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President Donald Trump has renewed calls to end a popular Wall Street tax break.
The “carried interest loophole” refers to favorable tax treatment for certain compensation received by private equity, venture capital and hedge-fund managers.
Investment fund general partners pay long-term capital gains on carried interest held for more than three years.

President Donald Trump takes questions during a press conference with unseen Israel’s Prime Minister Benjamin Netanyahu in the East Room of the White House in Washington, DC, on February 4, 2025.
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Investment managers also receive management fees, subject to regular income taxes. But most earnings come from carried interest, according to tax expert Steve Rosenthal.

Bipartisan support for carried interest reform

Critics of carried interest argue these earnings should be treated like wages, taxed at regular income tax rates, rather than receiving preferential capital gains treatment. 
“It’s come up again and again on a bipartisan basis,” said Garrett Watson, director of policy analysis at the Tax Foundation. But there’s been consistent pushback from industry lobbyists. 

“We encourage the Trump administration and Congress to keep this sound tax policy … that supports jobs, workers, small businesses, and local communities,” the American Investment Council, a trade group that represents private equity, said in a statement.
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While Trump vowed to end the tax break during his first term, the Tax Cuts and Jobs Acts of 2017 enacted a smaller change — extending the required holding period for long-term capital gains treatment to three years from more than one year. 
A provision to extend the holding period to five years was considered for the Inflation Reduction Act in 2022. But in an evenly divided Senate, the change was cut amid industry pushback.
“The carried interest loophole is a fascinating challenge,” Rosenthal said. “Everyone wants to close it, except private equity executives.”

Projected revenue is a ‘drop in the bucket’

The carried interest proposal comes as Republicans debate spending priorities and seek additional ways to pay for Trump’s tax cuts. 
However, revenue from eliminating the carried interest tax break is a “drop in the bucket” compared with the trillions needed to extend expiring tax breaks and pass additional priorities, Watson said.
Taxing carried interest as regular income could decrease the federal budget deficit by $13 billion over 10 years, according to a December estimate from the Congressional Budget Office.  More

The IRS has issued 3.2 million refunds for the 2025 filing season so far.
As of Jan. 31, the average refund amount was $1,928, which covers the first four days of the filing season.
The agency sends most refunds in less than 21 days. You can check the status via “Where’s My Refund?” on IRS.gov.

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Tax season has kicked off, and the IRS has issued roughly 3.2 million refunds this year as of Jan. 31, the agency reported. 
This represents current-year returns filed.

The average refund was $1,928 over the first four days of the filing season.
However, the IRS expects more than 140 million individual filings through the April 15 deadline, so the average refund could change throughout the season.
Typically, you can expect a refund when you overpay taxes throughout the year via paycheck withholdings or estimated payments.
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You can check the status of your refund for the 2025 season via the “Where’s My Refund?” tool or the IRS2Go app.

How to get a faster tax refund

“Filing electronically and selecting direct deposit is the best way to get your refund quickly,” former IRS Commissioner Danny Werfel said in early January.
Typically, the IRS issues most refunds in less than 21 days, but several factors can impact your refund timing, according to the agency.
By law, the IRS can’t issue earned income tax credit or additional child tax credit refunds before mid-February. Those refunds should arrive by March 3 if there are no issues with your tax refund, the agency said.  More

Chappell Roan used her Grammy acceptance speech to call out record labels for not providing their artists with sufficient health-care protections.
Even with the number of uninsured Americans at a historic low, health coverage is still out of reach for some people.

Chappell Roan at the 67th GRAMMY Awards held at the Crypto.com Arena on Feb. 2, 2025 in Los Angeles, California.
Christopher Polk | Billboard | Getty Images

With a Grammy win for best new artist, Chappell Roan is at a career high. A few years ago, she was one of the millions of Americans without a job or health insurance.
“I told myself that if I ever won a Grammy and got to stand up here in front of the most powerful people in music, I would demand that labels, and the industry profiting millions of dollars off of artists, would offer a livable wage and health care, especially to developing artists,” she said at the Grammy awards show in Los Angeles on Feb. 2.

