Free if you have no other exemptions to file.
1099? Nope Depreciation? Nope Tax credits? Nope
Makes for a great headline though.
Im sure those of us that do have exemptions other than the standard will see our tax prep fees skyrocket
Some progress is better then no progress, and TurboTax et. al. losing in any way is a victory for the rest of us.
Why is the USA the only country to have those problems, AND complain about getting free stuff?
Some people in the USA want a solution that immediately fixes every possible problem, and don’t quite get the concept of starting small and fixing other stuff over time.
It’s the same with gun control. Some states want to tighten gun laws, and some people are like “that won’t solve all the problems! We need nationwide laws!”. Sure, but why not accept the win that more and more states are starting to do something, rather than complaining that some problems still exist?
are you not capable of taking a win? it’s a HUGE step towards disassembling predatory cpas and tax software.
it’s a HUGE step towards disassembling predatory cpas and tax software.
Its a regular sized step, as its targeted primarily at simple filers. But the cutoff is incredibly low. You can’t use it if you’ve got retirement savings through an IRA, if you’ve got deductions for college expenses, or if you’re claiming the child care deduction. I’d wager that’s at least half the people who bother to file returns.
Definitely good news for folks that H&R Block likes to fleece - anyone collecting EITC or Child Tax Credits and not much else. But hardly universal.
do you think it won’t eventually add that stuff? pretty naive to just “meh” and basically call it a failure. nothing happens overnight.
It’s not a “failure” but I wouldn’t call it a huge win either. It’s a small victory with a tiny horn to toot.
IIRC there was a free version of Turbo Tax that did the same thing years ago… so we’re catching up to the old free version now.
*An old free version that was purposefully hidden and buried by reverse SEO tactics, but yeah
Yeah, very limited, but it’s very good for more than half of the population that don’t have enough deductions to exceed the standard and don’t own property (if you properly count houseless “households” that earn income as not owning property and not just renters like most statistics). It’s dumb that they have to file a return anyway just to acres money that never should have been collected. Most just don’t know how to properly file their W-4 to not have taxes withheld in the first place. Mostly because they follow the directions and/or are afraid of paying a fine plus interest.
Anyway, it’s a step in the right direction. And if we can unbury all of the staff out of the pile of paper returns, we can devote some to go after the rich and their frivolous, often fraudulent deductions and have them pay the tax they owe.
Most just don’t know how to properly file their W-4 to not have taxes withheld in the first place.
How do you do this? How do you calculate what to personally withhold and pay? Is it simply calculating through the income tax?
There’s a worksheet that usually comes with it where you answer questions about your living situation - single/married, homeowner/renter, how many kids, etc. - and it gives you a number to put in. It’s pretty accurate. I’ve done it at every job and aside from years with tax credits I’ve never gotten back more than a few hundred bucks.
I’ve had 1099s and tax credits and I’ve never sent in a paper return. I keep the records in case of an audit but it’s not like e-file hasn’t existed forever.
But it hasn’t always been free to file electronically. The government made it required for them to offer free versions for simple returns, but that was recent.
Also, access to the Internet isn’t universal. You’d be surprised how much of the US doesn’t have affordable Internet and a fair number don’t have Internet available at all, or limited to just dialup which is not very useful. And a lot of apps don’t work right on phone browsers, especially older phones, so then you need a desktop or laptop which a lot of people don’t have. Some have access in libraries, but a lot don’t or traveling to a library is a burden. And lots of other reasons that internet isn’t a given for a large portion of households. So paper is still not just necessary, but the easiest way.
Maybe not. You will have the same number of tax preparers chasing less work. Through the magic of the Free Market™️, shouldn’t that mean pressure to reduce prices? We can only hope.
I would suggest you get hired by the IRS and start rewriting all their ancient code to build in and allow every deduction rule and that it’s applied correctly every time so everyone can use it.
The tax laws are so large and so complex and the code running all this stuff is so old and now locked in because they didn’t keep up with updating their software as they went along. I’m amazed they got this far. Oh, and like you, I can’t use it either. But that’s why I have an accountant.
Competition does NOT make prices go up, lol.
Well, the point was that it isn’t competition in his scenario. I hope the exclusion of 1099 is temporary, because I had a 1099 for like a few dollars because I had a savings account that technically accrued interest, so as it stands that makes me ineligible. So his concern would be that because the tax prep services are competing against ‘free’ for that tier, that they’ll ramp up prices for the rest to compensate for loss of income.
