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.
Gas price spikes affect you even more, depending on where you live
In the current global climate, there is no way to avoid paying more for gas, unless you are in one of the states bordering Mexico where gas prices have been supported through government subsidies to prevent the price from rising.
However, for the rest of the states, there seems to be a huge difference, to give you an idea, Alabama residents are at the top of the list of gas spenders, as they average over 1 000 miles per month due to the distances between zones, which means they spend about 5% more of their salary on gas.
In contrast, New York State residents spend less on gasoline because they have an extensive public transportation system as an option to use their vehicles.
Mortgages could rise if banks are hit by the Federal Reserve’s interest rate hike
At the start of the pandemic, Federal Reserve interest was lowered to zero to help banks and the public, now it has gradually increased, in March it was raised from 0.25% to 0.5%.
Mortgage rates are now approaching 5% and may continue to rise along with long-term Treasuries. The 10-year Treasury yield climbed to 2.7% this week and is the highest since March 2019.
Rising Federal Reserve interest can create a ripple effect on future homeowners, making it more difficult to purchase property.
Bank of America predicts recession shock
The Federal Reserve is implementing several adjustments aimed at containing the inflation that is rocking the American economy, in a development that has not occurred since 1982. However, some analysts are already beginning to detect signs of a recession in the ‘horizon.
Michael Hartnett, chief investment strategist at Bank of America, detected that rising consumer prices, combined with an increasingly belligerent central bank, could precipitate an economic slowdown in the country.
“The ‘inflation shock’ is getting worse, the ‘rate shock’ is starting, the ‘recession shock’ is coming,” he wrote recently.
The stock market jitters
U.S. equity markets suffered a setback as bond yields continued to rise on jitters over a Federal Reserve (Fed) monetary policy tightening and pending data release on the inflation on Tuesday.
In the commodities market, losses were seen, with WTI posting a contraction of 0.52%, trading at $97.42 a barrel, while Brent fell 0.44% to $103.01. the barrel.
The Nasdaq Composite fell 1.4%. The S&P 500 fell 1.2%. The Dow Jones Industrial Average fell 0.7% as technology components Apple (AAPL), Microsoft (MSFT) and Google parent Alphabet (GOOGL) fell between 1.8% and 3.4%.
Childcare may also be tax deductible
If a person has found it necessary to pay for a daycare, babysitter, nanny, summer camp or other care provider for a child under the age of 13, then they may be eligible for a tax credit on their taxes.
Many parents responsible for child care expenses benefit from the Child Care and Dependent Care Credit. Although the credit is intended for working parents or guardians, it may also apply to taxpayers who were full-time students or who were unemployed for part of the year.
Learn more about child and dependent care credit
The possibility of Dogecoin reaching a master price is remote
Among the factors preventing such an escalation in value, not only of Dogecoin, but of the rest of other cryptocurrencies, is the fact that they are not yet so widely known and are not accepted in the world. most places as payment. Moreover, their value is unstable and even volatile.
There is specific data where it is pointed out that Dogecoin has low transaction rates and its transfer time is 10 times faster than that of Bitcoin. This means that it does not generate as much confidence for those who – after a certain time of acquisition – get rid of it without worrying about obtaining a minimum profit or even end up losing part of the value they have paid at the start.
Learn more about The growth potential of Dogecoin
Filing taxes individually and not married 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 education 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 at 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 at 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 at 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.