[HN Gopher] FTC sues Intuit for its deceptive TurboTax "free" fi...
       ___________________________________________________________________
        
       FTC sues Intuit for its deceptive TurboTax "free" filing campaign
        
       Author : Kesseki
       Score  : 1490 points
       Date   : 2022-03-29 17:53 UTC (1 days ago)
        
 (HTM) web link (www.ftc.gov)
 (TXT) w3m dump (www.ftc.gov)
        
       | flerchin wrote:
       | Freetaxusa is so great.
        
         | rhexs wrote:
         | Love the product as well. Great pricing, handles my complicated
         | return fine. I do miss Turbotax auto importing everything, but
         | doing it manually helps me understand what I'm doing better.
        
         | CogitoCogito wrote:
         | Do you know if Freetaxusa supports declaring international
         | income/taxes?
         | 
         | Edit: I looks like they don't :(
         | 
         | Items Not Supported                   Foreign employment income
         | (Form 2555)
         | 
         | https://www.freetaxusa.com/supported_forms.jsp
        
       | msie wrote:
       | And I just read this story about gun-tracing:
       | https://www.gq.com/story/inside-federal-bureau-of-way-too-ma...
       | 
       | Lobbyists have way too much power.
        
       | [deleted]
        
       | belval wrote:
       | I know that ship has sailed, but I really wish politicians would
       | go back to making promises that have an impact on everyone like
       | abolishing tax fillings.
       | 
       | It might be different in the US, but in Canada I file my taxes
       | using the CRA's data directly. TurboTax even fetches it directly
       | from their website. What's the point? They have my T4, my T2202
       | (studies) and everything else. Just send me a letter telling me
       | how much money I owe/I am owed and that's it.
        
         | crooked-v wrote:
         | In the US, the Republican Party has a history of intentionally
         | pushing for cumbersome tax filing as part of encouraging people
         | to hate the idea of taxes in general.
        
           | throwawayboise wrote:
           | That's why I do my taxes manually and mail them in. I want it
           | to be as painful as possible.
        
             | imtringued wrote:
             | At some point the tax system will be so painful that filing
             | your taxes manually will be considered to be as severe as
             | physical assault.
        
             | abledon wrote:
             | haha, have it done all automatically in SimpleTax, then
             | download the PDFs, run a custom character-to-messy-
             | handwriting transformer on all filled fields, then print
             | out the paper forms and mail them in
        
           | belval wrote:
           | I don't think it's a Republican thing, the Liberal party and
           | the NPD in Canada are both left-leaning and they have a
           | majority yet they aren't pushing for this.
           | 
           | Pretty sure it's just run-of-the-mill lobbying and corruption
           | unfortunately. A typical "think of the jobs!" type of thing.
        
             | dwohnitmok wrote:
             | What parent is referring to is not just lack of pushing for
             | it, but _active_ campaigning against automatic filing. Not
             | a  "think of the jobs" but "automatic filing is
             | intrinsically bad."
             | 
             | See e.g. http://reason.org/files/ba148cd5babdda39f9ebb43b33
             | 6b01d4.pdf
        
             | monetus wrote:
             | I wouldn't say its _not_ a republican thing, just also a
             | many other people /groups thing. You're right, just wanted
             | to emphasize that.
        
             | heavyset_go wrote:
             | Republicans and the Liberal party in Canada are both
             | neoliberal when it comes to their economic policies, they
             | mostly only diverge on social issues and social services.
        
             | slavik81 wrote:
             | It kinda already had been addressed. SimpleTax was released
             | as donationware and the CRA introduced NETFILE and
             | Autofill. Filing a return today is way easier than in, say,
             | 2011. Buying TurboTax has been unnecessary for a decade.
        
             | stainforth wrote:
             | Your counter to is that the politicians in a different
             | country with an entirely different governmental evolution
             | didn't arrive at the same thing?
        
           | justin_oaks wrote:
           | I've heard that too. And the idea is disgusting to me. I
           | assume those who genuinely espouse this idea are those who
           | are rich enough to have an accountant do all their taxes for
           | them.
           | 
           | Is it really necessary to "encourage" me to dislike taxes? Is
           | not the money leaving my pocket sufficient?
           | 
           | I've also heard Republicans claiming that IRS-provided tax
           | bills/refunds is equivalent to a tax. I guess the implication
           | is that the government is going to intentionally charge you
           | more.
           | 
           | Having to use TurboTax or someting like it is equivalent to a
           | tax, but it's paid to a corporation instead of the
           | government. If I had to choose between my money going to the
           | government and Intuit, I'd choose the government.
        
         | jeffwask wrote:
         | Intuit and HR Block spend way too much on US lobbying for that
         | to change. The first step has to be repealing Citizen's United.
         | 
         | https://www.propublica.org/article/inside-turbotax-20-year-f...
        
           | anamax wrote:
           | > The first step has to be repealing Citizen's United.
           | 
           | Citizen's United was a group that made a political-advocacy
           | movie and the FEC wanted to treat it as regulated political
           | activity.
        
             | UncleMeat wrote:
             | It was. And the consequence of this ruling was nearly
             | unlimited amounts money being spent on the reelection
             | campaigns of various lawmakers by corporations, with the
             | obvious intent being to install friendly legislators.
        
               | anamax wrote:
               | Yup, every major newspaper and TV/Cable network is a
               | corporation.
               | 
               | If the NYT can push candidates, why not Sears?
        
               | lokar wrote:
               | Sears is free to say what they want on their website or
               | distribute leaflets. That's not the same thing as
               | donating cash.
        
               | anamax wrote:
               | The "work product" of CU was their movie.
               | 
               | Is it okay with you if a corporation donates money to
               | Roger Moore to support the production of a documentary
               | that said corporation agrees with?
               | 
               | Does it depend on whether said documentary advocates
               | for/against a candidate?
               | 
               | How do we define "advocate"? (Is saying "Fred took money
               | from Mexican drug lords" advocacy?)
        
           | wnevets wrote:
           | The sad thing is its not even a lot of money if you consider
           | how much profit they make. Politicians are surprisingly cheap
        
             | savanaly wrote:
             | Every time I see this issue brought up I think about how if
             | you sum up all the money spent every year on US politics,
             | including personal donations, industry lobbying, and the
             | budgets of think tanks, you get a noticeably smaller number
             | than the amount of money spent every year on almonds. [0]
             | It always makes me question if the lobbying is really the
             | cause of the tax system being the way it is. Or is the
             | money just to grease the wheels and slightly alter the
             | course of whatever was going to happen anyways due to a
             | multitude of complicated factors?
             | 
             | [0] https://slatestarcodex.com/2019/09/18/too-much-dark-
             | money-in...
        
             | jeffwask wrote:
             | True. Large on people scale not corporation scale which is
             | why treating corporations like people is a terrible idea.
        
               | wnevets wrote:
               | maybe the rest of us should start a gofundme so we can
               | pool together our funds and buy a few politicians.
        
               | autoexec wrote:
               | American politicians can be bought off very cheaply by
               | corporations, but the minute people try to crowd-fund
               | bribes to get actual representation in government
               | corporations will just start to offer more. Some
               | companies and industries have more wealth than entire
               | nations at their disposal. If it comes down to a bidding
               | war between you and Google you will lose. If paying out a
               | little more to congressmen will keep an industry making
               | even greater profits they'll do it.
               | 
               | The only real fix is actual accountability for lawmakers.
               | It means massive amounts of oversight to catch those who
               | accept bribes in any forms (including "campaign
               | contributions") and it means making it simple for the
               | people to vote out anyone who refuses to represent their
               | interests.
               | 
               | Right now, bribery is effectively legal, there is zero
               | accountability and between the two party system,
               | gerrymandering, and voter suppression even if you manage
               | to get someone out of office you're probably not going to
               | like the person you're forced to vote in to replace them.
               | We're a very long way from fixing the problem and all of
               | the people in power have zero incentive to start getting
               | us there because they profit off the system being broken.
        
               | medvezhenok wrote:
               | A neat solution is actually public campaign financing. We
               | currently say that you can give $3 towards public
               | financing on your tax return when you file - why not make
               | that $100?
               | 
               | Collectively, people have a lot more money than
               | corporations do - the trouble is organization. But
               | basically flooding the system with so much money that
               | corporate bribery becomes insignificant is the other
               | option to banning it
        
               | KerrAvon wrote:
               | It's too late. Citizens United means corporations and the
               | ueber-wealthy can do whatever they want. McCain-Feingold
               | represented actual progress in this area, and it's gone
               | now. We are going to witness heavy fascism in the US, and
               | I wish I knew what to do about it. Other than somehow
               | prevent Peter Thiel from escaping to New Zealand, since
               | it's partially his fault and he should have to reap what
               | he sowed.
               | 
               | (Tangentially, Feingold was one of the smartest people in
               | the Senate. Wisconsin voted him out in favor of Johnson,
               | one of the stupidest people in the Senate -- the only
               | thing that keeps him from the top spot is just the
               | fuckload of really dumb other Republican senators.)
        
               | munk-a wrote:
               | This has actually been done rather often in the past, you
               | can start a donor driven PAC that can compete with
               | corporate lobbyists with crowdfunding. It's generally
               | quite a bit cheaper too because while we all love to
               | criticize politicians for only listening to monied
               | interests if they can raise some campaign funds _and_ get
               | brownie points for their voting base they 're happy to
               | dramatically spurn the corporate funding they'd otherwise
               | accept with open arms.
               | 
               | Honestly though, actually reaching out to your
               | representatives and talking to them is far more effective
               | than most people assume.
        
               | rch wrote:
               | I'm considering starting a 501(c)(4) to advocate for
               | state level legislation, but I wonder if something like a
               | PAC might be more effective.
        
           | istjohn wrote:
           | Take 5 minutes to complain to your elected representatives
           | every time you file taxes.
        
             | ratsmack wrote:
             | The only people that your representative listens to is the
             | ones that fill their political war chest with a lot of
             | money.
        
               | calsy wrote:
               | So how does someone remain elected if they don't listen
               | to their constituents?
        
               | thebigman433 wrote:
               | Generally by massively outspending opponents in the
               | primary.
        
               | [deleted]
        
               | refurb wrote:
               | No, this is just the cynic HN perspective and an excuse
               | to do nothing about it.
        
               | thebigman433 wrote:
               | I dont think its cynical at all, as someone who has done
               | some work for political campaigns, follows them closely,
               | and studies them. Incumbents keep power within their own
               | party by generally massively outspending their primary
               | opponents, making it extremely rare for them to lose in
               | the primary. The only real exceptions to this recently
               | have been Dem stronghold incumbents losing to
               | progressives.
               | 
               | After that, its just whether or not the incumbent can
               | defend against the opposition party in the general
               | election. Primaries are generally where the biggest
               | changes are made, and are also where its the hardest to
               | oust the incumbent.
               | 
               | Its not cynical, nor an excuse.
        
               | PaulDavisThe1st wrote:
               | If true, then we need to convince those people to
               | complain about this. And of course, we may actually be
               | some of those people.
        
           | revscat wrote:
           | CU will never be peacefully repealed.
        
             | ineedasername wrote:
             | _peacefully_
             | 
             | Well, corporations are people, people have the right to
             | bear arms, and the country was founded on the idea that if
             | you really really don't like your government, violence is
             | an appropriate response to change it. Of course the
             | Constitution pulled the ladder up behind the founding
             | fathers on that bit of political philosophy, but in recent
             | years I've heard some rhetoric citing the Declaration as
             | inspiration for the path they should take now. Corporate
             | personhood adds an interesting twist to things, especially
             | considering that Alphabet or Apple could secede and have a
             | larger GDP than many countries. Alphabet might quickly get
             | labelled a hostile foreign power for all their spying.
             | Apple might start a trade war with their extortionate
             | tariffs but we'd still probably have reasonable diplomatic
             | relations with them.
             | 
             | Maybe 200+ years with only one major civil war is a good
             | record under these conditions, and maybe the next one will
             | have official corporate sponsors.
        
         | toast0 wrote:
         | > I know that ship has sailed, but I really wish politicians
         | would go back to making promises that have an impact on
         | everyone like abolishing tax fillings.
         | 
         | I'm not a fan of Trump, but the Trump tax changes made it so it
         | doesn't make sense for me to do itemized deductions, because I
         | won't beat the standard deduction unless I have a lot more
         | things to deduct than I normally do, which greatly simplifies
         | my tax filing and record keeping. Since I know I won't be
         | deducting donations, I don't need a receipt when donating them,
         | and that saves paperwork.
        
         | xtracto wrote:
         | In Mexico if you are an average employee earning less than
         | around $50000 usd (I.e. most workers), your employer can "do"
         | your taxes (very simple, they report what they have withheld
         | from you).
         | 
         | If you have some amounts you want to regain from losses, etc.,
         | you can still do your taxes manually.
         | 
         | That means logging into the free MEX IRS platform, which shows
         | all your tax info preffilled. Most likely the stuff you want to
         | input is already there (all invoices in mexico are signed by
         | private/public keys through the IRS system).
         | 
         | So you just enter your bank account to get your money back. Or
         | get your reference to pay your taxes.
         | 
         | The system is really beautiful.
        
           | LinuxBender wrote:
           | What would be required for the US to adopt this solution?
        
             | lupire wrote:
             | Congress passes a law to amend the Free File program.
             | 
             | https://www.irs.gov/filing/free-file-do-your-federal-
             | taxes-f...
        
               | LinuxBender wrote:
               | Does this system pre-populate the forms with everything
               | the IRS already knows about me and then I just modify the
               | things that are incorrect? Can people upload their tax
               | documents from all the financial institutions in some
               | standard format that automatically figures out what form
               | to use and populates maybe 95% of the fields and marks
               | the empty required fields with yellow? I ask because I
               | have an id.me/IRS login and they do not appear to have
               | this data until I give it to them.
               | 
               | This is the system I am looking for. I think it would
               | make the lives of the IRS employees better and would save
               | me time and money.
        
           | quickthrower2 wrote:
           | UK has PAYG tax, Australia is similar, if you have a job,
           | perhaps some shares it is zero work. No max salary to worry
           | about.
        
         | goosedragons wrote:
         | I missed including my T2202 one year and thought I owned a ton.
         | They then sent me a letter saying lol, no we owe you. So
         | pointless.
         | 
         | What annoys me now is that if you want a paper booklet you have
         | to request one in advance if you did not use one previously but
         | otherwise there is no free to everyone option to do it. You
         | either request a paper booklet or use 3rd party software.
        
       | dang wrote:
       | The saga continues:
       | 
       |  _Ask HN: How does TurboTax get away with dark patterns?_ -
       | https://news.ycombinator.com/item?id=30409523 - Feb 2022 (122
       | comments)
       | 
       |  _Filing Taxes Could Be Free and Simple. But H &R Block and
       | Intuit Lobby Against It (2017)_ -
       | https://news.ycombinator.com/item?id=30185484 - Feb 2022 (18
       | comments)
       | 
       |  _Killing TurboTax_ -
       | https://news.ycombinator.com/item?id=26330584 - March 2021 (662
       | comments)
       | 
       |  _Show HN: ustaxes.org - open-source tax filing webapp_ -
       | https://news.ycombinator.com/item?id=26138446 - Feb 2021 (219
       | comments)
       | 
       |  _TurboTax Tricked You into Paying to File Your Taxes (2019)_ -
       | https://news.ycombinator.com/item?id=26102695 - Feb 2021 (306
       | comments)
       | 
       |  _TurboTax's 20-Year Fight to Stop Americans from Filing Taxes
       | for Free (2019)_ - https://news.ycombinator.com/item?id=26060414
       | - Feb 2021 (199 comments)
       | 
       |  _FTC Is Investigating Intuit over TurboTax Practices_ -
       | https://news.ycombinator.com/item?id=24409093 - Sept 2020 (194
       | comments)
       | 
       |  _IRS Reforms Free File Program, Drops Agreement Not to Compete
       | with TurboTax_ - https://news.ycombinator.com/item?id=21923220 -
       | Dec 2019 (448 comments)
       | 
       |  _IRS Tried to Hide Emails That Show Tax Industry Influence over
       | Free File Program_ -
       | https://news.ycombinator.com/item?id=21393758 - Oct 2019 (188
       | comments)
       | 
       |  _TurboTax's 20-Year Fight to Stop Americans from Filing Taxes
       | for Free_ - https://news.ycombinator.com/item?id=21281411 - Oct
       | 2019 (447 comments)
       | 
       |  _TurboTax to charge more lower-income customers_ -
       | https://news.ycombinator.com/item?id=20461169 - July 2019 (81
       | comments)
       | 
       |  _Congress Scraps Provision to Restrict IRS from Competing with
       | TurboTax_ - https://news.ycombinator.com/item?id=20119916 - June
       | 2019 (18 comments)
       | 
       |  _TurboTax Uses a "Military Discount" to Trick Troops into Paying
       | to File Taxes_ - https://news.ycombinator.com/item?id=19994118 -
       | May 2019 (42 comments)
       | 
       |  _Listen to TurboTax Lie to Get Out of Refunding Overcharged
       | Customers_ - https://news.ycombinator.com/item?id=19870242 - May
       | 2019 (44 comments)
       | 
       |  _TurboTax and H &R Block Saw Free Tax Filing as a Threat_ -
       | https://news.ycombinator.com/item?id=19810981 - May 2019 (143
       | comments)
       | 
       |  _TurboTax Hides Its Free File Page from Search Engines_ -
       | https://news.ycombinator.com/item?id=19758126 - April 2019 (262
       | comments)
       | 
       |  _TurboTax Uses Dark Patterns to Trick You into Paying to File
       | Your Taxes_ - https://news.ycombinator.com/item?id=19718284 -
       | April 2019 (274 comments)
       | 
       |  _Congress Is About to Ban the US Government from Offering Free
       | Online Tax Filing_ -
       | https://news.ycombinator.com/item?id=19613725 - April 2019 (696
       | comments)
       | 
       |  _How the Maker of TurboTax Fought Free, Simple Tax Filing
       | (2013)_ - https://news.ycombinator.com/item?id=19392673 - March
       | 2019 (253 comments)
       | 
       |  _H &R Block and Intuit Lobby Against Free and Simple Tax Filing
       | (2017)_ - https://news.ycombinator.com/item?id=18956883 - Jan
       | 2019 (190 comments)
       | 
       |  _Would You Let the I.R.S. Prepare Your Taxes? (2015)_ -
       | https://news.ycombinator.com/item?id=17751383 - Aug 2018 (424
       | comments)
       | 
       |  _Why I 'm boycotting TurboTax this year_ -
       | https://news.ycombinator.com/item?id=16844458 - April 2018 (23
       | comments)
       | 
       |  _H &R Block and Intuit Lobbying Against Simpler Tax Filing
       | (2017)_ - https://news.ycombinator.com/item?id=16841449 - April
       | 2018 (232 comments)
       | 
       |  _H &R Block and Intuit Are Lobbying Against Making Tax Filling
       | Free and Easy_ - https://news.ycombinator.com/item?id=13922482 -
       | March 2017 (234 comments)
       | 
       |  _How the Maker of TurboTax Fought Free, Simple Tax Filing
       | (2013)_ - https://news.ycombinator.com/item?id=13853150 - March
       | 2017 (439 comments)
       | 
       |  _TurboTax Takes Aim at Smaller Rival in Fight for Filers_ -
       | https://news.ycombinator.com/item?id=11150694 - Feb 2016 (87
       | comments)
       | 
       |  _Would You Let the I.R.S. Prepare Your Taxes?_ -
       | https://news.ycombinator.com/item?id=9381437 - April 2015 (150
       | comments)
       | 
       |  _Would You Let the I.R.S. Prepare Your Taxes?_ -
       | https://news.ycombinator.com/item?id=9380232 - April 2015 (124
       | comments)
       | 
       |  _Filing taxes: It shouldn 't be so hard_ -
       | https://news.ycombinator.com/item?id=5488084 - April 2013 (56
       | comments)
       | 
       |  _How the Maker of TurboTax Fought Free, Simple Tax Filing_ -
       | https://news.ycombinator.com/item?id=5443203 - March 2013 (330
       | comments)
        
       | isolli wrote:
       | In Europe (in most countries as far as I can tell), electronic
       | filing is administered by the government, and it's easy to use
       | (often prefilled for simple situations). As mentioned in the
       | article, in the US, electronic filing is offered for free only to
       | taxpayers below a certain income threshold, and the service is
       | offered by private companies. They often pay themselves back with
       | tax advances at usury rates. I can't help but think that it is
       | another example of how the US tax system is beholden to private
       | interests.
        
       | anm89 wrote:
       | I wouldn't say I usually get excited about something a federal
       | regulator does but I'll make an exception for this one.
        
       | gpm wrote:
       | Docket for the case:
       | https://www.courtlistener.com/docket/63193711/federal-trade-...
       | 
       | Dang - it might be nice to include this in the "Related" comment
       | pinned to the top, it's just the "level up in the filesystem"
       | above the courtlistener link you already have in it.
        
       | 41b696ef1113 wrote:
       | Everyone should listen to this Planet Money episode [0] going
       | into some of the politics surrounding making taxes easier.
       | 
       | [0]
       | https://www.npr.org/sections/money/2019/04/03/709656642/epis...
        
       | Arubis wrote:
       | Good. Fuck them and their predatory business model.
       | 
       | I know this is where we're supposed to decry the system of which
       | this is symptomatic, and talk about campaign finance and such.
       | And all that stuff is true, sure. But Intuit has been such a
       | consistently abusive actor that they're normalizing regulatory
       | capture, with enormous financial, time, stress, and legal
       | repercussions for the entire population.
       | 
       | Seriously, fuck them.
        
       | a1371 wrote:
       | Intuit is one of the few companies that I don't hear any good
       | things about them. They always do something shady, last one I
       | recall was sharing employee salary info with Equifax.
       | 
       | That's why despite my bookkeepers protests, we moved to another
       | accounting service and when they bought MailChimp I pulled my
       | whole company out of that too.
       | 
       | I understand workplace is not always a place for activism, but I
       | could switch with reasonable effort and it made me feel good not
       | to fund this sort of behavior.
        
       | mywittyname wrote:
       | I found out from a friend that she paid $600 to have her taxes
       | done because (presumably) she falls for the dark patterns that
       | TurboTax uses. She's a low paid service worker whose tax return
       | can probably be done for free. And it is a sizable portion of her
       | income because of things like Earned income tax credits, child
       | tax credits, etc.
       | 
       | Fuck these companies.
        
         | ngokevin wrote:
         | The government has enough information to process the taxes for
         | most of us or at least publicly make it super easy. TurboTax
         | just lobbies the government to not do so.
        
           | [deleted]
        
           | lern_too_spel wrote:
           | Contact your congressperson and encourage others to do so
           | too. Also contact their opponent in the upcoming election to
           | make it a campaign issue.
        
             | ngokevin wrote:
             | I actually did pour blood and sweat to a campaign that did
             | have this as one of their policies. I don't think this can
             | be solved until lobbyist money and the Senate is fixed.
             | Even if there's 90% support for an issue, politicians
             | follow the money.
        
           | tombert wrote:
           | About two weeks ago, I got a letter from the IRS telling me
           | that I owe an extra eight-thousand dollars from my 2020
           | return, with a $1000 fine and $200 interest as a result. [1]
           | 
           | I'm not mad about owing the money, but what annoys me is if
           | they have enough information to know that I underreported,
           | then why am _I_ part of this equation to begin with? Clearly
           | they have enough of my tax data to know I screwed up, so why
           | don 't they just send me a bill once a year? I don't see why
           | Intuit (or HR Block or TaxAct or Jackson Hewitt etc) need to
           | be part of this transaction at all.
           | 
           | [1] It was an honest mistake on my end, I forgot to report a
           | sizeable stock sale I did in 2020.
        