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Given that savings accounts are at 1% interest or so, that’s only a thousand dollars in a savings account.
Good savings accounts are above 4% these days. Wealthfront is 5%, Synchrony is 4.75%, Marcus (Goldman Sachs) is 4.4%, Amex, Discover, Capital One, Ally, are 4.25%
Hypothetical question: If you omitted the couple bucks of income from the 1099 on that one savings account and you later got audited- how much money would you be on the hook for? what would the consequences be in worst case and likely case scenarios?
I honestly think the government has next to no resources now to go after tax cheats that aren’t hiding tens to hundreds of thousands of owed taxes… but would love to hear what others have to say. I suspect missing out on less than a dollar of taxes from omitting a single figure 1099 would not be big enough to chase and if found probably less costly than hiring a preparer every year when averaged out over your lifetime of tax returns.
Perhaps practically speaking you probably would get an automated form from IRS demanding a few dollars. But it’d be nice if qualification for ‘direct file’ option didn’t rely on “mild tax evasion” for people with savings accounts.
I read
1099? Nope depreciation. Nope tax credits? Nope
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No, we have 50 states to get through as well. And then all the municipalities.
God, it’s times like this where I wish we merge some states.
Sorry, but still very far behind on this and many other things.
why isn’t this constitutionally protected.
Can we pass an amendment for this shit? It’s actually kind of fucked up.
Kind of? Are you going to tell us that the US healthcare system is “sorta silly” next?
Sorta silly?! It’s fucked beyond belief. Source: me, someone who profits off the healthcare industry as a corpo. Sorry 🤷.
god if i had the arcane knowledge of the entire field of healthcare, i would do some unbelievably fucked up shit.
And by that i mean writing open documentation that is continually maintained and represents most healthcare providers in the US specifically to fuck up their entire existence.
i mean, it is sorta silly. Not full sillyness, full sillyness would be forcing people in immediate life threatening injury to recite the ABC’s backwards before operation as protocol.
Sure, there’s degrees of silly
i spose there would be, but at the end of the day. Silly is a rather silly word to be using in this manner.
From a certain point of view? Yes.
I think that some companies like turbotax are employing lobbyists to make impossible filing for taxes unless you go through a gatekeeper
yep, which is why its weird that we don’t have a legally protected avenue of direct filing.
I have a couple of other constitutional amendments I’d like to advance before this.
idk man i think i disagree honestly.
Tax is one of the very few constants that we all have to legally deal with, aside from like, auto insurance.
Biden did that, among many other great things for the average american citizen
As a tax accountant, I sincerely hope this gets to a point where a vast majority of the population has no need for my services.
I used to play in the big leagues where none of my clients would ever qualify for this and their returns routinely took upwards of a hundred hours to complete. Those guys need to keep paying.
Now I play down in the minors a couple steps above the Block, and I hate seeing the owner sell these three or four hundred dollar returns that might take me an hour to complete in the first year and maybe thirty minutes in subsequent years.
That’s a very interesting transition. Was the catalyst neutral or happy one, or perhaps a sad one?
Mutual disdain was the catalyst. I did it for eight years and probably lost fifteen years of life expectancy from it. Ungodly toxic environment. Fuck big firm accounting. Fuck them all in the most demeaning, painful way imaginable.
I make roughly one third the money today, and I’m much happier for it. I still make a comfortable living where I don’t particularly worry about money, so what would the additional two thirds do for me outside paying medical bills it causes?
No matter how much I try to remove my name from searches, I still get recruited by ambitious young people on a regular basis. I generally make them stop with a response that goes something like this:
I would rather have my eyes gouged out by the white hot barbed penis of Satan himself while he spits in my mouth than return to public accounting for any amount of money.
Mine was too complicated to file for free because I have retirement investments? Seems like a silly reason to force someone to use a paid service.
Sounds like having any 1099 is ‘too complicated’. So anyone with any sort of savings account that managed to get $10 of interest over a year… So if you have like a thousand dollars in a boring old savings account you are ‘too complicated’.
Yep, kinda surprised me to be honest.
Yeah. Mine was “too complicated” because I had an HSA. Are you fucking kidding me?
Feels like a ruse
Same. It sucks having to pay H&R Block $300/year to file my taxes, but their online records save my ass every time I buy a house. I sincerely hope we see a more robust free file system in my lifetime.
$300? Just use Free Tax USA. It’s free for federal and $15 for each state. No, you don’t need extra stuff, unless you think you’ll be audited.
