USA finance and payments | $2,753 monthly check, tax deadline, gas stimulus check | 8 April
Money and Finance: Latest Updates
Headlines 8 April 2022
-Various states pass or propose bills to offer gas stimulus checks and rebates to residents.
- Leaders around the world follow President Biden's lead and release strategic oil supplies to lower gas prices
- 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
- Federal child support: an introduction
- Applying for Social Security Disability Insurance, step by step
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Walmart offering $110,000 pay for truck drivers
This week, Walmart announced that they would be offering attractive pay rises to its Private Fleet truck drivers. Under the new Fleet Development Program, Walmart drivers can now make up to $110,000 in their first year with the company. Meanwhile drivers who have been with Walmart longer can earn even more, based on factors like tenure and location. Interested applicants can find out more at drive4walmart.com.
Secure Act 2.0 heading to the Senate
At the end of March, the House voted 414-5 in favour of the Secure Act 2.0 - a new retirement act which includes provisions to boost the required minimum distribution (RMD) age from 72 to 75 by 2032. First it must get past the Senate and be signed off by President Biden.
Participants will be automatically enrolled into the retirement plan when they become eligible, though employees will be able opt out of this coverage. The automatic enrollment amount starts at a minimum 3% of salary but no more than 10%, followed by a 1% increase each year until it reaches 10%. There is an exception to this requirement pertaining to small businesses with 10 or fewer employees, new businesses (those less than three years old), church plans and governmental plans. Meanwhile students who are paying off loans will receive help to build up their pension pot and older citizens will have a chance to top up their contributions with in catch-up payments.
In 2022, the Office of Child Support Enforcement within the US Department of Health and Human Services managed around thirteen million cases across the country. The agency found that in 2017 “Among those [parents] who have a child support order, 58% received child support payments [... and] received an average of $5,381.”
Read our full coverage for details on what documents are typically needed to settle a child support case.
While Congressional leaders have dragged their feet in passing a proposal to offset the costs of surging fuel pries, some states have passed laws and made other changes to support households. Leaders in states including that California, Georgia, Hawaii, Idaho Indiana, Maine, Minnesota, New Jersey, New Mexico, and New York have released proposals to support households in offsetting fuel costs.
Read our full coverage for more details on these plans.
Every year millions of custodial single parents across the United States claims child support payments from the child’s other parent, helping to cover the cost of bringing up children.
Child support is a monthly payment, defined by a court, which the non-custodial parent is legally required to pay to the custodial parent. The term ‘custodial parent’ refers to the parent who cares for the child on the more regular basis and who therefore faces the related costs.
The payments are designed to cover the cost of daily necessities, such as food, clothing, housing and medical bills. Read more.
Child Tax Credit expiration forced families out of the workplace
The Child Tax Credit was expanded last year by a provision in the American Rescue Plan, which provided monthly payments for the first time. The new-look programme was linked to a sharp decrease in childhood poverty and was credited with allowing parents to return to the workplace, as they had enough money to cover the cost of childcare.
However that programme came to an end after the December 2021 payment and it now appears that the number of parents in work is falling as a result.
There's little over a week to go until tax filing day 2022, the date by which you have to submit your tax return to the IRS to avoid being hit with late fees and potentialy missing out on forms of financial relief. The deadline this year is 18 April. If you're not sure which tax bracket you fall into, here's everything you need to know...
How can I check eligibility for the Earned Income Tax Credit?
The Earned Income Tax Credit (EITC) could be worth thousands of dollars a year for eligible families, but not everyone is yet aware that they could be able to claim the support. The EITC is another programme that requires individuals to claim it on their tax return and is designed to provide assistance to low- and middle-income households.
To see if you are eligible, head over to the IRS website to check your entitlement...
Social Security is the most widely received form of federal benefits payments and the support is a vital source of income for tens of millions of Americans every month. The Social Security Administration (SSA) issues millions of payments to beneficiaries of the program, including retired Americans - working and disabled individuals - as well as their spouses, widows, widowers, and Supplemental Security Income (SSI) recipients.
It was announced last year that the monthly payments would be increasing by a significant amount to mitigate for the price rises of the previous 12 months. Here's what that could mean for you...
Why have gas prices risen so much?
Price rises have been seen in almost all sectors during the pandemic and the subsequent economic recovery, but few areas have seen increases as high as gasoline in recent months. The combination of high inflation and the various economic sanctions levied against Russia have undoubtedly had an impact on gasoline prices.
However the big oil companies have also recorded massive profits in the past year, fueling suggestions that they have used the unique circumstances to fatten their profit margins.
Biden confirms global effort to lower gas prices
In recent months the price of gas around the world has soared, in response to sanctions against Russia and the general prices rises across the board. This has caused major problems from consumers and motorists in the United States have been experiencing pain at the pump. President Biden has sought to bring down the cost by releasing a considerable amount of oil from the US' strategic reserves, which is designed to counter periods of low supply. Biden has also confirmed that other nations around the world are following that method, in the hope of bringing gasoline down to a more managable level.
Are you eligible for the Earned Income Tax Credit?
The Earned Income Tax Credit (EITC) is one of the most valuable federal relief programmes on offer to low- and middle-income Americans every month, but millions of eligible families do not realise that they are missing out on their full entitlement. Lawmakers have been pushing the IRS to raise awareness of the programme before the end of tax season 2022, which comes to a close on 18 April.
The Supplemental Nutrition Assistance Program (SNAP) is funded by the federal government but is administered by the individual states, who typically work with local agencies and charities to offer additional education and training to recipients.
But while SNAP is organised on a state level, the eligibility requirements are the same throughout the country.
Regardless of where you live the Social Security Administration will send beneficiaries of Social Security Disability Insurance and Supplemental Security Income the same amount, all things being equal. Benefits for each are based on the recipient’s work history or need.
Depending on where you live, your state may provide a booster to Supplemental Security Income payments with the amount ranging from tens of dollars to hundreds more each month.
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While social security may be getting a boost, help is needed for consumers to pay for fuel in California. Shattering previous records, the average price of a gallon of gasoline hit $5.80 last week. The price is up more than two dollars from the $3.76 figure consumers saw this time last year.
In response to these increases, Governor Gavin Newsom has proposed a legislative package that would provide direct relief to families across the Golden State.
Social security benefits boosted in California
Residents in the state of California, even some non-US citizens, have access to a number of programs to ensure that their welfare is looked after. Due to the covid-19 pandemic some new programs have been set up to provide extra protection to Californians in need.
The Supplemental Nutrition Assistance Program, better known as SNAP, is a federal programme to help low-income families and individuals to purchase food using Electronic Benefit Transfer (EBT) cards in authorized stores.
The US Department of Agriculture (USDA), which manages the program, has more than 9.3 million households and over 21 million people who received SNAP benefits in August 2021, 1 in 7 of all families.
Each month, the Social Security Administration (SSA) issues millions of payments to beneficiaries of the program, including retired Americans - working and disabled individuals - as well as their spouses, widows, widowers, and Supplemental Security Income (SSI) recipients.
Annually, the 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 per cent, which translates into average monthly payments of $1,657 for individuals and up to $2,753 for couples.
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.
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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For the vast majority of taxpayers in the US, taxes are due on Monday 18 April.
The IRS marks a return as “filed on time” so long as “the envelope is properly addressed, postmarked, and deposited in the mail by the due date.” For those that file electronically, the return must be submitted through the online portal by midnight on the deadline.
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.
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
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.