TEXARKANA -- The deadline to file 2023 federal income tax returns less than two weeks away, and for those who have yet to file, there are a few reminders to be aware of.
The deadline to submit tax returns for 2023 is Monday, April 15. However, those who can't file by the due date can request an automatic six-month extension of time to file, according to the Internal Revenue Service's website. Those who need the extra time must file Form 4868, which is an application for an automatic extension of time to file tax returns. It can be found on the IRS website.
An extension to file federal income tax returns is not an extension to pay what a person owes the IRS. If you owe taxes, they still must be paid by April 15 to avoid possible penalties.
Whether you are one to do your taxes yourself or go to a tax professional, the entire process can be stressful as many are concerned with how much they will owe. IRS allows qualified taxpayers to prepare and file federal income tax returns using a guided tax preparation software for free if an individual earns $79,000 or less.
Ahead of filing, those who are residents in the city limits of Texarkana, whether in Arkansas or Texas, may be concerned about paying Arkansas state taxes. The Border City Exemption Form is a form that exempts residents from paying Arkansas income tax.
"If you live in Texarkana, you can file a form called AR-TX that is a form you get from your employer, and it is a border city exemption form," said Brooke Ferguson, executive director of the Literacy Council of Bowie and Miller Counties.
Those claiming an exemption for income from a W-2 form must also attach the Form AR-TX given by the individual's employer.
For those who need assistance filing, the Literacy Council offers free help through the IRS VITA Program. To qualify, one must be either 60 years of age or older, have an income under $64,000, have limited English proficiency, or be disabled.
The most notable change in filing this year is that the standard deduction has been raised. The standard deduction is a specific dollar amount that reduces the amount of taxable income. The standard deduction consists of the sum of the basic standard deduction and any additional standard deduction amounts for age and/or blindness.
In general, the IRS adjusts the standard deduction each year for inflation, according to the IRS website.
The Literacy Council has processed 200 tax returns so far this year.
"The staff here is getting certified every day because we are so booked and still have a waiting list," Ferguson said. "I'm proud, because that is a large group of people getting help, and some are coming in with three years' worth of returns because they were afraid of either doing it wrong or they would have to owe."
The Literacy Council is seeing examples of how the lack of access to assistance affects those needing to file.
"You're seeing a real-life example of how a lack of access without paying for it impacted people to where they didn't even file," Ferguson said. "So we are seeing the positive benefit of it for people to now file because they feel confident when they have someone to help them and without having to pay."
Ferguson is working to start a financial literacy program in the future.
For more information about the Literacy Council, call 903-823-3470 or visit literacytxk.org.