             | jaguar1878 wrote:
             | As others have noted, the IRS doesn't know everything, and
             | some things may be to your advantage to report to them.
             | They could send you a bill and ask you to fix it, but many
             | people wouldn't know where to look to find mistakes.
             | 
             | For example: RSUs and NQSOs (employee stock grants) are in
             | my experience handled extremely poorly by default. If I
             | have RSUs vest when the stock is worth $10 a share, then I
             | pay income tax that year based on income of ($10 x share-
             | count). If I sell those shares later on, my brokerage
             | reports to the IRS either: unknown basis value or $0 basis
             | value. The correct basis value is $10 per share. There's a
             | spot in the tax forms where you can tell the IRS that you
             | have the corrected basis, but if you don't do this, you
             | will pay extra tax, and it's an easy one to miss,
             | especially if you're just importing the 1099-B.
             | 
             | At tax time my brokerage does send me additional forms
             | beyond the 1099-B that include the corrected basis values,
             | so its not that they don't know the right value, they just
             | don't give it to the IRS directly. I assume this is due to
             | IRS/congress rules and not my brokerage being obnoxious.
        
               | tombert wrote:
               | > As others have noted, the IRS doesn't know everything,
               | and some things may be to your advantage to report to
               | them.
               | 
               | Sure, and I'd be ok with giving people the option to deny
               | the default return and file their own using Intuit or
               | something. For people like me, who don't have the
               | ambition to try and do anything clever with taxes, I'd be
               | ok with the default return that they generate from all
               | the information sent via my employer and banks.
        
               | nimish wrote:
               | This is how it works in a lot of other countries. You get
               | a pre-filled return and can accept it or file on your
               | own.
        
               | cptskippy wrote:
               | > They could send you a bill and ask you to fix it, but
               | many people wouldn't know where to look to find mistakes.
               | 
               | The overwhelming majority of people do not have
               | complicated taxes. That is the exception and as others
               | have pointed out, they could hire an accountant just like
               | they do today.
               | 
               | Having the IRS mail out your bill would eliminate the
               | need for most people to purchase accounting software each
               | year, which is exactly what Intuit doesn't want.
        
               | gautamcgoel wrote:
               | Wait, do brokerages report stock sales to the IRS?
        
               | junar wrote:
               | Yes, of course.
               | 
               | > A broker or barter exchange must file Form 1099-B for
               | each person: > For whom the broker has sold (including
               | short sales) stocks, ... etc., for cash
               | 
               | https://www.irs.gov/instructions/i1099b
               | 
               | To elaborate on the GP comment, the issue is not whether
               | the brokerage reports, but how they do it. You generally
               | compute capital gain income as (sale price) -
               | (acquisition price). If you buy a stock on the market and
               | sell it, brokers generally report both sale price and
               | acquisition price to you and the IRS.
               | 
               | But for employee stock compensation, the broker can
               | report sale price without acquisition price to the IRS.
               | If you don't report the acquisition price yourself, the
               | IRS will think that it's 0, and assume your income is
               | much higher than the real value.
        
               | KerrAvon wrote:
               | I also have to deal with the cost basis issue every year,
               | and it's the biggest headache in the entire process for
               | me and my partner. I don't understand why the brokerage
               | can't provide the correct basis directly -- it would lead
               | to way fewer mistakes and more accurate returns.
        
               | viraptor wrote:
               | > They could send you a bill and ask you to fix it, but
               | many people wouldn't know where to look to find mistakes.
               | 
               | Then people in that situation can do it from scratch like
               | they're already required to do now. This is really not an
               | issue anywhere else - this change wouldn't make the
               | process harder for anyone.
        
             | gautamcgoel wrote:
             | How did the IRS learn about the stock sale?
        
               | tombert wrote:
               | I'm assuming that E*Trade sent them my consolidated tax
               | form last year (that I forgot to enter in my tax
               | software), but I don't know for sure.
        
             | PaulDavisThe1st wrote:
             | > I'm not mad about owing the money, but what annoys me is
             | if they have enough information to know that I
             | underreported,
             | 
             | There's some chance that they didn't have enough
             | information to know that until you filed. Maybe.
        
             | thepangolino wrote:
        
             | lupire wrote:
             | You can file taxes without a software package, if you want.
             | You have to file because they want you to report things
             | they don't know about, and also if you want to claim
             | itemized deductions.
        
               | mattnewton wrote:
               | It'd be great if they just billed me and I was on the
               | hook for correcting them however. The current method is
               | doing math homework under penalty of being fined.
        
               | NeutronStar wrote:
        
               | codetrotter wrote:
               | Here in Norway, the government fills out our tax forms
               | for us with all of the information that has been reported
               | to them by our banks, our employers, etc. It is then our
               | responsibility as tax payers to look over the tax forms,
               | add anything not included, and adding any additional
               | claims for deductions.
               | 
               | By comparison, the needless busywork that the IRS puts
               | the tax payers through is nothing short of ridiculous
               | really. It only serves to waste time and effort, and
               | there is plain and simple no reason whatsoever why the
               | IRS could not do it like Norwegian tax authorities does.
               | Our system here in Norway is not perfect either, but the
               | citizens of the United States, and the US government,
               | would benefit hugely from a tax filing system built to
               | help you file taxes the way that ours does for us.
        
               | PaulDavisThe1st wrote:
               | The basic elements are not much busywork at all. For a
               | person with only wage income, or maybe even a little
               | interest & dividend income and perhaps one contracting
               | payout, its pretty simple.
               | 
               | The busywork comes mostly from the arcane and convoluted
               | nature of US tax code, notably the parts that describe
               | deductions and credits. US governments use such things as
               | a way to implement policy, and the crap just piles up
               | over time. Can you deduct X? How much of X can you
               | deduct? Are you eligible for a credit? Or just part of a
               | credit? Or none of it? etc. etc.
        
             | rootusrootus wrote:
             | If it's the first time you've screwed up the return, you
             | might try calling them and ask to have the penalty waived
             | or reduced. That works pretty often on first-time
             | penalties.
        
               | tombert wrote:
               | You know, it didn't even occur to me to try that. I'll
               | give it a go tomorrow.
        
               | dominostars wrote:
               | It's called a "first time abatement":
               | https://www.irs.gov/businesses/small-businesses-self-
               | employe...
               | 
               | General penalty relief:
               | https://www.irs.gov/payments/penalty-relief
               | 
               | I just went through this for an honest mistake as well,
               | though I didn't qualify for a first time abatement. It
               | took months to get a response as well.
        
               | mh- wrote:
               | Prepare to wait on hold for hours, probably trying for
               | multiple days. They are woefully behind.
               | 
               | I believe your best chance is dialing in right when they
               | open, before the call queues build up. Also the folks
               | answering the calls are in a better mood then, and you're
               | more likely to get the outcome you're looking for.
        
               | rootusrootus wrote:
               | It's too bad they're so far behind now. It used to be
               | fairly painless to reach a human at the IRS, and they are
               | usually pretty helpful. Kind of the opposite of what a
               | lot of people expect.
        
               | orwin wrote:
               | Worked as a temp for the IRS equivalent in my country.
               | The degree of understanding and professionalism was
               | unexpected. We were just overworked, mostly because the
               | systems were really not up to date and had a few
               | directives that were a bit inhumane (first time asking
               | for a delay=> ok in all cases, no explanation needed. 4th
               | time=> NOK in all cases, expect interests.). For people
               | who couldn't afford the taxes, we had really
               | knowledgeable people taking a lot of time finding ways of
               | rebating taxes, people who could make 10x working as
               | taxes lawyers and making a better job at it than actual
               | lawyer (in my skewed perspective, don't quote me on
               | that).
        
             | ecf wrote:
             | > need to be part of this transaction at all
             | 
             | Because Capitalism, in essence, is the optimization of one
             | particular group's ability to alter how people live their
             | lives in a way that transfers the most wealth from the
             | working class.
             | 
             | America's economy is a house of cards built around
             | financial middlemen.
        
               | ThunderSizzle wrote:
               | I think you meant cronyism.
        
               | imtringued wrote:
               | Capitalism without cronyism isn't something people would
               | recognize as capitalism.
               | 
               | Americans would probably still decry it as socialism or
               | communism even though it is very far away from those.
        
               | eropple wrote:
               | If you can find an example of the former that doesn't
               | devolve in short order into the latter, I think you can
               | "I think you meant" him.
               | 
               | I have looked, and I am still waiting.
        
         | naoqj wrote:
        
         | sillysaurusx wrote:
         | Realistically, how would you do your tax return for free?
         | 
         | Keep in mind that every service worker is terrified of an
         | audit. The cost is much higher when you don't have resources.
         | 
         | EDIT: I think I didn't phrase this very well. My point was that
         | the average service worker is trained to be terrified of the
         | IRS. These people are already usually paying hefty fines
         | because they missed their returns in prior years. That's why
         | they take the path of least resistance, and just pay someone
         | else as a shield against this.
         | 
         | So it's not particularly surprising that TurboTax has swindled
         | this person out of $600 with their upsells. Nor should she be
         | condemned as a fool. If you were in her shoes, you might do the
         | same thing.
        
           | andybak wrote:
           | Maybe look how other countries do it?
           | 
           | Like with your health system, a lot of us are slightly
           | baffled by how broken things are in the US.
        
             | cscurmudgeon wrote:
             | Most other countries are comparable to US states rather
             | than all of US. The US is incredibly diverse (in humans and
             | govermental systems) in a lot of ways. So using one system
             | is not easy as in other countries.
        
           | rurp wrote:
           | There are many free filing options for anyone with an average
           | salary from a straightforward W2 source. I went years without
           | paying to file, until I got into freelancing and a higher tax
           | bracket.
           | 
           | Being audited isn't much of a concern if your only source of
           | income is a typical W2 job. The average service worker isn't
           | throwing money around in stocks, crypto, blackjack, and
           | corporate entities.
        
             | ghaff wrote:
             | Even if you toss in a 1099 or two taxes are still mostly
             | straightforward. I've always had mine done but it's mostly
             | only in the last ten years or so that they've gotten
             | genuinely complicated.
        
               | recursive wrote:
               | One time I had a single 1099 form, and I screwed it up
               | badly enough that it took months to resolve, and dozens
               | of hours on my part. Someone who understood the process
               | probably could have sorted it out in minutes.
        
           | washadjeffmad wrote:
           | 1090ez, or any of a dozen free-file options? State returns
           | are cheap if not free almost everywhere.
           | 
           | The vast majority of the people who qualify for free tax
           | filing have nothing to audit. The government makes enough
           | money off their deductions, not to mention what they generate
           | having to spend >50% of their income to stay afloat, to
           | overlook a few unreported tips or sneaker sales.
        
             | deathanatos wrote:
             | Do you mean the 1040ez, which was discontinued, & no longer
             | a form?
             | 
             | (I agree with the rest of your comment. While I disagree
             | with the parent's perspective, I think the FTC's here is
             | that Intuit's advertising leads people towards their not-
             | free products, instead of the actually free stuff that does
             | exist. I don't think most people have the self-confidence
             | to do the 1040 by hand.)
        
               | washadjeffmad wrote:
               | You're correct, I did mean the 1040ez and was unaware of
               | it's discontinuation.
        
           | tonguez wrote:
           | I would get rid of the tax return process as the only purpose
           | for its existence is to waste the time of poor people and
           | thus keep the government boot on their face.
        
         | paxys wrote:
         | TurboTax's dark patterns charge people $50, not $600. How
         | exactly did she end up paying that much?
        
           | somethingwitty1 wrote:
           | Have you gone through TurboTax's filing process? It starts
           | with ~$149 upgrade for me, I believe. They have countless
           | add-ons that popup throughout the filing process beyond just
           | that (annual audit defense membership, get your refund
           | faster, etc). So many up-sells and cross-sells, it is pretty
           | disgusting.
           | 
           | I stopped using them last year because it was just too much.
           | I can easily see how someone could end up with a multi-
           | hundred dollar bill from them. Many of the popups are
           | tailored to look like you need to say yes.
        
             | redler wrote:
             | So they're trying to completely fill the price shadow
             | underneath the $500 or so a very basic "entry-level"
             | accountant relationship would cost -- and fill it with a
             | zero-marginal-cost roster of non-product products and non-
             | service services. Terrible.
        
               | masklinn wrote:
               | It makes complete sense if you're utterly amoral, as long
               | as you remain below "hire a cpa" threshold any money you
               | can scam out is free profit.
        
           | mywittyname wrote:
           | Not sure, but I saw a screenshot of her return. (looking it
           | up now) It was $539.
           | 
           | The sad part: she didn't think anything of it, and thought
           | that's how it was. The reason for the screenshot is because
           | last year, her daughter's dad basically stole her child tax
           | credit. So she was celebrating getting her return accepted
           | before he could pull the same thing.
           | 
           | For reference, her return was also five figures. I'm guessing
           | these companies aim for a % of the total return. So perhaps a
           | "$149" upgrade was $249 because of her return size. Like how
           | online retailers bump up the price for goods based on zip
           | code. I'm speculating though.
        
           | peter303 wrote:
           | Some tax preparers offer "immediate refund" for a hefty fee,
           | instead waiting three weeks for the IRS to deposit it.
        
           | dillondoyle wrote:
           | It's more than that, tacks on even more for state. and every
           | time you 'finish' a step it tries to upsell some stupid audit
           | protection and also another one to get human involved. I
           | somehow doubt 'audit protection' would even give you a
           | certified cpa or attorney when the irs comes knocking for a
           | real audit, it's probably some dumb small print
           | 
           | I personally use it because my taxes are too complicated to
           | do it myself on paper.
           | 
           | I hope they are correct, I honestly do a good faith job but
           | it's too complicated.... the pdf download for 2020 was 426
           | pages... that includes state. and it will be even more next
           | this year about to file my 21.
           | 
           | way too complicated I only own a small s-corp (technically 2)
           | and do some really small level investing with active trading.
        
           | usefulcat wrote:
           | Agreed, I've used turbotax in the past and never paid
           | anywhere near that much. You could get a real accountant to
           | do your taxes for less than that, maybe depending on the
           | state. I know because I've done so.
        
         | jdavis703 wrote:
         | Heck I'm a high skilled, non-essential employee and I fell for
         | this trap for years. Next year I'm using Cash App. But it's
         | wild what brand recognition can do.
        
         | [deleted]
        
       | guenthert wrote:
       | Yeah, it's 'free' unless you are unemployed. I believe those tax
       | fellows just think _differently_.
        
       | tareqak wrote:
       | FTC's own press release: https://www.ftc.gov/news-
       | events/news/press-releases/2022/03/...
        
       | systematical wrote:
       | I stopped using TurboTax after it told me I owed $20,000 to the
       | District of Columbia. I went to an accountant and DC ended up
       | owing me money. Clearly I entered something wrong in TurboTax,
       | but the experience was enough for me to decide paying someone is
       | worth the money and frankly saves me much time as it only takes
       | me minutes to send my information by email and another few
       | minutes to review the results and digitally sign.
       | 
       | Most of my income is from W2 and some 1099 here and there. As
       | others mentioned, America is backwards and the politicians and 1%
       | keep fleecing it towards Romes fate.
       | 
       | I love seeing those on the top get fleeced for a change,
       | unfortunately this will just be a slap on the wrist.
        
       | alephnan wrote:
       | I'm curious how independent the FTC is from political pressure
       | and lobbyists?
       | 
       | In the way there is a revolving door with the SEC, is there a
       | revolving door at the FTC?
        
         | usednet wrote:
         | Yes. The FTC, BigLaw, and tech are highly interconnected.
         | 
         | > Public Citizen found that just over 75 percent of top FTC
         | officials (31 out of 41) over the past two decades have either
         | left the agency to serve corporate interests confronting FTC
         | issues, joined the agency after serving corporate interests on
         | these issues, or both.
         | 
         | https://www.citizen.org/article/ftc-big-tech-revolving-door-...
        
           | alephnan wrote:
           | Right, so when an agency like the FTC flexes their muscle,
           | I'm a little bit cynical.
           | 
           | Are they reminding BigTech that hey, they have political
           | power and some palms needs to be greased.
        
       | MobileVet wrote:
       | Not at all affiliated but Free Tax USA appears to be a great
       | alternative. They have been around for quite a while, but I have
       | only used them this year as it was the first I heard of them.
       | 
       | Biggest downside is no import from brokerage, so if you trade a
       | lot it could be annoying to create your schedule D.
       | 
       | https://www.freetaxusa.com/
        
       | jawshoeadan wrote:
       | https://turbotaxsucksass.org/
        
         | jawshoeadan wrote:
         | Oh shit didn't even realize this " ntuit has elected not to
         | renew its participation in the IRS Free File Program and will
         | no longer be offering IRS Free File Program delivered by
         | TurboTax" Go to hell intuit. https://freefile.intuit.com/
        
       | perardi wrote:
       | I know, I know, there's so many dark patterns in TurboTax that
       | it's cliche to point them out...
       | 
       | ...but man, this was a particularly egregious example I came
       | across this year.
       | 
       | https://imgur.com/ojpLvRW
       | 
       | You can pay for TurboTax using your refund...with an _additional
       | $39 processing fee_. That is just wild.
        
         | quickthrower2 wrote:
         | That is a payday loan that has 100% AAA collateral at loan
         | shark rates, on a system that you are trusting like your
         | dentist to do the right thing. Nice.
        
         | rudedogg wrote:
         | I like how the content and actions/buttons are in the opposite
         | order too.
        
           | jader201 wrote:
           | I guess? But I think it would also be weird to have the "Pay
           | Now" button right below the content for "Pay with Refund"
           | (and then the "Pay with Refund" button below that one).
           | 
           | I mean, ideally the buttons would be immediately below the
           | corresponding content.
           | 
           | But if both buttons are going to be at the bottom, I can see
           | arguments for either order.
        
         | jackson1442 wrote:
         | I think that's actually somewhat standard- even FreeTaxUSA (my
         | personal choice) does this because they're essentially letting
         | you use their product on credit.
        
           | deathanatos wrote:
           | I think the objection is not that they're charging a fee,
           | it's that the fee is $39. TurboTax (just the basic federal
           | edition) is what, $30? And yes, this is essentially credit,
           | extended for what, a month? So ($39/$30 * 12) is yearly rate
           | of like 1,560% for that credit, aka., highway robbery --
           | that, I think, is the parent's point.
           | 
           | (I might be a bit off on the price, but not enough to change
           | the result. TurboTax's loss if the debtor here "defaults"
           | somehow is ... what, even?)
        
             | perardi wrote:
             | Yes, the highway robbery of it, that's my point. That is a
             | _huge_ percentage of the base price of TurboTax, and it is
             | in no way less convenient than paying with a credit card,
             | and they hide that fee down in the blah blah text.
        
             | zerocrates wrote:
             | Plus they themselves have calculated that you're due a
             | refund that will cover that cost already at this point, and
             | they're going to directly pull their fees out of it...
             | while not 100%, it's got to be pretty near the bottom in
             | terms of risk. Especially if they still wait to pay you the
             | balance until the refund is actually paid by the Treasury.
        
               | toast0 wrote:
               | There's a few risks they're taking still.
               | 
               | a) that you have an outstanding tax bill, or other
               | garnishment, and while you overpaid, you will not be
               | receiving a refund, and they'll need to find you to make
               | payment some other way.
               | 
               | b) the return is fraudulent and they're going to have to
               | pick up the pieces when the IRS figures it out and
               | reverses the deposit. Plus, they didn't get paid.
               | 
               | Is that $40 of risk? Eh, probably not, but it's
               | something.
        
           | pvarangot wrote:
           | FreeTaxUSA charges 19.90 for that, so still 20 bucks cheaper
           | than TurboTax
        
           | lozenge wrote:
           | It's not a good way to present the option. Should be a radio
           | button "Pay with refund (fee: $39)"
        
       | beej71 wrote:
       | Here's what's worked for me in terms of not paying Intuit any
       | money (as a W-2 and 1099 earner):
       | 
       | If there's something you can't figure out, is risky, or a one-
       | off, hire someone to do your taxes.
       | 
       | Then use that as a template for subsequent years to do it
       | yourself.
       | 
       | Also, use the federal free fillable forms to e-file. They might
       | be available for your state, as well.
        
         | daniel-cussen wrote:
         | Just do it by mail.
        
           | beej71 wrote:
           | It costs the taxpayers less money to file electronically. And
           | it's less error-prone.
           | 
           | But as long as Intuit isn't making any money, I'm fine with
           | whatever.
        
       | zw123456 wrote:
       | A few years back I got audited, and it was called an "electronic
       | audit" by the IRS. Which basically meant that they had their
       | computer systems scour a bunch of the bank records and discovered
       | that I had forgotten to claim a 1099 for some contract work I
       | had. OK, so they sent me a computer print out and they had cross
       | checked everything on my return electronically, my property tax
       | deductions, my stock dividends so on and so on.
       | 
       | Ok, so if they can do all that automatically for an "electronic
       | audit" why am I filing a return, just run that thing and send it
       | to me and I can file an exception if there is something on it I
       | disagree with.
       | 
       | I think the answer has already been identified in several other
       | comments here, a heavy lobby effort on the part of Intuit, H&R
       | and whoever else to keep it tricky and complex so you have to buy
       | their B.S> software or services.
        
         | Griffinsauce wrote:
         | This is literally how it works here in the Netherlands.
         | 
         | Every year I get a reminder, log into an app with my government
         | ID _, click "next" a few times while checking the numbers and
         | submit. It literally takes 2 minutes if you don't have anything
         | to adjust.
         | 
         | _does the US have a thing like DigiD?
        
           | masklinn wrote:
           | > does the US have a thing like DigiD?
           | 
           | Gods no, can you imagine the US having a national, universal,
           | secure digital ID?
        
         | neilfrndes wrote:
         | This NPR planet money episode explains why tax filing is still
         | the way it is:
         | https://www.npr.org/sections/money/2019/04/03/709656642/epis...
        
         | Johnny555 wrote:
         | _they had their computer systems scour a bunch of the bank
         | records and discovered that I had forgotten to claim a 1099_
         | 
         | I assumed they did that automatically for everyone -- does that
         | mean that if I "forget" to attach a 1099 then they IRS won't
         | know unless they do this special "electronic audit"?
        
           | dehrmann wrote:
           | At some point this becomes a Fourth Amendment violation, so
           | that might prevent the IRS from doing it.
        
           | NovemberWhiskey wrote:
           | I don't think that's actually how this works - most times
           | when you get a 1099, the issuer is also required to file a
           | copy with the IRS. As such - no bank account scanning
           | required.
        
             | Johnny555 wrote:
             | That's what I thought, my SSN is on the 1099, so it should
             | be trivial for the IRS to match them up. That's why I was
             | surprised when he said that they only caught it during an
             | audit.
        
               | NovemberWhiskey wrote:
               | I suspect the term "audit" is being used loosely here.
               | One man's audit is another man's reconciliation - did
               | they just send you a notice of deficiency?
        
               | zw123456 wrote:
               | Yup, dumb mistake on my part, so I track it better now.
               | The point is, do I really have to do all this work
               | tracking everything to guess which card they are hiding
               | behind their backs. It's kinda dumb IMO.
        
               | jimmaswell wrote:
               | They probably just sent you a letter asking you to pay it
               | with a smidgen of interest and that was that, right?
               | Probably hardly worth doing extra work to be super
               | thorough unless it was a large amount.
        
               | zw123456 wrote:
               | ya, it was stupid, the interest was about $300 or
               | something. I would have paid the original amount but I
               | just screwed up and mis-placed the 1099. It was a gotchya
               | game. I think this could be why people hate taxes so
               | much, of course we all hate taxes but the way you do it
               | matters IMO.
        
             | zw123456 wrote:
             | ya, I am sure you are right, I get a bunch of them and I
             | missed a small one. But whatever, the point is, they could
             | just send me a statement.
        
