U.S. Finance Updates: Delayed Tax Refunds, Gas Stimulus Check…
Jhe cost of living crisis affects many people in United Statesand many are worried about the rise in inflationthe increase in gas pricesand the fact that they have not yet received their tax refund.
In our live blog this Monday, April 11, we’ll bring you the latest news and financial updates in the USA.
Filing taxes individually and unmarried offers certain advantages
When it comes to taxes, married couples have the option of filing jointly or separately. Most married people file jointly by default, but in some cases it may be better to file separately.
It’s really about making the most of the stimulus payments and the planned child tax credit.
Couples filing separately do not qualify for Earned Income Tax Credit, US Opportunity Credit, and Lifetime Learning Credit for educational expenses.
Learn more about joint filing limits.
Tax deduction for charitable donations: what is tax deductible
Many people choose to give to charity during the holiday season, and while spreading happiness to others, it can also have a personal benefit when it comes to Tax deductions.
Congress passed a temporary measure during the pandemic for giving money to a registered charity, a married couple can claim $600 for cash contributions donated to qualifying charities in 2021. A single person can claim a deduction of up to $300 for cash contributions.
The American is not prepared for retirement
Saving money for your retirement day can sometimes be difficult and for most Americans they are not well prepared for this day says James E. Bogart. More than 30% of Americans have never had a retirement account such as a 401k or an IRA, and almost a fifth admit to saving nothing for retirement.
“Very few Americans are sufficiently prepared for retirement,” CEO and Chairman of Bogart Wealth, James E. Bogart recently told Yahoo Finance Live.
How much can you earn by receiving SS?
When it comes to receiving Social Security payments, there are certain income limits as you approach the age to obtain these benefits.
If you’ve reached full retirement age, you won’t have to worry about this, but there are two different earnings caps – one for those entering the last year of retirement and one for those just below.
Learn more here on how much can you earn by receiving SS.
Who is eligible for the Owners Relaunch?
The US government has made $9.9 billion made available to citizens as part of the Homeowners Assistance Fund (HAF)which seeks to provide support to those who have been negatively impacted by the COVID-19 pandemic.
The money is there to be used to help citizens avoid mortgage defaults, defaults, foreclosures and displacements.
Learn more here on who is eligible for the owners raise.
Filing an extension for taxes
the deadline for taxes to be filed in the United States is next monday april 18so if you’re worried you won’t be able to meet that date, it’s best to try to get a extension.
Should you decide to file an extensionit is important to remember that this does not affect when the money is due, only the tax return itself.
Learn more here on file an extension for taxes.
Get my tax refund faster
There are millions of Americans who are still waiting for a possible Internal Revenue Service (IRS) tax refundso when it comes to getting your tax refund faster, there are some methods you can try (this could apply to future tax years if you’re still waiting).
The deadline for this year’s taxes is April 18, and the the average tax refund is currently $3,352.
Learn more here about how to get my tax refund faster.
New Mexico stimulus check
The State of New Mexico has given the green light to a $500 check get out through two payments in the next few months.
All New Mexico residents who have already filed their taxes — or plan to do so before the tax deadline — for the 2020 and 2021 tax years will be eligible to receive this boost, which may be up to $1,000 in some cases.
You can find out more here about the New Mexico stimulus check.
The difference between the marginal tax rate and the effective tax rate
the the tax deadline is fast approachingtaxes are due by April 18, so there are a lot of Americans trying to figure out some complex terms when it comes to filing taxes, such as marginal tax rate and effective tax rate.
The difference between the two is that the marginal tax rate examines the tax rate imposed on a person’s last dollar of income, while effective tax rate refers to the percentage of their income that an individual or corporation pays in taxes.
You can read more here to know more about the difference between the marginal tax rate and the effective tax rate.