Happy International Women's Day
The last few months have been a rollercoaster to say the least. In a good way- your girl is now a Fiancé! Yes, I was proposed to during Valentine’s Day Weekend and I couldn’t be happier. It’s also audit season for my company, so there’s been extra tasks thrown my way which has shifted my focus. Either way, I couldn’t allow my busy day to day to keep me away from providing useful financial literacy tips! In preparation for International Women’s Day, I’m spoiling myself with a glass of Meiomi Pinot Noir (my fave) and listening to Diana Ross- it’s my house. Let’s get into it.
Shecession
Shecession is a term that is used to describe how woman are disproportionately affected by the corona-virus pandemic. In December, women lost a total of 156,000 jobs, while men gained 16,000 jobs, according to NWLC. Of the net 9.8 million jobs lost since February, women have accounted for 55% of them. According to ABC News, the unemployment rate for adult women is now 15.5%, up from 3% in February. The unemployment rate is even higher for Hispanic adult women, at 20.2.%, and for black adult women, at 16.4%, according to BLS. By comparison, the unemployment rate for adult men is currently 13%.
Why is this? Well, for starters- women are already faced with the gender pay gap- we currently earn around 80 cents for each dollar earned compared to our male colleagues. Secondly, there’s also a gender wealth gap. According to Ellevest, that’s 32 cents to a man’s dollar. Lastly, women are over represented in sectors that have been hit the hardest by the pandemic. We’re talking healthcare, education, and leisure & hospitality.
What can we do? 1. Talk about it. This is the perfect spotlight for change and to advocate for advancement opportunities for women. We also need to talk about ways we can retain our roles. 2. Invest more! We need to get acclimated with investing our money to help close the gender wealth gap. 3. Network and learn new skills. If the recession has taught us anything, it’s that we always need to be prepared. I know it’s difficult to network virtually, but try doing something fun like a virtual wine tasting via zoom to connect with peers. In regards to learning skills, there are platforms such as coursera.org that allow for you to learn at your own speed.
Tax Tips for 2021
Earned Income Tax Credit The Earned Income Tax Credit (EITC) can give qualifying workers with low-to-moderate income a substantial financial boost. EITC not only reduces the amount of tax someone owes but may give someone a refund even if they don't owe any taxes or aren’t required to file a return. Please keep in mind that you have to meet certain requirements and file a federal tax return in order to receive this credit. The EITC assistant on IRS.gov can help people determine if they qualify.
Taxable Unemployment Compensation Unemployment compensation is taxable and must be included as gross income on your tax return. Taxpayers have the option to have federal taxes withheld from their benefits or make estimated tax payments. If you didn’t decide to do either, taxes on those benefits will be paid when your 2020 tax return is filed.
Home office deduction The home office deduction is available to qualifying self-employed taxpayers, independent contractors and those working in the gig economy (temporary flexible jobs such as independent contractors and freelancers instead of full-time employees.) However, the Tax Cuts and Jobs Act suspended the business-use-of-home deduction from 2018 through 2025 for employees. Employees who receive a paycheck or a W-2 exclusively from an employer are not eligible for the deduction, even if they are currently working from home. IRS Publication 587, Business Use of Your Home, provides more on the home office deduction.
Charitable donation deduction if you don’t itemize Individuals who take the standard deduction generally cannot claim a deduction for their charitable contributions. However, the CARES Act permits these individuals to claim a limited deduction on their 2020 federal income tax returns for cash contributions made to certain qualifying charitable organizations and still claim the standard deduction. Take advantage!
$1.9 Trillion Covid Relief Bill
The Senate has passed the $1.9 Trillion Stimulus Bill and it is now up for approval from the House on Tuesday, March 9th. Here’s a quick rundown of what’s included in that bill.
Stimulus checks Individuals making under $75,000 and married couples making under $150,000 would receive direct payments of $1,400 per person. The bill would also provide $1,400 per dependent. Payments will decrease over those income levels and disappear over the income cap: $80,000 for individuals and $160,000 for married couples.
Extended unemployment benefits The $300/week boost will continue through the first week of September 2021. The Senate bill also includes a provision intended to avert surprise tax bills for people who lost jobs, waiving federal income taxes for the first $10,200 of unemployment benefits received in 2020 for households earning under $150,000.
The Child tax credit For 2021, the bill would temporarily expand the child tax credit, which is currently worth up to $2,000 per child under 17. Under the legislation, the tax credit would be as much as $3,600 for children up to age 5 and as much as $3,000 for children 6 to 17.
Funding for vaccine distribution This bill would provide $350 billion for states, local governments, territories and tribal governments, and it contains about $130 billion for schools. It also includes funding for colleges and universities, transit agencies, housing aid, child care providers and food assistance.
Money Smart Week 2021
One of my favorite times of the year! Join me for Virtual Money Smart Week to be held Saturday, April 10 through Saturday, April 17, 2021. This week-long free virtual campaign aims to help people better manage their personal finances with a focus on those hardest hit by the COVID-19 pandemic.
This year’s line-up includes:
· Saturday, April 10 @ 10:00 a.m. CST | Talking Cents (The University of Chicago Financial Education Initiative)
· Sunday, April 11 @ 10:00 a.m. CST | Saving (FINRA Investor Education Foundation)
· Monday, April 12 @ 12:00 p.m. CST | Basic Banking (The Economic Awareness Council)
· Tuesday, April 13 @ 12:30 p.m. CST | Student Loans (U.S. Department of Education, Federal Student Aid)
· Wednesday, April 14 @ 1:00 p.m. CST | Fraud Protection (Internal Revenue Service)
· Thursday, April 15 @ 1:00 p.m. CST | Personal Finance (Global Financial Literacy Excellence Center)
· Friday, April 16 @ 12:00 p.m. CST | Housing Protections + Resources (Consumer Financial Protection Bureau)
· Saturday, April 17 @ 10:30 a.m. CST | Budgeting (University of Wisconsin-Madison, Division of Extension)
View more details at www.moneysmartweek.org. Events are free and open to the public, but registration is advised. Questions for the panelists can be submitted during the registration process.
As always, thanks for reading and don’t forget to subscribe if you haven’t already! - Love always - Mel