Tax Refund Update 2024 | IRS Tax Return Transcript Codes, Delays, Schedule

Learn about 2024 IRS tax refund updates, including processing times, transcript codes, and the impact on your Child Tax Credit, with insights on how to use the “Where’s My Refund?” tool. Discover how early filing and understanding IRS notifications can expedite your refund and enhance your financial planning.

Dive into the essentials of managing your taxes in 2024, focusing on the latest updates from the IRS concerning tax refunds. Includes an overview of the refund approval process, understanding delays, and decoding IRS transcript codes like 570 and 971 that could affect your refund timeline. Also, discover the importance of filing your taxes early, especially for those claiming credits like the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC), to ensure a faster refund. Learn how to utilize the IRS’s refund tool to track your refund status efficiently. Also, gain insights into how certain factors, such as filing electronically or by paper, can influence the speed of your refund, and related information on Social Security. This guide helps you with the knowledge to navigate the tax season smoothly, understand potential delays, and optimize your financial planning for the year. Updated for 2024 for filing your 2023 taxes.

Tax Refund Update 2024 | IRS Tax Return Transcript Codes, Delays, Schedule

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Money Instructor does not provide tax, legal, or investment advice. This material has been prepared for educational and informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or investment advice. You should consult your own tax, legal, and investment advisors regarding your own financial situation. Although the information has been researched and vetted beforehand, it may not be current at the time of viewing. Please note, the context of financial investments can be complex and dynamic, necessitating professional advice tailored to your unique circumstances.

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Social Security Payroll Proposal | Changes to Update Benefits

Learn about the Social Security Administration’s new proposal to streamline SSDI and SSI payments through the Payroll Information Exchange (PIE). Discover how this change aims to reduce overpayments and make the system fairer, especially for seniors, the disabled, low income, and survivors.

How SSA’s New Plan Could End Overpayments. In this overview, explore the Social Security Administration’s (SSA) latest proposal designed to enhance the accuracy of Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) payments through the Payroll Information Exchange (PIE). This seeks to cut down on the costly mistakes of overpayments by using employer-provided wage data, reducing the need for individuals to report their earnings. Also, learn about the challenges of overpayments that have burdened many, particularly affecting seniors, the disabled, and survivors, leading to financial hardships. The PIE system aims to simplify and improve the reporting process, making it more efficient and equitable for all beneficiaries. You’ll also discover the importance of the public consultation period, which offers a platform for community input and involvement in shaping these significant changes.

Social Security Payroll Proposal | Changes to Update Benefits

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Money Instructor does not provide tax, legal, or investment advice. This material has been prepared for educational and informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or investment advice. You should consult your own tax, legal, and investment advisors regarding your own financial situation. Although the information has been researched and vetted beforehand, it may not be current at the time of viewing. Please note, the context of financial investments can be complex and dynamic, necessitating professional advice tailored to your unique circumstances.

Categories Retirement, Strategic Planning
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The Truth about Stimulus Checks | Adapting Without Government Aid

Is there another stimulus check? Learn how to budget and save when no more stimulus checks are coming. Discover strategies for financial resilience including budgeting, side hustles, saving, investing, and available support programs to strengthen your financial footing.

Here, we delve into the current economic climate in 2024 and the decreasing likelihood of receiving additional stimulus checks, including a 4th stimulus check, or from the IRS for individuals and families including seniors and those on social security. As the economy begins to stabilize post-pandemic, the government focus shifts towards long-term recovery efforts like job creation and small business support, moving away from direct financial aids like stimulus payments. This shift prompts the need for individuals to reassess their financial strategies. Strategies include budgeting, exploring new income avenues through side hustles, and the importance of saving and investing wisely. Additionally, we highlight the significance of staying informed about economic changes and seeking out available financial support programs. Emphasizing proactive financial planning and community support, this lesson encourages viewers to explore creative solutions for financial resilience in the face of evolving economic conditions.

The Truth about Stimulus Checks | Adapting Without Government Aid

The Truth about Stimulus Checks

So, you’ve been hearing a lot about stimulus checks lately, right? Maybe you’re wondering if there’s a chance you’ll get another one in your bank account anytime soon. I get it, times have been tough, and a little extra cash could go a long way. But let’s sit down and talk about the reality of the situation and what you can do to navigate these uncertain times.

First off, I know the topic of stimulus checks brings a lot of hope. They’ve been a crucial lifeline for many during the pandemic, helping to pay bills, buy groceries, and just keep afloat. But as we look at the current economic landscape, the chances of seeing new stimulus payments are getting slimmer. It’s not the news we want to hear, but it’s important to face reality and plan accordingly.

The Economic Shift: From Relief to Recovery

Now, you might be asking, “Why is that?” Well, stimulus checks are typically part of larger economic relief packages passed by the government during times of significant downturns, like the pandemic. As the economy begins to recover and stabilize, the focus shifts from immediate relief to long-term economic health. This means less emphasis on direct payments and more on measures like job creation, infrastructure improvements, and support for small businesses.

But here’s the thing, understanding this shift doesn’t make your need for financial relief any less valid. So, what can you do? First, it’s essential to take a deep breath and assess your financial situation. Look at your budget, your expenses, and your income, then see where you can cut back, but also where you might find additional support. There are still programs out there designed to help those in need, from unemployment benefits to food assistance programs and even local community support initiatives.