“When I got dropped, I had zero job experience under my belt. And like most people, I had a difficult time finding a job in the pandemic and could not afford health insurance,” she said in her acceptance speech.
“If my label would have prioritized artists’ health, I could’ve been provided care by a company I was giving everything to. So, record labels need to treat their artists as valuable employees with a livable wage and health insurance and protection.”
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Roan, whose given name is Kayleigh Rose Amstutz, was released from her record label in 2020. That’s the same year a huge spike in unemployment resulted in an estimated 1.6 million to 3.3 million people losing coverage through their employers, according to the Health and Human Services Department.
At the time, coverage expansions put in place by the Affordable Care Act acted as a safety net for those experiencing coverage disruptions.

That government-backed aid significantly lowered the costs of coverage for people buying health insurance plans on the ACA marketplace. Those customers include anyone who doesn’t have access to a workplace plan, such as self-employed individuals like musicians, as well as students and the unemployed, among others.

‘Volatile’ income can make health coverage tricky

Chappell Roan accepts the Best New Artist award onstage during the 67th Annual GRAMMY Awards at Crypto.com Arena on Feb. 2, 2025 in Los Angeles, California.
Kevin Winter | Getty Images

Gains in Medicaid and marketplace coverage have contributed to significant declines in the uninsured rate, according to KFF, a nonprofit formerly known as the Kaiser Family Foundation. 
“With the Affordable Care Act, there’s a health care safety net for artists who previously had none,” said Larry Levitt, KFF’s executive vice president for health policy. The ACA also guarantees insurance for pre-existing conditions and subsidizes premiums based on income, he said.
Yet, there can still be challenges for artists in getting health insurance if their recording labels don’t provide it, according to Levitt.
“If income is volatile, premiums can fluctuate and be unpredictable because subsidies are based on actual income for the year,” Levitt said. “So an artist who has no income for a period of time can be left with no viable health insurance options.”

“It makes it really hard, especially for starving artists,” said Carolyn McClanahan, a physician and certified financial planner based in Jacksonville, Florida.

‘A flaw in the industry at large’

Jeff Rabhan, the former chair of the Clive Davis Institute of Recorded Music at New York University’s Tisch School of the Arts, said in a guest column in The Hollywood Reporter that “Roan’s call for record labels to pay artists a livable wage and provide health care was noble — but also wildly misinformed.”
In the column, published Feb. 5, Rabhan said “if labels are responsible for artists’ wages, health care and overall well-being, where does it end and personal responsibility begin?”
“Should artists have better health-care options? Absolutely,” Rabhan said in the column. “Sounds like a union thing to me. Most independent managers don’t have insurance, either — it’s a flaw in the industry at large, not just on the label side.”

Since those in the music industry are often paid as independent contractors, that makes it more likely they will forgo coverage, according to McClanahan, founder of Life Planning Partners and a member of the CNBC Financial Advisor Council.
“Unfortunately, many are not part of a union and are on their own in getting health insurance,” she said. “Sadly, many self-employed people don’t understand the Affordable Care Act and how to obtain insurance on their own.”
Even today, there are about 25 million uninsured Americans, KFF research shows.

“Most of the country is involved in [an] employer/employee relationship where the company is responsible for their wages, health care, and some care about your well-being. However, most artists don’t have this luxury and don’t understand they are basically running their own business,” McClanahan said.
“At least give them the tools.”
CNBC’s attempts to reach Roan for comment were not successful, but Roan responded to Rabhan on Instagram by saying she donated $25,000 to support “struggling dropped artists.”
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Senators expressed concern that Elon Musk’s DOGE had “infiltrated” the U.S. Department of Education and possibly gained access to federal student loan data for millions of Americans.
Recent news that Musk was granted access to the Treasury Department’s system, which includes Social Security and Medicare payments, also triggered criticism from lawmakers and advocates.

