Checks inflation relief: California, Florida... | IRS Tax Brackets & SSA | Summary news 21 October
Inflation relief: live updates
Headlines: 21 October 2022
- A guide to all inflation relief checks going out across the country
- Key dates for the inflation relief check in California
- Social Security recipients could see on average $1,752 more in 2023 thanks to the COLA
- IRS publishes new tax brackets income levels for 2023, standard deductionfor seniors gets a boost
- A record number of taxpayers requested an extension this year
- California to offer gasoline relief as residents pay $2.00 more per gallon compared to other states
- States move to count the amount forgiven in student loans as taxable income
- The biggest COLA increases in US history: 8.7%
Related news:
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Despite student debt relief being one of the most well-known campaign promises made by Joe Biden, he remained vague on the specifics until taking office. Many had hoped that he would enact his program soon after entering the White House but, aside from extending the pre-existing moratorium, it took him 18 months to pass a forgiveness package.
Biden spoke to student at Delaware University on Friday to provide an update on the initiative, but how many people will benefit from the Student Loan Forgiveness program?
For those with higher incomes, opening a 401(k) can lower total taxable income because the funds that are allocated to the account are subtracted from their gross income. For some, this can be used to place them in a lower tax bracket, meaning that they will be charged a lower rate overall.
Here's everything you need to know about options for 401K plans
Judge blocks attempt to reverse loan forgiveness
Earlier this month President Biden's long-awaited student loan debt forgiveness plan went live, allowing an estimated 95% of borrowers to get money off their outstanding balance. However that move was not universally popular and a number of Republican-led states have attempted to prevent the support being actioned.
However on Friday a St Louis judge blocked their attempt to halt Biden's initiative, although other challenges are expected across the country. It seems unlikely that courts will move to block the proposals but it could rise all the way to the Supreme Court if the GOP continue to challenge.
When will my California inflation relief check arrive?
The MIddle Class Tax Refund will see individuals in California receive up to $1,050 to help address the rising cost of living. The first wave of payments was sent out earlier this month and the process will continue until January 2023, by which point all eligible residents should have had theirs.
There are three main pillars of the payment structure, which are as follows:
- Californians who received Golden State Stimulus: 7 - 25 October 2022.
- Remaining direct deposits: 28 October - 14 November 2022.
- Debit card payments: 17 December - 14 January 2023.
The energy crisis and inflation are spreading more and more. The latest to speak about these tough times for the economy has been the founder of Amazon, Jeff Bezos, who has warned that even more difficult times are ahead.
Bezos published a tweet last Tuesday night in which he commented on the economic assessments that the CEO of Goldman Sachs, David Solomon, made to the CNBC network.
“I think it’s time to be cautious, and I think if you have a risk based business [...] it’s time to think more carefully about your risk box,” said Solomon.
Read more on what the former Amazon CEO said about the risks of a recession.
Revlon to be removed from stock exchange
The New York Stock Exchange has released a statement that the beauty company Revlon will be removed from its list of stocks. The company declared bankruptcy earlier this year and is just one of a few major "zombie companies" whose debt had grown so large that, given their revenue and future profits, they would never be able to get out from under it.
In 2020, the company began to show signs of distress. Revlon officials said the company would try and save anywhere between $200 million to $230 million and that the main funding mechanism was worker layoffs.
Real wages have decreased over the last year
The Bureau of Labor Statistics has released new figures on real wages, showing a three percent decrease since last September. Real wages are adjusted for inflation to provide a data point on how purchasing power differs from year to year.
These numbers come as employers blame high wages and consumer demand for inflation. However, this data shows that wages in real terms are losing value rather quickly.
The IRS has relased new tax brackets and adjustments to deductions that will go into effect in 2023.
Social Security recipients will be receiving a notice from the Social Security Administration during the month of December to inform them of the cost-of-living adjustment (COLA) increase to their benefits in 2023. The average retired worker will see a monthly benefits payment of $1,827 an increase of $146. That will translate into an extra $1,752 over the course of next year.
Unfortunately, the IRS doesn’t use the same inflation figures to calculate their adjustment to income thresholds, standard deductions and credit amounts. Most taxpayers over 65 will only be able to take an additional $1,500 through the standard deduction when they file 2023 tax returns in 2024. Not to mention those increased benefits could get taxed at a higher rate.
Read more in our full coverage.
Great news: Thanks to POTUS, the application for federal student loan debt relief is now available, and millions of working-and middle-class folks are eligible. Take a few minutes to apply today:
https://studentaid.gov/debt-relief/application
Finally President Biden's widespread student loan forgiveness initiative has now gone live. The White House announced in August that Pell Grant recipients could get up to $20,000 discharged on their federal student loans, non-Pell Grant recipients as much as $10,000.
