New verdicts from the U.S. Supreme Court could significantly impact several aspects of your personal finances, including the privacy of your bank accounts, the repayment of student loans, your home equity, and property taxes. It’s essential to understand these changes.
The U.S. Supreme Court has been in the spotlight recently for several reasons, including the controversial overturning of Roe v. Wade and news about justices receiving high-priced gifts and trips. Beyond these, the court has made a few crucial decisions that directly impact the financial affairs of millions of U.S. citizens.
Here are details on three critical rulings that could potentially influence your personal finances:
1. IRS Access to Your Bank Account
In the Polselli v. IRS case, the Supreme Court decided that the IRS has the right to privately examine bank records without the account holder’s prior notice. Under existing laws, the IRS can also request and scrutinize the bank records of individuals who do not have any outstanding debts with the IRS, such as the friends, family, and associates of a taxpayer who does.
What does the Polselli v. IRS case mean for your finances?
Your financial records may not be as private as you think. The IRS can access the financial information of you or your loved ones without your prior knowledge, especially if taxes are owed. This case emphasizes the importance of promptly settling any outstanding IRS debts, contemplating an installment plan, or negotiating a compromise offer.
2. Unconstitutional ‘Home Equity Theft’
The Supreme Court verdict in Tyler v. Hennepin County declared that ‘home equity theft,’ where a state seizes and sells your home to recover unpaid property taxes and keeps the excess profit, is unconstitutional.
What does Tyler v. Hennepin County mean for your finances?
Paying property taxes on time remains crucial; seek help if you cannot. This ruling ensures that the state or local government will not retain any excess profit from selling your property to recover unpaid taxes. The Pacific Legal Foundation reports that ‘home equity theft’ has affected over 8,950 homes, leading to a total loss of $860 million for American homeowners.
3. The Supreme Court Decision on Student Loans
The Supreme Court, in the Biden v. Nebraska case, ruled that President Biden didn’t have the authority under the HEROES Act to forgive federal student loans, up to $20,000 for eligible borrowers, on a large scale, as he had proposed.
What does Biden v. Nebraska mean for your finances?
The expected student loan forgiveness will proceed differently than planned, leaving over 40 million borrowers to deal with repayment without the proposed relief. The Department of Education has introduced several new programs to help lessen the burden on borrowers. Regardless of the Supreme Court’s decision, federal student loan payments will resume this fall. Planning for this and verifying the specifics of your loan(s) is important.
At Quantum Strategies Wealth Advisory, we are here to help you make informed decisions about your financial life. Contact us today to discuss your financial goals and explore the right strategies for you.
All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Quantum Strategies, LLC does not offer tax planning or legal services but may provide references to tax services or legal providers. Quantum Strategies, LLC may also work with your attorney or independent tax or legal counsel. Please consult a qualified professional for assistance with these matters. You should always consult with a qualified professional before making any tax or legal decisions.