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Prioritizing quality of life for employees is one of the biggest career trends of 2022.
Employers may go through a culture shift to meet workers desire for flexible work arrangements.
Despite large, high-profile layoffs, many companies still need to retain and hire new workers.

Chandra Sahu, 25, left a job in investment banking during the so-called Great Resignation last year, eager to find work that offered more flexibility. The New York City resident said she looked for work that fulfilled her “top priorities,” allowing her to demonstrate her “agency and creativity,” and landed at a startup.
“I wanted to work in a space where I was working closely with a team, where it still had kind of that rapid energy that you have in banking, but super-focused on a user and a problem space,” Sahu said. 

Being able to pursue her interests outside of work was also important to Sahu. “I’ve really tried to prioritize making space for habits in my life, and ultimately lead to the kind of life I want to live,” she said.

Employers may go through ‘culture shift’

Prioritizing quality of life for employees is one of the biggest career trends of 2022, said management consultant Christine Spadafor. “For many companies, this is going to be a culture shift,” she said. “It’s really looking at employees more holistically.” 
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“It means putting a human face on the human capital,” Spadafor added. “It’s not just thinking about the work that they do, but rather thinking about their financial well-being, their social well-being meaning with friends and family, their physical well-being and what’s gotten a lot of attention, and understandably so, is your mental health well-being, as well.”

Employees are seeking stability

Yet after the Great Resignation, many workers went through what has been called the “Great Regret” —admitting they should have stayed put, a workplace dilemma of 2022 that some experts say may change in the year ahead. 

“You’re seeing a little more hesitancy to make moves; people are … maybe digging in a little bit,” said William Crawford Stonehouse III, founder and president of Crawford Thomas Recruiting in Orlando, Florida. 
Despite a spate of layoffs at large, high-profile companies, many employers need to retain productive workers. “The unemployment rate is still so low that if you talk to 10 medium [size] business owners in America right now, they’ll all tell you there’s a position that they would absolutely hire someone on board if they could find the person,” said Stonehouse.

Workers continue to demand flexibility

Chandra Sahu’s job gives her the flexibility to work remotely. Without a commute she has more time to pursue other interests.

Sahu said she wasn’t worried about finding a new job when she left investment banking in 2021. She was ready for a change. The startup she joined was acquired by social media company Pinterest earlier this year. She landed a coveted product manager position there in less than six months and still finds time for yoga, reading and other interests every week. 
“It’s been amazing to take a step back and figure out how to orient my life around the choices I want to make, while still having the kind of rigor in my job that I think I really love,” she said.
Sahu’s job changes may reflect another trend some workplace management experts call a “career correction.” Instead of “quiet quitting” — or doing the bare minimum on the job — workers are intentionally switching from a culture that is quick to praise working long hours to one that puts more value on employees’ lives outside of work. 

The data is so strong that people want a bit more flexibility.

Tina Paterson
consultant and author

“Individuals certainly are trying to exercise their right to find employment anywhere that meets their needs: their family needs, their work needs, their location needs — all of that,” said Christie Smith, global lead of Accenture’s Talent & Organization Practice.

Buzzwords highlight workplace dilemmas

From “shift shock,” when a new job is very different than what you were led to believe, and “boomerang employees” who return to jobs they left, to “career cushioning” by adding new skills and reigniting your network after “loud layoffs” at high-profile companies, this year’s buzzwords for common workplace dilemmas may fade.
Yet, a new outlook for employers will endure. “The trend will continue to be an emphasis on talent,” Smith said. “The right skills, and getting those, top getting that talent into the right positions within organizations.”

Remote work is here to stay

Recognizing employees’ need for flexibility will be essential to filling roles.
“Fully in the office is a thing of the past, and the leaders who are hanging on to that model are going to lose the war for talent,” said Tina Paterson, a Melbourne, Australia-based consultant and author of “Effective Remote Teams.”

