Market jumps to record high after Trump signs the Covid-19 relief bill, and lawmakers plan to vote on a measure to boost stimulus checks to $2,000. Plus, taxpayers can take a bigger tax break for charitable donations in 2021. Here's how the headlines could affect your money.
The major indexes finished Christmas week mixed, with the Dow gaining less than 0.1% for the week and the Nasdaq up 0.38%. The S&P had a loss of 0.17% for the week.
Monday morning, however, all three major indexes hit new record highs after President Trump unexpectedly signed a Covid-19 relief bill.
On Sunday, President Trump signed the $2 trillion pandemic aid and full-year government spending bill into law. Covid-relief provisions include $600 stimulus checks for many Americans, and an additional $300 per week in unemployment benefits. The president had held up the package last week, calling the bill a "disgrace" and demanding lawmakers increase the direct payments to $2,000.
The House plans to vote Monday on a measure to boost the year-end stimulus payments to $2,000, and in a statement Sunday, Trump said the Senate would also "start the process for a vote that increases checks to $2,000."
Check out Grow's calculator to see how much you could get, based on the $600 figure Trump signed into law.
The spring CARES Act created a charitable contribution deduction allowing people to take an above-the-line deduction for up to $300 in cash donations to charity during 2020. The new Covid-19 relief package increases the amount to $600 for joint-filers starting in 2021. For single-filers, the amount stays at $300.
If you itemize your taxes, you may be able to claim a deduction for even more charitable donations. Hang on to your receipts to ensure you can claim the break.
Video by Stephen Parkhurst
An above-the-line deduction is a tax break that's available even if you take the standard deduction. A below-the-line deduction is available only to people who itemize their deductions.
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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