Relief checks summary news: 25 March 2023
All the latest from finance related news in the US
US Finance: latest updates, March 25, 2023
- Wall Street ends in the green after turbulent week
- Depositors pulled out $100 billion from banks in the period of the failure of SVB and Signature Bank
- 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 workers offered 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 & EITC with my tax refund
- IRS’ top tips to avoid refund delays in 2023
- What to doif your claim for EITC is denied
What's happening with interest rates?
On Wednesday, the Federal Reserve Board of Governors announced its ninth consecutive interest rate hike — part of its ongoing battle with stubbornly high inflation. The goal is to slow the economy down and rein in inflation, without dipping us into a recession or causing unnecessary harm to consumers and businesses.
The Fed signaled that just one more hike may be in the cards this year. This is a departure from Powell’s previous indications that the central bank might have to raise rates higher than expected, and keep them higher for longer, to get prices under control.
This article from Money gives you a lot of what you need to know.
Recent bank turmoil can cause credit crunch
The banking crisis has sparked concerns that a credit crunch is coming to the U.S.
This means that banks will become stricter in extending credit, resulting in the inability of households and businesses to get the loans that they might need.
Crypto assets must be reported on tax returns like any other property when they are sold.
As AS USA's Greg Heilman tells us, if you take a loss when selling, it may offset your tax burden.
Farmers and ranchers who want to start a farm or expand one but have been unable to obtain financing from banks or other commercial credit sources may apply for a loan from the government.
There are also some grants available for rural Americans seeking other forms of financial assistance.
For working California residents who don't have a Social Security number, there is now a way for you to avail of California Earned Income Tax Credit (CalEITC).
AS USA's Oliver Povey tells us how.
Wall Street ends volatile week in the green
Investors appear to have been appeased by U.S. Federal Reserve officials as Wall Street ended the week higher.
The positive close to a turbulent week came as markets have been rattled by worries that banks are weakening under the pressure of elevated interest rates.
California is trying to make sure food produced and sold in the state is healthier. The government is looking to ban five common chemicals for their use in food, including all goods sold, distributed or made in the state.
AS USA's Oliver Povey tells us about new legislation that has been introduced that would ban a number of ingredients linked to risks of cancer and learning difficulties.
California residents with limited income may be eligible for Earned Income Tax Credit (CalEITC), which offers support for low-income, working residents of the state.
What is the maximum credit that qualified taxpayers can receive?
The federal and state program provides health coverage to tens of millions of Americans, being the largest source of coverage in the country.
Medicaid is a health insurance program that is funded jointly by federal and state governments which strives to help low-income individuals have access to healthcare.
Although the federal government sets some basic ground rules, each state can choose whether to offer more healthcare services than those mandated.
More on the Affordable Care Act and the income bracket to qualify for Medicaid from our report.
As the US job market continues to evolve, certain professions have become increasingly popular due to various factors, including changing demographics, evolving societal needs, and rapid technological advancements.
In this article, AS USA's David Nelson explores some of the most in-demand professions in the U.S., their average annual gross salaries, job descriptions, estimated number of professionals in the country, average age of those professionals, gender breakdown, average retirement age, and reasons for their high demand in the current job market.
Is it your dream to have a four-day workweek? There have been questions surrounding equity and access to the benefit, but now the results are in.
As AS USA's Maite Knorr-Evans tells us, 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.
Unemployment rates down in February in nine states
The U.S. Bureau of Labor Statistics reports that unemployment rates were lower in February in nine states, higher in three states and the District of Columbia, and stable in 38 states.
Thirteen states had jobless rate increases from a year earlier, 10 states and the District had decreases, and 27 states had little change. The national unemployment rate edged up to 3.6 percent but was 0.2 percentage points lower than in February 2022.
Non-farm payroll employment increased in six states and was essentially unchanged in 44 states and the District of Columbia in February 2023.
If you’re a California resident and were affected by the recent winter storms, you may qualify for an extension to file individual and business tax returns.