“Great employees always have options — and the data is so strong that people want a bit more flexibility, whether that’s hybrid or fully remote, in terms of where they work,” she added.
Sahu echoes the sentiments of many other younger workers, saying senior managers can show they understand and value their employees’ needs through their own actions.
“Making space for your kids or your hobbies, or your life that is protected, tells other folks that that is a regular habit that a successful leader can have,” she said.

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Shoppers line up outside a Costco to buy supplies after the Hawaii Department of Health on Wednesday advised residents they should stock up on a 14-day supply of food, water and other necessities for the potential risks of novel coronavirus in Honolulu, Hawaii, U.S. February 28, 2020.
Courtesy of Duane Tanouye via REUTERS

As we near the end of 2022, plenty of uncertainty looms ahead in 2023 – and the challenges faced by this world are far from over.
This year, investors have faced a sharp selloff in equities, spiking yields in bonds and dramatic swings in oil prices. Though market tumult is only a temporary event, there’s no saying how long it might last.

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A long-term focus allows investors to tune out the noise from daily volatility and focus on building a strong portfolio.
Here are five stocks chosen by Wall Street’s top pros, according to TipRanks, a platform that ranks analysts based on their past performance.

Nova Measuring

Nova Measuring (NVMI), a metrology solutions provider for the semiconductor manufacturing industry, has benefited from lower exposure to the memory market, which has suffered major setbacks this year. About 70% of Nova’s products are for the foundry market, which has not been drastically affected by the slowdown in the semiconductor industry this year.
Benchmark analyst Mark Miller, who hosted a virtual meeting with Nova management recently, pointed out that the company has gained at a compound annual growth rate of 15% to 20% over the past five years, surpassing its growth in WFE (wafer fab equipment) spending. The analyst is also upbeat about Nova’s prospects in this area. “While a softer 2023 is expected, Nova expects to once again outpace WFE spending,” said Miller.
Miller notes that the longer-term outlook for Nova is bright, given the demand runway that will be created when the U.S., Europe, and China ramp up internal chip manufacturing over the next five years. (See Nova Measuring Stock Investors sentiments on TipRanks)

Further, the second half of 2023 is expected to be stronger due to a possible rebound in the memory market and increased orders from its major customer, Taiwan Semiconductor Manufacturing (TSM).
The analyst reiterated a buy rating on the stock with a price target of $100.
Miller, who is ranked No. 276 out of more than 8,000 analysts on TipRanks, has delivered 51% profitable ratings in the past year. Moreover, each of his ratings has generated average returns of 14.2%.

Costco

Costco (COST) has a unique business that offers food and general merchandise in bulk at discounted prices through membership warehouses. Strategic investments, customer-centricity, and a focus on membership growth have helped the business survive a tumultuous year.
Recently, Tigress Financial Partners analyst Ivan Feinseth said that he sees consumer spending trends improving later in 2023, and this will be a catalyst for Costco’s top-line growth. Also, the retailer’s ongoing store growth and international expansion are expected to push business performance trends upward. (See Costco Dividend Date & History on TipRanks)
The analyst also believes that Costco’s dominance in the warehouse-based retail market is driving its competitive advantage. Feinseth cut his price target to $635 from $678 but reiterated his buy rating on the stock. The analyst views “the recent pullback as a major buying opportunity” and expects Costco’s loyal customer base and resilient business model to continue to drive growth.
Feinseth stands at the 271st position among more than 8,000 analysts. Remarkably, 58% of his ratings have been successful, with each rating delivering average returns of 10.7%.

Amazon

Technology expert analyst Brian White of Monness Crespi Hardt has always been bullish on Amazon (AMZN). The analyst has his eyes set on the long-term prospects of the company in the rapidly advancing digital transformation.
White is upbeat about the growth runway ahead of Amazon in the areas of e-commerce, Amazon Web Services, digital media, advertising, Alexa, robotics, AI and others. Despite a challenging macroeconomic environment in the near-term, the lingering pandemic is expected to push digital transformation further, “benefiting the company’s long-term business model.”
The analyst reiterated his buy rating on Amazon with a price target of $136. (See Amazon Hedge Fund Trading Activity on TipRanks)
White’s convictions on Amazon have been 46% successful. Moreover, 54% of his overall ratings have been profitable, with each rating generating average returns of 8.1%. The analyst has been ranked No. 716 among over 8,000 analysts tracked on TipRanks.

