As taxpayers, the costs associated with filing taxes can be a big burden. Filing securely and correctly can require costly investments or large chunks of time – both of which may present difficult choices for working-class Americans who are already living on tight budgets. Here, we explore the impact of tax-filing costs on working-class Americans and how Beem is breaking the barriers and making tax filing an easy and with 100% accuracy.
The Cost of Tax Preparation
According to the National Society of Accountants, the average cost of preparing a tax return is $273. However, this number can vary widely depending on the complexity of the return and the location of the tax preparer. Many working-class Americans cannot afford to pay this amount and often try to file their taxes on their own. While there are free tax preparation software and services available, they may not be sufficient for those with more complicated tax situations, such as those with multiple jobs or self-employed individuals.
Penalties for Late Payment
Late payment penalties can add to the cost of tax filing, especially for those who owe taxes. Working-class Americans who cannot afford to pay their taxes in full by the deadline may face penalties and interest charges that can add up quickly. This can result in a cycle of debt that is difficult to escape from.
Opportunity Costs
The time and effort required to prepare and file taxes can also have an opportunity cost for working-class Americans. Many cannot take time off from work to prepare their taxes or attend appointments with tax preparers. This can result in lost wages or additional expenses, such as paying for childcare. The stress of tax season can also impact their mental and physical health, resulting in missed workdays or additional medical expenses.
Limited Access to Tax Credits
Working-class Americans may also miss out on tax credits that could benefit them due to a lack of knowledge or resources. Tax credits, such as the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC), can provide much-needed relief for those with lower incomes. However, many working-class Americans are unaware of these credits or may not have access to the resources needed to claim them.
Conclusion
The cost of tax filing can have a significant impact on working-class Americans, from the cost of preparation to late payment penalties, missed opportunities and limited access to tax credits. With tax season here, it is important to raise awareness of these issues and support policies that can provide relief to those who need it most. By doing so, we can help alleviate the financial burden that working-class Americans face during tax season and improve their overall financial well-being.
If you need help navigating the complex tax-filing forms and have refund-related queries, consider using Beem. You can use Beem’s Tax Calculator to get an estimate of your Federal and State taxes. Get started now.
