Taxes

The Tax Deadline Is Almost Here: Do This Now!

May 14, 2021 By Tamila McDonald Leave a Comment

While tax day is usually on April 15, due to the COVID-19 pandemic, the federal (and some state) filing deadlines were changed to May 17, 2021. That means the filing due date is almost here and if you haven’t submitted your taxes yet, you need to take action. If you aren’t sure what you need to handle, here’s what you should do to make sure you meet the tax deadline.

Tackle Your Federal (and State) Returns

If you have everything you need to file, submit your federal and state tax returns by May 17, 2021. Filing a return late comes with some serious penalties, even if you are only a bit behind the deadline.

Ideally, you’ll want to file electronically. This gives you confirmation that you submitted your tax return on time, creating a level of protection. Plus, it’ll process faster, which works in your favor, especially if you’re owed a refund.

When it comes to state returns, it’s important to note that they may have separate deadlines. For some states, that deadline is technically already past, so you should file quickly to minimize any penalties. Others align with the federal deadline, including this year’s extended ones. While a few give residents more time, by filing now, you make sure you won’t forget.

Apply for a Tax Extension

If you legitimately can’t submit your tax return by May 17, 2021, then you should file for an extension. Applying is completely free and is surprisingly straightforward.

In most cases, all you’ll need to do is submit a Form 4868 to the IRS, and you’ll automatically get an extension. With that in place, you’ll have until October 15, 2021, to file your individual tax return. Plus, you’ll avoid failure-to-file penalties, which can be substantial.

Just be aware that if you file for an extension and you owe money, your payment due date isn’t extended. That payment still needs to arrive by May 17, 2021. Otherwise, you’ll face some penalties.

However, if you’ll either break even or end up with a refund, there’s usually no financial downside to delaying your filing. In some cases, it may even work in your favor. For example, it could give you extra time to find documents to prove you are eligible for credit or to wait for the late arrival of a critical tax form, such as a missing or corrected Form 1099 or Schedule K-1.

Send More Money to Your IRA

In many cases, the cutoff for funding your IRA for the current filing year is tax day. For 2020, that means you can make IRA contributions as late as May 17 and have them count toward your 2020 taxes.

If you haven’t already maxed out your 2020 IRA contributions, doing so could work in your favor. If you have a traditional IRA, those contributions may be tax-deductible, allowing you to reduce your tax burden before you finish filing.

For lower-income households, stashing money in an IRA could also make you eligible for the Saver’s Credit. This can also reduce your tax burden, as the credit can be worth as much as $2,000.

Otherwise, maxing your any IRA for 2020 could be a smart move. It may give you a chance to save more overall, as you’ll get a refreshed contribution limit for 2021.

Fund Your Solo 401(k) or SEP IRA

If you’re self-employed and have a Solo 401(k) or Simplified Employee Pension (SEP) IRA, you also have until May 17, 2021, to make contributions that apply to the 2020 tax year. In fact, if you file for an extension, you actually get until October 15, 2021, to fund one of those plans.

In many cases, these contributions can be deductible, at least partially. With a Solo 401(k), a portion of your “employer” contributions are considered business expenses. With a SEP IRA, there are deduction options, as well.

Contribute to Your 2020 HSA or MSA

Another deadline that got extended involves contributing to your 2020 health savings account (HSA) or medical savings account (MSA). Both of those can be funded until May 17, 2021, giving you more time to set money aside and potentially secure a deduction for your 2020 taxes.

Before you contribute more, you want to make sure you haven’t reached the contribution limit. That way, you’ll get a bigger tax benefit now and still have room to set money aside with 2021 contributions.

File Schedule H for Household Workers

If you have a qualifying household worker – like a nanny, landscaper, or maid – you may need to file a Schedule H by May 17, 2021. This is crucial for addressing employment taxes associated with paying these kinds of household professionals.

Now, not everyone who brings in household workers needs to file Schedule H. If you pay a bill for services through a company and aren’t paying the worker in cash wages, you may not have this responsibility. However, if you hire the worker independently, you may need to go down this road.

If you aren’t sure, it’s wise to discuss the situation with a tax professional. They can help you gauge your relationship with the household worker, ensuring you handle everything correctly.

