USA finance and payments live updates: gas stimulus check, tax deadline, Child Tax Credit, tax refunds...
Money and Finance: Latest Updates
Headlines 7 April 2022
- Taxes are due on 18 April but extensions are still available, as the deadline gets close the IRS will be offering in-person support to taxpayers.
- Budget proposed by the White House would increase taxes for top earners and corporations in the US
- To offset rapidly increasing gas prices, California Gov. Gavin Newsom released a proposal that would make public transit systems free and provide $400 to drivers across the state.
- Price increases have placed significant strain on households in the US leading many to apply for SNAP benefits.
- The White House’s extension of the student debt moratorium has renewed calls on President Biden to cancel the debt.
Information and Useful links
- 2022 Tax Brackets: a guide
- Applying for Social Security Disability Insurance, step by step
Holders of foreign bank and financial accounts must file an FBAR by 15 April
Holders of foreign bank and financial accounts must file their annual Report of Foreign Bank and Financial Accounts (FBAR) by the 15 April deadline. The Bank Secrecy Act requires US citizens to file an FBAR if they have "financial interest in, signature authority or other authority over one or more accounts, such as a bank account, brokerage account, mutual fund or other financial account in a foreign country, and the aggregate value of all foreign financial accounts exceeds $10,000 at any time during the calendar year".
US individuals or entities who hold foreign bank accounts, even relatively small ones, are encouraged to check if this filing requirement applies to them.
The FBAR must be filed electronically with the Financial Crimes Enforcement Network (FinCEN) and is only available through the BSA E-Filing System website. Those who miss the April deadline will receive an automatic extension until 15 October 2022, to file the FBAR
US jobless claims fall by 5,000 to 166,000
Jobless claims in the United States fell by 5,000 to 166,000 (seasonally-adjusted initial claims) for the week ending 2 April, the US Labor Department announced in a statement on Thursday. The previous week's level was revised down by 31,000 - from 202,000 to 171,000. The four-week moving average was 170,000 - a decrease of 8,000 from the previous week's revised average.
Meanwhile, the advance number of actual initial claims under state programs, unadjusted, totaled 193,137 in the week ending 2 April - a decrease of 3,674 (or -1.9 percent) from the previous week.
In 2019, 53 million workers paid twelve percent of their incomes to the IRS, representing the largest tax bracket. The smallest bracket was the thirty-seven percent group, of which only around 871,748 returns were received.
However, in the same year, the largest number of returns, twenty-two million, was received by those between an income of $50,000 and $75,000. Closely behind this group were those making between $100,000 and $200,000 a year, of which twenty-one million returns were submitted to the IRS.
Read our full coverage for information on how to idnetify your tax bracket.
Which sectors saw the greatest increase in employment in March?
Of the more than 431,000 jobs added in March 2022, more than 100,000 were added in both the leisure and hospitality and the professional and business services sector.
Other industries that saw notable increases were trade, transportation, and utilities, and manufacturing.
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As drivers in California see the highest gas prices in the country, Governor Gavin Newsom has sent a proposal to the legislator that would provide direct relief to all households.
For those who do not drive or are interested in using their car less, the bill would make ridership on public transit systems free for three months.
The proposal includes a $400 rebate for up to two cars for each household. If the bill passes, the payments could be sent as soon as July.
Read our full coverage for details on eligibility.
IRS will offer in-person support to tax payers
After two years, the IRS will be offering in-person assistance in many cities across the US as the tax deadline approaches. The tax authority recommends that that these seeking health bring their governmetn issued ID as well as any letters or notices from the IRS.
Are appointments needed?
No, those who are interested in seeking assistance can stop by anytime between 9 AM and 4 PM.
What cities will have Tax Assistance Centers?
A full list can be found on the IRS website.
The IRS adjusts tax provisions and tax brackets every year to account for inflation to avoid what is known as “bracket creep.” The percentages that Americans are taxed in the seven tax brackets remain the same, but income level thresholds that determine which one you fall into have been raised.
The adjustment announced by the IRS last year affects more than 60 tax provisions and took effect 1 January 2022.
Amazon organizer discusses his strategy
If I can lead us to victory over Amazon, what's stopping anybody in this country from organizing their workplace? Nothing. You know, people got to get out of that mentality of, Oh, let me just quit my job. Because when you quit your job, guess what? They hire somebody else. So you're jumping from one fire into the next, and the system doesn't get fixed by doing that.
So we, as workers, the working class, we got to realize our value. If we don't go to work, these CEOs don't make their money. So if workers can realize that no matter where you work in this country, what you're doing, then you will realize that you can form something that can collectively bargain.
Could more Amazon workplaces become unionized?
