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Though overshadowed by other dark events, the Biden administration has been busy implementing a piecemeal approach to student debt burdening many Millennials and Gen Zers – and even older people. In the past week or so, the White House announced key student loan relief for three specific groups: people with disabilities who fail to find gainful employment, former or current active-duty military personnel, and people defrauded by schools that have obtained their loan. . Read on for more details, along with the latest information on child tax credit scams, racial disparities in retirement benefits and more.
Take him to the Tax Court
Need to file an application with the Tax Court? Prepare for a long wait because the yard remains flooded with nearly double the number of petitions last year. There is a good chance that “IRS Robots” carry a much of the responsibility for this backlog . During this time, even if you don’t fight with the IRS, you might want to check to see if your tax professional takes information security seriously: here are five red flags to watch out for. Speaking of red flags, the FTC recently reported over 67,000 tax scams in the first half of 2021, and the IRS is warning families of new tax scams targeting families who expect to receive monthly child tax credit payments.
Social security defaults
Like many systems and institutions in America, Social security contributes to racial inequalities. For decades, it has rewarded marriage and longevity, and intentionally or unintentionally, it ends up hurting black people, research shows. The structure of tax benefits for retirement savings has also widens the racial wealth gap . While there has been a lot of talk about what the current surge in inflation will mean for Social Security advantages and health insurance premiums, the best retirement planning requires focusing on more than just money. Commit to maintain and maintain a “real” social security– the friends you’ll need to stay connected, engaged and happy amid the many challenges that age can bring.
Fallout from declining life expectancy
Average life expectancy in the United States fell 1.5 years in 2020 – the biggest one-year drop since WWII – but here’s why you shouldn’t modify your retirement plans accordingly. If you are a Canadian concerned about outliving your savings, you now have the option of a life annuity with right of redemption. At this time, the product is not available in the United States, but it may only be a matter of time before it is offered here. Additionally, here’s how Roth IRAs, Health Savings Accounts (HSAs), and other methods can be used as alternatives to the traditional emergency savings account.
All eyes on student loans
It has been a busy week for student loans. Biden administration announced plans to automatically phase out about $ 5.8 billion in federal student loans debt owed by borrowers with disabilities who are unable to maintain substantial and gainful employment due to a medical, physical or psychological impairment. ( Here’s how to find out if you qualify for relief The White House has also said it will retroactively waive student loan interest for thousands of current and former active-duty military personnel who may have been ignoring the long standing advantage, plus he announced the automatic cancellation of student loans for at least 115,000 borrowers swindled by their schools. Recently, here is a guide to donate your airline miles or vouchers to help refugees and asylum seekers from Afghanistan and elsewhere bear the cost of air travel to their resettlement countries
New graphic: The racial inequity issue of retirement
Source: Center for Tax Policy, Federal Reserve
Markets are accelerating
As the US stock markets continue to climb, investors were looking ahead at the Federal Reserve’s Annual Economic Symposium, which kicked off Friday in the mountainous resort town of Jackson Hole, Wyoming. Chinese stocks listed in the United States recently added $ 80 billion in market value, but they still have lost $ 300 billion in total this year . And a fintech called Ramp, which offers a business credit card with no fees, interest rates, and cash back, doubled its valuation this week via a funding round of $ 300 million.