Tuesday, April 13, 2021

The Week in Business: Go Ahead, Put of Your Tax

Good morning and happy spring. Here’s hoping you can enjoy another Sunday spent ignoring your tax returns (or, if you’ve already done them, feel smug about it). But first, here’s what you need to know in the business and technical news for the week. – Charlotte Cowles

Good news for lax people like me, or whose tax was compounded by the epidemic: Internal Revenue Service Tax filing deadline extended For a month, until 17 May. The extra time will help people navigate the new tax rules that went into effect with the passage of the US rescue plan. The law previously made $ 10,200 unemployment benefits tax-free for those who earned less than $ 150,000 last year, a significant benefit for many people whose jobs were disrupted. But if you have already filed, don’t worry – the IRS said it would Automatically send those refunds to those who qualify.

Relations between China and Biden administration broken A rocky start In the first face-to-face meeting between diplomats last week. The United States set a confrontational tone on the eve of the talks 24 Chinese authorities ban To undermine democracy in Hong Kong. In return, China’s top diplomat accused its American counterparts of being “indulgent” among other claims. According to President Biden’s team, the three-day meeting was aimed at finding common ground to control climate change and pandemics and address American concerns about Chinese trade and military encroachments. Tension is not well on the way to the main path in future negotiations.

Ten women who are Sue the walt disney company What they call “mass gender discrimination” Another charge On their list: Disney “has a strict policy of pay secrecy.” A new section of the lawsuit refers to an episode in which a female Disney employee was “disciplined for disclosing her salary to colleagues”. Pay transparency is considered an important part of the closure of racial and gender wage gaps, and retaliation for discussing their own pay violates California law and the National Labor Relations Act. Disney has denied the claims and vowed to defend itself.

Walmart is Jumping on the vaccine passport bandwagon, It will provide standardized Digital vaccination credentials Anyone who gets vaccinated at its store or Sam’s Club. The retailer will develop a Health Passport app that people can use to verify their status at airports, schools, playgrounds and other potentially crowded places. Walmart is involved A current push A proposal from major health centers and tech companies, including Microsoft, Oracle, Salesforce and Mayo Clinic, as well as a proposal from the European Union, which would require vaccine validation for travel in certain areas.

How has your pandemic changed?

No. The so-called Pecuniary effect payment Not considered as income. In fact, they are technically an advance on a tax credit, known as a recovery rebate credit. Payments can indirectly affect what you pay in state income taxes in a handful of states, where federal tax is deducted toward state taxable income, as our colleague Ann Cairns wrote. Read more.

Mostly. Unemployment insurance is generally subject to federal as well as state income tax, although there are exceptions (nine states do not impose their own income tax, and another six are exempt unemployment payment tax-wise. Tax Foundation) Belongs to. But you will not pay the so-called payroll taxes, which pay for Social Security and Medicare. If your income is less than $ 150,000, the new relief bill will make the first $ 10,200 profit-tax free. It is applicable till 2020 only. (If you have already filed your tax, see IRS for guidance.) Unlike a paycheck from an employer, taxes are not automatically withheld for unemployment. The recipient must select into it and even when they do, federal taxes are withheld at a flat rate of only 10 percent. While the new tax break will provide a cushion, some people can still pay the IRS or some states’ money. Read more.

Maybe not, Unless you are self-employed, is an independent contractor or gig worker. The overhaul of the tax law at the end of 2019 eliminated the home office deduction for employees from 20125 through 2025. “Employees specifically receiving a salary or W-2 from an employer are not eligible for the deduction, even if they are currently working from home,” The IRS said. Read more.

Self-employed people can take Paid care leave If their child’s school is closed or their normal child caretaker is unavailable due to the outbreak. It works similarly to small sick leave credits – 67 percent of the average daily income (either for 2020 or 2019), up to $ 200 per day. But caregiver leave can be taken for 50 days. Read more.

Yes. This year, you can cut Up to $ 300 For charitable contributions, even if you use the standard deduction. Previously, only those who could claim these deductions were involved. Donations must be made in cash (for these purposes, this includes checks, credit cards or debit cards), and may not include securities, household items, or other assets. For 2021, the deduction limit for joint filers will be doubled to $ 600. The rules became more lenient for item holders. Limits on charitable donations have been suspended, so individuals can contribute from 100 percent to 60 percent of their adjusted gross income. But these donations should be made in cash for public donations; Older rules, for example, apply to contributions made to donor-advised funds. Both provisions are available through 2021. Read more.

Chief executives of Facebook, Google and Twitter will do To be grilled In Congress on Thursday, this time over his failure to crack down on the dissemination of misinformation. Tech executives were last called by lawmakers in November 2020, when Facebook’s Mark Zuckerberg and Twitter’s Jack Dorsey Interrogation encountered a whirlwind About content moderation, mostly about his efforts to stem a wave of lies about the presidential election. This time, they will be asked about the coronavirus vaccine misinformation and the electoral fraud conspiracy theories that will continue to spread on their platforms.

The two biggest names in economic policy – the Federal Reserve chair, Jerome Powell, and Treasury Secretary Janet Yellen – will make their first joint appearance this week when they testify in front of the House Financial Services Committee on the progress of pandemic relief efforts. The hearing takes place one week after the Fed Revised its economic outlook Strong growth offered to be more assured that it would keep interest rates near zero for years to come.

education Department Trump-era policy changed Limited debt relief for students who were cheated by for-profit educational institutions. Newly appointed Kishore Vogue Editor, Alexey McCondResigned over racist and homophobic tweets posted over a decade ago. And Retail Sales February dropped 3 percent as consumers grappled with dwindling stimulus effects and devastating winter storms.

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