Smart Budgeting: Making Every Dollar Count

Next, it’s important to think about making the most of what you have. It’s a great time to get creative with your budgeting. Maybe you’ve got skills or hobbies that can be turned into a side hustle. Ever thought about selling crafts online, tutoring, or freelancing? There are lots of ways to generate a little extra income on the side.

And don’t forget about the power of saving and investing. It might seem counterintuitive when money is tight, but even a small amount saved now can grow over time. Look into high-interest savings accounts, or if you’re feeling a bit more adventurous, maybe dip your toes into investing. Just remember, it’s all about making informed decisions that fit your personal risk tolerance and financial situation.

Stay Updated: Navigating Economic Changes

Lastly, staying informed is key. The economic landscape is always changing, and new support measures can pop up. Keep an eye on news from reliable sources, and don’t be afraid to reach out for financial advice or support from professionals, as they can offer insights and strategies tailored to your unique situation.

So, while the prospect of more stimulus checks seems unlikely, there are still steps you can take to strengthen your financial position. It’s about being proactive, getting creative, and making informed decisions. Remember, you’re not alone in this. We’re all navigating these challenges together, and by sharing knowledge and support, we can emerge stronger.

If you’ve got tips, questions, or stories about how you’re managing financially, drop them in the comments below. Let’s help each other out and build a community of financial resilience. Stay strong, stay hopeful, and let’s tackle these challenges head-on.

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Money Instructor does not provide tax, legal, or investment advice. This material has been prepared for educational and informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or investment advice. You should consult your own tax, legal, and investment advisors regarding your own financial situation. Although the information has been researched and vetted beforehand, it may not be current at the time of viewing. Please note, the context of financial investments can be complex and dynamic, necessitating professional advice tailored to your unique circumstances.

Categories Budgeting, Debt & Credit, Earning Money, Financial Planning, Taxes
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What is Social Security? Tax Contributions and Benefits

Learn about the basics of Social Security, including how your payments through payroll taxes impact your future benefits. Discover the importance of financial planning and Social Security’s role in your retirement strategy.

A beginner’s guide to the essentials of Social Security, a government program designed to support you during retirement or in case of disability. This topic unpacks the workings of Social Security, shedding light on how your earnings and payroll taxes contribute to your future financial safety net. By delving into how contributions affect your benefits, you’ll grasp the importance of early career planning and smart financial decisions. Additionally, it touches on the sustainability concerns of Social Security, highlighting the necessity of diversifying your retirement savings with options like 401(k)s, IRAs, and investments in stocks and bonds. Understanding Social Security is not just about preparing for retirement; it’s about securing your financial future, making it a valuable lesson for anyone at the start of their career journey.

What is Social Security? Tax Contributions and Benefits

What is Social Security? How Does it Work?

So you’re checking your first paycheck, excited about your earnings, when you notice a chunk has been taken out for something called “Social Security.” You’ve heard the term, but what does it actually mean for you? Here, we will explain Social Security, unraveling its complexities and revealing its significance in our lives. From understanding how your contributions now affect your benefits later, to exploring the impact on future financial planning.

In simple terms, Social Security is a government program that provides financial benefits to retirees, disabled individuals, and survivors of deceased workers. Think of it as a safety net that’s there for you when you retire or if you’re unable to work due to disability.

How Does Social Security Work?

Now, you might be wondering, “How does it work?” Social Security is funded through payroll taxes. If you’ve ever looked at your paycheck and noticed a deduction for FICA, the Federal Insurance Contributions Act, that’s your contribution to Social Security. There is also Medicare, but that’s a topic for another day. Every time you get paid, a portion of your earnings goes into the Social Security system. Then, when you retire or if you need disability benefits, you can draw from this pool of funds.

But here’s where it gets interesting for us, especially if you’re in the early stages of your career. The amount you get from Social Security when you retire depends on how much you’ve contributed over the years. It’s not a fixed amount; it’s calculated based on your 35 highest-earning years. So, the more you earn and the longer you work, the higher your benefits will be.

Now, you might be thinking, “I’m young. Why should I worry about this now?” Here’s the thing – understanding how Social Security works is crucial for planning your financial future. It’s about knowing what to expect and making informed decisions, whether that’s about saving for retirement, investing, or just planning your career path.

Social Security’s Financial Challenges

But, let’s not forget the elephant in the room. There’s been a lot of talk about the sustainability of Social Security. With an aging population and changes in the workforce, some are concerned that the funds might not be sufficient to cover future benefits. While it’s a valid concern, it’s also a reminder of the importance of having a diversified retirement plan. Don’t put all your eggs in the Social Security basket. Consider other retirement savings options like 401ks, IRAs, or even investing in stocks and bonds.

Social Security might seem like a distant concern, but it’s a fundamental part of our financial ecosystem. Understanding how it works gives you a leg up in planning for your financial future. And remember, it’s never too early to start thinking about retirement. The decisions you make today can have a big impact down the road.

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Money Instructor does not provide tax, legal, or investment advice. This material has been prepared for educational and informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or investment advice. You should consult your own tax, legal, and investment advisors regarding your own financial situation. Although the information has been researched and vetted beforehand, it may not be current at the time of viewing. Please note, the context of financial investments can be complex and dynamic, necessitating professional advice tailored to your unique circumstances.

