Indexes hit new highs, some taxpayers may need to file an amended return to claim the unemployment benefit tax break, and the cryptocurrency market tops $2 trillion. Here's how the news could affect your money.
The S&P and Dow both hit record highs Monday as U.S. job growth continues. The Dow rose 1.1%, and the S&P gained 1.4%. The Nasdaq climbed 1.7%.
Indexes were mostly flat Tuesday morning.
The American Rescue Plan waived federal tax on up to $10,200 of 2020 unemployment benefits per person. The IRS is automatically sending refunds to most qualifying taxpayers who filed before the break went into effect. But the agency says some Americans will have to file an amended return to get what's owed to them.
Video by Stephen Parkhurst
The key element: You may need to file an amended return if the reduction in taxable income makes you newly eligible for other tax breaks, such as the Earned Income Tax Credit.
Check with your tax professional to see if it makes sense to file an amended return.
The value of the cryptocurrency market topped $2 trillion for the first time on Monday, driven by ether, the second biggest digital coin after bitcoin.
Ether hit an all-time high of $2,151.25 Tuesday, and is up over 180% year to date. Last month, bitcoin passed a record high of $60,000. It was trading at $58,000 on Tuesday.
Investors differ on their opinions on the market, but bestselling author Suze Orman recommends considering it. "Bitcoin is a legitimate investment and you should absolutely be buying it," she recently told Grow, as long as you only use money you can afford to lose.
Bitcoin is the world's largest cryptocurrency and accounts for more than 50% of the market. The digital coin's worth has skyrocketed since its launch in 2009. Investors include major companies like electric automaker Tesla and tech giant Square.
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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