Relief checks 2023 | Summary news 6 April
US Inflation Relief: Latest Updates
Headlines: Thursday 6 April, 2023
- Millions of dollars in SNAP benefits have been stolen, what to do if this happens to you
- Weekly first-time jobless claims drop 18,000 to 228,000
- Jobs openings decreased in February, still 1.7 jobs for every unemployed worker
- The US Labor Department will release March jobs report on Friday, experts predict 240,000 jobs added
- 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 2033 and 2031
- Experts differ in their opinion over whether mortgage rates will increase or fall vary widely
- Various states will continue to issueinflation relief checks and generous tax refunds in April
- Social Security April payment schedule: when can you expect your payment?
- No Supplemental Security Income checks will be sent in April;instead, the April payment was made on 31 March
- IRS offers a tax credit to filers with dependents in other countries
Read more from AS USA:
Federal Reserve officials point to "greater headwinds" heading towards the US economy
This is an especially challenging time to be an economic analyst or policymaker. Recent developments in the banking sector have added to existing uncertainties about recovery from the pandemic shock and developments abroad. In that context, the economic and policy outlook needs to balance data dependence with forward-looking analysis. Recent data show greater momentum in inflation and economic activity, but recent banking developments may suggest greater headwinds for financial conditions and the economy going forward.
Which states have the highest unemployment rate?
The Bureau of Labor Statistics has reported that Nevada (5.5 percent) led the country in terms of unemployment. Oregon came in second place at 4.7 percent.
The lowest rates recorded in February 2023 were seen in North Dakota and South Dakota (2.1 percent), Nebraska (2.3 percent), Montana, and Utah (2.4 percent).
The average unemployment rate in the US in February stood at 3.6 percent and in February seventeen states had levels lower than seen nationally.
In the United States, 41.2 million or twelve percent of people depend on Supplemental Nutritional Assistance Program (SNAP) benefits, previously known as food stamps.
In late 2022, the US Department of Agriculture (USDA) announced that some beneficiaries had seen the value of the pre-paid debit cards distributed as a part of SNAP stolen by scammers. The exact scale of this fraud remains unknown, but the fact that vulnerable people have seen much-needed benefits stolen and, to this point, left without few options is extremely concerning.
Read our full coverage for details on how the benefits are being stolen and which states are offering relief to these victims.
Investors are anxiously awaiting the release of the Labor Department March 2023 jobs report on Friday. The data will help them infer what the Federal Reserve’s policy on future rate hikes may be when they meet in May. Over the past 12 months policymakers have voted to raise interest rates by nearly 500 basis points and it appears they are beginning to have their intended consequences.
The number of job openings fell to its lowest level in almost two years, as hiring in the private sector slows. But the labor market remains tight with 1.7 jobs available for ever unemployed worker. Additionally, manufacturing activity approached a three-year low in March.
Economists are forecasting the US economy added 239,000 new payrolls last month according to a survey by Reuters a slowdown from 311,000 in February. Wage growth, which is being closely watched by the Fed, is expected to come in at 4.3%, the slowest pace in nearly two years.
A worker needs 10 years’ worth of credits to qualify for Social Security payments, but what if you work abroad? Does that time spent working count too?
First-time unemployment claims drop by 18,000
The US Department of Labor released its weekly report on jobless claims on Thursday which showed a drop of 18,000 initial unemployment claims to 228,000 for the week ending 1 April. That was higher than the 200,000 that economists polled by Reuters had predicted.
A new program called Pathway to Income Equity kicked off in Sonoma County in February which provides families with $500 payments each month.
Baby boomers dominanting the housing market
Like pretty much everything else the price of housing shot up during the pandemic fueled by record low mortgage rates and a mass migration as Americans rethought their living situation. To add insult to injury, to tackle rising inflation the Federal Reserve began aggressively raising interest rates which helped more than double the cost of borrowing to buy a home. When coupled with high prices many would-be homebuyers were pushed out of the market.
While the bidding wars have calmed down and mortgage rates begin to retreat, another dynamic is now playing out, an intergenerational battle to buy a home. Baby boomers have become the largest group of homebuyers at the expense of millennials according to the National Association of Realtors (NAR). Over the past year the percentage of millennials who managed to close a purchase of a home plummeted from 43% to 28%, meanwhile baby boomers jumped from 29% to 39% in the same time. What’s happening?