           | ryathal wrote:
           | pretty sure everyone gets an "electronic audit." It's really
           | just a check to see if you claimed all the income that others
           | claimed they gave you.
        
         | refurb wrote:
         | It's impossible to automate the tax filing process unless you
         | simplify the tax code.
         | 
         | And I've filed taxes in countries with simple tax codes where
         | the government pre-fills out the forms. Guess what? You still
         | need to go and double check everything because the information
         | comes from your employer. I've found mistakes before. So I
         | pretty much "do my taxes" myself to make sure what the govt
         | sends isn't wrong.
        
           | Spivak wrote:
           | This is a misunderstanding of the actual ask from the federal
           | government and "automating" is a bit of a misnomer. The
           | reason the IRS could theoretically fill out your taxes on
           | your behalf is because someone else already submitted their
           | part of the forms. Your employer reports your income, your
           | broker reports your capital gains and assets, your bank
           | reports interest, etc.. The ask is less about automation more
           | not having to do those parts twice. The IRS could send you
           | everything they've gotten about you and you just fill in the
           | rest and/or dispute -- for normal single income wage earners
           | there would be nothing else to add so it's effectively
           | automated.
           | 
           | The gain is that we can make "doing your taxes" a non-issue
           | for most Americans. Sure some people will still need
           | accountants for complicated situations but in one swoop we
           | can eliminate hundreds of millions of hours of useless work
           | every year for basically no downside -- it's pure gravy.
        
         | pabs3 wrote:
         | Are there any folks in congress who are interested in mandating
         | the IRS switch to automatic tax returns or automated tax return
         | form data filling?
        
           | [deleted]
        
         | creakingstairs wrote:
         | They've even done a pilot program that literally did what you
         | wanted. [1] And yes, it was much better experience:
         | 
         | > Almost all participants said that they would opt to use the
         | service the following year.
         | 
         | And yes, as you have said, the answer is lobbying.
         | 
         | > Tax preparation services strongly opposed ReadyReturn and
         | have lobbied against its expansion.
         | 
         | [1] https://www.taxpolicycenter.org/briefing-book/what-was-
         | exper....
         | 
         | EDIT: I can't find the podcast I heard this in, but pretty sure
         | the tax professor that spearheaded this pilot got followed by
         | people hired by Intuit.
        
           | Griffinsauce wrote:
           | > EDIT: I can't find the podcast I heard this in, but pretty
           | sure the tax professor that spearheaded this pilot got
           | followed by people hired by Intuit.
           | 
           | This feels somehow like it should be illegal to willfully and
           | knowingly make the common good worse in favor of your
           | company. Perhaps via antitrust.
        
             | dotancohen wrote:
             | Intuit argues that they are working _for_ the common good,
             | not against.
        
               | kevincox wrote:
               | And once the politicians receive enough donations they
               | believe them!
        
           | exolymph wrote:
           | The podcast might have been Planet Money: https://www.npr.org
           | /sections/money/2017/03/22/521132960/epis...
           | 
           | Priceonomics wrote an accompanying article:
           | https://priceonomics.com/the-stanford-professor-who-
           | fought-t...
        
             | creakingstairs wrote:
             | Thank you, it was! The accompany article is really good,
             | but it is also really depressing to read too :(
        
         | cyanydeez wrote:
         | Republicans want you to hate paying taxes and tax providers are
         | greedy.
        
         | thehappypm wrote:
         | Oddly enough conservatives see that as a problem. They want
         | this to be a big process for two reasons. First, taxpayers
         | understanding the process is a good thing. It means they're not
         | getting gouged and they're aware of their taxes. Second, they
         | don't want taxes to be something we just say "k" to like a cell
         | phone bill. That could lead to it being extremely easy to raise
         | taxes.
        
           | xunn0026 wrote:
           | There is a logic here that's visible with salary talks in the
           | EU: people only care about what they receive, not taxes; so
           | all salary talk ignores taxes, all raises ignore taxes, all
           | tax increases are irrelevant as long as they get in-hand the
           | same amount. This is basically a population that sees taxes
           | as magical money only the employer pays.
           | 
           | People should definitively understand how much taxes they are
           | paying so that they demand some accountability for their
           | money.
           | 
           | How do you accomplish that?
        
         | fnord77 wrote:
         | > just run that thing and send it to me and I can file an
         | exception if there is something on it I disagree with.
         | 
         | basically how it works in Sweden
        
         | swozey wrote:
         | I have a $165k notice of defiecency bill from the IRS due next
         | month that is a complete joke that I have had to spend days
         | figuring out. I almost dropped thousands on a lawyer for it
         | until I understood Tax Court better.
         | 
         | Why? They think I sold a house and kept _all_ of the gains.
         | Like I didn 't have a mortgage, and like it wasn't my primary
         | residence.
         | 
         | It's ridiculous. I can't explain how stressed out getting a
         | $165k bill when that's practically my yearly income made me. I
         | wonder how many wealthy people get these completely incorrect
         | $165k bills and how often they come after the person with $10k
         | in the bank.
        
           | toast0 wrote:
           | Did you report the sale? When I sold my primary residence in
           | 2018, it ended up on Schedule D and Form 8949, and there were
           | no questions asked. The IRS does have a tendency to assume
           | zero basis when there's a capital sale reported to them that
           | doesn't appear in the tax return; which makes for scary
           | bills, but can usually be resolved by reporting the sale and
           | your basis on the appropriate form. (although I see from
           | further replies that you are now having to deal with this in
           | Tax Court, so that sounds like a terrible time, and I'm sorry
           | for your tedium)
        
             | swozey wrote:
             | I don't believe I did, it was my primary residence so
             | bypassing a lot of the tax implications from capital gains.
             | It was my first house sale so I was really expecting to
             | companies involved in it that I paid a small fortune to to
             | handle things of that nature, or at least send me
             | documentation to send when I did my taxes. Unless something
             | got lost in the mail I never received any sort of tax docs,
             | which in my obvious-now ignorance might have been very
             | wrong.
             | 
             | I did these taxes in the height of the pandemic in March
             | after being laid off and living out of airbnbs for 3 months
             | so it very well may have just been missed unfortunately.
             | I'm not even sure what they need or who to talk to, I'm
             | just going to mail them everything I have including the
             | Statute stating I don't need to pay capital gains on a
             | primary residence house sale under $500k.
        
               | toast0 wrote:
               | I'm not a tax person, but probably all they need is an
               | amended tax return (1040X) with the sale reported. Grab
               | the instructions for schedule D for the tax year you sold
               | your home, and follow the section for "Sale of Your
               | Home". It says you're only required to report the sale if
               | the gains exceeded the exclusion amount or you received a
               | 1099-S; but I'm guessing the IRS must have received a
               | 1099-S even if you didn't. You might be able to get a
               | copy of that through the IRS Tax Transcript service?
               | 
               | They probably don't need a copy of the Statute, but eh.
               | :)
        
           | rossjudson wrote:
           | I highly recommend that you keep _everything_ related to
           | this, securely, for several years _even after it is
           | resolved_.
           | 
           | State governments are not necessarily believing the same set
           | of facts that the federal government does. I got caught in a
           | multi-year cycle one time where the state government kept
           | coming after me _every year_ for the same thing, even though
           | I had the federal return and the evidence that it was
           | correct.
           | 
           | Each year I'd send that thing in, in response, and I'd never
           | hear from them...until the next year, when they'd do it
           | again.
           | 
           | Felt to me like each year somebody would receive my response,
           | decide it was too much work to deal with, and then file it
           | away in the "hit them again next year" pile.
        
             | swozey wrote:
             | Thanks. Like you, nobody has ever responded to me other
             | than them "upgrading" me from being able to prove my taxes
             | via fax to having to petition the tax court directly.
             | 
             | I'm sure this will be a nightmare for the next few years.
             | As if selling that house wasn't a bad enough experience.
             | 
             | I shouldn't have to spend $5k or whatever else on a lawyer
             | to deal with this. Insane. I walked away with $13k after
             | paying everyone/mortgage off.
        
         | AnIdiotOnTheNet wrote:
         | It isn't just the lobbyists, certain ideologically anti-tax
         | politicians desperately want their constituents to think of
         | taxes as a Great Evil perpetrated upon them so they can present
         | themselves as the solution. Making the process as much of a
         | pain in the ass as they can is part of their reelection
         | strategy.
        
         | lawrenceyan wrote:
         | It's absolutely absurd.
        
         | downrightmike wrote:
         | That's exactly it.
        
         | jrochkind1 wrote:
         | That is in fact how it works in many (most?) countries.
         | 
         | https://www.pbs.org/newshour/show/dreading-taxes-countries-s...
        
         | ehsankia wrote:
         | It's well known fact that the government can auto-file for most
         | people, it's not really a secret. Many other countries do it,
         | it's been proven to work just fine.
        
           | gramie wrote:
           | In Canada, when I file my taxes electronically, all my income
           | (salary, interest, etc.) is pre-filled. I basically enter my
           | deductions and hit "Submit".
        
           | Cthulhu_ wrote:
           | That's just it, when I do my annual taxes (I should do that
           | within the next month btw), all the data - from my employer's
           | wages, all assets at banks including checking-, saving- and
           | investment accounts, and things like mortgage interest (which
           | is still partially deductible) etc are all filed.
           | 
           | The only thing I need to manually add is the EUR value of
           | crypto assets on Jan 1st of the preceding year (good luck
           | figuring that one out, the exchanges are kinda shit), and any
           | charity donations I may have done. (my dad will pettily write
           | down any speeding ticket cost as charity donations)
        
           | jazzyjackson wrote:
           | how could America claim to be exceptional if we just did
           | things the same way as every other developed nation? /s
        
             | zw123456 wrote:
             | Exceptional != Best
        
           | KennyBlanken wrote:
           | The IRS can't even handle people e-filing.
           | 
           | But don't worry, the project started in 2009 to replace their
           | COBOL mainframe systems is kinda, sorta on track for
           | completion...in 2030.
        
             | PaulDavisThe1st wrote:
             | I've filed for years using FreeFillableForms. It works. A
             | bit more cumbersome than if some ex-Amazon people had
             | implemented it, but not too bad.
        
               | gbear605 wrote:
               | The funny thing is that Intuit makes FreeFillableForms.
               | It could have a much nicer interface, but they choose not
               | to, so that you go and pay money to use Turbotax.
        
         | JSavageOne wrote:
         | Blaming "lobbyists" absolves the politicians of their
         | responsibility. The fault lies with the politicians for
         | creating and perpetuating this broken system.
        
         | aj7 wrote:
         | Methodology: 1) Download your income transcript from the IRS
         | using your IRS account. 2) Make sure all claimed income on the
         | transcript is included. 3) Do the puzzle. 4) Print and file.
         | 
         | Be sure you have a copy, either scanned or electronic, of all
         | documents on your computer. Ditto all tax return filled in
         | forms. Use the fill-in pdf's the IRS provides.
         | 
         | Do not miss a filing date. File a tax return missing important
         | documentation if necessary, but file. Similarly, pay the tax
         | you owe, or estimate you owe on time. The penalties for late
         | filing and owed taxes are severe. You will not make a serious
         | error if you work from the income transcript.
        
           | ryathal wrote:
           | To add to this even if you can't pay, still file your taxes.
           | It's so much better to only be on the hook for not paying
           | than both not paying and not filing.
        
         | dguest wrote:
         | I know people who have optimized this:
         | 
         | - they fill out their taxes with rough estimates,
         | 
         | - the IRS helpfully corrects their errors, and sends the form
         | back
         | 
         | - they sign the corrected form, send it back
         | 
         | - the IRS accepts the second round.
         | 
         | This is basically the same "pre-filled" workflow as every other
         | developed country. The difference is that we have a first round
         | where you put in a semi-plausible effort to placate the tax
         | preparation lobby.
         | 
         | Has anyone with a normal job (not self-employed, regular
         | paycheck from a company registered with the IRS) ever been
         | fined etc for this?
        
           | legalcorrection wrote:
           | Beware: if you owe the government money due to your mistakes,
           | you will have to pay penalties and interest.
        
             | [deleted]
        
             | pm90 wrote:
             | The main thing in this strategy is that your estimate is
             | pretty close to the amount owed. So you may overshoot or
             | undershoot, but likely by a pretty small amount, which is
             | likely to make the difference owed small. I guess it could
             | be considered a cost of filing taxes.
        
             | kristopolous wrote:
             | If you overpay they'll credit you next year. They're pretty
             | lenient as long as your act promptly in good faith
        
             | dguest wrote:
             | How much are the penalties?
             | 
             | If they are charging some absurd (say 20%) interest and
             | you're off by 10k, you might pay them a few hundred in
             | interest if the process is prolonged a month, which is on
             | par with a tax prep service.
        
         | markdown wrote:
         | Most people in my country never have to file tax returns. Their
         | taxes are deducted at source (by their employer).
        
           | masklinn wrote:
           | In every country I know where taxes are collected by the
           | employer you still have to file, to square things up and
           | settle the tax bill (often you'll get some money back, if you
           | have other sources of income then you may have to pay taxes
           | on those instead).
        
             | donbrae wrote:
             | Not in the UK. Only those earning self-employed income over
             | a certain threshold (PS1,000, I think) need to complete a
             | return.
        
         | nathancahill wrote:
         | Government: You owe us money. It's called taxes.
         | 
         | Me: How much do I owe?
         | 
         | Gov't: You have to figure that out.
         | 
         | Me: I just pay what I want?
         | 
         | Gov't: Oh, no we know exactly how much you owe. But you have to
         | guess that number too.
         | 
         | Me: What if I get it wrong?
         | 
         | Gov't: You go to prison
         | 
         | Source:
         | https://twitter.com/jordan_stratton/status/11181414550616719...
         | 
         | I dig this one up every April.
        
           | zw123456 wrote:
           | ya, so why not just send me a statement once a month, the
           | power company does that, the cell phone company does that,
           | the city I live in does that, etc.
           | 
           | Just send me a statement, you made this, you get this much
           | deduction for the other crap or whatever.
           | 
           | No stupid W2, W4 1040, bunch of mumbo jumbo from the 1950's
           | that a few companies are ripping us off over IMO.
        
             | Vespasian wrote:
             | That's basically how it works in Germany.
             | 
             | There is a formula in the law that specifies how much if
             | your salary gets deducted every month based on specific
             | criteria such as your marital status, your religion (yeah
             | church taxes), whether it is your primary or secondary job
             | etc.
             | 
             | That amount is calculated to be enough (a little bit to
             | much in fact) to cover taxes for most people employed with
             | a single job.
             | 
             | Unless you have extra income or deductions beyond a certain
             | amount you don't have to file any tax return.
             | 
             | If you want to file one (pre filled with what they know)
             | the government calculates what you need to pay/are owed and
             | you have the right to dispute that.
             | 
             | You can use the free digitalised version of the former
             | paper form or you can use a number of (often inexpensive)
             | commercial programs
        
               | [deleted]
        
               | zw123456 wrote:
               | German efficiency!
               | 
               | I like it, my city government sends me a statement once a
               | month, says you owe this amount for police, that amount
               | for fire, some other amount for sewer and water, some
               | amount for schools. Maybe I disagree with some of the
               | amounts, fair to discuss, that's democracy. But they
               | don't play that idiotic game the feds do, you owe a
               | certain amount, if you guess it correctly, or if you on
               | purpose short it but we don't catch you at it, then
               | nothing happens. But if we randomly catch you getting it
               | wrong then we fuck with you. I hate that.
        
           | blowski wrote:
           | In the UK, I'm told how much I owe. A year later, I get fined
           | because they told me the wrong amount.
        
           | MisterTea wrote:
           | The best part is your employer already sent them the income
           | tax money you owe them but you still have to tell them how
           | much money someone else gave them. Its an absurdly brain
           | damaged system.
        
           | randmeerkat wrote:
           | What's crazy is that unreasonable taxes is one of the main
           | reasons _why_ the British settlers rebelled against the Crown
           | and went on to found America. The fact that nearly 250 years
           | later we have an absurd, convoluted tax system, that
           | literally requires specialists and companies with absurd
           | market caps, for example Intuit has a $137B market cap, shows
           | just how broken the system has become.
        
             | sgjohnson wrote:
             | "Me and my homies woulda be stacking bodies by now"
             | 
             | - George Washington, probably
        
             | PaulDavisThe1st wrote:
             | The central problem is the refusal of US governments (state
             | & federal) to _pay people money to do things they want to
             | encourage_ rather than give them tax credits and whatnot.
        
               | briandear wrote:
               | Taxes shouldn't be used to get people to do things or not
               | do things. Taxes should be used only to fund the
               | essential services of the government: common defense, a
               | legal system to enforce contracts, and that's about it.
               | 
               | When taxes are used as a means of control, that's
               | totalitarian. Tax policy should always be neutral.
        
               | broptimist wrote:
               | So you wouldn't be in favor of a carbon tax? What about a
               | tax on tobacco sales in a universal healthcare system?
               | (to offset tobacco users' additional healthcare costs)
        
               | sgjohnson wrote:
               | I wouldn't.
               | 
               | And "sin taxes", i.e. tobbaco taxes and carbon taxes are
               | a logical fallacy.
               | 
               | Tobacco tax won't offset the additional healthcare costs
               | for smokers on average, so it ends up just being a
               | penalty for having a bad habit, and carbon tax will
               | simply put a price tag on high carbon emissions.
        
               | SOLAR_FIELDS wrote:
               | Kind of tangential - the tobacco tax is a fallacy in
               | another way: without taking into account quality of life
               | adjustments, smokers are actually a net benefit for
               | society in healthcare costs [1]. The simple reason is
               | because they die earlier and most healthcare costs are
               | incurred near the tail end of life, so by shortening
               | those final years it becomes much cheaper for society to
               | pay out.
               | 
               | 1: https://bmjopen.bmj.com/content/2/6/e001678
        
               | tmp_anon_22 wrote:
               | How many people die per year of second hand smoke?
               | Smokers impact non-smokers significantly.
        
               | PaulDavisThe1st wrote:
               | Technically there's no difference between the government
               | deciding to:                 1. give everyone who does X
               | US$300       2. give everyone who does X a US$300 tax
               | credit
               | 
               | Both rely on the collection and disbursement of
               | government revenue, which is typically accomplished via
               | taxation.
               | 
               | However, 1. does not introduce any new clauses to the tax
               | code. 2., by contrast does, and it generally functions as
               | a slow steady drip, drip, drip of new clauses.
               | 
               | We therefore end up with an extremely complex tax code,
               | instead of a simple tax code, and legislative acts to pay
               | people for doing things we choose (via political process)
               | that we want done.
        
               | kj4ips wrote:
               | The main difference is that not all credits are
               | refundable. If you have a $7500 nonrefundable credit, but
               | only have a tax liability of $5000, that extra $2500 just
               | vanishes.
        
               | Frondo wrote:
               | The "essential services" are kind of the big thing in
               | dispute -- you say "common defense, a legal system to
               | enforce contracts" and that's a typical libertarian
               | perspective, but certainly not the only set of essential
               | services that reasonable people could posit for their
               | government.
        
               | orwin wrote:
               | Tax should also control for externalities. Especially
               | 'common good' pollution/destruction/captation.
               | 
               | It's too easy to make a company go bankrupt with LLC, so
               | taxes are the only way. Unless you have a better idea? (I
               | once had a libertarian explain to me the owners/investors
               | should be liable for externalities, and in this case,
               | taxes shouldn't control for it. I couldn't really
               | disagree, but even staunch communists understand the
               | issue with that).
        
               | sgjohnson wrote:
               | > Tax should also control for externalities. Especially
               | 'common good' pollution/destruction/captation.
               | 
               | The problem with this approach is all it does is it
               | legitimises pollution/destruction/captation if you just
               | pay a tax on it.
               | 
               | Not even a penalty for wrongdoing. Pay a tax and you're
               | fine.
        
               | quantified wrote:
               | Well, Intuit lobbying/bribery has a lot to do with it in
               | the last couple decades.
        
               | PaulDavisThe1st wrote:
               | I was referring to the complexity of the tax code, not
               | the filing system itself.
        
               | azemetre wrote:
               | Complexity of the tax code is just part of the system
               | Intuit wants. If taxes were simple you wouldn't have to
               | pay for unique software right?
        
               | PaulDavisThe1st wrote:
               | While I absolute believe that Intuit and others are
               | responsible for the lack of (1) free, highly functional
               | e-filing and (2) response filing, the complexity in the
               | US tax code is beyond their purview and precedes their
               | existence.
        
           | makeitdouble wrote:
           | The alternative is:
           | 
           | Gov't: You owe us money. We took the amount we want directly
           | from your income.
           | 
           | Me: But shouldn't the amount be lower because of X and Y and
           | Z ?
           | 
           | Gov't: Send us all the right paperwork and we might give you
           | back some of what we took if we agree with your claim.
           | 
           | I actually like this version better (and it's also what I am
           | used to), but I'd see people being uncomfortable with that
           | arrangement.
        
             | Thlom wrote:
             | My employer pay taxes for me based on either a table or
             | percentage (this is up to me). At the end of the year our
             | tax authorities sums everything together (income, capital
             | gains, ownership, debt and so on) and sends me my
             | preliminary tax report for me to verify and make changes
             | to. For normal people it's usually correct with most
             | deductibles already accounted for. It's easy to fill in any
             | other deductibles or income that is not already accounted
             | for. This year it ended up with the government owing me
             | approx. $2000.
        
           | supramouse wrote:
           | you don't really go to prison unless you're going out of you
           | way to do something really nefarious
           | 
           | it's also super easy to setup a payment plan online now if
           | you really mess things up
        
             | KennyBlanken wrote:
        
             | zw123456 wrote:
             | well, I am walking around free so, for sure you don't go to
             | prison but you pay a penalty perhaps. In my case I just
             | paid it. It was an honest mistake and they did not bust my
             | chops over it, they did charge interest, which is stupid.
             | But, fine, if your computer can figure it out why not just
             | send me the bill monthly like my city government does?
        
               | supramouse wrote:
               | IRS is currently in the MVP phase, waiting on buy in from
               | the steakholders on UX improvements
        
           | btgeekboy wrote:
           | It's a nice, if overly simplistic sentiment.
           | 
           | It'd be nice if my 1099s were electronically filed with the
           | cost basis. But they're not. So the IRS, every year, thinks
           | I'm going to owe way more than I do.
           | 
           | The IRS also has zero idea about the $4000+ of sales tax
           | deductions I'm filing for this year.
           | 
           | And finally, if you do get it wrong, you don't go to jail.
           | They send you a CP2000 letter. (Remember those 1099s? I
           | forgot one one year.) You fix the problem or show them their
           | error. They'll even waive the penalties the first time. It's
           | a somewhat easy process.
        
             | vadym909 wrote:
             | Ok- If you have extras you are going to claim- do it. You
             | are the exception. Why force everyone else who doesn't run
             | a business or claim expenses to do it.
        
             | throwaway09223 wrote:
             | I agree. The IRS definitely does not know how much I owe
             | each year.
             | 
             | However, they do have an estimate and the vast majority of
             | people would accept this estimate. So I think it's
             | reasonable to suggest it ought to be provided.
             | 
             | I think the strongest counter-argument against this
             | approach is in regards to bad actors and who discloses
             | first. If you're thinking about hiding income and the first
             | step is the government telling you what it thinks then
             | you're very likely to continue to conceal and/or have a
             | defense against a charge of concealment down the road ("I
             | just used the IRS figures!")
             | 
             | It's a much more difficult situation for a bad actor if
             | they have to disclose first without knowing for sure what
             | the IRS knows.
        