Meta

Coming to yet another one of White’s favorite stocks, Meta Platforms (META), the analyst remained bullish with a buy rating and a $150 price target. The company is wrapping up a difficult year full of challenges, which are expected to carry over into 2023.
However, in the long run, the analyst sees Meta gaining from the secular growth opportunities in digital ads and advancing in innovations in the metaverse. White expects the Facebook-parent’s valuation to move up significantly over time. (See Meta Platforms Website Traffic trends on TipRanks)
“With sales up 34% per annum over the past five years, EPS turning in a 32% CAGR and generating an attractive operating margin, we believe Meta Platforms should trade at a premium to the market and tech sector in the long run; however, the expect the current macroeconomic and geopolitical environment will weigh on advertising spending in the coming quarters,” said White. 

Ambarella

Recently, Stifel analyst Tore Svanberg reinforced his bullishness on chip company Ambarella (AMBA), which specializes in the development and marketing of video compression and image processing solutions. As a player in the battered semiconductor industry, AMBA’s stock has fallen sharply this year. Nonetheless, here’s a look into the positives that Svanberg pointed out.
The analyst views the company as a leader in the video processing technology market, which is growing rapidly and secularly. (See Ambarella Blogger Opinions & Sentiment on TipRanks)
Svanberg highlighted Ambarella’s flow of deal wins. The latest deal was with Bosch Mobility Systems, the largest global automotive Tier 1 original equipment manufacturer.
The analyst said that the company now has deals with two of the top three global Tier 1 automotive original equipment manufacturers. Svanberg also said that AMBA is “positioning ‘CV3’ well to realize AMBA’s ambitious automotive aspirations, w/ a 6-year design win funnel estimated at $2.3 billion.” For context, CV3 is Ambarella’s flagship domain controller SoC (System on a Chip).
“In sum, we believe AMBA is well-positioned to be a key, long-term beneficiary of CV/Edge Processing, especially coupled with the company’s highly strategic acquisition of Oculii (giving it a unique edge in vision/radar sensor fusion technology), and therefore maintain our Buy on AMBA shares,” said Svanberg, who also raised the price target to $100 from $88.
Svanberg is ranked 32nd among more than 8,000 analysts on TipRanks. Sixty-five percent of his ratings have been profitable and each has garnered an average return of 20.7%.

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Many Americans make the same credit card mistakes, which may be holding them back from improving their financial standing.
Here’s a look at three of the most common myths about credit cards and credit scores and how to correct them.
One of the costliest misconceptions is that carrying a small balance from month to month will give your credit score a boost.

Credit scores play a key role in your financial life. Generally speaking, the higher your credit score, the better off you are when it comes to getting a loan.
And yet, many Americans make the same common mistakes with credit, putting their future financial well-being at risk. As interest rates rise at the steepest annual pace ever, there is even more at stake in the year ahead.

Here are some of the most common myths about credit cards and credit scores and how to avoid them going forward.

Myth #1: You can’t qualify for credit with a low score

Nearly 70% of Americans mistakenly believe that having too low of a credit score will prevent them from qualifying for any type of credit card, according to a recent report by Capital One.
Choosing the right type of card can make a difference, according to Ted Rossman, senior industry analyst at Bankrate and CreditCards.com. For example, getting a secured credit card or “piggy-backing on a parent’s card as an authorized user” are good places to start, he said.
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Some secured cards require a cash deposit that then serves as the credit line, which can be a good fit for those without a proven payment history. Otherwise, consider a card that requires a co-signer, Rossman advised. In that case, the parent, or co-signer, is responsible if the account isn’t in good standing.

