Relief checks summary news: 23 March 2023
US Finance: Latest Updates
Headlines: Thursday, 23 March 2023
- Initial unemployment claims fell by 1,000 to 191,000 last week
- Bank of England and the US Federal Reserveboth announced interest rate hikes this week to curb inflation.
- Issues of equity in the workersoffered a four-day work week arise
- Federal Reserve expects unemployment to increase by around one percent in 2023
- Selling crypto assets at a loss may lower your taxable income
2023 Tax Season
- Requirements to receive over $10,000 for the CalEITC & EITCwith my tax refund
- IRS’ top tips to avoid refund delays in 2023
- What to do if your claim for EITC is denied
Millions of Californians benefit from a tax provision available both from the state and the federal government that is targeted to workers with more modest incomes. The refundable tax credit is called the Earned Income Tax Credit, EITC for the IRS and CalEITC for the California Franchise Tax Board (FTB).
Although each credit must be claimed separately, the EITC on federal tax returns and the CalEITC on California tax returns, tax filers can claim both. Combined they could be worth over $10,000 this tax season. But the eligibility requirements differ between the two. Here’s a look at who is eligible and how much could be claimed…
Crypto asset valuations can fluctuate wildly but the general direction over 2022 was down, way down. Those that dipped their toes into the developing market, and seasoned investors alike, may have lost a pretty penny or two.
Like any other asset or property, crypto assets are taxed by the IRS when you sell them and make a profit. The level that the earnings you made from the sale are taxed depending on the length of time you held the asset. Should you make money on them you will have to pay either short-term or long-term capital gains tax.
However, if you sold the crypto asset for less than you bought it for, you may be able to subtract it from your capital gains or deduct that amount from your taxable income, up to a certain limit the year that the loss was regisitered. Any amount above that limit can be carried over indefinitely until you have exhausted the full amount that you lost in the transaction. Here’s a look at how to report crypto losses on your taxes…
The results are in! Many companies in the United States and abroad that have piloted the four-day workweek will not return to their previous schedules after seeing benefits for both staff and their bottom line.
In the United States, there are a growing number of firms offering a shorter workweek to make it easier for workers to balance their work and personal lives. By lowering the number of hours worked, companies have seen increases in productivity which can translate to greater profits or, in the case of non-profits, greater efficiency.
However, one detail overlooked in the discourse on the four-day workweek is the types of companies that make the switch and, subsequently, the workers that would be offered the benefit.
Check out our full coverage for more details the companies offering a paid reduction in the workweek and the issues of unequal access to the benefit that has arisen.
Yellen says that US regulators ready to take additional actions to protect bank deposits
We have used important tools to act quickly to prevent contagion. And they are tools we could use again. The strong actions we have taken ensure that Americans’ deposits are safe. Certainly, we would be prepared to take additional actions if warranted.
Consider recent events impact on the long-term cost of equity capital for non-systemically important banks where you can wake up one day as a shareholder or bondholder and your investment instantly goes to zero. When combined with the higher cost of debt and deposits due to rising rates, consider what the impact will be on lending rates and our economy.
The longer this banking crisis is allowed to continue, the greater the damage to smaller banks and their ability to access low-cost capital.
Trust and confidence are earned over many years, but can be wiped out in a few days. I fear we are heading for another a train wreck. Hopefully, our regulators will get this right.
The 2023 tax season is under way and filers have until Tuesday 18 April to turn in their federal tax declarations for the 2022 fiscal year. The same deadline applies to residents of California to file their state tax returns.
When filing your tax return, you should keep in mind that both the federal tax agency and FTB offer tax credits that could add thousands of dollars to your tax refund. One of them is the Earned Income Tax Credit (EITC), the Golden State specific one is CalEITC. Put together, these two credits could be worth over $10,000. Here’s a look at what is required to claim the credit.
Here’s a look at the eligibility requirements and how much you can receive…
Retiring at 66 is the full retirement age for some Americans but for others they will need to wait longer to access their benefits without being penalized.
The retirement age when Americans can claim their full benefits has been steadily increasing. Currently, those who were born in 1960 and after will need to wait until they are 67 years old, and one month, to reach the full retirement age.
AS USA's Oliver Povey tells us more about what could happen to your benefits if you retire early.
While inflation has fallen for several months, prices today remain, on average, six percent higher than those paid by consumers a year ago. To help residents keep up with inflation, three states are providing direct relief.
AS USA's Maite Knorr-Evans has the full lowdown.
Eligible borrowers can have their student debt forgiven after 10 years through the Public Service Loan Forgiveness (PSLF) program.
AS USA's Greg Heilman has the full lowdown on the scheme.
SEC warns investors about ‘Wild West’ crypto assets
The US Securities and Exchange Commission is warning investors about investment involving crypto asset securities, what the SEC chair has called a "Wild West" full of misconduct, issuing an alert that firms that offer crypto asst securities may not be complying with US laws. This comes after a series of crypto platforms have folded in recent months, most notably the FTX cryptocurrency exchange run by Sam Bankman-Fried, and a day after charges were filed against Justin Sun for fraud and illegally selling crypto securities along with eight celebrities who are accused of illegally promoted them.
“The SEC’s Office of Investor Education and Advocacy continues to urge investors to be cautious if considering an investment involving crypto asset securities. Investments in crypto asset securities can be exceptionally volatile and speculative, and the platforms where investors buy, sell, borrow, or lend these securities may lack important protections for investors. The risk of loss for individual investors who participate in transactions involving crypto assets, including crypto asset securities, remains significant. The only money you should put at risk with any speculative investment is money you can afford to lose entirely,” the statements from the SEC begins. Read the full investor alert warning…
The IRS and the state government are granting an automatic deadline extension for filing tax returns to qualified California residents.