Snag Your Unclaimed 2017 Refund

If you didn’t file your 2017 tax return and are owed a refund, you have until May 17, 2021, to complete your 2017 and snag that unclaimed money. If you don’t have your 2017 tax documents, you can request an income transcript from the IRS.

The transcript contains your reported wage information, which may be all you need to file. If you don’t handle this by May 17, 2021, you’ve missed the deadline to claim that refund.

Did you wait until the tax deadline to file, or have you already tackled it? Can you think of any other tips that might help filers as they finish up their taxes? Share your thoughts in the comments below.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

Control and Tax Benefits of ETFs

May 8, 2021 By Max Erkiletian Leave a Comment

More investors are seeking control and tax benefits of ETFs. And the rising tide of money pouring into ETFs may soon become a tsunami. As a result, you may want to catch the wave.

ETFs have been a popular way to invest since their inception in the early 1990s. Today, there are over 7,600 ETFs bulging with trillions of investment dollars.

What Is an ETF

An ETF (Exchange-Traded Fund) is a security that tracks an index, commodity, bonds, a sector, or other assets. It owns the underlying assets and divides ownership of those assets into shares which investors buy.

A major difference between ETFs and mutual funds is that ETFs are traded on an exchange such as stocks. As a result, an ETF’s price may fluctuate throughout the trading day. Mutual funds, on the other hand, are traded once daily after markets are closed.

Low operating costs, resulting in no or low fees, have made ETFs popular. In addition, they offer diversification, because many ETFs invest in an index such as the S&P 500. However, some ETFs focus on a single industry, which limits diversification.

Flow Goes to ETFs

According to Morningstar, an investment research and management firm, in eight of the last 10 years, more investor money has gone into ETFs than mutual funds. In fact, over $900 billion has left mutual funds and $1.8 billion has gone into ETFs in that time.

ETFs function much like mutual funds in that they have investment portfolios. On the other hand, ETFs are more liquid and more easily traded than mutual funds.

The Tax Appeal

The popularity of ETFs is expected to mushroom in the years to come. That is due, at least in part, to wealthy investors seeking the control and tax benefits of ETFs.

President Joe Biden has proposed raising the top income tax rate for people making over $400,000 a year from 37 percent to 39.6 percent. In addition, he wants to tax long-term capital gains and qualified dividends at the ordinary income tax rate of 39.6 percent on income above $1 million.

The prospect of higher taxes has sent wealth investors looking for ways to earn high returns with low or no tax consequences. They have found ETFs.

Tax Benefits of ETFs

The way ETF shares are sold has the interest of wealthy investors. Here’s how it works.

If you own shares in a mutual fund and want out, the fund manager has to sell your shares on the open market. As a result, you may have to pay taxes on any profits.

With an ETF, you sell your shares directly to another investor. That way, neither you nor the fund has made a taxable transaction.

No Commissions

Well, you say, aren’t we happy for Richie Rich and his friends. But I’m not in the top tax bracket. Why would I be interested in ETFs?

Good question. You might like ETFs because most trade commission-free, have lower operating costs, and are more flexible. That’s the control part of the ‘control and tax benefits of ETFs’.

Mutual Funds Converting to ETFs

ETFs are becoming so popular, you may already be investing in one without taking any action. That’s because some mutual funds have converted to ETFs.

History was made in late March when two Guinness Atkinson Asset Management mutual funds were converted to ETFs. In addition, Dimensional Fund Advisors has announced six tax-managed funds will convert to ETFs. That will begin June 11, when four funds will make the transformation. More conversions are expected, according to Ben Johnson, Morningstar’s director of global ETF research.

“Many of the advantages of converting a mutual fund to an ETF are synonymous with the advantages of the ETF wrapper. It’s all about where these funds will ultimately land, the packaging, the form that they’ll ultimately take. And I would argue that chief amongst those is the relative tax efficiency of the ETF packaging versus a mutual fund packaging”, said Johnson in a recent Morningstar podcast. “They avoid unlocking capital gains distributions, which have become very frequent, and in some cases, very large in magnitude within the realm of open-ended mutual funds in recent years. That’s a big benefit that would arise from a mutual fund to ETF conversion.”