Myth #2: Paying utility bills can boost your score

Nearly as many — about 68% — incorrectly believe that paying your utility bills on time can improve your credit score, according to the Capital One survey, which polled more than 3,500 Americans in July 2022.
Most utility companies do not report payment histories to credit bureaus and, even if they did, not all credit scoring companies consider that type of bill payment information.
If you’re trying to raise your credit score, paying those bills on time only counts if you’ve enrolled in a program like Experian Boost, Rossman said, which will factor on-time payments for utilities, phones and cable TV into your credit history.

Myth #3: Carrying a small balance helps your score

Lumina Images | Getty Images

Another common credit card misconception is that carrying a balance month to month will give your credit score a boost.
According to Capital One, 37% of borrowers wrongfully believe that leaving a balance on their card is better for their credit score than paying off the balance in full each month. A separate NerdWallet study found that as many as 46% of Americans make this same mistake.  
That’s the most expensive misconception. In fact, any amount of revolving debt costs you in interest charges. Those typically are not calculated based on how much debt you roll over to the next statement period, but rather on your daily average balance.
If you’re not paying in full, make sure to at least pay the minimum due. Paying less than the minimum is “the same as not paying it at all,” according to Michele Raneri, vice president and head of U.S. research and consulting at TransUnion.

“That’s what a delinquency is,” Raneri said, which could also ding your credit score in as soon as 15 to 30 days, she added.
Credit experts generally advise borrowers to keep revolving debt below 30% of their available credit to limit the effect that high balances can have on your credit score.
Still, nearly half of credit card holders carry credit card debt from month to month, according to a Bankrate report, just as the interest charges on those balances are getting more expensive. 
Credit card rates are now over 19%, on average — an all-time high — after rising at the steepest annual pace ever, in step with the Federal Reserve interest rate hikes to combat inflation.
With the Fed’s rate increases so far, those credit card users will wind up paying around $22.9 billion more in 2022 than they would have otherwise, according to a separate analysis by WalletHub.
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The IRS announced it won’t require platforms such as Paypal and Venmo to issue a tax when a user’s business transfers exceed $600.
The pre-2022 threshold of 200-plus transactions worth an aggregate above $20,000 remains in place for now.

Svetikd | E+ | Getty Images

The IRS has delayed, for a year, when payment services such as Paypal and Venmo and e-commerce companies such as eBay, Etsy and Poshmark will have to issue tax forms to individuals whose business transactions through those platforms exceed $600.
The agency on Friday said that such third-party platforms won’t have to use that threshold for when they report 2022 tax-year transactions on a Form 1099-K, which goes to both the IRS and taxpayer. Instead, they can rely on pre-2022 threshold of more than 200 transactions worth an aggregate above $20,000.

The American Rescue Plan Act of 2021 dropped the threshold to just $600. And even a single transaction can trigger a form.
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“To help smooth the transition and ensure clarity for taxpayers, tax professionals and industry, the IRS will delay implementation of the 1099-K changes,” Doug O’Donnell, acting IRS commissioner said in a statement.
“The additional time will help reduce confusion during the upcoming 2023 tax filing season and provide more time for taxpayers to prepare and understand the new reporting requirements.”
The agency said it will issue additional details on the delay, as well as guidance for taxpayers who may have already received a 1099-K as a result of the American Rescue Plan changes.

Even without the new reporting requirement in place, income from business transactions through such platforms is still taxable, which means sellers must report it. The delay only means business activity won’t generate a 2022 tax form at that low threshold.

Tax pros had ‘deep concerns’ about the $600 threshold

Tax professionals and consumers are likely to cheer the delay.
Tax pros had flagged the lower tax reporting threshold as a possible pain point for filers, with the risk of receiving 1099-Ks for personal transfers on platforms such as Venmo and PayPal, such as gifts or reimbursements.
“As tax preparers, we are more or less expecting the worst,” Albert Campo, a certified public accountant and president of AJC Accounting Services in Manalapan, New Jersey, told CNBC earlier this month.

