Relief checks news summary | 19 February 2023
US Finance News: Latest Updates
Headlines: Sunday, 19 February 2023
- Department of Labor announces penalties for 13 companies found violating child labor laws
- Real wages fell by 0.2 percent in January for a year-over-year decrease of 1.8 percent
- Retail sales beat expectations, increasing 3% in January
- Wall Street leaders predict 'soft landing' of US economy: what does this mean for workers?
- Inflation data for January shows 6.4% price increase year-on-year
- IRS reports a ten percent decrease in the average refund size compared 2022
- Michigan to send $180 inflation relief checks: Who qualifies and when will they arrive?
2023 Tax Season
- Which states are still sending relief checks in 2023?
- Did you receive a state stimulus check? No need to report the payment as income to the IRS.
Read more from AS USA:
Bernie Sanders on income inequality
Bernie Sanders, the newly appointed Chair of the U.S. Senate Committee on Health, Education, Labor & Pensions, released a short video talking about income disparities between kindergarten teachers and Wall Street fund managers.
Sanders says one fund manager makes more in a year "than every kindergarten teacher in America combined." Sanders asks how this fact can be explained when considering the value brought by teachers of all ages, particularly those who set children up for success at a young age.
The Vermont senator also mentioned called attention to falling wages for teachers, noting that "in almost forty percent of our school districts," the starting pay for a teacher is $40,000." These conditions, which for many do not improve significantly as teachers gain experience in the profession, are causing a crisis in education. Educators are leaving the field in droves, and not just new teachers. Shortages of qualified and credentialed teachers are growing, which will worsen educational outcomes.
Increasing pay and improving the conditions of teachers who are increasingly persecuted with false attacks of indoctrination. For Sanders, reducing income inequality by increasing teacher pay is one way to rebuild the failing educational system.
The third batch of Golden State stimulus checks was sent on 6 October. This send included the first batch of physical checks as well as more direct deposit. / JUSTIN SULLIVAN / AFP
Which states are still sending relief checks in 2023?
While the US economy in many respects, has recovered from the economic collapse induced by the covid-19 pandemic, the disruptions brought about by the virus are still rippling through the economy. The federal government doled out trillions to keep the economy from imploding, including direct stimulus payments to Americans.
However, those measures have been ended, but supply and demand imbalances, shocks to the global economy, and aftereffects of the pandemic have continued to push the price of basics higher like food and energy over the course of 2022. Since the federal government was no longer stepping up, state governments put in place their own programs last year to help their residents cope with the higher cost of living.
Using budget surpluses, they sent their own direct payments, some of which are still arriving. At least one additional proposal is in the works for 2023. Here’s a look at which states are still sending extra money to their residents.
Those in California who have received a check through the Middle-Class Tax Relief program will not be required to pay federal income tax. What you need to know. / ERIN SCOTT / REUTERS
What to do if you already paid taxes for your relief or stimulus checks in California
Earlier this month, the Internal Revanue Service (IRS) warned taxpayers who had received a stimulus check from their state to postpone filing their tax return until the agency determined if these payments counted as taxable income.
The guidance is now available, and for taxpayers in California, the news is good. Because the Middle-Class Tax Refund is classified as a “payment [...] made for the promotion of the general welfare or as a disaster relief payment,” the checks will not be taxed at the federal level.
Check out our full coverage for more details on the guidance from the IRS for California and other states who sent direct payments to their residents.
E-commerce sales rise slightly in Q4 2022
The covid-19 pandemic and the stay-at-home orders in response to the outbreak sent e-commerce shopping to new heights.
While the total spent online has fallen since its peak in early 2020, the levels ticked up in Q4 2022 compared to the previous quarter. The total increase was small, rising from 14.6 to 14.7 percent.
E-commerce giant, Amazon expanded its staff at extremely high rates as demand for their service skyrocketed earlier in the public health crisis. However, as businesses began to reopen and consumers felt safe returning to brick-and-mortar storefronts, their sales have fallen. Nevertheless, teh company has continued to rake in high profits, but has decided to reduce their staffing levels to adjust to new market conditions.
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The IRS allows for a qualifying relative as a tax dependent, but what exactly does that mean? The tax agency uses the term ‘qualifying relative’ for people who can be claimed as a tax dependent despite not being your spouse or child.
This can include boyfriends and girlfriends, but also nieces, nephews and siblings.There are four tests used to judge eligibility for qualifying relative tax dependent status...
American taxpayers who filed their 2022 tax returns as soon as the filing period opened at the end of Janauary will be receiving their refunds. However, many of them are smaller than the refunds seen during the 2021 filing season.
The average refund for the 2021 season was, at this stage, $2,201 while so far for the 2022 season it is $1,963, a 10.8% decrease. Nearly 8 million people have received a refund, more than twice the amount of mid-February at the same time last year. The total amount of money refunded at this point has increased by about two-thirds, from $9.5 billion last year to nearly $16 billion this year.
The highest and lowest state unemployment benefits in 2023
While unemployment has hit an historic low nationwide in January, there have been a series of high-profile layoffs, especially in the tech industry. For those workers who lose their job through no fault of their own they may be able to receive unemployment compensation. Unemployment Insurance programs provide financial support to workers for a period of time while they find a new position.
However, despite being a a federal-state joint venture, beyond some basic federal mandates the states can run their programs with a fairly free hand. This means that there is no uniform set of rules to qualify, nor types of workers who are eligible to file a claim. Additionally, the weekly amount can vary greatly from one state to the next. Here’s a look at the UI landscape around the United States in 2023.
