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There is currently no federal law guaranteeing strikers jobless aid, but at least two states, New York and New Jersey, have instituted their own policies offering the benefits to workers who withhold their labor in protest of their employment conditions.
California, Massachusetts and Connecticut have recently tried to join the short list of states that offer jobless benefits to strikers.
Critics say providing jobless aid to strikers puts employers at a disadvantage during negotiations and encourages workers to go on strike.

Kaiser Permanente employees, joined by union members representing the workers, walk the picket line in Los Angeles on Oct. 4, 2023.
Frederic J. Brown | AFP | Getty Images

As 2023 proves to be a massive year for worker strikes, the push to provide people on the picket line with unemployment benefits is also heating up.
There is currently no federal law guaranteeing strikers jobless aid, but at least two states, New York and New Jersey, have instituted their own policies offering the benefits to workers who withhold their labor in protest of their employment conditions. A strike can last days, weeks or even months, and workers usually lose their wages during that time.

Meanwhile, other states have recently introduced legislation that would do the same.

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California lawmakers passed a bill last month that would provide the benefits to the state’s strikers, but Gov. Gavin Newsom ultimately vetoed it, pointing to the fact that the state’s unemployment fund is currently in the red due to the Covid-19 pandemic. Massachusetts, Connecticut and Pennsylvania have recently tried to start providing striking workers jobless benefits, too.
There is also an effort underway on the federal level to expand the unemployment program to strikers, said Michele Evermore, a senior fellow at The Century Foundation.
“There is an entire generation of labor activists who are really pushing the ball, but also who haven’t lived through the hardship and uncertainty of a strike and are realizing the need for help getting through it,” Evermore said.

United Auto Workers members picket in Wayne, Michigan, on Sept. 20, 2023.
Bloomberg | Bloomberg | Getty Images

Critics say providing jobless aid to strikers puts employers at a disadvantage during negotiations and encourages workers to go on strike.

“To me, it’s an absurd notion on its face,” Rob Sampson, a Republican state senator in Connecticut, said at a state committee hearing on the issue earlier this year. “People are voluntarily walking off the job.”
There have been 312 strikes involving roughly 453,000 workers so far in 2023, compared to 180 strikes and 43,700 workers during the same period two years ago, according to data by Johnnie Kallas, a Ph.D. candidate at Cornell University’s School of Industrial and Labor Relations, and the project director of the ILR Labor Action Tracker.
Here’s what else workers on strike should know about unemployment benefits.

New York, New Jersey offer jobless aid to strikers

New York has offered some form of jobless benefits to striking workers since before the unemployment insurance was even written into federal law, Evermore said.
What’s more, in 2020, state lawmakers dramatically reduced the amount of time an employee has to be on strike before they can begin collecting unemployment, from seven weeks to 14 days.
Workers on strike in the Empire State can typically collect the benefits for as long as 26 weeks.
The state could require the aid to be repaid if a worker’s employer provides them with back pay when the strike is over, according to the New York State Department of Labor.

The department “remains committed to helping to ensure that impacted workers have access to the resources they are entitled to during trying times, including labor strikes,” it said.
Workers on strike in New Jersey may also qualify for unemployment benefits, and lawmakers recently shortened the waiting time for eligibility there, too, to 14 days, down from 30.
“These benefits are crucial to allow individuals going through this process the support they need to continue to take care of themselves and their families during difficult times,” New Jersey Gov. Phil Murphy said in a statement in April.
Workers in the state can usually collect unemployment benefits for up to 26 weeks.

Other ways to qualify for jobless benefits

Across the country, most workers are allowed to collect unemployment benefits if they’re affected by a strike as long as they’re not “participating in the dispute, financing it or directly interested in it,” according to The Century Foundation.
The majority of states provide jobless benefits to workers who can’t work due to a lockout. Generally, a lockout occurs when workers are willing to perform their jobs, but the employer refuses to allow them to come back. More

Life Changes

The Powerball jackpot has soared to an estimated $1.4 billion, the third-biggest prize in the game’s history.
There are two payout options for the winner: an estimated lump sum of $614 million or annuitized payments worth an estimated $1.4 billion.
The next Powerball drawing is Saturday at 10:59 p.m. ET.

