Inflation relief checks by state news summary | 24 October 2022
Headlines: 24 October 2022
- Does my state offer inflation relief checks?
- Court temporarily blocks Biden's student loan forgiveness plan
- Key dates for the Middle Class Tax Refund in California
- COLA increase could provide $1,752 boost to Social Security recipients
- IRS publishes new tax brackets and standard deductionfor seniors for 2023
- A record number of taxpayers requested an extension this year
- California to offer gasoline relief as residents pay $2.00 more per gallon compared to other states
- States move to count the amount forgiven in student loans as taxable income
Related news:
Households across the nation reeling from rising prices that receive Social Security benefits will get a big boost to their finances come the new year. The Social Security Administration announced its 2023 COLA and it was a whopper. At 8.7 percent, it is the fourth largest in the history of the annual cost-of-living adjustments and the biggest since 1981.
The average recipient of retired worker benefits will see a monthly payment of $1,827 an increase of $146. That will translate into an extra $1,752 over the course of 2023. The Social Security Administration will begin sending out notices in the mail to beneficiaries of exactly what their monthly payments will be next year.
The Social Security Administration announced the 2023 COLA on 13 October and the boost was a doozy. Great news for those that are finding their monthly checks not going as far in the face of rising prices. Bad news for those that will break the income thresholds where a portion of their benefits are liable to taxation.
Before 1984, Social Security benefits were not taxed. However, to keep the Trust Fund that supports the program solvent, bipartisan legislation was passed totax a portion of payments to seniors citizens, surviving spouses, and the disabled if they had income above certain thresholds.
Inflation has been hitting Americans finances hard. To help ease the higher costs to households, various states have issued tax refunds or stimulus checks.
The IRS has relased new tax brackets and adjustments to deductions that will go into effect in 2023.
Social Security recipients will be receiving a notice from the Social Security Administration during the month of December to inform them of the cost-of-living adjustment (COLA) increase to their benefits in 2023. The average retired worker will see a monthly benefits payment of $1,827 an increase of $146. That will translate into an extra $1,752 over the course of next year.
Unfortunately, the IRS doesn’t use the same inflation figures to calculate their adjustment to income thresholds, standard deductions and credit amounts. Most taxpayers over 65 will only be able to take an additional $1,500 through the standard deduction when they file 2023 tax returns in 2024. Not to mention those increased benefits could get taxed at a higher rate.
Read more in our full coverage.
What are the new 401k retirement contribution limits?
One of the most popular retirement plans in the United States is the 401(k) plan, which can offer upfront tax benefits or tax-free distributions when you retire. Each year there are limits to the amount of contribution an individual can make, and it has risen considerably as a result of the sustained high inflation.
Named after a section of the US Internal Revenue Code, a 401(k) is a retirement savings and investing plan offered by many American employers. Contributions are automatically taken out of a worker’s paycheck and invested in funds selected by the employee from a list given to them by the plan administrator.
Check out out guide to the 2023 IRS Retirement Contribution Limits
There are various private retirement accounts available to workers and one of the main differences is how the funds allocated to them are taxed.
As inflation in the United States has soared over the past 12 months, the Federal Reserve has chosen to hike interest rates to stop people and businesses spending.
These interest rates are havign a knock-on effect for homeowners as mortgage rates are directly affected by changing interest rates. With another rate rise set for November expect further increases in your mortgage payments.
Medhi Hasan weighs in with his thoughts on US inflation
The US is in the grips of a serious inflationary problem that has quickly become the battleground for the upcoming midterm elections. From the recession of the pandemic, the boom has quickly turned to bust as sky-high prices are pushing the Fed towards causing a recession.
While wages stagnate, companies have been making record profits as Mehdi Hasan explains.
Inextricably linked to economic policy is politics and there is due to be plenty coming up. Midterm elections are less than three weeks away where you will be able to decide your representatives at Congress.
We have our own livefeed to follow events in what it set to be a key litmus test for president biden's actions so far.
It has been two weeks since payments of California’s inflation relief checks were beginning to be sent out to residents. Governor Gavin Newsom is looking to use some of the state’s budget surplus to support Californians and the battle against inflation, which the US government seems to be turning around.
Through the California Franchise Tax Board (CFTB), the state will be issuing the direct inflation relief payments through October to mid-January. The tax rebate plan will provide up to $1,050 to millions of California families to help with inflation and high gas prices.
Should I have received my California inflation relief check?
Back in July California Gov. Gavin Newsom unveiled his $12 billion relief effort, known as the Middle Class Tax Refund. Newsom said the program is designed to "get dollars back into the pockets of millions of Californians grappling with global inflation and rising prices."
The distribution process began earlier this month and a recent report from the California Franchise Tax Board (CFTB) showed that more than 3.5 million resident have already received their inflation relief check.
However the are still millions more payments to be made and the payment schedule with continue into January 2023. For more information of when to expect your payment, check out the inflation relief check key dates.
A United States appeals court has imposed a temporary block on the student loan forgiveness plan introduced by President Biden. The Eighth Circuit Court of Appeals issued a stay on the program while an appeal from six Republican-led states is considered.
Biden had promised to cancel billions of dollars in federal student loan debt but some states had argued that the President had overstepped his authority by unilaterally declaring the measure without consent form Congress.
Why has the student loan forgiveness plan been blocked?
The Democrats had hoped to build some momentum ahead of the midterms with President Biden's sweeping student loan forgiveness plan, but the proposals have been temporarily blocked by a federal appeals court. Just hours after Biden announced that more than 22 million borrowers had signed up for the relief, a court ruled in favour of six Republican-led states looking to block the measure.
Their intervention is unlikely to be anything more than a delay in the process, but it will be a concern for Biden if the matter drags on.
Welcome to our inflation relief check live check
Good morning and welcome to AS USA! We will be bringing you the latest financial news and information from the United States on the one-off payments, student loan forgiveness and Social Security benefits.