“We’re expecting most of our clients to get these things,” he said. “So we’re trying to be proactive in addressing it.”
Last week, the American Institute of CPAs shared “deep concerns” about the $600 tax reporting threshold in a letter to the Senate Finance Committee and the House Ways and Means Committee.
The professional group said it supported a National Taxpayers Union Foundation recommendation to raise the threshold to “a level sufficient to exempt casual or low-level online activity.”
AICPA said even a $5,000 threshold would be “significant progress.”
—CNBC’s Kate Dore and Kelli Grant contributed reporting.

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Two bills to provide additional protections for pregnant workers and breastfeeding people were included in the $1.7 trillion federal government spending package passed by Congress this week.
The changes are a “monumental and historic step forward” that will make a huge difference for low-income workers, particularly women of color, one advocate says.

Advocates, legislators, and pregnant workers rally on Capitol Hill in support of The Pregnant Workers Fairness Act on Dec. 1 in Washington, D.C.
Paul Morigi | Getty Images Entertainment | Getty Images

Mothers and moms-to-be are poised to get new workplace protections, thanks to two amendments included in the $1.7 trillion federal government spending package that Congress on Friday sent to President Joe Biden for his signature.
That includes the Pregnant Workers Fairness Act, which will require employers to make temporary and reasonable accommodations for pregnant workers.

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“Pregnancy should never be a barrier for women who want to stay in the workplace,” Sen. Bob Casey, D-Pa., one of the leaders behind the proposal, said in a statement.
“This legislation would provide commonsense protections for pregnant workers, like extra bathroom breaks or a stool for workers who stand, so they can continue working while not putting extra strain on their pregnancies,” Casey said.
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Casey first introduced the proposal in 2012. The bipartisan bill was also led by Sen. Bill Cassidy, R-La.
The Senate amendment to add the bill to the spending package passed on Thursday with a 73-24 vote. The proposal was passed by the House of Representatives in May 2021. The House passed the larger package to fund the federal government on Friday.

“The Pregnant Workers Fairness Act is one of the biggest pieces of civil rights and workplace protection legislation to pass in over a decade,” said Sarah Brafman, national policy director at A Better Balance, a nonprofit advocacy organization focused on workers’ rights.
“It is a monumental and historic step forward for pregnant and post-partum workers,” she said.

New protections for working women ‘in the shadows’

Sen. Bob Casey, D-Pa., joins advocates, legislators, and pregnant workers at a rally on Capitol Hill in support of The Pregnant Workers Fairness Act on Dec. 1 in Washington, D.C.
Paul Morigi | Getty Images Entertainment | Getty Images

The change would provide protections for many women “in the shadows” who would share with advocates stories of what happened to them, Brafman said. That includes pregnant workers who asked for light duty who were then pushed out of their jobs, women who asked for schedule accommodations due to morning sickness who were refused their requests and female cashiers who asked for a chair to sit on who were told instead to come back after they gave birth and later found their positions had been filled.
The issue disproportionately affects low-income workers — particularly women of color — in low-wage, physically demanding jobs, Brafman said.
The Senate also on Thursday passed an amendment with a 92-5 vote to include the Providing Urgent Maternal Protections (PUMP) for Nursing Mothers Act in the government funding bill.
That proposal, which would protect a worker’s right to breastfeed in the workplace, also had bipartisan backing in the chamber through leaders including Sens. Jeff Merkley, D-Ore., and Lisa Murkowski, R-Alaska.

The bill expands on a 2010 law that requires employers to allow for time and space for mothers to pump and store breast milk at work.
“We must make it possible for every new mom returning to the workplace to have the option to continue breastfeeding,” Merkley said in a statement.
That 2010 law excluded protections for nearly 9 million women of child-bearing age, according to Brafman. That forced breastfeeding women to pump in their cars or stop pumping altogether because their employers did not give them time and space, she said.
Both bills had strong backing from the business community, which wanted clarity on the gaps in the law and to clear confusion for business owners, she noted.
“This is really an economic justice victory, a gender justice victory, a racial justice victory, because these issues often so disproportionately affect women of color and especially Black women,” Brafman said.
“These are really strides forward for Black maternal health, in particular,” she said.

