Family Dollar and Dollar Tree Are Closing 1,000 Stores

There are going to be fewer places to get your dollar on in the U.S., as national retail chain Family Dollar has announced they will close approximately 1,000 stores over the next few years. That's huge for a company that was once growing.

CNN reports that Family Dollar's parent company, Dollar Tree, hopes the closures will improve the company's profitability. That said, this will give some Americans fewer places to shop, as Family Dollar stores are often in areas where there aren't many supermarkets, big box stores and general stores.

According to the report, around 600 Family Dollar stores will close in 2024 and an added 370 will close in the coming years. So far, the company hasn't provided a list of locations where the stores will close. After the news broke on Wednesday (March 13), shares of Dollar Tree fell more than 13% to their lowest level of 2024 in early trading.

According to CNN, a number of factors have caused Family Dollar stores to be less profitable, stating that, "years of mismanagement and poor conditions in stores have hurt Family Dollar's brand." They add that Family Dollar was recently fined more than $40 million for a rat infestation at a warehouse. that infestation actually resulted in hundreds of stores having to to temporarily close. They also add that "decades-high inflation has hit shoppers hard, and a general consumer pullback has impacted Family Dollar customers and the chain's profits, exacerbating its battle with discount competitors such as Dollar General, Walmart and others." Meanwhile, Family Dollar's rival, Dollar General, has been opening stores. They have been opening around 1,000 stores a year and, according to CNN, are the fastest-growing retailer in the United States. The company currently has around 18,000 stores. So, there's more competition in the dollar market, and that's contributing to the issues, too. Both companies are going up against each other for the same low-income shoppers.

Tax season is truly in full swing. Tax deductions and credits are there to help people, so why not take the help? It might seem like a headache having to go through a long list of possible deductions, but it's really not so bad. I've gathered some information directly from the IRS to help you save this tax season. So, let's get into the dollars and cents.

Before we get into the savings, let's look at how credits and deductions work. According to the IRS, "You can claim credits and deductions when you file your tax return to lower your tax. Make sure you get all the credits and deductions you qualify for."

The definition of a credit, according to the IRS, is "an amount you subtract from the tax you owe. This can lower your tax payment or increase your refund." They note that some credits are refundable. That means "they can give you money back even if you don't owe any tax." If you want to claim credits, you must answer questions in your tax filing software. Or, if you're doing taxes the old-fashioned way, you'll have to fill out a form and attach it.

The definition of a deduction, according to the IRS, is "an amount you subtract from your income when you file so you don’t pay tax on it. By lowering your income, deductions lower your tax." In order to do this, you have to have documents to show expenses or losses you want to deduct. You can do this via tax software or, if you're filing a paper return, your deductions go on Form 1040 and you may need to attach extra forms.

Now, the fun part. Read on for tax deductions and credits that could save you cash this season. Here's hoping that Uncle Sam treats you well.

The standard deduction for 2023 is $13,850 for single or married filing separately; $27,700 for married couples filing jointly or qualifying surviving spouse; and $20,800 for head of household. "If you're married filing separately, you can't take the standard deduction if your spouse itemizes. You must both choose the same method," the IRS says.

To find the standard deduction if you're over 65 or blind, go here. To find the standard deduction if you're a dependent on someone else's tax return, go here.

According to the IRS, you can deduct these expenses whether you take the standard deduction or itemize:

Alimony payments
Business use of your car
Business use of your home
Money you put in an IRA
Money you put in health savings accounts
Penalties on early withdrawals from savings
Student loan interest
Teacher expenses
For some military, government, self-employed and people with disabilities: work-related education expenses
For military servicemembers: moving expenses

According to the IRS, you can deduct these expenses if you itemize:

Bad debts
Canceled debt on home
Capital losses
Donations to charity
Gains from sale of your home
Gambling losses
Home mortgage interest
Income, sales, real estate and personal property taxes
Losses from disasters and theft
Medical and dental expenses over 7.5% of your adjusted gross income
Miscellaneous itemized deductions
Opportunity zone investment

Tax season can be a confusing time. There are lots of bits and piece that you have to put together. That said, the IRS has a very helpful page with frequently asked questions. Find the list of questions and answers here. As always, it's also a good idea to get a professional to help with any questions.