U.S. Sen. Elizabeth Warren (D-MA) speaks to a crowd gathered in front of the U.S. Treasury Department in protest of Elon Musk and the Department of Government Efficiency on Feb. 4, 2025 in Washington, DC.
Anna Rose Layden | Getty Images

U.S. senators expressed concern on Friday that Elon Musk’s cost-cutting effort, the Department of Government Efficiency, had “infiltrated” the Department of Education and possibly gained access to federal student loan data on tens of millions of borrowers.
In a letter signed by 16 Democratic senators, including Elizabeth Warren of Massachusetts and Chuck Schumer of New York, the lawmakers said that the Education Department’s student loan database “contains millions of borrowers’ highly sensitive information, including Social Security numbers, marital status, and income data.”

The senators cited reporting by The Washington Post, which noted Education Department staff were “deeply alarmed” by DOGE staffers’ access to federal student loan borrowers’ personal information.
“The millions of families who rely on ED to help them achieve the American Dream deserve answers about reports that an unelected billionaire and his team now have access to some of their most sensitive personal information,” the senators wrote.
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The lawmakers addressed their letter to U.S. Department of Education Acting Secretary Denise Carter, and asked for answers by Feb. 13, including on whether DOGE staff meet “the strict criteria” that would allow them involvement in the Education Department’s data on borrowers. Musk’s DOGE is an office within the president’s executive office, tasked with looking for ways to shrink the federal budget.
Madi Biedermann, spokesperson for the U.S. Department of Education, said DOGE staff are federal employees.

“They have been sworn in, have the necessary background checks and clearances, and are focused on making the Department more cost-efficient, effective, and accountable to the taxpayers,” Biedermann said. “There is nothing inappropriate or nefarious going on.”
The White House did not immediately respond to a request for comment.
Recent news that DOGE was granted access to the Treasury Department’s system, which includes Social Security and Medicare payments, also triggered criticism from Democratic lawmakers and advocates.

Separately, the Trump administration is considering an executive order that could shut down parts of the U.S. Department of Education, The Wall Street Journal reported Monday.
It’s uncertain what this would mean for the 42 million Americans with federal student loans. The Education Department administers the country’s $1.6 trillion in outstanding education debt.
Public Citizen Litigation Group and the National Student Legal Defense Network, representing the University of California Student Association, also filed a lawsuit on Friday against the U.S. Department of Education for sharing data with Musk’s DOGE.
“Students’ participation in federal financial aid programs doesn’t give the government carte blanche to use their personal information for whatever purposes it wants,” said Adam Pulver, an attorney at Public Citizen Litigation Group.

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The earned income tax credit, or EITC, is worth up to $7,830 for eligible families with three or more children for 2024.
Meanwhile, the additional child tax credit, or ACTC, is up to $1,700 for 2024.
Both tax breaks are “refundable,” meaning filers can use the credits to claim a refund, even without tax liability.

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Many taxpayers qualify for credits worth hundreds or even thousands of dollars — even if you don’t have a federal filing requirement.  
Generally, you must file a tax return with earnings over a certain threshold, depending on filing status. However, submitting your return can be beneficial, even when it’s not required, according to the IRS.   

“I’ve seen five-figure refunds” for those claiming both the earned income tax credit, or EITC, and additional child tax credit, or ACTC, with two or more children, said Syracuse University law professor Robert Nassau, director of the school’s low-income tax clinic. 
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Both tax credits are “refundable,” meaning filers can still get a refund, even without tax liability, which can be a “big deal,” Nassau said.
Sometimes, lower earners don’t owe taxes after subtracting the standard deduction and tax credits, like EITC and ACTC. Their income could be below the filing threshold, but they must submit a return to claim a refund.
Together, the EITC and ACTC are “often considered the largest financial event of a low-income family’s year,” said Elaine Maag, a senior fellow in the Urban-Brookings Tax Policy Center at the Urban Institute, who wrote about the tax credits this week. 

