Tax deadline 2023 news summary | 26 March 2023
US Finance: latest updates, Sunday, March 26, 2023
- Federal Reserve signals that there may be just one more interest rate hike this year
- Initial unemployment claims fell by 1,000 to 191,000 last week
- Bank of England and the US Federal Reserve both announced interest rate hikes 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
-How to claim CalEITCwithout a Social Security number
- 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 do if your claim for EITC is denied
Rent prices have been increasing for Americans at incredibly high rates since the beginning of the covid-19 pandemic. Analysis by Redfin showed prices increased by 14.1% over the year in 2021 and 7.45% in 2022. With real wages falling by 1.3% in the last year there is an intense squeeze on purse-strings.
AS USA's Oli Povey has a look at the US's most expensive state for renters: California.
If you were born in 1954 and before your full retirement age is 66. This means there are no penalties for these folks, but if you are born after this date you will need to wait longer.
If you hit full retirement age at 66 then the average monthly check you will receive is $3,627 per month.
How to claim the EITC and the Child Tax Credit
The EITC is a federal tax refund that is fully refundable, meaning if your tax burden is reduced to $0 then the IRS will pay you the difference. It can be worth nearly $7,000 if all the requirements are met. While having a family increases the amount that can be claimed it isn’t specifically targeted towards them.
The CTC is worth up to 15% of your income, up to $2,000, but is not fully-refundable. It phases out at a much lower level compared to the EITC and is meant for helping nearly all working families with raising children.
Accessing one does not restrict taxpayers from claiming the other.
With the filing of a tax return there is an expectation that there will be a refund. Indeed, three in four Americans will get refunds from their taxes this year. The size of this is determined by myriad factors, but one of the surest ways to a get a reduction or refund is to qualify for tax credits.
Two of the largest available for families are the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC). Both credits are designed to support people and families that are in work.
You submitted your federal tax return early, and received a message from the IRS congratulating you, saying your return had been "accepted". You quickly check the IRS site to see if your refund is on its way, only to find out that your tax return had not yet been "approved".
Our report tells you more about the difference between these two terms as far as federal tax returns are concerned.
IRS encourages electronic filing of tax returns
The Internal Revenue Service wants taxpayers to file tax returns electronically.
There are several options you can take, including using IRS Free File or Fillable Forms, using a free tax return preparation site, getting help from the IRS Volunteer Income Tax Assistance, and using commercial software.
Paying off a student loan is a financial burden for many, and the interest paid on it could be deducted from your tax return.
But as AS USA's Greg Heilman tells us, the process for doing so is a little more complicated in 2023.
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.
After a highly publicized takeover of Twitter in October where he shelled out approximately $44 billion, Elon Musk finds himself at the helm of a social media platform that has a valuation of less than half what he paid for it.
10 cheapest states for retirement
If you are considering retirement and have concerns about money, Florida may not be the best destination for you. There are a few more states that have a lower cost of living.
According to WalletHub, a personal finance website, the ten cheapest states in which to retire are the following:
1. Alabama
2. Tennessee
3. West Virginia
4. South Carolina
5. Wyoming
6. Delaware
7. Georgia
8. Arkansas
9. Florida
10. Mississippi
If you’re a California resident hit by 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.
Already thinking about your tax refund?
If you are anticipating a tax refund, making sure you receive it as soon as possible will help you get back those much-needed dollars.
Direct deposit is the safest and most convenient way to receive a tax refund. The IRS encourages taxpayers to file as soon as they are ready and choose direct deposit to receive any refund they may be owed.
There are a few more weeks to go to file your tax returns on time. Make sure you've paid all the taxes you owe to avoid penalties.
AS USA's Oliver Povey gives us various ways to make payments to the IRS.
Deutsche Bank shares have tumbled after the cost of insuring the bank's debt against the risk of default rocketed to more than four-year highs, highlighting concerns among investors about the stability of Europe's banks.
Germany's largest bank has seen $3 billion erased from its market value in the space of just a week.
However, some quarters say it will not go the way of banks which recently failed.
"We have no concerns about Deutsche's viability or asset marks. To be crystal clear - Deutsche is NOT the next Credit Suisse," a report from Autonomous, an independent researcher, said.
According to a Bloomberg report, the downward slide of the bank has been attributed to hedge funds taking advantage of the volatility in the financial sector.
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.
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.
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.
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.
The California Earned Income Tax Credit program offers support for low-income, working residents of the state. CalEITC aims to lower the income tax they need to pay, and help qualified workers get tax refunds.
A working family or individual with an income of up to $30,000 a year may be eligible for CalEITC up to $3,417 for tax year 2022. The amount you are entitled to will depend on your income and family size.
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.
Daily finance news: welcome
Good morning! Welcome to the AS USA finance news live blog for Sunday, March 26, 2023.
We’ll be providing you with updates on inflation relief measures in the U.S., and keep you posted on the latest developments involving the banking crisis, 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.