Inflation relief checks by state news summary | 25 October 2022
Inflation relief latest updates
Headlines: 25 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:
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ERISA covers two types of retirement plans: defined benefit and defined contribution. We explain what they are and how to know which one is yours.
The SSA announced a record cost-of-living increase for 2023, but the average beneficiary won’t be able to deduct the whole amount when filing taxes.
During the pandemic trillions of dollars was spent by the federal government to ensure that Americans were able to cover the cost of essentials and to keep the economy from slowing to a complete standstill.
More than 9 million individuals and families have been contacted to inform them of key tax benefits and the IRS has just issued letters to inform them of the vital relief payments that they are missing out on.
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 Republican states had argued that the President had overstepped his authority by unilaterally declaring the measure without consent form Congress.
It's been over two weeks since payments of California’s inflation relief checks started to be sent out to residents. Payments are going out as either direct deposit or debit cards, both formats have their own payment schedules.
Social security: the great divide
As Republican Senators like Florida's Rick Scott and Wisconsin's Ron Johnson put Social Security high up the GOP agenda, the Democrats are wasting no time in highlighting the dangers of the potential cuts that could hurt everyday Americans if they take control of Congress.
Inflation biting hard for American retirements
A new survey by Bankrate found that 55% of respondents feel their retirement savings are behind where they need to be, up from 52% last year. Among those putting aside the same or less than they did in 2021, more than half said rising prices are holding them back from saving more.
Boomers — the generation closest to retirement — were most likely to say they’re behind, at 71%, compared to just 30% of Gen Z.
Taxes and inflation for midterm GOP focus
The majority of Republican congressional ads are talking about the economy and inflation -- which is most voters top concern. Democratic ads are talking about abortion.
The Post looks at the warring priorities filling the airwaves for the two parties.
Inflation assessed: Coca-Cola CEO
James Quincy, the head honcho at the behemoth that makes some fizzy pop among other things, has been speaking on Squawk on the Street about the current situation and how long we may be watching the market developments.
The importance of healthcare workers has been demonstrated throughout the pandemic, but some are surprised to learn how low nurses’ salaries can be.
"We can fire the Democrats who gave us inflation"
Mike Pompeo, who served as secretary of state during Donald Trump's term as US president, has urged Americans to vote Republican in next month's midterm elections, taking to Twitter to point the blame at the Democrat-controlled Congress for the high levels of inflation the country is experiencing. "Two weeks from today, we can fire the Democrats who gave us inflation, a crime wave, and a border crisis," Pompeo tweeted on Tuesday.
US inflation lower than many large economies around the world
Joe Biden has been criticised by Republicans for the extra stimulus checks and that they contributed to the inflation. However, as the data in the video shows nations like Germany and trading blocs like the EU actually have higher inflation despite having no stimulus payments.
Changes are coming in 2023 for your future retirement investments. The annual contribution limits always change with inflation but due to the highest inflation in nealy 40 years the limits are jumping by a sizeable amount for both 401(k) and Roth IRAs.
For those saving in a traditional or Roth IRA the 2023 limit on contributions rises to $6,500 next year, a $500 increase. If you are contributing to either plan and you are over 50 years old then this rises by an extra $1,000 to $7,500 in 2023. However, if your taxable income is lower than this then that is your limit.
To claim various forms of federal financial aid the recipient must first submit documents confirming their earnings history for the previous year. In most instances that means providing your most recent tax return filing, but not everyone is required to file taxes.
Initiatives like the Free Application for Federal Student Aid (FAFSA) require the recipients to provide their parents’ federal income tax, so officials can judge the claimant’s household income. If they and their parents do not file taxes, they can prove this by obtaining a Verification of Non-filing Letter from the IRS.
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 having 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.
The average mortgage rates for Monday, 24 October 2022 are as follows:
30-year fixed mortgage: 7.218%
20-year fixed mortgage: 6.915%
15-year fixed mortgage: 6.211%
10-year fixed mortgage: 5.950%
5-year adjustable rate mortgage: 6.373%
The high cost of living has prompted states across the nation to approve sending tax refunds or stimulus checks as relief from high prices. These checks, some of which are going out in Republican-led states, come as many GOP leaders have tried to blame high inflation on stimulus checks Democrats passed in Congress in March 2021 through the American Rescue Plan.
The two main retirement accounts available to workers in the US are 401(k)s and Roth IRAs. The two differ in when a account holder is taxed on the funds they enter or withdraw.
A 401(k) requires the worker to pay tax on benefits as they are withdrawn during retirement, while, a Roth IRA, taxes benefits as they enter the account.
So, to the question, are 401(k)s taxed when you retire? Yes they are.
There are various private retirement accounts available to workers and one of the main differences is how the funds allocated to them are taxed.
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 MSNBC's Mehdi Hasan explains.
Announced on Friday, the IRS will increase the contribution limit to 401(k)s by $2,000 to $22,500 for 2023.
Workers who are saving for retirement with 401(k), 403(b), most 457 plans, and the Thrift Savings Plan can contribute up to $22,500 to those plans in 2023.
For those saving in a traditional or Roth IRA the 2023 limit on contributions rises to $$6,500 next year, a $500 increase.
The “catch-up” contribution limit for employees age 50 or older who are involved in these plans also increases from $6,500 to $7,500 for 2023 for a total limit of $30,000.
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.
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.
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.