federal Reserve rate cut in December, consumers remained uneasy. Fewer respondents expected interest rates to be higher a year from now, but inflation expectations were mixed, with the average ticking up even as the median declined. Expectations for stock prices retreated after a brief rise in December.

Household finances offered a mixed picture. Views of families current financial situations improved slightly after Decembers downward revision, but expectations for future finances turned less positive again. Meanwhile, recession fears persisted: while fewer consumers said a downturn was somewhat likely or not likely, the share saying a recession is very likely or already underway edged higher.

Cautious spending

Caution also showed up in spending plans. Fewer consumers said they planned to buy big-ticket items over the next six months, while maybe and no responses increased.

Auto buying plans were mixedexpectations for new car purchases weakened, but interest in used cars rose. Homebuying intentions continued to fall, and plans to purchase appliances, furniture, and TVs declined. Smartphones remained the lone bright spot in electronics.

Planned spending on services also softened, though not uniformly. Restaurants, bars, and takeout remained the top spending category and continued to rise.

Consumers also reported stronger intentions to spend on travel-related services such as hotels, airfare, and motor vehicle servicesan unexpected development given the sharp decline in reported vacation plans, particularly for domestic travel.

Passengers should not assume the airline will automatically refund their fare

By Mark Huffman of ConsumerAffairs

• Millions of airline passengers were stranded over the weekend as a powerful winter storm snarled air travel across large swaths of the country.

• Flight cancellations and long delays raised fresh questions about what airlines owe travelers when weather disrupts schedules.

• Consumer advocates say many passengers dont realize they still have important rights, even when storms are to blame.

A major winter storm that swept across the U.S. this weekend forced airlines to cancel thousands of flights and delay many more, leaving travelers stuck in airports, sleeping in terminals, or scrambling to rebook plans. While airlines often point to severe weather as an unavoidable act of God, passenger advocates say travelers still have clear rights and options when flights are canceled or significantly delayed.

Under U.S. Department of Transportation rules, passengers are entitled to a full refund if their flight is canceled and they choose not to travel, even if the cancellation is caused by weather. That refund must be issued to the original form of payment and cannot be limited to airline vouchers or credits, unless the passenger agrees to accept one.

Its not just weather or lost luggage consumers are worried about; their trust in the travel system is eroding, said Matt Layton, LegalShields senior vice president of consumer analytics. New confusion regarding passenger compensation exposed how fragile the travel ecosystem can be. This shift in confidence is driving real behavior changes.

What usually happens

For travelers who still want to fly, airlines generally rebook passengers on the next available flight at no additional cost. However, rebooking policies vary widely, especially during widespread disruptions when seats are scarce. Some airlines may place passengers on partner carriers, while others restrict rebooking to their own flights.

What airlines typically do not have to provide during weather-related disruptions is compensation for hotel stays, meals, or ground transportation. Unlike the European Union, which mandates cash compensation for many delays, U.S. airlines are not required to pay passengers when weather is the cause. A recent LegalShield survey found thats a source of confusion.

Weve spent our hard-earned money for the airline to get us to our family and friends, and many people believe that if that doesnt happen, the airline will automatically pay us back, said Wayne Hassay, a LegalShield provider lawyer with Maguire Schneider Hassay, LLP in Ohio. That is simply not true.

While federal guidelines address issues such as overbooking, extended tarmac delays, and some controllable events, Hassay said most additional compensation is governed by individual airline policies even if passengers ultimately reach their destination.

Costly confusion

The consequences of that confusion can be costly. LegalShields research found that 63% of travelers lost money due to travel disruptions, and one in four lost more than $500.

More than half said they wasted significant time dealing with delays, customer service problems, appeals, and claims. At the same time, 25% admitted they are unfamiliar with their travel rights, and 55% said they lack confidence in asserting those rights when something goes wrong.

Consumer experts recommend that travelers affected by the storm keep all documentation, including boarding passes, delay notifications, and receipts for unexpected expenses. While airlines may not be obligated to reimburse those costs, some will consider goodwill refunds if passengers submit a complaint.

Credit card travel protections can also play a role. Many premium credit cards include trip delay or cancellation insurance that covers meals, hotels, and other expenses when severe weather disrupts travel.

With winter far from over, advocates say the key takeaway is preparation and persistence. Know your rights, ask questions at the airport, and dont assume the airlines first answer is the final one,experts advise. Even in bad weather, passengers are not powerless.

Why returned doesnt mean broken and can mean half price

• Major retailers quietly resell customer returns at steep discounts Many returned items are barely used, but stores would rather discount them fast than put them back at full price.

• The key is shopping the right channels, not regular shelves Clearance endcaps, open-box programs, resale sections, and return liquidators are where the real deals land.

• Savings of 30% to 70% are common if you know what to look for Condition labels, packaging damage, and manager markdowns often mean deep discounts on perfectly functional products.

