KANSAS CITY, Mo. — Taxes are due Tuesday, April 18 and tax professionals are telling FOX4 that filing this year is probably going to be more complicated than normal.
Pandemic-era rebates and credits don’t apply anymore, and inflation could change how much taxpayers owe.
Sonja Pless owns her own business, so she was on both sides of the inflation problem in the past year.
“I did make more money last year so I’m really eager to see what’s going to happen,” Pless said.
She says she had to raise her prices because everything that goes into running her business got more expensive too.
“Some things went up like my rent, and my products, and everything went up so of course that made [my prices] have to go up,” Pless said.
That’s why Marquita Miller Joshua at Five Star Tax and Business Solutions says people like Pless might be disappointed this tax season.
Miller Joshua just handled a case similar to Pless’ where one taxpayer had a large refund last year, only for disappearing pandemic credits to decrease what he got back and for a growing salary to bump up what he owes this year.
“He moved to the next bracket, he lost credits, and that caused him to actually have a balance due,” said Miller Joshua.
She says it’s catching many people by surprise, and with more people working from home, like Nakia Lane, tracking everything they can be reimbursed for can be complicated.
“We’re teleworking,” Lane said. “I work for the government so we’re at home so now we’re using our lights, gas, water, cell phone for work so I appreciate those extra credits.”
It’s why Miller Joshua says more taxpayers are reaching out for help than normal at the same time that there are fewer tax professionals around to give help.
“I think there are a lot more individuals that have said, ‘Let me seek help,’ and then there are a lot of tax professionals that have shut their doors and just have said, ‘The laws have changed so much,’ they don’t want to keep up with it,” Miller Joshua said.
If you have questions about filing your taxes or filing for an extension, click here.