Navigating the tax filing process can be intimidating, especially if you’re in a low-income household, part of an underserved community, or a single-parent family struggling to make ends meet. That’s why we made this our #1 priority at Beem for 2023 and rolled out federal and state tax filing in stealth earlier this year. This International Women’s Day, we are opening it to everyone to continue on our mission to provide significant benefits to these groups while uplifting them. Read on to learn more about the benefits of filing.
Importance of Federal and State Tax Filing
There are several benefits of filing taxes online. Here we highlight the importance of filing tax returns with four key benefits of tax filing.
- Filing taxes saves money.
- Tax filing helps you claim eligible tax credits and deductions.
- Filing your taxes increases access and participation.
- Tax filing helps reduce the risk of fraud.
Read in detail about the importance of filing your own taxes and the benefits of filing taxes early.
1. Saves Money
One of the most obvious benefits of federal and state tax filing is financial savings. Tax preparation fees can add up quickly, especially for those with complex tax returns. By having access to tax filing options, working-class Americans can save hundreds of dollars.
2. Helps to Claim Eligible Tax Credits and Deductions
Tax filing services also make it easier to claim eligible tax credits and deductions. For example, the Earned Income Tax Credit (EITC) is a significant tax credit for low and moderate-income working families, but it can be complicated to claim. Tax filing services can help these families maximize their refunds by ensuring they receive all the tax credits and deductions they’re eligible for.
3. Increases Access and Participation
Tax filing options also increase access and participation in the tax system. Many working-class Americans, especially those who are underserved, may not have the resources or knowledge to file their taxes independently or pay for professional help. Tax filing services can help bridge this gap and ensure that everyone has access to the benefits of the tax system.
4. Reduces Risk of Fraud
Tax filing services also reduce the risk of fraud. Many tax preparers charge exorbitant fees and often engage in predatory practices, taking advantage of people who are already struggling financially. By providing tax filing services, the risk of fraud is reduced. Thus, working-class Americans can avoid falling victim to these unethical practices.
Why Federal and State Tax Filing Matters to Women and Underserved Communities
Women and underserved communities are particularly vulnerable to financial insecurity, making tax filing services even more important. Women, especially single mothers, often face significant financial barriers, including the gender pay gap and a lack of affordable childcare. By having access to tax filing services, they can receive much-needed financial support and reduce their tax burden.
Underserved communities, including people of color and low-income individuals, often face systemic barriers that limit their access to financial resources. Tax filing services can help bridge this gap and ensure that these communities receive the support they need to thrive.
Federal and state tax filing is critical for working-class Americans, particularly women and underserved communities. By providing access to tax filing services, we can reduce financial burden, increase participation in the tax system, and support people who are most vulnerable. As such, policymakers should continue to prioritize tax filing services to ensure that everyone has access to the benefits of the tax system.