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Congress Is About to Ban the US Government from Offering Free Online Tax Filing

propublica.org

121–130 of 717 posts

Re: Congress Is About to Ban the US Government from Offering Free Online Tax Filing

#121

Earlier quoted context omitted.

> I don't think we exist in a world where this is possible. The majority of people are pretty ignorant. Look at all the news articles from early in 2019 talking about the size of tax refunds, and people thinking they didn’t get a tax cut because their refund this year was smaller than the one they got last year. In reality, almost everyone got a tax cut (>90% of taxpayers) but that doesn’t necessarily mean a larger r…

Not everyone got a tax cut and the cuts went primarily to businesses and the ultra wealthy. The President also tried to make the cuts look bigger by changing withholding requirements. It doesn't invalidate that most people are ignorant, most people don't even pay any taxes, but if you're moderately well off, have more than one home, and live in a state that actually has a functional state government that provides ser…

>almost everyone got a tax cut (>90% of taxpayers)

>>Not everyone got a tax cut

>>but if you're moderately well off, have more than one home, and live in a state that actually has a functional state government that provides services to their people

Would you say the percent of the population that fits that criteria is maybe ... 10%? I dont see why you would rebut "90% of people got a tax cut" with "well people who own multiple homes didnt."

Re: Congress Is About to Ban the US Government from Offering Free Online Tax Filing

#122
post #26

What's preventing a OSS solution to this? What I can think of off the top of my head: * Lack of e-file permission * Lack of any kind of legal recourse or audit protection for the user * Constantly changing tax system After a casual search on GitHub I see a few calculator projects but nothing serious. I'd be down to help make a free competitor to Intuit. I see no reason to use a non-static site unless it's to keep pre…

One of the biggest benefit of government provided returns is they already have a bunch of information on you so it can come pre-filled. And for a lot of people all they need to do is sign and send back.

Re: Congress Is About to Ban the US Government from Offering Free Online Tax Filing

#123

Earlier quoted context omitted.

I will say, vote with your dollars. If you don't like Intuit's lobbying, please don't feed the beast and use their services.

What are suitable alternatives? Aren't they the best in class, regardless of how shitty that class is?

Read the 1040 instructions, and follow them. This works if you don't have a complicated situation, such as business income or if you need to calculate penalties for shortfalls on quarterly filings. Have a CPA do your taxes periodically, then use last year's taxes as a guide for the current year.

Typically what I do is write a small program that asks the questions in the 1040 form, then gives me a print out of what goes in each field.

For my case, I have one source of income (employer), a couple times I've sold stock, and I have a mortgage, am single, but support my SO and her 4-year old grandkid. I've done my own taxes for the last 20 years, and only a couple times took it to a professional (once to H&R block when I sold stocks, and last year to a CPA). Both times the tax forms were exactly what I figured out on my own.

Re: Congress Is About to Ban the US Government from Offering Free Online Tax Filing

#124
post #95
post #61

I'm self employed and had to explain to my kids why taxes in the US were so complicated and took hours to do over the weekend. There must be powerful forces at work because Republicans have touted a flat tax or a return the size of a postcard for decades but when they controlled all three branches of government couldn't get anywhere near enough votes to pass it. It's truly an abysmal system and I hope my kids don't h…

The republicans haven't bragged about it, but I'm guessing limiting SALT deductions to way below the standard deduction will drastically reduce the number of filers itemizing deductions. That leaves you with form 1040 which is roughly half a page front and back, not much bigger than a postcard. Certainly, if you have capital gains or other things, you'll need extra schedules, and maybe you need to send w-2s, so it's…

If you have a mortgage, and paid state youd easily be over 2x the standard deductions

Re: Congress Is About to Ban the US Government from Offering Free Online Tax Filing

#125
post #78
post #59

Earlier quoted context omitted.

The question I have is whether a government provided automatic filing would actually be cheaper (or more effective) than say, Turbotax. I see a couple of ways in which it might not be as favorable: 1. It costs more than $100 per tax payer per year to implement (about the cost of Turbotax). However the flat $100 or so that most people pay to Turbotax can be seen as a kind of regressive tax. 2. It is less effective at…

>The question I have is whether a government provided automatic filing would actually be cheaper (or more effective) than say, Turbotax. The question is valid, but the numbers do not add up. TT asks ~$50 for federal return. If everyone in US used the service, the cost would amount to over 16 billion dollars. That is more than the entire IRS budget[1] right now. [1] https://www.irs.gov/statistics/irs-budget-and-workfo…

On the other hand, the IRS generally already does many of these calculations, since they receive many forms of income directly (W-2s from your employer, 1099-INT from your bank, etc).

The better question is how much it costs TT to operate returns, and how much of that $50 is profit-taking.

Re: Congress Is About to Ban the US Government from Offering Free Online Tax Filing

#127
post #51

Earlier quoted context omitted.

>US is really odd how it emphasizes the benefit of the middleman over the benefit of the individual citizen (it seems). I wonder what extent this is decided by how we vote. As long as voters pick the politician who prioritizes the middle man and gets their campaign contribution is selected over the politician who prioritizes the public but whose opponent gets the middleman's campaign contribution we will continue to…

Is the public really to blame for this? Is there an actual broad constituency that doesn't want this, or at least who trusts an interest group to represent them and who doesn't want this?

I don’t want this? We are very bad in America about hiding taxes, e.g. through unfunded mandates and mandatory cross subsidies. We don’t need to do anything more for people to have even less insight into what the government actually collects from their paycheck.

Re: Congress Is About to Ban the US Government from Offering Free Online Tax Filing

#128
post #7

What propublica left out: To be clear the Intuit’s of the world are not acting altruistically, however they’ve created an odd alliance with anti-tax advocates who 1. Think that any government provided system will favor the government over tax-payers and make it easier to sneak in stealth tax changes and 2. The anti-tax lobby cynically (and correctly) understands that in order to keep taxes unpopular, making them pain…

I don't buy this.

"Use us and we will help you avoid the government's stealth tax" would be a marketing field day for intuit and h&r block PR.

Re: Congress Is About to Ban the US Government from Offering Free Online Tax Filing

#129
post #61

I'm self employed and had to explain to my kids why taxes in the US were so complicated and took hours to do over the weekend. There must be powerful forces at work because Republicans have touted a flat tax or a return the size of a postcard for decades but when they controlled all three branches of government couldn't get anywhere near enough votes to pass it. It's truly an abysmal system and I hope my kids don't h…

A flat tax will never happen: people want the tax code to have a bunch of deductions and rebates, and codifying those will always result in complexity.

Re: Congress Is About to Ban the US Government from Offering Free Online Tax Filing

#130
post #48
post #26

What's preventing a OSS solution to this? What I can think of off the top of my head: * Lack of e-file permission * Lack of any kind of legal recourse or audit protection for the user * Constantly changing tax system After a casual search on GitHub I see a few calculator projects but nothing serious. I'd be down to help make a free competitor to Intuit. I see no reason to use a non-static site unless it's to keep pre…

The problem is that the system requires constant maintenance every time some tax law changes in any state, and great maintenance is something that only the most well funded OSS projects get. And you need participation from lawyers and accountants, not just software developers. As the article notes, there are already free solutions for people with basic income situations (W-2, some bank interest, no stock sales) makin…

Let the irs handle federal and let the states worry about their own.
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