[HN Gopher] The IRS Has an Answer to TurboTax
       ___________________________________________________________________
        
       The IRS Has an Answer to TurboTax
        
       Author : andsoitis
       Score  : 46 points
       Date   : 2024-03-22 09:42 UTC (13 hours ago)
        
 (HTM) web link (www.theatlantic.com)
 (TXT) w3m dump (www.theatlantic.com)
        
       | koala112 wrote:
       | Finally. Even with the limited scope it's still a step in the
       | right direction
        
       | toomuchtodo wrote:
       | https://directfile.irs.gov/
        
       | willcipriano wrote:
       | About half of Americans pay no effective tax anyway, why not set
       | a threshold say 100k a year and if you are under it you owe no
       | federal taxes and don't have to file anything. Can make up the
       | difference by taxing capital gains at the same rate as W2 income.
        
         | Something1234 wrote:
         | Because of the earned income tax credit. It's involved and
         | stupid how much welfare is done through that program.
         | 
         | Plus congress wants the poor idiots who vote republican to feel
         | like taxes are a punishment otherwise how will they whip up
         | their base.
        
           | triceratops wrote:
           | Correction: they want all poor idiots (I include myself here)
           | to feel like taxes are a punishment so that they will want to
           | vote Republican.
        
             | asdff wrote:
             | Not just the poor idiots, but the rich idiots too. Paying
             | taxes isn't so bad once you realize that money was spoken
             | for from the minute it hit your checking account.
        
               | triceratops wrote:
               | Paying taxes is (mostly) fine. Filing taxes sucks.
               | Politicians don't understand that making the filing
               | process suck won't change how I feel about paying taxes.
               | It will change how I feel about them.
        
             | deprecative wrote:
             | Two Santa Claus theory.
        
         | autoexecbat wrote:
         | Does the IRS have way to know all of your income?
        
           | willcipriano wrote:
           | Your bank, employer, cash app and brokerage all report to the
           | IRS so unless you are a drug dealer or similar, yeah for the
           | most part they already know it.
           | 
           | Heres the best bit, people working under the table are going
           | to be making less than 100k generally so it doesn't really
           | matter, anyone making real money will be making big enough
           | waves in the financial system to be detected, small movements
           | of cash doesn't matter at this scale. The highly taxed routes
           | (capital gains) are also already highly policed for tax
           | purposes so no transition is needed there.
        
             | jdsully wrote:
             | Banks don't report every transaction and even if they did
             | it may not be "income". E.g. moving money from one account
             | to another is a transaction but no income was earned and it
             | is not taxable.
        
               | voxl wrote:
               | How does this meaningfully affect the thesis of the
               | comment you're responding to? What is the point of
               | nitpicking something like this? I conjecture there isn't
               | a point beyond "I found someone wrong in a comment you
               | spent less than 5 minutes on even though the core thesis
               | is still correct."
        
       | andrewmcwatters wrote:
       | It's not really an answer to TurboTax, because it's not good
       | enough. I'll continue to pay Intuit for now. It's relatively
       | speaking a small price to pay for something done well.
        
         | nextworddev wrote:
         | What is an example of something that TurboTax does better?
        
           | andrewmcwatters wrote:
           | State taxes as well. The IRS didn't partner with individual
           | states for this initiative. They also don't have limits on
           | interest income or household income, which make this
           | worthless for people who file high income returns.
        
             | metadat wrote:
             | Your comments set off my spidey senses; they don't pass the
             | sniff-test for a trustworthy, well-informed, pro-Intuit
             | stance, especially on message board catering to tech.
             | 
             | Intuit practices the classic rent-seeking behaviors endemic
             | to late stage capitalism. Who is this helping? They also
             | actively lobby against tax reform because it's an
             | existential threat to their cash cow.
        