Here’s a breakdown of how these tax credits work and who qualifies. 

How the EITC works

Designed for low- to moderate-income workers, the earned income tax credit is worth up to $7,830 for eligible families with three or more children for 2024. The maximum credit for single or married workers ages 25 to 64 without kids is $632.
“The EITC starts phasing in at the first dollar of earnings,” Maag said.
You may be eligible for the EITC with “earned income,” or wages from work, of up to $59,899 for single filers and up to $66,819 for married couples filing jointly.
However, nearly 1 in 5 eligible taxpayers don’t claim the EITC because they don’t know about it or don’t realize their qualify, former IRS Commissioner Danny Werfel said in early January. 

Who qualifies for the child tax credit 

“After you earn $2,500 and you have children, you’re also eligible for a child tax credit,” Maag said. 
The child tax credit is worth up to $2,000 per kid under age 17, and the refundable portion, known as the additional child tax credit, is up to $1,700 per child. 
The tax break decreases once adjusted gross income exceeds $200,000 for single taxpayers or $400,000 for married couples filing jointly. 
By law, the IRS can’t issue EITC or ACTC refunds before mid-February. You can check the status of your refund via the agency’s “Where’s My Refund?” tool or the IRS2Go app. More

A recent consumer survey found that 86% of Americans expect price hikes from higher tariffs; and 46% are planning to shop secondhand to lessen the financial blow.
Thrift shopping has been a growing interest among shoppers in recent years — and there are no signs of it slowing down.
Experts weigh in on what to consider when you scroll online or step into a secondhand shop. 

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With tariffs ramping up, the prices on some everyday items will rise as well. That is weighing heavily on American consumers. 
A recent consumer survey found that 86% of Americans expect price hikes from higher tariffs; and many already have a strategy to cushion the blow.

Faced with higher costs, 67% plan to change their shopping habits, according to the report by Bid-on-Equipment. Among the top changes respondents plan to adopt, 46% say they will shop at thrift or secondhand stores. Other saving strategies include comparison shopping or buying fewer imported goods. The survey polled more than 1,000 adults in January.
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In another survey by shopping app Smarty, 50% of respondents said with tariffs, they’re more likely to consider secondhand goods or local alternatives.
“Initially there’s quite a bit of uncertainty, and we expect that to grow while the timetable for these tariffs start to become people’s reality,” said Vipin Porwal, Smarty’s founder. “Savvy consumers will look to ramp up savings and rewards opportunities any way they can.”

Some Americans reconsider thrifting

A separate report by ThredUp, an online consignment and thrift store, reflects a similar finding: More than half, 55%, of surveyed consumers say if the economy doesn’t improve, they’ll spend a higher share of their apparel budget on secondhand items. 

“You can see this only amplifying” in a world with tariffs and inflation, said James Reinhart, CEO of ThredUp.
In fact, for 60% of respondents, thrifted clothes gives them the most “bang for their buck,” the report found. The report is based on research by GlobalData, as well as a December 2023 survey of more than 3,600 adults. 

‘Tariffs are a tax’

“The tariffs are a tax on the consumer,” said Shawn Grain Carter, an associate professor at the Fashion Institute of Technology, part of the State University of New York.
Some popular brands like Shein and Temu imported from China could face an immediate impact and will likely funnel those extra costs to customers in the way of higher prices. 

As part of the new tariffs on China, President Donald Trump revoked a popular tax loophole known as de minimis. The exemption allowed many e-commerce companies to send goods worth less than $800 into the U.S. duty-free.
“This is a major change,” Ann Cantrell, associate professor of fashion business management at the FIT, said of the new rule. 