Staff at more than 50 Amazon warehouse across the US have been in contact with the leaders of the first successful unionization of a warehouse to date. Last week, a warehouse in Staten Island, New York became the first with its leader Chris Smalls. Amazon spent $4 million in advertisements to stop the move, but the corporation was defeated.
There is hope for workers across the US that this will be the start of further unionization efforts at Amazon.
“The choice to join a union belongs to workers alone,” Biden said in remarks at the national conference of North America’s Building Trades Unions. “By the way, Amazon, here we come. Watch.”
Annually, the Social Security Administration (SSA) increases monthly SSI payments to match inflation to avoid the negative impact on beneficiaries when inflation rates are high. This equalisation process is known as the Cost of Living Adjustment (COLA).
In 2022, the COLA increase was 5.9 percent, which translates into average monthly payments of $1,657 for individuals and up to $2,753 for couples.
High inflation likely to persist in US economy
“We may be on the cusp of a new inflationary era,” said Agustín Carstens, general manager of the Basel, Switzerland-based Bank for International Settlements (BIS), which bills itself as a “bank of central banks.”
“New pressures are emerging, not least from labour markets, as workers look to make up for inflation-induced reductions in real income. And the structural factors that have kept inflation low in recent decades may wane as globalization retreats.”
These comments come as a reaction to the unfolding outcomes of the war in Ukraine, which have starved the world of food and cut off one of the biggest countries from much of the world's trade. Increasing costs of fuel and gas push up operating costs, making all goods more expensive.
The Social Security Administration oversees two key programs that provide financial support to Americans with disabilities. Social Security Disability Insurance and Supplemental Security Income are both available to individuals who meet certain medical criteria but have differing requirements to qualify.
What has the IRS said about in person support?
We designed these extra weekend hours to make it easier for taxpayers to resolve an issue, inquire about their account or work with the IRS if they have an obligation they cannot meet. Whatever the case, face-to-face help will be available on this special day without an appointment.
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For the first time in two years, the IRS will be available to provide support to taxpayers in person. The tax agency will be establishing Taxpayer Assistance Centers around the country on Saturday 9 April.
The pandemic has limited the tax authority’s agency’s ability to support taxpayers and many, especially those who will not be able to file electronically, are looking forward to seeing in-person support return.
Need more information on the upcoming end of the tax filing season?
You have under two weeks to submit your returns to the Internal Revenue Service (IRS) for tax season 2022.
The filing deadline for 2021 tax returns or to request an extension to file is Monday, 18 April for most taxpayers. Filers have until the end of that day to submit their returns.
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President Biden has released a new tax proposal that would increase taxes for some of the richest Americans. The proposal comes as the administration begins to consider what funds will be needed for the next fiscal year to continue working on President Biden’s agenda which has stalled significantly.
The war in Ukraine has derailed discussions on domestic policy and inflation caused by corporate profiteering and continued supply chain disruptions from the pandemic and the Russian invasion are having severe impacts at the household level.
WATCH: Biden announcement on student loan pause
Back in March 2020 Congress passed the CARES Act, legislation designed to offer short-term financial relief in the face of the mounting scale of the covid-19 pandemic. This bill was responsible for the initial pause on the vast majority of student loan repayments (those related to federally-held student loans).
The moratorium not only halted the repayments, but prevented an interest being accrued and banned any collection efforts against borrowers who already owed back-payments for outstanding student loans.
Price of first class stamps to increase
President Joe Biden on Wednesday signed legislation to provide the Postal Service with around $50 billion in relief river the next decade. Since 2007, the organization has made losses of more than $90 billion. It was expected that debt could be racked up by a further $160 billion without this support.
"The Postal Service is central to our economy and central to rural America," Biden said at a White House ceremony.
The price of a first-class stamp will rise from 58 cents to 60 cents.
Will student loans be cancelled?
Throughout the pandemic the federal government has placed a pause on the collection of student loan repayments to ease the financial burden on Americans. An announcement was made on Wednesday with the student loan pause extended until 31 August. Previously, the moratorium was due to come to an end on 1 May.
It is thought that around 40 million people will directly benefit from the extension of the moratorium.
Welcome to AS USA
Good morning and welcome to AS USA's daily live blog on the latest financial news in the US.
The deadline for Americans to file their 2021 federal tax return or request a six-month extension is fast approaching. Most US taxpayers have until 18 April to submit their 1040 Form with the IRS. Likewise, most states require residents to file state income tax returns on the same day.
Those that ask for an extension will have until 17 October 2022 but must pay any taxes due by April deadline.
We'll also be looking at the state of gas prices in the country and the possibility to replace the Child Tax Credit, among other fiancial news coming out of DC and around the nation that could affect your pcoket book.