USA finance, taxes and payments live updates: $2,753 monthly check, tax deadline 2022, gas stimulus check...
Financial News Headline | Wednesday 13 April
- Consumer prices increased on average 1.2 percent in March, for a year over year 11.2 percent surge in prices, shattering records
- California leaders propose a 32-hour workweek, what would be the impact?
- Various cities offer cash incentives worth up to $10,000 for workers to move there.
- Support for a universal basic income for children worth $1,000 a month is growing
- Working to lower gas prices, President Biden plans to announce a waiver on a summer ethanol ban.
- Could a $2,753 monthly check be coming to those on Social Security?
Helpful information on tax season & more
Tax Deadline: 18 April 2022
- When is the last day to file the documentation?
Housing Market
- Institutional investors helped to drive housing prices upeighteen percent in 2021
- Mortgage rates set to increase to five percent this year, effectively ending the low-rate era
There have been three federal Economic Impact Payments, better known as stimulus checks, in the US over the past two years.
Four hundred and seventy-three thousand manufacturing jobs have already been created on the President’s watch. He wants to build on that success by passing the Bipartisan Innovation Act to create — to create more good-paying jobs and lower prices for working families.
Amazon to add 5 percent fuel and inflation surcharge to sellers
On Tuesday the Bureau of Labor Statistics reported that over the last twelve months inflation has increased 11.2 percent, shattering records. In response to increasing prices, the global e-commerce giant, Amazon, plans to charge US sellers a five percent surcharge. This new cost could make products more expensive for consumers if retailers choose to pass the new surcharge along to them.
Gas prices rose dramatically in March and with the oil markets unlikely to stabilize in the coming months President Biden announced that “to bring down the prices and address the Putin price hike,” his administration was taking new steps to address the situation.
In particular to deal with high gas prices, in addition to the previously stated release of 180 million barrels of oil from the US strategic reserve over the next six months, the Environment Protection Agency (EPA) will issue a waiver for the use of E15 gasoline this summer.
Has rising inflation finally peak? Brighter days may be ahead
Looking at the latest inflation data Chief Investment Officer for Cresset Captial Jack Ablin sees inflation having peaked in March. Looking at indicators for future inflation it appears that inflation will begin to slow in the coming months. Buyers in past months were purchasing more to acquire goods before their cost rose, but are now holding back, indicating that there is an expectation that prices will be reducing in the coming months.
Secretary Yellen warns against undermining sanctions on Russia
US Treasury Secretary Janet Yellen spoke at the Atlantic Council, a nonpartisan US think tank, on Wednesday about the spike in costs for food and fuel worldwide, that have been exacerbated by the Russia's invasion of Ukraine.
Yellen appealed to China to help end Russia's agression and sent a stern warning against any attempts to undermine sanctions against Moscow.
"Let me now say a few words to those countries who are currently sitting on the fence, perhaps seeing an opportunity to gain by preserving their relationship with Russia and backfilling the void left by others. Such motivations are short-sighted," she said.
Adding, "The world’s attitude towards China and its willingness to embrace further economic integration may well be affected by China’s reaction to our call for resolute action on Russia."
The pandemic has made over 47 million American reconsider their relationship with work, choosing to quit their jobs and seek greener pastures elsewhere. This mass upheaval in the workforce prompted two California lawmakers to propose a change to the Golden State’s workweek.
The idea is to reduce the current 40-hour workweek by eight hours for companies with over 500 employees. They and supporters say that it will increase productivity and profits while opponents call it a “job killer” creating an “untenable” situation for many businesses.
The idea of reducing the workweek in nothing new, nor radical according to experts. Some countries and companies have already been experimenting with a reduced workweek.
Inflation isn't uniform for all Americans
The US Bureau of Labor Statistics released the latest inflation data this week showing that the economy is still running hot. The year-on-year inflation in March was 8.5 percent, the fastest growth since 1981. However, there may be a glimmer of hope with core CPI down, meaning the worst may have passed.
In the meantime though, households are still suffering from the increased prices on just about everything. But the cost of inflation to American household finances is not uniform. While more well-off households can maneuver to preserve their money’s value in the face of inflation, low-income households don't have that luxury.
In a low-income households face greater inflation, with those with incomes below $20,000 experiencing 0.6 percent more inflation than those with income above $100,000 according to research. While higher-income consumers will start to take advantage of sales, coupons and purchasing lower priced goods, low-income households are already doing that economizing and may not have any wiggle room.
Don't leave valuable 2021 tax credits on the table this year
Taxpayers have just a matter of days to either file a 2021 tax return or request an extension until 15 October. Several tax credits were expanded and significantly increased for the 2021 fiscal year.
The IRS explains three of the tax credits Americans may be able to claim in this video which could lead to thousands in tax cuts or even be tacked onto your tax refund. They give the example of a taxpayer with three children under age six, who is eligible for the Earned Income Tax Credit (EITC), the Child and Dependent Care Credit and the Child Tax Credit could fetch $25K tax benefit.
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A new intitiative introduced by The Bridge Project will see hundreds of mothers given a monthly payment of either $500 or $1,000 for the first three years of a child’s life, as part of a study into the benefits of guaranteed income program.
The initiative began in July 2021 with the first group of 100 mothers admitted to the program and another 500 pregnant women who are set to become first-time mothers will begin receiving the payments this April. Here's everything you need to know about the program...
Who pays the highest rate of income tax?
When it comes to taxation the rich should pay the largest proportion of their income, right? Well that's not always how it works unfortunately and there are myriad ways for wealthy Americans with the rescources to pay for expensive accountants to avoid paying the stated rate of income tax. This investigation from ProRepublica illustrates the "effective income tax rate" for different income brackets. This found that the richest 400 individuals in the United States do not neccessarily pay the most in taxes.
