The Impact of Tax-Filing Costs on Working-Class Americans

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The Impact of Tax-Filing Costs on Working-Class Americans
Tax season can be a stressful time for many Americans, especially those who belong to the working class. With the rising cost of living, every penny counts, and the cost of tax filing can have a significant impact on their finances. In this post, we will delve deeper into the impact of tax filing costs on working-class Americans and what Line is doing to change this.
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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 free process.

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.

How Beem’s free Federal and State Tax Filing changes this

Beem’s Free Tax Filing feature, launched this February, allows individuals across every region in the United States to file both Federal and State Taxes for free irrespective of their tax situation (1099, W2, Multiple Jobs, Multi-state, etc.)

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.

How Beem’s Free IRS Penalty Protection changes this

Beem not only provides Free Federal and State Tax Filing, but makes it extremely easy to file taxes right from their mobile devices with automated alerts via email, SMS and push notifications to help working-class Americans estimate their taxes and file them on time while also protecting them against IRS Penalties up to $10,000 towards any penalties encountered while filing with Beem along with Free Audit Support.

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.

How Beem’s mobile apps change this

Beem’s apps are available across both iOS App Store and Android Play Store. Users can file federal and state taxes for any tax situation absolutely free via Beem’s simple, intuitive and easy-to-use interface that is further complemented with 24/7 real human customer support (a standard feature on all Beem products), IRS Penalty Protection up to $10,000 for any penalties incurred due to filing with Beem and a Maximum Refund Guarantee which if not met will yield up to $250 towards any fees paid to receive Maximum refund provided by another provider.

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.

How Beem’s free tax resources change this?

In addition to allowing users to file federal and state taxes for any tax situation absolutely free via its simple, intuitive and easy-to-use interface, complementing it with 24/7 real human customer support (a standard feature on all Beem products), IRS Penalty Protection up to $10,000 for any penalties incurred due to filing with Beem and a Maximum Refund Guarantee which if not met yielding in up to $250 towards any fees paid to receive Maximum refund provided by another provider; Beem has also created a compendium of free tax resources that help working-class Americans educated themselves and ensure they receive relevant and maximum Tax Credits.

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.

That’s why we created Beem Tax Filing – the most comprehensive and Free Federal and State tax filing available on the Beem App available on iOS and Android app store, for all tax situations, with IRS Penalty Protection, Maximum Refund Guarantee complemented with Free Tax Resources to educate working-class Americans while supporting them 24/7 with our world-class Customer Experience Team.

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Akshay Krishnaiah

Akshay Krishnaiah

Millennial, Immigrant, Uber driver (36000 mi) turned Techstars fintech startup founder @Beem (FKA Line). Previously Product Leader @PayPal (75 consumer fintech patent publications). Dad, Husband, Brother, Proud son of parents who came from extreme poverty, worked hard to give us great education, tolerant values and culture.

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

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