Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

IRS tests free e-filing system that could compete with tax prep giants

washingtonpost.com

Post reply on HN
Print view View original

141–150 of 589 posts

Re: IRS tests free e-filing system that could compete with tax prep giants

#141

Post by Taywee »

kevin_thibedeau wrote: post #135
_yb2s wrote: post #51

Earlier quoted context omitted.

The weird thing is the IRS already knows my taxes better than I do… a few times I’ve made mistakes inputting forms or forgot to put something in, and I will always get a letter from them about it. They’ve already done my taxes so they should just send me a bill and not waste my time, possibly with the option to submit extra details they are missing like deductions… but that should be an option for people that need it…

> There is no reason for a w2 wage earner taking the standard deduction to need to file taxes. Unreported gambling winnings or a low revenue side gig aren't tracked by the IRS.

And it should be required to file a tax return only when those kinds of situations actually apply to you. The majority of the population doesn't actually have those concerns.

Re: IRS tests free e-filing system that could compete with tax prep giants

#142

Post by vkou »

ethbr0 wrote: post #117
d--b wrote: post #98

Earlier quoted context omitted.

Not all though. I developed admin-phobia since I moved back to France. Being a contractor here is such a FUCKING nightmare compared to UK and US. Sure the US could do without turbotax. BUT AT LEAST YOU GUYS HAVE TURBOTAX

The only thing worse than a private monopoly is a public one.

The only thing worse than a public monopoly is where you have to navigate both a public monopoly, and a private monopoly, which is how taxes work in the US.

Re: IRS tests free e-filing system that could compete with tax prep giants

#143

Post by dunmalg »

uticus wrote: post #79
gamblor956 wrote: post #55

Earlier quoted context omitted.

And then there's the disgusting shell game that IS the entire U.S. tax system, which is the root of the whole problem. Everyone thinks that they can come up with a much better tax system, and they always start with something super simple that meets their tax needs. But a simple system that meets one person's tax needs is usually not so simple, fair, or efficient for other people . And when you take all their needs in…

> For example, try designing a tax system that is both fair and efficient with respect to agricultural income and tech income... It won't be simple. I love these armchair opportunities for college-level challenges without the admission fees, I'll bite. Step 1: disallow corporation as a legal taxable entity, private ownership only. Step 2: Subtract expenses from income. Step 3: Divide by 10. Step 4: If more than zero,…

lol, step 1 destroys the entire stock market!

Re: IRS tests free e-filing system that could compete with tax prep giants

#144

Post by elicash »

cstoner wrote: post #74
RandallBrown wrote: post #59

Earlier quoted context omitted.

How would you know if you're going to take the standard deduction without doing your taxes? I'm fairly certain the federal government doesn't know about all my deductions.

The vast majority of people take the standard deduction, so offering a "here's what we think you owe, but if you disagree feel free to do the full return" form would be a huge efficiency gain. Your comment seems like a prime case of perfect being the enemy of good.

I know I'm likely better off with the standard deduction, but I still have to check both ways to know for sure that's the case for me. So standard deduction never actually saves me time even though post Trump tax reform I generally take it.

Re: IRS tests free e-filing system that could compete with tax prep giants

#145

Post by peoplenotbots »

kevin_thibedeau wrote: post #135
_yb2s wrote: post #51

Earlier quoted context omitted.

The weird thing is the IRS already knows my taxes better than I do… a few times I’ve made mistakes inputting forms or forgot to put something in, and I will always get a letter from them about it. They’ve already done my taxes so they should just send me a bill and not waste my time, possibly with the option to submit extra details they are missing like deductions… but that should be an option for people that need it…

> There is no reason for a w2 wage earner taking the standard deduction to need to file taxes. Unreported gambling winnings or a low revenue side gig aren't tracked by the IRS.

Are Genshin Impact microtransactions a tax write off?

Re: IRS tests free e-filing system that could compete with tax prep giants

#146

Post by jrochkind1 »

bluGill wrote: post #122
jrochkind1 wrote: post #85

Earlier quoted context omitted.