The Powerball jackpot soared to an estimated $1.4 billion as of Oct. 6, 2023, according to the Multi-State Lottery Association.
Justin Sullivan | Getty

The Powerball jackpot has soared to an estimated $1.4 billion ahead of Saturday night’s drawing — and financial experts have tips for the lucky winner.
As the third-largest prize in the game’s history, the winner will pick between a lump sum worth $614 million or an annuitized prize of $1.4 billion. Both options are pretax estimates.

The next Powerball drawing is Saturday at 10:59 p.m. ET, and the sales cutoff is typically one to two hours before the drawing. The odds of winning the jackpot are roughly 1 in 292.2 million.
The biggest pitfalls for lottery winners are excessive spending, poor investment choices and family members asking for money, said Andrew Stoltmann, a Chicago-based lawyer who has represented several lottery winners. “Saying ‘no’ to family might be the toughest thing that lottery winners have to do,” he said.

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Here’s what the lucky winner should do first, according to financial experts.

Assemble a team of professionals

“Lottery winners historically are from lower socio-economic backgrounds,” said Stoltmann. “They don’t have the experience managing money or establishing the financial team.”
Before making big financial decisions, the winner should hire a financial advisor, tax professional and at least one attorney, he said.

Consider a ‘cooling off period’ first

Whether it’s a large inheritance or lottery winnings, “my recommendation is to initially do nothing,” said certified financial planner and enrolled agent John Loyd, owner at The Wealth Planner in Fort Worth, Texas.
Before choosing between the lump sum or annuity payout, he suggests taking a “cooling off period” to get organized and weigh the pros and cons.

The lump sum offers the full prize up front, while the annuity provides one immediate payment, followed by 29 annual payouts that increase 5% each year, according to Powerball.
“Money is an emotional thing,” Loyd said. “And you want to try to minimize making emotional decisions.”
Saturday’s Powerball drawing comes less than three months since a single ticket sold in California won the game’s $1.08 billion jackpot. This is the first time the game has seen back-to-back billion-dollar jackpots. Meanwhile, the Mega Millions jackpot is currently worth an estimated $360 million, and the odds of winning that grand prize is roughly 1 in 302 million. More

Year-end Planning

There’s a staffing shortage in the accounting industry, and it’s not too early to lock in a tax preparer for next season.
While specialized expertise may be harder to find, it’s still important to vet tax professionals.
You can begin the process by assessing your needs, asking for referrals, interviewing and checking for credentials.

Cecilie Arcurs | Getty Images

There’s a staffing shortage in the accounting industry, and it’s not too early to lock in a tax preparer for next season.
If you need someone with specialty expertise — such as the employee retention tax credit or cryptocurrency taxes — it may take longer to find a qualified match. But vetting is always important, experts say.

“Buyer beware,” said April Walker, lead manager for tax practice and ethics with the American Institute of CPAs. “Truly, anybody can call themselves a tax preparer.”
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The IRS recently unveiled a plan to target “unscrupulous” tax preparers, but there’s currently a low barrier to join the profession, with a basic requirement of registering through the IRS for a preparer tax identification number, or PTIN.
In her 2022 annual report to Congress, National Taxpayer Advocate Erin Collins highlighted the “absence of minimum competency standards for return preparers” as a top problem. When a preparer makes a mistake, the filer is ultimately responsible for their return and can face IRS enforcement action, she wrote.

How to find a mutual ‘good fit’

The first step to finding the right tax preparer is understanding your needs, according to Walker.

For example, the scope of the tax arrangement looks different for W-2 employees compared to a small business owner. There’s also a big difference between preparing a tax return and providing ongoing planning throughout the year.
You can begin the process by asking for referrals from family, friends or colleagues, and interviewing each candidate. “If they’re a good advisor, they want to have a good fit with you also,” Walker said. “They want to develop a relationship that’s ongoing, not just a transactional one.”

Check for tax credentials

While anyone with a PTIN can legally prepare federal tax returns, preparers may have varying levels of education, experience and expertise.
Three types of tax professionals have unlimited representation rights before the IRS: attorneys, certified public accountants and enrolled agents. This means they can represent you on any tax issue, including audits, payment or collections and appeals, according to the IRS. These individuals also have continuing education and ethics requirements.

