Defunding the IRS Would Cost Taxpayers – ITEP
“Congressional Republicans Also Want to Make it More Expensive to File Tax Returns.”
“This year, for the first time ever, many taxpayers were able to file their taxes for free directly through the IRS as part of the Direct File pilot program. In past years, taxpayers were forced to either file by hand themselves or to use paid tax preparers like TurboTax, H&R Block, or Jackson Hewitt.
“Taxpayers who used the Direct File program (which was only available in 12 states during its first year) were pleased with the results. The pilot program exceeded its goal for the number of users, and 90 percent of users rated their experience with the program as excellent or above average.”
Many low-income workers benefit from the federal Earned Income Tax Credit (EITC), which subsidizes their wages. But EITC rules are complex. Workers often need tax preparation assistance to file for it. This is one of the reasons about 20% of those eligible do not apply.
Claiming the Earned Income Tax Credit – IRS Taxpayer Advocate Service
A closer look at the Earned Income Tax Credit – IRS
Related CCSE work:
This article is based on a paper submitted to an association representing assisted living facilities and other long-term care providers. It makes the case that businesses like these that employ low-wage workers benefit from helping their employees access the EITC and Child Tax Credit – along with supporting bipartisan legislation to expand these federal programs. That is because employers capture a significant percentage of federal wage subsidies.