Categories Earning Money, Financial Planning, Investing and Financial Planning, Retirement, Saving Money
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IRS LT38 Notice | What It Means and How to Respond

Learn how to navigate the IRS LT38 Collection Notice, a letter that signals you have an outstanding tax balance. Understand its purpose, including how to resolve outstanding balances and explore payment options. Discover strategies for filing missing returns, addressing penalties, and securing relief from financial hardships.

Here we’ll look at understanding the notice in 2024, why you received it, and the steps to resolve it, including filing any missing tax returns and options for paying your unpaid balance. For those who can’t pay in full, we explore setting up a payment plan or dealing with financial hardship. Additionally, we cover penalties and interest, highlighting the IRS’s relief for certain tax years and how to claim refunds. Special circumstances, such as dealing with fraud or seeking innocent spouse relief, are also discussed, providing a comprehensive roadmap to navigate and resolve IRS notices confidently.

IRS LT38 Notice | What It Means and How to Respond

IRS LT38 Notice | What It Means and How to Respond

Did you just get a special “reminder” letter in the mail, perhaps one that feels more like a cold splash of water to the face than a friendly nudge? Yes, I’m talking about the infamous LT38 notice from the IRS, a piece of paper that can easily turn a good day into a stressful one. But fear not! This notice, while certainly attention-grabbing, is not the end of the world. Today, we’re going to demystify the LT38 notice, breaking down what it means, why you’ve received it, and how you can respond effectively.

So, what’s the deal with the LT38 notice? Essentially, it’s the IRS’s way of saying, “Hey, we’re getting things back on track after the pandemic and noticed you have an outstanding balance with us. Let’s sort this out.” It’s not an audit; it’s more of a nudge to get you to take action on any tax balance you might have forgotten about or have been putting off dealing with.

First things first, read that notice carefully. I mean, really dig into it. It’s going to give you the specifics of what the IRS thinks you owe and why.

Next up, if you’ve got any missing tax returns, now’s the time to file them. This might sound daunting, especially if you’re juggling studies, a job, or both. But the longer you wait, the more complicated it can get. There are plenty of resources out there to help you file, and getting this sorted sooner rather than later can save you a lot of headaches down the road.

Now, about paying your balance. The best move is to pay in full to stop any more interest and penalties from piling up. But let’s be real, if you could pay in full, you probably wouldn’t be here. The good news is the IRS offers options for folks who can’t pay all at once. You can make partial payments or set up a payment plan, especially if you owe less than $50,000. It’s pretty straightforward to set up online, and it can give you some breathing room to pay off your balance over time without it looming over you.

But what if you’re really in a tight spot, financially speaking? Maybe you’re dealing with job loss, unexpected expenses, or you’re just not making enough to cover everything. The IRS does have options for those experiencing significant financial hardship. They can temporarily halt collection on your account or even settle your debt for less than the full amount if you qualify. It’s worth looking into if you’re feeling overwhelmed.

Now, onto penalties and interest. Nobody likes them, but they’re a reality when dealing with unpaid taxes. However, there’s a bit of good news here. Due to the pandemic, the IRS granted penalty relief for specific tax years, which might reduce the amount you owe. It’s a small silver lining, but hey, we’ll take what we can get.

For those of you who are thinking, “But I already filed my returns, what gives?” If it’s been more than 10 weeks and the IRS still thinks you haven’t filed, you’ll need to resend those returns or get in touch with them. And if you’re questioning whether you need to file at all, there’s a handy tool on the IRS website to help you figure that out.

Lastly, if you’re due a refund but haven’t filed, you might be leaving money on the table. You have a 3-year window from the original due date to file and claim that refund, so don’t miss out.

I know dealing with the IRS can feel intimidating, especially if you’re just starting to navigate your financial independence. But remember, ignoring these notices won’t make them go away. Taking action, even if it’s just setting up a payment plan, can help you avoid bigger issues down the line.

And if you’re dealing with special circumstances, like fraud or identity theft, or you’re an innocent spouse caught up in tax drama, there are resources and protections in place for you. Don’t hesitate to use them.

So, there you have it. The LT38 notice might not be the letter you want, but it’s the letter you’ve got. And now, you’re a bit more equipped to handle it. If you’ve dealt with IRS notices before or have tips for managing tax-related stress, drop a comment below. Your advice could really help someone out.

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Money Instructor does not provide tax, legal, or investment advice. This material has been prepared for educational and informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or investment advice. You should consult your own tax, legal, and investment advisors regarding your own financial situation. Although the information has been researched and vetted beforehand, it may not be current at the time of viewing. Please note, the context of financial investments can be complex and dynamic, necessitating professional advice tailored to your unique circumstances.

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Child Tax Credit UPDATE 2024 | Families Struggle as Senate Battles

Learn about the Child Tax Credit and the proposed changes in 2024, and how these could impact families and your tax filing and refund. Discover the debates, legislative processes, and how you can influence policy for family benefits.

Here, learn about the Child Tax Credit, part of the Tax Relief for American Families and Workers Act of 2024. Dive into the Child Tax Credit’s journey, uncovering its origins to its significant boost in 2021 and the recent legislative changes proposed in 2024. Discover the potential of policy changes to lift children out of poverty, the debate surrounding eligibility and its impact on unemployment, and the practical advice from the IRS Commissioner on tax filing amidst these updates. Understand the Senate’s role in the bill’s progress, the controversy causing delays, and how these changes could offer financial relief to families. Plus, learn how your involvement can influence the future of the Child Tax Credit, shaping policies that directly benefit families nationwide. This information is for anyone interested in finance, politics, or family welfare, wanting to understand how these changes could affect their tax returns and financial planning.

