Inflation relief checks by state news summary | 31 October 2022

Double check to make sure that you know the tax benefits associated with financial aid

Certain taxpayers who either receive or can declare that their dependent has received federal financial aid, may be eligible for tax benefits. For those with a modified adjusted gross income (MAGI) is less than $80,000 ($160,000 if filing a joint return), the interest paid on student loans can be written off. 

Unemployment dropped even lower in 49 states in September

The Bureau of Labor Statistics has reported that all states but Mississippi saw sizeable decreases in their unemployment population. Mississippi also saw an increase, but at 1.2 percent, it was the lowest in the country. 

Which states have added the most jobs?

When looking at the number of jobs added, 

Over the year ended September 2022, Texas (+721,800), California (+712,600), and Florida (+463,300) saw the largest increases. Meanwhile, as a percent of jobs gained, Texas (+5.6 percent), Louisiana (+5.2 percent), and Florida (+5.1 percent) saw the largest jumps. 

Free File tool closes in November

The IRS has confirmed that the Free File tool will only remain open until 17 November 2022, meaning that anyone yet to receive their payment has less than a month to file a tax return and trigger the payment.

Anyone with an income of less than $73,000 is able to utilise the Free File resource to submit their tax information and find out whether they are eligible for additional support. Full details of what you may be entitled to will have been outlined in the letter from the IRS.

The quickest and easiest way to get your outstanding entitlement is to submit your tax return electronically and to opt for a direct deposit payment of rebates and credits.

New law promisies salary transparency for NYC workers

From tomorrow, the 4 million private-sector workers in New York City, will benefit from a new law which will provide more transparency in the labor market and help to close racial and gender wage gaps.

The New York City Human Rights Law (NYCHRL) is is a resource to help workers and employers understand their rights and obligations.

From 1 November, all employers that have four or more employees or one or more domestic workers are covered by the NYCHRL, including the new provision of the law. The four employees do not need to work in the same location, and they do not need to all work in New York City. As long as one of the employees works in New York City, the workplace is covered.

Employers must state the minimum and maximum salary they in good faith believe at the time of the posting they are willing to pay for an advertised job, promotion, or transfer opportunity. "Good faith” means the salary range the employer honestly believes at the time they are listing the job advertisement that they are willing to pay the successful applicant(s). Employers must include both a minimum and a maximum salary; the range cannot be open ended. For example, “$15 per hour and up” or “maximum $50,000 per year” would not be consistent with the new requirements.

If an employer has no flexibility in the salary they are offering, the minimum and maximum salary may be identical, for example, “$20 per hour.” Advertisements that cover multiple jobs, promotions, or transfer opportunities can include salary ranges that are specific to each opportunity.

Any advertisement for a job, promotion, or transfer opportunity that would be performed in New York City is covered by the new law.

For further information, consult the NYCHRL Transparency factsheet

Food prices rise on uncertainty of Russia grain deal

Russia's halting of its participation in the United Nations-brokered Black Sea Grain Initiative is having 'immediate, harmful impacts' on global food security and food prices have risen on uncertainty around the deal, US State Department spokesperson Ned price said on Monday. The price of wheat rose 5% and feed and fertilizer prices also rose.

Moscow announced on Saturday that it was suspending its role in the UN-backed initiative that escorts cargo ships through the Black Sea, but ships carrying grain continued to sail from Ukrainian ports on Monday.

Biden will turn to Congress if oil companies don't lower costs

US President Joe Biden will call on oil and gas companies to invest some of their record profits in lowering costs for American families, a White House official said.

"And if they don’t, he will call on Congress to consider requiring oil companies to pay tax penalties and face other restrictions," the official said on condition of anonymity.

Signs of economic optimism

There has been a lot of talk of gloom and doom for the US economy recently and while the Dow Jone is down slighty on Monday the markets look set to break a two-month losing streak. GDP also rose for the first time in the third quarter after posting negative growth in the previous two.

Other optimism in the air comes from Goldman Sachs global investment research sentiment indicator which has gone into the positive for the first time in 34 weeks.

How has inflation impacted consumer spending?

Given the intense pressure of inflation in the market, levels of consumer spending remain high, increasing by 0.4 percent from August to September. 

However, in September, the personal savings rate fell to 3.1 percent from 3.5 percent, one of the lowest levels recorded since the 2008 Financial Crisis. This is concerning because if the economy does begin to experience a recession and unemployment rises, the rate of savings could create severe financial pressure on households who have seen inflation cut into their purchasing power. 

Georgia has begun to send direct payments to those in need

About a month ago, Georgia began sending direct payments to residents who are enrolled in a welfare program like SNAP and WIC. The state will send a one-time $350 payment to hundreds of thousands of households around the state to help them keep up with inflation. 

The funds will be delivered as a virtual gift card. However, some people began reporting issues using the cards. The state responded saying that cards may be declined by retailers who do not accept giftcards or if the payment is not processed as a debit transaction, which requires a pin. 

The first to see their cards in the mail are those who have email as their preferred mode of communication with the state. 