               | pc86 wrote:
               | "Estimate" implies someone is trying to... estimate
               | something. The IRS has partial information. They don't
               | have anything approaching something that anyone could
               | reasonably call an estimate, and this isn't just an
               | example of HN pedantry, it's an important distinction.
               | 
               | They know some of your income, but not all of it. Your
               | 1099 income for the year is getting filed by your clients
               | at the same time you're filing it, so all they know is
               | what your AGI was last year. They know your expenses from
               | last year in terms of the numbers, but they haven't been
               | checked (last I saw, they were 3-5 years behind on cross-
               | checking and validation depending on type of return). So
               | they could plug the number in, sort of.
               | 
               | So they have your reported info from previous years, and
               | a best guess at _some_ of what this year 's information
               | _might_ be.
        
               | fragmede wrote:
               | So give me a partially filled out form with the
               | information they _do_ know then. Fill in the standard
               | deduction, let me do the extra credit work for itemized
               | deductions if I _really_ want, eg I find taxes fun to do.
               | (Some 90% of filers just go with the standard
               | deductions.) Don 't buy into Intuit's nonsense that the
               | current system is good for anything other than their
               | bottom line.
        
               | lotsofpulp wrote:
               | Standard deduction varies based on your filing status
               | (single/married joint/married separate/etc). IRS will not
               | know if that changed in the year.
        
               | hunter2_ wrote:
               | So the IRS calculates for each filing status, and you
               | choose one. This would be a lot to ask years ago, but
               | nowadays many citizen-facing government processes are web
               | apps. Think TurboTax pre-filled with whatever has been
               | reported.
        
               | throwaway09223 wrote:
               | A best effort calculation done with partial information
               | is a type of estimate.
               | 
               | I agree, this won't work for a big class of people. It
               | won't work for me. But it will work for the majority of
               | tax filers who don't have a 1099 and who don't file a
               | schedule A, B, C, D ...
               | 
               | My tax return last year was a half inch thick, printed
               | out. I had to file on paper. I very much understand that
               | this doesn't work for everyone. But it works for most
               | people.
        
               | Broken_Hippo wrote:
               | Where I'm living, the government does the taxes for you
               | and then sends you a notice to check them.
               | 
               | That last bit? That's important - you get to check them.
               | You can adjust if you should need to. Guess what most
               | folks don't have to do? Check them. This works because
               | most folks have simple returns. They work, might or might
               | not own a house, might have a bank account, might have a
               | retirement account - and that's about it. The government
               | already has what it needs for _most_ people. But you can
               | check them and adjust if they are wrong. Of course, you
               | can just not bother, too.
               | 
               | Is the system perfect? No, but it doesn't need to be. It
               | merely needs to have better overall tax compliance than
               | another system. When taxes are easy for the vast majority
               | of your population, the governement has a better
               | collection rate and can spend manpower auditing those
               | that need audited (perhaps audit more complicated returns
               | from the well-to-do instead of Ordinary Married Citizen
               | that makes 50k jointly) and they can generally spend less
               | money doing things like printing forms and manning
               | question lines that don't give answers that constitute
               | legal advice.
               | 
               | And seriously, in these systems, hiding income is still a
               | crime. So those folks that just "used the IRS figures!"
               | still have the chance of going to jail. Even if they
               | never get caught, the automated system still wins because
               | of the other benefits.
        
               | meshaneian wrote:
               | I like this argument more knowing it circles back to the
               | "guess what the IRS knows" game earlier. :)
        
               | briandear wrote:
               | > the vast majority of people would accept this estimate.
               | 
               | And the vast majority of people would then overpay. The
               | IRS knows income, but they don't know expenses.
        
               | throwaway09223 wrote:
               | This would be true if it weren't for the standard
               | deduction. Something like 90% of all filers opt for the
               | standard deduction, obviating the need for itemized
               | expenses.
               | 
               | Almost everyone would be best served by IRS calculated
               | taxes. It's the wealthy and those with non-wage income
               | who need the alphabet schedules.
        
               | runako wrote:
               | > those with non-wage income
               | 
               | This is a lot of people now, thanks to the gig economy.
               | Similarly, farmers plus people who work for tips (at
               | employers that do not centralize tips).
        
               | trulyme wrote:
               | Genuinly curious: do people in US report tips on their
               | tax forms? (forgive my ignorance - tips are much less
               | common around where I live)
        
               | sgjohnson wrote:
               | Not if they are cash tips, obviously.
               | 
               | Because why would anyone do that. But legally speaking,
               | yes, you have to.
        
           | softveda wrote:
           | This is how is works in Australia. The Australian Tax Office
           | will pre-fill your tax return online with income from your
           | wages, interests, managed fund distributions, dividends etc.
           | That maybe enough for simple tax returns, you can just accept
           | their values and submit.
           | 
           | What they don't know is your income from sources like rental
           | income or crypto. They also don't know deductions you are
           | going to claim. In this case you will have to provide the
           | details. Still free to lodge your returns online.
        
             | cmutel wrote:
             | Since we're having the semi-annual "how do taxes work in
             | other countries" thread, here is my experience as an
             | American living in Switzerland. Though I have been here a
             | while, I still find it interesting and a little weird.
             | 
             | At the beginning of the year, you get a bill for that year
             | based on what they think you will owe. This bill is due on
             | October 31, i.e. you need to pay your estimated income tax
             | before you have earned all that income. This is especially
             | strange because most people will get a 13th month salary at
             | the end of October (your annual salary is split into 13
             | months, the extra comes in time for Christms presents?).
             | You are expected to save adequately to be able by the end
             | of October.
             | 
             | Banking secrecy is not dead in Switzerland. There are no
             | longer anonymous accounts, and banks share information with
             | foreign governments. However, there is banking secrecy
             | between the banks and the government. On the other hand, we
             | pay a wealth tax each year (it's small), so you need to
             | declare each account and how much you had in it on December
             | 31.
             | 
             | To create an equal playing field between house owners and
             | renters, house owners pay an imputed rent cost for how much
             | they would have paid in rent for their house. This is added
             | to their income before taxes are calculated. In my case,
             | this means my assessed income is around 25k higher than it
             | otherwise would be.
             | 
             | There is no automatic form filling in my state, but there
             | is free tax software (Java app which runs everywhere), and
             | it is pretty easy to use. If you have questions, the local
             | tax office will nicely respond via "secure email" in 1-2
             | days.
             | 
             | Taxes are very progressive and family friendly. With 4 kids
             | and one income we pay 6.5% combined local/state/federal on
             | income of around 120k (plus imputed rent).
             | 
             | There are no property taxes. For the wealth tax, most
             | people who own houses never pay off their mortgages. They
             | will typically have a mortgage for 50% of the house value
             | (which can be quite high, a typical house where I live is
             | between 800k and 1000k, and more in bigger cities). The
             | interest can be deducted, and the mortgage amount from the
             | wealth tax.
        
               | sschueller wrote:
               | You forgot the part where you need to also file and pay
               | US taxes although you may no longer be living there, have
               | any income or assets there but you still need to pay as
               | long as you hold a citizenship or green card.
        
               | valarauko wrote:
               | > you still need to pay as long as you hold a citizenship
               | or green card.
               | 
               | wait, I thought this only applied to US citizens, not
               | Green Card holders
        
               | sschueller wrote:
               | Green card holders are not excempt from this:
               | https://www.irs.gov/individuals/international-
               | taxpayers/freq...
        
               | throwaway2037 wrote:
               | Which canton? As I recall, Zug is near Zurich and has
               | very low tax rates. Many highly paid professionals make
               | the daily commute.
        
               | cmutel wrote:
               | Aargau, normally considered higher tax, but we have four
               | kids at home.
        
             | JSavageOne wrote:
             | Pretty much every other major developed country operates
             | like this. Here in South Korea for example filing taxes is
             | as simple as logging into some government portal, verifying
             | that the information they already have on you is correct,
             | and making any corrections if necessary. 10 minutes, done.
             | 
             | The U.S is unique in forcing its citizens to waste
             | countless hours and pay hundreds/thousands of dollars every
             | year doing the useless unnecessary work of "filing taxes".
             | Why is the system still this backwards? Either plain
             | ignorance of there being a superior alternative, or a
             | broken political system that can't get anything done. My
             | guess is it's a combination of both.
        
               | philipswood wrote:
               | For comparison, as an example of how other
               | developed/developing countries do it:
               | 
               | I'm a South African citizen, I get an SMS that a pre-
               | filled-in tax return is available online.
               | 
               | I can then log in to their online portal and accept it or
               | amend it and submit it electronically.
               | 
               | Currently I can usually just accept and submit it.
               | 
               | Some years I might need to add or tweak income and
               | expenses, but broadly speaking they are pretty correct.
               | 
               | They have all the income and benefit details from
               | standard corporate employers, expense and contribution
               | info from medical aids (something like medical insurance,
               | but a bit more sane as far as I can tell), investment and
               | banking contributions from financial service providers,
               | etc.
               | 
               | You can opt for extra deductions which require extra
               | paperwork from your side. And they don't always have
               | income info from side hustles or correct expense info
               | from "unusual" arrangements between you and your spouse.
               | Sometimes your $BIGCORP's finance department can declare
               | your benefits incorrectly which needs fixing.
               | 
               | But for most middle-class income earners I suspect they
               | can just log in and click accept.
               | 
               | You can pay money and use a tax consultant to see if they
               | can navigate the current rules for a better result, but
               | unless you have a complicated setup you don't need to.
        
               | gambiting wrote:
               | In the UK it's so streamlined some of my coworkers were
               | genuienly surprised when I told them it's the end of the
               | tax year - as in, that's something they have never ever
               | think about in their entire careers. Taxes are paid
               | automatically by your employer, if you only work one
               | regular full time job then "filling taxes" is just not a
               | thing you'd ever have to do in your life.
        
               | teknopaul wrote:
               | For many who don't have an automated tax return it could
               | be easily. It amazes me the systems like bizum and bank
               | transfers don't have a checkbox for "this ought to be
               | taxed".
               | 
               | If you are not getting a VAT refund then you are paying
               | VAT and it is in your interest that everyone does, so
               | most consumers would select the box. The transfer is
               | recorded, consumers would be complicit in the fraud if
               | they didn't tick the box and that's enough excuse for
               | both sides to want to play ball.
        
               | tylerhou wrote:
               | There is another reason: a group of Republican lobbyists
               | (Americans for Tax Reform) deliberately want to make
               | taxes more difficult. The idea is that 1) if taxes are
               | difficult, you will spend as much as your time trying to
               | get every deduction and 2) a prefilled tax form from the
               | government would look too much like a bill, so people
               | will pay it without contesting.
               | 
               | Of course, TurboTax/Intuit also lobbies to keep taxes
               | more difficult to protect their profits.
               | 
               | https://www.washingtonpost.com/blogs/post-
               | partisan/wp/2015/0...
        
               | noduerme wrote:
               | I dunno. _Most_ people I know are 1099  / contract
               | workers, and a lot of them get paid cash off the books.
               | The government might have a rough idea of what they make,
               | but it definitely doesn't know down to the penny. I keep
               | very good books, but I have foreign bank accounts, crypto
               | trades, subcontractors I paid over Paypal, people who
               | paid me over Paypal, and there's no one system I'm aware
               | of that could figure out what I actually owe in taxes. It
               | still costs me about $800 a year through an accountant to
               | file my taxes. (Luckily, you can write it off).
               | 
               | Until or unless everything is centralized and cash ceases
               | to exist, I don't know how they'd really do it. In South
               | Korea do waiters live on tips? Because in the US, almost
               | all money made in the restaurant service industry comes
               | from unrecorded cash tips; the actual wages are extremely
               | low. The restaurant will attempt to estimate their
               | workers tips and cover the taxes out of the fixed wages,
               | but... this doesn't even get into all the other cash
               | industries like stripping or moonlighting as a
               | dominatrix. The US's tax attitude seems to be: You're on
               | your honor, and most of the time we won't catch you, but
               | not even Jesus can help if we do.
        
               | alistairSH wrote:
               | We should keep a broken tax system because many of your
               | peers are paid illegally? Or because edge cases exist?
               | 
               | I should be a pretty typical middle-class example. Two
               | salaries (me + spouse), a mortgage, limited other
               | deductions. Yet every year I have to wait for various
               | forms that the government already has, enter the values
               | on paper or pay for tax software, hope I don't fat finger
               | a value, and wait 7-10 years for an audit. Heck, since
               | Trump increased the standard deduction, I'll probably be
               | taking that soon (mortgage interest is near that
               | threshold now), but still can't just click a button at
               | irs.gov that says "yup, that's right, here's my bank info
               | for refund/payment"
        
               | noduerme wrote:
               | Oh no. I'm just explaining why it's more efficient for
               | the IRS to do it this way. I'd personally like to abolish
               | income tax and only tax sales, with up to 100% tax on
               | luxury goods and no tax on food, etc.
        
               | alistairSH wrote:
               | I don't by the "more efficient" argument.
               | 
               | The IRS could generate online forms (or snail mail) with
               | what they know and let us add deductions and other
               | income. They should know salary/wages, they could know
               | investment income (not sure if broker report to the IRS,
               | or just send forms to filers).
               | 
               | Even if the filer has to manually enter deductions,
               | credits, etc, doing it on an IRS site has several
               | benefits... no $50+ fee for H&R/TaxCut/etc, no $500+ for
               | a CPA (for fairly typical tax situations), no worrying
               | about whether online submission processed correctly
               | (because you'd be submitting directly to the IRS instead
               | of relying on a 3rd party to submit for you). Multiply
               | that time/money/stress savings across the population and
               | it's a MASSIVE benefit to society.
        
               | noduerme wrote:
               | No, I mean, the efficiency is partly amplified by keeping
               | people in constant fear. It costs them less and it
               | increases compliance. Like, those fuckers just put a
               | question about crypto on the front page this year and I
               | just decided not to lie on a sworn document, and
               | basically spent 2 months figuring out what the fuck
               | ridiculous chain of events led to me selling some bitcoin
               | in 2021, to be on the right side of 'em. And they
               | probably never would have known. But it's the _fear_ that
               | they might 've known, you see, that makes them so
               | _efficient_.
        
               | adwww wrote:
               | That sounds pretty regressive. A massive tax burdon on a
               | low income family so that high earners don't have to file
               | income taxes.
        
               | noduerme wrote:
               | Well, really it's progressive if it only taxes stuff you
               | don't _need to buy_. Here 's what I think:
               | 
               | Fuel and food, no tax.
               | 
               | School supplies, shoes, clothing, any item under $100, no
               | tax. Over $100, ramp it up.
               | 
               | Diamond rings, 100% tax.
               | 
               | Alcohol and cigarettes, 20-30%.
               | 
               | Used cars, no tax.
               | 
               | New cars, 10% up to 100%. Credits if they're electric or
               | extremely fuel-efficient.
               | 
               | Playstations, high end sneakers, Smart TVs, iPhones,
               | rims, jewelry, expensive furnishings, rugs, anything
               | better than your basic washer/drier: 100% tax.
               | 
               | Books: Free and subsidized by the government, as many as
               | you want, any book ever written.
               | 
               | Healthcare: Free.
               | 
               | College: Free.
               | 
               | Basically under my plan, as long as you get stuff you
               | need for your family, you pay no tax. If you get stuff
               | you _want for your pleasure_ , you pay tax on it.
               | 
               | How's that regressive?
               | 
               | The only real downside I see is the potential for a
               | massive black market in luxury goods, tobacco and
               | alcohol. But legalizing and taxing pot and prostitution
               | should take some of the sting out of that.
        
               | adwww wrote:
               | So low earners are allowed to eat basic food, but pay
               | astronomical taxes for any luxuries in their life. Which
               | you and I could easily afford.
        
               | noduerme wrote:
               | Well, that's a very glass-half-empty way of looking at
               | it. I'm saying that high earners have to help subsidize
               | lower earners the more luxuries they accrue in their
               | life. It's not the _earning_ after all that makes the
               | difference between rich and poor; that 's why _the
               | wealthiest people in America pay no income tax_. They 're
               | not earning anything, officially. But boy do they
               | _spend_. So maybe, I don 't know, if you're really
               | concerned about people getting that one luxury in life
               | then there could be an exemption, like if you make under
               | $50k a year you get refunded the VAT on $2k of luxury
               | purchases. Ok? But it has to be small enough to prevent
               | the ultra-wealthy from using it as a loophole.
        
               | cstoner wrote:
               | I think you drastically over-estimate what percentage of
               | income the rich spend on luxury goods. People don't stay
               | rich by buying things.
               | 
               | I consider myself pretty high income. If I was just taxed
               | on consumption, I would bet I'd pay probably half as much
               | tax as I do now.
        
               | aj7 wrote:
               | Yep. Luxury goods are at least half aspirational. Until
               | the shortages, always super buys on BMW's with 15k in the
               | Miami-Ft. Lauderdale area.
        
               | gambiting wrote:
               | How is that any different right now?
               | 
               | Low earners drive some shit cars, while you and me can
               | (probably) afford a brand new Audi. How is that fair? /s
               | 
               | >>Which you and I could easily afford.
               | 
               | That's the key part here. You tax those who can afford it
               | the most.
        
               | aj7 wrote:
               | An Audi? Heh heh.
        
               | rkachowski wrote:
               | > Pretty much every other major developed country
               | operates like this
               | 
               |  _cries in German_
        
               | thesimon wrote:
               | Most employees don't need to even submit a tax return as
               | with PAYG your taxes are already collected by your
               | employer.
               | 
               | If you do end up filing your taxes, you can access the
               | prefilled tax statements. Software to do that is free and
               | easy. If you want software advising you on how to get a
               | bigger refund, you'll have to pay maybe $10-20, though
               | the $5 software from Aldi works fine for me.
        
               | w23j wrote:
               | https://www.elster.de/elsterweb/infoseite/belegabruf_(pri
               | vat...
        
               | DocTomoe wrote:
               | Of course, why would you trust a piece of software
               | created by your government to fill out the forms in a way
               | that benefits yourself instead of them?
        
               | w23j wrote:
               | This thread was not about deductions, but about the
               | government pre-filling your tax-returns with data it
               | already has about you. Parent was implying that does not
               | exist in Germany, which isn't true. Or are you actually
               | saying that the government will deliberately fill in
               | wrong values, so that you have to pay higher taxes, even
               | though the prefilled values are visible to you and
               | discrepancies would be obvious (and a huge scandal).
        
               | lexs wrote:
               | As an employee doing your taxes is optional in Germany as
               | taxes are already deducted by the employer.
        
               | xioxox wrote:
               | It can work ok if you're a single person with no
               | children. However, you'll potentially have to pay a lot
               | more tax if you're married where your spouse earns more
               | or less than you. There several other reasons where
               | legally you'll have to complete a tax return (e.g foreign
               | income).
               | 
               | German taxes are really horrible, in general. They expect
               | you to pay in advance for expected untaxed income (based
               | on the previous year's return). Working out the taxes on
               | the income from some ETF is a nightmare, unless your
               | platform does it for you. Unless you really understand
               | the system and can file your own taxes, then low-wage
               | freelance work just doesn't make sense as the cost of
               | doing the taxes can be higher than your income. This
               | means people are trapped into not working.
        
               | hnbad wrote:
               | The fun part about advances is that in the first year
               | they don't have data to set your advances so you have to
               | back pay the taxes for the first year in full after
               | filing the first year's taxes in the second year in
               | addition to now having to pay the advances on that year
               | so even if you saved all the money you expected to have
               | to pay in taxes during the first year you also need to
               | have saved up enough to pay the advances but the more
               | money you made (allowing you to set more money aside),
               | the higher the advances will be.
               | 
               | You can negotiate to have your advances reduced but the
               | government really doesn't like it when businesses
               | (including freelancers and solo entrepreneurs) have a
               | high difference between their advances and the actual
               | taxes. This also goes for declaring your VAT (which
               | depending on how much you make you'll have to do monthly
               | or quarterly as an advance and then alongside your income
               | tax) and while in that case you basically set the advance
               | yourself you'll get in trouble if it doesn't match your
               | actual VAT (difference between charged and paid).
               | 
               | You can file your own taxes and if you're a regular
               | employee there are tons of non-commercial orgs you can go
               | to that will assist you in doing that but if you're a
               | "business" (even if it's just you and you haven't
               | incorporated) they'll often not help you.
               | 
               | BTW the reason you can just forego filing your own taxes
               | as an employee if you just want to be taxed on your wages
               | (and don't have anything else to declare, e.g. interest
               | on savings) is that your employer already had to do the
               | taxes on your wages and benefits for you. So it's not
               | like the government just does them themselves, it's just
               | done by payroll instead of you.
        
               | mikeInAlaska wrote:
               | > Why is the system still this backwards?
               | 
               | Intuit lobbying hard to keep tax rules complex.
        
               | missedthecue wrote:
               | TurboTax is a relatively new product, and they haven't
               | been big lobbyists for their whole existence. Why wasn't
               | the tax process simple before then?
        
               | Linosaurus wrote:
               | TurboTax was first released in 1984, according to
               | Wikipedia.
               | 
               | That's ~20 years before Sweden got everything prefilled
               | for some of the population. As an example.
        
               | aj7 wrote:
               | No. TurboTax has been around for as long as people have
               | had their own computers.
        
               | JSavageOne wrote:
               | Blaming "lobbyists" absolves the politicians of their
               | responsibility. The fault lies with the politicians for
               | creating and perpetuating this broken system.
               | 
               | (copy and pasted from another comment)
        
               | jacobolus wrote:
               | Like anyone else, politicians respond to incentives. US
               | crony capitalism is a large-scale systemic failure, and
               | the tax filing system (and under-resourced IRS) is just
               | one symptom.
               | 
               | If you want a narrow target, you can blame the GOP
               | activists on the US Supreme Court, or if you want to go
               | beyond that, blame the GOP senators/presidents who
               | appointed them, the Federalist Society, the GOP donor
               | base, GOP-aligned media organizations, etc.
               | 
               | Gutting campaign finance restrictions was a vast judicial
               | overreach, performed for partisan advantage and the
               | benefit of corrupt wealthy patrons.
        
               | jbverschoor wrote:
               | There's a word for those incentives.. "bribes"
        
               | jacobolus wrote:
               | The #1 most relevant goal for politicians is to get re-
               | elected. (Personal enrichment is largely orthogonal.)
               | Raising large campaign contributions is of obvious
               | benefit to that effort, and is not directly a bribe per
               | se. But it does have some of the same problems that
               | bribery has.
               | 
               | It's undoubtedly true that some US politicians have
               | gotten bribes, defrauded partners or constituents,
               | embezzled money from their campaigns or the government,
               | used inside information to trade stocks, etc. But even if
               | all of those were impossible, the nature of the US
               | campaign finance system would create plenty of perverse
               | incentives.
        
               | aj7 wrote:
               | Yes. This is well known. They became so rich and powerful
               | they had lobbyists (bag men) to protect their interests.
        
               | briandear wrote:
               | Intuit isn't the problem. Politicians are. See Milton
               | Friedman on this subject. A complicated tax code is used
               | to reward and punish people. The tax code was complex
               | long before Intuit came around.
               | 
               | https://m.youtube.com/watch?v=TruCIPy79w8
        
               | [deleted]
        
               | masklinn wrote:
               | That has nothing to do with the issue at hand. All tax
               | codes are complicated, and you can always spend days
               | minmaxing your taxes (or hire someone to do that for
               | you).
               | 
               | But the US is unique in the developed world as making
               | filing taxes hell even if you don't try to minmax them,
               | and that is primarily due to tax filing companies
               | lobbying against the IRS doing what everybody else does
               | (and secondarily due to the GOP very much wanting filing
               | taxes to be as painful and error prone as possible, and
               | for it to be as expensive as possible for the IRS).
        
               | kwhitefoot wrote:
               | > All tax codes are complicated,
               | 
               | But the US tax code is an order of magnitude larger than
               | the Swedish one. Which probably means that it is several
               | orders of magnitude more complex (however that might be
               | defined).
        
               | bpye wrote:
               | And yet as mentioned earlier in this comment thread, the
               | IRS has already managed to automate this on their side,
               | as they can do an "electronic audit".
        