Child Tax Credit UPDATE 2024 | Families Struggle as Senate Battles

Child Tax Credit UPDATE 2024 | Families Struggle as Senate Battles

Have you ever thought about how a change in tax laws could directly benefit your family and millions of others across the nation? That’s exactly what’s happening with the Child Tax Credit, a hot topic that could mean more money in your pocket. Why is this so important, and what impact could it have on you? Let’s dive in and find out together.

So, where did the Child Tax Credit come from, and how has it evolved to potentially become a major player in reducing poverty today? Originating in the 80s, this credit was designed to support families by reducing their tax bills. Fast forward to 2021, and it was temporarily boosted to as much as $3,600 per child, showing us the power of policy to support those in need. But with this boost now expired, you might be wondering, what’s next? The answer lies in the latest developments, where the House of Representatives has passed a new bill aiming to modify the Child Tax Credit. Let’s unpack this a bit more.

Now, the big question: Can this new modification really lift 400,000 children out of poverty? The House certainly thinks so, having passed a $78 billion tax bill that includes tweaks to the Child Tax Credit aimed at helping low-income families. But here’s the twist—the bill is now stuck in the Senate. What’s causing the hold-up, and what does this mean for its future? The controversy lies in a range of concerns from eligibility for undocumented parents to fears about encouraging unemployment. This debate is crucial, as the outcome will directly impact the effectiveness of the Child Tax Credit.

With all these debates and potential delays, what should you do about filing your taxes? The IRS Commissioner has stepped up with some advice: Don’t wait on these legislative changes to file your taxes. The IRS will adjust your returns if the bill passes. But is this the best move for you? Most likely Yes, because it ensures that you’re in line for any potential refunds without delaying your tax filing process.

Looking ahead, what can we expect for the Child Tax Credit? Its future is more than just a policy debate—it’s about real help for families at a time when they need it most. With the Senate’s decision pending, the potential for positive change is huge. But what exactly does this mean for you and your family? It means staying informed and prepared, as these changes could offer significant financial relief.

Now, how can you play a part in this ongoing story? Your voice matters. Engaging with your representatives and staying informed can influence the future of the Child Tax Credit. But why is this important? Because your involvement can help shape policies that directly benefit families across the country. Stay tuned for updates, and don’t hesitate to get involved in this critical discussion.

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Money Instructor does not provide tax, legal, or investment advice. This material has been prepared for educational and informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or investment advice. You should consult your own tax, legal, and investment advisors regarding your own financial situation. Although the information has been researched and vetted beforehand, it may not be current at the time of viewing. Please note, the context of financial investments can be complex and dynamic, necessitating professional advice tailored to your unique circumstances.

Categories Economics, Taxes
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Unexpected Inflation | Navigating Higher Prices on a Budget

Learn how inflation and interest rates impact your daily life and budget, based on the latest Consumer Price Index (CPI) report. Discover practical strategies to save money and stretch your dollar further in today’s economy.

Information on how inflation affects your daily budget, from grocery shopping to managing household expenses, and discover strategies for stretching your dollar further amid rising costs. Get insights into how interest rates impact loans and savings, and find out what the CPI report means for future financial planning. Whether you’re a young adult, part of a family on a tight budget, or simply looking to make smarter money moves in an unpredictable economy, this guide offers practical tips and essential knowledge for navigating inflation and interest rate changes.

Unexpected Inflation | Navigating Higher Prices on a Budget

Unexpected Inflation | Navigating Higher Prices on a Budget

You’re at the grocery store, your cart half full, but when you check the price at the register, it feels like you’re buying the whole store! Welcome, my friends, to the reality of rising inflation and interest rates, a scenario many of us are facing in today’s economy. Whether you’re a person stretching your last dollar, or a family on a tight budget, understanding inflation and interest rates is crucial for managing your finances effectively. Today, we’re breaking down the latest on inflation and interest rates from the Consumer Price Index report and how it impacts you.

Inflation’s been on the rise, making everything from groceries to gas more expensive, and this latest CPI report confirms it’s not slowing down anytime soon. This matters because it directly affects how far our money goes each month. High inflation means our dollars buy less, and when interest rates are high, loans and credit get more expensive too.

The report tells us inflation increased by 0.3% last month, a bit more than expected, bringing the yearly increase to 3.1%. Even when you look at core CPI, which leaves out food and energy to give a smoother picture, the news isn’t great—it’s up more than anticipated.

A big part of this jump comes from housing costs, which weigh heavily in the CPI. But don’t hit the panic button just yet. The Fed, which controls interest rates, is holding out for a clear sign that inflation’s backing down before lowering rates.

You might wonder, “How does this affect my daily budget and any chance I have of saving?” It’s complicated. On one hand, fading hopes for lower interest rates might worry those of us hoping for relief on debts or mortgages. On the other, some experts believe we’re on a path to eventually lower inflation, meaning the current spike might not derail long-term trends.

Despite the shock from this report, there’s an expectation that housing costs, a major inflation driver, might begin to ease. Though the Fed may keep rates steady for now, we might still see cuts later if inflation cools.

