Raphael Stevens

JGI | Getty ImagesThe IRS is automatically recalculating and refunding money to Americans who filed their tax returns without claiming a new tax break on unemployment benefits.However, taxpayers will have to file an amended tax return, in some cases, to get their maximum refund.That situation applies to people who, thanks to the unemployment tax break, become newly eligible for other federal tax credits and deductions that weren’t claimed on their initial tax return, according to the IRS.More from Personal Finance:Taxpayers are leaving $1.3 billion in tax refunds on the tableNew batch of $1,400 stimulus checks includes ‘plus-up’ paymentsCFPB proposes rule to prevent foreclosures until 2022Such individuals may want to review their state returns, as well, the agency said.$10,200 unemployment tax breakThe American Rescue Plan waived federal tax on up to $10,200 of unemployment benefits, per person, received in 2020.However, President Joe Biden signed the $1.9 trillion Covid relief measure on March 11 — about a month into tax season.The tax break may make some households eligible for tax breaks that they hadn’t qualified for based on their income when they’d originally filed their taxes.That’s because the tax break technically excludes benefits from a taxpayer’s income, thereby reducing the income on which they pay tax.That income reduction may make them eligible for income-dependent tax breaks like the Earned Income Tax Credit, according to the IRS.”It’s not a judgment call,” Henry Grzes, lead manager with the tax practice and ethics team at the American Institute of Certified Public Accountants, said. “It’s a pure exercise in arithmetic.”Amended tax returnFiling an amended return isn’t a requirement — but people may be leaving money on the table if they don’t, Grzes said.Taxpayers don’t have to file an amended return immediately. They will generally have up to three years from this year’s tax deadline (May 17) to do so, Grzes said.It’s unclear how many taxpayers may have to file an amended tax return to maximize their refund. The IRS didn’t respond to a request for comment.The agency will start issuing refunds automatically starting in May and continue into the summer, the IRS said Wednesday.About 40 million people collected unemployment benefits in 2020, according to the Century Foundation. The average person received $14,000.The unemployment tax cut is not available to taxpayers whose modified adjusted gross income is $150,000 or more. That income ceiling is the same regardless of filing status (like single or married) but the calculation excludes jobless benefits.Earned income tax creditAside from the earned income credit, there aren’t many tax breaks for which unemployed individuals would likely be newly eligible, Grzes said. They may also qualify for the child and dependent care credit, for example, he said.The earned income tax credit is a refundable tax credit available to taxpayers who received certain types of income in 2020, like wages and self-employment income. Income eligibility and amount vary based on number of kids.The maximum credit is $538 for taxpayers with no children. That maximum is $6,660 for taxpayers with three or more qualifying kids.Single filers without kids can claim the earned income tax credit if their adjusted gross income is less than $15,820. A filer with three kids can earn up to $50,594 and be eligible.Married joint filers with no kids are eligible with up to $21,710 of income; that rises to $56,844 for joint filers with three kids.The IRS can automatically adjust returns for those taxpayers who claimed the earned income credit and who now may now be eligible for an increase in the credit amount (and a potentially larger refund). In other words, no amended tax return would be necessary in this case. More

David Solomon, the CEO of Goldman Sachs, speaks during the Bloomberg Global Business Forum in New York, September 25, 2019.Shannon Stapleton | ReutersGoldman Sachs, Starbucks and a range of other organizations across the U.S. announced Tuesday a collaborative effort aimed at narrowing the racial wealth gap between Black and white Americans.The initiative, called NinetyToZero, also includes the American Civil Liberties Union, the Wharton School of the University of Pennsylvania and the Robin Hood foundation as backers.”A handful of folks got together and said, ‘We have a coordinated problem that we have to deal with and the only way we’re going to deal with it is a coordinated solution’,” Robin Hood CEO Wes Moore said on CNBC’s “Squawk Box.””The problem we’re trying to solve for was the fact that there is this 10-to-1 racial wealth gap that we have with the United States between Black families and white families,” added Moore, who is set to step down from the New York City-based anti-poverty nonprofit next month.Moore appeared on “Squawk Box” alongside Goldman Sachs Chairman and CEO David Solomon.”The ability to solve any challenge became more and more difficult — and frankly, impossible — if we do not deal with the fact that this racial wealth gap continues to impede any form or growth or progress,” Moore said.NinetyToZero is the latest corporate action in the past year focused on addressing racial inequality in the U.S. Following the death of George Floyd in police custody last May, a number of companies announced financial investments in Black communities and organizations, as well as other internal efforts, such as reforming hiring practices. More

