Dtough financial times are ahead as gas prices soar across the United Statesand rising inflation is beginning to have an effect on the cost of daily necessities for millions of Americans.
Although the federal and state governments are partly responsible due to the impact of the prolonged coronavirus measures, they are currently implementing certain measures to try to cushion this blow, by introducing programs that try to offset the spiraling costs across the country.
In our live blog on the latest US financial news and advice, this Sunday April 3we’ll have updates on all of these stories and more.
Deduction for vehicle use
One method some Americans use to offset rising gas prices is to deduct an amount from your annual tax return.
Some options are offered with the IRS which may suit you best, but it’s independent contractors and self-employed workers who stand to benefit the most.
Learn more here at vehicle use deduction.
Tax refunds for small businesses
Corporate tax refunds are not that common. This mainly depends on the type of business it is registered under, with the majority of small businesses not paying income tax directly.
Prepaying upcoming expenses is a way to maximize tax refunds, as well as being aware of all the different types of tax credits the US government offers businesses. Mid-tier business owners may also be allowed to claim a deduction of up to 20% of their qualifying business income.
Learn more about small business tax refunds here.
SSDI and SSI payments are possible
Americans will be relieved to learn that it is indeed possible to receive financial assistance from the Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) programs at the same time.
The SSDI program comes from social security contributions from his salary, while the SSI program is based on need, not a tax.
Learn more about SSDI and SSI payments here.
Why do some people receive a lower tax refund?
Some people have seen that they are getting a lower tax refund than usual, and one of the most common reasons this might be the case is that they made more money in the last year. thought, while some may have gotten either a raise or a job change, which could have resulted in an improvement in their salary.
Another reason some people received a smaller tax refund is the expanded child tax credit program, as families received half of the $3,000 or $3,600 amount in the second half of 2021.
Learn more about tax free here.