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Stimulus Checks

Millions Of Retirees In The US Suffer From Credit Card Debts

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The post-retirement life brings diverse challenges for individuals. Retirees strive for financial security through adequate savings and a constant source of income. Saving for retirement plans is a dilemma for the working population.

CNBC reports that in a recent survey including 1,200 individuals, the results show that majority of the participants consider credit card debt as one of the significant obstacles in their road to attaining financial security after retirement.

Millions Of Retirees In The US Suffer From Credit Card Debts

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Debts Prevent The Individuals From Saving A Decent Sum

CNBC quoted Melinda Opperman, president, and chief relationship officer for Credit.org. she said, “every dollar someone must put toward debt repayment is a dollar they can’t set aside for retirement. There are consequences for not paying off credit card debt today, while not saving for retirement sets one up for more pain down the road.” The data suggests that a credit card holder with a balance of $6,300 and a 17% interest rate will take 18 years to repay the debt. At the end of the repayment, the total interest will amount to $7,600.

Credit Card Payments Have High-Interest Rates

The interest rates on credit cards are significantly high, and the individuals pay more than they should. The regular payment of debts makes it difficult for individuals to save for retirement. Several financial planners have condemned the high-interest rates of credit card payments and their impact on the long-term future of retirees.

Ted Rossman, a senior industry analyst at Creditcards.com, says that individuals should apply for a 0% balance transfer credit card that sans the interest for 21 months. Credit card payments restrain the investment options for working individuals. The elimination of credit card payments will allow individuals to invest in 401(k) and other saving schemes.

Individuals should not exhaust their savings to pay credit card debts. In addition to that, the credit card debts might deprive the retirees of several market gains, such as the S&P 500 index that has increased by one-fifth of the initial value in 2021. CNBC quoted Rossman, who said, “as much as I dislike credit card debt, it is hard for me to make a case that you should take an early withdrawal from your 401(k).”

 

Stimulus Checks

Taxpayers Receive Notice CP80 From The IRS: Know Why

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The Internal Revenue Service (IRS) has started processing 2021 tax returns. Taxpayers need to file their tax returns before April 18. IRS faces an enormous backlog of 2020 tax returns; several individuals have received CP80 notices despite submitting their tax returns.

Market Realist reports that IRS has 6 million unprocessed returns at present. The issuance of CP80 notes has created chaos amongst taxpayers, and they are worried about their refunds. IRS professionals will face severe difficulties due to the increased workload; taxpayers will likely witness a payment delay this year.

Taxpayers Receive Notice CP80 From The IRS: Know Why

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Several Taxpayers Will Have To Refile Their Tax Returns

Market Realist quoted an IRS statement; it said, “6 million unprocessed original individual returns (Forms 1040), 2.3 million unprocessed amended individual returns (Forms 1040-X), more than 2 million unprocessed employer’s quarterly tax returns (Forms 941 and 941-X), and about 5 million pieces of taxpayer correspondence.” The reports suggest a delay in 77 percent of the filed returns this year. The CP80 recipients will need to refile their tax returns. However, individuals with accurate tax returns need not worry as IRS will nullify those notices.

IRS Has A Long List Of Unprocessed Returns

Market Realist quoted IRS, “We credited payments and credits to your tax account for the tax period shown on your notice. However, we haven’t received your return.” The taxpayers need to check with IRS authorities to receive personal details and seek assistance. Most individuals with accurate tax returns will not need to refile but expect payment delays.

The IRS faces severe staff shortages amidst the pandemic. The situation worsened after winter’s Omicron wave. The taxpayers will need to provide accurate and updated tax information to receive eligible benefits without any unprecedented halt. Millions of families received stimulus checks and enhanced Child Tax Credit payments in 2021.