               | AceyMan wrote:
        
               | efitz wrote:
               | "Capitalism" does not mean "every use of money that I
               | disagree with".
               | 
               | It also does not mean "greedy immoral bastards who sell
               | political influence to the highest bidder".
               | 
               | There are lots of corrupt things about the US government.
               | That's not capitalism; it's corruption. It can happen in
               | any form of government; in the US it just happens to be
               | much more visible.
        
               | imtringued wrote:
               | However, Capitalism inherently rewards corruption. If you
               | are a corrupt politician and earn $10 million through
               | corruption you can invest your money and the capital
               | gains alone will exceed any politician's salary and this
               | is ignoring that you will earn more every single year due
               | to compounding.
               | 
               | You can burn the amazon down and then invest the earned
               | or saved money and economists will tell you, you are
               | doing well and that you have a god given right to that
               | wealth.
               | 
               | Communism doesn't even try to address the root cause,
               | it's actually making the problem worse by concentrating
               | everything at the top.
        
               | LocalH wrote:
               | Almost like all the "isms" are total garbage. The best
               | route forward would be to examine all the "isms", find
               | the parts of each that can be brought together to make a
               | new path forward. Unabashed capitalism is a scourge, just
               | like any other "ism" if left unchecked.
        
               | dragonwriter wrote:
               | > Why is the system still this backwards? Either plain
               | ignorance of there being a superior alternative, or a
               | broken political system that can't get anything done.
               | 
               | Neither. There is awareness of the alternatives, and the
               | political system can get things done for it's real
               | constituents. The problem is a malevolent political
               | system that primarily serves a class whose interests are
               | opposed to the mass of the citizenry, to wit, a narrow
               | capitalist elite.
               | 
               | (People will point to the tax prep industry, it's
               | lobbying, etc., and that is part of the problem; an
               | bigger part, however, is the political faction favoring
               | lower taxes in general for the elites that likes to
               | maximize the perceived pain of taxes for the masses to
               | generate support for elite-favoring tax cuts; they are
               | adamantly opposed to procedural simplification that
               | minimizes the pain they leverage.)
        
               | denton-scratch wrote:
               | > The U.S is unique in forcing its citizens to waste
               | countless hours
               | 
               | It may be unusual, but it's certainly not unique; I have
               | to fill in a tax-return every year, because I receive
               | rental income. Anyone in the UK that receives income that
               | isn't taxed at source by their employer has to complete
               | one.
               | 
               | The last one I completed was 21 pages long, with notes
               | for each page; a lot of the time I spent was scrabbling
               | through my filing cabinet searching for my evidence.
               | 
               | That rental income plus my state pension and bank
               | interest are the only taxable income I receive.
               | 
               | At one time I was a company director, and had to fill in
               | personal tax returns. I folded the company, and returned
               | to salaried employment, taxed at source; it took me a
               | decade to get the tax authorities to stop sending me tax
               | return forms that I was required by law to complete.
        
               | adwww wrote:
               | Even rental income has a fairly generous allowance before
               | you need to file a full tax assessment.
               | 
               | The first PS1,000 is tax free (presumably the cost of
               | admin makes it easier to let that go).
               | 
               | And up to PS2,500 you just have to phone / email HMRC.
        
               | nerdawson wrote:
               | The various allowances are certainly helpful but PS1,000
               | doesn't really factor in when you're dealing with rental
               | income. Almost every landlord will cross that threshold
               | and should expect to fill a return in.
               | 
               | Hearing about how taxes work in other countries makes me
               | grateful for the system we have here.
               | 
               | Most people never have to file a return. The people that
               | do have a more complicated arrangement and probably need
               | to summarise expenses, etc.
        
               | aj7 wrote:
               | Yes. So see my "methodology" above. It is the systematic
               | way for you to do the part that is missing. With various
               | weird-ass forms, this is STILL a lot of work. But it will
               | be substantially correct, where substantially means that
               | the IRS will correct any errors without considering you a
               | miscreant.
        
           | matheusmoreira wrote:
           | Having to spend our own time, money and effort in order to
           | work out how much money we have to pay the government for
           | their crappy low quality services. Just yet another
           | humiliation the government imposes on citizens.
        
           | aj7 wrote:
           | You do not have to guess "what the government knows."
           | Download your income transcript. See the "methodology" I
           | replied above in response to this comment.
        
           | singron wrote:
           | Obviously it's a joke, but if you get it wrong, they send you
           | the right amount and then you pay it (or they pay you). As
           | long as you are close with your on-time payment, the interest
           | is very reasonable on small differences. It's probably
           | cheaper than paying for turbotax if you would have to pay for
           | that.
        
             | taf2 wrote:
             | The best is the 50 cent check in the mail... literally the
             | postage cost more to deliver the return check.
        
               | jahewson wrote:
               | Tax is rounded to the nearest dollar though.
        
               | tymekpavel wrote:
               | I can confirm I've received a check for $0.01 from the
               | IRS. My understanding is it was because of miscalculation
               | of interest owed.
        
             | [deleted]
        
         | Iv wrote:
         | > Ok, so if they can do all that automatically for an
         | "electronic audit" why am I filing a return, just run that
         | thing and send it to me and I can file an exception if there is
         | something on it I disagree with.
         | 
         | That's how it worked for me in France when I was an employee.
         | As a freelancer there is a bit more work, but nothing like the
         | puzzle that tax declaration seems to be in the US.
        
         | moduspol wrote:
         | I had the same situation once (a missed 1099) and my biggest
         | complaint is that they waited almost a year to let me know. And
         | of course by then it was quite late so I owed them even more
         | money!
         | 
         | Even if they can't tell me what numbers they expect when I
         | file, it seems like they could at least let me know within a
         | few weeks if they're pretty sure I missed a 1099. Heck, I
         | typically file at least a month early. They could let me know
         | before April 15 and I could have just fixed it! Ugh.
        
           | zw123456 wrote:
           | Exactly my complaint as well!
           | 
           | They could send me a monthly statement like my city
           | government does. Instead, they wait a year to let me know I
           | slipped up and then charge me interest. Guys, if you know I
           | slipped up now you could have told me a year ago.
        
             | KennyBlanken wrote:
             | This is not purposeful but likely a side effect of them
             | still relying on ancient COBOL mainframes that seem unable
             | to keep up with the growing population (and thus growing
             | number of tax filers.)
        
         | adreamingsoul wrote:
         | This happened to me, except the IRS calculated that I owed an
         | additional 5-figure sum. not all information is sent to the IRS
         | and they don't yet have a way to determine a person's
         | situation. In my case, a form was missing from my filing that
         | provided that context.
        
         | pc86 wrote:
         | Lobby certainly doesn't help but "just tell me what I owe" is
         | not practical or possible, and is an overly simplistic view of
         | everything about the system. Most importantly, the 1099 your
         | client filed telling them you got paid more than $600 was due
         | the same time your taxes were due, so they didn't know about it
         | until after the fact.
         | 
         | The feds have no idea how your deductions (and to a lesser
         | extent, your income) have changed from the previous year. They
         | don't have a full picture of your finances, but you do. In the
         | abstract, with those constraints, the system of "tell us
         | everything we need to know, pay us, and you get in trouble if
         | you lie so egregiously that you get caught" works pretty well.
        
           | jefftk wrote:
           | This is how taxes work in many other countries, and it's how
           | taxes could work here if we were willing to make minor
           | changes. For example, adjusting the deadlines you mention to
           | be sequential would not be a hard change.
        
           | mlyle wrote:
           | > but "just tell me what I owe" is not practical or possible
           | 
           | Note that there's a whole lot of countries that send you a
           | prepared tax return that you adjust if necessary, and most
           | people don't need to. There's no fundamental reason we
           | couldn't do this here.
           | 
           | Indeed, California even did it for a couple years:
           | https://www.taxpolicycenter.org/briefing-book/what-was-
           | exper...
        
           | eyelidlessness wrote:
           | How is it not obvious this is a system designed for abuse
           | favoring the most privileged abusers?
        
             | pc86 wrote:
             | Pretend it's not for a moment and make your argument?
        
           | shados wrote:
           | A pretty damn large portion of people claim the standard
           | deduction. They are paid on W2. Their investments are on
           | 1099s. The cost basis are in supplemental documents that
           | could easily be provided to the IRS in a format they can
           | handle.
           | 
           | Yeah, it doesn't work for everyone. So they could offer it to
           | you, and you have the choice to click "ok", or to click "add
           | additional income and deduction". If your situation is so
           | crazy that neither of those options work, you can then do it
           | the classic/hard mode way with an accountant.
           | 
           | It's how it works in plenty of countries. The US is a bit
           | unique with one of the more complex tax code in the world,
           | but it would still work fine for a large portion of the
           | population.
        
       | jprd wrote:
       | I think we can all agree that discovery is going to be fun and
       | lead us places we can only dream of.
        
       | daniel-cussen wrote:
       | The Turbotax tax.
        
       | soorya3 wrote:
       | This is insane and I get PTSD during tax time. You know simple
       | task of adding a state refund into turbotax took 2 hours.
       | 
       | I wrote to both of the representatives in my state, let's see
       | what I hear back.
        
         | encryptluks2 wrote:
         | If it is anything like my experience they will just add you to
         | their bulk email list, and possibly send you a letter saying
         | thanks for your comments. Unless you pay to play, your ideas
         | will not influence them significantly.
        
       | iosono88 wrote:
        
       | korginator wrote:
       | This is band-aid for a fracture. Suing Intuit does not address
       | the underlying problem.
       | 
       | It's not hard to collect income data automatically. Here in
       | Singapore (as in many other countries) I get a message reminding
       | me to check my tax data before the filing date. I just login and
       | click "Submit". If I forget to do this, I may miss some
       | deductions, but it goes through anyway.
       | 
       | Tax filing can be made simple enough that a layperson can do it
       | without employing an accountant.
        
       | ed_elliott_asc wrote:
       | Is there a way to do your taxes without paying any money?
        
         | Sohcahtoa82 wrote:
         | Doing them yourself is an option, but I prefer to be guided by
         | software.
         | 
         | Credit Karma has an option to do taxes that is completely free,
         | but I tried it once a few years ago and didn't care for it.
         | 
         | I use FreeTaxUSA which offers free federal and $7 state taxes.
         | Cheaper than a meal at Taco Bell.
        
         | ensignavenger wrote:
         | For most folks, CashApp Tax works fine. Its 100% Free. I have
         | used it since it came out (originally Credit Karma Tax).
        
           | Jxl180 wrote:
           | I own an LLC, traded stocks and crypto and CashApp handled it
           | all flawlessly.
        
             | sagarun wrote:
             | Just be a little careful with the state returns on CashApp.
             | It has a bug on handling mortgage interest deductions if
             | your mortgage is over $750000 and the state allows
             | deduction up to $1000000. Double check by filing with other
             | tax software and verify the refund amount is the same. I
             | used freetaxusa.com to get this right.
        
         | aidangrimshaw wrote:
         | I'm working with other contributors on https://ustaxes.org, an
         | open source tax filing webapp
         | https://github.com/ustaxes/UsTaxes.
         | 
         | Currently, many Federal tax forms are supported, as well as tax
         | filing for the state of Illinois. Filing for Oregon and
         | California is under development!
        
         | Someone1234 wrote:
         | In theory, yes.
         | 
         | But few people actually do because it is a painful experience.
         | The IRS' documentation isn't actually bad, it is just that the
         | tax system itself is incredibly (and needlessly) complicated.
         | 
         | For example, you'd need to hand-enter every stock trade (even
         | automated re-investments) even though your broker likely
         | already electronically sent this information to the IRS. Using
         | a digital solution they can often log into your broker and
         | auto-import everything.
         | 
         | For how under-budget the IRS is and how bad the tax system is,
         | they do ok, but the whole thing needs a massive overhaul but
         | there is money in politics keeping it bad in order to profit
         | private companies (plus there's a certain demographic that
         | "hating taxes" is a political position that needs to be kept up
         | with, essentially self-reinforcing-itself).
        
           | junar wrote:
           | > For example, you'd need to hand-enter every stock trade
           | (even automated re-investments) even though your broker
           | likely already electronically sent this information to the
           | IRS.
           | 
           | This is not true for most folks, who can use one of two
           | exceptions that allow summarizing. Exception 1 allows you to
           | simply report totals on Schedule D. Exception 2 has you file
           | Form 8949 with summarized rows, as long as you attach a
           | statement with the detailed transaction info (the brokerage
           | 1099-B generally suffices).
           | 
           | https://www.irs.gov/instructions/i8949#en_US_2021_publink100.
           | ..
           | 
           | These are the very same exceptions that tax software uses.
        
           | crooked-v wrote:
           | Also, one might ask "why doesn't the IRS just send you a pre-
           | filled copy of the forms, and you only correct them if
           | they're wrong?".
           | 
           | The answer is "because Congress passed a law saying they
           | can't".
        
             | zentiggr wrote:
             | Doing the next step of the root cause analysis leads to
             | "Intuit lobbied Congress and the IRS hard enough that they
             | passed a law, and the IRS conspired to change their
             | procedures".
        
               | rootusrootus wrote:
               | Except Intuit hasn't paid anywhere near enough in
               | lobbying money to have that kind of effect. Grover
               | Norquist is the last step in your root cause analysis.
        
           | paulpauper wrote:
           | what is to stop someone from just underreporting and blaming
           | laziness or the process being too complicated. either the
           | govt. audits it themselves or does nothing. the benefit of
           | the doubt is on your side.
        
             | LanceH wrote:
             | Late fee interest and penalties are on their side. It's
             | statutory that you get it right, intent doesn't matter.
        
           | UncleMeat wrote:
           | We used to have to hand enter everything anyway. The auto-
           | import stuff is fairly new for all of the tax filing
           | products. TurboTax also fucks up the auto import for my RSUs.
           | Every single year there are a handful of people on the
           | financial planning groups posting "wtf I got a letter from
           | the government saying I owe $80,000" and it is uniformly
           | because one of these services' autoimport system set all of
           | the cost bases for RSUs to $0.
           | 
           | The end result is that I hand-enter anyway, even when paying
           | $120 to Intuit for the privilege.
        
         | jfengel wrote:
         | If you made under $100,000 from salary and don't otherwise have
         | any complications (like dependents), a form 1040EZ really is
         | simple. There's no reason to use software for that. It's quite
         | straightforward.
         | 
         | If you have deductions, stock sales, a nanny, a business, etc
         | then you need the regular 1040 and various schedules, and those
         | are all complex enough that you'd probably benefit from
         | software. It's not absolutely required, but there are enough
         | ways to do it wrong (like adding up the wrong lines) that the
         | peace of mind alone is probably worth it to you.
        
           | drdec wrote:
           | FYI, the 1040EZ form no longer exists. It was eliminated in
           | the name of simplifying the forms (don't ask me how that's
           | supposed to work).
        
             | quadrifoliate wrote:
             | > the 1040EZ form no longer exists
             | 
             | That is wild. I remember using it for my first job, and
             | yep, it took me all of a few hours to fill it out by hand
             | and mail it in.
        
               | astura wrote:
               | A few hours? HOURS? The 1040EZ was like 6 questions, it
               | shouldn't have to take you more than 10 minutes.
        
             | jfengel wrote:
             | Oops. Damn. Sorry for the bad advice. Thank you for the
             | correction.
        
         | [deleted]
        
         | ohples wrote:
        
         | bombcar wrote:
         | If your tax situation doesn't change much from year to year,
         | you can have a CPA or even TurboTax do this years, and next
         | year fill out the new forms based on the new numbers.
        
         | daniel-cussen wrote:
         | No, Turbotax wants you to pay a taxes to Intuit to pay taxes to
         | the IRS.
        
         | nonameiguess wrote:
         | You can go marry an Air Force officer. Military installations
         | offer free professional preparation services to anyone
         | stationed at the installation.
        
         | mindslight wrote:
         | Just pirate TurboTax. Torrent it, set up a fresh windows VM
         | with Internet access via VPN, install/update turbotax, crack it
         | to get the state version, make sure it's got live versions of
         | all the forms you need, disconnect Internet access (never to be
         | reconnected), copy previous year's data files to VM, do taxes,
         | print out and file by mail, copy data files off to long term
         | storage, save VM image in case you need to revisit any time
         | soon.
         | 
         | Sure, it's a bit tedious. But short of a privacy-preserving
         | libre solution or just doing them manually with fillable PDFs,
         | you'd have to do most of that isolation prepwork anyway. So
         | fuck 'em.
         | 
         | P.S. The directions for modifying .NET assemblies to crack
         | TurboTax are simple and easily followed by anyone with basic
         | programming skill. So if you're fine trusting Intuit you could
         | obtain the installation files from them directly, crack it
         | yourself, and even have e-filing capability from what I
         | understand.
        
           | Jxl180 wrote:
           | Or just use CashApp Tax. Your procedure makes it sound like
           | Turbo Tax is the only game in town. Turbo Tax isn't worth any
           | of the effort you mentioned.
        
             | mindslight wrote:
             | TurboTax is one of the few pieces of tax software meant for
             | offline use, thus letting you keep your personal
             | information from entering the permanent records of
             | surveillance valley.
             | 
             | Just quickly looking at CashApp Tax, it appears it is an
             | Android app that likely will want network access to
             | function. If that meets your requirements, good for you.
             | But it doesn't meet mine. I'd also rather use the same
             | software year to year so that information is carried
             | forward, rather than being subject to whichever way the
             | startup winds blow.
        
               | Jxl180 wrote:
               | CashApp Tax is Credit Karma Tax that was bought by
               | Square. Everything transferred from previous years and
               | Square/Block Inc is publicly traded corporation with a
               | ~$85 billion market cap so I'm not sure what you mean by
               | "whichever way the startup winds blow."
               | 
               | Furthermore -- it's your tax records. As soon as the
               | government receives them they enter the permanent records
               | of surveillance valley.
        
               | mindslight wrote:
               | "Cash.app" had no name recognition for me and frankly the
               | name sounds gimmicky. I hassumed it was some fly by night
               | thing, but okay, thanks for informing me it has a longer
               | history and large company behind it. Still, being free,
               | it either presently has a revenue strategy (ie commercial
               | surveillance), or it will inevitably pivot to one down
               | the line.
               | 
               | > _As soon as the government receives them they enter the
               | permanent records of surveillance valley._
               | 
               | Uh no, US tax records are not public data, nor available
               | for the surveillance industry to buy AFAIK. It's
               | unavoidable that the government gets them, but the fewer
               | parties that get mine the better.
        
         | JumpCrisscross wrote:
         | > _Is there a way to do your taxes without paying any money?_
         | 
         | Do them yourself. The IRS has guidance and resources for those
         | who are interested [1].
         | 
         | [1] https://www.irs.gov/filing/free-file-do-your-federal-
         | taxes-f...
        
           | lastofthemojito wrote:
           | You can absolutely do your own taxes, either on paper and
           | mail the forms or (possibly) via the Free File Fillable forms
           | mentioned on the page you linked (as long as you don't hit a
           | corner case). The Free File Fillable forms page [0] says
           | "Make sure we fully support the forms you need" and links to
           | another page with a lengthy list of limitations [1].
           | 
           | So yeah, we're in a place where the IRS says taxpayers
           | "should file electronically with direct deposit if at all
           | possible" [2] but also informs taxpayers that not everyone
           | can use the IRS's forms to file electronically.
           | 
           | 0: https://www.irs.gov/e-file-providers/free-file-fillable-
           | form...
           | 
           | 1: https://www.irs.gov/e-file-providers/free-file-fillable-
           | form...
           | 
           | 2: https://www.irs.gov/newsroom/irs-begins-2022-tax-season-
           | urge...
        
             | CaptainNegative wrote:
             | Among unsupported forms, the validation step in Free
             | Fillable Forms also has a number or bugs that prevents
             | filing due to phantom arithmetic errors. It's beyond
             | frustrating filling out everything on FFF, then needing to
             | copy everything onto a third party service just to pay for
             | the privilege of having my data harvested by a shady
             | company and electronically filed exactly as it would have
             | otherwise. The current situation is unworkable.
        
         | robotcookies wrote:
         | Yes, I used to file taxes with paper forms from the IRS years
         | ago and this is free. There isn't even an income limit to do it
         | this way as far as I know. But of course it's more of a hassle
         | than doing it online as you have to buy stamps, go to the post
         | office, etc.
        
         | munk-a wrote:
         | It is quite possible to do them yourself especially if your
         | taxes are relatively simple - and in a lot of other countries
         | you'll just be mailed a bill or credit depending on how much
         | your withholding was along with a receipt to review if you
         | think they messed up somehow. American and Canada are held
         | hostage by tax software lobbyists though.
        
       | foxyv wrote:
       | Did my taxes this year using TurboTax like always. Sold some
       | stocks this year and all of a sudden I am paying $90 for TurboTax
       | "Premium" to put a couple additional entries in the 1040. What a
       | racket. Next year I'm going to file using something else. This
       | has gone on too long.
        
         | bombcar wrote:
         | Dirty secret: all versions of TurboTax have all the _forms_ -
         | you can just switch to form mode and enter the values yourself
         | into the forms.
        
           | munk-a wrote:
           | Even dirtier secret - the government is legally required to
           | publish all the forms in an accessible manner. You can just
           | download them without ever even installing any Intuit
           | software.
           | 
           | Just to back this up with facts - here are the braille and
           | spanish language offerings which took all of two seconds of
           | googling:
           | 
           | https://www.irs.gov/forms-pubs/irs-tax-forms-in-braille-
           | and-...
           | 
           | https://apps.irs.gov/app/picklist/list/formsPublications.htm.
           | ..
        
             | peter303 wrote:
             | Note quite all. The IRS wont accept a downloaded 1096.
        
             | bombcar wrote:
             | Yep, though arguably the base turbotax is helpful in
             | filling them out (but after the first year or so you could
             | just imitate the previous year's filings).
        
         | bluGill wrote:
         | Let me know if you find anyone that is better. I'm sick of
         | TaxAct premium for the same reason.
         | 
         | I'm ready to go back to doing my taxes by hand and mailing them
         | in. (I'm old enough to remember doing that - it is faster than
         | doing it on the computer except for the one year I forgot to
         | copy line 13 of form 1234A to line 56b of form 9876B) So many
         | dark patters where the software is pretending to take time
         | doing a complex calculation that takes a computer a couple
         | nanoseconds, not to mention all the time to skip over things
         | that don't apply to me.
        
           | colinmhayes wrote:
           | I'll second free tax usa. Quick process, $10.
        
           | rajup wrote:
           | FreeTaxUsa is great for most usecases, including stock sales.
           | It is free for federal filing, state is a bit extra ($10)
        
             | ThatPlayer wrote:
             | I used them for the first time and it was fine. But it
             | doesn't look like they support the state form I plan to use
             | for this year. Already contacted them asking for it next
             | year, but didn't receive a concrete answer.
        
             | davchana wrote:
             | Plus until now they always have 10% off with code FTUSA10
        
             | 1991g wrote:
             | I also would vote for FreeTaxUSA, they have served me well.
             | I do however note the irony of them being named FreeTaxUSA
             | and in the same breath, mentioning that it costs to file.
             | Especially given the context of the thread in general.
        
             | tomc1985 wrote:
             | FreeTaxUsa forced me to manually enter my stock last year,
             | I had to provide a supplemental PDF form outlining each
             | transaction.
             | 
             | Obnoxiously, this year TurboTax's integration with Binance
             | is broken. I haven't checked in a few weeks but it won't
             | accept Binance CSV's either. This needs to be fixed soon.
        
               | pvarangot wrote:
               | TuboTax web or the desktop application? Last year their
               | Schwab integration was broken on the web version but not
               | on the desktop version.
        