The economy’s always got something up its sleeve, making it tricky to navigate. This latest update is a lot to digest, but it’s crucial not to lose sight of the broader picture. Inflation and interest rates are just two parts of a larger economic puzzle.

So, what can we take from all this? It’s a call to stay informed and keep a keen eye on economic trends. For those of us managing tight budgets or trying to save, understanding these economic indicators is vital. They help us make informed decisions, plan our finances better, and find ways to stretch our resources further.

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Money Instructor does not provide tax, legal, or investment advice. This material has been prepared for educational and informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or investment advice. You should consult your own tax, legal, and investment advisors regarding your own financial situation. Although the information has been researched and vetted beforehand, it may not be current at the time of viewing. Please note, the context of financial investments can be complex and dynamic, necessitating professional advice tailored to your unique circumstances.

Categories Budgeting, Debt & Credit, Investing and Financial Planning, Saving Money
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Tax Refund Schedule 2024 | IRS Status Update

Learn about the IRS tax refund schedule for 2024 and understand when you can expect your refund, including if you’re claiming EITC or ACTC. Get tips on using the IRS’s track my refund tools to monitor your taxes refund status and plan your finances.

When will I receive my Federal tax refund for 2024? You’ll learn the estimated dates for when the IRS processes refunds, including special considerations for those who file early and choose direct deposit, for those with and without dependents. Learn the expected wait times for paper returns and how claiming credits like the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) could affect your refund timing. Also, we’ll cover how to use the IRS’s ‘Where’s My Refund?’ tool to track your refund status after e-filing or submitting a paper return, and understand the impact of bank processing times and holidays. This is your guide to planning ahead and making informed financial decisions with your refund timeline in mind.

Tax Refund Schedule 2024 | IRS Status Update

Tax Refund Schedule 2024 | IRS Status Update

Today, let’s talk money, specifically tax refunds and the schedule of when you can expect that refund to hit your bank account.

So, you’ve diligently filled out all those tax forms and now you’re playing the waiting game, wondering, “Where’s my refund?” It’s a big deal, right? For many of us, that refund is more than just extra cash—it’s a lifeline for covering bills, stocking the fridge, or keeping the lights on.

So, what’s the expected timeline for receiving your refund in 2024? The IRS maintains that most refunds are issued within 21 calendar days. For those submitting paper returns, the wait can be longer, closer to 4 weeks or more.

Based on the information, here is a table of estimated dates when you might expect to receive your tax refund. The first column to look at is the date for when the IRS accepts your return, so if you filed by paper it will likely take longer for that to happen.

The estimated schedule for 2024 is pretty straightforward (remember these are estimates based on guidance.  Your date may differ). The sooner you filed, the quicker you’ll see your refund. If you filed by January 29th and chose direct deposit, you could have had your money as early as February 9th!

For taxpayers claiming the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC) in 2024, refunds are expected by February 27 at the earliest if the return is filed electronically and the refund is directed to a bank account, and no issues are detected.

The “Where’s My Refund?” tool will update by February 17 for early filers of these tax credits. It’s important to note that financial institutions’ processing times and federal or local holidays may influence the exact timing of the refund receipt.

To check on your refund, use the “Where’s My Refund?” tool on the IRS website. E-filers can access their refund status 48 hours after submission, while paper filers might need to wait up to four weeks. This tool provides a personalized refund date once the IRS processes and approves your return, including notifications on the receipt, approval, and dispatch of your refund.

Staying on top of your tax refund schedule means you can make smarter financial decisions. No one likes to be left in the dark, especially when it comes to money. So check those dates, use the tools available, and plan ahead.

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Money Instructor does not provide tax, legal, or investment advice. This material has been prepared for educational and informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or investment advice. You should consult your own tax, legal, and investment advisors regarding your own financial situation. Although the information has been researched and vetted beforehand, it may not be current at the time of viewing. Please note, the context of financial investments can be complex and dynamic, necessitating professional advice tailored to your unique circumstances.

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The Secret of Wealth: Earning vs. Paying Interest

Learn how to harness the power of interest to transform your finances, from smart investing to managing debt. Discover the secrets of earning through interest and the dangers of credit card balances to achieve financial freedom.

A lesson how Savvy Investors Use Interest to Build Wealth. Dive into the world of personal finance, focusing on the power of interest. You’ll learn the difference between earning and paying interest, highlighting how investing can grow your money through high-yield savings accounts and stocks. We’ll explore the risks of debt, especially from loans and credit card balances, and how they can trap you into paying more. The concept of compound interest, a way to make your savings snowball over time, will be broken down to show you how regular saving can lead to big gains. Finally, we’ll wrap up with strategies for balancing saving and managing debt, ensuring your money works for you and moves you towards your financial goals. This lesson is all about mastering interest to achieve financial freedom.

The Secret of Wealth: Earning vs. Paying Interest

The Secret of Wealth: Earning vs. Paying Interest

Let’s unravel a mystery that holds the key to your financial destiny: Interest. Mastering interest could be your secret to financial freedom.

Picture this simple yet profound truth: “Those who understand interest, earn it; those who don’t, pay it.” Far from just a clever phrase, this concept is a cornerstone of personal finance, often overlooked in our education.

Now, let’s delve deeper. Interest isn’t merely a line on your bank statement or a fee on your credit bill. It’s a potent financial force. Consider this: when you invest in a high-yield savings account or dive into the world of stocks and bonds, you’re essentially renting out your money and getting paid in interest. This is how the savvy ones earn through interest.

