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How the Maker of TurboTax Fought Free, Simple Tax Filing (2013)

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Re: How the Maker of TurboTax Fought Free, Simple Tax Filing (2013)

#141

Earlier quoted context omitted.

You forgot to mention the waterfall of caveats and trip hazards associated with any of those supposed free offerings.

what are they?

Let's start with that fact that Then how about the fact that offerings are only applicable if you're filing 1040EZ. For example, if you so much as claim student loan interest or itemize deductions, that's automatically 1040A at a minimim and disqualifies you from the free offering.

Then there's actually getting your tax return. If you don't provide an ACH bank account and routing number, you'll get charged to have your return credited. You'll also be solicited to purchase crap like bonds, insurance, or donate to some charity. Another common tactic to nibble away at your return is to offer to get paid by the service provider (as opposed to the IRS) for an upfront cost. I won't even touch on the dark patterns employed in this process.

To e-file, you'll also need to know your prior year's AGI or PIN. This is important when coupled with a model which tries to get people to "push and forget" without keeping any independent documentation. There's no doubt in my mind that many people go back to same provider not because of superior service or competitive offerings, but because their information from the previous year will automatically be pulled to enable e-filing. If you weren't diligent enough to keep good records and want to try a different provider, you'll be charged for a digital copy of your previous years' filings.

Now go do your own homework.

Re: How the Maker of TurboTax Fought Free, Simple Tax Filing (2013)

#142
post #23

I have a better idea. Simplify the tax code so anyone can do theirs on an index card. There is absolutely no reason for the gargantuan tax code in a free society.

That's what the 1040EZ is. Seriously, take a look at it, it's a single page, only half of which is calculations: https://www.irs.gov/pub/irs-prior/f1040ez--2016.pdf If you object that this isn't sufficient for you or someone else, I'll be happy to argue that whatever behavior would make you 1040EZ-ineligible should either not be permitted in a free society (because it's a tax-avoidance scheme for certain types of ric…

If I change jobs in the middle of the year and my income is high enough I might overpay social security taxes. There is no way to recoup that with the 1040EZ.

The solution to this is to do away with FICA taxes and fold collection of that money into the general tax tables (including the employer side of FICA which a lot of people forget). You may or may not be in favor of this idea?

Re: How the Maker of TurboTax Fought Free, Simple Tax Filing (2013)

#143
post #78

Earlier quoted context omitted.

HR Block's online filing system is pretty good. I have used it every year since 2005. I only started recently in the past few years paying for the upgraded services(about $50) due to mortgages and other income.

Are you using the self-employed version? I need itemized deductions including rent.

I ended up on the self-employed version due to my side hustle. I'm pretty sure this was included there.

You don't have to pay until you file, so you can poke around for free and see if it includes everything you believe you need.

Re: How the Maker of TurboTax Fought Free, Simple Tax Filing (2013)

#144
post #123

Intuit certainly does this, but blaming them for our overly complex taxes is wrong. They might move the needle a little bit but they aren't the primary driver. The primary driver is all the constituencies of all the little things in our taxes that add up to make them complicated. Like ObamaCare? That came with two additional forms. Live in a high tax state and like deducting your state taxes? That makes things more c…

That's not the point of the article at all, nor of Intuit's lobbying. Even with the current complexity of the tax code, the IRS could easily auto file your taxes for you if your income is below a certain very high level and you do not have any special complications. Such a system would work for 98% of Americans. This has nothing to do with what deductions are available or whatever complexity they introduce into the system. There is simply no reason whatsoever not to implement return-free filing, beyond the large dollar amounts tax industry lobbyists spend on the Hill.

Re: How the Maker of TurboTax Fought Free, Simple Tax Filing (2013)

#145

Serious question: Is it possible for society to criminalize rent seeking behaviors like this? It seems clear that there's no benefit to keeping the status quo tax filing system except for the benefit of tax preparers. What's stopping the US from creating a law that says if a company attempts to lobby for something in bad faith (like the tax example), they will face sanction?

