Killing TurboTax • Hacker News Board

Re: Killing TurboTax

#171

Post by runako » Wed, Mar 03, 2021, 5:51 PM UTC

ghaff wrote: post #144

runako wrote: post #104

Earlier quoted context omitted.

I came here to write something along these lines. For the simplest cases, filing is free and really easy now. Everyone who needs TurboTax now would need something roughly as complicated until our entire tax regime is overhauled. Adding to the types of really common situations where you do have to provide context the IRS doesn't already have: - side-hustle contracting (IRS doesn't know what expenditures are for the bu…

>- stock sales (your broker may not know your basis) This used to be a real nightmare especially when there were acquisitions in stock, splits, etc. There were a couple times over the years when I just said F' it and put down a reasonable number. But these days, unless you have some pretty old investments, the brokerages generally track your basis.

> the brokerages generally track your basis.

Yes, but IIRC if you transfer investments between brokers you are back to tracking basis yourself (if you're lucky, the new broker will allow you to enter the basis after the transfer).

But agree in the general case that it's not a problem for younger people. (Gen X and older may indeed have some of those pretty old investments lurking in their portfolios.)

Re: Killing TurboTax

#172

Post by bluGill » Wed, Mar 03, 2021, 5:52 PM UTC

chrisseaton wrote: post #155

motbob wrote: post #126

Earlier quoted context omitted.

Maybe it's "bull pucky" to you, but I have vivid memories of my parents agonizing over taxes as a child. The agony they went through is much ameliorated now due to advances in technology. And thank you for the link, but this news segment basically is big on opinion, low on specifics. Feel free to link me to a detailed article on how non-U.S. countries handle self-employment or dependent tax issues and whether/how tho…

Most importantly, most countries do it by simply having much higher thresholds for complicated tax rules applying to you. In the UK quite a few people don't pay any tax at all, and the vast majority don't pay enough tax to have to file any return. What impact does a dependent have on your tax that needs to make it so complicated? I have relatively complicated taxes due to two jobs and some unusual deductions, but hav…

Children are hard if the parents are separated. You get child support to figure out. And who gets what share of the tax credit is tricky as well. (This is one way for one parent to abuse the other - file fast and claim all the credits, whoever files second now has to prove the first did the wrong thing at their expense)

Re: Killing TurboTax

#173

Post by JCBird1012 » Wed, Mar 03, 2021, 5:52 PM UTC

brocket wrote: post #158

mikecarlton wrote: post #130

Don't give turbotax your money. If you want free, high-quality tax prep, consider Credit Karma ( https://www.washingtonpost.com/technology/2019/03/07/when-ta... ) The difference is that they're using your data to target financial products at you (just like any other free service). But they don't sell your data at least.

Now it's the same company unfortunately. Intuit completed their acquisition of Credit Karma in Dec, 2020. https://investors.intuit.com/news/news-details/2020/Intuit-C...

The part you're missing is that as a part of the acquisition, Intuit was required by the Justice Department to divest the "tax" portion of Credit Karma - so no, they're not the same company. Credit Karma, the main app, is Intuit. The tax portion of Credit Karma is not.

https://www.justice.gov/opa/pr/justice-department-requires-d...

Re: Killing TurboTax

#174

Post by colejohnson66 » Wed, Mar 03, 2021, 5:52 PM UTC

wheybags wrote: post #167

Something I never understood about us taxes - from reading discussions online, it seems like everyone needs to file taxes at the end of every year? Here it's only self employed, or people with rental or investment income. In a normal employer-employee relationship, the employer has to take care of it for you, they deduct taxes before sending the money to your account. This seems to be the way it works in most places,…

Correct. Companies like Intuit lobby the government to keep complex tax codes so they can provide services that make it easy.

