![]() Earlier this week, however, H&R Block CEO Jeff Jones told Insider that "unemployment is new for tens of millions of people" and he sees people making "mistakes" on their tax filings as a result. H&R Block did not immediately respond to Insider's request for comment. "We are implementing IRS guidance on unemployment income within TurboTax, and updates will be available in product this evening, March 18." "We're working around the clock to make updates to TurboTax based on the recently enacted American Rescue Plan so our customers can file with confidence and get their maximum refund," Ashley McMahon, a TurboTax spokeswoman, told Insider. According to CNBC, online tax preparers H&R Block and TurboTax haven't updated their software to account for the changes, with experts saying that taxpayers who are eligible for the tax break should wait to file. ![]() Taxpayers with income of less than $150,000 in 2020 are eligible for a tax exemption on the first $10,200 of unemployment benefits from the federal government. But H&R Block and TurboTax customers will have to wait for some of it. President Joe Biden signed a $1.9 trillion stimulus plan last week, and Americans are eager to receive their stimulus checks and get tax refunds. Such a situation with continued strong economic growth, like the “goldilocks” jobs report last week, could help for a better broader performance in the stock market.Account icon An icon in the shape of a person's head and shoulders. While the Fed is trying to get inflation down to its target of 2%, it is currently running more than double that, Ward says moderately high inflation wouldn’t necessarily be a bad thing for stocks. ![]() If inflation is shown to be cooling, shelter costs will be one key indicator, the Fed will have more maneuverability able to “reprioritize.” However, if inflation is “sticky,” specifically labor costs, the Fed will be “hamstrung.” On Wednesday, the Bureau of Labor Statistics will release the April Consumer Price Index and that reading is “absolutely critical” in the words of JP Morgan Asset Manager Karen Ward. That will depend on economic indicators in the coming weeks. ![]() But he cautioned that policymakers were willing to increase borrowing costs yet again when they meet in June and July. Chairman Powell signaled that the quarter percentage point hike could be the last one. The Federal Reserve raised interest rates once again last week. US inflation report “absolutely critical” for future Fed policy Depending on what spending is cut and if there are roll backs of the Inflation Reduction Act that could dampen the US economic growth. GOP lawmakers want deep cuts in spending. The final deal reached between the White House and Republicans to raise the debt ceiling will also be watched closely. That would be a drain of liquidity at the same time that there may be a credit crunch as monetary tightening continues. ![]() Shalett says that they will be watching the pace and duration that new debt is issued which could be as high as $750 billion in the last four months of the year. “What we’re telling them is that it’s not a question of ‘if’, it’s a question of ‘when and how.’" The critical question is what Treasury Secretary Janet Yellen will do once she is able to issue new debt. Lisa Shalett, Morgan Stanley Wealth Management CIO, spoke to Bloomberg TV about the debt ceiling and what she and her team are telling clients. No easy path ahead “when” debt ceiling is raised, US economic growth at risk ![]()
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