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“Secure 2.0” is part of the omnibus appropriations bill approved by the Senate on Thursday and the House on Friday.
The bill now will go to President Joe Biden for him to sign into law.
The goal of Secure 2.0 is to build upon changes implemented by the 2019 Secure Act, such as expanding retirement-plan access to more workers.

Michael Godek | Moment | Getty Images

Three years after the Secure Act of 2019 ushered in the first major changes to the U.S. retirement system in more than a decade, more modifications are now on their way.
Dozens of retirement-related provisions collectively known as “Secure 2.0” are included in a $1.7 trillion omnibus appropriations bill that received approval from the House on Friday — following the Senate’s nod on Thursday — and will head to President Joe Biden for his signature.

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Secure 2.0 “addresses gaps that have left some people on the sidelines of retirement savings, unable to access the workplace retirement plans that do so much good in establishing the capability and habit of savings,” said Susan Neely, president and CEO of the American Council of Life Insurers.
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“Part-time workers, military spouses, small-business employees, and student loan borrowers are just a few who will benefit and have a better chance of positioning themselves for a more financially secure retirement as a result of Congress’s action today,” Neely said.
The Secure 2.0 provisions are intended to build on improvements to the retirement system that were implemented under the 2019 Secure Act. Those changes included giving part-time workers better access to retirement benefits and increasing the age when required minimum distributions, or RMDs, from certain retirement accounts must start — to age 72 from 70½.

This time around, some of the many provisions that are in the massive appropriations bill include:

Requiring automatic 401(k) enrollment: Employers would be required to automatically enroll employees in their 401(k) plan at a rate of least 3% but not more than 10%. Businesses with 10 or fewer workers and new companies in business for less than three years are among those that would be excluded from the mandate.

Increasing the age when RMDs would need to start: The current bill would increase it from age 72 to age 73 in 2023 and then to age 75 in 2033. Additionally, the penalty for failing to take RMDs would be reduced to 25%, and in some cases, 10%, from the current 50%.

Creating bigger “catch-up” contributions for older retirement savers: Under current law, you can put an extra $6,500 annually in your 401(k) once you reach age 50. Secure 2.0 would increase the limit to $10,000 (or 50% more than the regular catch-up amount) starting in 2025 for savers ages 60 to 63. Catch-up amounts also would be indexed for inflation. Additionally, all catch-up contributions will be subject to Roth treatment (i.e., not pretax) except for workers who earn $145,000 or less.

Broadening employer 401(k) match options: A proposal would make it easier for employers to make contributions to 401(k) plans on behalf of employees paying student loans instead of saving for retirement.

Improving worker access to emergency savings: One provision would let employees withdraw up to $1,000 from their retirement account for emergency expenses without having to pay the typical 10% tax penalty for early withdrawal if they are under age 59½. Companies also could let workers set up an emergency savings account through automatic payroll deductions, with a cap of $2,500.

Increasing part-time workers’ access to retirement accounts: The original Secure Act made it so part-time workers who book between 500 and 999 hours for three consecutive years could be eligible for their company’s 401(k). Secure 2.0 reduces that to two years. Companies already have been required to grant eligibility to employees who work at least 1,000 hours in a year.

Helping workers who are repaying student loans save for retirement: Secure 2.0 makes it easier for employers to make contributions to 401(k) plans (and similar workplace plans) on behalf of employees who are making student loan payments instead of contributing to their retirement plan.

Boosting how much can be put in a qualified longevity annuity contract: Currently, the maximum that can go into a QLAC is either $135,000 or 25% of the value of your retirement accounts, whichever is less. Secure 2.0 eliminates the 25% cap and increases the maximum amount allowed in a QLAC to $200,000.