Re: Killing TurboTax

#175

Post by MeinBlutIstBlau » Wed, Mar 03, 2021, 5:52 PM UTC

wheybags wrote: post #167

Something I never understood about us taxes - from reading discussions online, it seems like everyone needs to file taxes at the end of every year? Here it's only self employed, or people with rental or investment income. In a normal employer-employee relationship, the employer has to take care of it for you, they deduct taxes before sending the money to your account. This seems to be the way it works in most places,…

A swedish guy I go to school had to file taxes...while not generating any income or allowed to generate income. He almost got in trouble with whatever US dept handles immigrants cause his advisor in the foreign affairs office didn't tell him this.

Re: Killing TurboTax

#176

Post by lotsofpulp » Wed, Mar 03, 2021, 5:52 PM UTC

chrisseaton wrote: post #102

Are accountants prohibitively expensive in the US? I don't use any tax software myself in the UK - I just pay an accountant $250 once a year and he does it for me (using some software I presume.) It's not really on my radar as things worth trying to automate or use software myself for, let alone building my own software! I'd have to be able to do it in just a few hours to be cost effective.

You also have to trust the accountant, and the accountant is not liable at the end of the day anyway.

If you are a W-2 employee, even with having to file a Sch 1/2/3/B/D/etc, it shouldn’t take more than a couple hours. And you get to know you did it right.

Of course, if you don’t enjoy reading tax instructions, I highly recommend parting with a couple hundred dollars and letting someone else do it.

Re: Killing TurboTax

#177

Post by JCBird1012 » Wed, Mar 03, 2021, 5:54 PM UTC

briga wrote: post #142

mikecarlton wrote: post #130

Don't give turbotax your money. If you want free, high-quality tax prep, consider Credit Karma ( https://www.washingtonpost.com/technology/2019/03/07/when-ta... ) The difference is that they're using your data to target financial products at you (just like any other free service). But they don't sell your data at least.

You realize Intuit owns Credit Karma now, right?

Square owns Credit Karma Tax. Intuit was required to divest that part of the company as a part of the merger. https://www.justice.gov/opa/pr/justice-department-requires-d...

Re: Killing TurboTax

#178

Post by moviuro » Wed, Mar 03, 2021, 5:54 PM UTC

klmadfejno wrote: post #146

The article seems odd to me. Tax filing at the push of a button still implies a middleman. You don't need to push the button.

We have the following data about you: [...] Does it look correct? [Y/n]

That's how it's done in France for example.

Re: Killing TurboTax

#179

Post by ghaff » Wed, Mar 03, 2021, 5:55 PM UTC

chrisseaton wrote: post #157

lotsofpulp wrote: post #153

Earlier quoted context omitted.

It’s pretty simple to do your own taxes unless you have your own business and partnerships and whatnot. Spend a couple hours reading the instructions, use the IRS free fillable forms website, and you do it once and every year after it’s quick and easy. Things don’t change much year to year. If you don’t understand, post a question a personal finance forum and someone will pipe in with an answer.

> It’s pretty simple to do your own taxes So why do people complain about it so much? To the point where they're writing their own custom software (?!) to do it?

Mostly because it's an unpleasant task that can involve large sums of money if you put things in the wrong boxes. And even relatively straightforward brokerage accounts and second income sources start cranking up the complexity in a hurry.

Re: Killing TurboTax

#180

Post by lotsofpulp » Wed, Mar 03, 2021, 5:55 PM UTC

chrisseaton wrote: post #157

lotsofpulp wrote: post #153

Earlier quoted context omitted.

It’s pretty simple to do your own taxes unless you have your own business and partnerships and whatnot. Spend a couple hours reading the instructions, use the IRS free fillable forms website, and you do it once and every year after it’s quick and easy. Things don’t change much year to year. If you don’t understand, post a question a personal finance forum and someone will pipe in with an answer.

> It’s pretty simple to do your own taxes So why do people complain about it so much? To the point where they're writing their own custom software (?!) to do it?

I don’t know. But if you’ve opened up the IRS free fillable forms website, and put up the accompanying instructions on your second monitor, and know how to read English, I don’t see how it’s difficult, if you’re income is from a W-2. Everything is kind of labeled and laid out for you.