               | tomc1985 wrote:
               | The web version
        
             | oh_sigh wrote:
             | I like them for the most part, but FTU tricked me this year
             | by forcing me to upload certain forms for a state EV tax
             | credit, and then just completely ignoring those uploaded
             | forms and not sending them to my state tax agency. I only
             | noticed it because I went over the final packet of state
             | tax forms and noticed the ones I uploaded weren't included.
        
           | foxyv wrote:
           | To be honest, I think I may just do it all myself like I did
           | back in the early days. I'm a single, high income, earner
           | with few complicated investments and no state income taxes. I
           | may as well just fill out a 1040 myself at this point.
           | 
           | TurboTax tried to double count my Benevity sales anyways and
           | I had to catch it when it messed up the 1040. Why am I paying
           | for software? If I get to the point I can't handle it myself
           | anymore I'll just start paying an accountant.
        
         | Osiris wrote:
         | I use FreeTaxUsa.com. It's free for federal filing.
        
         | tzs wrote:
         | I used Cash App Taxes. I sold some mutual fund shares in 2021
         | and it handled it fine.
         | 
         | Here's a page describing forms and situations it does not
         | handle [1].
         | 
         | One thing that might annoy some people is that to login to the
         | Cash App Taxes website you must use their mobile app. The
         | website shows a QR code which you scan from the mobile app.
         | 
         | It uses the approach of asking you various questions in order
         | to figure out what forms it thinks you need to file, which is
         | an approach that some people do not like.
         | 
         | If there is a form you know you have to do that it missed or
         | you have a 1099-something that it has not asked you to enter it
         | took me a little while to figure out how to deal with that.
         | What you do is type the name of the form into the help search
         | box. One of the results will be a link to take you directly to
         | the page that deals with that form.
         | 
         | [1] https://taxeshelp.cash.app/s/article/Forms-and-situations-
         | Ca...
        
           | sagarun wrote:
           | Cash App taxes has a bug where mortgage interest deduction is
           | not handled properly with state vs federal. If your mortgage
           | is more than 750000$ and your state is California or a state
           | allows deduction up to a million $ in mortgage interest then
           | you will end up getting a lower refund.
           | 
           | I'd double check by filing with another software just to make
           | sure (i.e https://www.freetaxusa.com/)
        
             | pilom wrote:
             | Cash app also couldn't file my ev credit correctly. Support
             | was significantly worse than useless. Ended up going with
             | Free Tax USA this year but I've also seen bugs with them.
        
           | aceazzameen wrote:
           | I filed with them last year when it was still Credit Karma
           | Taxes. The process was painless and my first time not filing
           | with Turbo Tax. I was going to file with them again, but the
           | moment I saw I needed to install an app to scan a QR code, I
           | bailed. No thanks. I don't need their app on my devices.
           | 
           | So this year, I prepared my taxes with FreeTaxUSA instead. So
           | far I love it. It required me to manually input a lot of
           | information that was auto-imported on TT and CK, which isn't
           | as terrible as I thought. Overall I'm finding the UX to be
           | very clean and clear. I haven't had to Google answers to
           | vague questions or unique situations like I had to with the
           | others. It even caught an error that I'm having to fix with
           | my bank, and told me exactly how to fix it. I'm very
           | impressed with FreeTaxUSA so far. Hopefully they never sell
           | out.
        
       | syastrov wrote:
       | I wrote an article [1] a few years ago to vent about how messed
       | up and backward the experience has been for especially foreign
       | filers. The "free" options provided by commercial companies are
       | as TFA states unusable by large portions of the population.
       | Besides those, the IRS provides "free fillable forms online",
       | which looks like a scam website and also has many limitations
       | (one of which, in my case, was that you must provide a US phone
       | number). It's all beautifully messed up.
       | 
       | So there wouldn't be this problem with Intuit if the government
       | got their shit together. Why not spend efforts to improve the
       | system rather than litigation? The answer? Lobbying.
       | 
       | This is all in stark contrast to the system which exists in
       | Denmark, where I live, where taxes are all filed online and the
       | government automatically fetches most information so that you
       | mostly only need to review it and add deductions.
       | 
       | [1] https://medium.com/@syastrov/us-tax-system-a-fractal-of-
       | bad-...
        
       | daniel-cussen wrote:
       | Turbotax is a tax on paying tax.
       | 
       | I like paying taxes _to the State_ because that money goes to
       | military and entitlements, and keeping the lights on. I do not
       | agree with every military action, or every entitlement, but it 's
       | not my place to decide what direction the country goes in, it is
       | my place to push.
       | 
       | I wonder how many orphanages Intuit runs, how much welfare they
       | pay, where the bases they operate are, how many men they've put
       | on the moon, to have the gall to demand taxes. That is an
       | literally an act of sedition, literally a racket.
        
       | dang wrote:
       | Related:
       | 
       | https://storage.courtlistener.com/recap/gov.uscourts.cand.39...
       | 
       | https://arstechnica.com/tech-policy/2022/03/turbotax-maker-s...
       | (via https://news.ycombinator.com/item?id=30846884, but we've
       | merged the threads)
        
       | pianoben wrote:
       | Fucking _finally_!
       | 
       | Someday our descendants will have sane and automatic filing like
       | the rest of the developed world; I can only hope to live long
       | enough to see the death of this stupid industry.
        
       | Arubis wrote:
       | Many users of this site aren't especially price-sensitive; if
       | you're one of them and in the habit of using tax filing software,
       | I urge you to consider hiring an accountant for your taxes.
       | You'll pay a couple hundred bucks, which may be offset by the CPA
       | finding deductions or credits that your software didn't
       | highlight, and that money goes to someone you've picked out and
       | hired rather than a corp that'll use your money to lobby against
       | your best interests. And you'll save a bunch of time, which may
       | be enough to make this worthwhile in and of itself for you!
        
         | quadrifoliate wrote:
         | What are some concrete examples of these deductions that people
         | keep talking about? I'd actually like to know, so I can perhaps
         | convince myself to get a CPA next year. The only deductions I
         | have seen as a salaried person with some minor stock trades are
         | things for home heating credits and such which I am always
         | ineligible for on the basis of income.
        
         | daniel-cussen wrote:
         | Just mail your taxes in with a letter and a stamp, come on!
        
       | macinjosh wrote:
       | Pro tip: when I was doing my taxes TurboTax asked me for a
       | survey. I complained bitterly about their lobbying. I was
       | suddenly able to file fed and state free.
        
       | gjsman-1000 wrote:
       | > "In some TurboTax ads, "almost every word spoken is the word
       | 'free.'"
       | 
       | Really? There are some TurboTax ads where _every_ word spoken is
       | the word  'free.' ;)
        
         | MBCook wrote:
         | Wait, it's NOT free free free free?
        
         | throwawaygh wrote:
         | Almost. I thought that was hyperbole too, but... holy shit,
         | they aren't kidding:
         | 
         | 1. https://www.tvcommercialad.com/watch/XosLKPV
         | 
         | 2. https://www.youtube.com/watch?v=1qDZA7j4rXU
         | 
         | 3. https://www.youtube.com/watch?v=jZV7l3AD5Nc
        
       | kn0where wrote:
       | Good, but the situation is so much worse than just this. Most
       | Americans could just use the IRS Free File system, which the
       | article mentions, instead of ever giving money to Intuit or H&R
       | Block ever again. But we don't heavily advertise that system,
       | because that would encourage people to use it, and if you're
       | going that far, you might as well let the IRS build its own tax
       | software with all your information prefilled like they do in
       | civilized countries.
       | 
       | As long as the job of Congress is to kiss the ass of every
       | powerful industry lobby, we won't have good things.
        
         | itslennysfault wrote:
         | .... and just to be completely clear, this is only the way it
         | is because of HUGE lobbying spends by Intuit.
        
           | greeneggs wrote:
           | That's not exactly true. Free filing is also opposed by
           | influential conservatives. The argument goes that if paying
           | taxes were easier, then people wouldn't pay as much attention
           | and oppose taxes as much. (I'm paraphrasing as best I can.)
           | 
           | Here's an old article from 2013 on it, for example, and a
           | letter from Grover Norquist (sponsor of the Taxpayer
           | Protection Pledge) and others.
           | 
           | https://www.propublica.org/article/how-the-maker-of-
           | turbotax...
           | 
           | https://www.atr.org/taxpayer-advocates-issue-joint-free-
           | file...
           | 
           | https://en.wikipedia.org/wiki/Americans_for_Tax_Reform#Taxpa.
           | ..
        
           | saddestcatever wrote:
           | IMO: The mind blowing element, is that in the grand scheme of
           | things _It 's not actually that much money_.
           | 
           | I'm not sure if anyone knows the true amount, but estimates
           | put the number spent on lobbying around a few million
           | dollars. Opensecrets.org estimated ~$3.2m lobbying in 2021.
           | 
           | https://www.opensecrets.org/federal-
           | lobbying/clients/summary...
           | 
           | For a company that makes $2 BILLION dollars a year, the
           | amount they actually spend lobbying and otherwise influencing
           | governments is shockingly small.
        
             | throwaway81523 wrote:
             | That is called the
             | https://en.wikipedia.org/wiki/Tullock_paradox .
        
             | _jal wrote:
             | Politicians are surprisingly cheap, so long as you're
             | talking about topics that don't get a lot of press.
             | 
             | And thanks to _Citizens United_ and similar decisions that
             | have driven up the cost of US elections, US pols are very
             | expensive compared to their counterparts in other
             | countries.
             | 
             | It does make me wonder about the efficacy of standing up a
             | lobbying fund to lobby to Do The Right Thing about
             | something. This would be a prime example - I would happily
             | pay $100 to compete with Intuit's lobbying here. I'm also
             | certain there are 31,999 other people in the US who feel
             | the same way.
             | 
             | I just don't have the energy to do the work of learning how
             | to set up the corporate structure around that to make it
             | legal.
        
               | l33t2328 wrote:
               | > standing up a lobbying fund to lobby to Do The Right
               | Thing about something. This would be a prime example - I
               | would happily pay $100 to compete with Intuit's lobbying
               | here. I'm also certain there are 31,999 other people in
               | the US who feel the same way.
               | 
               | Congratulations, you just independently invented the
               | concept of a Political Action Committee.
        
               | glenstein wrote:
               | I completely agree that politicians are not cheap at all.
               | The reality is that so much of the money that's invested
               | in influencing politicians is through means other than
               | campaign contributions.
               | 
               | It's through season tickets to the network of friends
               | that know the politician, it's through donations to the
               | university that gets their child into college, it's
               | through pacs and issue groups, it's through lining up and
               | bundling donors to max out their individual donations to
               | a politician's preferred presidential candidate, it's
               | through flying them out to special events, it's through
               | hiring their best friend, it's through investing in their
               | brother in law's new business, it's through buying things
               | at their husband or wife's charity auction, it's through
               | arranging a job for them after they retire from politics,
               | it's through finding them a buyer for their investment
               | property, it's through an entire network of investments
               | one or two degrees removed from the politician.
               | 
               | The only sliver of that that people typically cite is the
               | amount directly spent on campaign contributions which (1)
               | mistakenly makes it seem like politicians are cheap and
               | (2) is underwhelming, to people who cite those numbers
               | sincerely believing that that's the only economic
               | dimension to political influence.
        
         | lelandfe wrote:
         | TurboTax and H&R Block aren't part of Free File as of 2021, so
         | the supported software under the program are now things most
         | Americans wouldn't recognize, either.
         | 
         | The problem truly is advertising, like you said. The government
         | just cannot out-advertise companies that are doing $9 billion
         | in revenue.
        
           | dboreham wrote:
           | Of course the government could out-advertise them. It'd be
           | like Google advertising its own products on its search engine
           | -- the government controls all end-user tax related
           | communications.
           | 
           | They just don't want to because someone bribed them to not do
           | so.
        
             | lelandfe wrote:
             | _Everyone_ uses Google. How many more people see TurboTax
             | 's ads vs. government "tax related communications?"
        
               | notwedtm wrote:
               | Every single tax payer when they get paid, or when they
               | pay their tax bill each year.
        
               | lelandfe wrote:
               | The years in which I've had a refund, I have had the
               | amount directly deposited. The years in which I've paid
               | have been through a software portal that supports credit
               | card payment.
               | 
               | I, personally, have no idea what the government's
               | "communications" have been regarding taxes outside of
               | news articles.
               | 
               | Either way, though, this is no competition for a year's
               | worth of massive advertising campaigns.
        
         | sillysaurusx wrote:
         | I tried to make this point in the other thread, so let me take
         | another stab at it here.
         | 
         | You say this like it's just a thing that people can do. But the
         | people you're telling to "Just do this" have already been
         | trained to be terrified of the IRS. Many of them are currently
         | paying huge fines due to missing their returns in prior years.
         | Any small mistake can hang you when you're impoverished,
         | precisely because you don't have any room for error.
         | 
         | "Most Americans" is an umbrella that contains mostly service
         | workers. The people that serve you food, bag your groceries,
         | drive your amazon purchases, and so on. If you've spent a lot
         | of time with people like this, I encourage you to ask them
         | "Hey, do you pay someone to do your taxes, or do you do it
         | yourself? Why?"
         | 
         | I'm pretty sure the conversation will go "I pay. I just don't
         | want to worry about it." And that "worry" is because they've
         | been hit hard in the wallet, because the (American) government
         | is not friendly when it comes to messing up your taxes.
         | 
         | If I am mistaken about this, I would like to know. But this is
         | true of my extended family, and I'm pretty sure it's true for
         | most of their friends.
        
           | dreamcompiler wrote:
           | This is quite true, even excluding service workers. Every tax
           | season I have conversations with bright, well-to-do, college-
           | educated people who seem to live in terminal fear of the IRS.
           | They're absolutely terrified that if they get one tiny thing
           | wrong during the tax filing process, they will immediately be
           | arrested and shipped off to prison. So they always pay
           | someone to file their taxes, even if they're simple. It's
           | mind-boggling.
           | 
           | The irony is that -- as you said -- the IRS hits people of
           | modest income harder, because the IRS doesn't have the
           | resources to take on many battles with wealthy people who can
           | afford lawyers. This means the IRS mostly goes after easy
           | targets who won't fight back. Yet another tax on being poor.
        
           | wolverine876 wrote:
           | > But the people you're telling to "Just do this" have
           | already been trained to be terrified of the IRS. Many of them
           | are currently paying huge fines due to missing their returns
           | in prior years. Any small mistake can hang you when you're
           | impoverished, precisely because you don't have any room for
           | error.
           | 
           | Why do you say that? I've never encountered people who were
           | terrified nor have I read about it. How many people are
           | paying "huge fines"? AFAIK, the IRS's audit capacity is
           | greatly underfunded.
        
             | sillysaurusx wrote:
             | My wife and her parents. Not her sisters though,
             | admittedly.
             | 
             | It's possible that I'm just reacting to a biased sample of
             | people. But my impression was that this is a common mindset
             | for a nontrivial subset of the population. Being afraid of
             | doing something wrong on your government forms isn't really
             | an irrational fear. Anyone who's owned a car in Chicago
             | will tell you that the city's goal is to extract as many
             | thousands of dollars from you as possible - it was still
             | one of my worst financial decisions of all time. And that
             | wasn't even taxes.
             | 
             | The broader point is that "dealing with the government" is
             | a big messy bucket that people usually want to pay a
             | janitorial service to dispose of. Even things like "being
             | reminded to file your taxes right now" is valuable in that
             | situation. Most people don't have a clue what day they need
             | to file by. They don't learn it in school, and their
             | parents either don't know or didn't bother to teach them.
        
               | astura wrote:
               | >Most people don't have a clue what day they need to file
               | by.
               | 
               | Every single wall or desk calendar I've ever seen has
               | "Tax Day" labeled on it.
        
               | wolverine876 wrote:
               | > Most people don't have a clue what day they need to
               | file by.
               | 
               | That does not at all match my experience, it's widely
               | discussed every year, and I wonder how many returns are
               | late.
        
               | sillysaurusx wrote:
               | Alright. Thanks for the data point.
               | 
               | But you left out income. The idea here is that HN users
               | tend to be a biased sample. Most of us aren't
               | impoverished.
               | 
               | I would bet that your family's discussions are due to the
               | fact that you have a stable, fully functional family.
               | Most people outside of tech aren't as fortunate.
               | 
               | If I'm mistaken about this, and your family isn't middle
               | class or higher, then that's an important data point
               | though.
        
               | wolverine876 wrote:
               | I'm not talking about my family discussions. Just turn on
               | the local news and you'll see them discuss it, including
               | the annual segment about the lines at the post office.
        
               | sillysaurusx wrote:
               | Ah.
               | 
               | For what it's worth -- and it's possible I'm living in a
               | bubble, but -- the only family member I know that watches
               | the news is my dad. Everyone else quietly switched to
               | netflix long ago. The news mostly comes from the drama of
               | the day; things that show up on facebook. (The recent
               | Chris Rock drama, and other nonsense like that.)
               | 
               | I recently followed CBS on TikTok though, to my surprise.
               | They had some of the best coverage of the Ukraine war
               | I've seen. I even joked to my wife that the circle of
               | life was complete: not only have I never watched the news
               | in years, and not only does my dad have no clue what
               | tiktok is, but now I'm watching the news on tiktok.
               | 
               | Thanks for pointing out that the news is sometimes a
               | valuable thing to keep on one's radar.
        
               | ghaff wrote:
               | April 15 (ok. Sometimes a few days later based on
               | holidays.) is pretty engrained into the minds of adult
               | Americans who pay taxes. I have rarely watched tv news in
               | years and don't even get it any longer. But I can pretty
               | much guarantee if you asked a bunch of middle class
               | adults when tax day is, an overwhelming majority would
               | tell you the correct answer.
        
               | wolverine876 wrote:
               | FWIW, I don't watch local news; I read it online. But
               | I've seen studies showing that it's still the most
               | popular primary source of news.
        
               | astura wrote:
               | Wtf?!
               | 
               | I grew up impoverished. Impoverished people talk about
               | tax filing time way, way more than well off people
               | because they need the money (refund) much more. A very
               | pleasant memory of my early childhood was at my aunt's
               | house celebrating her tax refund with her by making
               | strombolis.
        
           | creato wrote:
           | What are you actually referring to? In my experience, it
           | takes a pretty serious mistake to get charged a fine (it's
           | never happened to me despite mistakes). The IRS just charges
           | (fairly reasonable) interest if a mistake results in
           | underpayment. And IIRC, they pay interest to you when you
           | overpay too.
        
             | sillysaurusx wrote:
             | Much of my experience may have been shaped by my
             | experiences with Chicago. I vividly remember how painful it
             | was to have to call them up every month in order to pay
             | them. It was 2016, and I forget exactly what the reason
             | was. But autopay was somehow sufficiently painful to set up
             | that the path of least resistance was to set a reminder in
             | my phone of "Pay taxes to city" and deal with sitting on
             | hold.
             | 
             | If it sounds unbelievable, I don't blame you at all. I
             | wouldn't have believed it myself until seeing just how
             | Kafkaesque "dealing with the government" can be. Especially
             | when penalties are involved.
             | 
             | For the rest of my family, it's a little awkward to find
             | out. It's mostly on my wife's side; my father was always
             | very fastidious about taxes, as most families of most HN
             | readers probably are. I only wanted to point out that
             | there's a large number of people where this isn't true.
             | 
             | I'll try to dig up direct answers for you. Thankfully most
             | of this pain has been not-mine for many years now.
        
               | creato wrote:
               | I think most of the fear of the IRS comes from rumors
               | like your post.
               | 
               | I think in reality, a way to get the "civilized country"
               | (as referred to by another poster) tax experience is just
               | file an incomplete return, the IRS will bill you the
               | correct amount along with a negligible "fee" (interest) a
               | few weeks or months later.
               | 
               | Maybe doing this repeatedly would upset the IRS, I don't
               | know. But it definitely works a few times without issue.
               | 
               | That said, I wouldn't do this on purpose :)
        
               | semiquaver wrote:
               | Out of curiosity, what monthly tax did you pay to
               | Chicago? The city does not levy income or property tax.
               | Most people will only ever pay Chicago sales tax or
               | things like a yearly "city sticker" car license fee.
               | 
               | https://www.chicago.gov/city/en/depts/fin/supp_info/reven
               | ue/...
        
         | judge2020 wrote:
         | Isn't the free file system simply asking e-file companies to
         | offer a free program to qualifying customers? I thought that
         | the IRS didn't actually run their own filling system/website
         | for citizens.
        
           | WrtCdEvrydy wrote:
           | Yes, here's the list ->
           | https://apps.irs.gov/app/freeFile/browse-all-offers/
           | 
           | However, those options aren't advertised and these companies
           | like to do "Free" but then upgrade you as you fill out
           | options.
        
         | ericmcer wrote:
         | I was not allowed to use the free file because I made >70k if I
         | recall correctly. It seems really stupid and arbitrary to not
         | allow people above a certain income to access software that
         | helps them fill out govt. forms. Only lower income people
         | deserve help filling out their taxes??! Bizarre.
        
           | bityard wrote:
           | People who make more than the median tend to have more
           | complicated tax situations due to investing, owning business,
           | owning a house, and so forth, and generally have more
           | complicated finances.
           | 
           | So it's not totally arbitrary, but I certainly agree that the
           | US tax system is messed up.
        
           | PaulDavisThe1st wrote:
           | free file fillable forms is available to you (I use it). It's
           | not a hand-holder, but it does get the job done (and it does
           | quite a bit of the math for you).
        
             | peter303 wrote:
             | Its possible to miss a form or worksheet with FFFF. A good
             | guess uses the previous years forms.
        
           | manholio wrote:
           | > Bizarre
           | 
           | Follow the lobby money.
        
           | smordistan wrote:
           | *edited for flagging
        
             | thebean11 wrote:
             | What's your point though? Does the free file system not
             | work correctly or something?
        
               | [deleted]
        
       | neycoda wrote:
       | Yay!
        
       | webXL wrote:
       | This is about as close as you can get to the government suing
       | itself.
       | 
       | Turbotax is the dominant player in an industry created by the
       | government. Tax prep fees are just another tax.
        
       | AdmiralAsshat wrote:
       | Not just TurboTax, H&R Block does this shit as well.
       | 
       | "File your taxes free! Oh, you have to file an HSA contribution?
       | Sorry, you'll have to buy H&R Block DELUXE ($79.99) to do that!"
       | 
       | Kinda feels like blackmail, really. If I _don 't_ file my HSA
       | contribution I'm technically committing fraud, right?
        
         | zaphod12 wrote:
         | Not sure why you're including the word 'technically,' in there
         | - you are clearly and definitely committing tax fraud if you
         | knowingly fail to include all of your financial information.
        
           | bombcar wrote:
           | You could do it the hard way by doing the taxes in the app,
           | printing it out, and then modifying the forms as necessary.
           | 
           | But the companies know exactly how much to charge you so you
           | avoid the hassle; though I won't shell out for state e-filing
           | when I can print and mail.
        
             | throwaway48375 wrote:
             | >though I won't shell out for state e-filing when I can
             | print and mail.
             | 
             | This is pretty much the only reason I own stamps.
        
         | mywittyname wrote:
         | > If I don't file my HSA contribution I'm technically
         | committing fraud, right?
         | 
         | The IRS will send you a corrected tax return, you sign it and
         | mail them a check and you'll hear nothing from them again.
         | Maybe you didn't get the form, or didn't understand the
         | software, etc, etc. There are lots of honest ways to screw up
         | your taxes. The IRS isn't going to assume fraud unless you
         | refuse to pay them when they point it out.
         | 
         | I've screwed up my taxes a lot of times. Not maliciously, but
         | not having all of my forms, I've had clients report paying me a
         | different amount than they told the IRS, forgot stock trades I
         | made, etc. Every time, they've sent a letter asking to pay a
         | balance, plus maybe a small fee, and all is good.
        
