The Internal Revenue Service (IRS) has announced that over $1 billion in unclaimed tax refunds from the 2021 tax year remain available to more than 1.1 million taxpayers who did not file their federal income tax returns. Typically, taxpayers have a three-year window to claim these refunds before they become property of the U.S. Treasury. However, recent developments have provided some relief for those who may have missed out on certain credits, particularly the Recovery Rebate Credit (RRC). This article explores the details and implications of this situation, offering guidance on how individuals can still claim their rightful refunds.
In December, the IRS revealed that many eligible taxpayers had inadvertently overlooked claiming the RRC on their 2021 tax returns. To address this issue, the agency decided to issue automatic payments to those who qualified but did not claim the credit. These payments, which could amount up to $1,400 per individual, were scheduled to be distributed in December 2024 and should have been received by late January 2025. This initiative aims to ensure that eligible taxpayers do not miss out on benefits they are entitled to receive.
Beyond the RRC, there are other significant tax credits available that require filing a return. For instance, the Earned Income Tax Credit (EITC) offers substantial refunds, reaching up to $6,728 for taxpayers with qualifying children. The eligibility thresholds for the EITC vary based on the number of children and marital status. Even if you had too little income to necessitate filing a tax return, it is crucial to submit one to claim refundable credits or other potential refunds, such as over-withheld wages or excess quarterly payments.
However, it is important to note that certain conditions can affect the receipt of refunds. If you owe money for student loans, back taxes, or child support obligations, your refund may be offset by these amounts. Additionally, non-compliance with filing requirements for subsequent years (2022 and 2023) could result in the IRS holding your 2021 refund.
The IRS estimates that the median refund for the 2021 tax year is $781, excluding the RRC and other credits. States like New York, Pennsylvania, Rhode Island, Massachusetts, and Illinois are expected to have the highest median potential refunds, while California, Idaho, New Jersey, Minnesota, and Montana may see lower amounts. Despite population differences, thousands of taxpayers across various states, including less populated ones, are anticipated to receive refunds.
To claim any outstanding refunds, taxpayers need to gather necessary documents such as W-2, 1098, 1099, or 5498 forms from 2021. If these documents are unavailable, they can request copies from employers or financial institutions. Alternatively, accessing tax records and transcripts through the IRS website or submitting Form 4506-T can provide the required information. With the deadline approaching, taking prompt action is essential to secure these unclaimed funds.
Taxpayers who believe they may be owed a refund should act quickly. Filing a return, even if it was not initially required, can unlock valuable credits and refunds. By understanding the available options and meeting the filing deadlines, individuals can ensure they do not miss out on the financial benefits they deserve.
In the upcoming special election for Oakland’s District 2 City Council seat, financial prowess is shaping up to be a key factor. Two leading candidates, Charlene Wang and Kara Murray-Badal, have demonstrated significant fundraising capabilities. While both contenders are well on their way to raising substantial sums, Murray-Badal has received additional support from labor unions through an independent expenditure committee. Meanwhile, other candidates like Kenneth Anderson, Harold Lowe, Kanitha Matoury-Nguyen, and Paula Thomas appear to be struggling with campaign financing.
The race highlights the importance of financial resources in political campaigns. Candidates need ample funds to cover advertising, staff salaries, and other essential expenses to effectively reach voters. As the election approaches, the disparity in fundraising efforts between top-tier candidates and others is becoming increasingly evident. This article delves into the financial strategies and backing behind each candidate, shedding light on their campaign activities and supporters.
Fundraising Giants: Charlene Wang and Kara Murray-Badal
Charlene Wang and Kara Murray-Badal stand out as the frontrunners in terms of fundraising. Wang, an EPA employee focusing on Native American civil rights, has amassed approximately $75,000. She has strategically allocated her funds, leaving her with a considerable reserve for ongoing campaign needs. Murray-Badal, a housing policy expert and Oakland native, has raised about $62,000, bolstered by significant contributions from influential figures and labor unions.
Wang's campaign has been supported by notable figures such as former Mayor Libby Schaaf and Chinatown advocate Stewart Chen. Her expenditures have primarily gone towards lawn signs, IT services, and consultant fees. On the other hand, Murray-Badal has spent around $22,000 on professional services, office supplies, and consultants. Additionally, she has benefited from an independent expenditure committee named "Fix Our City," which has spent over $115,000 on ads supporting her candidacy. The committee is funded by SEIU Local 1021 and IFPTE Local 21, unions representing public sector employees in Northern California.
Challenges Faced by Other Candidates
While Wang and Murray-Badal dominate the fundraising scene, several other candidates face significant financial hurdles. Kenneth Anderson, the reverend of Williams Chapel Baptist Church, has not reported any campaign contributions or expenditures. Similarly, Harold Lowe, a lifelong Oakland resident and business consultant, has only reported a $1,000 contribution from his own campaign, with no spending noted and outstanding debts totaling $20,627.
Kanitha Matoury-Nguyen, owner of Howden Market, and Paula Thomas, a commercial property manager, have also not reported raising or spending any money on their campaigns this year. Matoury-Nguyen previously ran for the at-large council seat and ended 2024 with $24,000 in her campaign account but owed herself $25,000 for a loan. These financial constraints may limit their ability to compete effectively against better-funded candidates. The disparity in campaign finances underscores the challenges faced by underfunded candidates in gaining visibility and reaching voters.
In today's financial landscape, savers face a unique opportunity to maximize their earnings through strategic financial planning. Despite the challenges posed by inflation and fluctuating interest rates, certificates of deposit (CDs) offer a promising avenue for those willing to lock away their funds for a specified period. This article explores the benefits and considerations of investing in CDs amid current economic conditions.
Unlocking the Potential of Certificates of Deposit
As we navigate the economic climate of early 2025, it is evident that interest rates remain relatively high, providing an attractive environment for savings instruments like CDs. In recent months, inflation has steadily risen, surpassing the Federal Reserve’s target by a full percentage point. Meanwhile, after three consecutive rate cuts in late 2024, further adjustments have been put on hold, stabilizing borrowing and saving rates.
For individuals looking to grow their wealth, CDs present a viable option. While the concept of tying up money for an extended period might seem daunting, the potential rewards are substantial. Savers can earn significantly higher returns compared to traditional savings accounts, with some CD rates exceeding 4.50%. Compound interest, typically added monthly or quarterly, allows initial deposits to grow over time, making CDs a reliable and predictable investment vehicle.
However, it's important to note that accessing funds before the maturity date comes with penalties, though some banks offer no-penalty CDs at lower interest rates. For those who can afford to leave their money untouched, the trade-off between liquidity and yield proves beneficial. Strategic planning, including choosing the right CD term and deposit amount, can lead to substantial earnings, potentially reaching hundreds or even thousands of dollars.
From a broader perspective, CDs offer stability in an otherwise volatile market. Unlike variable-rate accounts, which fluctuate with market conditions, CDs provide fixed returns, ensuring peace of mind for cautious investors. The predictability and security they offer make them an appealing choice for long-term financial goals.
Reflections on Financial Planning and Investment Choices
Ultimately, the decision to invest in a CD hinges on individual financial circumstances and long-term goals. While temporarily sacrificing access to funds may feel restrictive, the potential for significant returns makes it a worthwhile endeavor. By carefully evaluating one's financial needs and using tools like CD calculators, savers can make informed decisions that align with their objectives. In a world where economic uncertainties abound, securing a stable and predictable return through CDs offers a reassuring path toward financial growth and stability.