Recommerce is taking off

Buying from secondhand stores to get a discount is not a new trend. In 2023, 85% of respondents said “saving money” was the top reason they shop in thrift stores, according to a 2024 report by Capital One. 
What’s more, thrifters save on average $1,760 a year by purchasing secondhand, the bank found. 
Shoppers continue to embrace so-called recommerce, driven by a pursuit of value and a desire to shop in more sustainable ways. Reports show the stigma around buying secondhand is now largely gone.
Over the next five years, the recommerce market is projected to grow 55% by 2029, reaching $291.6 billion and outpacing the overall retail market, according to a 2024 recommerce report by OfferUp, an online marketplace for buying and selling new and used items.
While the industry has been dominated by clothing resale, 76% of recommerce transactions now involve non-clothing items like electronics, furniture, home goods, sports equipment and car parts, OfferUp found. 
Still, secondhand shopping cannot replace all of the conveniences that consumers have become accustomed to, according to Steven Conners, founder and president of Conners Wealth Management in Scottsdale, Arizona.
“We are in a convenience economy, we are programmed by the likes of Amazon,” Conners said. “I would be reluctant to say secondhand items are going to be all the rage six months from now.”

What to know before you shop secondhand

Whether you’re scrolling online for a secondhand item or stepping into a brick-and-mortar thrift store, you should prioritize the quality and the construction of your products, experts say.
Consumer savings expert Andrea Woroch recommends shopping local listing sites like Facebook Marketplace and NextDoor to find deals for large household items and sporting goods, such as furniture, bikes and even light fixtures like chandeliers, which are often imported and tend to cost a lot to ship.
However, “avoid large household appliances which could not function properly if you’re buying directly from another person,” Woroch said. “Your best bet with large and small kitchen appliances is to look for certified refurbished models from reputable retailers like Amazon Renewed or open-box items or floor models from The Home Depot or Best Buy.”
When it comes to clothing, there is no shortage of stores and sites for secondhand apparel and accessories. Those savings may not be as significant, Woroch cautioned.

“Sometimes the prices for gently used clothing are similar to what you can find on sale for new items at the end of the season from regular retailers or through discount shopping stores like Nordstrom Rack, Ross and TJMaxx,” she said.
However, there may still be a “better value proposition” through secondhand and resale stores, FIT’s Grain Carter said.
But “to get the best value for your money” consider the four C’s, Grain Carter said: cut, construction, craftsmanship and condition.
For instance, look at the fibers and materials used to make the clothing item: cotton, silk, linen, flax and wool are natural fibers that will last longer. Engineered or “man-made” fibers like spandex will decompose and have a “shorter shelf life,” according to Grain Carter.
“When you start paying attention to those things, you’ll know this is a garment that has stood the test of time,” she said — and better yet, “it will continue to stand the test of time.” More

The S&P 500 provided investors with record gains over the past two years.
In 2025, focusing on that index may not reap the same gains.
“The set it, forget it is done,” said Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management.

A person walks past the New York Stock Exchange at Wall Street in New York on Feb. 3, 2025.
Angela Weiss | AFP | Getty Images

A “torrid two-year stretch” prompted the S&P 500 to gain around 70%, but that momentum is stalling, Morgan Stanley Wealth Management said in its investment strategy research this week.
Consequently, the days of the “set-it-and-forget-it” approach, where individual investors reaped large gains just by parking their stocks in an S&P 500 index fund buoyed by the Magnificent Seven, may be over.

“The ‘set it, forget it’ is done,” said Lisa Shalett, chief investment officer at Morgan Stanley Wealth Management. “We can’t set it and forget it because there’s new considerations every morning when you walk in the door.”
The investment environment is shifting to a new period that Morgan Stanley is calling “The Great Normalization,” where rates and valuations may normalize, equities may be driven by earnings growth, and there may be less index concentration.
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The announcement that China-based company DeepSeek has built a powerful new artificial intelligence model may undermine U.S.-only dominance in the space, Morgan Stanley notes in its latest investment research.
Moreover, the Federal Reserve has also recently made it clear that they are going to be patient and are in “no hurry to cut rates any further,” Shalett said.

