With April 15 approaching, here's what you need to know about filing taxes and available resources.
Category: Economy
As tax season heats up, many Americans are feeling the pressure of impending deadlines and the intricacies of tax filing. With state and federal tax returns due by midnight on April 15, 2026, it’s crunch time for millions. Fortunately, several resources and new tax deductions can ease the burden of filing, especially for students and low-income earners.
The Internal Revenue Service (IRS) and the Colorado Department of Revenue have been accepting 2025 tax returns since late January 2026. For Coloradans, there’s an option for an automatic six-month extension on state income taxes if at least 90% of the amount owed has been paid. This extension pushes the deadline to October 15, 2026, giving taxpayers a little extra breathing room.
For those who are unsure about how to file their taxes, there are various options available. Coloradans can e-file their state income taxes for free through the state's Revenue Online service. The IRS also offers a Free File program, allowing individuals with an adjusted gross income of $89,000 or less to file their federal taxes online without any cost. This program has gained traction, with approximately 3 million tax returns filed through Free File in 2024.
But what if you miss the deadline? The consequences can be steep. The IRS imposes a standard penalty of 5% of any tax owed for each month a return is late, capping at 25%. If you file on time but fail to pay your taxes, the penalty is 0.5% of the unpaid amount each month. In Colorado, the late filing or payment penalty is the greater of $5 or 5% plus 0.5% for each month the tax remains unpaid, with a maximum of 12%.
New tax deductions have also been introduced this year as part of the One Big Beautiful Bill Act, signed into law on July 4, 2025. These deductions could provide substantial relief for many taxpayers. The first is a tax break on overtime pay, allowing eligible workers to deduct overtime earnings — up to $12,500 for individuals and $25,000 for joint filers. The second deduction pertains to qualified tips, permitting a maximum annual deduction of $25,000 for qualifying employees and self-employed individuals.
For seniors aged 65 and older, there’s a temporary $6,000 additional federal tax deduction, which doubles for qualifying joint filers. Lastly, individuals can deduct up to $10,000 in interest on loans used to purchase a new car, provided the vehicle is for personal use and meets specific eligibility criteria. These deductions will be effective from 2025 through 2028, but they may not apply to everyone, so taxpayers should carefully evaluate their eligibility.
Tracking tax refunds can be another source of anxiety for filers. For those who e-file their federal tax returns, the IRS states that refunds can take up to 21 days. If you file by mail, it could take six weeks or longer, especially if there are errors or if your return requires additional review. Colorado taxpayers can expect their refunds to take up to five weeks for e-filed returns and up to three months for paper submissions.
Students, in particularly challenging financial situations, can find help through programs like the Volunteer Income Tax Assistance (VITA) at the University of Georgia. This IRS-sponsored initiative assists students and community members in preparing their tax returns at no cost. Aniston Hanley, a master’s financial planning student and site coordinator for VITA, noted that many students are unaware of the program. “A lot of students will have to sit there and call their parents because they don’t know if their parents are actually claiming them,” she said.
VITA operates from late January until the last Friday before the April 15 deadline, utilizing over 100 IRS-certified student volunteers to assist with tax preparation. Each return is reviewed by at least two volunteers for accuracy, ensuring that clients receive the maximum benefits available. Last year, VITA helped prepare 2,835 returns, saving clients over $1 million in fees and generating nearly $550,000 in state refunds.
For Philadelphia residents, there’s also an opportunity to claim an income-based Wage Tax refund. This program allows qualifying taxpayers to apply for a reduced effective tax rate of 1.5% instead of the standard 3.74% for residents and 3.43% for nonresidents. To qualify, applicants must file and be approved for Pennsylvania tax forgiveness and submit a refund petition along with necessary forms like the W-2 and PA-40 Personal Income Tax Return.
Non-residents working outside of Philadelphia and residents paying taxes to other municipalities may also qualify for refunds. Business expenses incurred during job performance can be deducted, provided the necessary forms are submitted with the refund petition. The easiest way to apply for a Philadelphia refund is online, ensuring quicker processing and fewer errors.
As the tax deadline approaches, it’s important to stay informed and utilize the resources available. Whether you’re filing independently or seeking assistance from programs like VITA or Philadelphia’s Wage Tax refund initiative, knowing your options can alleviate some of the stress associated with tax season. With deadlines approaching and new deductions on the table, taxpayers should take the time to understand their rights and responsibilities.
With the April 15 deadline just around the corner, now is the time to get your documents in order, check your eligibility for new deductions, and, if needed, reach out for assistance to make the filing process as smooth as possible.