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13 States join the IRS direct-file test after tax prep firms dropped the ball
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Re: 13 States join the IRS direct-file test after tax prep firms dropped the ball
#72A value added tax on goods would be good, then we wouldn't have to file taxes at all.
Or just get rid of federal income taxes all together like they did around 100 years ago.
Re: 13 States join the IRS direct-file test after tax prep firms dropped the ball
#73Earlier quoted context omitted.
Deductions and credits: I posit, they could know based on how interlinked everything is. You have 3 kids registered in school? It’s in a db. Buy an EV? It’s in a db. But yeah- fair point. There are lots of “quiet” transactions for sure, but that’s likely no different in any other nation with better tax cycles.
> Buy an EV? It’s in a db I don't expect car purchases to be in a federal database (or the schools my children attend, for that matter).
then you're gonna really hate to learn about vehicle registration
Re: 13 States join the IRS direct-file test after tax prep firms dropped the ball
#74Earlier quoted context omitted.
US taxes were pretty cumbersome before Intuit et al. Intuit wouldn't appear if not that. So your quote may partially explain resistance to change, but not causes.
Taxes weren’t particularly difficult if like most people you were overpaying before this software showed up. The complexity was originally a way to effectively have different rules for people with accountants than regular citizens thus allowing politicians to shift the tax burden without making the carveouts obvious. Now days we just blatantly tax people living off investments less, etc. Thus defeating the original p…
And the reality today is that, if like a lot of people, you just have a W2 and maybe a 1099 or two, while the 1040 form is probably a bit intimidating, it's pretty straightforward if you're just taking the standard deduction as most people do since Trump era tax changes. Basically, if you're eligible for any of these direct-file arrangements, your taxes are pretty easy to file anyway.
I'm all for simplifying tax filing but if you're just filing basic taxes and are willing to forgo any deductions you may be eligible for such as energy efficiency, it's pretty straightforward.
Re: 13 States join the IRS direct-file test after tax prep firms dropped the ball
#75Earlier quoted context omitted.
"And tax politics make strange bedfellows. Fighting alongside H&R Block and Intuit are anti-tax activist groups like Grover Norquist’s Americans for Tax Reform. H&R Block and Intuit love taxes—that’s how they make their money. Grover Norquist wants to cut taxes wherever possible. But on this issue, their interests are aligned. H&R Block and Intuit want to make it difficult for you to file on your own. The anti-tax ac…
>The anti-tax activists think that if taxpaying is too easy, voters will be less likely to resist the federal government’s growth. Both want to make it as painful as possible for you to do your taxes yourself. This sounds a lot like the logic the US government uses with regards to normalizing relations with Cuba. They think that by keeping up an embargo, that the Cuban people will rise up and overthrow their communis…
Are you trying to tell me sanctions don't work? That's absurd. Clearly the war in Ukraine is due to sanctions working.
Re: 13 States join the IRS direct-file test after tax prep firms dropped the ball
#76I love the quote from the Intuit VP, which complained that it would end up “costing billions of dollars in taxpayer money.” The current system costs billions of dollars in taxpayer money, it’s just that today those dollars flow to Intuit. The IRS one should end up costing less overall, even at govt contracting rates.
“It is difficult to get a man to understand something, when his salary depends on his not understanding it.” ― Upton Sinclair
Re: 13 States join the IRS direct-file test after tax prep firms dropped the ball
#77[deleted]
Re: 13 States join the IRS direct-file test after tax prep firms dropped the ball
#78Re: 13 States join the IRS direct-file test after tax prep firms dropped the ball
#79Earlier quoted context omitted.
Have you ever done your taxes? For individuals, it’s easier if you have a high income because many of the deductions and credits phase out and are capped by AGI. Dependent care FSA versus dependent care credits, student loan interest deductions, etc. Most of the questions the software asks you aren’t “Warren buffet” deductions.
If you have high w-2 cash income. Once you get into equity or business income, it starts getting convoluted again.
Once you get beyond W2 income, things get complex in a hurry. I don't think I have especially complicated income sources and deductions and I still end up with a half-inch sheaf of forms from my accountant every year. It's not actually a lot of work for me personally. I just need to make sure I've kept track of all the paperwork drifting in or downloaded and I have to write a fairly substantial check to my accountant.
Re: 13 States join the IRS direct-file test after tax prep firms dropped the ball
#80A value added tax on goods would be good, then we wouldn't have to file taxes at all. Or just get rid of federal income taxes all together like they did around 100 years ago.
Consumption is not the only way to levy taxes.