Revenue of the cosmetic and beauty industry in the United States from 2002 to 2020(in billion U.S. dollars)

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Revenue of the cosmetic & beauty industry in the U.S. 2002-2020

Published by M. Ridder, Nov 24, 2020 This statistic depicts the total revenue of the cosmetic industry in the United States from 2002 to 2019 and provides a forecast for 2020. The revenue of the U.S. cosmetic industry is estimated to amount to about 49.2 billion U.S. dollars in 2019.

Cosmetics

Since the early twentieth century, the production of cosmetics has been controlled by a handful of multi-national corporations. The global cosmetics industry is broken down into six main categories; skin care being the largest one out of them all, accounting for 36.1 percent of the global market in 2016.

In recent years, consumers have been spending higher levels of disposable income on cosmetics than they had in the past. Unfortunately, the global financial crisis put a damper on the market for some years, making more affordably priced merchandise and do it yourself at home products key in the beauty market. In 2015, the average annual expenditure on cosmetics, perfume and other personal care products among U.S. consumers dropped slightly, to approximately 164 U.S. dollars. Eye makeup products such as mascara and eye liner were among the cosmetic products with the highest number of transactions per capita.

In the coming years, global cosmetic companies will continue to focus their efforts on product innovation in order to attract new consumers and keep existing consumers loyal to specific brands.

Why Paying Your Bills on Time is So Important

We all know it’s important to pay our bills on time, but we may not fully appreciate why it’s so important. Of course, there’s the worry of getting evicted, a car being repossessed, the lights getting turned off or losing cell phone service. These are all serious concerns to be sure, but there’s another dimension to late bill payments that is a lot more subtle and can have just as serious an affect on your future and your financial health – damaging your credit payment history.

It may be easier not to stress about being late on a payment because there is no fear of any of the consequences mentioned above. But being late on a bill payment gets recorded in your credit report and your payment history is the biggest single factor affecting your credit score, accounting for 35% of it. While you might not feel the effects right away, damaging your credit score could mean paying higher interest when your mortgage renews or not getting approved for a mortgage in the first place, having to take out a high-interest car loan or, again, not finding anyone to approve your loan application and/or in some cases not getting hired for the job you want because of your credit.

The Immediate Effects of Late Payments

There are also immediate effects of late payments. According to Borrowell:

“The typical timeline goes as follows: 30 days, 60 days, 90 days, 120 days, 150 days, and then it will be written off as a loss and categorized as ‘uncollectible.’ It’s extremely important to keep up with payments or be aware that you’re late. In addition to negatively impacting your score, chronically missed payments may lead to higher interest rates, late fees and penalties, reduced credit limits, and even court judgments.”

And according to Equifax (one of the three credit bureaus in America that maintain our credit reports):

“Late payments can remain on your Equifax credit report for up to seven years from the date of the missed payment. The late payment remains even if you pay the past-due balance. Your payment history may be a primary factor in determining your credit scores, depending on the credit scoring model (the way scores are calculated) used. Late payments can negatively impact credit scores.”

Improving Your Payment History

So now that we’ve covered the reasons why it’s so important to make sure you’re paying your bills on time, let’s cover some strategies to do so. A good place to start is with your current payments. Here are some tips to do so:

always make your payments on time
make at least the minimum payment if you can’t pay the full amount that you owe
contact the lender right away if you think you’ll have trouble paying a bill
don’t skip a payment even if a bill is in dispute

Contacting the company for a bill you won’t be able to pay on time is important. You might feel intimidated to do so, but lenders are usually willing to work with borrowers because they understand that life happens and because they want to get paid. They may put a note on your file that stops your late payment from being recorded with the credit bureaus, they may also work out a repayment plan that’s easier for you or they may offer other services like payment deferrals. Just be sure to ask about all the terms and conditions of any services or programs a lender offers you as you may end up paying more money in interest to use them.