We should limit all speech by corporations when it comes to their influence in the government.

Re: How the Maker of TurboTax Fought Free, Simple Tax Filing (2013)

#146
post #50

I always love reading absurd statements made by otherwise reasonable people who - of course - a salary depends on being unreasonable. Here: > Intuit argues that allowing the IRS to act as a tax preparer could result in taxpayers paying more money. Majority of work will be done automatically by some free jQuery and PHP scripts (hello Obamacare website) and taxpayers have only shell-out initial cost. Even if TurboTax i…

> Majority of work will be done automatically by some free jQuery and PHP scripts (hello Obamacare website) Obamacare website was notorious for being completely terrible. And so were many other government-run healthcare sites - I personally tried to find some info on CA site when it was launched and failed for several days until they worked out the kinks. And tax code is vastly more complex than what healthcare needs…

> Quite a lot of it. E.g. my charity donations aren't.

I think you missed the point.

IRS will know about your charity donation shall you decide to give this information to TurboTax for TT to lower your tax burden. IF you don't want to lower your burden, don't give it to TT and don't give it to IRS, problem solved.

So at the end of the day it doesn't matter if you provide something to TurboTax and they forward to IRS, or IRS will have it directly from you by adding this information to your online tax form on Gov site.

Re: How the Maker of TurboTax Fought Free, Simple Tax Filing (2013)

#147
post #121
post #97

I live in New Zealand. I don't have to file taxes if my income is a standard wage my tax payments are automatic. My employer deducts them from my wage and they are sent to the IRD (Our government tax dept). My student loan and super payments are also automatic. If there is anything wrong then at the end of the tax year I can file to correct things. I also get donations rebates, this is a one page form that lists all…

The United States has a complicated tax code because it attempts to make things more "fair" for some people. Some of these are things people like, such as deductions for people with children, paying mortage, etc. Some are more dubious.

Every country has a somewhat complex and unique tax code. Filing taxes is however much simple in some other countries compared to usa.

Re: How the Maker of TurboTax Fought Free, Simple Tax Filing (2013)

#148
post #9

Earlier quoted context omitted.

Same old same old: show me a doctor who doesn't want you to be sick. Show me a lawyer who doesn't want you to get in trouble with law. Show me a priest who doesn't want you to sin. It just blows my mind up to what degree TurboTax will go with this!

I think people are taking your comment too personally. It's not about an individual doctor, but the healthcare business. It's not about an individual lawyer, but the legal business.

+1

Re: How the Maker of TurboTax Fought Free, Simple Tax Filing (2013)

#149

Earlier quoted context omitted.

Paying TurboTax $59.99 is cheaper than going to H&R Block and paying a tax preparer $169

Or $650 which was my fee from H&R last year for one hour of service. (I own a California LLC) Anybody know a good alternative? I'm thinking about trying TurboTax Self-Employed for $89.99.

I use TurboTax Self-Employed and it works pretty well for me. It handles everything I can think of for my 2 LLCs. It takes some time though. If you have all your expenses already worked out, then it's not too bad.

Re: How the Maker of TurboTax Fought Free, Simple Tax Filing (2013)

#150
post #23

I have a better idea. Simplify the tax code so anyone can do theirs on an index card. There is absolutely no reason for the gargantuan tax code in a free society.

That's what the 1040EZ is. Seriously, take a look at it, it's a single page, only half of which is calculations: https://www.irs.gov/pub/irs-prior/f1040ez--2016.pdf If you object that this isn't sufficient for you or someone else, I'll be happy to argue that whatever behavior would make you 1040EZ-ineligible should either not be permitted in a free society (because it's a tax-avoidance scheme for certain types of ric…

Foreign tax credits to balance out foreign taxes for overseas income is another thing that nixes an 1040EZ. That's a pretty tough one to argue against.
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