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How the Maker of TurboTax Fought Free, Simple Tax Filing

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

#181

Post by dmckeon »

jff wrote: post #133
mjn wrote: post #66

Earlier quoted context omitted.

Most Texas DMVs are hugely understaffed, I assume deliberately because they don't want to fund more staff, so the wait is generally long, like 2-3 hours long, and the facilities you're waiting in are old and poorly maintained. However, that's pretty TX-specific; TX generally underprovisions government services. The CA DMV is much nicer, and you can even book a specific time online!

The CA DMV's online booking is convenient, but it really becomes the only way to get service. I made an appointment for mid-afternoon to register my motorcycle. I was in and out in 15 minutes. When I had gone in 2 years ago to get my drivers license, I didn't know about making appointments. I spent 5 hours at the DMV that day.

For many CA DMV services, if one is a member of AAA, a AAA (CSAA) office can handle the process easily.

This convenience or a single roadside service call can make the annual fee worthwhile (but check first if they can/will tow/service a motorcycle!)

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

#182

Post by mjn »

jebblue wrote: post #177
mjn wrote: post #66

Earlier quoted context omitted.

Most Texas DMVs are hugely understaffed, I assume deliberately because they don't want to fund more staff, so the wait is generally long, like 2-3 hours long, and the facilities you're waiting in are old and poorly maintained. However, that's pretty TX-specific; TX generally underprovisions government services. The CA DMV is much nicer, and you can even book a specific time online!

You can renew your license in Texas online every other cycle, the only reason it's every other is they want you to come in to refresh you photo every decade, so make an appointment.

Yeah, I do it online when I can, but I had to go in in person in 2011, and it wasn't particularly pleasant. I didn't know you could make an appointment; when I asked at the time you couldn't. Seems like there is now some kind of "get in line online" feature, though it's not available at all locations: http://www.txdps.state.tx.us/administration/driver_licensing...

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

#183

Post by justin66 »

tjic wrote: post #159
ajross wrote: post #122

Earlier quoted context omitted.

No one pays penalties for simple mistakes. That's what FOX news tells you, but it's not true. We've made five-figure goofs on taxes in the past and a simple letter explaining the mistake (assuming it's an explainable mistake and you didn't get caught in actual attempted fraud) is enough to get the penalty waved.

> That's what FOX news tells you Downvoted for egregious politicking. Let's skip the drive-by attacks on FOX and MSNBC, dailykos and drudgereport ... unless they're relevant.

I can see where you're coming from but given some of the content of the original story it's not entirely irrelevant.

I actually do wonder a little what Grover Norquist's deal is here. I understand his politics (sort of) but I assume receiving a statement laying out the calculations the government is going to use against you could only be an advantage when strategizing how to reduce one's tax bill. That he'd be against it is odd.

Maybe he really wants the whole process to be as inconvenient as possible so people will sign on to some of his other ideas.

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

#184

Post by mpyne »

hnal943 wrote: post #120
sixothree wrote: post #97

Earlier quoted context omitted.

Let me guess, we should trust corporations?

What? This post criticized corporations (Jackson-Hewitt in particular). The point was that people need to take individual responsibility for their tax liability.

> The point was that people need to take individual responsibility for their tax liability.

There are people in the military who get married just to claim a higher housing allowance (this despite it being against the UCMJ). Yes, we should be individually responsible but it's not practical to actually expect that from people.

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

#185

Post by danso »

gyardley wrote: post #141
danso wrote: post #124

Earlier quoted context omitted.

> Once we have a tax code that's simple enough and a government that's competent enough to get think right How do you foresee this happening if we -- the government and the public -- maintain a status quo in which feasible optimizations are never pursued because hey, we have a private alternative that doesn't charge too much to do it? For the government to become more competent, the people have to demand reform. For…

I'm arguing that without these prerequisites, this 'optimization' isn't an optimization at all - it'll be a step backwards, because it'll just end up ripping people off. People certainly should demand reform, but not this particular reform at this particular time. People should absolutely demand a simpler tax code - I don't know about you, but I'm still holding out hope we'll see some tax reform in 2013. 'Competent g…

> Americans aren't Norwegians or Germans, and simply aren't good at large bureaucracy. Unless America starts subcontracting out its administration to the Swedes, better government is going to take either a change in American character or something smaller and less-centralized.

This is a strange assertion, as if Swedes had an innate gene that allowed them to be more adept when they joined public service. Let's assume that that's not true and it's an ability learned through environment and civic education...I'm arguing that that reaching this ideal situation of "good character" will require -- when it is possible -- to make interaction with the government more efficient. Else, you may end up in a situation in which citizens are so distrustful of the government that they never see the point of achieving good civic character. And then we never end up being as good as the Germans and the Swedes.