           | pkulak wrote:
           | I wonder if this is a backdoor into having the IRS mail you
           | your completed form to sign and send back, like many other
           | countries do. Just file a 1040-EZ every year with only your
           | personal details and everything else zeroed out, and then
           | look over what comes back in 6 months. :D
        
             | junar wrote:
             | Would not recommend. If you happen to owe, you would most
             | likely incur a 20% accuracy-related penalty. Also, interest
             | accrues from the filing deadline on both the unpaid tax and
             | the penalty.
             | 
             | https://www.irs.gov/payments/accuracy-related-penalty
        
       | notch656a wrote:
       | The fact that our government doesn't have the collective
       | intelligence to just mail the tax bill using the information it
       | already knows, with the option for the recipient to submit
       | corrections/deductions, is a testament to the utter failure of
       | governance in the US. Fortunately having an ineffective
       | government can often be a feature instead of a bug.
        
         | bombcar wrote:
         | The IRS wants to do it, they already have all the software
         | internally to do it, they're legally barred from doing it.
         | 
         | It's nuts. Intuit isn't worth that much.
        
           | sidewndr46 wrote:
           | My understanding is that most Western European get what
           | amounts to a "final bill" for the previous year sometime
           | early on each year. It shows what you owe. If you don't want
           | to contest it, you just pay it and you're done.
           | 
           | The fact that our government has made such a process for
           | fulfilling a legal obligation speaks volumes about the mafia-
           | like nature of our federal government.
           | 
           | I pay lots of property tax where I live. But its just a bill.
           | I can and sometimes do dispute the amount owed. But imagine
           | if each year instead of that process I had to hire an
           | independent team to determine what I owe, make a case for
           | that, then submit that to my local tax authority. That's
           | basically what the IRS does with individuals.
        
         | itslennysfault wrote:
         | Blame Intuit for that one too. They're the ones that have spent
         | millions to lobby to keep it this way.
        
           | dudul wrote:
           | Or blame the people who take the money and bend over in front
           | of lobbies.
        
             | parineum wrote:
             | You're dangerously closing to blaming voters for electing
             | these people. I don't want it to be my fault...
        
         | tomrod wrote:
         | > Fortunately having an ineffective government can often be a
         | feature instead of a bug.
         | 
         | Not in a free society. An ineffective government is a
         | conspicuous drain.
        
         | ajsnigrutin wrote:
         | In slovenia, this is done for "normal people" (people who are
         | employed by companies (LLC, etc.), because companies have to
         | fill out paycheck reports to the government). If you win
         | something (eg lottery), the prize-giver has to report that too.
         | You have to only fill out the form if you have any younger kids
         | (tax benefit, can be done online on a governments website), and
         | you're done. Then you just get the yearly report and a bill in
         | the mail.
         | 
         | If you're an eg. independent contractor, you have to fill out a
         | full report (income, expenses, income tax already prepaid,
         | benefits paid, etc.), but you also do it on a governments
         | website and sign it using a digital certificate (that is free
         | for citizens).
         | 
         | No 3rd party software, no paying anything (unless you have an
         | accountant do that for you, but it's relatively simple to do it
         | by yourself), and the most time-consuming task is calculating
         | all the yearly earnings and expenses.
        
         | bushbaba wrote:
         | Idk. I think the IRS gets the better end of the stick here.
         | They have you tell them how much you owe. If you report more
         | than they knew about great they made money. If you tell them
         | less than they knew about, then they'll audit you assuming the
         | difference is large enough (and there being a high likelihood
         | of winning)
        
           | cmelbye wrote:
           | If you are audited by the IRS and they find that you
           | overpaid, they will issue a refund. It's not a one-way
           | street.
        
             | skeeter2020 wrote:
             | you can also claim refunds for years back; like an audit
             | this is a 2-way street as well.
        
               | alasdair_ wrote:
               | It isn't equal however. If you underpay, the IRS has
               | seven years to get the money. If you overpay, you have
               | three. (Simplified of course)
        
             | ryanianian wrote:
             | Does the IRS start an audit if they suspect you massively
             | overpaid? They certainly do if you massively underpay.
        
               | _jal wrote:
               | Not an audit, but they corrected a mistake I made in my
               | favor once. It was a trivial amount, like $30 or
               | something, but they sent me a little packet explaining
               | what they did, why, and a check.
        
             | antsar wrote:
             | Sure. But why in the world would they audit you if you
             | overpaid?
        
               | function_seven wrote:
               | Whatever indicators they use to select audit recipients
               | may _correlate_ with under-payers, but it 's not a
               | guarantee. I'm sure there's some fraction of those they
               | audit that turn out to have paid too much.
        
               | smitop wrote:
               | They have some data on this (https://www.irs.gov/pub/irs-
               | pdf/p55b.pdf, pages 33-35). Out of 509,917 examinations,
               | 18,988 resulted in a refund. There was $7.0 billion of
               | tax refunded in 2020. For comparison, there was $17.2
               | billion of additional tax generated with additional
               | recommended and unagreed amounts.
        
             | elihu wrote:
             | I've never been audited, but several times I've had the IRS
             | just tell me I did my return wrong and give me a bigger
             | refund.
        
           | skeeter2020 wrote:
           | this is not how taxes work with the IRS. If you make a
           | calculation error in their favour they will correct it and
           | issue you a refund. If you make a compilation error in their
           | favour and get reviewed or audited, you will get a refund.
           | They also audit based more on discrepencies vs. "likelihood
           | of a big payout".
           | 
           | If they precalculated your taxes and sent you a bill (or
           | refund) it would (a) be easier, (b) be more accurate and (c)
           | encourage simplification of the entire system. I consider
           | that both more effective and more fair.
        
             | jtc331 wrote:
             | You're missing the point. The point is that the IRS isn't
             | aware of a good amount of income (trivial example is tips)
             | unless you tell them about it.
        
               | ModernMech wrote:
               | Also income from illegal activity is taxed like any
               | other. If you get caught for doing illegal things and not
               | reporting it on your tax bill, you're in trouble for that
               | too. Harder to prove you're stiffing the IRS when you pay
               | the bill they send you.
        
       | physicsguy wrote:
       | From an outsider perspective, the US tax system is nuts.
       | 
       | Here in the UK, the tax year runs from April to April. Your
       | employer reports exactly your taxable earnings to the government
       | every month. You can log in online and see exactly what you're
       | taxed on. You do not need to fill out a self-assessment at all -
       | it's all done automatically, except for under certain
       | circumstances which don't affect most of the population, but
       | roughly:
       | 
       | * You have earnings over PS1000 a year from outside of your
       | normal employment (e.g. from interest on savings, selling things
       | on eBay, whatever). * You are earning above PS50,000 per year but
       | want to continue claiming child benefit (which phases out between
       | PS50,000 and PS60,000, so some needs to be repaid). * You earn
       | over PS100,000.
        
       | smcleod wrote:
       | Hasan Minhaj on TurboTax: https://youtu.be/7xQQkzWhMOc?t=1290 &
       | https://web.archive.org/web/20210130180334/https://www.turbo...
        
       | bigjoedeez wrote:
       | What's the problem? I file for free each year.
        
       | jeffrallen wrote:
       | About. Damn. Time.
        
       | aidangrimshaw wrote:
       | I'm working with other contributors on https://ustaxes.org, an
       | open source tax filing webapp https://github.com/ustaxes/UsTaxes.
       | 
       | Currently, many Federal tax forms are supported, as well as tax
       | filing for the state of Illinois. Filing for Oregon and
       | California is under development!
        
         | Metacelsus wrote:
         | Thank you so much! I used it this year and really appreciated
         | it.
        
           | aidangrimshaw wrote:
           | Glad to hear!
        
         | freedomben wrote:
         | That's really neat and I'm glad you're doing it. That said I
         | worked on tax software once and the amount of changes each year
         | are huge and often require expert analysis. Sometimes they get
         | dropped on you with very little notice.
         | 
         | How does the project plan to keep up with that? Will it require
         | volunteers?
        
           | aidangrimshaw wrote:
           | Absolutely, yeah the project has a loose group of contributor
           | volunteers but longer term we would probably have to have a
           | larger, more formal structure.
           | 
           | Right now, we're focusing on tooling to make onboarding new
           | tax forms simpler and require a lower threshold of project
           | understanding to allow a larger, less technical group of
           | people to contribute
        
             | formerkrogeremp wrote:
             | Huh, as an aspiring tax professional how do I get in on
             | this?
        
               | IggleSniggle wrote:
               | Go to the GitHub link above, read the README, and pay
               | special attention to the "CONTRIBUTING" section.
               | 
               | If you have questions and the README and CONTRIBUTING
               | documents do not specify a way to communicate, then open
               | Issues on GitHub with your questions. Try to avoid asking
               | questions unless you've read everything and cannot figure
               | out how to proceed: remember that everyone working on the
               | project is volunteering their limited time, just like
               | you, and try to be respectful of their time and energy.
               | 
               | I am unaffiliated with this project, this is just the
               | general procedure for contributing to open source
               | projects.
        
               | zakpatterson wrote:
               | Awesome
        
           | ehsankia wrote:
           | I assume the amount of changes is much higher for the more
           | complex tax forms, which 99% of people don't need. If this
           | free software can even just handle the free tier or semi-
           | complex tier filing, it's still a huge step.
        
             | singron wrote:
             | The 1040 changes just about every year although it's
             | usually just updating line numbers and various amounts
             | (e.g. standard deduction). The 1040 schedules often get
             | updates too.
             | 
             | IME everything else stays the same (e.g. the 8000s forms),
             | but there are so many of them that it's a lot of work to
             | just see which ones have changed and if you have to care
             | about them. The forms also become less formulaic. E.g. If
             | you file 6251, you need to keep your own records about
             | Alternative basis, so you can't just fill them out based on
             | w2s and 1099s.
        
         | throwawayboise wrote:
         | Very cool. Will give it a look, I am about to start my taxes.
         | 
         | Last year I used http://opentaxsolver.sourceforge.net/
         | 
         | It did the job, mostly, but had some quirks and didn't quite
         | get everything right with the rounding when I set it to use
         | whole dollar amounts, so I had to correct a few totals that
         | ended up being $1 off, which was annoying. Probably won't use
         | that one again.
        
           | zakpatterson wrote:
           | This is actually a bit of an annoying problem for us! All the
           | 1040 instructions say to round all figures at the end. So it
           | is expected that you would have a few cases of 1.49 + 1.49 =
           | 3 showing as 1 + 1 = 3.
           | 
           | But the freefilefillableforms supported by IRS rounds all
           | input and then does addition based on that. For now we just
           | maintain all cents and do math with the precise numbers, then
           | round at the end when the numbers need to go into the forms.
           | We have some work in the pipeline now to make that user-
           | configurable too.
        
             | throwawayboise wrote:
             | The way it seems it should work is that once the amount is
             | entered on the form, it should be treated as the whole
             | dollar amount for subsequent calculations. E.g. if the
             | number comes from Schedule C, once that form is completed
             | and you "enter this amount on line X of Form 1040" then any
             | further calculations on the Form 1040 should use the whole
             | dollar amount as printed, not the dollars and cents.
        
         | heavyset_go wrote:
         | Is there a CLA? If so, does anything prevent the rights
         | holder(s) from closing the project and pivoting it towards a
         | for-profit business?
         | 
         | I'd like to contribute, but don't feel like building someone's
         | business for free.
        
           | aidangrimshaw wrote:
           | The project has an AGPL license if that's what you're
           | wondering. We figured many people would feel the same way
        
             | heavyset_go wrote:
             | AGPL just means that users can fork the project if they
             | have access to older AGPL code, but CLAs that assign
             | copyright mean that the rights holders can change the
             | license whenever they want and make it difficult to find
             | old AGPL code by removing repositories and scrubbing the
             | web of it.
             | 
             | It's entirely possible for the rights holders to say "we're
             | going private now" and pivot the project into a for-profit
             | business.
        
               | aidangrimshaw wrote:
               | Do know of a better license alternative that prevents
               | that from happening? Would be interested!
        
               | cure wrote:
               | Your license choice is perfectly fine. If you do not have
               | CLA, you have an AGPL codebase with many people owning
               | the copyright on portions of it.
               | 
               | In terms of future proofing against the project "going
               | commercial" (i.e. changing the license going forward), it
               | doesn't get much better than this, because pretty much
               | all the copyright holders would need to agree on a
               | license change.
               | 
               | Ideally, the bulk of the copyright does not reside with a
               | small number of authors - the more authors, and the more
               | evenly the copyright is spread among them, the better.
        
               | chungy wrote:
               | There isn't one, because copyright holders have all the
               | legal right to do whatever they want. The legal owner of
               | a copyrighted work is not beholden to the license they
               | release the work under.
        
               | lakecresva wrote:
               | You don't need a CLA. Github's ToS are set up such that
               | contributions you get from other github users are
               | licensed in the same manner as your repo unless the
               | contributor gets you to agree to accept them under some
               | other license : https://docs.github.com/en/site-
               | policy/github-terms/github-t.... People should not be
               | worried about you "going private"; if you've accepted non
               | de minimis contributions from other users, any future
               | conveyance or network interaction stuff would require you
               | to include the source materials to stay in compliance.
        
               | marcianx wrote:
               | You don't need another license. You just need to either
               | (1) not require a CLA, or (2) if you do, write the CLA so
               | that it prevents you from doing that with others'
               | contributions.
        
               | remexre wrote:
               | Note that AGPL and _not_ having a CLA means that this
               | _isn't_ the case, because... you don't have a CLA.
        
             | candiddevmike wrote:
             | This is an interesting situation for FOSS licenses. AGPL
             | doesn't necessarily prohibit commercial behavior. I think
             | if all the maintainers truly wanted to prevent anyone from
             | commercializing it, you'd go with a source available
             | license like BSL or creative commons.
             | 
             | It's interesting because having a group of disparate humans
             | come together and say "yea, we hate the current thing,
             | let's build something better and not commercialize it"
             | doesn't typically happen. Kudos to you folks!
        
         | dheera wrote:
         | I'm still using Turbotax because I live in California, have
         | crypto to report, and have sick contractor days to report.
         | 
         | Can any free app do all of this?
         | 
         | Better yet is there a free app that can log into my Turbotax
         | account, fetch all the data and then generate the forms and
         | file them?
        
         | sydbarrett74 wrote:
        
         | bdickason wrote:
         | This is amazing.
        
         | scrubs wrote:
         | Amen to that. I use turbo tax but the sooner I never give then
         | another dollar so much the better.
        
           | IggleSniggle wrote:
           | Switch to FreeTaxFileUSA for now if you're not willing to go
           | for this open source project.
           | 
           | Not only is it cheaper, more importantly, you're not giving
           | money that's going towards maintaining the tax code that
           | prevents the government from "competing" with TurboTax.
           | 
           | Obviously the Government already has what it needs to pretty
           | much do all of your taxes, and they already must do this
           | anyway. They could ask you like 5 short questions and your
           | taxes would be done...they already have all your info.
           | 
           | Stop paying the lobbyists to continue lobbying against your
           | interests. Start getting in the habit of calling or emailing
           | your reps around tax time.
        
         | xbar wrote:
         | Your work is needed.
        
         | myroon5 wrote:
         | How are states prioritized? Population and complexity? Or
         | personal priorities of contributors?
        
           | aidangrimshaw wrote:
           | Currently, it's states that contributors live in because our
           | resources are limited
        
             | throwawayboise wrote:
             | Fortunately, state tax returns (in my experience) are
             | pretty straightforward to do by hand once the Federal
             | return is done. I'm sure some states are more complicated
             | than others, that might be the prioritization to use if
             | more resources become available.
        
             | sitkack wrote:
             | Seems like one could setup an org/corp and get funding from
             | those states to implement tax filing code.
        
               | aidangrimshaw wrote:
               | Yeah, we have been considering setting up a nonprofit
               | org. I'm not sure if we have the scale to justify it yet,
               | but it's sort of an open question.
        
               | EnderWT wrote:
               | Many states already have ways to file online for free.
               | For example, Illinois: https://www2.illinois.gov/rev/prog
               | rams/mytax/Pages/il-1040.a...
        
               | aidangrimshaw wrote:
               | Definitely true. The goal is to unify the filing so that
               | the user doesn't have to refill in their information for
               | separate state and federal tax application websites.
        
         | TimSchumann wrote:
         | I volunteer to handle all the forms, compliance, and upkeep for
         | Washington State income tax filings.
        
           | aidangrimshaw wrote:
           | lol so kind! For those not familiar:
           | https://dor.wa.gov/taxes-rates/income-
           | tax#:~:text=Washington....
        
         | ouid wrote:
         | damn it, i live in oregon and california
        
           | dylan604 wrote:
           | I know I'm dumb, but I got a visual of your house with a big
           | stripe down the middle of it so that part is in CA and the
           | other is in OR
        
         | paxys wrote:
         | This is fantastic. I'm curious if you have any tax lawyers or
         | accountants involved with this effort. Doing some amount of pro
         | bono work is standard in the legal profession, and I can't
         | think of too many services that would be more impactful to the
         | average American than this one.
        
         | dataflow wrote:
         | This sounds awesome. How does the user handle the actual
         | filing? I assume you don't have any way to provide e-filing, so
         | would people have to print this out and mail it?
        
           | aidangrimshaw wrote:
           | Yeah, currently the user would print out the PDF generated by
           | the site and mail it in to the IRS. E-filing is on the
           | roadmap, but registering as an E-file provider is a pretty
           | complex process. One of the options we were thinking about is
           | scraping and automatically filling in fields on the free
           | fillable forms site https://www.irs.gov/e-file-
           | providers/free-file-fillable-form...
        
             | dataflow wrote:
             | Cool! Autofilling those forms sounds like an _awesome_
             | thing if you can manage it! Best of luck! And thanks for
             | doing this!
        
             | freedomben wrote:
             | I worked on designing and implementing e-file a few years
             | back for a startup. Happy to answer any questions or give
             | any advice if y'all want it
        
             | ehsankia wrote:
             | > but registering as an E-file provider is a pretty complex
             | process
             | 
             | Sounds like yet another thing the e-filing lobby worked to
             | ensure their monopoly...
        
               | formerkrogeremp wrote:
               | Intuit and H&R Block have been lobbying for decades
               | against tax filing.
               | https://www.propublica.org/article/filing-taxes-could-be-
               | fre...
        
       | tormock wrote:
       | Doesn't H&R block do that too?
       | 
       | And they try to trick you at every step to "upgrade" to the paid
       | version...
        
         | ModernMech wrote:
         | Intuit was begging to be sued though. Literally the only word
         | in the ads is "free", and they say it like 100 times to
         | emphasize just how free it is. And _of course_ it 's not free
         | at all. It can't get any easier than this.
        
       | Bud wrote:
       | Deceptive is right. I filed using TurboTax today. Federal return
       | plus two state returns. Their "free" service ended up costing me
       | around $180 even though I suspect my return is much simpler than
       | most.
        
       | bick_nyers wrote:
       | A dark pattern I just learned about with TurboTax, is that if you
       | attempt to downgrade from paid to free when it is time to file
       | (even without utilizing paid features), they force you to
       | completely start over from scratch. For a lot of people, they may
       | not even know they are in "paid mode" until it comes time to
       | punch in the debit card.
        
       | chrisfrantz wrote:
       | If you want to see an example, I took a screenshot[1] a week ago
       | of the massive Intuit ad in Google Ads that blocks the results
       | you may otherwise see.
       | 
       | 1 https://twitter.com/frantzfries/status/1505942638704345094?s...
        
       | josephd79 wrote:
       | Government: You must provide a free way for those that qualify.
       | 
       | Intuit: OK.
       | 
       | Intuits exec to its employees: Make this free system, but hide it
       | from the public. Provide links that are broken, make sure it
       | doesn't show up on search indexes.
       | 
       | Scott Cook and all those involved should have all of their assets
       | seized. About as slimy as you can get as a person. Made billions
       | off of scamming United States citizens.
        
         | anonresearcher wrote:
         | I'm curious what the original deal was, because Intuit doesn't
         | even have the free system anymore. This year, they "elected not
         | to renew its participation in the IRS Free File Program." [1]
         | 
         | [1] https://freefile.intuit.com/
        
           | josephd79 wrote:
           | Allegedly the government had plans to make a completely free,
           | simple way for you file your taxes electronically. Tax
           | software companies knew if that took place their cash
           | machines would die. They made an agreement with the
           | government that they would provide a completely free simple
           | way for individuals to file taxes electronically if the
           | government wouldn't build their own. They technically did,
           | they just made it pretty much impossible to find it. Broken
           | links, hid it from search indexes etc.
        
       | mikeInAlaska wrote:
       | My last CPA had a dart board on his wall.
       | 
       | The outside was NOT DEDUCTIBLE.
       | 
       | The inner, smaller ring was DEDUCTIBLE.
       | 
       | The bullseye was DEDUCTIBLE UNTIL AUDIT.
        
       | sofixa wrote:
       | As i mentioned on another thread[1], that's one of those American
       | things that really don't make any sense after spending more than
       | a few seconds about it. There is no legitimate excuse for things
       | to be this bad. The best I've heard is that paying taxes being
       | hard is good because it reminds you how much money you give the
       | government, so you are more attentive how it's spent, but it
       | doesn't really make sense either.
       | 
       | https://news.ycombinator.com/item?id=30842175
        
         | Ajedi32 wrote:
         | > paying taxes being hard is good because it reminds you how
         | much money you give the government
         | 
         | Wouldn't it be the opposite? Having a complicated tax system
         | makes it _harder_ to find out how much you 're paying. If
         | things were simpler it would be much more apparent.
        
           | sitharus wrote:
           | As a non-American who's not self-employed or a business owner
           | I get a monthly payslip with my gross pay and the tax
           | deduction. I see that every month, I know exactly how much I
           | pay the government. All my investments also have tax deducted
           | by the provider as well, when applicable.
           | 
           | I never have to think about calculating or filing tax, but I
           | always see it and know exactly how much it is.
        
             | caymanjim wrote:
             | This is also the case for most Americans, but we're still
             | expected to file every year. For most people, it's
             | verifying what the government already knows. Filing a
             | 1040-EZ with no itemization should be unnecessary.
        
               | ghaff wrote:
               | Nit. But the 1040-EZ form was discontinued. I don't
               | disagree with the basic point that simple taxes could be
               | more automatic--though the reality is that simple taxes
               | are pretty simple.
        
           | arebop wrote:
           | The exact amount doesn't matter for this, all that matters is
           | that you vote against taxes. It is sufficient that you
           | suspect you may owe some amount and realize that you are
           | required to figure it out. If it's hard to figure out, that
           | serves the purpose of those who want you to associate
           | negative emotions with taxes so that you'll vote against
           | taxes.
        
             | Ajedi32 wrote:
             | That sounds like an incentive to vote against _complexity_
             | , not against taxes. Paying a larger _amount_ doesn 't make
             | the calculation any harder to figure out, nor does paying a
             | lesser amount make it easier.
        
           | Izkata wrote:
           | It's pretty obvious if you do your own taxes, even without
           | fully understanding the tax code. The last few lines include
           | "Add up [lines]; this is the total you owe for the year:
           | ____" and "Add up [lines]; this is how much you already paid:
           | ____".
        
           | nickff wrote:
           | As a counter-example, sales taxes (and VATs) are very simple,
           | yet almost nobody knows how much they're paying.
        
             | wongarsu wrote:
             | In Europe VAT is a line item on every invoice. And
             | apparently in the US you have to do some mental gymnastics
             | to manually add sales tax to the listed price to figure out
             | how much to pay in the first place.
             | 
             | Of course most people have no idea how much VAT they pay
             | for Amazon purchases in a year, but that's mostly a product
             | of them not knowing how much they spend on Amazon in a
             | year. If they know the latter, the former is trivial to
             | figure out.
        