But beware, there’s another side to this. Taking loans or maintaining credit card balances? That’s when you’re on the paying end of interest. And for those navigating student loans or first-time credit use, this can be a slippery slope. Without careful management, interest costs can balloon, leaving you paying much more than you borrowed.

Let’s pivot to how you can make interest your ally. It’s all about striking a balance between smart saving and debt management. For instance, consider a savings account that generates interest. Regular deposits mean not just saving but also earning interest on those savings. And thanks to compound interest, it’s a financial snowball effect.

Flipping the script, managing debts is just as critical. Prioritize clearing high-interest debts quickly. This isn’t to say shun credit entirely; it’s a tool, but one that demands responsible use and strategic repayments to minimize interest burdens.

Here’s the essence: understanding and maneuvering through the world of interest is vital, especially in your formative financial years. By grasping how to maximize interest earnings and minimize interest costs, you’re steering your financial ship, not being steered by it.

It’s not only about the money you make but also how you manage it. With a keen grasp of interest, your hard-earned money can work effectively for you, propelling you towards your financial aspirations, be it a dream vacation, a new car, or a secure future.

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Money Instructor does not provide tax, legal, or investment advice. This material has been prepared for educational and informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or investment advice. You should consult your own tax, legal, and investment advisors regarding your own financial situation. Although the information has been researched and vetted beforehand, it may not be current at the time of viewing. Please note, the context of financial investments can be complex and dynamic, necessitating professional advice tailored to your unique circumstances.

Categories Debt & Credit, Financial Planning, Investing and Financial Planning, Saving Money
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Why Smart Investors Are Struggling | Broken Markets

Learn how the financial landscape is evolving and why even expert investors like David Einhorn of Greenlight Capital are adapting their stock market investing strategies. Discover the keys to thriving in a market increasingly dominated by passive investing.

In this video, you’ll navigate through the shifting terrain of the stock market, addressing the hurdles that seasoned investors encounter with the ascendancy of ETFs and passive investing strategies. Learn how the age-old tactics of value investing are undergoing scrutiny and the essential adjustments required to flourish in a stock market that’s introducing new norms. You’ll gain valuable insights from the story of investment authority David Einhorn of Greenlight Capital, who recalibrated his investment strategies in response to these market transformations. This conversation underscores the vital importance of adaptability, innovative strategic thinking, and enduring resilience in today’s unpredictable stock market climate. It’s designed to equip you with the understanding needed to tackle the complexities of contemporary investing, stressing the importance of a progressive investment mindset for securing financial triumph.

Why Smart Investors Are Struggling | Broken Markets

Why Smart Investors Are Struggling | Broken Markets

Are the markets broken? Why are even the smartest investors finding themselves at odds with the current market dynamics? Grasping the intricacies behind this phenomenon has the potential to radically transform your perspective on the financial landscape that envelops us.

Our story begins with a guy named David Einhorn. You might have heard of him. He’s this super smart investor, founder of Greenlight Capital, and he’s known for making some bold moves. Early in his career, Einhorn made headlines for calling out companies he thought were, let’s just say, not being entirely honest about their finances. Remember Lehman Brothers? Yeah, he was the guy raising red flags about them before they collapsed.

But here’s the thing. Even someone as sharp as Einhorn had to face the music when the markets started acting all weird. You see, he was a big believer in value investing—finding companies undervalued by the market and waiting for the rest of the world to catch on. It worked like a charm for years… until it didn’t. The market changed, and suddenly, his tried-and-true methods weren’t paying off like before. It got him thinking: what’s going on here?

After some soul searching and a lot of market analysis, Einhorn realized something crucial. The market wasn’t playing by the old rules anymore. The rise of passive investing, where funds just follow an index without trying to pick winners, was changing the game. It meant that a lot of the money flowing into stocks wasn’t trying to figure out which companies were the best. It was just… there, making the whole idea of value investing tougher to pull off.

But here’s where it gets really interesting. Einhorn didn’t throw in the towel. Instead, he adapted. He figured if you can’t beat ’em, join ’em—but in his own way. He started looking for stocks so undervalued that even in a market that felt a bit broken, they were too good to pass up. And guess what? It started to work. His fund began outperforming again, proving that even when things look bleak, there’s always a strategy out there.

Now, why does this matter to you and me? Well, it’s a powerful reminder that the financial world is always evolving. What worked yesterday might not work tomorrow. It’s not just about picking stocks or following the hottest trend. It’s about understanding the bigger picture, seeing where the market is heading, and being ready to adapt. Whether you’re managing a hedge fund or just trying to grow your savings, the key is to stay curious, keep learning, and never be afraid to change your approach.

So, as we wrap up, I want you to think about your own financial strategies. Are you holding onto ideas that might not fit the current market? Is there a place for a little more flexibility in your approach? Remember, it’s not about having all the answers right now. It’s about being open to asking the right questions and being ready to pivot when the time comes.

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Money Instructor does not provide tax, legal, or investment advice. This material has been prepared for educational and informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or investment advice. You should consult your own tax, legal, and investment advisors regarding your own financial situation. Although the information has been researched and vetted beforehand, it may not be current at the time of viewing. Please note, the context of financial investments can be complex and dynamic, necessitating professional advice tailored to your unique circumstances.