Take a look at some of the biggest movers in the premarket:Illumina (ILMN) – Illumina issued preliminary current-quarter and full-year guidance that exceeded current analyst estimates. The life sciences company said its projected results are being driven by record orders in its gene-sequencing and related businesses. Illumina jumped 9.2% in premarket action.Cara Therapeutics (CARA) – Cara Therapeutics shares surged 11.4% premarket following news that the biopharmaceutical company’s stock will be added to the S&P SmallCap 600 index, effective on Wednesday.Snap (SNAP) – Snap shares gained 1.5% in premarket action following an upgrade at Atlantic Equities, which now rates the Snapchat parent’s stock at “overweight” vs. the prior “neutral.” The firm cites valuation as a key factor, as well as Snap’s transformation from a messaging-centric platform to a broad content platform.Mudrick Capital Acquisition (MUDS) – The special purpose acquisition company is taking Topps – best known for baseball cards and Bazooka gum – public in a merger that values the company at $1.3 billion. Topps chairman and former Disney CEO Michael Eisner will roll his entire stake into the new company. Mudrick soared 18.5% in premarket trading.Credit Suisse (CS) – The bank will take a $4.7 billion hit from its dealings with hedge fund Archegos Capital Management, and has announced the departure of Chief Risk Officer Lara Warner and investment banking head Brian Chin. Credit Suisse also launched an investigation into the Archegos-related losses.Moderna (MRNA) – Moderna struck an agreement with contract manufacturer Catalent (CTLT) to nearly double output of Moderna’s Covid-19 vaccine at Catalent’s Bloomington, Indiana, plant, according to The Wall Street Journal.Phillips 66 (PSX) – The energy producer said it will report a larger-than-expected first-quarter loss, stemming from the severe winter weather in central and southern U.S. states that crippled its Gulf Coast petrochemical operations. Phillips fell 1.3% in premarket trading.Southwest Airlines (LUV) – Southwest recalled 209 pilots from voluntary leave, with plans to return them to active duty on June 1. The move comes in anticipation of a summer rebound in travel demand.Tesla (TSLA) – Tesla stock is only worth $150 per share, according to Roth Capital senior research analyst Craig Irwin. Irwin called Tesla only a “minor player” in the U.S. and European markets, telling CNBC that people wrongly assume that Tesla has no competition.Niu Technologies (NIU) – The Beijing-based company reported sales of 149,649 e-scooter sales during its first quarter, compared to 40,160 in the year-ago quarter. Niu Technologies shares rose 1% in premarket trading.BlackRock (BLK) – Credit Suisse named the asset management firm a “top pick,” saying it expects “robust organic growth” from BlackRock stemming from an attractive business mix.GameStop (GME) – The videogame retailer’s stock is down 1% in premarket trading after a volatile session Monday following news that GameStop planned to issue up to 3.5 million shares.Signet Jewelers (SIG) – The jewelry retailer announced a deal to buy jewelry subscription services Rocksbox for an undisclosed amount. More

In this articleCSG.N-CHA Swiss flag flies over a sign of Credit Suisse in Bern, SwitzerlandFABRICE COFFRINI | AFP | Getty ImagesCredit Suisse on Tuesday announced several high-level staff departures and proposed a cut to its dividend as it weighs heavy losses from the Archegos Capital saga.The Swiss lender now expects a first-quarter pre-tax loss of around 900 million Swiss francs ($960.4 million), after taking a charge of 4.4 billion Swiss francs as a result of the scandal.”The significant loss in our Prime Services business relating to the failure of a U.S.