At a minimum, they should be participating in the IRS’ annual season filer program.

Josh Youngblood
Owner of The Youngblood Group

You can check a CPA’s credentials by searching state boards and you can verify an enrolled agent by emailing the IRS.
However, unlicensed tax professionals can be good, too, according to Josh Youngblood, an enrolled agent and owner of The Youngblood Group, a Dallas-based tax firm.
“At a minimum, they should be participating in the IRS’ annual filing season program,” which requires continuing education and provides limited IRS representation rights, he said. “That at least shows some initiative versus someone who just signed up online and got a PTIN.” More

Year-end Planning

House Republicans are pressing the IRS for answers after the agency paused processing new claims for a pandemic-era small business tax break.
Lawmakers voiced “continued concerns” about the employee retention credit, enacted to support small businesses during the Covid-19 pandemic.
House Ways and Means Committee chair Jason Smith, R-Mo., and Oversight Subcommittee chair David Schweikert, R-Ariz., asked the IRS for updates on the backlog of unprocessed ERC claims.

Rep. Jason Smith, R-Mo., speaks during a House Oversight and Accountability Committee impeachment inquiry hearing into U.S. President Joe Biden on Sept. 28, 2023.
Jonathan Ernst | Reuters

House Republicans are pressing the IRS for answers after the agency paused processing new claims for a pandemic-era small business tax break.
Lawmakers voiced “continued concerns” about the employee retention credit, or ERC, which was enacted to support small businesses during the Covid-19 pandemic. Worth thousands per employee, the credit sparked a flood of amended returns, many of which were wrongly filed after bad advice from specialist firms.

In a letter to the IRS on Tuesday, House Ways and Means Committee chair Jason Smith, R-Mo., and Oversight Subcommittee chair David Schweikert, R-Ariz., asked for updates on the backlog of unprocessed ERC claims.

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“For a program that has been plagued with a prolonged backlog, it remains to be seen what changes will be made during the moratorium to improve vetting measures for fraudulent claims while also making the processing time more efficient to lessen the backlog,” they wrote.
The letter asked several questions about the ERC program, including the number of unprocessed claims, a timeline to clear the backlog, plans to improve processing for legitimate filings and more.
The IRS did not immediately respond to CNBC’s request for comment.

The backlog of unprocessed ERC claims

As of Sept. 27, the total inventory of unprocessed Forms 941-X, used to amend an employer’s quarterly federal tax returns, was roughly 779,000, according to the IRS.

However, the ERC claim backlog may be significantly higher due to professional employer organizations, or PEOs, which provide payroll benefits and other HR services. A single PEO claim can represent many small businesses, according to Pat Cleary, president and CEO of the National Association of Professional Employer Organizations, who testified at a House hearing in July.

“This has been the Hundred Years’ War for us,” Cleary told CNBC. “There’s a ton of small businesses waiting for money.”
The IRS in July said it slowed processing returns with ERC claims due to the “complexity of the amended returns” and the uptick of companies that lured ineligible small businesses to claim the credit.
“The IRS knows who we are,” said Cleary, who urged the agency to break out PEO claims from the backlog of questionable claims. “Those are established businesses with long-term relationships.” More

Year-end Planning

The Powerball jackpot has climbed to an estimated $1.2 billion, the third-biggest prize in the game’s history.
There are two payout choices for the winner: a one-time lump sum “cash option” or 30 annuitized payments with a 5% yearly increase.
The next Powerball drawing is Wednesday at 11 p.m. ET.

The Powerball jackpot hit $1.2 billion on Oct. 3, 2023, the third-biggest prize in the game’s history.
Scott Olson | Getty

The Powerball jackpot has climbed to an estimated $1.2 billion — the third-largest prize in the game’s history — without a winner Monday night.
Among the winner’s big decisions will be the choice between a lump sum payout worth $551.7 million or an annuitized prize of $1.2 billion. Both options are pretax estimates.

The next Powerball drawing is Wednesday at 11 p.m. ET, and the odds of winning the jackpot are 1 in 292.2 million.

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While the lump sum provides a full prize up front, the annuity offers one immediate payment, followed by 29 annual payouts that increase 5% each year, according to Powerball.

