Difficult financial times lie ahead as gas prices soar across the United States, and the rise of inflation begins to have an effect on the cost of day-to-day necessities for millions of Americans.
Although both federal and state governments are partly liable due to the impact of the prolonged coronavirus measures, they are now implementing certain measures to attempt to cushion this blow, by introducing programs that try to offset the spiralling costs across the country.
In our live blog on the latest American financial news and advice this Sunday, April 3, we will have updates on all these stories and much more.
Vehicle use deduction
One method that some Americans are using to help offset the rising price of gas is by deducting an amount from your annual tax return.
There are some options on offer with the IRS that may suit you best, yet it is independent contractors and self-employed workers who are likely to benefit most.
Read more here about vehicle use deduction.
Tax refunds for small businesses
Tax refunds for businesses are not all that common. It mainly depends on what type of business it is registered as, with the majority of the small businesses not paying income taxes directly.
Prepaying upcoming expenses is one way of maximising tax refunds, as is being up to speed on all of the different types of tax credits that the US government offers to businesses. Owners of pass-through businesses may also be allowed to claim deduction worth up to 20 percent of their qualified business income.
Find out more about tax refunds for small businesses here.
Both SSDI and SSI payments are possible
Americans will be relieved to know that it is indeed possible to receive financial help from both the Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) programs at the same time.
The SSDI program comes about from Social Security contributions from one’s paycheck, while the SSI program is on a need-basis as opposed to a tax.
Find out more about SSDI and SSI payments here.
Why are some people receiving a lower tax refund?
Some people have seen that they are receiving a lower tax refund than usual, and one of the more common reasons why this might be the case is due to having earned more money last year than one may have thought, while some could have either got a pay rise or changed jobs, which could have seen an improvement in their salary.
Another reason why some people have received a smaller tax refund is because of the expanded Child Tax Credit program, as families received half of the 3,000 or 3,600 dollar amount in the second half of 2021.
Find out more about tax refunds here.