A new report finds New Yorkers are getting the most out of their tax filings, thanks to a new resource.

The Internal Revenue Service's free, online Direct File Tool walks people through an interview to help filers claim tax breaks they're eligible for.

One goal of this tool is to close what's known as the "tax credit uptake gap."

Liza Schwartzwald, director of economic justice and family empowerment with the New York Immigration Coalition, said people often don't claim credits they're entitled to - like the Earned Income Tax Credit and the Child Tax Credit.

"They may not know they need to file for them in particular ways," said Schwartzwald. "They may not know they're even eligible. They may be lower-income earners and think, 'You know maybe if I don't owe taxes this year, I don't owe very many taxes, well maybe, you know, I don't need to file or maybe I don't know how to file, or maybe it's too expensive for me to figure out how to file.'"

Along with the benefits for families, this tool can benefit the state too. As more people can file their taxes, this creates additional tax revenue.

For now, IRS Direct File is a pilot program in New York, but a nationwide roll-out is estimated for 2029.

In 2029, the report predicts each filer will save $160 in filing fees - and countless hours on their taxes, totaling $11 billion annually between the two.

But, as beneficial as the tool has been, the program is at risk of falling victim to politics.

The recent federal budget includes a $20 billion dollar IRS funding cut. Adam Ruben - the campaign vice president and vice president for political strategy with the Economic Security Project - said beyond this, deserved or not, the agency has to rebuild its reputation.

"A lot of people have had bad experiences with the IRS, or get an IRS letter in the mail, and it makes them very nervous," said Ruben. "And so, I think the IRS has a trust deficit that they need to overcome. I feel optimistic that Direct File is a powerful tool to doing this."

He added that IRS Direct could help boost the agency's image.

As the program grows, the report shows it can spare more than 400,000 people from having to undergo an IRS correction proceeding or audit.

This week, Ohio approved adult-use marijuana sales as part of a 2023 ballot measure, with sales anticipated to start mid-June.

Ohioans age 21 and over can now legally purchase marijuana across the state. In December, a law was enacted allowing people to grow and possess marijuana, but with no legal avenues to purchase it. Gov. Mike DeWine and some Republicans sought swift action to prevent black market sales.

Jim Canepa, cannabis control superintendent for the Ohio Department of Commerce, said after years of experience in liquor control, his role is to fairly and responsibly permit folks who grow, process, sell and test cannabis.

"My focus right now is really on coming up with the rules that are required and set forth, and the timeline set forth, in the initiated statute," Canepa explained. "They are June 7th to have the applications ready, and September 7th to start issuing permits."

The Joint Committee on Agency Rule Review approved the rules without objection, enabling a dual licensing program for existing medical marijuana dispensaries to also sell nonmedical cannabis products.

Ariane Kirkpatrick, CEO of the cannabis company Harvest of Ohio, said her dispensaries are ramping up to meet the anticipated demand.

"How are we going to do staffing?," Kirkpatrick asked. "We're looking at parking, so, at the different ordinances of the cities of where we're located, to make sure we have the proper parking. Looking at drive-through, because some of our locations might have been limited already as far as capacity."

The new legislation allows for people age 21 and older to buy and possess up to 2.5 ounces of cannabis, or 15 grams of cannabis extract, and the home cultivation of up to six plants for personal use and up to 12 plants with two or more adults in the household.

Reporting by Ohio News Connection in association with Media in the Public Interest and funded in part by the George Gund Foundation.


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Massachusetts residents struggling to pay high food prices are acquiring a growing amount of debt to pay their bills, according to a new report.

The Urban Institute found 60% of adults reported using credit cards to buy groceries but only 20% managed to pay the minimum monthly payment.

Kassandra Martinchek, senior research associate at the Urban Institute, said nearly 25% of families have dipped into savings to keep everyone fed.

"Some families are really struggling to even meet their basic needs and are taking riskier financial strategies that could leave them less capable to cope with a future financial shot," Martinchek pointed out. "Something like losing their job."

While U.S. inflation slowed last year, the average Massachusetts household continued to spend more than $270 a week on groceries with Boston ranking in the top 20 cities with the highest grocery prices.

The report shows adults with very low food security were also more likely to experience challenges in repaying their debt compared with those with less severe food hardship. For families taking advantage of "buy now, pay later" options, 37% reported missing payments on their loans.

Martinchek emphasized missed debt payments during a time of price hikes could have long-lasting effects.

"They could have constrained access to affordable credit options and struggle to take advantage of different wealth building opportunities," Martinchek noted.

Martinchek added it is especially the case for historically disadvantaged households. The report suggests policymakers strengthen social safety nets to help families as pandemic aid expires, and to bolster credit counseling and debt-management services.

Ohio lawmakers are exploring ways to address the state's looming retirement crisis.

According to The Pew Charitable Trusts, if the personal retirement savings situation remains unchanged, Ohio could expect to see a more than $11 billion increase in state spending over the next two decades.

House Bill 501 would create a Joint Legislative Study Committee tasked with studying retirement options for small businesses and state-facilitated workplace programs to improve access to retirement savings.

Amy Milam, associate state director of outreach and advocacy for AARP Ohio, said people are more likely to save for their golden years when they can do so by having a percentage of their paycheck deducted.

"In Ohio, we have 42% of Ohio's private sector workers -- that's roughly 1.8 million people -- who do not have access to a retirement savings plan through their employer," Milam reported.

Nationwide, around 64% of Hispanic workers, and 45% of Asian American workers lack access to an employer-provided retirement plan. According to an AARP report, almost three of four workers with less than a high school diploma lack a work-based retirement plan, a much higher percentage than those with a bachelor's degree.

Milam added more than a dozen other states have created partnerships with employers to offer state-sponsored plans to give employees access to Individual Retirement Accounts.

"Giving employees a simple way to save for retirement on the job means that fewer Ohioans will need to rely on public assistance later in life," Milam emphasized. "Which will benefit the individual and will also benefit the state by saving taxpayer dollars."

In some states, investment companies have pushed back on state-sponsored plans, seeing them as competition. But a 2023 survey by AARP found 92% of Ohio business owners support legislation creating a public-private retirement savings option for workers.