The full list of counties which are eligible for tax relief in our report.
Tax benefits and credits for people living with disability
The IRS provides information on existing tax credits and benefits that may be available to qualifying taxpayers with disabilities, parents of children with disabilities, and businesses or other entities wishing to accommodate persons with disabilities.
The office provides a guide on tax deductions, income exclusions, and credits you may be entitled to. These benefits include Earned Income Tax Credit for parents of children with disabilities, adoption credit, and child or dependent care credit.
Save for the future or prepare for the present?
With many people finding themselves short on cash due to inflation, there is a need to rethink where to spend one's money.
Despite the uncertainty following the failure of banks and fears of a recession, experts say you shouldn’t forgo emergency savings to max out your 401(k).
Although they agree that short term financial goals such as building an emergency fund should be a priority, they recommend contributing enough money to your 401(k) to get the full company match.
There are tax refunds available for Californians that could lead to a very healthy tax return if they qualify.
A credit available is the Earned Income Tax Credit, which is aimed at low-income workers and their families possibly worth almost $7,000. EITC recipients can receive up to $6,318. However, the exact amount will depend on the situation of each family or individual applying, such as the number of children one has or annual income.
AS USA's Oliver Povey tells you more abouthow to qualify for the maximum EITC.
US housing sales surge amid stock shortage
US home sales rebounded in February despite supply shorrtages in some parts of the country. Sales were up 14.5% as 980,000 homes were put on the market. However, March figures are expected to be lower after the Federal Reserves interest rate hike and the shortage of affordable properties on the market. This time last year, the number of properties on the market nationwide was over 2 million, more than double the current number of listings.
UK interest rates rise
The Bank of England’s Monetary Policy Committee voted today to raise its base interest rate to 4.25% from 4%. It is the 11th consecutive increase, taking the base rate to its highest since October 2008. The BoE’s hike follows the Federal Reserve, which hiked interest rates by 0.25% yesterday.
UK inflation is currently running at 10.4% as according to the Office for National Statistics.
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After the collapse of Silicon Valley Bank and Signature Bank, have retirement accounts and pension plans been affected? What will happen to them? We will explain.
US banking system is "sound and resilient" - Fed
Federal Reserve Chair Jerome Powell stated that US banks remain strong in spite of the recent collapses of Credit Suisse and Silicon Valley Bank. "Our banking system is sound and resilient, with strong capital and liquidity" Powell said on Wednesday. "We will continue to closely monitor conditions in the banking system and are prepared to use all of our tools, as needed to keep it sfae and sound. In addition, we are committed to learning lessons from this episode and to work to prevent episodes like this happening again.
"Inflation has moderated somewhat from the middle of last year but the strength of these recent readings, indicates that inflation pressures continue to run high. The median projection for total PCE inflation is 3.3% for this year, 2.5% next year and 2.1% in 2025. The process of getting inflation back down to 2% has a long way to go and is likely to be bumpy," he concluded.
Citigroup CEO expresses confidence in the US banking system
Citigroup CEO Jane Fraser says the recent failures of some banks is not something that is spread across the whole banking system.
She says banks are coming together because they are confident that the situation does not constitute a credit crisis.
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Tax season is well underway in the U.S., with taxpayers having until April 18 to file.
This deadline has been pushed back for some residents in Alabama, California, and Georgia after natural disasters created hurdles for many to submit their returns on time.
To help taxpayers receive their refunds in a timely manner, the IRS has released some guidance to ensure they have a smooth filing experience.
Home prices finally going down
Prospective homeowners in the US have been put off by high property prices and steep mortgages for years, but after a decade of steadily going up, housing prices finally went down.
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The Federal Reserve’s Federal Open Market Committee has released its quarterly economic outlook and projections, which forecast the median unemployment rate for 2023 to hit 4.5 percent.
The current national unemployment rate sits at 3.6 percent but differs across educational backgrounds, gender, race and ethnicity, ethnicity, and a variety of other demographic groupings.
AS USA's Maite Knorr-Evans tells us more about how high unemployment could go this year.
The Federal Reserve has announced yet another interest rate increase, moving the federal funds rate up to 4.75-5 percent.
The federal funds rate is set by the Fed and is used as a benchmark with which banks borrow and lend to each other.
The Fed is hoping that continuing to raise rates will cool the economy by discouraging borrowing. However, for those who already have some kind of credit mechanism or loan, this strategy has been costly.
We take a look at the consequences for some of the most common types of borrowers.
Eggflation is declining
For many grocery shoppers, the price of eggs reached shocking levels earlier this year. With companies exploiting scares over avian flu, supply fell, and prices rose rapidly.
The Bureau of Labor Statistics is now reporting that in February, the price of eggs began to fall, a positive sign for shoppers. The agency also noted that the price of milk and other basic food staples also fell. However, particularly with eggs, the fight to bring down prices is not over, considering that they are still 64% more expensive compared to February 2021.
The US Securities and Exchange Commission has announced charges against Chinese cryptocurrency entrepreneur Justin Sun and three of his companies for illegally selling crypto securities and fraudulently inflating the trading volume of them.
Eight celebrities have also been charged with illegally promoting the crypto assets Sun founded.
Among the celebrities charged are actress Lindsay Lohan and social media personality and professional boxer Jake Paul.
AS USA's Greg Heilman tells the full story.
Daily finance news: welcome
Good morning! Welcome to our finance news live blog for Thursday, March 23, 2023.
We’ll be providing you with updates on inflation relief measures in the US - and, what's next after the Federal Reserve updated its economic outlook and projections.
With just under a month to go until the tax deadline in the States, we’ll also have the information you need on filing your return, and how you can take advantage of the tax credits on offer to US taxpayers.