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

#186

Post by teamonkey »

eumenides1 wrote: post #106

Isn't there free options in the US? In Canada, we have StudioTax. http://www.studiotax.com/ It's free and on a donation basis. I switched from TurboTax to this and I'm really happy with it. I'm surprised there isn't a open-sourced free way to do taxes. That way we can address the tinfoil hat based worries of the government doing your taxes and have free and easy software.

I might do the same, having just filed last years' Canadian taxes with TurboTax. I didn't have a problem with TT but I do have a problem with Intuit's actions here.

Coming from the UK where it has been automated all my working life, I resent having to file my taxes each year. As others have said, the government has nearly all the information anyway.For anything else, then only short declaration forms should be necessary and not a full return.

I also don't like the lump sum return or payment if there's any discrepancy. In the UK the most common option is to have an adjustment to your tax code, which simply deducts more or less tax at source over the following tax year. You don't even need to give them your bank info.

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

#187

Post by smackfu »

gav wrote: post #21
k3n wrote: post #9

Earlier quoted context omitted.

They usually have a free version that is adequate for the most basic of returns, and then all others require you to purchase something in order to file through them. If you actually want the value-added services (such as the recommendations you mention), then you pay even more. The situation is a farce and a disgrace to our country; the pockets of a few are getting lined at the detriment of the many. Wait, are we dis…

The free version is just for Federal, you have to pay to file your state tax return. What I find insulting is having to pay to file my taxes, then having to pay sales tax on top of that.

What a lot of people don't realize is how easy state income tax is, and how a lot of states have gone to fully online forms. I think people assume it is as complicated as federal taxes, but our state, it's essentially just "take your federal gross income from the 1040, add a few things to it, then subtract a few deductions." The form and the worksheets is two pages.

So what I do is prepare the return in Turbotax, then print it, then file it electronically on the web for free. Fun thing is that Turbotax calculates the tax a dollar different than the state's web site.

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

#188

Post by polyfemos »

wilfra wrote: post #61
JimWestergren wrote: post #19

Stats about tax declaration from Sweden last year: Via internet: 19,9% Via PIN code: 20,1% Via telephone: 12,5% SMS: 6,6% Smartphone app: 2,3% Total: 60,4% filed electronically The rest sent in papers via the mail. (the old method) Source: http://www.skatteverket.se/download/18.71004e4c133e23bf6db80... Personally I have filed via the internet since 2005 both private and for my company.

SMS tax filing? #want

It really is that good - as a Swede, you get your prepared statement (and unless you've done a major or irregular thing in the past year, like buying a house, or trading stock on an exchange outside the European Union) that prepared statement is correct. Part of the statement says "If you agree without modifications, just text 1234234 to the number 1234454".

And a few seconds later you get a reply SMS that confirms that your taxes are indeed filed for this year.

Done. Simple. And awesome :)

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

#189

Post by niggler »

greyboy wrote: post #68
niggler wrote: post #28

Earlier quoted context omitted.

I think many of us here don't get paid by W2 or by 1099. We are compensated in different ways which don't require those types of filings (e.g. K1), in which case we do need to fill out forms.

I can't speak specifically for the group here, but the vast majority of US taxpayers by a large margin _are_ compensated via W-2 or 1099. Isn't that who it should be optimized for, rather than outliers or exceptions?

To clarify, the vast majority of US taxpayers that are compensated via W-2 or 1099 are eligible to file under 1040A or 1040EZ, both of which are much simpler and easier to deal with (and, incidentally, all of the major tax preparers like H&R Block and Intuit offer free versions for those use cases).

The portion of that cohort that file 1040 (generally those that make over 100K and have situations that make itemized filing more efficient than taking standard deductions) is pretty small.

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

#190

Post by justin66 »

gyardley wrote: post #86

Yes, TurboTax is being rather transparently venal, but that doesn't mean they're wrong. I doubt the American government is competent enough to get tax calculations right, and I suspect they're hungry enough for revenue to make all their default assumptions in their favor. At least that's been my experience with every state and federal tax authority I've dealt with for the past half-decade or so. Once we have a tax co…

> I doubt the American government is competent enough to get tax calculations right, and I suspect they're hungry enough for revenue to make all their default assumptions in their favor.

That is the way it works NOW. With the described changes the difference is that you would hear about it earlier rather than later.

Today, the IRS absolutely will send you a letter with a bill a couple of years after you pay your taxes if your calculations don't match theirs. For an ordinary tax bill getting your interpretation on paper first isn't really a big advantage.

> Once we have a tax code that's simple enough

I wonder if simplicity isn't overrated, particularly in this age of computers and so on. It's not like we have to calculate everything with an abacus. On the other hand, I've noticed that the tax plans that are touted by political groups as being simple would generally cost me money to the benefit of people who make more than I do. This holds true pretty close to 100% of the time.

I don't value simplicity THAT highly.

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