Apr 22, 2022
Welcome back to our Weekly Digest. Read on for the latest updates.
Fannie Mae Economists: Economy Facing’ Modest’ Recession Next Year
The economic outlook is dimming, and a downturn could be on the horizon as the Federal Reserve moves to ease the hottest inflation in four decades, according to Fannie Mae economists.
In a new economic and housing forecast, the economists said that the economy faces a “modest recession” in 2023 due to the Fed’s aggressive monetary policy tightening, the fallout from the Russian war in Ukraine, and the worst inflation in a generation.
Taxpayers Who Missed the Filing Deadline Should File Now
The IRS encourages taxpayers who missed the tax filing deadline on April 18 to file as soon as possible. While taxpayers due a refund receive no penalty for filing late, those who owe and missed the deadline without requesting an extension should file quickly to limit penalties and interest. Families who don’t owe taxes can still file their 2021 tax return and claim the Child Tax Credit for the 2021 tax year until April 15, 2025.
Some taxpayers automatically qualify for extra time to file and pay taxes without penalties and interests, including:
● Members of the military who served or are currently serving in a combat zone
● Support personnel in combat zones or a contingency operation in support of the Armed Forces
● Taxpayers outside the United States
● Some disaster victims
You can find out more here.
Monthly Child Tax Credit Payments
If you have questions about the advance Child Tax Credits for 2021, the two best sources are the instructions for Schedule 8812, which is used to calculate and report the credit on your 2021 tax return, and the IRS FAQs. Before filing your tax return, check your IRS Online Account to be sure you report the correct amount of any advance Child Tax Credit payments received during 2021. This will help ensure that refunds are paid promptly within 21 days. As a reminder, couples who filed Married Filing Joint will each receive a letter reporting half of the payments received. When filing 2021 tax returns, married couples must combine both amounts when they file their joint return.
IRS Announces Funding for Low Income Taxpayer Clinic Grant
The IRS announced that more than $12.1 million in matching grants were awarded to 131 organizations across the country to develop, expand, or continue qualified Low-Income Taxpayer Clinics (LITCs) for the 2022 grant year. The grant year runs from January 1 to December 31, 2022.
Housing Starts Unexpectedly Rise in March
Homebuilding unexpectedly increased in March but starts for single-family housing declined due to rising mortgage rates. Housing starts increased 0.3% to a seasonally adjusted annual rate of 1.793 million units last month, while permits for future home building increased 0.4% to a rate of 1.873 million units. However, single-family housing starts, which account for the biggest share of homebuilding, dropped 1.7% to a rate of 1.200 million units.
Hotels Face $21 Billion Business Travel Decline in 2022
Business travel revenue for the hotel industry is expected to decline by about $20.7 billion from pre-pandemic levels this year, after an estimated $108 billion decline over 2020 and 2021, according to a report from American Hotel & Lodging Association and Kalibri Labs. The report forecasts that hotel business travel revenue will remain 23% down from 2019 by the end of this year. On the other hand, leisure travel is expected to rebound to pre-pandemic levels in the coming months.
If you have any questions or concerns, don’t hesitate to reach out to us.