               | drdec wrote:
               | FYI, in the US, depending on the jurisdiction, some items
               | are exempt from sales tax. E.g. necessities like food and
               | clothing. In my jurisdiction, clothing is taxed by the
               | county but not by the state.
               | 
               | Which is a long way of saying that even if you knew the
               | total you spent at Amazon, you wouldn't be able to derive
               | the total amount of sales tax paid.
        
               | Ajedi32 wrote:
               | > apparently in the US you have to do some mental
               | gymnastics to manually add sales tax to the listed price
               | to figure out how much to pay in the first place
               | 
               | FWIW, usually in the US it's just a line item on the
               | receipt or checkout screen.
        
               | JohnTHaller wrote:
               | In the US, it's still a line item on your receipt. Most
               | places don't include sales tax on the shelf tag or price
               | sticker due to complexity. You can have state,
               | county/area, and/or city taxes that apply. In NYC, for
               | instance, we have a 4% NY State sales tax, a 4.5% NYC
               | sales tax, and a 0.375% NYC metro area sales tax,
               | totaling 8.875%. Clothes aren't taxed in the metro area
               | sales tax so are 8.5% unless they're under $110 and then
               | they're exempt. Most food is exempt except prepared food.
               | Then there's the issue of fractions of a cent as the
               | sales tax is calculated on the total bill not each item
               | individually. There's also the fact that taxes change now
               | and then... they adjust what food it applies to or what
               | the cutoff is for clothes, etc. Some organizations have a
               | sales tax exemption certificate (if they are a business
               | planning to resell for instance) and that must also be
               | taken into account.
               | 
               | Due to complexity, all larger stores with multiple
               | geographic locations would never have separate pricing
               | signage for every single store, so they don't. Other
               | stores do the same. It's all calculated at the register
               | as things are scanned in the computer.
        
               | sofixa wrote:
               | As has been said numerous times, this is a bullshit
               | excuse. If the register is capable of calculating the
               | taxes, an electronic price tag system ( which is the norm
               | in all big chain stores in Western European countries,
               | which have multiple geographic locations and have locale-
               | specific prices) would too.
        
               | JohnTHaller wrote:
               | If you're referring to the digitally updated signage at
               | the shelves (e-paper or otherwise), none of the stores I
               | go to in NYC have that except Best Buy.
               | 
               | It may be weird for you when you visit, but, as we all
               | grew up with it, it's just normal here.
        
             | [deleted]
        
         | rurp wrote:
         | I've heard a slightly different version of that rational, which
         | I think is more more plausible but cynical. Tax collection is
         | deliberately painful to justify cutting IRS funding and passing
         | tax cuts (mostly for the very wealthy). It doesn't really make
         | a lot of sense rationally, but might be effective as a
         | manipulation tactic.
        
           | perardi wrote:
           | That is, in fact, Grover Norquist's position.
           | 
           | https://www.propublica.org/article/how-the-maker-of-
           | turbotax...
        
           | twiddling wrote:
           | Well if you work from an assumption that taxation is theft
           | and gov't is an existential threat to liberty then it makes
           | sense why filing for taxes is terrible.
        
             | imtringued wrote:
             | By that very same logic living in a community without
             | paying for public infrastructure is theft as well which
             | would turn a lot of land owners (frozen property taxes)
             | into thieves.
        
         | techsupporter wrote:
         | > The best I've heard is that paying taxes being hard is good
         | because it reminds you how much money you give the government,
         | so you are more attentive how it's spent
         | 
         | The argument I've heard is that so righteous indignation over
         | the "staggeringly high" taxes "stolen from the hardworking
         | American people" or whatever. This is one of the same arguments
         | as to why sales taxes shouldn't be included in the shelf price
         | of an item or service.
         | 
         | Except it doesn't work. People can be mad about taxes
         | regardless of whether they're easy or hard to file. ( _Paying_
         | taxes is straightforward; the vast majority of us have it done
         | for us from our paychecks every interval.) And where I live,
         | public votes to raise the sales tax for various projects, often
         | public transit, rarely if ever fail.
         | 
         | It seems to me just to be an excuse to not actually deal with
         | our busted as hell tax collection system because that system
         | benefits people who themselves have an excuse to rile people up
         | about taxes.
        
           | nickff wrote:
           | I think there is room for a reasonable agreement which could
           | result in a simplified filing system, without making it
           | opaque. My modest proposal would be that each voter's
           | registration card (or equivalent voting voucher) be attached
           | to a statement showing all the taxes they've paid since the
           | last election, and where they went, along with some
           | information on how many taxpayers there are, and the amount
           | and percentage of income and payroll taxes paid by income
           | decile.
           | 
           | I think this would provide the transparency that
           | conservatives want, along with the simplicity that liberals
           | want. My only concern is that the data would be fudged, like
           | the social security "statements" are.
        
           | paulmd wrote:
           | > The argument I've heard is that ...
           | 
           | > Except it doesn't work. People can be mad about taxes
           | regardless of whether they're easy or hard to file.
           | 
           | "that can't possibly be a fair representation of that
           | ideologue's position, there's huge gaps in the logic!"
           | 
           | look, positions way out on the fringes don't have to make
           | coherent sense to the rest of us. PETA runs kill-shelters
           | that euthanize millions of animals every year, sometimes
           | multiples of other kill shelters. It makes sense to them,
           | they have their own logic why that's good.
           | 
           | Making Americans hate every aspect of taxes - the amount,
           | having to spend a couple quality hours with a tax program
           | every year, getting sales tax rolled on top of advertised
           | prices, everything - is the goal here. Just make taxes suck
           | so that people hate them. Because then people will oppose
           | taxation.
        
             | imtringued wrote:
             | That's highly ineffective and ultimately pointless. I don't
             | want income taxes to be abolished because I think taxation
             | is wrong. I want them to be abolished because there are
             | better taxes than income taxes cause dead weight losses in
             | the economy and tell people to work less than they want.
             | 
             | Abolishing income tax because it is hard to file is quite
             | absurd. You can have a flat percentage income tax and then
             | you wouldn't have to file. Then you could implement an
             | automatic deduction via tax credits ala Milton's negative
             | income tax. For me that would be an acceptable compromise
             | if my goal was simplifying taxes.
        
         | rootusrootus wrote:
         | Thank Grover Norquist for that. Arguably he has had far more
         | effect on this than the pittance Intuit has spent buying
         | politicians.
        
           | anitil wrote:
           | What did Grover Norquist do (not-American here)?
        
             | adfgadfgaery wrote:
             | Grover Norquist wants to cut government spending. It's
             | difficult to do that directly because people often like
             | government services. Instead he suggests cutting taxes.
             | This is easier to sell to the public because no one likes
             | paying taxes. This will drive the government into debt,
             | forcing spending cuts due to the risk of default. This plan
             | is called "starving the beast".
             | 
             | https://en.wikipedia.org/wiki/Starve_the_beast
             | 
             | For this plan to work, people have to really hate paying
             | taxes. So, despite the fact that Norquist and his allies
             | often talk about things like "reducing the burden on the
             | taypayer", they have in fact acted to make paying taxes as
             | unpleasant an experience as possible. This means
             | deliberately underfunding the IRS and ensuring filing taxes
             | is slow, complicated, and expensive.
             | 
             | He is also the architect of the Taxpayer Protection Pledge,
             | which is endorsed by the vast majority of Republican
             | politicians currently in office. The pledge prohibits them
             | from supporting any legislation that would increase taxes
             | on people or corporations. The idea of "starving the beast"
             | has been endorsed in as many words by a number of
             | politicians, including George W. Bush.
             | 
             | https://en.wikipedia.org/wiki/Americans_for_Tax_Reform#Taxp
             | a...
             | 
             | Any time a Republican politician starts talking about
             | reducing the deficit, know that they are lying. Over 95% of
             | them have publicly signed a pledge meant to deliberately
             | _increase_ the deficit. This isn 't a conspiracy theory.
             | The plans are public.
        
               | refurb wrote:
               | This seems like an internet meme and a "just so" story
               | that once you dig turns out not to be true (the "let's
               | make it more complex" part).
               | 
               | Sources would be nice.
        
               | adfgadfgaery wrote:
               | I don't have a source of him saying that's why he opposed
               | return-free taxes. This article has links to the
               | statements of his organization:
               | 
               | https://www.propublica.org/article/how-the-maker-of-
               | turbotax...
               | 
               | His stated reasons are so fantastically stupid that I
               | can't imagine them being legitimate. Return-free filing
               | is the best tool we have to achieve his claimed goals of
               | reducing the complexity and confusion of tax season. Can
               | you think of an innocent explanation for his opposition?
        
               | imtringued wrote:
               | > Grover Norquist wants to cut government spending. It's
               | difficult to do that directly because people often like
               | government services.
               | 
               | Reminds me of Grafton where the population didn't care
               | about cutting government services and only cared about
               | lower taxes. Liberals all over the country moved there
               | and it ended with bear attacks because everyone was
               | disposing their trash incorrectly and the only policeman
               | in town had a broken down car.
               | 
               | https://www.vox.com/policy-and-politics/21534416/free-
               | state-...
        
       | nimish wrote:
       | eFile could be free too but it's an enormous pain in the ass to
       | even get registered as an IRS developer.
       | 
       | IRS provides docs: https://www.irs.gov/e-file-providers/tax-
       | year-2021-modernize...
       | 
       | but hides them from the public.
        
       | mike503 wrote:
       | Amusing. They lobby to keep the government and IRS complex, get
       | sued back, but ultimately it'll always be a net gain.
        
       | musicale wrote:
       | Amazing it took them this long.
       | 
       | So when will Intuit be returning all of the bait-and-switch
       | money?
        
       | decebalus1 wrote:
       | I hate TurboTax with a passion. At this point, the only benefit I
       | see from it is the fact that because my taxes are boring, I just
       | update the information from the last return. Which is something
       | the IRS could do EASILY. Because of all the 'tax freedom' which
       | has been lobbied in America, I now have to pay a private
       | corporation, navigate countless dark patterns to make sure I
       | don't accidentally sign up for Super AuDiTProTec(tm) at every
       | step of the way (God forbid I sell stock or do something soo
       | complicated), to do something the federal government is more than
       | competent to do on their own.
       | 
       | Every piece of news in which Intuit gets slapped is good news to
       | me. I just hope legislators start doing their jobs at some point
       | and spare the taxpayer of this bullshit.
        
       | [deleted]
        
       | ChrisArchitect wrote:
       | [dupe]
       | 
       | More discussion over here:
       | https://news.ycombinator.com/item?id=30846884
        
       | Melatonic wrote:
       | Credit Karma had a free tax filing application as of last year
       | but as they were purchased by Intuit who knows what is happening
       | with that....
        
         | tengkahwee wrote:
         | It's now Cash App Tax here https://cash.app/taxes as part of
         | the acquisition agreement.
        
       | briandear wrote:
       | Let's not blame Intuit for this. Blame the politicians.
       | 
       | Here's Milton Friedman on the reason the tax code is
       | intentionally complicated:
       | https://m.youtube.com/watch?v=TruCIPy79w8
        
       | oneoff786 wrote:
       | A well deserved twist of the knife to do this right before the
       | tax rush.
        
         | munk-a wrote:
         | And it couldn't have happened to a nicer company. These guys
         | have been begging for some false advertising prosecution for a
         | while.
        
       | assuringllama wrote:
       | In my country, we rarely use software or professional services
       | for filing personal income tax. Not for most people unless you
       | have special circumstances which are usually reserved for super
       | high networth individuals.
       | 
       | What my local IRS did is sensible default. Employment income are
       | submitted electronically to my IRS from most employers.
       | Deductions and reliefs are automatically factored in if it
       | relates to other government services (e.g. reliefs for child).
       | 
       | What I love most is for information that they don't have
       | information on, such as deductible expenses for rental income,
       | they suggest a default of 15% expenses where we don't have to
       | provide any proof or documentation. It is a 15% deduction over
       | the rental income that's just given to you. Of course, we can
       | challenge it if we feel we should have higher deductions,
       | providing them with the necessary documents.
        
       | JRKrause wrote:
       | I manually filed a revision to a previous tax year in which I had
       | accidentally double-payed state taxes on a schedule K-2
       | disbursement two years back. Without any background in this I was
       | able to follow the IRS and state-gov websites to get everything
       | together and ultimately received my check for the difference
       | (many thousands of dollars). All without paying a dollar.
        
         | kaitai wrote:
         | I manually filed taxes on paper (federal) last year and they
         | still have not been processed. Got a letter that the IRS is
         | sitting on my 5-figure tax payment but haven't gone through the
         | 1040 yet.
         | 
         | There is an institutional (mainly Republican) commitment to
         | strangling the IRS here in the US. Filing taxes should be free
         | and easy.
        
           | cranekam wrote:
           | > Filing taxes should be free and easy.
           | 
           | Or, ideally, not needed at all. In the UK having an average
           | financial situation like a job (one that doesn't pay
           | megabucks, anyway), a pension, a tax-efficient savings
           | account and a student doesn't require any filing at all.
           | Everything happens through payroll. If you do earn a lot or
           | have other things that trigger the need to file it's free and
           | not overly onerous -- certainly within the grasp of a mere
           | mortal.
           | 
           | (And before someone chimes in with "how do you know the
           | government gets the figures right?!": because the tax code,
           | or at least the parts that face most people, is
           | straightforward and most people have a bog-standard default
           | configuration that is easy to verify.)
        
             | Ekaros wrote:
             | Same in Finland.
             | 
             | They get my income, loans for future capital gain
             | deductions, have calculated in the basic deductions and so
             | on.
             | 
             | I wanted some extra deductions this year, so I simply went
             | and inserted those on their own web site with simple boxes
             | to fill. Even before the tax season. No problems...
             | 
             | It is great when the tax agency isn't actually adversarial,
             | but instead ready to help and even work with you if you are
             | having troubles.
        
           | rootusrootus wrote:
           | And of course they won't be paying interest on a delayed
           | refund, but they definitely want interest if you are slow in
           | paying _them_.
        
             | ceejayoz wrote:
             | If you're gonna be mad at the IRS, at least be mad about
             | something real.
             | 
             | https://www.cnbc.com/select/what-to-do-with-late-tax-
             | return-...
             | 
             | > A long-standing law requires the IRS to pay interest to
             | those who received their tax refunds late -- notably 45
             | days after the typical filing date of April 15. Just as
             | taxpayers must pay interest on any outstanding obligations
             | they owe to the IRS, the rule works both ways if the IRS is
             | late on the money they owe back.
             | 
             | They pay 3% interest currently, which is pretty nice.
        
       | jxi wrote:
        
       | mwexler wrote:
       | ProPublica has been hammering on this since 2019. Their series of
       | investigations at https://www.propublica.org/series/the-turbotax-
       | trap is very eyeopening, and teeth-gritting.
        
       | aclindsa wrote:
       | I recently started an open-source tax solver, partly because I'm
       | not a huge fan of Intuit: https://github.com/habutax/habutax
       | 
       | It isn't perfect since its a young project, but I've attempted to
       | simplify and modularize the process of creating/maintaining forms
       | to allow for that part to be crowd-sourced as much as possible
       | (and I'd love your help!).
        
         | bschwindHN wrote:
         | Seems like you should combine forces with ustaxes.org?
         | 
         | https://news.ycombinator.com/item?id=30848936
        
           | csb6 wrote:
           | Here is another similar project that has been around a while
           | for anyone interested
           | 
           | http://opentaxsolver.sourceforge.net
        
             | aclindsa wrote:
             | Perhaps so. Though I found structural things with each of
             | those projects that I did not like. For example,
             | opentaxsolver's logic is a bunch of 'monolithic' C code,
             | and I haven't been able to find any tests. UStaxes is
             | better in that respect, but there I couldn't get past
             | typescript, honestly, and they have code like https://githu
             | b.com/ustaxes/UsTaxes/blob/master/src/forms/Y20... where
             | they're relying on position of an item in the array to
             | indicate which field it is. Not trying to disparage anyone,
             | but I did not see evidence of an attention to detail I felt
             | I could trust (and maybe that's just me and NIH syndrome).
             | 
             | What I would _really_ like is to somehow extract out a
             | representation of the tax logic into something separate
             | from the business of collecting the data from the user, or
             | even calculating the results. I 'm not entirely sure what
             | that would look like, maybe it would have to be some
             | domain-specific language (eww) in order to be able to fully
             | express the relationships and dependencies between
             | different fields/forms.
             | 
             | But I think that tax logic portion is the difficult-to-
             | maintain part, and also the portion different projects
             | would benefit the most from sharing.
        
       | linuxhansl wrote:
       | Finally!
       | 
       | First Intuit lobbies to prevent free tax returns by claiming that
       | can provide their own (very sketchy) free service for that. Then
       | they have the gall to opt out that very program which they used
       | to prevent free tax returns in the first place.
       | 
       | I wish they would just go away.
        
       | markc wrote:
       | I was 80% done with my taxes this year when TT suddenly demanded
       | an additional $119 to list deductible expenses on income. That's
       | on top of $140 to file Federal plus 1 state. I've been using TT
       | for 20 years. Never again.
        
         | mynameisash wrote:
         | I'm not confident in my ability to get my taxes right (mostly
         | due to my wife and I having owned small businesses plus my day
         | job's stock awards and ESPP), so I've paid a local CPA to do
         | our taxes for years now. He always did an incredible job, was
         | happy to answer my questions for me (tax-related or not),
         | helped us refi our house at an amazing price, and so on. His
         | fees were something on the order of $400 or maybe even as high
         | as $600 some years. But [a] I knew he always had our back, [b]
         | his services partially or entirely paid for themselves in
         | savings I probably wouldn't have caught, and [c] I was paying
         | an individual who earned his keep as compared to a company like
         | Intuit.
        
           | vuln wrote:
           | Hiring a CPA was one of the best decisions I have made in my
           | entire adult life.
        
             | 8ytecoder wrote:
             | I mean, I agree. Especially in the US. I was forced to hire
             | a CPA because of some complicated international stuff.
             | Until then I filed it myself. I have used TaxAct and Credit
             | Karma taxes (which is now Cash app tax). TaxAct is cheap
             | and fully functional. Credit Karma was also
             | straightforward, easy to use and accurate.
             | 
             | CPA can also be useful beyond just tax filing. My CPA does
             | a half year evaluation to see if I'd owe any additional tax
             | and plan accordingly. They also makes sure I get all the
             | deductions I can.
        
             | UncleMeat wrote:
             | My experience with CPAs has been poor. "I dunno, just put
             | what you think is right" is how the last person I paid told
             | me to handle a mismatch between my wife's actually grant
             | payments and her 1098-T.
        
               | junar wrote:
               | 1098-T forms are notoriously unreliable. Schools will
               | often misclassify or omit scholarships and payments. And
               | you might have additional educational expenses like books
               | that aren't listed in the first place. It doesn't excuse
               | your experience, though; that tax preparer should have
               | made a better effort to understand the figures.
               | 
               | Out of curiosity, was the tax preparer actually a
               | licensed CPA, or just someone with no professional
               | credentials? If they were a CPA, did they prepare
               | individual tax returns regularly or only as a side job?
        
               | UncleMeat wrote:
               | > 1098-T forms are notoriously unreliable. Schools will
               | often misclassify or omit scholarships and payments. And
               | you might have additional educational expenses like books
               | that aren't listed in the first place.
               | 
               | Worse, virtually all of the 1098-T guidance exists for
               | undergrads. The problems with the form are entirely
               | different for graduate students and basically nobody can
               | help.
               | 
               | > Out of curiosity, was the tax preparer actually a
               | licensed CPA, or just someone with no professional
               | credentials? If they were a CPA, did they prepare
               | individual tax returns regularly or only as a side job?
               | 
               | It's been a bunch of years so I don't know for certain,
               | but they weren't just a desk worker at H&R Block. Tax
               | preparation was their primary job.
        
               | eropple wrote:
               | In my experience, somebody who has tax preparation as a
               | primary job is often _not_ a CPA. A CPA usually offers a
               | suite of services, and is also usually a lot more useful.
               | 
               | My CPA is great, and I save money through using his
               | services.
        
               | UncleMeat wrote:
               | "Primary job" as in "not a side gig."
        
               | eropple wrote:
               | Gotcha. Still worth noting that going to somebody whose
               | sign says "tax preparer" often isn't the same thing as
               | "accountant", and one conflates at their peril!
        
           | pkulak wrote:
           | I could probably do my taxes with a 1040-EZ most years, but I
           | still pay a local CPA $300 to do it for me. I'm just happier
           | without $300 but with taxes done.
        
           | zentiggr wrote:
           | Your situation sounds like one that a CPA would be perfect
           | for - especially with business taxes involved.
           | 
           | Our household has just the basic salaries / expenses / 401k /
           | IRAs. THe year I received some temporary additional benefits,
           | Intuit decided that I had to pay premium in order to enter
           | that single additional 1099.
           | 
           | I left, found a much simpler, straightforward service with
           | which I filed legitimately free, and have never looked back.
           | 
           | Plus, I've read about Intuit's history with the whole market,
           | and I will never willingly give them a damn cent.
        
             | rurp wrote:
             | > I left, found a much simpler, straightforward service
             | with which I filed legitimately free, and have never looked
             | back.
             | 
             | Which service is that? I haven't filed my taxes this year
             | and am willing to spend some time switching to an app
             | that's less scummy than Intuit's offerings.
        
               | astura wrote:
               | Not GP but I've been using TaxHawk/FreeTaxUSA (same
               | company runs both sites) for more than a decade with no
               | problems, no upsells, and no dark patterns. Filing
               | federal taxes is completely free with them for everyone,
               | so there's no harm in giving them a shot. If you want to
               | add your state tax filing in at the end (if applicable)
               | it will only cost $15. There's no obligation to buy
               | anything, you can file your federal taxes for free
               | without purchasing the state tax filing option.
        
           | throwawayboise wrote:
           | It's not like an honest mistake is the end of the world. I've
           | made tax mistakes. You get a letter from the IRS, with the
           | amount you owe or are due back, and you settle up. There are
           | no draconian penalties or full audits unless they suspect
           | intentional fraud.
        
             | bombcar wrote:
             | The IRS will even send you "you screwed up and paid us too
             | much, you forgot X" letters at times.
             | 
             | What they can't do for you is know about deductions
             | sometimes.
        
             | ceejayoz wrote:
             | I was once on an IRS payment plan, and a) the interest rate
             | was remarkably low and b) the folks I talked to when I
             | needed to adjust it were the nicest customer service reps I
             | think I've ever encountered.
        
             | rurp wrote:
             | Yep, that has been my experience. I got pretty freaked out
             | once when I received a large packet from the IRS in the
             | mail. Turns out I forgot to report a stock sale and just
             | owed them a few hundred bucks. The only penalty was having
             | to pay interest on the amount at a rate that was a little
             | high but not egregious.
        
             | kstrauser wrote:
             | They're usually shockingly pleasant to deal with, too.
             | Having owned a couple of small businesses over the years,
             | our taxes can get complex. There were a couple of times
             | where the IRS had questions about our filed returns, and
             | the clerks we dealt with have always been genuinely nice,
             | helpful to work with, and authorized to exercise decent
             | human judgment.
             | 
             | Them: It says here you spent $X on healthcare expenses.
             | 
             | Me: I've got 4 kids. I always hit my deductible.
             | 
             | Them, literally laughing: Yeah, kids are expensive. OK,
             | moving on...
        
         | tppiotrowski wrote:
         | taxact.com did the same trick. Raised prices for a few
         | consecutive years for no apparent reason.
         | 
         | They have your previous filings so switching to another
         | provider can be a pain since you need to know last year income
         | when submitting your filing. I always make sure to at least
         | download the PDF's.
         | 
         | As a consumer we're always free to vote with our wallet and
         | I've been happy with freetaxusa so far but I'm also waiting for
         | the "rate hike" to come...
        
       | ChrisArchitect wrote:
       | https://news.ycombinator.com/item?id=30840861
        
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       (page generated 2022-03-30 23:02 UTC)