By Tashi McQueen
AFRO Staff Writer
tmcqueen@afro.com
When tax season opens in January 2025, the IRS estimates that more than 700,000 Marylanders will get access to a new free tax filing system.
“Maryland will partner with the IRS in 2025 to allow Marylanders to file taxes through the IRS direct file system,” said Maryland Comptroller Brooke Lierman (D).
Maryland joins 23 other states in this new initiative.
Lierman said that right now, working-class or middle-class families rely on paying tax preparers to file their federal and state taxes.
“With direct file, they will be able to do the process for free,” she said.
Though eligibility requirements from the IRS have not yet been released, the comptroller’s office shared that Marylanders whose income primarily comes from a W-2, who use a standard deduction and intend to claim common credits may be eligible.
During the announcement, Gov. Wes Moore (D) acknowledged that “to some, this announcement may seem inconsequential,” but emphasized that it shows that this federal and state government “will sweat the details.”
According to the IRS, the average American spends 13 hours and $270 filing a tax return.
“That’s money that could go toward the cost of food or child care,” said Moore. “That’s time that could go towards spending time with your family, supporting your children, or your aging parents.”
Lierman also addressed the average amount of money and time Americans spend on filing taxes.
“Much of that time is spent pulling information together that the IRS and our agency already have and much of that money goes to software companies,” said Lierman. “It’s unacceptable that Marylanders should have to pay any portion of their refund or paycheck to fulfill a mandatory requirement like filing tax returns.”
Though Maryland leaders highlighted how this initiative could be especially beneficial for low-income families throughout the state, Dr. Linda Loubert, an associate professor in the economics department at Morgan State University, said “she does not see this as a big step forward.”
“Taxes happen once a year…eating, taking care of your family and paying the rent happens daily,” said Loubert.
Loubert said it’s going to take many other initiatives like this to truly reach and assist low-income Marylanders.
She shared one way in which state leaders and politicians can further support Black and low-income Marylanders.
“There are all kinds of fees that people have to pay such as permits, ” said Loubert.
Loubert continued by saying, “people get used to and hate paying” fees but “if you’re at low income,” it would be especially helpful to have reduced fees.
Loubert said if low-income Marylanders were to pay everyday fees that are proportionate to their income that could significantly help reduce their financial strain.
Nonetheless, she does recognize that “every little bit helps.”
Lierman said her office will be reaching out and communicating with the public over the next few months to ensure Marylanders know about this new resource and who is eligible.
Eligibility requirements are expected to be released in January 2025 before the tax season begins.
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