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Biden's policy plans for the first 10 days: How the headlines can affect your money

Biden will direct Cabinet members to take immediate action regarding economic relief.

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US President-elect Joe Biden delivers remarks on the Electoral college certification at the Queen Theatre in Wilmington, Delaware on December 14, 2020.
Roberto Schmidt | AFP | Getty Images

Markets are trying to bounce back after a losing week, President-elect Joe Biden plans to dive into economic recovery immediately once he takes office, and the IRS delays the start of tax season. Here's how the headlines could affect your money.

Markets trying to recover

Markets continued their downward turn on Friday, with all three major indexes falling. Over the course of the week, the Dow lost 0.9%, and the Nasdaq and S&P 500 each lost 1.5%. 

All three indexes were up early Tuesday after being closed Monday for Martin Luther King Jr. Day.

Biden lays out priorities for first 10 days

Washington is gearing up for Biden's inauguration on Wednesday, and the president-elect has already announced plans for his first 10 days in office. Among his to-dos, Biden will direct Cabinet members to take immediate action regarding economic relief to working families.

Last week Biden unveiled his $1.9 trillion Covid relief package, including direct payments of $1,400 to most Americans and federal weekly unemployment benefits of $400.

Biden's pick for Treasury secretary, Janet Yellen, whose confirmation hearing begins Tuesday, has said the government should "act big" in its next round of coronavirus relief. 

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Where your federal taxes are spent

Video by David Yang

IRS delays start of tax filing

The IRS has delayed the start of tax season from its typical late January to February 12. The deadline to file is still April 15.

To prepare, make a list of key income forms you'll need, like W-2s and 1099s, and start pulling together receipts and documentation to claim valuable tax breaks.

There's a good reason to file early this year: If you're eligible for Covid stimulus money but didn't receive it or got the wrong amount, you can claim the Recovery Rebate Credit on your tax return when you file.

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Tax credits vs deductions: Here's the difference

Video by Stephen Parkhurst

Words you've heard: Recovery Rebate Credit

Some of the people eligible to receive stimulus money didn't get it. The Recovery Rebate Credit enables qualifying taxpayers to claim those missing funds on their tax return and get a credit against their 2020 income taxes. 

Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.

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