Connect with us

Personal Finance News

Social Security Tax Relief: Tax Exemption For Seniors in Nebraska- Are You Eligible?

Published

on

Social Security Updates: Tips To Prevent Reduction In Your Retirement Benefits

On Wednesday this week – January 21, 2022, – according to the Kearney Hub – the  Legislature’s Revenue Committee advanced a bill to speed up exempting Social Security beneficiaries from the state’s income taxes aimed at the year 2025.

5-0 Vote

The vote was unanimous at 5-0. This might come as some very good news for over 63 million Americans who are already recipients of Social Security benefits in the United States of America. According to the Kearney Hub, the Social Security income tax exemption contained in LB825 would be implemented or phased into being over the next 4 years. In 2025, all things equal, there will be no state taxes paid on Social Security income in the State of Nebraska. This year – 20% there will be a 40% tax exemption. This exemption will increase by 20% in 2023 and 2024, respectively.

Social Security Offices To Reopen In March

Pexels.com

No Social Security Tax Nebraska

Such an exemption could mean that millions of citizens in Nebraska who rely on Social Security income will have more disposable income and greater economic relief during the COVID-19 pandemic – which has led to soaring high inflation rates – around about 7%, and many people losing their jobs. Furthermore, whilst it is unclear at present whether further stimulus checks will be granted by the federal government and to seniors, and those with disabilities to aid citizens and families affected by the COVID-19 pandemic – at least 70 odd million citizens who are beneficiaries of Social Security income will pay fewer state taxes from this year and finally none in 2025.

What economic impact this will have in the form of the loss of revenue to the receiver and therefore the state – remains to be seen, but according to the Kearney Hub – the initial loss in potential revenue is estimated to be $40 million in 2022 and $73 million in 2025 respectively. This does not include the years 2023 and 204 – making the overall amount about $200 million. This is quite a substantial loss in potential income and has been opposed by some role players – as they view it to be, according to the Kearney Hub, as quite short-sighted to approve such an exemption without seeing if the state government can firstly afford it.

Besides this state-level initiative to help relieve citizens during the COVID-19 pandemic there has been changed to the Medicare program on a national level as well, and in breaking news – on Wednesday President Joe Biden stated that he is, again, confident that he will get an amended broken up version of his Build Back Better bill passed into law.

Hope this article was useful – if it was don’t forget to comment below!

Banking News

Only 28% Of Americans View Economic Conditions Of Their Country As Excellent

Published

on

The American economy has experienced much turmoil during the COVID-19 pandemic. Indeed, according to the Motley Fool, the United States of America’s economy has come a long way since the beginning of the pandemic.

Pexels

Of course, the pandemic sore the unemployment level in the year 2020 reaching a record high. In addition to this, finding work during this period has been extremely difficult. As such, the federal government issued various stimulus and COVID relief payments and credits and unemployment benefits to combat the effects of the pandemic.

The State Of U.S. Economy

Currently, the American economy is has a 7.5% inflation rate or consumer price index. This has surpassed the 40-year record high since 1982, that is, since last month. However, besides this – the unemployment rate has decreased, and it seems the United States of America is ‘getting back to work,’ and their country’s economy is starting to recover. However – a recent survey conducted by the Pew Research Center showed that 28% of participants viewed the country’s economic conditions as good or excellent.

Why Such Economic Pessimism

It seems the supper high inflation rate leads most Americans to have such a negative view of their economy. Indeed close to 90% of participants viewed food and gas prices as higher than last year, 89 and 88 82 percent respectively.

Is Inflation Always Bad?

However, some economists argue that inflation, is at times, a sign of a healthy economy and does not always have to be viewed in a negative light. This is easier said than done though, with living costs increasing – consumers can feel the pinch in their budgets.

The argument, however, is that supply and demand determine the unit price. So if there is an increased demand – and supply does not necessarily change – unit price must increase. This means consumer price index increases or inflation. So an increase in demand could show people are buying more, and this might at least be the signs of a recovering – or active economy.

When supply chain issues are fixed – inflation should decrease. Furthermore, since December last year, unemployment is the lowest it has been since the start of the pandemic. So perhaps such an opposing economic viewpoint – can be replaced, which is realistic, in this light.

 

 

Continue Reading

Child Tax Credit

Experts Predict Long Payment Delays From IRS This Season, Provide Few Tips To Speed Up The Process

Published

on

Pexels.com

The IRS faces an enormous backlog due to staff shortages amidst the pandemic, it has recruited new officials, but the challenge remains tough. IRS is yet to process millions of tax returns of last season. The IRS officials are crushed under a ton of paperwork; millions of taxpayers will file their returns this year. The authorities will need to devise a compact strategy to overcome the backlog. CNBC reports that IRS had 6 million unprocessed returns by December 31, this is large numbers, and 2021’s tax returns might take some time.

Experts Predict Long Payment Delays From IRS This Season, Provide Few Tips To Speed Up The Process

Pexels.com

IRS Workers Are Sparse

Experts suggest various ways to slim the time lag between filing the returns and receiving the payments. CNBC reports that the IRS only had 15,000 workers to answer around 24 million customer calls during the first six months of 2021, one person for 16,000 customers. Experts suggest taxpayers avoid the paperwork to the maximum extent; filers can switch electronic modes to fast forward the documentation. Taxpayers need to use advanced features to process tax refunds and other pending payments quickly. The electronic method will ease the burden on IRS officials during data verification.

Taxpayers Should File Electronic Tax Returns

IRS quoted Erin Collins, the National Taxpayer Advocate; she said, “Paper is the IRS’s kryptonite, and the agency is buried in it. The IRS still transcribes paper returns line by line, number by number, they received around 17 million original paper returns last year, and the processing delays have run as long as 10 months.” The taxpayers need to recheck their tax returns thoroughly; the wrong information might lead to payment abortion and several lengthy delays. The officials, too, will have to go through the same twice or thrice, which makes the process more complicated.

The families who receive enhanced Child Tax Credit or Stimulus payments or both need to exercise extra caution while filing their returns; the IRS issued letters to provide data for the amount allocated. The beneficiaries for the remaining half of the Child Tax Credit payments or extra credit should give complete information in their tax returns. IRS has announced April 18 as the deadline; individuals need to complete the filing process before the date.

Continue Reading

Stimulus Checks

Taxpayers Receive Notice CP80 From The IRS: Know Why

Published

on

Pexels.com

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

Pexels.com

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.

Continue Reading

Trending