What will economic recovery from COVID-19 look like? Liz Ann Sonders, chief investment strategist for Charles Schwab, discusses the current economic contraction and what to expect as we recover from it. If you receive Social Security, you may qualify for a stimulus payment. Sally Schreiber clears up the confusion about whether filing a tax return is necessary. Gifting your home to your adult children can saddle them with taxes. There’s a much better way to transfer ownership, as Liz Weston explains.
What Shape Will The Recession/Recovery Take? — The economy is currently facing down its largest contraction since perhaps the Great Depression. While a V-shaped recovery is unlikely, there’s a question as to what letter best describes the shape of the recovery we can expect. Liz Ann Sonders of Schwab offers an overview of our current situation with an eye to how the economy may change as it recovers. Read more…
Qualified Social Security Recipients Will Automatically Receive Stimulus Payments — Treasury announced Wednesday that qualified Social Security and Railroad Retirement benefit recipients will receive economic stimulus payments automatically without having to file a tax return. The economic stimulus payments, or recovery rebates, were enacted by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136. Eligible individuals will receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples. Read more…
Liz Weston: Don’t Give Your Adult Kids Your House — Gifting a home can result in leaving your kids a big, unnecessary tax bill and put your house at risk if your kids get sued or file for bankruptcy. You could also be making a big mistake if you hope it will help keep the house from being consumed by nursing home bills. But there’s a way to avoid these problems, as Liz Weston explains. Read more…
John R. Day, Bill Ennis, Stephanie Hall, and Matt Heller