By Jen Mason
As federal and state officials continue their efforts to ease the pandemic’s impact on individuals and families, extending the 2020 income tax filing deadline would be a welcomed step.
This is particularly true for the most vulnerable among us — those struggling to get by with limited income and few prospects for employment as the pandemic rages on.
Several reasons for extending the filing deadline beyond April 15 come to mind.
First, pandemic-inspired changes to the tax code will make completing returns more challenging than ever. The treatment of unemployment and economic-impact payments will complicate preparation of returns, as will changes to the earned income tax credit (EITC).
The EITC allows individuals and families earning less than $56,844 a year to potentially claim credits ranging from $538 for individuals to $6,660 for families with qualifying children. Legislation approved by Congress in December makes this credit available to those who had little or no income during 2020 by basing their returns on income earned in 2019.
While intended to benefit those in need of economic relief, these provisions add more complexity to preparing individual tax returns.
Due to the pandemic, many free tax return-preparation services won’t be available this year. In some cases, that’s because venues such as libraries or senior centers are no longer open to the public. In addition, the pandemic has understandably made some volunteer preparers, including seniors with underlying health conditions, reluctant to step forward.
With fewer opportunities to have returns prepared for free and the preparation process more complex than ever, taxpayers could be forced to turn to paid preparers to complete and file 2020 returns.
Unfortunately, the cost of such services could easily wipe out tax credit benefits that individuals and families could otherwise use for food, clothing, utilities and medical care.
Last year, 64,000 Delaware workers received more than $162 million from the EITC alone. Similar credits this year would be of tremendous benefit to service industry workers and others who’ve been hardest hit by the pandemic.
By once again extending the filing deadline, President Joe Biden and Congress would give all taxpayers more time to navigate pandemic-related changes to the tax code. An extension of the federal deadline, with states following suit, also would give those with lower incomes the opportunity to utilize free tax return-preparation services, despite reduced availability.
There’s also an urgent need for volunteer tax preparers.
The First State Community Action Agency — one of more than 80 social services, faith-based, health care, educational or nonprofit organizations and businesses that are part of the Cape Community for COVID-19 (CCC4COVID) coalition — is providing space for tax preparation and is arranging for video kiosks, so taxpayers can meet virtually with preparers. With secure, remote drop-off of paperwork, volunteer tax return preparers can work in their homes.
First State also is organizing self-guided online training and certification provided by the IRS for those with the skills, aptitude and desire to help others. For information about how you can help, contact Jaime Sayler of the agency at 302-856-7761, ext. 114.
One of the lessons we’ve learned over the last 10 months is that simple actions can often make big differences. We urge President Biden and Congress to extend the 2020 tax-filing deadline, so those facing the greatest hardships can avoid tax-preparation fees and use the full amount of refunds and credits for basic necessities.
Jen Mason, an independent business owner in Lewes, is convener of the Cape Community for COVID-19 coalition.