The measure applies to individuals that made less than $125,000 and families that earned $250,000 in either 2020 or 2021, roughly 40 million borrowers.
California Gov. Gavin Newsom supports windfall tax on oil and gas companies
Govenor of California, Gavin Newsom, announced his support for a windfall tax on oil and gas companies.
This tax would be tacked onto additional profits made by oil and gas producers in the US that go over and above what they earned last year. This decision comes as gas prices in the Golden State have raked in record profits.
The revenue collected through the new tax, if passed into law, would distribute the funds back to drivers in the state.
The White House announced a forgiveness plan knocking up to $20,000 off the debt burden of those with a student loan debt. A White House report said that 95% of student debt borrowers would benefit from the forgiveness, while close to 45% of recipients would see their debt written off entirely.
Here's how to make the most of the student loan forgiveness.
President Biden announced the official launch of his administration’s Student Loan Relief Forgiveness application. The Beta version of the online form went live on Friday and borrowers flocked to get their requests in. Over 8 million Americans signed up in the first three days to get their federal student loan debt canceled during the short trial period for the online portal.
The White House announced in August that Pell Grant recipients could get up to $20,000 discharged on their federal student loans, non-Pell Grant recipients as much as $10,000. The measure applies to individuals that made less than $125,000 and families that earned $250,000 in either 2020 or 2021, roughly 40 million borrowers.
Last spring as gas prices spiked a handful of states imposed gas tax holidays,some have since extended them.
Here’s a look at where they are in effect.
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Several US states have approved sending tax refunds or stimulus checks as relief from high prices.
These checks, some of which are going out in Republican-led states, come as many GOP leaders have tried to blame high inflation on stimulus checks Democrats passed in Congress in March 2021 through the American Rescue Plan.
Homebuyers are not only struggling with high purchasing costs, but high mortgage rates as well driven by Fed rate increases to squash inflation. Here’s where mortgage rates are today.
The SSA announced a record cost-of-living increase for 2023, but the average beneficiary won’t be able to deduct the whole amount when filing taxes.
The Social Security Administration announced the 2023 COLA on 13 October and the boost was a doozy. Great news for those that are finding their monthly checks not going as far in the face of rising prices. Bad news for those that will break the income thresholds where a portion of their benefits are liable to taxation.
Before 1984, Social Security benefits were not taxed. However, to keep the Trust Fund that supports the program solvent, bipartisan legislation was passed totax a portion of payments to seniors citizens, surviving spouses, and the disabled if they had income above certain thresholds.
“Inflated costs for everyday necessities have forced many to cut corners or make impossible choices, and pain at the pump has been compounded by the return of the commute for many Californians.
"As the holidays approach, my team members are thrilled to be able to get these payments into the hands of those who have been struggling, so they can enjoy a measure of relief.”
“We know it’s expensive right now, and California is putting money back into your pockets to help. We’re sending out refunds worth over a thousand dollars to help families pay for everything from groceries to gas."
California has begun issuing inflation relief payments. Golden Staters will receive the payment via direct deposit or debit card. Here’s when to expect them
Disabled veterans and military retirees will see their monthly checks get a boost in 2023. The Social Security Administration announced the biggest cost-of-living adjustment since 1981 after the September 2022 inflation report was released.
Military pensions and disability payments, like most other similar government payments, are required by law to use SSA calculation to keep benefits in line with rising prices. Starting in January 2023, an 8.7 percent increase will be applied to monthly payments surpassing last year’s 5.9 percent bump.
Households across the nation reeling from rising prices that receive Social Security benefits will get a big boost to their finances come the new year. The Social Security Administration announced its 2023 COLA and it was a whopper. At 8.7 percent, it is the fourth largest in the history of the annual cost-of-living adjustments and the biggest since 1981.
The average recipient of retired worker benefits will see a monthly payment of $1,827 an increase of $146. That will translate into an extra $1,752 over the course of 2023. The Social Security Administration will begin sending out notices in the mail to beneficiaries of exactly what their monthly payments will be next year.
Hello, and welcome to AS USA
Hello, and welcome to AS USA's blog on inflation relief payments. We’ll keep you up to date on measures that have been approved in states around the US to help residents cope with the high price of food and gas.
The Social Security Administration announced a historic cost-of-living adjustment increase for 2023 of 8.7% which will give beneficiaries around the nation a much needed boost to monthly payments. The 2023 COLA will affect pensions for other government workers and VA disability benefits too.
While there is no nationwide direct payment nor tax rebate to help Americans cope with inflation, some state initiatives have already been sent out and others are just making their way to residents.