Markets were mixed, how much it costs to live in Texas, and why your tax refund might be delayed. Here's how the headlines could affect your money.
The IRS is dealing with staffing setbacks from the pandemic and a backlog of paper returns to process. Plus, last month's passage of the American Rescue Plan changed the tax code during tax season.
Calling the IRS probably won't get you answers. To check your refund's status, try the "Where's My Refund?" tool online or download the IRS2Go app.
Video by Courtney Stith
Americans flocked to Texas during the Covid pandemic: Move.org called it the No. 2 most moved-to state in 2020, and moving company Atlas Van Lines deemed it an "inbound state," where a greater share of total moves were coming instead of going.
Housing there is pretty affordable: The national average rent is $1,460, according to RentCafe. The average rent in Dallas is about $1,260 per month and $1,100 in Houston. The median Texas home value is $231,384, according to Zillow, which is lower than the national median of $276,717.
If you're tempted to make a move, "research the place you are looking to move, and start estimating how cost of living might change," says Autumn Lax, CFP in the Wealth Builder division of Drucker Wealth Management. "Set aside the [amount of] money you anticipate you will be paying each month, so you get a feel for what that's like before the move."
When you sell a taxable asset, you pay capital gains tax on the difference between the asset's value at purchase (your cost basis) and what it's worth on the date you sell. When you inherit such an asset, that basis may be adjusted (i.e. "stepped") up or down to reflect its value at the previous owner's date of death. That can provide a tax break. A proposal in the American Families Plan seeks to curtail the step-up in basis exemption.
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.
More from Grow:
- Tax refunds are being delayed as the IRS holds nearly 30 million tax returns for manual processing
- Texas was the most moved to state in 2020 after Florida — here's what it costs to live there
- When you sell an investment, you may owe taxes on your profits: Here’s what you need to know