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What could a government shutdown mean for the economy?
With less than two weeks to go before another potential government shutdown, we get into what this could mean for the economy, markets and you.
US stocks rose on Thursday following stronger-than-expected retail sales data pointing to persistent consumer spending despite elevated inflation and borrowing costs
• August wholesale inflation, measured by the producer price index, rose 0.7% for the biggest monthly increase since June 2022. The increase was largely driven by a more than 10% surge in energy costs.
• British chip maker Arm (ARM) debuted on Wall Street, raising nearly $5 billion and marking the biggest initial public offering in the U.S. this year. Arm shares ended their first trading day nearly 25% higher.
• Delta (DAL) followed the lead of other major airlines and cut its quarterly earnings forecast due to higher fuel and maintenance costs.
• The European Central Bank announced a 10th straight interest rate hike, bringing its policy rate to record level of 4%. With headline and core inflation still running hot at 5.3% in August and energy prices on the rise, the central bank said the move was necessary to fight inflation, while also indicating that this could mark the end of its hiking campaign.
What to be on the lookout for today
• The week will close out with an early look at the University of Michigan’s consumer sentiment survey for September. In August, confidence dipped to 69.5 from a 21-month high in July.
• In company earnings, the nation’s second-largest homebuilder Lennar (LEN) will report results. The company recently made headlines for securing an investment from Warren Buffet’s Berkshire Hathaway (BRK.A).
Here’s why taxes are different for freelancers
Income tax is owed on most forms of income. But paying taxes as a freelancer or someone who's self-employed comes with a few additional challenges. This is what you need to know to stay organized.
Estimated quarterly taxes
Because most people file their tax return in April of each year, you might think that April is when you "owe" taxes. But IRS guidelines are that you owe taxes all throughout the year, as you earn income. When you work as an employee of a company, you have income tax withheld throughout the year. But if you are self-employed as a freelancer, you're required to make estimated tax payments each quarter.
Paying self-employment tax
Another difference in taxes for freelancers is that they are likely subject to self-employment tax on top of income taxes. As an employee, you have likely seen Medicare and Social Security taxes withheld from your paycheck (7.65% of your income — 6.2% for Social Security and 1.45% for Medicare). On top of that, your employer pays an additional portion (also 7.65%). When you are self-employed as a freelancer, you're required to pay both halves as self-employment tax.
Paying taxes as a self-employed worker can be overwhelming. Here's what you need to know.
Today’s top stories
Don’t want to hang out with your co-workers? You’re not alone Remember going for happy hours after work before Covid? No more: Post-work dinners are down 43% from pre-pandemic levels, as employees draw a bolder line between the workplace and their personal lives. Read more >> Your dream home could be 3D-printed As traditional construction faces headwinds, one startup’s innovative solution could be the shelter needed for the industry to weather the storm. Read more >> How to save money at the grocery store Food prices have risen over the past year so keeping track of your grocery budget is important. Here are 30 ways to save money on food. Read more >>Not-so-breaking news
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Friday could be a historic day for the U.S. options market, as $3.4 trillion worth of options are set to expire, leading analysts to expect a volatile end of the week.
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Delta is reconfiguring its SkyMiles loyalty program to reward credit card spending over frequent flying. Delta is the latest major carrier to make this switch, following the lead of competitors like American Airlines.
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Retail sales rose just 0.6% in August as high gas prices ate into household budgets.
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Google is getting ready for job cuts in its hiring department as its recruiting efforts are set to slow. The tech giant previously cut 12,000 jobs in January.
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Apple is facing social media backlash as fans are reportedly underwhelmed by the iPhone 15, complaining that recent iPhone models lack innovation.
Financial planner tip of the day
"Many stores offer discounts for current students. To take advantage of them, keep your student ID handy while shopping. Students will find a variety of discounts including discounted admission to museums and professional sports games. Don’t be afraid to ask if the store, service, or experience offers a lower rate for customers enrolled in school."
Brian Walsh, CFP® at SoFi