-based hedge fund is unacceptable,” CEO Thomas Gottstein said in a trading update.Investment Bank CEO Brian Chin and Chief Risk and Compliance Officer Lara Warner will step down from their roles with immediate effect, the bank said.Last week, Credit Suisse revealed that it was expecting heavy losses in the wake of the meltdown of U.S. hedge fund Archegos Capital. The bank was forced to dump a significant amount of stock to sever its ties to the troubled family office.The executive board has also waived its bonuses for the 2020 financial year, the bank announced Tuesday, with Chairman Urs Rohner giving up his “chair fee” of 1.5 million Swiss francs.At its AGM on April 30, Credit Suisse will now propose a dividend of 0.10 Swiss francs gross per share along with the amended compensation report.”Particularly following the significant US-based hedge fund matter, the Board of Directors is amending its proposal on the distribution of dividends and withdrawing its proposals on variable compensation of the Executive Board,” the Swiss lender said in a trading update.It has suspended its share buyback program and said it does not intend to resume share purchases until it has regained its target capital ratios and restored its dividend.Credit Suisse shares gained 1.7% by late morning trade in Europe.Another scandalLast month, the bank announced a shakeup of its asset management business and a suspension of bonuses as it looked to contain the damage from the collapse of British supply chain finance firm Greensill Capital.The Board has launched two separate investigations, to be carried out by third parties, into the Greensill and Archegos sagas, vowing to “not only focus on the direct issues arising from each of them, but also reflect on the broader consequences and lessons learned.”Chin will be replaced at the helm of the investment bank on May 1 by Christian Meissner, currently Credit Suisse’s co-head of international wealth management investment banking advisory and vice chairman of investment banking.Joachim Oechslin has been appointed interim chief risk officer and Thomas Grotzer interim global head of compliance as of Tuesday. All three will report to CEO Gottstein.”In combination with the recent issues around the supply chain finance funds, I recognize that these cases have caused significant concern amongst all our stakeholders. Together with the Board of Directors, we are fully committed to addressing these situations. Serious lessons will be learned,” Gottstein said in a statement.’More casualties’Beat Wittmann, chairman and partner at Zurich-based Porta Advisors, told CNBC on Tuesday that while the Credit Suisse case does not represent a systemic crisis, there could be “more casualties” unless the root causes are addressed in the banking sector.”The danger is always that we just focus on changing people but stick to the same business models, the same incentives, exploiting the same regulatory loopholes,” Wittmann said.”The worst thing of all, particularly in European investment banks, they are only able to employ the ‘B-league’ U.S. investment bankers, and the shareholders of course are paying the price for that.”Wittmann also argued that European investment banks had not adapted to safeguard themselves in the same way as their American counterparts in the wake of the 2008 global financial crisis.”The European banks simply continued with their universal banking model and if this is not changed really at the root cause of the problem, we will see more casualties this year in Europe and much bigger ones. And then at some stage, we will see one which will be systemically relevant, and the regulators of course will then act.”He added that in the current environment of expansionary fiscal policy and loose monetary conditions, the risks of a systemic event are rising as risk assets continue to inflate. More

Despite a breakthrough last month, London-based bankers are nervously waiting for Britain and Brussels to agree on a post-Brexit relationship for their financial services industries.The U.K. and the EU agreed to continue talks and co-operation on financial services on March 26. In a short statement, the U.K. and the EU announced they had concluded technical negotiations regarding a “memorandum of understanding” for the industry, creating a framework for “voluntary regulatory cooperation.”The document was widely anticipated to be released before the end of March and still needs formal sign off, a matter which “can be done expeditiously” as per the released text. But despite this, bankers who have spoken to CNBC feel the industry has continually been neglected throughout Brexit talks and they’re not confident the agreement changes the outlook, especially as regulatory cooperation will be voluntary and not binding on the EU. The U.K. Treasury did not respond this specifically, but directed CNBC to its statement regarding the memorandum of understanding.New ideas about urban air mobility could one day transform the way people travel between cities.Nikolay Pandev | E+ | Getty ImagesFinancial services