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No More Taxes on Social Security Benefits? Tax-Free Retirement

Learn about the future of Social Security and the latest reform proposal, the “You Earned It, You Keep It Act,” aimed at eliminating taxes and Social Security benefits to provide financial relief for seniors. Discover how this proposal intends to ensure the program’s stability by increasing contributions from higher earners.

Explore the newest changes in Social Security through this guide on retirement planning, highlighting how the “You Earned It, You Keep It Act” could revolutionize retirement savings by removing taxes on Social Security benefits. Learn how this pivotal shift aims to bolster the financial security of retirees by providing a vital increase in tax-free retirement income. Understand the plan to raise Social Security taxes on higher income earners to enhance the program’s long-term solvency and ensure its continued support. Delve into the implications of this policy on Social Security eligibility, the optimization of retiree benefits, and the assistance it offers to disabled persons and their families. Highlighted in this summary is the importance of utilizing Social Security calculators for planning the retirement age, grasping the effects of upcoming Social Security adjustments in 2024, and recognizing the importance of being well-informed about reforms and spousal benefits to safeguard the financial well-being of Americans in the future.

No More Taxes on Social Security Benefits? Tax-Free Retirement

No More Taxes on Social Security Benefits? Tax-Free Retirement

What if you could keep every dollar of your Social Security benefits without the IRS taking a slice?

Today, we’re tackling an important topic and a subject that has significant implications for millions across the nation, touching on the lives of current retirees, those approaching retirement, and future generations alike. We’re zooming in on a legislative development aimed at revamping Social Security, a fundamental pillar of American retirement planning. This isn’t just about tweaking the system; it’s about making substantive changes that aim to enhance the financial well-being of those who’ve dedicated decades to the workforce. Here we delve into the “You Earned It, You Keep It Act,”, a proposal set to transform how Social Security benefits are taxed and ensure the program’s durability for an additional 20 years.

This issue hits home for many of us. Whether you’re deep into your career, nearing retirement, or already enjoying your golden years, the prospect of Social Security benefits being taxed can seem like a harsh penalty for years of hard work. Currently, about 40% of beneficiaries find themselves paying taxes on their Social Security income, which can significantly diminish the retirement savings that many depend on. The idea of contributing to Social Security throughout your career, only to be taxed on these benefits later, underscores a need for change.

Proposed Legislation

The proposed legislation by Rep. Angie Craig seeks to address this by eliminating federal taxes on Social Security benefits starting in 2025. This bold move is designed to provide immediate financial relief to seniors, ensuring that more Americans can fully benefit from the fruits of their labor without the burden of additional taxes. But the bill doesn’t stop there; it introduces a forward-thinking approach to funding these changes. By applying a Social Security tax to all earnings above $250,000, it aims to shore up the program’s finances, targeting contributions from higher earners to maintain the system’s viability.

Contributions from High Earners

The concept of asking those with higher incomes to contribute more might stir debate, yet it underscores a commitment to sustaining a program that serves as a lifeline for many. Social Security supports not just retirees but also disabled individuals, survivors, and families who have lost their primary earners. It’s a testament to our collective responsibility to ensure that this critical safety net remains strong for those who need it most.

Extends Social Security Solvency

Stephen Goss, the chief actuary of the Social Security Administration, has indicated that this legislation could extend the program’s solvency by an impressive two decades. Without such reforms, the Social Security trust fund faces the risk of depletion by 2033, a scenario that could result in reduced benefits for recipients. This proposal, therefore, is not just about tax relief; it’s a strategic move to secure the future of Social Security, pushing back against looming financial challenges and ensuring that it continues to serve American families effectively.

Discussions around tax reform, especially concerning Social Security, are inherently complex and can provoke a range of opinions. However, the “You Earned It, You Keep It Act” presents an opportunity to rethink our approach to supporting retirees and other beneficiaries. This isn’t about penalizing success; it’s about reinforcing a foundational element of our social safety net, ensuring that it remains robust and responsive to the needs of all Americans.

So, this legislation represents a pivotal moment in our ongoing dialogue about Social Security and its role in American society. It’s a call to action for policymakers and the public to engage in meaningful discussions about how we can collectively address the challenges facing this vital program. Whether this bill passes in its current form or serves as a catalyst for further debate, the importance of staying informed and proactive in shaping the future of Social Security cannot be overstated.

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How to Fill Out Schedule C Form 1040 for 2023 | Taxes 2024

Learn how to complete Schedule C for IRS Form 1040 Sole Proprietorship, ensuring you report your business income, expenses, and deductions correctly. This step-by-step guide provides essential tips for self-employment, freelancers, independent contractors, small business owners, and online entrepreneurs to navigate tax season.

A lesson on managing your taxes with our walkthrough on Schedule C. Learn the significance of accurate income, expense, and deduction reporting for tax filing. We’ll cover the importance of gathering key documents like financial statements, receipts, and bank statements, along with specialized records such as mileage logs and inventory for businesses selling products. Discover how to categorize your business accurately with the correct codes and choosing the right accounting method. Uncover reporting business income and the role of detailed expense tracking in maximizing your deduction, including home office, vehicle, and others. Also highlights the process for calculating the cost of goods sold for product-based businesses and the impact of your net profit or loss on taxable income.

