LAS VEGAS (KLAS) — Tax Day is approaching on April 18, and experts have said things are going more smoothly with the IRS than in recent years of the COVID-19 pandemic.
Despite this, an estimated 80 million people are still waiting until the last minute.
With unique circumstances of the pandemic, paperwork for filing taxes is more complicated than ever.
Makeda Abraham said she is down to the wire preparing her taxes.
“How much do we get back for childcare? What don’t we? How much is out of our pocket? What is the government doing for us?” she asked.
Abraham and her husband had three children in three years and run their own business, which all affects their tax filings.
A Jackson-Hewitt survey conducted last month found 21% of respondents who wanted to file are “too confused” about their personal tax situation, another 21% think they owe money, and 15% thought the deadline would be pushed back again.
Mark Steber is with Jackson-Hewitt. He said that while 2021 is the most complicated tax year he’s seen in decades, refunds and refund sizes are up.
“Three out of four taxpayers are getting a tax refund and that’s very good news,” he said.
Steber said there are a lot of benefits on the table, but navigating the complications may require help.
“Child credit, dependent care credit, earned income credit, education credits, those are all big, all complicated, all very pro-taxpayer, but they’re not automatic check a box and get a big check,” he said.
Here are a few steps all taxpayers can take to make the process smoother:
- Be accurate: don’t guess, estimate, or expect the IRS to fix errors
- File electronically
- Electronically deposit your tax refund
Abraham said her family is still waiting for last year’s returns, but she’s already looking to change her approach in the future.
“As soon as we get our W-2’s, we’re going to file,” she said.
Experts have said next year could also be chaotic — many of the 2021 rules are not in place for 2022, and taxpayers may have sticker shock on their refunds.