“Boomers have the money, and they have the housing equity, and they were able to win out on multiple-bid situations by either paying all cash or putting down a significant down payment,” said the NAR vice president of research Jessica Lautz. “They’re not downsizing. Baby boomers are purchasing the same size of home or larger than what they were living in before.”
First-time homebuyers are also being squeezed out with the level at its lowest level since the NAR began measuring in 1981, dropping from 34% to just 26% over the past year.
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The IRS allows you to donate money tax-free. We tell you what is the maximum amount of money you can donate and above which what amount is paid to the IRS.
The winter of 2022-23 has seen a number of natural disasters beset parts of the nation from coast to coast. The severe weather events have brought torrential rains and flooding to California, snowstorms to New York and tornadoes in the Deep South prompting the IRS to provide filing extensions to taxpayers in areas with disaster declarations by FEMA.
Extensions for the affected areas range from 15 May to 16 October 2023. The IRS will automatically identify the taxpayers who are in those areas and apply filing and payment relief. But they will still need to indicate on their tax forms which natural disaster applies when claiming a loss.
Researchers discuss the 'Great Retirement'
In addition to a higher than average level of quitting (i.e., workers voluntarily leaving their jobs), older workers are leaving their posts too... but for this latter group, that exit is permanent.
During the pandemic, those close to or within retirement age left the workforce, which helps to explain why the laborforce participation rate remains lower than it was in 2020, even though there are a greater number of people working in total.
Two teachers at the Federal Reserve took a look at these trends and how this 'Great Retirement' could impact the US labormarket in years to come.
31 million 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."
The Earned Income Tax Credit (EITC) can put thousands of dollars in taxpayers’ pockets that qualify to claim it. The credit is aimed at low-income workers and their families possibly worth almost $7,000. However, the credit comes with strict rules on who is eligible and the amounts that they can claim.
The Internal Revenue Service warns taxpayers that they are responsible for making sure that everything on their tax return is correct, even if someone else prepares it for you. Mistakes could result in your refund being delayed, an audit or the tax agency denying some or all of a credit claimed.
In the event that the IRS finds that you sent an erroneous tax declaration, the agency will send you a letter to inform you. You will need to pay a penalty and any money, along with interest, that you may owe the IRS if reasonable cause does not apply.
Read more for guidance if your EITC is denied.
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The Social Security Administration (SSA) is preparing to send out another round of monthly checks for Social Security, Supplemental Security Income (SSI), and other benefit programs distributed by the agency.
Thanks to the 8.7 percent increase in the Cost-of-living adjustment (COLA) applied to benefits in 2023, the size of the average Social Security payment reached 1,830 in February 2023. This is up from an average payment size of $1,677 seen by beneficiaries in November 2022 before the 2023 COLA took effect.
Read our full coverage for the dates these checks can be expected.
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On March 31, the Social Security Board of Trustees released the annual report on the financial status of the Social Security Trust Funds, which includes the Aging and Survivors Insurance (OASI) and Disability Insurance (DI) Trust Funds.
According to the report, the combined asset reserves of both the OASI and DI funds will be depleted by 2034. If Congress does not act before then, there will only be enough revenue to pay for the 80% of scheduled benefits.
Read our coverage for more details on the report.
Upon filing their taxes, many filers in the United States receive a refund. Filing as soon as possible is the best way to make sure your return is processed promptly, because as time goes on, more people send their returns which can create processing delays; at the IRS tax returns are processed on a first-come-first-served basis.
Typically the IRS is able to distribute a tax refund within twenty-one days so long as the return is filed electronically. Those who file with paper may have to wait up to six months to receive their refund.
Read more in our full coverage on how to track your refund using the IRS' own online tool.
Welcome to AS USA's live blog on inflation relief and financial news
Throughout the day we'll bring you the latest news on measures to provide inflation relief, Social Security, 2023 tax season, interest rates, the housing market and more.
As the national tax filing date approaches, we will be providing you with information from the IRS on how to preventhiccups during processing and the distribution of your refund.
This week the Bureau of Labor Statistics will release the March Unemployment Report. This information will provide further insights into how rate hikes from the Federal Reserve are impacting the labor market.