Trending
It's likely that some residents of the Tri-State Area will be spending some of their time this weekend finalizing their income tax returns.
That's because Monday is the deadline to file your returns.
Federal income tax takes center stage at this time of year, but just about everyone who lives across our region also will be filing state and local returns as well. And, just like how the number of taxes -- and the amount -- we have to pay has changed over time, the way we pay what we owe to the government has changed, as well.
It wasn't all that long ago that a staple for news coverage in the last few days leading up to April 15 was the last-minute crush to get all of those documents filed. Those who prepared taxes -- from CPAs to professionals employed by the chains dedicated to that line of work -- were crushed during that period as time ran out on those who waited for the last minute.
There always was an interesting story or two about people who would show up with a shoebox filled with receipts, pay stubs and W-2s and other forms and expect someone else to be able to make sense of it all in a very short period of time.
And then, you always could count on being able to grab a photo in front of the post office late in the evening of April 15 as vehicle after vehicle passed through the parking lot and returns were handed to postal workers -- with everything wrapped up and postmarks applied before midnight.
While some people still wait until the last minute to complete their mandated filings, most of the work is now done online.
In fact, according to WalletHub, 92 percent of the estimated 146 million federal tax returns expected to be filed this year will be submitted electronically -- and 55 percent of Americans will complete the process entirely on their own. All told, it's estimated the average person will spend 13 hours and $270 on their taxes, the Washington, D.C.-based personal financial website reports.
Investing all of that time can be worth it, though, as WalletHub reports the average refund will be $3,213.
When it comes to state taxes paid, area residents do OK. At least that's what information compiled by the Tax Foundation seems to indicate.
According to a report released April 3 -- 2024 State Tax Data: Facts and Figures -- the state tax collections per capita in 2022 for Pennsylvania totaled $4,140, ranking the commonwealth 22nd in the nation. West Virginia and Ohio came in a little better: The Mountain State was ranked 27th at $3,986, while the Buckeye State came in at 42nd at $3,176.
California was ranked first at $7,200, while Hawaii was second at $7,152, North Dakota third at $6,848, Vermont fourth at $6,822 and Connecticut fifth at $6,221.
New Hampshire was 50th at $2,497, according to the Washington, D.C.-based nonprofit which states that its mission has remained the same since it was founded in 1937: To improve lives through tax policies that lead to greater economic growth and opportunity.
While income taxes are on the minds of just about everyone right now, there are plenty of other taxes we pay every day, whether we realize it or not. For example, those who buy beer in Ohio and West Virginia pay 18 cents per gallon in excise taxes, ranking them 34th in the country. In Pennsylvania, the tax is 8 cents per gallon, ranking it at 46th.
If you lean toward spirits, the rate in Pennsylvania is $7.41 per gallon, which places it as 21st, while West Virginia's rate of $8.32 per gallon ranks it 19th and Ohio's rate of $11.38 leaves it at 12th. The highest rate -- $36.55 - is in Washington state, while the lowest is in New Hampshire, where it is zero.
If you think taxes on your cellphones are high, you are probably right. The foundation's report on taxes, fees and government surcharges on wireless service as of July showed Ohio's total of 8.58 percent placed it at 41st. West Virginia's rate of 11.6 percent leaves it at 26th and Pennsylvania's rate of 16.77 percent puts it in eighth.
Looking at the overall tax burden a person might face, WalletHub places Ohio at 16th, at 8.82 percent. West Virginia is 21st at 8.45 percent and Pennsylvania is 25th at 8.36 percent. New York is the highest at 12.02 percent, while Alaska is the lowest at 4.93 percent.
Despite all the additional taxes we seem to face, it has become easier to file your own taxes.
Form 1040 now has just 38 lines, a significant drop from the 71 lines it had in 2017.
And, after you have taken all of the taxes we have to pay into account and gone through all of the work it takes to get all of that information filed, Americans still have a tough time when it comes to thinking about the possibility of having to face an audit by the Internal Revenue Service. In truth, there's only a 0.2 percent chance that your return will be pulled and become one of the 708,000 audits the IRS will perform this year.
Just some numbers to think about during the weekend -- whether you have already completed the task of filing your returns or are just getting started.
(Gallabrese, a resident of Steubenville, is executive editor of the Herald-Star and The Weirton Daily Times.)