The remaining half of the enhanced CTC payments are due when beneficiaries file their tax returns. The IRS will verify personal information before processing the payments. Several eligible individuals missed out on eligible payments due to old or inaccurate data. Taxpayers need to read the letters carefully to know the complete details. The government officials will provide ample support to the US citizens amidst the difficult circumstances.

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Stimulus Checks

Child Credit: $193 Billion Available To Eligible American Families Who File Returns

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It is tax season in the United States of America once again. The deadline to file your tax returns is April 18, 2022. According to Lee Daily, families with children should be aware that they are eligible to receive tax credits of approximately $193 Billion. This is the estimated figure that is still left in the federal budget for the extended Child Tax Credit program.

Still $193 Billion Available

According to President Joe Biden’s extended Child Tax Credit program – eligible American families would who qualify for this Child Tax Credit received half of the program’s payments monthly by the end of last year. However, $193 Billion remains in the program’s budget for the last half of the payment this year. In this light, President Joe Biden’s administration has fears that many families who would benefit the most from this tax credit, could miss out on this last half of the program. If they don’t file their taxes correctly before April 15, 2022.

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File Tax Returns Before Deadline

For this reason, Vice President Kamala Harris, Treasury Secretary Janet Yellen, and White House senior adviser Gene Sperling implored millions of U.S. citizens who earn such low income. He urged those that might not have filed a tax return last year, to do so with the Internal Revenue Service. This was done on Tuesday, via a virtual event. Harris further added: “the truth is that there are folks all across our country who work hard every day and still struggle to make ends meet, and it should not be this way in our society. You haven’t finished filing your taxes yet. That is the only way you will be able to collect the second half of what you are entitled to”.

To check eligibility for the extended Child Tax Credit program you can visit: visit the website childtaxcredit.gov. Remember the deadline for filing your tax returns is by April 18 – but it is recommended, in this case, you do so by April 15, 2022.

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Personal Finance News

Stimulus Checks 2022: Should you file your 2021 Tax Return?

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Stimulus Update: Residents Of Several Cities Will Receive Stimulus Checks

Many Americans have received their stimulus checks based on the old 2019 or 2020 tax information. However, the taxpayers who earned less in 2021 than 2020 are in line to receive extra benefits. The eligible citizens can claim the payments under the Recovery Rebate Credit.

The Biden administration introduced the benefits after the detrimental effects of the pandemic on low-income families. As a result, eligible individuals might receive $1,400 while filing their 2021 tax returns. Marca reports that the Internal Revenue Service (IRS) issued Letter 6475 in January, notifying the additional payments.

Individuals Who Earned Less In 2021 Are Eligible For Extra Benefits

Many individuals have received their stimulus checks based on the old 2019 or 2020 tax information. However, the taxpayers who earned less in 2021 than 2020 are in line to receive extra benefits. The eligible individuals can claim the payments under the Recovery Rebate Credit.

The non-filers will also need to file the tax returns to receive the benefits. Marca reports that the IRS sent Letter 6419 to the extended child tax credit recipients in 2021. After updating their tax information, the eligible beneficiaries will automatically qualify for the payments.

The government announced $3,000 to $3,600 payments for families which suffered financially during the pandemic. The families whose annual income fell within the threshold received $250 and $300 per month for each child between 6-17 and under six, respectively. The eligible individuals have received the first half of the payments in six monthly payments.

The individuals will receive the remaining half of the payments while filing their tax returns in 2022. The deadline for the payments will be in April 2022. The citizens will have to file their tax returns in time to avoid delays in the payments.

Low-Income Families Will Suffer A Lot

Families should check with the officials to keep track of the payments in the future. The IRS will issue notifications regarding the dates of the tax returns. The federal government decided to cease the child tax credit.

The future of payments remains bleak after the halt in approving the build-back better act. The children belonging to low-income families will suffer the most due to increasing inflation levels and rising educational expenses. Therefore, the federal government needs to introduce various benefit schemes to low-income families to counter the economic crisis in times surrounding the pandemic.

 

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