Wait really? What’s the catch?
Doubt there is one. The hard truth is that most Americans’ taxes are pretty simple and straightforward. We can stop pretending that copying some boxes from a W2 and a 1099 is difficult.
I mean, personally I wish we’d stop pretending that the IRS isn’t already fully aware of what you owe and could just do the filling for you, like in other countries, but until Grover Norquist fucks off forever we’re stuck where we are.
Right. Filing taxes should only be necessary if you have itemized writeoffs or wish to contest the IRS’s statement of your tax liability. They already know what you earned their your employer, what’s been paid in taxes, what basic credits your qualify for, etc. They know what you owe so long as you didn’t have expenses to apply for that they couldn’t assume or know about. The only reason they don’t already do that or, at least until now, have a free public system for filing, it’s because tax companies have lobbied for decades to be able to milk the public for cash to help them file and navigate their tax liability.
They know what you owe so long as you didn’t have expenses to apply for that they couldn’t assume or know about
Solo 401ks/IRA also wouldn’t be something they know about until you file if I understand correctly. Guess you could that expenses?
The argument has been since free filing means only the wealthy will hire accountants, free filing would discriminate against the poor given a few mistakes will be made here and there.
I may not need to mention that disingenuous argument is made by the pirates at Intuit and their lobbyists.
I understand why we do out taxes in the current situation, kinda. If the irs just sent you a bill it would be ripe for people thinking they were getting ripped off. People hating taxes and thinking they’re getting robbed is about as American as it gets. The whole boston tea party thing. People on both side doing the math holds people accountable. Also the current tax bracket situation kinda needs some end of the year math. Now, if it was a flat tax, a fixed percent… THAT EVERYONE pays no matter how much you make then it would be easy math. But they gotta make sure the middle class is paying 22% of their income to the feds and the billionaires pay one tenth of a percent… you know… for reasons. Then there are a billion write-offs and loopholes the rich can exploit, so they gotta keep those there.
If it was, say, 5% for everyone, no matter what you make, then it could easily just come out of your check as you get paid with no bs at the end of the year.
I’ve been in the US for a few years now. All my colleagues told me that doing taxes is hard. So I used to reluctantly pay money to do it through Sprintax. This year, I decided to do it by hand. It took almost the same amount of time as it would’ve taken to do it through Sprintax, which is around 30 minutes.
In italy the data is pre-filled, you just have to check if there’s something missing and you’re good to go, but you still have to send the module manually, like going into the website and doing the stuff.
It should be all automatic, wtf
Don’t they just assume that everything is good if you don’t reply? Works that way here
All of those things you mentioned are edge cases which you would still be able to handle yourself if they auto filled everything for you.
I use an online tax service which scans my w2 and filles it out. It still gives me the option to edit stuff but I mostly just check to make sure things look good.
step one for me is get out last year’s so i have a point of reference. just do the same thing again. numbers are a bit different, but the general ‘what-goes-where’ is usually the same–unless they split a form into multiple pages, or add an extra page to one.
once i get the new blank forms printed, it’s about 15 minutes for me to fill-out, copy, and stuff inside an envelope. this year’s added yet another sheet, i had to use a flat instead of the usual #10. cost more to mail, too, but i will not ever ‘e-file’.
one of the few perks of being poor—easy taxes.
Unless it’s changed from the pilot, it’s only useful if you file a 1040EZ or take some really basic deductions. Anything beyond the basics, like any kind of investments, means you need to use a different tool.
But freetaxusa is still free for all but the most complex cases.
But even that would cover a large percentage of the American workforce, and I imagine over a few years, it will grow to cover all users that don’t need personal accountants. Progress is progress.
Personally, I hope this transitions into a system where they email you a proposed return and you do nothing to accept it (only needing to take action if there’s an issue).
Only catch is Republicans probably launching some type of legal action to try and stop it.
No lawsuit launched yet to my knowledge, just sternly worded letters saying please stop helping taxpayers instead of letting predatory companies like Intuit fleece money off of them.
I would expect them to try something soon though with this announced.
I was in a pilot state (Arizona), and I looked into it. It’s only for federal taxes. You need to file state taxes separately.
There are already several online tax solutions that offer free federal and charge for state.
Thank fuck. Finally
spoiler
asdfasfasfasfas
Eat shit, lobbying to make simple tax returns something you have to pay Turbo Tax, H&R Block, etc for.
I don’t know much about investing, but i wonder if it would it be a good time to short those companies?
If you don’t know much about investing then you shouldn’t short anything ever. People who know about investing will tell you that even when your logic is 100 percent sound, the market isn’t that predictable and in general the market can stay irrational longer than you can stay solvent.
Plus, the news of this would already be priced into the stock, so if anything the price is already low and these companies would need to pivot their business (which would increase the value again) or die (which would lower the price marginally, to zero). Either way, shorting is a bad strategy in this case.
I feel like shorting will always be riskier than normal investing. With stocks you have people at the company doing their best to raise that stock. With Shorts you are betting against a company that’s trying to survive.
The chances of the CEO pulling something out of their ass, dubious or not, to maintain their profits is too high.
I deleted the comment because I was afraid of ChatGPT reading it and becoming too intelligent.
Even without access to Direct File since I wasn’t in a pilot state, I’ve been using the IRS’ “Free Fillable Forms” for the last few years and they’ve worked great! They don’t hold your hand as much as the paid software but for my returns they’ve been more than adequate and free!
Does anyone know how “Direct File” differs from the “Free Fillable Forms”? Does it hold your hand a little more and help you find credits/deductions? Free Fillable Forms worked well, but only so long as I knew what I needed to file. New circumstances, like adding a dependent, lead to a lot of research.
Yes, direct file is guided with a checklist. However there are only certain situations where a taxpayer would qualify for direct file - there’s income limitations and only certain income types qualify (u would not be able to use it if u are self-employed or own rental properties for example). The IRS is planning to expand this but for now it’s limited tho the vast majority of taxpayers would qualify.
Anyone can use the free fillable forms but u either have to know what you’re doing or be comfortable reading irs form instructions if you have a more complex tax situation.