Tax Impact of Mutual Fund Conversion

Cashing out your mutual fund can trigger a tax bill. However, that is not the case in a mutual fund conversion says, Johnson.

“The conversation of a mutual fund to an ETF will not be a taxable event for mutual fund shareholders”, said Johnson. “Their basis will remain intact. What, ultimately, investors will enjoy is effectively a form of tax deferral that they wouldn’t otherwise benefit from if that fund were to remain a mutual fund, seen continued in some cases in persistent outflows, which in recent years have resulted in these large and regular capital gains distributions.”

Everybody in the Pool?

You might think all mutual funds would convert to ETFs considering the lower costs and tax benefits. However, some mutual funds just can’t do that.

Many mutual funds have several share classes distributed among multiple platforms. Those elements make conversion difficult. Still, other funds are in pension and other retirement programs. They can not convert to ETFs.

Bottom Line

So, are the heydays of mutual funds over? The heydays, yes, but they will not disappear. Retirement accounts such as 401(k)s and other retirement accounts will probably continue using mutual funds. After all, they are already tax-advantaged. In addition, recordkeeping is easier for managers.

However, for individual investors, the future points toward ETFs.

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If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started. Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.

Weekly Financial Wrap: The Allure of Munis, Crypto Mining and the Open Road

May 7, 2021 By Max Erkiletian Leave a Comment

Surge in Municipal Bonds

Municipal Bonds have never been sexy unless you like steady tax-free income. Interest from munis is free from federal and state taxes if you are a resident of the state where the bonds are issued.

President Biden’s planned tax hikes have been credited with sending more money into munis. That has resulted in higher returns. In fact, municipal bonds have outperformed treasury bonds for seven straight months.

More To Come

With more cash pouring into municipal bond mutual funds, most analysts see strength in the market.

In a March report, Bank of America (BofA) concluded: “The American Rescue Plan, along with President Biden’s forthcoming infrastructure plan, forms the basis of the golden decade that we expect for muni market issuers through 2030.”

Positive Impact of Federal Aid

State and local governments are receiving $350 billion in aid from the $1.9 trillion stimulus plan signed into law on March 11 by President Joe Biden. As a result, S&P Global Ratings and Moody’s Investors Service upgraded their credit outlook for state and local governments from negative to stable.

Impact of Interest Rates

Earlier this year, treasuries fell on interest rate fears. However, municipal bonds rose. Certainly, municipals tend to do well when interest rates increase.

Are Munis For You?

Tax-free interest is appealing to high-income earners. But what about us average types?

Even if you’re not in the top tax bracket, municipal bonds may help with tax-free income. If your bond(s) are in your state, the interest they pay may be free of state and local states. If you live in a high-tax state, such as California or New York, that could be significant.

In addition to tax advantages, munis are safe, especially if you stick to high-rated bonds. For that reason, many retirees use municipal bonds to supplement their incomes.

Bottom Line

If you are looking for a reliable source of investment income with tax benefits, munis are a good option to explore. However, if you have a lot of time for growth, munis are not a good choice.

Travel Expectations

With the increase in vaccinations, more Americans are eyeing a vacation, according to Booking.com, a travel planning and reservation site. However, some travel options are limited.

Just over 71 percent of those surveyed by Booking.com say the roll-out of vaccines has made them more optimistic about traveling in 2021. In addition, 60 percent say they now view travel and vacations as more important than they did before the pandemic.

The result is that more Americans are planning to travel this summer than last year.

Taking Flight

Air travel began to pick up over the end of the year holidays and continued over spring break. The Transportation Safety Administration (TSA) has recorded over one million travelers a day since March 11.

Over 67 percent of Americans plan to travel this summer, according to Tripadvisor, an online travel site. That’s an increase of 17 percent.

Cruising

Cruise lines are cautiously setting sale again. However, bookings are being limited to comply with Center for Disease Control (CDC) restrictions. In addition, Spring cruises have been for rivers and coastlines in the United States. Caribbean cruises are scheduled for mid-summer.

On the Road Again

While airline business is picking up, many Americans are planning to travel by car, according to a TripIt survey.

