Shrinking Tax Refunds
1. The U.S. Cut Taxes. Why Will Fewer Folks Get Refunds? (Washington Post, 2/10/2019)
This article has Q&A taking you through the reasons why. Hint: Some of the explanation is because of changes to the tax code, but also because less taxes were withheld from employee paychecks than in prior years due to changes in the withholding tables, and in the lower rate withheld from bonuses and employee stock compensation (22% versus 25%).
Additional Reading:
Millions of Americans could be stunned as their tax refunds shrink (Washington Post, 2/10/2019)
Many Americans may confuse their meager refunds as a sign that they paid more in taxes as a result of the Tax Cuts and Jobs Act. Generally, that is not true.
According to the Tax Policy Center, 80 percent of filers received a tax cut, and about 5 percent wound up paying more in federal income taxes. The tax cuts showed up in fatter weekly or biweekly paychecks for most Americans, but few people noticed, according to polling.
How tax brackets actually work: A simple visual guide (Washington Post, 1/7/2019)
You pay a 10 percent rate on the first $9,525 you earn. Then a 12 percent rate on the income above that, up to $38,700. Then a 22 percent rate on the income above that, up to $82,500. And so on.
Surprising stat on the higher cost of women’s auto insurance
2. What? Women Pay More than Men for Auto Insurance? (Yup.) (PEW, 2/11/2019)
It’s a widespread belief that men pay more for automobile insurance than women. But that’s only true for young adults.
Several studies in 2018 and 2017 revealed that women over 25, particularly those between 40 and 60, often pay more than men — not less — for auto insurance, all other rating criteria being equal.
You can earn more on your savings account
3. Here’s What the Fed’s Halt on Interest Rates Means for Your Wallet (The New York Times, 1/31/2019)
For the first time in more than a decade, you can earn more than the rate of inflation on your savings account, but only if you shop around,” said Greg McBride, chief financial analyst at BankRate.com.
Two Bonuses as your reward for reading this far:
🇨🇦 ⛄️
Canadians trying to get to work this morning 😂#winter #Canada via @CanadianEHF pic.twitter.com/YSgyyAeh9Y
— Alexander Verbeek 🌍 (@Alex_Verbeek) February 6, 2019
This should make your day a little happier. pic.twitter.com/GIVaWra9zQ
— Marcus (@MGSniper) January 30, 2019
SAGE Serendipity: The Westminster Kennel Club Dog Show was in full swing in NYC this week. Here’s a collection of fun shots along with Best in Show from The New York Times. And I love this video of little fast guy, Rudy, taking the bulldog obstacle course from thrillest.com.