Changing the required minimum distribution rules for Roth 401(k)s: Currently, while Roth IRAs come with no RMDs during the original account owner’s life, that’s not the case for Roth 401(k)s. Starting in 2024, the pre-death distribution requirement would be eliminated.

Broadening uses for unused college savings money: A provision would allow for tax- and penalty-free rollovers to Roth IRAs from 529 college savings accounts that are at least 15 years old, within limits.

Helping military spouses get access to retirement plans: Secure 2.0 creates tax credits for small businesses that let military spouses enroll right away in their plan and qualify for immediate vesting of any employer matches.

The bill also includes incentives for small businesses to set up retirement savings plans for their workers, encourages individuals to set aside long-term savings and makes it easier for annuities to be an income option for retirees.

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Two of the legal challenges brought against President Joe Biden’s student loan forgiveness plan have reached the U.S. Supreme Court.
Here’s what you need to know about the cases, which will be heard on Feb. 28.

Student loan borrowers protest the GOP outside the Republican National Committee’s offices in Washington, D.C,. for denying student loan relief to 40 million borrowers on Nov. 18, 2022
Paul Morigi | Getty Images Entertainment | Getty Images

Two of the legal challenges brought against President Joe Biden’s student loan forgiveness plan have reached the U.S. Supreme Court.
In August, Biden announced that tens of millions of Americans would be eligible for cancellation of their education debt: up to $20,000 if they received a Pell Grant in college, a type of aid available to low-income families, and up to $10,000 if they didn’t. Individuals who earned more than $125,000, or families making more than $250,000, were excluded from the relief.

Since then, Republicans and conservative groups have filed at least six lawsuits to try to kill the policy, arguing that the president doesn’t have the power to cancel consumer debt without Congress and that the policy is harmful.
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The Biden administration insists that it’s acting within the law, pointing out that the Heroes Act of 2003 grants the U.S. secretary of education the authority to waive regulations related to student loans during national emergencies. The country has been operating under an emergency declaration due to Covid since March 2020.
The battle has made its way through the courts, and now the nine justices of the U.S. Supreme Court have scheduled their high-profile legal arguments over the plan for the end of February.
Here’s what you need to know about the two cases that will be heard.

Six GOP-led states case

On Sept. 29, six Republican-led states filed a lawsuit against the president’s student loan forgiveness plan, arguing that Biden was vastly overstepping his authority. The states — Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina — allege that the debt relief “is not remotely tailored to address the effects of the pandemic on federal student loan borrowers, as required by the HEROES Act.”
However, the Biden administration insists that the public health crisis has caused considerable financial harm to student loan borrowers and that its debt cancellation is necessary to stave off a historic rise in delinquencies and defaults. It will likely stress this concern to the justices.
The GOP states also argue that loan forgiveness will disrupt their entities that profit from the defunct Federal Family Education Loan (FFEL) program. Under that program, which was eliminated in 2010, the government guaranteed the loans by private banks and nonprofit lenders. Although the U.S. Department of Education has moved to a system in which it directly lends to students, millions of borrowers continue to owe on commercially held FFEL loans.

The states point out that a major loan servicer headquartered in Missouri, the Missouri Higher Education Loan Authority, or MOHELA, would lose revenue under the plan because the Biden administration had initially told borrowers they could transfer their loans from the FFEL program to the main federal loan program to qualify for its forgiveness.
But the administration moved quickly to get ahead of this argument, issuing guidance in September that commercial FFEL borrowers could no longer consolidate their debt to be eligible for its plan.
That development has weakened the states’ argument, said higher education expert Mark Kantrowitz.
“The potential loss of state revenue is not an ongoing concern,” he said.

Legal challenge brought by two borrowers

The second legal challenge the Supreme Court will consider in February was backed by the Job Creators Network Foundation, a conservative advocacy organization.
In that lawsuit, filed on Oct. 10, two plaintiffs say they’ve been harmed by “this arbitrary executive overreach,” according to a press release by the foundation.
One plaintiff, Myra Brown, says she is left out of the president’s relief because she has commercially held loans. The other plaintiff, Alexander Taylor, says he’s not entitled to the maximum forgiveness amount of $20,000 because he didn’t receive a Pell Grant when he was in college.
The lawsuit says the president’s policy violated the Administrative Procedure Act’s notice and comment procedure, not allowing plaintiffs to weigh in on the shape of forgiveness.