The lump sum payout is ‘a mistake’

“Virtually everybody who wins the lottery picks the lump sum distribution,” said Andrew Stoltmann, a Chicago-based lawyer who has represented several lottery winners. “And I think that’s a mistake.”
In many cases, the annuity is a better option because “the typical lottery winner doesn’t have the infrastructure in place to manage such a large sum so quickly,” he said.

The typical lottery winner doesn’t have the infrastructure in place to manage such a large sum so quickly.

Andrew Stoltmann

Stoltmann said the annuity protects winners from first-, second- or third-year financial mistakes while keeping the majority of the proceeds safe. 

Weigh the long-term plan for winnings

“Flexibility and control over assets is a really good thing, but it’s not necessarily for everybody,” said certified financial planner and enrolled agent John Loyd, owner at The Wealth Planner in Fort Worth, Texas.
While the lump sum payout could be a good financial move for some winners, he agreed that others may benefit from the spending guardrails of annuitized payments.

However, some winners may later decide to sell the annuity to a third-party company for a lump sum payment. “The issue is they don’t get the best bang for their buck on that payoff,” Loyd warned.
Wednesday’s Powerball drawing comes less than three months since a single ticket sold in California won the game’s $1.08 billion jackpot. This is the first time the game has seen back-to-back billion-dollar jackpots. Meanwhile, the Mega Millions jackpot is currently worth an estimated $315 million, and the odds of winning that grand prize is roughly 1 in 302 million. More

The stockpile of cash most people hoarded during the Covid pandemic is now largely gone.
Yet, consumers remain remarkably resilient, which has helped stave off a recession so far.
But households should still build in a buffer, experts say, and it’s likely more than they think.
In addition to how much to set aside, where you put any excess reserve can make the difference.

Amid heightened economic uncertainty, Americans, overall, are saving less.
The personal savings rate — how much people save as a percentage of their disposable income — was 3.9% in August, well below a decadeslong average of roughly 8.9%, according to the latest data from the U.S. Bureau of Economic Analysis.

And yet, consumers continue to spend, which has helped the economy grow and could ultimately be the reason the country side steps a recession after all, despite more than a year of gloomy forecasts.  
“If you are confident about the future, you don’t need such a high level of savings,” said Diana Furchtgott-Roth, an economics professor at George Washington University and former chief economist at the U.S. Department of Labor. 

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That doesn’t mean consumers are in the clear. In fact, many are struggling as much or more than before.
When the Covid pandemic brought the economy to a standstill and the U.S. government unleashed trillions in stimulus money, American households were suddenly sitting on a stockpile of cash.
“It was the first recession is U.S. history where disposable income went up,” said Tomas Philipson, a professor of public policy studies at the University of Chicago and former acting chair of the White House Council of Economic Advisers.

But that cash reserve is now largely gone after consumers gradually spent down their excess savings from the Covid years.
Soaring inflation in the wake of the pandemic made it harder to make ends meet. At the same time, the Federal Reserve’s most aggressive interest rate-hiking cycle in four decades made it costlier to borrow.
“I’m concerned,” Philipson said. “People are hit on both fronts — lower real wages and higher rates.”

That makes it particularly hard to set any money aside, said Winnie Sun, co-founder and managing director of Sun Group Wealth Partners, based in Irvine, California, and a member of CNBC’s Financial Advisor Council.
“There are some who are working on a tighter household budget and haven’t really adjusted their spending, as much, with the rise of inflation, so they haven’t been able to save more, even though they know they need to.”
Nearly half, or 49%, of adults have less savings or no savings compared with a year ago, according to a Bankrate survey.
More than one-third also now have more credit card debt than cash reserves, which is the highest on record, and 57% of adults said they could not afford a $1,000 emergency expense, another Bankrate survey found.
The average American’s savings are 32% behind where they should be when scaled against their salary, according to one analysis by DollarGeek based on data from the Fed’s Survey of Consumer Finances.  

You’ll likely need more cash than you think

Recession or not, experts say having a cash reserve is key.
While most suggest keeping three to six months’ worth of cash on hand to weather a job loss or other economic disruption, that’s likely not enough, according to Preston Cherry, a certified financial planner and founder and president of Concurrent Financial Planning in Green Bay, Wisconsin.
These days, households should strive to fund twice the usual recommendation, he advised.

