Relief checks 2023 | Summary news 5 April
US Inflation Relief: Latest Updates
Headlines: Wednesday 5 April, 2023
- 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:
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.
/cloudfront-eu-central-1.images.arcpublishing.com/diarioas/72PQMEDIS5METOUTUMW77ICUHA.jpg)
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.
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.
/cloudfront-eu-central-1.images.arcpublishing.com/diarioas/VOUS5VBIEJO2ZCIQ6S6HZINZTA.jpg)
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.
Tax credits that can increase tax refunds by thousands of dollars
Tax filing season can be a stressful time but, with a majority of filers expected to receive a refund, it can be a lucrative time if you take advantage of the various tax credits on offer.
Taxpayers with eligible children can claim the Child Tax Creditworth up to $2,000 per child. This year the credit is partially refundable. Which means that taxpayers who owe less in taxes than the refundable amount will have it added to their tax refund, and the non-refundable portion will reduce taxes owed dollar-for-dollar.
There is also the Child and Dependent Care Credit is designed to ease the burden of childcare for working people. If you have to pay to ensure a child or dependent is looked after while you are at work, you will most likely be able to claim the credit.
For the 2022 tax year parents and care-givers can claim the tax credit to cover employment-related expenses worth up to $3,000 per dependent, up to a maximum of $6,000.
"A system in which a bank failure does not cause undue panic"
While you don’t want banks to fail all the time, it should be allowed to happen, and the resolution should follow a completely prescribed process.
In almost all bank failures, uninsured deposits never resulted in lost money — but the very fear of loss can cause a run on any bank having characteristics similar to a bank that has failed.
Resolution and recovery regulations did not work particularly well during the recent crisis — we should bring clarity and reassurance to both the unwinding process and measures to reduce the risk of additional bank runs.
JPMorgan Chase CEO says that banking crisis in "not yet over"
JPMorgan Chase released its annual report to shareholders on Tuesday in which CEO Jamie Dimon said that the banking crisis is "not yet over, and even when it is behind us, there will be repercussions from it for years to come.” However, the current crisis is “nothing like what occurred during the 2008 global financial crisis.”
While he warns against “knee-jerk, whack-a-mole or politically motivated responses” he called for better regulations that will eliminate “costly inefficiencies and contradictory policies” through coordinated and well-thought out planning. At the same time will prevent “undue panic and financial harm” as was the case when depositors withdrew massive amounts of money causing SVB to collapse.
The Social Security Administration sends out monthly payments to nearly 71 million beneficiaries each month, but in April one group will not receive a check.
Job openings fell in February signaling a cooling yet still healthy labor market
The US Department of Labor released data on job openings in February showing a drop from 10.6 million to 9.9 million, the lowest level in almost two years. The decrease signals that the red hot US labor market is beginning to cool somewhat but it still remains tight with 1.7 jobs open for every unemployed worker.
Despite the numerous layoffs that have been announced so far this year, conditions for workers remain healthy. The number of workers cut from payrolls dropped slightly to 1.5 million in February, while those that chose to leave their job for greener pastures rose to 4 million, a slight increase.
Requirements to get up to $7,000 for the Earned Income Tax Credit Refund
Every year, many Americans leave money on the table failing to claim tax credits that could reduce how much they owe to Uncle Sam, or even be fatten up their tax refund by thousands of dollars. Once such overlooked credit is the Earned Income Tax Credit (EITC), which is aimed at low-income workers and their families possibly worth almost $7,000.
Layoffs at major corporations like Amazon, Microsoft, and Meta have made headlines as these businesses adjust their business practices to current economic conditions. However, workers far beyond those employed in the tech sector have been impacted by job losses.
So far this year, around 3.3 million workers have been laid off. Which sectors have seen the highest job cuts?
Month after month, the Social Security Administration (SSA) issues millions of payments to all beneficiaries of the various programs they oversee, the vast majority of which are retirees.
Once the COLA was applied, the average retiree payments increased to about $1,830 a month, according to the SSA. However, some receive more than $4,000, which is twice the average. Let’s see who qualifies...
During the pandemic many workers were forced to work from home. A situation that many found suited them prompting a reconsideration of their abodes and a mass migration to upsize. Normally purchasing a condo is cheaper than a single-family house, which is the case in the majority of cities and in some the difference is more than double.
But a new study has found cities where the opposite is true.
Decline in home prices and mortgage rates attracts buyers, supply an issue
New Redfin data shows that more potential homebuyers are taking the first steps at purchasing a house with its Homebuyer Demand Index hitting the highest level since May last year. The number of people requesting tours and other buying services jumped as home prices and mortgage rates continue to fall.
The median home sale price across the nation decreased for a sixth straight week now at $360,500. Over half of the nation’s 50 most populous metro areas saw price declines.
Mortgage rates, while still over double historic lows before the Federal Reserve began aggressive monetary tightening, dropped for a third week in a row with the average 30-year fixed mortgage rate at 6.32% for the week ending 30 March.
However, sales haven’t picked up hindered mainly by a lack of supply confronting would-be buyers. Many homeowners are reluctant to sell having locked in rock-bottom mortgage rates.
Tax deadline extended certain residents in parts of Arkansas
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.
Residents in certain counties in Arkansas are the latest to be added to the list of taxpayers that will automatically receive an extension on the tax filing deadline until 31 July 2023. "Individuals and households that reside or have a business in Cross, Lonoke and Pulaski counties qualify for tax relief."
Can't meet the tax filing deadline?
Worried about missing the national tax filing deadline on Tuesday 18 April? File for an extension though mid-October, advises the IRS.
Those who apply for an extension should be aware that it only applies to the return and that any taxes owed must still be paid by the April deadline.
Find out more below...
/cloudfront-eu-central-1.images.arcpublishing.com/diarioas/QV6THY6I2NCSXARZ6GVQ6LFAJY.jpg)
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.
Find out where checks are being sent in our full coverage.
Aside from personal reasons, which may motivate some seniors to retire closer to family or in the community where they have lived in worked for decades, the living standard available to older people should be evaluated when choosing where to settle. Wallet Hub, the financial news site, ranked states across three categories: Affordability, Quality of Life, and Health Care.
The overall highest-scoring states were Virginia, Florida, and Colorado. At the other end of the spectrum, Kentucky, New Jersey, and Mississippi scored the lowest.
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.