More Than 5 Million Illinoisans Have Filed Taxes Despite Extension

From The Center Square:

By Kevin Bessler

After being extended to July 15 because of the COVID-19 pandemic, the tax filing deadline is now less than a month away.

As of June 15, nearly 5 million Illinois taxpayers filed their state individual tax returns despite the extension.

The website Credit Card Insider recently conducted a survey on taxpayer filing habits. Credit industry analyst Nathan Grant said some people plan to use a credit card to pay their taxes.

“For one the IRS doesn't offer direct payment options, so instead different payment processors will charge additional fees,” Grant said. "Fifty-eight percent of respondents plan to use their credit card to pay taxes in order to get rewards, but with fees, you may not come out ahead.”

The biggest question when filing taxes is whether the taxpayers is expecting a refund or will owe money to the government. Grant said 72% of survey respondents said they expected to get a refund this year.

The trend suggests that the majority of filers give the government a free loan: They have more taxes than necessary withheld over the course of the year, which results in refunds.

The survey shows 40 percent of respondents who expected a refund have credit card debt that they couldn't pay off in full, and of that group, 24% said they didn’t plan to use their refund to pay off credit card debt. Grant said it is important to pay down debt if you can, especially during these times.

“With the COVID pandemic going on, many people found themselves without jobs too, so having high-interest credit card debt looming over them is just adding more stress to an already difficult situation,” he said.

The focus of the work of The Center Square Illinois is state- and local-level government and economic reporting that approaches stories with a taxpayer sensibility. For more stories from The Center Square, visit TheCenterSquare.com.