Families battered by the pandemic recession soon may discover that the tax refunds theyâre counting on are dramatically smaller â or that they actually owe income tax. Congress offered a partial solution, but the fix hasnât been widely publicized, consumer advocates say.
Refunds are crucial to many lower- and moderate-income households, which use the money to catch up on bills and medical treatments, pay down debt and boost savings.
But the unemployment insurance that kept many people afloat last year may cause problems at tax time this year. Unemployment benefits are taxable, but tax withholding is typically voluntary â and many people who lost jobs either didnât know their unemployment checks would be taxed, or they decided against withholding. (Relief checks, such as the $1,200 sent out last year, are not taxable.)
Commonwealth to Address Systemic Financial Insecurity for Non-Traditional Workers
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Income Volatility, Exacerbated by COVID-19, Remains a Top Issue for Gig Workers
The changing nature of work and proliferation of non-traditional workers has created new challenges in enabling worker financial security. BOSTON (PRWEB) February 16, 2021 Today, national nonprofit Commonwealth (buildcommonwealth.org) announced a new project to address the financial insecurity of the growing non-traditional workforce, who face challenges around income sufficiency and stability. This initiative, supported by the Target Foundation, will address the changing nature of work and the unique financial challenges of non-traditional workers, which disproportionately affect lower-income Black, Latinx and female workers and have been exacerbated by COVID-19. Through research, innovation, and influence, this project will drive sustain
Lost a job or income? Don’t lose access to key tax credits
Americans who lost their job or some of their income in 2020 should pay attention to a new, one-time provision that ensures they don’t lose access to valuable tax credits as well.
The “lookback” rule allows taxpayers to use either their 2019 or 2020 income, whichever is most beneficial, in order to get the most out of the Earned Income Tax Credit and the Child Tax Credit. These are considered the two most valuable tax credits for low- and moderate-income working families.
Together, they lift more working-age people out of poverty than any other government program, said Elaine Maag, a principal research associate at the Tax Policy Center.
Voya Becomes First Retirement Company to Join BlackRock’s Emergency Savings Initiative to Advance Workplace Emergency Savings
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Voya Collaborates with National Nonprofit Commonwealth to Advance Workplace Financial Security through Systemic Change
As American workers face ongoing economic hardship and an increasingly urgent savings crisis, these changes to the financial system infrastructure will provide a critical foundation to financial security for all Americans. BOSTON (PRWEB) February 02, 2021 In a major step forward in advancing systemic change in the financial sector, retirement company Voya Financial, one of the leading retirement plan providers in the U.S., has joined BlackRock’s Emergency Savings Initiative. Voya will collaborate with the national nonprofit Commonwealth, an industry expert partner in BlackRock’s Emergency Savings Initiative, to provide tools and opportunities for indiv