Apr 29, 2022
Welcome back to our Weekly Digest. Read on for the latest updates.
Government Sees Strong GDP Growth in 2022
While the government sees more risks to the economy in the months ahead due to rising prices and Russia’s invasion of Ukraine, it still expects healthy GDP growth in 2022. This comes after the International Monetary Fund estimated that the US would see its GDP grow by 3.7% this year.
Durable Goods Orders Increased
Orders at factories for long-lasting goods rebounded in March after the first decline in a year, while bookings for all durable goods increased by 0.8% last month. These figures suggest that business investment is strong and that factories are producing large amounts of goods, even as they confront snarled supply chains, a labor shortage, and the highest inflation in decades.
Consumer Confidence Eases in April
Consumer confidence eased in April as views on current conditions slightly worsened, offsetting more optimistic future expectations. The Conference Board’s index decreased to 107.3 from an upwardly revised 107.6 reading in March, while the median forecast in a Bloomberg survey of economists called for a reading of 108.2. The reason behind this is that inflation is running at the fastest pace since 1981.
Check Refund Status
The deadline to file and pay federal income taxes has passed for most people. You can check on your refund using the Where’s My Refund? tool. It is available on IRS.gov and the IRS2Go app. To use this tool, you will need your Social Security number or ITIN, tax filing status, and the exact amount of the refund claimed on your tax return.
May 16 is Filing Deadline for Many Tax-Exempt Organizations
Many tax-exempt organizations have a filing deadline of May 16, 2022. Those that operate on a calendar-year basis have certain annual information and tax returns they file with the IRS. These returns are:
● Form 990-series annual information returns (Forms 990, 990-EZ, 990-PF)
● Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990-EZ
● Form 990-T, Exempt Organization Business Income Tax Return (other than certain trusts)
● Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code
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 will need to combine both amounts when they file their joint return.