Practical Tips for Paying Your Bills on Time

The last thing you want is to miss a bill because of forgetfulness so setting up automatic payments on all your bills would be ideal. Just be sure to set a reminder for yourself on your phone and with a post-it attached to a physical calendar every month (or every couple of weeks as the case may be) to double-check your account and confirm that there’s enough money in it to cover all of the money coming out. You’ll also want to review your bills in detail to make sure there aren’t any issues and that you’re not being overcharged.

If you have any bills that you’re not able to pay from your bank account, again, setting up a repeating calendar event on your phone and writing a note to yourself on a bulletin board, calendar or anywhere else you look at on a daily basis, can help you stay on top of your bills, build up good payment history and maintain healthy financial wellness.

Can You Deduct College Tuition On Your Federal Income Tax Return?

Can You Deduct College Tuition On Your Federal Income Tax Return? There are several options for deducting college tuition and textbooks on your federal income tax return, including the American Opportunity Tax Credit, Lifetime Learning Tax Credit, Tuition and Fees Deduction, and Employer-Paid Educational Assistance, as well as tax-free distributions from a college savings plan.

There is no double-dipping. Each dollar of qualified expenses can be used to justify only one tuition tax break. There are also coordination restrictions that prevent taxpayers from claiming both the American Opportunity Tax Credit and Lifetime Learning Tax Credit for the same student, even if the qualified expenses do not overlap.

The American Opportunity Tax Credit is the best of the tuition tax breaks. It is worth more per dollar of qualified expenses than any other tuition tax break, even a tax-free distribution from a 529 college savings plan. Generally, taxpayers should claim the American Opportunity Tax Credit first, unless they want to preserve its availability for future tuition expenses.

All of these tax breaks can be claimed even if the taxpayer does not itemize.

College tuition may be eligible for a tax deduction or tax credit on your federal income tax return.

American Opportunity Tax Credit

The American Opportunity Tax Credit (AOTC) is a partially-refundable tax credit worth up to $2,500 per student per year. The AOTC covers 100% of the first $2,000 in tuition, fees and course materials (textbooks, supplies and equipment) per student and 25% of the second $2,000. The tax credit is 40% refundable (up to $1,000) if the taxpayer cannot be claimed as a dependent on someone else’s income tax return.

Qualified expenses do not include nonacademic fees, such as student activity fees, athletic fees and insurance.

The tax credit is limited to the four years of postsecondary education and to four tax years per student. Expenses paid for academic terms that begin in the first three months of the next tax year can be counted as though they were paid during the current tax year.

The AOTC is subject to the following eligibility restrictions: The student must be the taxpayer, the taxpayer’s spouse or the taxpayer’s dependents. The student must be seeking a degree or certificate at a college or university that is eligible for Title IV federal student aid. The student is ineligible if they are participating in a dual enrollment program. The student must be enrolled on at least a half-time basis. The student is ineligible if they were convicted of a federal or state felony drug offense for the sale or possession of a controlled substance.

The AOTC is not subject to the Alternative Minimum Tax (AMT). The income phase outs are $80,000 to $90,000 (single) and $160,000 to $180,000 (married filing jointly). Taxpayers who file as married filing separately are not eligible. The income phase outs are not adjusted annually for inflation. About 7.4 million taxpayers (4.8%) claimed the American Opportunity Tax Credit in 2018.

Lifetime Learning Tax Credit

The Lifetime Learning Tax Credit (LLTC) is a non-refundable tax credit worth up to $2,000 per taxpayer. The LLTC covers 20% of the first $10,000 in tuition and required fees.

Qualified expenses may include nonacademic fees, such as student activity fees and athletic fees, but only if they must be paid directly to the college as a condition for enrollment or attendance. Qualified expenses are limited to courses of instruction to “acquire or improve job skills.”

Expenses paid for academic terms that begin in the first three months of the next tax year can be counted as though they were paid during the current tax year.

The tax credit can be claimed for an unlimited number of years.

