Tax brackets and standard deductions rise, thanks to inflation, while existing home sales are down. Student loan forgiveness applications are now open. Find these stories and many more in this week’s list.

Taxes

• It is not just Social Security recipients that may benefit from COLA adjustments—the IRS adjusts tax brackets (up 7%) and deductions (up $900 pp) for inflation also! Axios Here are the new brackets: (CNBC)
• 401K and IRA tax deductible contribution amounts also increased for 2023. (IRS.gov)

Economics

• Jason Furman of Harvard recommends a different measure of inflation, altering the housing component (40%) to be more forward looking. This article explains how his inflation measure may have led to slightly different monetary policy. (Forbes)
• Another Harvard Economist, Greg Mankiw, offers his views on the Fed and their handling of inflation.
• What are all of those who work from home doing with all that saved commuting time? The NY Fed set out to answer that question. (Liberty Street Economics)
• The sales of existing homes fell 1.5% from August to September. (CNBC) And a measure of prospective home buyer traffic has dropped, reflecting the impact of interest rates. (Ritholz Big Picture)
• Raises, tax brackets, Social Security taxes, insurance premiums--how is inflation impacting your paycheck? (NYT)
• Check out the projected discounts we will see this holiday season. (CNBC)

Managing Credit

• The CFPB issued guidance to consumer reporting companies to remove inconsistent account information (i.e. a loan has been fully paid but has a balance) and information that cannot be accurate (that someone took out a loan before they were born.) These issues arise disproportionately for people who have been in foster care, as identity theft is rampant.

Higher Education

• Fall enrollment at institutions of higher education declined by 1.1%, lower than the pandemic declines, but not demonstrating a hoped-for rebound. For the breakdown by demographics and types of institutions, read these articles. (Inside Higher Ed) (WSJ-subscription may be required)
• College graduates apparently overestimate their starting salaries by as much as $50,000. (CNBC)

Student Loans

• The government opened up applications for forgiveness on the FAFSA site this week. Yahoo Finance lists twenty-four things you may need to know about the process.

Miscellaneous

• For a thoughtful and comprehensive look at the state lotteries, the proponents, opponents, winners and losers, take some time to read this New Yorker article.

About the Author

Beth Tallman

Beth Tallman entered the working world armed with an MBA in finance and thoroughly enjoyed her first career working in manufacturing and telecommunications, including a stint overseas. She took advantage of an involuntary separation to try teaching high school math, something she had always dreamed of doing. When fate stepped in once again, Beth jumped on the opportunity to combine her passion for numbers, money, and education to develop curriculum and teach personal finance at Oberlin College. Beth now spends her time writing on personal finance and financial education, conducts student workshops, and develops finance curricula and educational content. She is also the Treasurer of Ohio Jump$tart Coalition for Personal Financial Literacy.

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