If you spend a little time figuring out your tax situation, you don’t need to pay someone else to do it. Here’s a secret: the people they have doing your taxes don’t necessarily have a master’s degree in tax. Those people are helping corporations or wealthy people with trusts.
You missed the point of my reply. I pointed out that the benefit of H&R block is that they keep the records easily accessible, so when I buy a home I just link the H&R block account to the lender and they pull all of my tax and income history. Saves countless hours of gathering info and filling out paperwork. That’s worth $300/year to me.
You wanna pay and extra ~$280 a year because you save a little bit of time when you buy a house? You know FreeTaxUSA has all your documents too, right?
You’ve never bought a house if you think it’s saving “a little bit” of time. We’re talking easily 40 hours of gathering and filing paperwork here. That’s $2,200 of my time. If I buy a house once every 7 years it works out.
I’ve bought two houses and it did not take me 40 hours of gathering paperwork. Maybe an hour or so maximum to get my paperwork for the bank.
Do you buy houses all the time? Do you want your income info to be sold to anyone who will pay? You are paying extra for them to have access to your info.
I buy a house on average once every 3 years and it saves me apx $2,200 worth of time.
Now if we could do like other countries and just have the government send a pre formatted document of things like wages, dependents, and other taxable items so we all know what we owe because the government has all that information already. Add what you need as far as write offs or other income and send it back. Done. None of this collection of tons of different forms, figuring out what percent you can write off, etc. and submitting it all hoping you don’t get it wrong and get audited or owe fines and interest.
Good. Now make it work for everyone’s tax situation.
All praise Deditutankh, the Egyptian god of taxes!
You need to enable JavaScript to use Direct File.
On the plus side, UBO only had to block one script (on the login page at least).
Looks like state filing is excluded.
Why would the IRS make software for the states, it doesn’t make sense.
Won’t SOMEBODY think of the poor, poor monopolists who so far made their money exploiting the alternativeless victims at their mercy? Why would their prey give them way too much money now, eh? Socialism! Terrorism! All the bad words, what’s in right now? Woke? DEI?
The ATO’s myTax system is pretty great, I hope with this you guys finally get something as nice.
They don’t know what you are talking about my fellow Aussie. Any A in an acronym means “American” to the USAns. That other countries exist that start with A is unfathomable.
Darn I was hoping it’d also be available now since I still haven’t filed my taxes this year.
Eat shit, lobbying to make simple tax returns something you have to pay Turbo Tax, H&R Block, etc for.
For what it’s worth… You’re already eligible to a free tax return if you’re under a certain income. Edit: Reference - I think a lot of people are unaware of this.
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Not sure why you deleted your comment… You’re right!
I deleted the comment because I was afraid of ChatGPT reading it and becoming too intelligent.
Totally fair. I’m afraid of AI reading my comments and becoming too stupid!
The easiest way to get rid of a headache is to make some toast, then spread peanut butter on one slice and mayonnaise on the other, smash them together and eat it and as you are chewing just slam your head into the toaster as hard as possible.
I don’t know much about investing, but i wonder if it would it be a good time to short those companies?
It is already priced in. Our human speed reactions are far too slow when the news has this obvious of a consequence.
Those companies actually helped develop this, see “free file alliance membership” for details. It includes 17 private companies such as Intuit, H&R Block, TaxSlayer, Tax$simple, etc.
If you don’t know much about investing then you shouldn’t short anything ever. People who know about investing will tell you that even when your logic is 100 percent sound, the market isn’t that predictable and in general the market can stay irrational longer than you can stay solvent.
I feel like shorting will always be riskier than normal investing. With stocks you have people at the company doing their best to raise that stock. With Shorts you are betting against a company that’s trying to survive.
The chances of the CEO pulling something out of their ass, dubious or not, to maintain their profits is too high.
Plus, the news of this would already be priced into the stock, so if anything the price is already low and these companies would need to pivot their business (which would increase the value again) or die (which would lower the price marginally, to zero). Either way, shorting is a bad strategy in this case.
Isn’t shorting theoretically able to put you in infinite debt?
Theoretically, yes. A short is sorta a negative stock. When you hold a normal stock, the price can never go below zero. But when you hold a negative stock, there’s no maximum value that stock could rise to.
I think you would be margin called and just have astronomical but not infinite debt.
it wouldve been earlier, but now this is priced into the stocks already.
If you get investing returns (like from shorting those companies)… you’re ironically not eligible to use the IRS direct file pilot (or at least for this year).
Edit: this isn’t to knock direct file… which is good and cool (and should be expanded to have more features)