Customer returns are one of the biggest sources of hidden retail discounts. Most people assume returns are broken or heavily used, but the reality is a huge percentage of returned items are:

• Opened but never used
• Bought in the wrong size or color
• Returned after holidays
• Perfectly fine but in damaged packaging

This is a major win for shoppers as most retailers dont like putting these items back on their regular shelves. So, they get thrown into clearance sections, open-box areas, and liquidation channels where prices often drop 30% to 70%, sometimes more.

But you have to know where to go to find them and save money. Enter this article. Heres where the good returns actually go and the type of savings you can realistically expect.

Amazon Resale (online return central)

Amazon Resale is Amazons official online outlet for returned and open-box items.

The good news is its not a bunch of sketchy third-party sellers trying to unload junkits just Amazon reselling items customers sent back.

Some of the items youll regularly find include:

• Air fryers
• Headphones
• Laptops
• TVs
• Power tools
• Toys

Perhaps the best part of using Amazon Resale is they tell you upfront about the condition of the item and everything still comes with their 30-day return policy.

Specifically, they break it down into these condition categories:

• UsedLike New Product is in perfect working condition with no cosmetic flaws. Comes with all original accessories but it could be missing the original packaging.
• UsedVery Good This means lightly used with minor signs of wear. Often repackaged but is still in great working condition. Ive found that this is often the sweet spot as you get significant savings but the item is still basically new.
• UsedGood Item will show moderate wear from consistent use, but guaranteed to still be functional. A bit more of a risk because you dont know exactly how hard the previous owner used it.
• UsedAcceptable These will have clear signs of use like scratches, dents, and even worn corners. Check the listing carefully as it could be missing accessories that youll have to replace yourself, often cutting into the original savings it might provide.

Realistic Savings:

Its fairly common to find 4050% off savings on items marked Used Very Good.

For example, Ive seen a $129 air fryer sell for only $69. Ive also bought a $249 pair of noise-canceling headphones for just $129 simply because the box was badly damaged and had to be replaced.

Pro tip: Be aware that prices change daily as inventory sells through. So be sure to check back often on products youre interested in buying. Be ready to buy when the price meets your budget.

Target clearance (where returns hide in plain sight)

When someone buys an item from Target.com and then returns it to a Target store, it often gets added to a clearance endcap (if it isnt liquidated).

From there, its usually sold at a big discount, often 50-70% off the original price.

In each department, look for these clearance endcaps at the end of aisles. They tend to exist the most in electronics, toys, and home dcor/appliances.

Specifically, when hunting for these endcaps, look for the following:

• Yellow clearance stickers.
• Open-box items that you can tell have been opened and they sometimes have damaged packaging.
• Look for a handwritten markdown tag. These are often done by a Target manager and its usually a very low price designed to get rid of a returned product quickly.

Realistic Savings:

Markdowns usually start at 30% off and can hit 5070% off if it doesnt sell right away.

For example, that $129 Keurig someone returned could land on clearance for just $59, or a $40 throw blanket can get marked down to $18 after a return.

Pro tip: Dont be afraid to negotiate the price on some of these open-box returns at Target. Managers know theyll have a hard time selling some of these products, so theyll often be happy to give you an extra 10% discount to get rid of it.

Amazon return/bin stores (treasure hunt style)

Amazon return stores are personally my favorite way to buy returns at a huge discount.

These return stores buy truckloads of Amazon return pallets every week. Theyll then throw everything into bins and sell items at a flat price that drops each day of the week.

The return store in my town isclosed on Sunday and Monday to restock the bins. Then when they open on Tuesday, everything is $6, then it all drops to $4 on Wednesday, $2 on Thursday, $1 on Friday, then everything is just $0.25on Saturday.

The shipments you can expect include everything from food and paper goods to small appliances, office supplies, books, and even small furniture.

Some of the returns have no packaging, some of it has beat-up packaging, and some of it looks absolutely brand-new.

Realistic Savings:

Ive found $10 iPhone chargers for only $0.25. Ive also found a $50 filing cabinet for just $6.

Its not uncommon to pay just $4 for a $40 LED light kit or only $2 for a $25 phone accessory.

Keep in mind that all sales will be final at these return stores. But usually the price is so low that its worth the risk.

Pro tip: Do a quick Google search for YOUR TOWN Amazon return store and youll quickly find the returnstores in your neck of the woods.

Best Buy open box (premium return deals)

When someone returns an item to Best Buy, it doesnt go straight back on the shelf as new.

Instead, Geek Squad or store staff inspect it, test it, and then resell it as Open-Box at a discount.

Youre often buying something that was used for a day or never plugged in at all.

The Best Buy Open-Box condition grades:

• Excellent (sometimes Certified) Basically like new. Includes all original parts and usually the box. Minimal signs of use, if any.
• Good Items typically work perfectly fine but may have a minor cosmetic scuff or two. Could also be missing non-essential accessories (like a manual or HDMI cable).
• Fair Often has noticeable wear and is sometimesrepackaged ifit was returned without the original box/packaging. It hasbeen tested and is functional.

Realistic Savings:

Most open-box items run 2545% off, depending on the condition, but TVs and other big-ticket items can be even more.

A $1,000 laptop may sell for $699 open box, and a $799 TV could drop to $499 just because it left the store once.