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Tuesday, April 4, 2023

The Daily Money: Apply now for that tax filing extension to avoid penalties

Need more time to apply for your taxes? Do it now. Folks will have until Oct. 16 to file with the extension.
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The Daily Money

ALL THE MONEY NEWS YOU NEED TO KNOW

Tue Apr 4 2023
 

Amritpal Kaur Sandhu-Longoria |  Investigative Reporter, Consumer Watchdog

@AmritpalKSL

Hi, this is Amritpal Kaur Sandhu-Longoria with The Daily Money headlines. It's Tuesday, or what I like to call a second Monday.

We're two weeks away from the tax deadline, but if you feel like you cant make it, now is the time to get serious about filing for an extension so you can avoid penalties . Filing for the extension is easy and free, and the IRS will give folks until Oct. 16 to submit their tax return.

If you're living in a state affected by natural disasters, chances are you already have more time to file. Mississippi made exceptions for storm and tornado victims by extending the deadline to July 31. California flood and storm victims have until Oct. 16.

And if you can't pay your taxes. a piece of advice: file for the extension anyway. The failure-to-file penalty is way steeper than the failure-to-pay penalty. Even making a partial payment will help.

Fewer open jobs February since , more people quitting

Employers advertised 9.9 million jobs in February, the lowest since May 2021, and data shows that 4 million people quit their jobs to take on new positions. Since there were 5.9 million unemployed Americans in February, the 9.9 million vacancies amounted to 1.7 available jobs for each unemployed person, down from a near-record 1.9 openings in January.

Economists are watching out for the March jobs report coming Friday, which could also reinforce the Federal Reserve's tentative plan to hike the interest rate in May. The Fed has been raising interest rates to cool the job market and inflation, and the new hike could range between 5% and 5.25%.

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He stuck up for a woman, got fired — then hit O'Reilly Auto Parts with $3M verdict: The company fired the harasser and the man who reported him.

Richard Branson's Virgin Orbit files for Chapter 11 bankruptcy: The decision comes after a failed satellite launch, staff reductions and fundraising issues.

Volkswagen recalls more than 143,000 Atlas models, warns to not use front passenger seat: NHTSA warns that the front passenger airbags may be deactivated.

My abusive ex applied for a job at my company. Can I stop him? Ask HR: Columnist answers the reader's question on whether they have any recourse.

About The Daily Money

Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you.

Follow Amritpal on Twitter: @AmritpalKSL
An aerial view of the Tesla Fremont Factory on May 13, 2020 in Fremont, California.

Owen Diaz, who is Black, said he was harassed and targeted by racial slurs while he worked as a contracted elevator operator at Tesla's Fremont plant.

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How to tell if your eggs are good or bad

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This is the sign outside a McDonald's restaurant in Wilkinsburg, Pa., on Jan. 14, 2019. McDonald's is one of few chains remaining opening on Christmas Day.
 

Report: McDonald's temporarily closes US offices ahead of layoffs

McDonald's will notify employees of staffing decisions this week, The Wall Street Journal reported Sunday.
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WWE, UFC $21.4 billion merger by Endeavor

World Wrestling Entertainment, run by the McMahon family for decades, has been purchased by Endeavor Group Holdings Inc., parent company of the UFC.
An investor climbs a ladder toward a percentage sign atop a stack of coins, symbolizing attempts to beat rising inflation.
 

Your inflation questions answered: Cause and effect of rising prices

Inflation is a generalized raise in prices. It can be caused by several factors, such as excess spending in comparison to the product's availability.
Tax day in the U.S. just passed, and if you feel like you are working a large part of your life just to pay taxes, the statistics bear you out. And in some states, that burden is greater than others. To identify how much tax people pay in their lifetime in every state, 24/7 Wall St. reviewed Life of Tax: What Americans Will Pay in Taxes Over a Lifetime published by loans and credit builder Self. The report shows average lifetime earnings and taxes compiled from wage data from the Bureau of Labor Statistics Consumer Expenditure Report for the year 2020 and several other sources. States are listed alphabetically. ( See also the most tax friendly states for the rich .) According to Self., Americans will pay on average $480,407 in taxes during their lifetime, or 34.49% of their earnings. Self. calculated the figures by adding federal and state lifetime income taxes as well as sales, property, and automotive taxes. Total lifetime taxes were then compared against lifetime earnings based on figures from the American Community Survey conducted by the Census Bureau, plus 3.9% inflation, and multiplied by a working lifetime of 36 years. Residents in 34 states will pay less than what the average American will shell out over his or her lifetime. The lowest is Tennessee at $284,624. Taxes on earnings are the biggest hit on taxpayers, with Americans paying $255,364, on average, in income taxes in a lifetime. Tax on property is next at $174,251, and that is above the property price and maintenance. ( These are the states with the highest and lowest property taxes .) As you might expect, residents in Northeastern states pay the most over a lifetime, and New Jersey is by far the highest. Residents in the Garden State will pay $1,035,725 in taxes, on average, in a lifetime. New Jersey residents will pay 61.84% of their earnings to taxes over their lifetimes, one of six states where residents pay more than 50% of their earnings in total taxes. New Jersey residents also pay the highest effective rate on owner-occupied property at 2.13%, according to the Tax Foundation. The other top states or districts in lifetime tax payments are Connecticut ($869,664), the District of Columbia (869,419), Massachusetts ($859,592), and New York ($793,590).
 

What is a federal tax credit? Here's what you need to know.

A tax credit is the dollar-for-dollar amount of money that taxpayers subtract directly from the income taxes owed. A federal tax credit is granted by the federal government.
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Tesla hits record Q1 car deliveries after price cuts spur demand

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FILE -- In this Wednesday, Nov. 28, 2018, photograph, long lines of unsold 2019 Pilot sports-utility vehicles sit at a Honda dealership in Highlands Ranch, Colo.
 

Honda, Jeep and Audi recall nearly 400,000 vehicles: check recalls

Honda recalled more than 330,000 vehicles because the side-view mirrors may fall off while Chrysler said its Jeep Wranglers could leak fuel.
In this Nov. 5, 2020, file photo, a booklet describing unemployment benefits is seen on a desk, in North Andover, Mass.
 

Unemployment checks are slower to reach you. See how your state compares.

State systems were overwhelmed and slow to process unemployment claims after the pandemic began. Some states are faster now but others still struggle.
In 2021, the expanded child tax credit with monthly payments became available to 65 million children in a record nearly 40 million families across the United States. This single piece of legislation helped lift 5.3 million Americans out of poverty, including 2.9 million children.
 

Child Tax Credit: Here's what you need to know for this tax season

The maximum tax credit per qualifying child is $2,000 for children five and under – or $3,000 for children six through 17 years old.

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