Time running out for Virginians to file tax return to receive inflation relief tax rebate

The State of Virginia pass a one-time tax rebate of $250 for individual taxpayers and $500 for married couples that file jointly. In order to qualify residents will have to file tax return in by 1 November 2022 and have a tax liability.

NEW YORK

Salary transparency law in NYC: what it is and when it will take effect

Starting November 1, the pay transparency law goes into effect in New York City. Here are the details of the new law and what it consists of.

Last day to apply for Public Service Loan Forgiveness limited-time waiver

More than a decade the Public Service Loan Forgiveness program was established to help public servants the Biden administration took steps to remove barriers that could make debt forgiveness a reality. However, the deadline to submit an application has arrived. Those who wish to apply must use the PSLF Help Toolon or before 31 October 2022.

US NEWS

IRS sends letters to Americans still eligible for a stimulus payment: will it arrive in October?

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. 

FINANCIAL ASISTANCE

Who is eligible to request unclaimed stimulus check payments and when is the deadline?

The US government approved the sending of three stimulus checks to deal with the Covid-19 pandemic. Although the Internal Revenue Service (IRS) announced that it had finished sending the third payment, also known as Economic Impact Payment (EIP), some people can still claim the $1,400.

SOCIAL SECURITY

The key date of the SSA notice with the COLA increase: $1,752 average in 2023

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.

Mortgage rates hit a 20 year high putting the brakes on the housing market

Those looking to buy a home and have been watching the rise of mortgage rates with temerity. The average 30-year home loan is now just above 7%, a level not seen since April 2002 and more than double where its was this time last year.

The increase has been pushed by Federal Reserve rate hikes, which began March last year, to wrangle in four-decade high inflation. The central bankers are due to meet this week to chart out the course for the future with expectations of a fourth 75 basis points increase.

The knock-on effect of the higher mortgage rates has been a slowing of the housing market with home sales and new listings hitting new lows. While some sellers are dropping their asking price others are pulling their house off the market until conditions improve.

Will Fed splash cold water on newfound economic optimism?

The Federal Reserve is set to meet on Tuesday and Wednesday this week to decide on another rate hike and discuss policy going forward. There has been talk that the policymakers may be about to pivot from their aggressive interest rate increases, the last three were 75 basis points.

This along with other positive economic news, GDP grew in the third quarter, record oil profits and GM beating expectations, could see the Dow Jones have its best month since January 1976. However, Former Fed Vice Chair Roger Ferguson cautions that there is a disconnect and that the central bank will continue to be hawkish, committed to reining in inflation that while slowing is still far above the 2% Target.

GM beats expectations calms fears of a global recession

Investors have been concerned about an economic slowdown in the US and its impact on consumer spending on goods such as new vehicles. However, General Motors third quarters earnings beat expectations alleviating fears of a global recession.

"We haven’t seen any direct impact on our products. Pricing remains strong. Demand remains strong," Chief Financial Officer Paul Jacobson said about any potential economic headwinds.

Big oil rakes in massive profits

Bloomberg analysts point to the boom-and-bust nature of primary goods, like oil, which can experience high levels of price volatility. When the pandemic began, oil prices fell quickly, and now they are reaching record highs, driving up prices for other goods in the market. 

Traditionally, when oil profits are high, capital expenditure to increase production typically increases. But this time many tracking the actions of Big Oil are not seeing that happen. 

Without these increased investments in capital expenditure to increase production, consumers could face high prices for some time. This year, Exxon Mobile is expected to spend around $24 billion on capital expenditure, which is equal to their earnings just in the third quarter of this year. Many looking at this picture believe that this just will not be enough to bring prices down. 

Dow on track for best October ever

The Dow Jones Industrial Average closed up 2.6% on Friday despite poor earnings report from Amazon. The positive end to the week was the fourth straight for the 30-stock index and is on track to have its best month since January 1976 and its best October ever after surging over 14% this month.

TAX FILING

Standard Deduction for seniors over 65 in 2023: how much will it be with IRS increase?

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.

Get a jump on your tax planning for 2023, know the new standard deduction amounts

While inflation has been hurting households incomes it had the knock-on effect of raising significantly the standard deductions that Americans will be able to take on their 2023 tax bill. Likewise the IRS adjusted the thresholds for the seven income tax brackets to avoid "bracket creep" which could lower the tax burden for those whose salaries haven't kept pace with inflation.

US economy grew more than expected in the third quarter

Economists had been expecting the US economy to grow by around 2.3% in the third quarter, so the report from the Bureau of Economic Analysis of the United States Department of Commerce showing a 2.6% bump in GDP was welcome news.

It helped Wall Street finish the week on a positive note, with the Dow Jones racking up its four straight week of gains, the most since a five week run in November 2021.

Hello, and welcome to AS USA

Hello, and welcome to AS USA's blog on inflation relief payments. We’ll keep you up to date on measures that have been approved in states around the US to help residents cope with the high price of food and gas.

While some states initiatives have already been sent out, others are just making their way to residents.