If there is an economic contraction, chances are it could go on for a while. Over the last half a century, recessions have lasted from two months to more than 18 months.
“If emergency funds are ready, they help smooth the process,” said Cherry, who is also a member of CNBC’s Advisor Council. “The good news is that recessions end eventually, and there is hope, recovery, and upside.”

Pay down debt as your first safeguard

Before you can build up a proper savings cushion, prioritizing debt repayment is crucial, Sun said.
“Saving while you have debt is like swimming in a pool with a broken arm — you can’t get very far effectively.”
Start by paying off any high interest rate debt, such as credit cards, as quickly as possible, even if that means picking up a temporary job or side gig, Sun advised.
“Once your debt is under control, focus on building your emergency fund, either concurrently or immediately afterward.”

Where to save cash effectively

Even when Americans have an emergency fund, most said they don’t know the best ways to save to reach their short- or long-term savings goals, studies show.
These days, savers could get better returns on their cash than they have in years.
After the series of rate hikes from the Federal Reserve, top-yielding online savings account rates are now as high as 5%, the highest since 2008, according to Bankrate.com.
“The easiest thing to do,” said CFP Ted Jenkin, founder and CEO of oXYGen Financial in Atlanta and a member of CNBC’s FA Council, is “look at moving money out of your checking account into a savings account.”
Alternatives like Treasury bills, certificates of deposit or money market accounts have also emerged as competitive options for cash, although this may mean tying up your savings for a few months or more.
Jenkin recommends buying short-term, relatively risk-free Treasury bonds and laddering them to ensure you earn the best rates, a strategy that entails holding bonds to the end of their term. More

Year-end Planning

Tickets for Taylor Swift’s The Eras Tour resold for an average price of $2,183 in the secondary market.
Resellers may need to prepare to receive Form 1099-K from the IRS this upcoming tax season, as they likely “easily exceed” the new reporting threshold.
“Starting at the beginning of next year, you want to make sure you know how to report this income,” said certified financial planner Tommy Lucas of Florida-based Moisand Fitzgerald Tamayo.

Taylor Swift performs onstage at Lumen Field in Seattle on July 22, 2023.
Mat Hayward/tas23 | Getty Images Entertainment | Getty Images

Taylor Swift fans forked out an average $2,183 for a resold ticket to a concert on the superstar’s The Eras Tour, according to resale research site TicketIQ. Now, ticket resellers may owe taxes on profits made during what may turn to be — for them, at least — a rather “cruel summer.”
Ticket profits have always been taxable, but the new IRS reporting threshold for business transactions on third-party platforms, such as Ticketmaster or eBay, is now a single payment of $600, down from 200 transactions worth an aggregate of more than $20,000.

Taxpayers will have to prepare as the law takes effect this coming season.
“Starting at the beginning of next year, you want to make sure you know how to report this income,” said certified financial planner and enrolled agent Tommy Lucas of Florida-based Moisand Fitzgerald Tamayo.

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While the new tax reporting shouldn’t affect personal transactions, such as sharing the cost of a car ride or meal, birthday gifts or holiday gifts, many people with business transactions will be affected because of the new lower threshold, experts say.
“A ton of people are going to be confused,” said Ted Rossman, a Bankrate senior industry analyst. But “a friend paying one back for pizza is not going to count.”

Here’s how to prepare for Form 1099-K

Taxpayers who received business payments from e-commerce platforms such as Ticketmaster, eBay, Venmo and PayPal that exceed $600 will receive Form 1099-K this tax season. While this may be your first time receiving this form, don’t ignore it, experts say. 

“Before, the IRS did not have any way to know about earnings from resold tickets,” said Lucas. “Now, these platforms are required to notify the IRS and you have to report.”
People who made more than $1,000 reselling Taylor Swift tickets “easily exceed that threshold of $600 for this year,” said CFP James Guarino, managing director at Baker Newman Noyes in Boston. He is also a certified public accountant.

