October 23, 2020

Category: Money Management

News Bulletin: More Than 600,000 Jobs Added, Gas Taxes Spiking, IRS Interest Checks to be Sent, And More

News Bulletin: More Than 600,000 Jobs Added, Gas Taxes Spiking, IRS Interest Checks to be Sent, And More

















US Economy Sees 661,000 Jobs Added Back And Unemployment Down According To September Jobs Report | Yahoo! Finance


  • According to the Labor Department’s September jobs report, the U.S economy saw another 661,000 added jobs in September.1 The unemployment rate dipped from 8.4% in August to 7.9% in September, continuing its downward trend and signaling modest recovery in the labor market. However, the number of Americans who have permanently lost their jobs (as opposed to being temporarily furloughed) has risen to 3.8 million, a total increase of 2.5 million since February.1

 


Gas Taxes In Some States Spike During COVID To Offset Decreased Demand For Gas | USA TODAY


  • Because less Americans are driving during the pandemic due to working from home or social distancing, several states have seen a shortfall in revenue from taxes on gasoline that are meant to fund road repairs. This decrease in revenue has led some states to increase their fuel tax to offset the shortfalls. For example, New Jersey raised its state fuel tax from 30.9 cents to 40.2 cents for gasoline and from34.9 cents to 44.2 cents for diesel fuel. Meanwhile, the reduced demand for gas due to COVID-19 has lowered the average price of gasoline to $2.18 a gallon according to AAA as of late September.2 

 


IRS Sends Out Interest Checks To Some Late Tax Filers | CNET


  • As many as 13.9 million taxpayers will receive an additional payment from the IRS this year. The IRS pays interest on tax refunds to taxpayers who timely file their federal income tax returns. Starting on April 15th every year, interest begins to accrue on your refund until the payment is issued. 3 Because Tax Day was postponed to July 15th this year and the IRS has such a high backlog of returns right now, many eligible taxpayers who waited to file their taxes until later in the year will have accrued much more interest than normal. The IRS pays 5% annual interest, compounded daily from April 15th through June 30th. After July 1st, the rate decreases to the legally prescribed rate for the third quarter of 3%.4 The interest amount, averaging $18, will be sent out as a second paper check or direct deposit. While this may be a welcome bit of extra money for many Americans, the interest on tax refunds is taxable, so those who receive it will have to pay taxes on it in the next tax year.

 


Walmart Announces “Black Friday Deals for Days” | Walmart.com


Archives