Tthe first few months of 2022 have left many people in United States wonders what financial support is being offered, with stimulus-checks now stuck in the past, while some programs such as the Child tax deduction, has not yet been renewed. In this live blog on March 17, we will bring you the latest news and updates on the economic situation in the United States and what is on offer.
That Covid-19 pandemic has not disappeared but now no longer has the same threat as it did, so many of the available programs are for more general needs, such as helping citizens against the rise in inflation, the rise in gas prices and so on.
Social security payments with COLA 2022
There are millions of Social Security recipients across the US who have started receiving increased payments this year thanks to the 5.9 per cent cost of living adjustment (COLA) increase.
The most recent payments went out on March 16 to those retirees born between the 11th and 20th of the month. Anyone born from the 1st to the 10th has already got their money through in March, while those with birthdays between the 20th and the 31st of the month will see their money arrive on March 23rd.
There are about 70 million Americans who make claims Social Security payments, with the aforementioned increase of 5.9 percent due to COLA, which is an increase of 1.3 compared to last year. Also the maximum amount that is subject Social Security tax has also risen from $ 142,800 in 2021 to $ 147,000 in 2022. Social Security the tax rates remain the same, which is 6.2 percent for employees and 12.4 percent for the self-employed.
Read more about the latest batch of Social security payments.
As a result of Russia‘s invasion of Ukraine and the subsequent sanctions against Vladimir Putin’s country, gas prices in the United States has risen sharply.
In fact, for the first time in a decade, gas prices even went as high as four dollars per. gallon. The previous high was set at $ 4,103 per gallon back in 2008, but now a new high is set at $ 4,104.
Nevertheless, oil prices continues to decline. In the last week oil prices fell by 30 per centafter the increase caused by Russia‘s invasion of Ukraine.
Read more about Rising gas prices.
IRS tax refund
Many people across the United States will have been eager to get into theirs tax returns at the time, knowing that they will eventually likely receive a tax refund.
The sooner it is filed, the sooner you will get your money back. Since the tax season started on January 24th Internal Revenue Service (IRS) has returned at least $ 78 billion to the U.S. public.
In February 2021, the average tax refund was $ 2,880. This year, however, it is $ 3,536 on average. Therefore, the average amount received as tax refund rose 23 pct compared to last year.
Read more about IRS tax refund.
Child tax deduction
The extended Child tax deduction payments are now completed in the US, having been made available in the second half of 2021.
Families were able to receive $ 3,600 for each child under sixand $ 3,000 for each child between the ages of six and 17. It was then possible to either receive half of this money on a monthly basis, or they could be received as a full lump sum once the person had filed their 2021 tax.
However, this expanded program has not continued into 2022, after no agreement could be reached across all Democrats to support Joe Bidens Build back better initiative. In particular, Late. Joe Manchin was the opposite voice that caused the plans for the expanded Child tax deduction program to fall through.
Read more about the plans with Child tax deduction.
Given the way prices are rising rapidly in the US, is US Federal Reserve has made the decision raise interest rates for the first time since 2018 in an attempt to bring things back under control.
The benchmark rate will be raised by 0.25 per cent of the US Federal Reserve, and they have warned further interest rate hikes may follow in the coming months. This comes against increase in inflation in the United States, which hit one 40-year high of 7.9 percent In february.