In response, the Biden administration is likely to argue that the Heroes Act of 2003 grants the education secretary the authority to make changes to federal student loan programs during national emergencies without first taking input from the public, Kantrowitz said.
The Heroes Act, he said, “explicitly waives the APA requirement for a notice and comment period.”
“All the administration needed to do is publish the waivers in the Federal Register, which they did,” he said.
The Biden administration has already denied that its policy will cause harm to the plaintiffs in the lawsuit, arguing that, to the contrary, its plan “will cost respondent Brown nothing and relieve respondent Taylor of $10,000 in debt.”

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This holiday season, it may be possible to lower your taxes while supporting your favorite charity, experts say. 
If you itemize deductions, consider donating profitable investments or selling losing assets before gifting the cash proceeds.
Donors age 70½ or older can give directly to a charity from traditional individual retirement accounts to reduce adjusted gross income.

Members of the Salvation Army play music during the lighting of the world’s largest Red Kettle in the Times Square neighborhood of New York, U.S., on Tuesday, Dec. 1, 2020.
Jeenah Moon | Bloomberg | Getty Images

This holiday season, it may be possible to lower your taxes while supporting your favorite charity, experts say.  
Despite the shaky economy, most Americans plan to donate similar amounts this year as they did last year, a recent Edward Jones study found.

While tax breaks typically aren’t the main reason for giving, experts say some donors may be missing out on the chance for a deduction. 
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“Many people give money and don’t get any tax benefits because they don’t donate enough to itemize,” said certified financial planner Jeremy Finger, founder and CEO at Riverbend Wealth Management in Myrtle Beach, South Carolina.
Here’s what to know about the charitable deduction before opening your wallet, and two of the “best” ways to give, according to financial advisors.

Why it’s harder to claim the charitable deduction

When filing your return, you reduce your taxable income by subtracting the greater of either the standard deduction or your total itemized deductions — which may include charitable donations. 

Former President Donald Trump’s signature 2017 tax overhaul nearly doubled the standard deduction, making filers less likely to itemize.
For 2022, the standard deduction is $12,950 for single filers or $25,900 for married couples filing together. And if you take the standard deduction in 2022, you can’t claim an itemized write-off for charitable gifts.

Profitable assets are the ‘best’ to give

If you expect to itemize deductions, your charitable write-off depends on the type of asset you donate.
Juan Ros, a CFP at Forum Financial Management in Thousand Oaks, California, said profitable investments in a taxable brokerage account are “generally the best type of asset to give.”
Here’s why: By donating an appreciated asset, you’ll receive a charitable deduction equal to the fair market value while avoiding capital gains taxes you’d otherwise owe from selling, he said. 

Of course, you’ll want to confirm your preferred charity can accept noncash donations.
With most portfolios down 15% to 25% for the year, it may be tempting to offload stocks that have declined in value. But it’s better to sell those assets, harvest the losses and donate the cash proceeds to charity, Ros said.

Consider a charitable transfer from your individual retirement account

If you’re 70½ or older, donating directly from a traditional individual retirement account is “usually the best way to give,” said Mitchell Kraus, a CFP and owner of Capital Intelligence Associates in Santa Monica, California. 
The strategy, known as a “qualified charitable distribution,” or QCD, involves a direct transfer from an IRA to an eligible charity. You can give up to $100,000 per year and it may count as your required minimum distribution if you transfer the money at age 72.  
Since the donation doesn’t show up as income, you’ll still be getting a tax break, even if you don’t itemize deductions, Kraus said. Reducing your adjusted gross income may help avoid triggering other tax issues, such as higher Medicare Part B and Part D premiums.

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