How to Fill Out Schedule C Form 1040 for 2023 | Taxes 2024

How to Fill Out Schedule C Form 1040 for 2023 | Taxes 2024

Here we will walk through how to complete Schedule C for the IRS Form 1040, making sure you have the guidance needed to understand it yourself.

Whether you’ve launched your dream business, started freelancing, or opened an online store, handling your taxes correctly is crucial. Today, we’re walking through Schedule C step by step, making sure you know how to report your income, expenses, and deductions accurately.

Before we dive into the specifics of filling out Schedule C, it’s essential to gather all necessary documents and get your paperwork in order. This preparation step is crucial for a smooth and accurate filing process. You’ll need several key pieces of documentation:

Financial Statements: This includes your income statement (or profit and loss statement) and a balance sheet if available. These documents provide a comprehensive overview of your business’s financial activity and are vital for accurately reporting income and expenses.

Receipts and Invoices: Collect all receipts and invoices related to your business expenses. This documentation is necessary for substantiating the deductions you claim on Schedule C.

Bank and Credit Card Statements: These statements can help verify the transactions recorded in your financial statements and ensure you account for all business-related income and expenses.

Mileage Log: If you’re claiming vehicle expenses, a detailed mileage log showing the date, mileage, and purpose of each trip is required to calculate your deduction correctly.

Inventory Records: For businesses that sell products, detailed inventory records are needed to accurately report the cost of goods sold.

1099 Forms: If you’ve received any 1099 forms from clients or customers, or if you’ve issued any to contractors, have these on hand.

Previous Year’s Tax Returns: These can provide valuable information and help ensure consistency with how you report income and deductions from one year to the next.

Schedule C Instruction Booklet: Perhaps most importantly, obtain the latest Schedule C instruction booklet from the IRS website. This booklet contains valuable information, including explanations of each part of the form, definitions of business expenses, and the business codes required for box B. It serves as a comprehensive guide to help you understand and accurately complete your Schedule C.

Having these documents and resources ready before you start filling out Schedule C will make the process much more manageable. It ensures that you have all the necessary information at your fingertips, reducing the likelihood of errors and omissions. Plus, it can help you feel more confident about the accuracy of your tax return, knowing that you’ve thoroughly prepared and reviewed all relevant information.

Now we can get started.

First off, at the very top of Schedule C, you’ll write your name and Social Security number. This part is straightforward—just personal identification to tie you to your business.

Now, onto the next section, where you’ll detail your principal business or profession. This is where you spell out what you do. If you’re a freelance graphic designer, say so. This helps the IRS understand the nature of your work. If you’re a freelance graphic designer, there’s a code for that. Tutoring math? There’s a code for that too.

Next, you’ll need to enter your business code in box B. These codes are found in the Schedule C instructions and help categorize your business accurately for tax purposes. It’s like telling the IRS, “Here’s where my business fits into the broader economy.”

If you have a business name, enter it in box C. If not, no worries—it’s optional. For box D, if you have an Employer Identification Number (EIN), you’ll enter it here. If you’re a sole proprietor without employees, you might not have one, and that’s okay.

Your business address goes in box E. If you’re working from home, your home address is your business address.

Box F asks about your accounting method. Most small business owners use the cash method, reporting income when received and expenses when paid. It keeps things simple and straightforward.

In box G, confirm your active participation in the business. For box H, indicate if this is the business’s first year. Box I asks if you made any payments that require you to file Form 1099. Remember, if you paid anyone more than $600 for services, you likely need to file a 1099.

Moving on to Part 1, where you report your income. Line 1 is for gross receipts or sales. Essentially, how much money did your business make? If you had any returns or allowances, you’d subtract those on line 2.

Line 4 asks about the cost of goods sold, which you’ll calculate in detail later in the form. This is relevant if you sell physical products and need to account for the cost of those goods.

Next, Part 2, Lines 8 through 27 cover expenses, and this is where accurate record-keeping pays off. You’ll detail everything from advertising costs to wages paid. Don’t overlook the home office deduction if you use part of your home regularly and exclusively for business. This can be a significant deduction for many home-based businesses.

Vehicle expenses are reported if you use your car for business. You have the option of deducting actual expenses or using the standard mileage rate. Remember, only business-related mileage counts!

In Part III, you’ll dive into the cost of goods sold if applicable. This includes inventory at the start and end of the year, purchases, materials, and labor costs. It’s essential for businesses that manufacture products or purchase goods for resale.

Then back on page 1, Finally, after tallying all income and subtracting expenses, you’ll arrive at your net profit or loss. This figure is crucial as it directly impacts your taxable income and potentially your tax bill.

Filling out Schedule C might initially seem like a daunting task, but breaking it down step by step demystifies the process. This form is your way of telling the financial story of your business to the IRS, ensuring you pay the correct amount of tax while taking advantage of legal deductions to minimize your liability.

Thank you for sticking with me through this walkthrough of Schedule C. Remember, understanding and correctly handling your business finances is a powerful tool in your entrepreneurial journey. Here’s to your continued success and navigating the tax season with confidence!

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Money Instructor does not provide tax, legal, or investment advice. This material has been prepared for educational and informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or investment advice. You should consult your own tax, legal, and investment advisors regarding your own financial situation. Although the information has been researched and vetted beforehand, it may not be current at the time of viewing. Please note, the context of financial investments can be complex and dynamic, necessitating professional advice tailored to your unique circumstances.

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