Relief checks 2023 | Summary news 16 April
Headlines: Sunday 16 April, 2023
-Treasury Secretary Janet Yellen sees paths to "soft landing" for US economy.
- Mortgage rates drop for fifth consecutive week. 30-yr fixed-rate average at 6.27%
- Initial unemployment claims increased by 11,000 to 239,000 last week
- Inflation rose 0.1 percent in March; housing was the primary driver of the increase.
- Federal Reservecould increase rates again as soon as early May
- Tax deadline extended in California after the state was battered by severe storms this winter
- Home prices begin to fall in some cities in California
- Over 3 million layoffs in the US this year, which sectors have seen the highest job cuts?
- Social Security and Medicare Trustees warn of respective funds depleted by 2031 and 2033
- Various states will continue to issue inflation relief checks and generous tax refunds in April
- Social Security April payment schedule: when can you expect your payment?
Back in March, the Social Security Board of Trustees released their annual report on the financial status of the Social Security Trust Funds, which includes the
According to the report, cash for the Social Security program will run out in 2031, in just eight-years time. If more funds are not directed to the support then 66 million recipients will have their benefits cut by a quarter.
This prediction is a year closer than the previous estimate of 2032 due to slower-than-expected economic growth.
“Social Security and Medicare are two bedrock programs that older Americans rely upon for their retirement security,” said trustee lead and Treasury Secretary Janet Yellen. “The Biden-Harris Administration is committed to ensuring the long-term viability of these critical programs so that retirees can receive the hard-earned benefits they’re owed.”
For US taxpayers who declared certain relief checks as income in their tax return, an amendment may need to be submitted to the IRS to receive the full refund they're entitled to.
If you need more time to file your federal tax return, you can request an extension to avoid incurring penalty charges.
Busting tax-filing myths
The IRS has put together an info sheet debunking a few myths that surround taxes in the US - such as the claim that you don't have to report income if you haven't received a Form 1099-K.
As the April 18 tax deadline approaches, AS USA takes a look at two common mistakes that US taxpayers really want to avoid when filing their federal returns.
The Child Tax Credit has gone through several changes since its inception in 1997. Back then eligible taxpayers could only claim $400 per eligible child. The credit was seen as a way to help fight childhood poverty, but the restrictions for claiming the credit saw those it was intended for rarely have access to it.
That radically changed in 2021 when the American Rescue Plan (ARP) supercharged the credit, more than doubling the refundable amount for certain children. In fact the whole credit was fully refundable, which meant that even those with no earned income were eligible.
Unfortunately for many families those changes expired when Congress failed to pass an extension of the one-year experiment that is credited having slashed poverty for its brief tenure.
The Internal Revenue Service is expecting US taxpayers to submit their 2022 income tax returns and pay any taxes due by Tuesday 18 April. Those that can’t make the filing date can apply for a six-month extension, the agency has given certain taxpayers affected by natural disasters an automatic extension.
However, if not otherwise stated by the IRS any unpaid taxes must be paid by 18 April. Not everyone though might be able to settle their debt with the tax agency. For that reason the IRS has a series of payment plan options that taxpayers can apply for.
Last year, prices began to rise rapidly, and to support residents in combat inflation, various states began sending out relief checks. Although inflationary pressure in the market has weakened in recent months, the delivery of support will continue in April.
Read our full coverage for details on which residents can expect a check or refund.
Dragging your feet about filing your 2022 tax return? The deadline is Tuesday 18 April, but fret not. The IRS makes it convenient to ask for an extension.
The deadline for most US taxpayers to pay their bill to the IRS is fast approaching. Here’s a look at the multiple ways for you to settle with Uncle Sam.
Three in every four tax filers in the United States receive a refund each year. At the IRS, tax returns are processed on a first-come-first-served basis but with just days left to file it is crucial to submit our 2022 declaration now.
The IRS has sent out over 69 million refunds this year for a total of nearly $199 billion. If you're wondering where your refund is, the IRS has a tool called ‘Where’s My Refund?’ that allows taxpayers to check the status of their refund
The majority of US filers now opt for direct deposit to receive their tax refund, 66 million have been issued so far by the IRS to the tune of $195 billion. However, not haveing to watch the mailbox for a physical check from the Treasury Department you might not recognize the payment into your account.
