Earlier quoted context omitted.
I gave FTuasa a go after seeing it mentioned here a lot. Unfortunately it seems the investment part is very manual compared to TurboTax. I have a couple of robotrader , brokerage accounts etc. on TurboTax it’s a few clicks and that’s imported, FTusa is tediously transcribing numbers off dozens of forms that I have no idea if I’m doing it right. I reluctantly gave money to TT again.
Relative a of FreeTaxUSA employee here. I'll let her know. She cares about UX.
Free IRS-run tax filing pilot to be available in 13 states
171–180 of 350 posts
Re: Free IRS-run tax filing pilot to be available in 13 states
#172I always thought it was weird that something so complex, easy to mess up, and important to the government would require a third party external dependency. For a while towards the end it really kinda became a shining example of late stage capitalism. You, for all intents and purposes, NEEDED to do business with one of these handful of entities or you are in violation of the law. If you can't afford that you'll have to…
You have form 1040, which gives you a run-down of every possible form you need to reference. You fill out the boxes with the info it wants, then you go down the list, filling in each number box that applies to you: Got W-2s? Probably, attach 'em and sum them up. See a phrase you don't recognize? Read the relevant instructions. Got interest? Time to fill out a Schedule B, which itself references some other forms, and attach some 1099s. Sell any investiments? Schedule D, which might have you fill out an 8949 (strictly speaking, you can skip this one if all your investments have declared basis on your 1099-Bs that you received from your brokerage). If you think you might have more deductions than the standard, there's Schedule A, but for most people you can safely skip that one and take the standard. Taxable income determined!
Then the taxes section contains a bunch of forms that apply to you if you're in certain situations, maybe you have a kid (Schedule 8812), the instructions are very helpful in telling you what you need to care about here. The first box is important, it includes your income tax which the instructions will tell you how to calculate.
Sum up your witholdings from the W-2s and 1099s to figure out how much you've already paid the government, then figure out if you owe the fed money or they owe you.
Sign, stick in an envelope, and send. Whole process takes a couple hours the first time, when you need to learn what you actually need to fill out, and in future years less than 2 hours.
If you can read at a 6th grade level and do basic addition and subtraction you can fill out your tax forms.
Re: Free IRS-run tax filing pilot to be available in 13 states
#173Earlier quoted context omitted.
Most of the inefficiency comes from the implementation rather than the policy, and the use of an income tax rather than a consumption tax. If you had a national VAT instead of a national income tax and the government wanted to subsidize e.g. solar panels, they would simply exempt solar panels from VAT and individuals wouldn't have to file anything, they would just pay less for solar panels because the seller wouldn't…
Everything you're saying sounds great, but afaict VAT doesn't have the power to rework a society the way income tax does: * Marriage is incentivized via the advantageous married-filing-jointly option. * Donations are deductible. * Employers are incentivized to replace part of wages with benefits packages including health insurance, which incentivizes people to not be unemployed. (I'm not saying any of this is a good…
Do X? Get Y!
instead of:
Do X? Fill out 3 forms, cross-reference to 2 others, be eligible for a tax credit if you earned enough, file ....
Re: Free IRS-run tax filing pilot to be available in 13 states
#174If an entire industry can be killed by a public service, it probably didn't deserve to exist in the first place.
There is a good chance it sucks and is wonky as hell, making the value proposition of proprietary solutions even more attractive.
It doesn't to suck.
Re: Free IRS-run tax filing pilot to be available in 13 states
#175This is only tangentially-related, but I know I'm asking the right audience: I switched, blissfully, away from Quicken/Quickbook/Xero/all that heavy crap to very simple and elegant textfile-based accounting (ledger/hledger) and it's been the best and most flexible accounting experience I've ever had. I finally feel completely in control of my companies' books. Is there an equivalently-blissful tax-filing software/ser…
With Beancount, I use metadata tags in my chart of accounts for the tax form and line number, e.g. 2017-01-01 open Expenses:GA:Insurance USD tax_form: "1040 Schedule C" tax_line: "15" tax_description: "Insurance (other than health)" I can then report my transactions based on the tax_form and tax_line attribute, which gets me much of the way there. I still have to do the math on derived lines on the forms, but this at…
Re: Free IRS-run tax filing pilot to be available in 13 states
#176Earlier quoted context omitted.
Relative a of FreeTaxUSA employee here. I'll let her know. She cares about UX.
This is a complaint on Reddit during tax time every single year. I would be surprised if no one at FreeTaxUSA heard of it.
Anyway, I let her know.
Re: Free IRS-run tax filing pilot to be available in 13 states
#177Earlier quoted context omitted.
On the other hand, that's a whole lot of people -- probably almost everyone who is not a homeowner, and quite a few who are.
That list suggests that if you have a 1099 (which I assume is most people with meaningful savings), you probably won't qualify.
The only 1099 that most people will get, even with meaningful savings, meets this description.
Re: Free IRS-run tax filing pilot to be available in 13 states
#178Earlier quoted context omitted.
This is not tax advice: If your brokerage reports all of your trades to the IRS, which they likely are, then you can just enter a summary. You don't need to grant access to your outside accounts and import anything.
Right, I've always just entered the summary. However, that process is manual and requires scouring the forms for correct info. With TurboTax, it lets you integrate into the brokerage and just sucks down the info.
Re: Free IRS-run tax filing pilot to be available in 13 states
#179“Free vs Turbotax”
and everyone with a CPA just has to pretend they dont do that
Re: Free IRS-run tax filing pilot to be available in 13 states
#180Earlier quoted context omitted.
FWIW, FreeTaxUSA[0] is much cheaper than Intuit and has worked great for me the past few years. I find it slightly easier than TurboTax, in fact. [0] https://www.freetaxusa.com/
sorry... cheaper? surely a place called free tax usa would be free?