“According to our survey data, 83 percent of respondents said they’d be ready for a road trip with a personal car by June,” stated the TripIt Survey. “60 percent of respondents said they’d be ready to take a road trip with a rented car or RV by June. That’s more than twice as many travelers expressing readiness to take a road trip with their own car versus boarding a domestic flight.”

Control and Tax Benefits of ETFs

There is a monumental shift from mutual funds to ETFs. Many high-income investors like the tax benefits of Exchange Traded Funds, but there are more reasons investors like them.

SA will explore this trend in Sunday’s edition.

Better Than Bitcoin?

Undoubtedly, you have watched or participated in the Bitcoin bull market. The cryptocurrency has jumped 525 percent over the last 12 months. However, there is another cryptocurrency investment that has far outperformed Bitcoin.

Riot Blockchain has gained 8,000 percent over last year. What is Riot Blockchain? It is a bitcoin mining company. Likewise, other crypto mining companies, such as Hive Blockchain and Marathon Digital Holdings have also posted substantial gains.

Crypto Mining

Crypto mining companies, sometimes called farms, use high-powered computers to solve complex math problems. Subsequently, bitcoins are produced and placed in circulation.

“Bitcoin miners form the core backbone of Bitcoin’s blockchain,” according to market research firm Fundstrat. “In order to secure the Bitcoin ledger of transactions, miners burn electricity to computer-generated guesses aiming to solve cryptographic puzzles. The first miner to solve the puzzle receives the right to mine the next block and collect the associated block reward (6.25 Bitcoin subsidy and transaction fees) every ten minutes.”

With bitcoin topping $57,000, most of this week many retail investors find the cost of investing in the cryptocurrency prohibitive.

How To Invest

Another option for investing in bitcoin is by buying shares in a mining company. In addition, shares in mining companies are relatively cheap. Most are trading below $50 a share.

There is upside potential for mining stocks during the current cryptocurrency bull market. However, just as the currencies they mine can rise and fall dramatically, so can mining companies.

One way to limit risk is through a diversified mutual fund or ETF. However, until recently, there were no funds with mining interests. That changed last month when several ETFs began offering crypto mining as part of their portfolios.

A Word of Caution

These new mining stocks may rise high. However, they can also drop quickly. This is not where you put your retirement funds or money needed for other long-term goals.

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You May Have an Unclaimed Tax Refund – Here’s How to Find It!

May 3, 2021 By Jenny Smedra Leave a Comment

Did you know that the federal government may actually owe you money? Every year, American workers file and pay their federal and state taxes. If you are one of the lucky ones, you will receive a refund if you paid more than your fair share. However, some taxpayers have federal income tax refunds that they never claimed.

According to the IRS, there is currently more than $1.3 billion in unclaimed tax refunds just waiting to be distributed. For the 2017 fiscal year alone, there are approximately 1.3 million people who failed to file and get their refund. If you believe you might be one of these people, you will need to act fast to get your money. The clock is ticking though, so here is how you can find out if you have an unclaimed tax refund.

Why Would I Have an Unclaimed Tax Refund?

Although it seems strange that people would not claim their refunds, it can happen for several reasons. For example, some people are not required to file returns if their gross income is below the threshold for age and filing status. However, if your employer still withheld taxes from your paycheck, you may have an unclaimed tax refund.

Another reason it happens is when taxpayers qualify for the Earned Income Tax Credit, but fail to include it on their return. This refundable tax credit exists specifically to reduce the tax liability for low-income earners. If you are eligible to claim this credit, it offsets anything you may owe, helping you keep more of your hard-earned money.

If the credit is more than you owe, or you owe nothing at all, you are likely among those who have unclaimed money. Unfortunately, the only way to get the credit and your unclaimed tax return is by filing your annual return.

Lastly, taxpayers who have refunds marked as ‘undeliverable funds’ may also have unclaimed tax returns waiting for them. This occurs when the IRS is unable to complete a direct deposit or mail your check due to incorrect information. If your local postal service returned your refund to the IRS, then you likely need to update your mailing address.

Since the IRS will not chase you down to get you your money, it is up to you to follow up and ensure they have accurate information. However, if you already filed but have not received your refund yet, visit this link to track it.

Where Can I Find Out if I Have an Unclaimed Tax Refund?