IRS chief confirms that the agency should clear the tax return backlog this year
"If the world stays as it is as of today, we will be what we call healthy by the end of calendar year '22, and enter the '23 filing season with normal inventories — healthy through the eyes of the taxpayer,"
The history of gas prices in the US
The average price of gasoline has been in particular focus over the past few months after a combination of factors combined to push the cost of gas to record levels. President Biden has experienced a major dip in the polls as consumers feel the pain at the pump, but how do the current levels compare to other points in American history?
Every month the Social Security Administration (SSA) sends out payments to around 70 million retirees, the disabled, and plenty more groups who are eligible for financial support. Of all those who receive payments from the SSA, over 72% are retired workers.
This year they could be entitled to a healthy increase on their payment.
Can I claim the Earned Income Tax Credit?
Filers have until Monday, 18 April to complete their tax returns before the deadline, and to claim any tax credit that they may be entitled to. The Child Tax Credit has received a lot of attention in recent months but many are unaware of another credit that could provide relief for working families. The Earned Income Tax Credit (EITC) could be worth thousands of dollars for eligible filers, here's how you can check your eligibilty...
Biden outlines the next steps in his attempts to control gas price rises
"To help deal with this Putin Price Hike, I authorized the release of 1 million barrels per day for the next 6 months from our Strategic Petroleum Reserve — and over 30 countries agreed to release 60 million additional barrels. This is the largest collective release in history."
"That helped stop a run up in oil prices and has begun to bring those prices down as a result of countries acting together to release reserves. And Americans should be seeing the savings."
Sen. Warren wants significant change to the tax-filing process
Tax season can be very costly for millions of Americans every year, and not only in a financial sense. Studies show that filers are often required to waste a substantial amount of time completing their returns, doing so in the knowledge that one mistake could see them stung with financial penalties at later date.
Progressive Sen. Elizabeth Warren wants the whole tax filing system to be reshaped to make it easier and simpler for individual filers.
Studies show the huge benefits of the Child Tax Credit expansion
Last year's American Rescue Plan was a hugely ambitious legislative package and one which offered various forms of financial support for families across the United States. Perhaps the most beneficial, at least in the short-term, was the expansion of the Child Tax Credit to offer boosted monthly payments to families for a first time. The program had a considerable positive impact for millions of recipients, but no Republicans in the Senate agreed to an extension of the support when it elapsed last December.
Could a four-day working week become the norm in future? Numerous studies have suggested that productivity could actually increase if workers were given a three-day weekend, as well as bringing substantial benefits for mental health and work/life balance of employees. So far no states in the US have gone so far as to introdce the truncated schedule as standard, but a new proposal put forward in California could make that a reality for millions of Americans.
WH confirms next steps to address gas prices
The President is committed to doing everything he can to address the pain Americans are feeling at the pump as a result of Putin’s Price Hike. The Administration’s strategy to spur the development of homegrown biofuels is critical to expanding Americans’ options for affordable fuel in the short-term and to building real energy independence in the long-term by reducing our reliance on fossil fuels.
Today, the President is announcing new steps to achieve that goal by increasing fuel supplies, offering more consumer choices, and reducing gasoline prices for Americans.
What is the White House doing to reduce national gas prices?
The recent rise in fuel prices are the result of myriad factors, a consequence of everything from the rampant inflation that has gripped the US economy to the economic sanctions being levied against Russia for the invasion of Ukraine. With so many disparate causes it is impossible for the Biden adminstration to address the issue with a single sweeping initiative, however the White House is confident that it can mitigate the rising costs with a serious of interventions at a federal level.
File your tax returns easily with the IRS' Free File portal
Tax-filing can be a confusing and stressful period for many people and the myriad relief programs offered during the covid-19 pandemic have not made the process any more straight-forward. The IRS does, however, offer an online system designed to streamline the process for certain eligible filers. Here's how to take advantage of the Free File portal...
President Joe Biden has confirmed a significant new measure in his bid to bring the price of gasoline back down. The White House is lifting a ban on year-round sales of E15 gasoline which contains a high concentration of ethanol.
E15 gasoline has a 15% ethanol blend which has been linked to air quality concerns in the warmer summer months, and so its use is usually restricted. Former President Donald Trump reversed the ban in 2019 but it was reinstated last year thanks to a US Court of Appeals ruling.
Gas prices continue downward trend, pleasing consumers
The price of gasoline in the United States gradually been falling over the past three weeks and Patrick De Haan, an analyst at Gas Buddy, predicts that the national average could drop below $4 per gallon as soon as next week. However, the price of crude oil increased to more than $100 per barrel on Tuesday and De Haan has warned that the Great Lakes region could see a price increase in the next few days.
How long do I have to file for a tax return extension?
There's now just over one week to go until the federal tax filing deadline for 2022. If you don't think you will be ready to submit your 1040 Form by 18 April, you'll need to ask for an extension before that date. That will give you an extra six months to submit your 2021 tax return, but you'll need to pay any taxes you may owe by 18 April to avoid penalties.
You may have to file a 2021 state income tax return as well. The District of Columbia and 41 states require residents to submit an income tax declaration. While the deadline to file in most is 18 April, six states have later filing dates.
19 April: Maine & Massachusetts
30 April: Iowa
2 May: Delaware & Virginia
15 May: Louisiana
Welcome to AS USA, your home for all the latest news and information on tax season 2022. We'll also keep you up to date on financial news from the Capitol as President Biden looks to address the high price of gasoline.