make up 7% of the U.K.’s total output, and 10% of government tax receipts, but the industry was not a part of the “zero tariff-zero quota deal” concluded on Dec. 24, as the matter was being negotiated separately. The EU so far has not committed to binding regulatory equivalence — where British regulation is deemed to be equivalent to their own — with each country having to resort to its own decisions: Italy has kept the equivalence for example, while the Netherlands has withdrawn it. The absence of a deal meant that as of Jan. 1, U.K. central counterparties were required to have recognition by the European regulatory body to continue facilitating billions of euros of trades in over-the-counter financial derivatives for EU banks. There has been a slight reprieve in that EU banks have been given 18 months to reduce their exposure to these British clearing houses, with a time-limited permission set to expire in June 2022. Earlier this month, the U.K. regulator also renewed its commitment to allow U.K.-based banks the ability to trade these derivatives on European platforms. But, due to the timestamp, it has put European banks with U.K. branches in an uncompetitive position and has already made a significant dent in trading volumes. IHS Markit released data in February showing that the U.K.’s share of euro swaps (a type of financial derivative) trading has fallen from 40% in July 2020 to 10% in January 2021. Amsterdam also overtook London as the largest trading center in Europe for cash equities in January, a move that CBOE Europe told CNBC was “unprecedented” and likely permanent.All this has meant that London-domiciled banks have had to make personnel moves to guarantee continued trading access. The Bank of England Governor Andrew Bailey in January said that so far around 7,000 jobs have moved due to Brexit, less than feared but there may be further knock-on effects. Goldman Sachs had already started moving bankers to regional offices in the last few years, expanding teams in Milan, Madrid, Amsterdam and Stockholm. Since Brexit, re-location moves to Frankfurt and Paris have accelerated. A source at the bank, who preferred to remain anonymous as they were not authorized to speak publicly, said that several hundred employees had moved, and that the bank has taken out new licenses and real estate, and well as beefed up execution capabilities. They have also expanded the Dublin office for asset management. European banks with London branches such as Deutsche Bank have also moved personnel to the continent, totaling the low hundreds, including those covering EU clients. The bulk of the re-location has been to Frankfurt, the bank’s main headquarters. Barclays have talked of “minimal” impact to staffing on the continent. Sources have told CNBC that the figure is also likely to be in the low hundreds, with the main relocation cities being Paris and Dublin, where Barclays has established a headquarters for its Europe entity. The Goldman Sachs banker told CNBC that “what politicians are missing is that it’s not about the couple of hundred bankers who have been moved … but rather that the revenue associated with those employees will get booked and taxed in Europe, not to mention all the other personal taxes and consumption that goes on top of that.” “Politicians protected the fish, but sold us bankers down the river,” they added, referencing the fishing quotas that were agreed for the Dec. 24 Brexit deal. Another Barclays banker, who also spoke on condition of anonymity as they were not authorized to speak publicly, told CNBC that it is important to distinguish between the short term and the long term impacts of Brexit. “In the short term, it’s pretty clear that Europe will try to drive as many jobs out of the U.K. into Europe (they are mainly after high-paid jobs). Moving clearing and the whole financial infrastructure will be more difficult. Longer term, the key question will be ‘where is your European center and what entity do you use to book everything, the U.K. or the European one?’.” The source added that “if U.S. banks decide to not use the U.K. entity anymore, that will mean more job moves in (the) middle and back office. Eventually you will see London and Paris as competing hubs in financial services.” One other concern expressed by another banker at Morgan Stanley, who also spoke to CNBC on condition of anonymity, is that ‘while a lot of temporary equivalence decisions have been granted, there is no guarantee of extension. More people will therefore be expected to move over the coming months and years.”  Many professionals in the U.K. capital are not optimistic that the memorandum of understanding can reverse both the trading and personnel moves toward the continent. The flow has been one way.  More