The IRS and the California government have announced tax relief for residents who were affected by winter storms in recent months. The government is automatically extending the tax filing and payment due dates to Oct.16, 2023 for those who are qualified.
Here's the list of California countieseligible for tax relief.
The US and state tax agencies offer certain tax credits to filers that can result in thousands added onto a 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.
AS USA'S Greg Heilman gives us a look at the eligibility requirements and how much you can receive.
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.
Student loan borrowers are allowed to deduct up to $2,500 in interest they have paid on their tax returns each year. They key word there being “paid”.
AS USA's Greg Heilman tells us why claiming a student loan interest deduction on taxes is a little more complicated this year.
Depositors pulled out $100 billion from banks
Federal Reserve data showed that bank customers collectively pulled $98.4 billion from accounts for the week ended March 15, the period during which Silicon Valley Bank and Signature Bank failed, according to CNBC.
Officials at the Financial Stability Oversight Council held a closed-door meeting and insisted that the system “remains sound and resilient.”
The Council added that they discussed ongoing efforts at member agencies to monitor financial developments.
Largest US banks tell staff not to make banking crisis worse
Reuters reports that the largest banks in the US including JPMorgan Chase, Citigroup Inc and Bank of America warned employees not to make the ongoing banking crisis any worse. Staff were told not to poach clients from smaller financial institutions under stress and not to discuss the ongoing troubles at competitors with potential clients.
"We do not make disparaging comments regarding competitors," JPMorgan advised employees in a memo Reuters had access to. "Never give the appearance of exploiting a situation of stress or uncertainty."
This came after two banks collapsed and other regional banks were put in distress as depositors pulled out their money over worries that their funds would not be protected that exceeded FDIC insurance coverage. U.S. regulators have scrambled to reassure the American public that the banking system is safe and implemented emergency measure to shore up confidence.
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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.
Additionally, the Fed’s projections do not provide insights into how these various groups will be impacted by increases in unemployment spurred by rate hikes.
Nobel Prize-winning economist, for those value mainstream credentials Joseph Stiglitz, has warned that young men of color, a group whose unemployment rate is already higher than the national average, could see worklessness rise by anywhere between 15 to 20% given where the Fed has set interest rates.
Read more on how high the Fed believes unemployment could rise and the response from political leaders on the central bank's continued rate increases.
MARY F. CALVERT / REUTERS
Wall Street struggles in the red as concerns continue over banking sector and possible recession
After three days of testimony on Capitol Hill in front of lawmakers, Treasury Secretary Janet Yellen’s assurances that the banking sector was secure and comments from other key US officials failed to completely convince investors. All three major Wall Street indexes started the day in the red and struggled to make it into positive territory.
Secretary Yellen allayed fears that the US government wasn’t considering guaranteeing all deposits with her testimony saying: "We have used important tools to act quickly to prevent contagion. And they are tools we could use again... Certainly, we would be prepared to take additional actions if warranted." However, the mood has once again soured as investors fret about banks’ liquidity becoming a problem limiting lending and throwing the economy into a severe recession.
In a 2020 report, the Texas Workforce Commission (TWC) projected that between 2018 and 2028 the Lone Star State would add around 1.7 million new jobs.
However, many of the fastest-growing careers in Texas have far surpassed the local supply according to the TWC which means excellent opportunities for those job-hunting with the right qualifications or trying to decide which future career path they should take.
The fastest-growing careers in Texas reflect several of those that will be in demand nationally such as software developers, financial managers and nurses, all of which will see growth over 30 percent.
Here’s a look at the most in-demand jobs in Texas over the coming years.
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.
Tax support: know your options
The Interactive Tax Assistant (ITA) is a tool that provides answers to several tax law questions specific to your individual circumstances.
Based on your input, it can determine if you have to file a tax return, your filing status, if you can claim a dependent, if the type of income you have is taxable, if you're eligible to claim a credit, or if you can deduct expenses.
Check it out!
Daily finance news: welcome
Good morning! Welcome to the AS USA finance news live blog for Saturday, March 25, 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 along with other financial news of the day.
With just a few weeks 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.