If the government owes you money, the burden of responsibility falls on your shoulders to find out. As nice as it would be, the IRS and state governments are unlikely to track you down to pay the money they owe you. Therefore, the only way to get an unclaimed tax return is by completing a return. However, the good news is that if you have an unclaimed federal return, then you likely have unclaimed state returns as well.

The best way to find out if you have an unclaimed tax refund is to go straight to the source. There are some websites out there that can help you claim it. But, they usually charge or attempt to solicit their products and services. You should also be wary of scammers who contact you about claiming refunds.

If they are requesting personal information or ask you to sign documents releasing funds to them, it is probably someone trying to separate you from your money. If you are uncertain, you can always check the validity of any company through the Better Business Bureau. However, the IRS website is the best resource to determine if they owe you any money.

How Can I Get an Unclaimed Tax Refund?

Every year, the IRS issues public alerts about unclaimed returns to urge people to file their tax returns. Since it is the only way to find out if there is money waiting, it encourages people to stay current and file their annual returns.

However, if you failed to file a past return or need to complete one from previous years, you can find the correct forms and directions here. Be advised that you must have your income forms, though. So, you may need to get in touch with previous employers or clients if you do not have them. If this is impossible, you can also request a wage and income transcript directly through the IRS. Since companies must report all employee earnings, you can request this information online or using Form 4506-T.

You should also be aware that there is a strict timeline to claim your refund. If you think that the IRS owes you money, you have three years from the original filing deadline to access your funds.

Thankfully, the tax filing deadline was extended this year. That means you have until May 17 to file and receive any unclaimed funds from 2017 or later. However, if you miss this deadline, you will miss your opportunity to get what is owed to you. After this point, Uncle Sam keeps your money and there is no other way to claim it once the deadline passes. So, you do not want to procrastinate and potentially lose hundreds, or even thousands, of dollars of your hard-earned cash.

Expert Tax Advice

If you are hesitant to file a past return and claim your money, you don’t need to be. You can rest assured because there are no penalty fees to get an unclaimed tax refund. While they may charge late filing penalties if you owe the IRS, its costs you nothing when the IRS owes you.

However, if you need expert advice, you do not need to hire a tax professional. There are free programs out there, like Volunteer Income Tax Assistance, which can answer your questions and help prepare your taxes. No one likes filing taxes. But, it is always better to file a tax return, even if you are not required to. It may be to your benefit, especially if you have an unclaimed income tax refund with your name on it.

Which City in Georgia Has the Lowest Property Taxes?

April 16, 2021 By Tamila McDonald Leave a Comment

If you own a home, you’ll likely owe property taxes. How much you have to spend to cover the cost can vary dramatically from one area to the next, so much so that they may take you off guard. Similarly, some cities can be surprisingly inexpensive in comparison to others in the state, effectively making them bargains. If you are wondering where the lowest property taxes in Georgia are, here’s what you need to know.

Cities with the Lowest Property Taxes in Georgia

In Georgia, the average effective real estate tax rate is 0.92 percent., which is moderate in comparison to the rest of the country. However, the property tax rates in Georgia do vary by county, causing some areas to be dramatically more affordable than others.

The county with the lowest property taxes in Georgia, based on its effective tax rate, is Towns County. It has an effective tax rate of just 0.42 percent, which is far below the state’s average.

Towns County is in the northern part of the state and borders North Carolina. The county is home to two incorporated cities, Hiawassee and Young Harris, the former of which serves as the county’s seat. There is also Tate City, a census-designated place, along with Alexander Mills and Hog Creek, two unincorporated communities.

Fannin County is actually a fairly close second. It has an effective tax rate of 0.44 percent and is home to cities like Blue Ridge, McCaysville, and Morganton, as well as many census-designated places and unincorporated communities.

In third is Gilmer County, which has a rate of 0.51 percent. There, you’ll find Ellijay and East Ellijay, along with many other communities.

Lowering Your Property Taxes in Georgia

It is possible to lower your property tax burden in Georgia. If you qualify for certain exemptions, you may be able to reduce the amount of your home’s value that’s taxed, making your property tax bill smaller.

Along with a standard homestead exemption, there are statewide programs for low-income seniors, disabled veterans, surviving spouses, and more. Each program has specific requirements, so you’ll need to examine each one closely to determine if you may qualify.

