2020 Important Tax Update and Retirement Contribution Changed Deadline Not only did the IRS extend the due date for tax filing to May 17th, 2021, but they have also extended the deadline to contribute to individual retirement accounts (IRAs). CA aligned the due date for state income taxes and tax filings with the extended IRS due date for federal tax filing as well. The annual $6,000 contribution limit ($7,000 for age 50 and up) can...
April 15th is a day enshrined in our personal financial calendars as the day that federal and state income taxes need to be filed. This year the IRS granted an extension. The federal tax filing deadline is now May 17th, 2021. As of today, California has not changed its state income tax filing due date. Also, the IRS is saying that estimated tax payments due on April 15th will still be expected. As far as...
Week number 53 means we are into the 2nd year of Covid-19. Does it feel like a year? Has our perception of time changed? Do we have better visibility into life after Covid-19? When will we be done with the pandemic? How will we look back at this last year? The answers to these questions, as well as many more will be forthcoming. Another priority is an analysis of what the United States did right...
After a significant amount of wrangling, wheeling and dealing, the Senate agreed on the Biden Administration’s rescue package initially passed by the House including a $15 minimum wage stripped from the bill in the Senate. Expectations are that the bill will be passed in the House with no changes and sent to President Biden for his signature. The President is scheduled to speak to the nation on Thursday night, tonight. The best analysis we have...
A couple of concerns on our minds this week. First, as my wife and I are poised to receive our 2nd dose of the Moderna vaccine soon. While we wait, we are contemplating how this will impact our behavior. I tend to be more risky than my wife, however it is very apparent to me that recency bias is at work. Human nature studies have shown that for many, whatever is happening now, the most...
Last week on the SAS blog , we discussed Covid Relief and the Economy . In light of the recently passed $1.9 trillion Coronavirus relief package, this week we offer more background on comparable economic conditions and relief responses. Will this time be different? Is or will $1.9 trillion be enough? GDP Economists and journalists seem to be focused on predictions for Gross Domestic Product (GDP) growth rates for 2021. The expectations are pretty staggering...
Covid Relief Path and the Economy Top Biden administration agenda items: first is the $1.9T Covid rescue package. The Democrats are moving ahead using a process called reconciliation that allows them to pass legislation with no Republican support. Just as the national recovery letter shape is a "K" so is the state/municipal recovery. As we read about the surplus in San Francisco’s budget this year, the future is more cloudy for the city budget with...
This week we have the historic 2nd impeachment trial beginning. Congress and the administration are moving forward with a massive stimulus relief bill to provide funding for vaccinations, a pathway for schools to reopen, rent relief, economic impact checks to be sent to all income qualified Americans, a proposed raising of the minimum wage, and a child tax credit resulting in cash for families with children. Current Events The cost of this package will approach...
Fiscal Relief Bipartisanship was tested in the discussions this week between a group of 10 Republican Senators and President Biden to discuss their proposal for fiscal relief . The difference between the proposals is substantial. In fact, the Republican Senators’ proposal is one-third of the administration’s proposal in length. From news reports, one area of potential compromise is the issuance of Economic Impact checks to individuals and families. The Senators propose lowering the payment amount...
This is the first week in office for President Biden and Vice President Kamala Harris since their inauguration January 20th, 2021 . Priorities After a challenging transition, mixed in with the events of January 6th, the news has been a roller coaster. The new administration is facing multiple serious issues. The administration’s immediate priorities are available online and so far communication, nominations and appointments are in stark contrast from the previous administration. Economy The economy...
Headlines Wednesday, January 20th - today is inauguration day. There are enormous challenges facing the new administration. Managing the pandemic, reviving the economy for those who have suffered, racial justice, climate change and healing the divisions in our country. The goals are set high for the administration’s first 100 days. The initial impact of the inauguration should lower the general anxiety felt by many. We will no longer pay attention to governing by tweet. The...
I apologize for the unavoidable dark tone this week. We thought about revising last week’s newsletter in lieu of Wednesday’s violence at the Capitol building in Washington DC, but we figured the impact of this attempt to overthrow a free and fair election would continue in our discussions this week. And we were right. Analysts say this is the beginning of 2 weeks that we all anticipate to be intense with the FBI’s memo warning...
