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Free IRS-run tax filing pilot to be available in 13 states

irs.gov

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Re: Free IRS-run tax filing pilot to be available in 13 states

#211
post #78

To clarify: This is not a full launch, it's just a "limited pilot" that will only be available in 13 states in 2024. Arizona California Florida Massachussetts Nevada New Hampshire New York South Dakota Tennessee Texas Washington Wyoming Someone please correct me if I'm wrong.

AZ, CA, FL, TX, NY alone gets you to about 120m people. This is a pretty big first test.

> AZ, CA, FL, TX, NY alone gets you to about 120m people.

Not quite; ~71.8 million constrained to just individual income tax filings based on 2022 stats[1]. Excludes estate, corps, gift, tax-exempt orgs and excise, but includes both paper and electronic filings.

  AZ    4,197,918
  CA   23,209,479
  FL   14,563,047
  TX   16,750,330
  NY   13,115,425
  ---------------
       71,836,199
  ===============
  US  204,434,236
Surely, only a subset will qualify.

[1] https://www.irs.gov/statistics/soi-tax-stats-state-data-fy-2...

Re: Free IRS-run tax filing pilot to be available in 13 states

#212
post #142

Earlier quoted context omitted.

Jackson Hewitt Online isn't terribly pricey (Cost me a total of about $25 last year), so that's what I've used for the last two years. Keep in mind that Jackson Hewitt Online is a different thing that the vanilla Jackson Hewitt Still, I kind of feel annoyed that I have to pay any amount of money to do something legally required of me to avoid going to jail. I think the IRS should provide a free option for filing, and…

You can fill out the forms manually for free? It just sucks.

It's not that it sucks, it is error prone. Completely ignore a knowledge of tax law for a moment. Data has to be copied from one form to another, copied for calculation (whether you do it on paper or with a calculator), copied from one line to another, and finally copied from the form into the government's tax software. Each step produces the potential for error. Properly written software does not have the same potential for error.

Re: Free IRS-run tax filing pilot to be available in 13 states

#213

Earlier quoted context omitted.

> Interest of $1,500 or less The only 1099 that most people will get, even with meaningful savings, meets this description.

"Gig work" typically results in 1099 rather than W-2 income, and is common.

Gig work is not common[1]. It just gets disproportionate attention.

1. https://www.pewresearch.org/internet/2021/12/08/the-state-of...

Re: Free IRS-run tax filing pilot to be available in 13 states

#215
post #57

Declaring taxes in Brazil is free, but it's hard work (if you dabble with stocks, for instance). For 1/5 of the value of the minimum wage you can hire a accountant that does it for you. I think the service is worth it's price. All i have to do is send them a bunch of documents and they make sense out of it.

This is the way it should be here in the US, and this is the way it works in a lot of countries. The tragedy is, we all know it, and we all want it to change, but there are a few people who don't want it to change, and they're empowered to make it that way. I hope this IRS effort works out.

> The tragedy is, we all know it, and we all want it to change, but there are a few people who don't want it to change, and they're empowered to make it that way.

It's almost as if you don't actually live in a democracy.

Re: Free IRS-run tax filing pilot to be available in 13 states

#216
post #109

Earlier 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/

Jackson Hewitt Online isn't terribly pricey (Cost me a total of about $25 last year), so that's what I've used for the last two years. Keep in mind that Jackson Hewitt Online is a different thing that the vanilla Jackson Hewitt Still, I kind of feel annoyed that I have to pay any amount of money to do something legally required of me to avoid going to jail. I think the IRS should provide a free option for filing, and…

[deleted]

Re: Free IRS-run tax filing pilot to be available in 13 states

#217
post #213

Earlier quoted context omitted.

"Gig work" typically results in 1099 rather than W-2 income, and is common.

Gig work is not common[1]. It just gets disproportionate attention. 1. https://www.pewresearch.org/internet/2021/12/08/the-state-of...

Your [1] shows 4% of Americans currently engaged in gig work, and 16% of Americans having ever done gig work. What's your threshold for 'common'?

Re: Free IRS-run tax filing pilot to be available in 13 states

#218

Will this system integrate with all the banks, exchanges, registered businesses, and etc? I find that 90% of the time spent on tax filing is gathering data. Turbotax does offer some integration, but the experience was not necessarily smooth.

Is a CSV not a good API? Most systems will allow you to export data in a columnar CSV format. Being able to then import these would solve the problem. "Swivel chair handoff"

Re: Free IRS-run tax filing pilot to be available in 13 states

#219
post #109

Earlier 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/

Jackson Hewitt Online isn't terribly pricey (Cost me a total of about $25 last year), so that's what I've used for the last two years. Keep in mind that Jackson Hewitt Online is a different thing that the vanilla Jackson Hewitt Still, I kind of feel annoyed that I have to pay any amount of money to do something legally required of me to avoid going to jail. I think the IRS should provide a free option for filing, and…

[deleted]

Re: Free IRS-run tax filing pilot to be available in 13 states

#220
The description of this makes me skeptical. People have been asking for a system where the IRS does your taxes for your, sends you the draft, and you add in any deductions, etc.

They already do your taxes in the background to confirm your return is correct, so this is not significantly more work for them (in fact, it is probably less work).

In some countries with such a system, unless you intentionally lie, you are absolved of legal liability if the government screws up your taxes.

The article makes it sound like they are building a crappy turbo tax clone instead.

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