It’s also important to note that counties can have additional exemptions. Precisely what’s available does vary by county. Usually, you can find information about those options through the country’s tax assessor office, including any requirements, details about application procedures, and the value of the exemptions.

Planning for Your Georgia Property Taxes

If you own a home in Georgia, how much planning you need to handle to make sure your property taxes are paid varies. If you have a mortgage, your escrow account usually covers your taxes. Every month, part of your mortgage payment funds that account. Then, when your property tax payment is due, your mortgage provider makes that payment.

However, if you own your home outright, you are typically responsible for submitting property tax payments. In some cases, they are paid in a lump sum each year. In others, your annual charge is divided into two equal payments, each with its own due date.

Precisely when your property taxes are due varies by county. As a result, you’ll need to check with your local assessor or review your property tax bill for details.

Once you know when you own payments, you can plan to cover them. For example, you could set aside 1/12^th of the annual amount every month, placing it into savings. Then, when your bill is due, you submit the payment from that account. That approach creates consistency, making it easier to handle.

However, if your property bill is small, that level of planning may not be necessary. Instead, if your bill supports it, you can pay the cost from your monthly income in one go.

Do you think about property taxes when choosing where to live? Would you favor the city with the lowest property taxes in Georgia over other options? Share your thoughts in the comments below.

The Weekend Wrap: Financial Education, Student Loans, Recovery, Jobs, and a Crypto IPO

April 10, 2021 By Max Erkiletian Leave a Comment

With all the emphasis on stimulus checks, you might have missed some of the personal financial changes in the American Recover Plan. You might also want to know where the job market is heading; what is planned for student loan debt; the push for financial education; and a first in an IPO.

Efforts to Require Financial Education Rising

You can see Americans at international sporting events and political gatherings shouting: “U.S.A, U.S.A.” and “We’re number one!” However, you don’t see proud parents and grandparents outside schools chanting, “We’re number 14!”

America’s Financial Literacy Declining

Fourteen is significant because that is where the nation ranks globally in financial literacy. In fact, only 57 percent of Americans are financially literate, according to a Standard & Poor’s Survey.

American’s lack of financial knowledge has spurred an increasing number of states to mandate financial education in schools. Today, 21 states require personal finance to be taught in high school. That is an increase of four states since 2018. Florida dropped its financial education requirement but retained a personal finance elective.

To make matters worse, financial literacy is declining. Only 34 percent of Americans correctly answered four out of five personal finance questions in a 2018 Financial Industry Regulatory Authority (FINRA) survey. That is down eight percent from 2009.

Economic Divide

Students from low-income families suffer the most. The Council for Economic Education is a non-profit that promotes financial education. It found that in states without mandatory financial education, poor students had much less access to financial information than wealthier students.

Research from a University of Montana study indicates students who have had financial education in high school make better financial decisions. That research shows those students incur less educational and personal debt.

Student Loan Forgiveness

Up next, we are going to look at some of the lesser-known elements of the relief plan enacted last month. But first, let’s take a look at provisions for something that was left out of the law.

Student loan forgiveness was not included in the American Rescue Plan. However, section 9675 of the law makes student loan forgiveness tax-free from 2021 to 2025.

That is great, you say. But if my student loan can not be forgiven, what’s the big deal?

The big deal is this. Making student loan forgiveness tax-free is the first step to obtaining loan forgiveness. It is the horse that must come before the cart. Now that it is in place, what’s next?

Sunday’s edition of Saving Advice will examine the latest in the push for Student Loan Forgiveness.

More Than a Stimulus Check

Everyone knows that the American Rescue Plan Act signed into law by President Joe Biden last month gave most Americans a stimulus check. But you may not know some of the other aid it offers. Here is a brief rundown.

Child Tax Credit Increase

The main takeaway here is that this tax credit has been increased from $2,000 to $3,600 for each child under six and to $3,000 for each child between six and 18. The benefit is available for couples making under $150,000 a year or single parents making under $112,500.

Another significant change is that the child tax credit will be sent directly to families on a monthly basis. Previously, parents had to wait until their tax refund came through to get the money.

