Tax Deadline Approaching

CHICAGO, April 7, 2023 /PRNewswire/ -- Taxes can be complex and confusing.  Below are some common misconceptions about taxes countered with the conclusive truth provided by experts at Ladder Up, Chicagoland's premier nonprofit financial partner. The income tax filing deadline is April 18 – don't delay – file your income taxes now!

Myth: Filing Taxes is Voluntary

Fact: The confusion may arise because the U.S. tax system is characterized—even by the IRS —as voluntary. "Voluntary" in this context means that the taxpayer is responsible for completing the tax return and determining the amount of tax owed.

Myth: Students Don't Have to File Returns

Fact: If a student earns a paycheck, they should file a tax return, even if the student is a dependent on their parent's return.  If the amount earned is less than their standard deduction, they should still file, to get a refund of excess tax withheld. 

Myth: Pets Can be Claimed as Dependents

Fact: Many of us consider pets as part of the family, however, they are not considered dependents; the IRS classifies dependents as either qualifying children or qualifying relatives.

Myth: If I Don't Receive Tax Forms, I Don't Have to Report Income

Fact: Whatever form of payment – cash or in-kind – a taxpayer receives must be reported as income on their tax return. 

Myth: Can't File For Free

Fact: Ladder Up offers free tax preparation and electronic filing for qualified Chicagoland clients via the IRS' Volunteer Income Tax Assistance (VITA) program. There are other VITA sites throughout the U.S. IRS Free File lets a taxpayer prepare and file their federal income tax form online using guided tax preparation, at an IRS partner site. Per the IRS, it is safe, easy and at no cost to the taxpayer for a federal return if the taxpayer meets the eligibility criteria. Some providers charge a fee for state tax preparation.

Myth: Filing an Extension Means I Have More Time to Pay my Taxes

Fact: A taxpayer may file an extension to file their return, however, this extension only applies to the tax return, and not the amount due.  If the taxpayer owes taxes, they should be paid when the extension is filed.  Failure to pay on time will result in interest and penalties being charged on the amount due.

Myth: Filing a Paper Return is More Secure

Fact: E-filing is more secure than paper filing and will accelerate any refund.

Media Contact: Cat Donovan
Email: [email protected]

SOURCE Ladder Up