Due to the high inflation rates in the United States, a number states across the country have decided to offer some form of assistance, relief payments or stimulus checks to their residents. Although some states have already doled out cash a number of states are still at the proposal stage.
Take for example Michigan, where Governor Gretchen Whitmer has unveiled a proposal to send a $180 relief check to state residents as part of the plan to reduce Michigan costs; because a “huge budget surplus with billions of dollars unspent” is anticipated, so the government seeks to benefit its residents with the excess money.
ChatGPT becomes the fastest-growing consumer application
A competition is on to rollout artificial intelligence powered systems. Both Google and Microsoft are testing AI enhanced search engines, but one tool the general public can now use is ChatGPT. The AI chatbot developed by OpenAI allows users to input prompts to generate articles, essays, jokes and even poetry.
The application was launched at the end of November and has already reached 100 active users per month as of January according to estimates. That makes it the fastest growing consumer app beating out TikTok which took nine months to achieve similar levels of adoption.
When filing your taxes, you may be able to apply for any of the tax credits offered by the tax collection agency, including the Earned Income Tax Credit (EITC), which is aimed at low-income individuals and families.
EITC recipients can receive up to $6,935, almost $7,000. 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.
White House touts administration's drive to build green infrastructure
This week the Biden-Harris administration announced new standards to electrify the great American road trip. The bipartisan infrastructure bill passed last year has earmarked $7.5 billion for electric vehicle charging. That will help fund the goal of building a network of 500,000 EV chargers along the nation’s highways and in communities across the country.
To make the nationwide system more convenient and reliable the Department of Transportation, in partnership with the Department of Energy, finalized new standards for EV chargers. Now, no matter what car you drive ort which state you are in the standards will ensure everyone can use the network.
At the same time provisions set out in the legislation will ensure that there are strong workforce standards and that EV production will be Made-in-America.
The Federal Reserve is tasked with providing stable conditions for the US economy and is utilising its power to adjust interest rates to cool inflation. But what does an ‘interest rate hike’ actually involve?
With financial experts predicting another three interest rate hikes in 2023, home-owners should anticipate further increases on their monthly mortgages repayments in the coming months. We take a look at what to expect...
Mortgage rates tick up for second week stymieing housing market rebound
Mortgage rates ticked up for a second week with the weekly average 30-year fixed rate rising two tenths of a percent to 6.32% nationwide according to Freddie Mac. Rates are more than double what they were at their historic lows around 3% in 2021.
Mortgage rates had been falling since peaking over 7% in late October and again in early November. That brought more would-be homebuyers back into the market animating a housing sector that has been cooling due to higher borrowing costs on top of high prices. While experts see a moderate downturn nationwide, some markets could still see large decreases in values.
Demand is still stronger than it was in November, but Redfin’s Homebuyer Demand Index is down slightly from last month, the first decline after months of increases.
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Tax filers will be eager to know if and when they will be receiving a tax refund. Filing a tax return as soon as possible is the best way to make sure your return is processed promptly; the IRS will be sifting through tens of millions of tax returns on a first-come-first-served basis.
Typically the IRS is able to distribute a tax refund within 21 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 our full coverage for details on when you can expect your refund and how to track it.
In November, the Department of Labor (DoL) announced its intention to investigate a major slaughterhouse cleaning contractor, Packers Sanitation Services Inc. (PSSI), after a series of child labor violations were uncovered.
On 17 February, officials said that their investigation had found that 102 children were involved in labor law violations in thirteen factories across eight states. PSSI had been contracted by major companies like Tyson Foods and Cargill, who were found to have seven and twenty-seven children between thirteen and seventeen working illegally. The investigation found that the children employed had been working with “hazardous chemicals” and had been tasked with “cleaning meat processing equipment including back saws, brisket saws and head splitters.”
Those who believe what happened at these facilities was an isolated incident should be aware that this case was one of many published by the DoL last week.
Read our full coverage for information on these other cases, including those where negligence and carelessness on the part of company leaders led to the deaths of two children.
Earlier this year, the United States made a decision that could be vital in encouraging the purchase of electric vehicles. The Administration launched a tax credit for which many citizens can opt for a benefit of up to $7,500 if they purchase an electric car.
However, it must be taken into account that there are a series of requirements that must be met in order to be able to purchase this form of transport, which is safer and cleaner for the environment.
Electric vehicles could make up more than 50 percent of car sales by 2030
The number of electric vehicles on the road has been growing rapidly as adoption of the technology accelerates. In ten years, sales of EV went from 0.2% of total car sales to 4.6% in 2021. There are now over 2 million of them on the roads.
While the forecast for future adoption on switching to EVs varies due to evolving government policies and car manufacturers turning their production lines over to all electric, optimistic estimates foresee electric vehicle sales surpassing 50 percent by 2030.
SNAP benefits, also known as food stamps, became a crucial form of financial support for millions of families. The federal government introduced Emergency Allotments (EA) to increase the amount on offer to recipients.
The program has gradually been rolled back in the past year and February 2023 will be the final month in which recipients in certain states, those still offering the boost, can benefit from the EA. The Center on Budget and Policy Priorities (CBPP) reports that 35 states and territories are still paying EAs this month, but that additional support will end in March.
We take a look at who will be affected...
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Hello and welcome to AS USA, your home for financial news and information this filing season. We have the latest advice and guidance from the IRS to help you submit taxes, along with information on measures to fight inflation, the debate on federal spending to raise the debt ceiling limit and more.