“This change will allow struggling families to receive financial assistance now,” according to the treasury department, “rather than waiting until the 2022 tax filing season to receive the Child Tax Credit benefit.”

Schools and Childcare Block Grants

The law designates $130 billion to reduce class sizes, improve ventilation, purchase personal protection equipment, and other measures to help schools K-12 open safely. Another $40 billion is set aside for childcare providers and $1 billion for Head Start.

College students will have access to $40 billion in emergency financial aid.

Homeowners and Renters

The moratorium on evictions and foreclosure ended March 31. The law does not extend that ban. However, it does provide funds to help you keep a roof over your head and keep the lights on.

The law provides $10 billion in aid to homeowners and another $21.6 billion for renters.

You can access funds through your state, territory, or tribal government to make delinquent mortgage payments. State, territorial and local governments will also handle the money targeted for rent and utility payments.

Unemployment and COBRA

Unemployment benefits of $300 a month will be paid through Sept. 6, 2021. That is $100 less than originally proposed. However, a surprise tax benefit makes the $300 plan more advantageous.

The first $10,200 in unemployment is paid tax-free. In addition, if you paid taxes on unemployment benefits in 2020 you will be able to recover those funds when you file your 2020 tax return.

COBRA gets a full subsidy. That allows you to stay on your employer’s health plan through the end of September.

Food Aid

The Supplemental Nutrition Assistance Program (SNAP) gets an increase through Sept. 30. Just over $2 billion will go toward nutrition assistance. Another $490 million will go to increase cash vouchers in the Women, Infants, and Children (WIC) program.

Aid for Businesses

Businesses get $7.25 billion to cover payroll and other expenses as part of a boost in the Payroll Protection Plan (PPP). One change is that non-profits are now included in PPP.

Restaurants and bars get extra help. $25 billion is provided to cover payroll, utilities, rents, and other operating expenses.

Public Health and Safety

You may not see it in your personal finances. But state and local governments have incurred more expenses as a result of the pandemic. They have also lost tax revenue.

To help, the law allocates $350 billion dollars to state, territorial, and tribal governments.

“In addition to helping these governments address the revenue losses they have experienced as a result of the crisis,” according to the treasury department, “it will help them cover the costs incurred due to responding to the public health emergency and provide support for a recovery.”

The New Job Market

With Unemployment dropping to 6 percent, you may be tuning up your resume. New jobs are opening whether you are reentering the workforce or you are making a career change.

The post-COVID employment picture will look a little different than it did before. For instance, most economists were surprised that 110,000 new construction positions were part of the 916,000 jobs added to the economy last month.

In addition, the Biden Administration has proposed a massive infrastructure plan that could add all sorts of jobs in various fields.

Health, Tech, and Green

Most employment for 2021 and beyond will be in technical, medical, and green jobs, according to the U. S. Department of Labor. Among the top ten jobs, Labor includes in its list of the fastest-growing occupations, six or in the health field. The other four are wind turbine service technicians, solar installers, statisticians, and information security analysts.

A serious shortage of skills in fast-growing fields was emerging prior to the pandemic according to an American Action Forum (AAF) report. As the economy reopens, that shortage will rise again.

“This study estimates that, over the next decade, employers in nearly every state will face significant shortages both of workers with an associate degree or some college,” wrote AAF analysis Tom Lee in 2019.

FYI on IPO for Coinbase

Mark your calendar for April 14. That day history will be made.

Coinbase Global, the largest cryptocurrency exchange in the United States, will go public next Wednesday. It is the first major crypto company to launch an IPO.

Trading on the Nasdaq, Bitcoin will be listed under the symbol COIN. However, the company will not follow the traditional IPO route. Instead, current investors will convert 114.9 million shares for offer to the public. That practice is known as a direct offering.

We will follow up on Coinbase in next weeks The Wrap

Coinbase Offering Price

Coinbase plans to announce its reference or opening price the day before it goes public.

The company released a flush earnings report Tuesday. It announced 2021 first-quarter earnings exceeded earnings for all of 2020. Revenue of $1.8 billion produced earnings of between $730 million and $800 million in the first three months of the year, according to the Coinbase report.

3 Great Ways to Bring in Money When You Need It Most

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