The LLTC is subject to the following eligibility restrictions: The student is not required to be seeking a degree or certificate, so the tax credit can be used for continuing education. The student must be enrolled at a college or university that is eligible for Title IV federal student aid. The student can be enrolled on a part-time basis. The student is eligible even if they were convicted of a federal or state felony drug offense for the sale or possession of a controlled substance. The Lifetime Learning Tax Credit is often claimed by graduate or professional school students who are no longer eligible for the American Opportunity Tax Credit. The income phase outs in 2021 are $59,000 to $69,000 (single) and $119,000 to $139,000 (married filing jointly). Taxpayers who file as married filing separately are not eligible.

The income phase outs are adjusted annually for inflation.

About 2.8 million taxpayers (1.8%) claimed the Lifetime Learning Tax Credit in 2018.

Tuition and Fees Deduction

The Tuition and Fees Deduction is an above-the-line exclusion from income for up to $4,000 in tuition and fees. The deduction is reduced to $2,000 for taxpayers with income within the income phase out ranges. Course material costs can also qualify if paid directly to the college and if they are required for enrollment or attendance. Expenses paid for academic terms that begin in the first three months of the next tax year can be counted as though they were paid during the current tax year.

The tuition and fees deduction can be claimed for an unlimited number of years.

The Tuition and Fees Deduction is subject to the following eligibility restrictions: The student is not required to be seeking a degree or certificate. The student must be enrolled at a college or university that is eligible for Title IV federal student aid. The student can be enrolled on a part-time basis. The student is eligible even if they were convicted of a federal or state felony drug offense for the sale or possession of a controlled substance. The income phase outs are $65,000 to $80,000 (single) and $130,000 to $160,000 (married filing jointly). Taxpayers who file as married filing separately are not eligible. The income phase outs are not adjusted annually for inflation.

Employer-Paid Educational Assistance

Up to $5,250 in employer-paid educational assistance can be excluded from income. Qualified expenses include tuition and fees, books, supplies and equipment. This tax benefit is available for an unlimited number of years. The student must be the employee, not the employee’s spouse or dependents. The employee does not need to be seeking a degree or certificate. There are no income phase outs.

Tuition Gift-Tax Exclusion

Tuition paid directly to an educational institution is not subject to gift taxes. However, direct payments of tuition may reduce the student’s eligibility for need-based financial aid. This tax break can be claimed for an unlimited number of years. There are no income phase outs.

Qualified Scholarships

Scholarships, grants and fellowships that are used to pay for tuition, fees and course materials (books, supplies and equipment) are excluded from income if the student is seeking a degree or certificate. Tuition waivers are also eligible. The money must not be a fee for services provided by the student, with a few exceptions, such as teaching and research assistantships. There are no income phase outs.

Education Savings Bond Program

Interest on Series EE bonds issued in 1990 or a later year and all Series I bonds is excluded from income if it is used to pay for tuition and fees, or rolled over into a 529 college savings plan, prepaid tuition plan or Coverdell education savings account. The income phase outs in 2021 are $83,200 to $98,200 (single) and $124,800 to $154,800 (married filing jointly). Taxpayers who file as married filing separately are not eligible. The income phase outs are adjusted annually for inflation.

529 College Savings Plans and Prepaid Tuition Plans

The earnings portion of a qualified distribution from a 529 college savings plan or prepaid tuition plan is tax-free. Qualified expenses include tuition and fees, books, supplies and equipment, and expenses for special needs services. Room and board is a qualified expense if the student is enrolled at least half-time. Qualified expenses may include up to $10,000 each in student loan payments for the beneficiary and the beneficiary’s siblings. 529 plan contributions may also be eligible for a state income tax deduction or tax credit. In most states contributions are eligible for the state income tax break even if you immediately tax a distribution to pay for qualified expenses. This effectively provides a discount on college tuition and other qualified expenses. There are no income phase outs.

Coverdell Education Savings Accounts

The earnings portion of a qualified distribution from a Coverdell education savings account is tax-free. Qualified education expenses include tuition, fees, books, supplies and equipment. Room and board is a qualified expense if the student is enrolled at least half-time. There is an income phase-out on contributions, but not distributions. The income phase outs are $95,000 to $110,000 (single) and $190,000 to $220,000 (joint). Taxpayers who file as married filing separately are not eligible. The income phase outs are not adjusted annually for inflation.