Every month, the Social Security Administration (SSA) issues millions of payments to recipients of the program, who are mostly retired workers.
The amount to be received depends on the years worked, the salary received and the age at which the worker requested retirement. However, insurance beneficiaries must continue to pay taxes on monthly payments.
However, there are some states in the country that have their own exemptions to avoid paying such high taxes.
The deadline to submit 2022 income tax declarations is fast approaching. Most US taxpayers must turn in their returns and pay any taxes they owe by Tuesday 18 April. Those that need more time can file for can apply for a six-month extension with the IRS. Although, you will still need to pay any outstanding taxes by the April deadline unless otherwise informed.
There are, however, some taxpayers that have been given an automatic extension.
The United States offers a number of social programs to aid low-income residents, including the Supplemental Nutrition Assistance Program (SNAP), which focuses on food assistance.
SNAP is a federal program run by the US Department of Agriculture but administered by the states who usually depend on county governments to enroll beneficiaries and manage the program. Households receiving SNAP are sent an EBT card, which functions like a debit card, and each month money is added to an account associated with the card that can only be used to purchase certain food and household products. The amount varies depending on the number of people who live in the home and the state in which the beneficiary lives.
During the COVID-19 pandemic, the federal government approved an increase of $95 for SNAP recipients to better provide crisis relief. However, this increase ended on 1 March after almost three years. As inflation continues to drive up food prices, these dollars are sorely missed by many households enrolled in SNAP.
Read our full coverage for details on which SNAP beneficiaries will see a small increase in their benefit amount.
After tweaks were made to pandemic-era support, for US taxpayers, charitable contributions will no longer be completely deductible in your federal tax return this year.
Millions of families qualified for EITC in 2022, a nearly $7,000 tax credit
The Earned Income Tax Credit is a refundable credit, meaning that once taxes owed are accounted for the remainder gets added onto a tax refund. The credit could be worth up to almost $7,000, but the amount varies depending on earnings and the size of the taxpayer's family.
Last year, the Internal Revenue Services reports that "as of December 2022, 31 million workers and families received about $64 billion in EITC. The average amount of EITC received nationwide was about $2,043."
There are plenty of tax credits available this tax season, with some people in the US eligible for a refund of more than $10,000.
Prices slowed their growth in March, only rising 0.1 percent, bringing the year-over-year change in the CPI down from six to five percent. Housing continued to be a major driver of inflation, a worry for some economists who predict that higher rates could continue to push home prices up.
Combined with the increases seen in January and February, inflation has officially hit one percent this year. Markets are likely to respond positively, given the newest report is a major sign that inflationary pressure may be disapating.
Read more on which goods and prices saw changes in their price in March in our full coverage.
This year, the SSA applied an 8.7 percent Cost-of-living adjustment (COLA) increase to American benefits. The COLA is calculated each year to help payments maintain their purchasing power with inflation, which has been particularly high the last 18 months.
Once the COLA was applied, the average retiree payment increased to about $1,830 a month. However, some are set to receive more than $4,000. Let’s see who qualifies.
Mortgage rates fall for fifth consecutive week
Mortgage rates inched down once again for the fifth week in a row. The average 30-year fixed-rate mortgage was 6.27% for the week ending 13 April according to Freddie Mac..
Treasury Secretary Janet Yellen sees "soft landing" for US economy
I do think there’s a path to bring down inflation while maintaining what I think all of us would regard is a strong labor market. And the evidence that I’m seeing suggests we are on that path.
Are there risks? Of course. I don’t want to downplay the risks here, but I do think that’s possible.
Janet Yellen discusses inflation and the US economy
Treasury Secretary Janet Yellen sat down for an interview with CNN on Saturday where she discussed the state of the US economy, the strength of the dollar in the world market and more. The interview will air Sunday morning at 10 am ET/PT.
Tens of millions of Americans receive Social Security retirement benefits each month, but many recipients may not be aware of the tax implications.
Digging through the sofa to find some spare change? Well you might be able to get a lot more than a few coins. The IRS announced that nearly 1.5 million people across the country have unclaimed refunds for tax year 2019.
Welcome to AS USA’s live blog on the latest financial news
There’re just three days to go before the 18 April deadline to file your tax returns. We'll give you some reminders and tips to help the process go smoothly.
Plus we will give you the latest figures on the economy after more inflation data was released this past week and other financial news.