Despite a 30-day pause on tariffs for both Canada and Mexico, no one can predict what may happen when that time is up, she said — and how the market may react.
“When you have rising uncertainty, you need to price in risk,” Shalett said.

Time to ‘demand higher returns’ for risk

It’s now important for investors to be diversified and pay attention to the idea that risk premiums are going up, Shalett said.
“They should demand higher returns for the risk that they’re taking,” Shalett said.
Investors may look for value by seeking cheaper stocks where expectations aren’t already priced in, she said. In a more idiosyncratic market, some investment strategies like commodities or hedge funds may perform better, she said.
Tariff announcements sent markets falling early Monday, though news of a 30-day pause with Mexico prompted a rebound that same day.

Though just a blip, the event was a wake-up call for individual investors, financial advisors said. As new developments with tariffs and other initiatives may prompt market volatility, now is the time for investors to do a gut check to make sure they’re comfortable with their amount of equity exposure, advisors say.
Within those equity investments, it’s also important to revisit how they’re invested.
“People should always diversify their investments,” said Ivory Johnson, a certified financial planner and founder of Delancey Wealth Management. “Now you see that more.”
Johnson is a CNBC FA Council member.
To be sure, Wall Street projections still expect the S&P 500 to finish up for the year.
“We’re not bearish,” Shalett said. “We’re very concerned about the chaos in Washington because it’s very hard to model the outcomes.” More

Typically, tax filers receive a refund when paycheck withholdings or estimated payments exceed taxes owed.
Most taxpayers receive their refund within 21 days, but “several factors” can impact the timing, according to the IRS.
The easiest way to check on your refund is via Where’s My Refund? online or the IRS2Go app. The IRS updates refund statuses overnight daily.

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With tax season underway, the IRS expects more than 140 million returns from individuals through the April 15 deadline — and many early filers are already waiting for a refund.
With taxpayers eager for updates, many have asked “where’s my refund?” online this week, according to Google Trends data.

While 27% of Americans plan to splurge on non-essentials, nearly half will use their refund to pay down debt, according to a Credit Karma survey that polled 1,000 adults in late December and early January. 
Typically, filers receive a refund when paycheck withholdings or estimated payments exceed taxes owed. Generally, you owe a balance when you don’t pay enough throughout the year.
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As of Dec. 27, the average refund was $3,138 for the 2024 filing season, according to the IRS. If you’re waiting for a refund this year, here’s when to expect it and how to check the status.

When to expect your tax refund

“Nine out of 10 taxpayers will see their refund within 21 days of filing, and often sooner,” former IRS Commissioner Danny Werfel said in early January.  

But “many factors” can affect the timing of when you’ll receive the money, and some filings may require “additional review,” which could take longer, according to the IRS.
“You want to electronically file,” said Mark Steber, chief tax information officer of Jackson Hewitt Tax Services. “That can take weeks off your refund timing.”
However, by law, the IRS can’t issue refunds claiming the earned income tax credit and additional child tax credit before mid-February. Filers with those credits should receive refunds by March 3 if they chose direct deposit and there are no other tax return issues, according to the IRS.

How to check the status of your tax refund

The “easiest way” to check on your refund is via the “Where’s My Refund?” tool or the IRS2Go app, according to the IRS. The agency updates refund statuses overnight daily.
“We’ve upgraded this tool, and we will also offer voice bot services to taxpayers who prefer to call the IRS for refund information,” Werfel said in January.
To check online, you’ll need your Social Security number or individual taxpayer identification number, filing status and your exact refund amount. 
You can expect a status update 24 hours after electronically filing a current-year return or three to four days after e-filing a prior-year return, according to the IRS. Meanwhile, updates for paper-filed returns could take up to four weeks.     More