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As a 58-year-old woman on disability, Robin Short of Wallingford, Connecticut, relies on her tax refund to catch up on bills. She filed her return electronically in February, opting for direct deposit so she could get her 3 refund quickly.She’s still waiting, as are millions of others. The IRS is slowly resuming operations after pandemic-related lockdowns, but delayed refunds are devastating some people’s finances.Tax refunds have become a lifelineTax refunds, which last year averaged ,979, are the largest single infusion of cash for about 30% of U.S. families, says Fiona Greig, consumer research director at the JPMorgan Chase Institute, which researches economic issues. While many Americans use refunds to save or to pay down debt, significant numbers rely on the money to cover bills or to get needed medical care — and that was true even before millions lost jobs and income during the COVID-19 pandemic.Delayed refunds can lead to evictions, hunger, creditor lawsuits and health problems from postponed medical care, among other ill effects. Many households live so close to the edge that they can experience hardship when a refund is delayed by two or three weeks, let alone several months, says John Thompson, chief program officer for the Financial Health Network, which researches financial challenges facing low- and moderate-income households.“Not everybody has got the kind of flexibility or resilience to just be able to hold on,” Thompson says.Pandemic shutters most IRS operationsThe IRS started shutting down tax return processing centers in March, along with its taxpayer help line, local offices and volunteer assistance programs. Soon after, it focused on sending out more than 159 million payments as authorized by the coronavirus relief package. By mid-May, the agency faced a backlog of 10 million pieces of unopened mail, including paper tax returns.People who filed electronically generally got their refunds unless those returns were flagged, commonly because of identity theft concerns or a mismatch between the information on the return and what was provided by employers or financial institutions.In Short’s case, the TurboTax software she used counted a ,800 annual pension payment twice, as both 1099 income and as W-2 income. The IRS sent her a letter about the error and advised her not to contact the agency for 60 days while the issue was resolved. Then, the lockdowns happened.Short says her pension and monthly Social Security disability checks don’t cover her expenses. She makes arrangements to pay overdue bills, such as her power bill, when her refund arrives. Otherwise, she says, the math of living on a low fixed income gets grim.“Either you miss a payment on the electric bill, or you don’t get your medicine,” says Short, a former facilities manager and insulin-dependent diabetic who was severely injured when her car was hit by a drunk driver.Using refunds to catch upPutting off bills, then using tax refunds to catch up, is a common practice among strapped households, Thompson says. A survey of people who used free filing methods for lower- and moderate-income taxpayers last year found roughly half said they needed their refunds for bills, rent, groceries and other everyday expenses, according to Prosperity Now, a nonprofit that promotes financial security.People also increase their health care spending significantly after refund checks arrive. A 2018 study of 1.2 million checking account holders found health care spending rose 60% in the week after people received refunds, indicating many were catching up on care, Greig says.It’s not clear how long it will take the IRS to address the backlog or when taxpayers can expect their money. People can try using the “Where’s My Refund?” tool on the IRS site or call the taxpayer help line, but getting through to a human is difficult even in normal times. Congress has cut the IRS’ budget by 20% since 2010, leading to a 22% reduction in staff, according to acting National Taxpayer Advocate Bridget Roberts. Without adequate staff, the agency answered less than one-third of its calls last year. Another option is to contact the Taxpayer Advocate Service, which has representatives in each state.Rather than wait for the IRS to return their money each year, taxpayers can adjust their withholding so they get more money in their paychecks. But many don’t feel comfortable changing their withholding in case they wind up owing big sums, Thompson says.“You’d have to predict how the year is going to go,” Thompson says. “And what could we possibly predict about this year?”This article was written by NerdWallet and was originally published by The Associated Press.Liz Weston is a writer at NerdWallet. Email: lweston@nerdwallet.com. Twitter: @lizweston. 4782
AP-NORC poll: About a quarter of U.S. adults aren’t sure if they want to get COVID-19 shots. Roughly another quarter say they won’t, and for most, their minds are made up. MORE: https://t.co/aXTvrdpCp1 pic.twitter.com/VInDaD8zmV— The Associated Press (@AP) December 9, 2020 287
As Fire Chief John Alston Jr. spoke to reporters in New Haven, Connecticut, about a spate of drug overdoses on Wednesday, he heard shouting coming from behind him."We're getting another call of a person," Alston said.He quickly helped coordinate the response, and then returned to the microphone.That scene occurred the same day that 76 people were believed to have overdosed on some form of K2, or synthetic marijuana, officials in New Haven said. Officials responded to 19 additional reports of overdoses on Thursday, bringing the total to 95 cases, according to Rick Fontana, New Haven Emergency Operations Director.Almost all of the overdoses occurred in New Haven Green, a large park in the city's downtown.On Wednesday, 72 people were transported to the hospital and four people refused treatment, according to Fontana.There have been no deaths from the spate of overdoses. New Haven police said one person is in custody. 935
Apple announced on Friday that it is planning to temporarily close several of its locations in four states as the number of coronavirus cases in some US states are surging.Apple said that two stores in Florida, two in North Carolina, one in South Carolina and six in Arizona will be closed until further notice. The closures go into effect tomorrow.“Due to current COVID-19 conditions in some of the communities we serve, we are temporarily closing stores in these areas,” Apple said in a statement. “We take this step with an abundance of caution as we closely monitor the situation and we look forward to having our teams and customers back as soon as possible.”Apple said for its locations that are remaining open, Apple is limiting store occupancy and is requiring all customers and employees to wear face coverings.Florida and Arizona both reported one-day records for new cases on Friday.Here are the impacted locations:Florida- Waterside Shops- Coconut PointNorth Carolina- Southpark- Northlake MallSouth Carolina- Haywood MallArizona- Chandler Fashion Center- Scottsdale Fashion Square- Arrowhead- SanTan Village- Scottsdale Quarter- La Encantada 1162
ANDERSON, Indiana — An inmate on work release in an Indiana county is accused of stealing election equipment. The Madison County Clerk says no voting was compromised. Indiana State Police said Tyler Sink, 26, was on work release in Madison County and was authorized to work at the clerk's office. Investigators said an employee with the Madison County Justice Center told police they found a personal electronic ballot and a memory card hidden in Sink's personal belongings. State police say they believe Sink stole the equipment after he volunteered to set up a voting site while on work release. Madison County Clerk Darlene Likens says the compromised machines are not being used in early voting and that no voter information was stolen. "There is nothing, nothing was compromised," said Likens. "Nothing of our election was compromised, not the integrity of it but it's picked up something I don't think he had a clue what it was."Madison County Prosecutor Rodney Cummings issued the following statement: 1041