While this form may leave more room for error, here are four things you should do to start preparing: 

Keep track of sale transactions: As people engage in numerous Venmo and PayPal transactions, it will be paramount to keep track of them, experts say. If you sold goods or services this year, do not close the accounts used for those transactions, added CPA Albert Campo, managing and founding partner of New Jersey-based AJC Accounting Services. It will make record keeping much more difficult, he added.
Save your purchase receipts: It’s also important to keep copies of your purchase receipts for goods you later resell, such as those Taylor Swift tickets, since taxes owed will be based on your sales proceeds minus the original purchase price.
Make sure the 1099-K is accurate: You’ll also want to double-check that any Forms 1099-K match your transaction records, experts say. Otherwise, there could be a mismatch with your return. If you mess up the numbers, you will get an automated IRS notice and will have to file an amended return, which could take up to 16 weeks to process. “Make sure to do it right the first time,” said Lucas.
Plan for taxes: If you’re expecting to owe taxes, setting aside money or making quarterly estimated tax payments is “absolutely a smart thing to do,” since you may not be withholding enough through your paycheck at work, Lucas previously told CNBC. More

When the Biden administration turns the $1.7 trillion student loan system back on, Latino borrowers will face extra difficulties stemming from economic inequities.
“Latinos are likely to delay important financial decisions, like purchasing a home, because of their student loans, which ultimately keeps them in a cycle of debt,” said David Ferreira, of the Center for Responsible Lending.

Ana Paula Cortes
Courtesy: Ana Paula Cortes

Ana Paula Cortes graduated from New York University in 2021 with her master’s degree in creative writing — and $100,000 in student debt.

Lea este artículo en español aquí.

Cortes, a U.S. citizen who grew up in Mexico, had to finance her degree on her own. She was raised with her two siblings by a single mother, and their finances were strained.

“We were not struggling to have food on the table, but I never had a lot of money,” said Cortes, 29.
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In October, when the Biden administration turns the $1.7 trillion federal student loan system — dormant for more than three years — back on, millions of people are expected to struggle financially. But the problems may be especially severe and long-lasting among Latino borrowers, who tend to earn less than non-Hispanic whites and fall behind on their loans at a higher rate, consumer advocates say.

“Latinos are likely to delay important financial decisions, like purchasing a home, because of their student loans, which ultimately keeps them in a cycle of debt,” said David Ferreira, senior government affairs manager at the Center for Responsible Lending.

Inequity leads to more loan struggles for Latinos

After she got her undergraduate degree in Mexico, Cortes was urged by her mother to pursue a master’s in the U.S., but she could only finance it on debt.

“I think it’s ridiculous how education in the U.S. is so expensive; it’s ludicrous,” Cortes said.
White non-Hispanic families in the U.S. have a median wealth of $188,200, compared with $36,100 for Hispanic families, according to data analyzed by the Brookings Institution. In 2016, about half of Hispanic families weren’t able to contribute anything to the costs of their children’s higher education, UnidosUS, an advocacy organization, found.

“Most Latinos at institutions of higher education are the first in their families to go to college, and most come from households with lower incomes,” said Elizabeth Zamudio, vice president of education at UnidosUS.
Latinos also tend to take longer to graduate college, often because they’re balancing school with work, experts said. Financial stress and caregiving burdens lead to half of Hispanic students saying it is “very difficult” or “difficult” for them to remain in their post-secondary education program, a recent Gallup poll found.
Overall, Latinos borrow less than their white peers to pay for college, but “they face challenges repaying student loans when they do borrow,” said higher education expert Mark Kantrowitz.

Most Latinos at institutions of higher education are the first in their families to go to college.

Elizabeth Zamudio
vice president of education at UnidosUS

The default rates on student loans for white bachelor’s degree recipients was around 3%, compared with close to 10% for Hispanic college graduates, according to data provided by Kantrowitz.
As of mid-2021, around 40% of Hispanic student borrowers had at some point defaulted on their loan, compared with 29% of white student loan borrowers, according to Pew Trusts.
Latino students not only come from less wealth, but also tend to be paid less than their white peers long after they graduate. The median weekly earnings for white workers is around $1,100, while it’s $850 for Hispanic workers.
Early in the public health crisis, when Hispanics were twice as likely as whites to lose their jobs, Cortes was laid off from her position as a content creator for an app.
It’s been hard for her to find another full-time position in her field. And so for now, she works as a cat sitter to pay her bills.
“You end up so desperate to just get a job because you have so much debt,” Cortes said. More