Expert: Confusion reigns supreme as Americans wait until the last minute to file their tax returns
NEW YORK -- Monday is the deadline to file your taxes.
An estimated 80 million people are waiting until the last minute, and as CBS2's Elise Preston reported Sunday, many are stuck navigating the confusion.
Brooklyn resident Makeda Abraham, a mother of three, was down to the wire preparing her taxes.
"How much do we get back for child care? What's out of our pocket? What is the government doing for us?" Abraham said.
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Abraham and her husband had three children in three years and also run their own businesses, all factors affecting their tax filings.
A Jackson Hewitt survey conducted last month found 21 percent of respondents who waited to file were "too confused" about their personal tax situation. Another 21 percent thought they owed money and 15 percent thought the deadline would be pushed back again.
"I'm here to tell you that is not going to happen this year," said Mark Steber of Jackson Hewitt.
Steber said while 2021 is the most complicated tax year he has seen in decades, refunds are up and refund sizes are up.
"Three out of four taxpayers are getting a tax refund and that's very good news," Steber 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," Steber said.
There are 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 actually still waiting on 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 are going to file," she said.
Taxpayers approved for an extension will have until Monday, Oct. 17 to file. Experts say next year could be chaotic because a lot of the 2021 rules are not in place for 2022, and taxpayers may have sticker shock on their refunds.