         | rpdillon wrote:
         | This is correct. According the article:
         | 
         | > Direct File isn't perfect--the program is available in only
         | 12 states, and it isn't able to handle anything beyond the
         | simplest tax situations--but it's a glimpse of a world where
         | government tech benefits millions of Americans. In turn, it is
         | also an agonizing realization of how far we are from that
         | reality.
         | 
         | According to directfile.gov, those states are: Arizona,
         | California, Massachusetts, New York, Washington, Florida,
         | Nevada, New Hampshire, South Dakota, Texas, Tennessee, and
         | Wyoming.
         | 
         | I have no great love of Intuit, but this is not ready for prime
         | time.
        
       | insane_dreamer wrote:
       | After using TT and HRBlock for years, this year I used CashApp
       | Taxes which is completely free and handles almost all cases
       | (except if you earn income abroad and a few other edge cases).
       | Surprisingly nice UI that walked me through all the questions
       | with links to IRS site with form. Wasn't expecting it to be so
       | good. (And I have more complicated than most - rental props,
       | investments, W2 plus self employed, college expenses, married
       | etc. And it's not trying to upsell anything (no ads, premium ver,
       | annoying gimmicks). Looks like Dorsey decided to spend a bunch of
       | money to make people's lives easier. I hope it continues.
        
         | Cheer2171 wrote:
         | Sounds like your data is the product, then. From
         | https://taxes.cash.app/pages/privacy-policy :
         | 
         | > Service Providers: We may share information with service
         | providers, as permitted by law, in order to have them perform
         | on our behalf activities we are permitted to conduct under this
         | Privacy Notice and our Terms of Service. This includes things
         | like helping us design or operate our Services, process and
         | administer your financial transactions, preventing fraud and
         | complying with state and federal law. These service providers
         | are authorized to use Personal Information only as necessary to
         | provide these services to us.
         | 
         | > With advertising partners who help us run our advertising
         | campaigns, analyze our site, run contests, special offers, or
         | other events or activities, and track metrics on our behalf or
         | in connection with our Services.
         | 
         | > Affiliates: We may share certain information with our
         | affiliated companies, such as Block, Inc., formerly known as
         | Square, Inc. (the "Company") to help us provide our Services
         | and manage your account.
         | 
         | > As Part of a Corporate Change: We may disclose and transfer
         | information we've collected to a third party as part of, or in
         | preparation for, a change of control, restructuring, corporate
         | change, or sale or transfer of assets
         | 
         | The affiliates clause is incredibly broad and would let them
         | sell your tax returns to anyone, as long as it helps them
         | provide the service. If the service isn't profitable without
         | selling your tax returns, then that is all the reason they
         | need.
        
       | DeepYogurt wrote:
       | Some anecdata, but the freefillable forms interface has a LOT
       | more validation on it this year than it did last year.
        
       | triceratops wrote:
       | The government requires us to pay taxes. It also requires us to
       | file tax returns. It's unconscionable that we have to pay a
       | third-party to fulfill our legally-mandated obligations. It is
       | way past time for tax filing to be made available for free at all
       | levels of government.
       | 
       | (Don't come to me with paper forms or FreeTaxUsa or whatever.
       | FREE IRS software should be able to handle taxes of any
       | complexity and situation. If they can't handle a scenario in
       | their software, they shouldn't be allowed to collect any taxes
       | resulting from the law that created the scenario)
        
         | randerson wrote:
         | Related, but it's also unconscionable that the tax code is so
         | complex. My CPA once had to bring in a specialist because he
         | didn't know how to report something. A few times we've run into
         | "gray areas" that were "open to interpretation". I double
         | checked with a second CPA who said the same thing. This system
         | needs an overhaul.
        
       | kwertyoowiyop wrote:
       | The IRS should open-source at least the 'rules' part of the code,
       | with enough functionality to let people add new forms. I think
       | they'd get a lot of contributions and good QA.
        
         | EMIRELADERO wrote:
         | The IRS seems subject to FOIA. I wonder if people could get
         | together and request that.
        
           | HenrikB wrote:
           | FOIA = Freedom of Information Act (United States)
           | 
           | https://en.m.wikipedia.org/wiki/Freedom_of_Information_Act_(.
           | ..
        
       ___________________________________________________________________
       (page generated 2024-03-22 23:02 UTC)