> The vast majority of people take the standard deduction Unless they are a homeowner, probably. Part of the issue is that the US tax code is a lot more complex than most countries. (And the homeowner-targetted deductions are kind of insane and bad policy too). Still, I don't disagree with the basic premise. They probably know enough to know if itemizing your homeowner-related things would be better for you, and do i…

Since Trump's tax changes very few people itemize - it is very difficult to get about the standard deduction. The average person doesn't even have enough income (the standard deduction is about a third the average income, the odds that someone at that wage level is spending enough on deductible things is small, there are too many non-deductable things they also need to buy). Of course it depends on where you live - i…

I forgot the standard deduction went up a lot.

I think you can still easily reach if you, say, tithe 5 or 10% of your (post-tax even!) income (to a church or other 501-c-3) and have a mortgage and pay property taxes in a major metropolitan area. (Also if you're single the standard deduction is half married filing jointly.) (I didn't realize the personal exemption is gone now too!!)

But a quick google says... according to the IRS in 2022, 139.2 out of 154.3 million tax returns took the standard deduction, which is indeed around 90%. (Looks like up from 87% in 2020 maybe). So, true, defintiely most people, but still 10% not.

It looks like maybe pre recent Trump standard deduction changes (which were phased in), as many as 30% of filers itemized. (Still a minority to be sure).

I wonder if charities have seen a big hit in donations, if the itemized deductions people are no longer taking were an incentive.

Re: IRS tests free e-filing system that could compete with tax prep giants

#147

Post by iosono88 »

bluGill wrote: post #122
jrochkind1 wrote: post #85

Earlier quoted context omitted.

> The vast majority of people take the standard deduction Unless they are a homeowner, probably. Part of the issue is that the US tax code is a lot more complex than most countries. (And the homeowner-targetted deductions are kind of insane and bad policy too). Still, I don't disagree with the basic premise. They probably know enough to know if itemizing your homeowner-related things would be better for you, and do i…

Since Trump's tax changes very few people itemize - it is very difficult to get about the standard deduction. The average person doesn't even have enough income (the standard deduction is about a third the average income, the odds that someone at that wage level is spending enough on deductible things is small, there are too many non-deductable things they also need to buy). Of course it depends on where you live - i…

[dead]

Re: IRS tests free e-filing system that could compete with tax prep giants

#149

Post by cyberax »

uticus wrote: post #79
gamblor956 wrote: post #55

Earlier quoted context omitted.

And then there's the disgusting shell game that IS the entire U.S. tax system, which is the root of the whole problem. Everyone thinks that they can come up with a much better tax system, and they always start with something super simple that meets their tax needs. But a simple system that meets one person's tax needs is usually not so simple, fair, or efficient for other people . And when you take all their needs in…

> For example, try designing a tax system that is both fair and efficient with respect to agricultural income and tech income... It won't be simple. I love these armchair opportunities for college-level challenges without the admission fees, I'll bite. Step 1: disallow corporation as a legal taxable entity, private ownership only. Step 2: Subtract expenses from income. Step 3: Divide by 10. Step 4: If more than zero,…

> Subtract expenses from income.

But what about investments and assets? A car that you bought for the company has a limited lifetime. So its value is slowly decreasing, should that be considered an expense?

What about R&D? We want to incentivize it, so that companies do more of it. Etc., etc.

Re: IRS tests free e-filing system that could compete with tax prep giants

#150

Post by lesuorac »

kevin_thibedeau wrote: post #135
_yb2s wrote: post #51

Earlier quoted context omitted.

The weird thing is the IRS already knows my taxes better than I do… a few times I’ve made mistakes inputting forms or forgot to put something in, and I will always get a letter from them about it. They’ve already done my taxes so they should just send me a bill and not waste my time, possibly with the option to submit extra details they are missing like deductions… but that should be an option for people that need it…

> There is no reason for a w2 wage earner taking the standard deduction to need to file taxes. Unreported gambling winnings or a low revenue side gig aren't tracked by the IRS.

Yes, a non-w2 wage earner has income that is not tracked by a w2 ...

The general issue with gambling wins is not that the IRS doesn't know (casinos report winnings) its that they don't have to report losses.

Post reply on HN