LIMA — A little better, a little worse and about the same, but next year some people could be doing worse because they are paying a penalty.
For Elida area resident April Coulter, she experienced a lot of life changes in 2013.
“I got a new job and I got married so things were a lot better for me in 2013 than 2012,” said Coulter, who started working at Setex in St. Marys in July and exchanged marriage vows in December with Chris Coulter.
Area residents have the opportunity to review their finances as the deadline for filing their state and federal income tax hits Tuesday as well as for most municipalities including the city of Lima.
Liberty Tax Service office manager Don Reiff said of the tax filings he has done for people that he has not seen much different in income.
“All in all, I didn’t see a whole lot of difference from last year,” said Reiff, who works out of Allentown Road office and not the one on Harding Highway. “We have both ends of the spectrum. We have folks who come in an get big refunds because they are Earned Income Credit folks and then toward the end of the tax season people come in because they are part of a different subset of income, typically people with higher incomes and different types of income and they get less back or even have to pay.”
Next year, he said he expects to be telling a different story.
“You will see next year is the Affordable Care Act penalties for people who did not get health care by the end of March,” Reiff said. “There will be a penalty for that which will come out of their income tax and in some cases that could be a fairly substantial penalty.”
Dorett Lee, who owns and manages Cool Runnins Caribbean Concession, is excited about the new year and opening up her food stand.
“My husband and I are in the process of filing now, but I would say we are probably doing about the same,” Lee, of Lima, said.
The IRS expected to receive about 35 million returns in the last week before the deadline. Most come with payments instead of refund requests. Ninety percent of all returns are expected to be filed electronically.
As of April 4, the IRS reports having received 99.9 million individual returns filed with 78.8 million being issued a refund. Those refunds are expected to total $220 billion with the average refund being $2,792.
The IRS expects to receive about 148 million individual income tax returns this year and projects that 23 million returns will be on paper, down 7 percent from last year’s total of 25 million paper returns. Because of the reduction in paper tax forms sent through the mail, Ohio post offices will not offer extended retail hours on Tax Day, April 15.
According to an Associated Press-GfK poll, 58 percent of Americans say it is very easy or somewhat easy to complete a federal return, but some people are bothered with 11 percent saying it is very hard to complete a federal return and 7 percent saying they would be willing to pay more in federal taxes if filing were easier.