this post was submitted on 18 Oct 2023
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IRS plans to launch free tax filing pilot program in 13 states next year (www.cnn.com)
submitted 1 year ago by [email protected] to c/[email protected]
48 comments fedilink hide all child comments
 

The Internal Revenue Service is moving ahead with a plan to build its own free tax filing program, known as Direct File, announcing Tuesday that a pilot version will be available to some taxpayers in 13 states next year.

Armed with an influx of new money approved by Democrats last year, the IRS is conducting a major overhaul of its operations – despite continued threats from Republicans to cut future funding and even abolish the agency altogether.

Eventually, the IRS tax filing system could serve as an alternative to private tax preparation companies like H&R Block and Intuit’s TurboTax.

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[–] [email protected] 89 points 1 year ago (4 children)

This is great, but republicans are gonna hate it. They want everyone to hate taxes with a passion, so they make it difficult, time consuming and expensive to pay your taxes, and make government services as bad as possible so even poorer people who don't pay much tax feel they get a bad deal out of taxation.

If ordinary people found it easy and convenient to pay taxes they might notice that they get more out of government than they put in and that rich people are bearing more of the cost than they are. If they thought that, they might support tax increases or things that horrify republicans like medicaid for all.

[–] [email protected] 22 points 1 year ago (1 children)

That's not it. Only reason is lobbying by tax software companies that somehow (read using lots of money) convinced politicians that a government provided solution is bad idea.

It's the same thing with your health-care and schools system.

[–] [email protected] 3 points 1 year ago (2 children)

That's definitely also true, but republicans genuinely want everyone to hate taxation as well, so their interests very much align with the companies that want to fleece you.

Lots of countries have pay as you earn schemes where your income tax is deducted but your employer and sent to the government and you don't have to even lift a finger, likewise the price on the item at the shop, by law, includes tax and it's completely seamless for you. Republicans will never like such schemes because they want taxation to be hated by all so that they'll go along with tax cuts that primarily benefit such folks.

[–] [email protected] 1 points 1 year ago* (last edited 1 year ago)

IIRC that's what the income tax was supposed to be like ... it wasn't even supposed to be an "income tax", it was supposed to be a tax on the employer side based on the amount of money they're paying their employees. Somehow it ended up being that employees individually have to deal with the headaches and your actual take home salary isn't obvious.

[–] [email protected] 1 points 1 year ago

Isn't the W-4 supposed to allow for a pay as you earn situation? It just never works out right and you either give the government an zero interest loan for the year or you get a surprise bill. Seems like they could be more on top of that.

[–] [email protected] 12 points 1 year ago (3 children)

These people are too stupid to realize a person comes every week and takes away their garbage. They have soft, lizard brains. They have dudes that drive cars to and from work every day on government health insurance who with a straight face say they do not really on the government at all.

[–] [email protected] 9 points 1 year ago

No they know this.

They just want to privatize it so a rich bastard can get more money.

[–] [email protected] 2 points 1 year ago

Am I the only one paying quarterly for garbage service? It's like $800 a year.

[–] [email protected] 3 points 1 year ago

Free software like TaxHawk and FreetaxUSA popped up once TurboTax and HR Block started charging people. I get your point, but it doesn't carry as much weight with the fre, easy software that's out there.

[–] [email protected] 1 points 1 year ago* (last edited 1 year ago) (1 children)

That second paragraph doesn't make sense to me. You are saying that "ordinary people" will notice that they benefit from the cost/return ratio compared to "rich people", so they'll get greedier?

Don't get me wrong, I'm all for medicaid for all... but I don't follow that logic at all

[–] [email protected] 2 points 1 year ago

They'll notice that they benefit from taxation so they'll be happier with a higher tax economy and see that tax cuts hurt them more than help them.

[–] [email protected] 60 points 1 year ago (1 children)

Paying to pay your taxes is the most moronically American thing I've ever heard 😂

[–] [email protected] 20 points 1 year ago (3 children)

Technically, you don't have to. You can always file for free by filling out and mailing in the paper forms. It's just a major PITA and the money you save is rarely worth the amount of time and effort it takes.

[–] [email protected] 9 points 1 year ago

Incorrect, if you make less than 73k a year (single) you can use many professional tax preparation software for free. https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free I make more and was still able to do it for free using FreeTaxUSA for my federal income taxes. some states offer free state taxes (a bit more tedious than doing it on one system since you have to reenter information)

[–] [email protected] 4 points 1 year ago

I do it because it's fucking ridiculous and I refuse to spend a penny on tax prep services.

[–] [email protected] 1 points 1 year ago (1 children)

Why not use free software like TaxHawk? It's been around for a while. At least since HR Block and TurboTax started charging people a few years ago.

[–] [email protected] 2 points 1 year ago

Up until last year, our bank gave us a significant discount on TurboTax, so it wasn't worth shopping around. Then TurboTax raised their prices. As for TaxHawk, I wasn't aware they existed, but I'll maybe take a look this coming tax season.

[–] [email protected] 50 points 1 year ago (1 children)

Who will be eligible for the pilot program

Some taxpayers in Arizona, California, Massachusetts and New York will be eligible for the pilot program during the 2024 tax season that will launch in January. The states have opted to integrate their state taxes with the federal Direct File system.

The Direct File pilot will cover only individual federal tax returns. But once a federal return is filed, taxpayers will be guided to a state-supported tool that they can use to file their state tax return.

Taxpayers in nine other states that do not levy a state income tax – Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming – may also be eligible to participate in the pilot.

[–] [email protected] 25 points 1 year ago (2 children)

Man if they get this right it could be huge

[–] [email protected] 27 points 1 year ago (1 children)

Turbo Tax is gonna be pissed. Good, fuck them.

[–] [email protected] 8 points 1 year ago

They've absolutely been lobbying against it, HARD.

[–] [email protected] 2 points 1 year ago

Tax Hawk is still an option for those not in a pilot state!

[–] [email protected] 26 points 1 year ago

A few decades late, right on schedule

[–] [email protected] 23 points 1 year ago (3 children)

Plenty of people were happy to get sick and die, rather than accept Obamacare. I can imagine the same idiots thinking that they'll get a better refund if they pay for Turbotax.

[–] [email protected] 9 points 1 year ago (3 children)

Nothing would prevent someone for doing the calculations with both programs and comparing.

[–] [email protected] 6 points 1 year ago

Other than laziness and propaganda.

[–] [email protected] 2 points 1 year ago

Why would they need to compare? It's the government, so it must be bad!!!

/s

[–] [email protected] 3 points 1 year ago

just look at the vaccinations for another example

[–] [email protected] 2 points 1 year ago (1 children)

No they will done some random person on the street or Facebook. This year's tax scheme is the fuel tax credit. People seem to believe a $20k refund with $5k income is normal.

[–] [email protected] 3 points 1 year ago (1 children)

Could you expand on what you mean?

[–] [email protected] 2 points 1 year ago (1 children)

The fuel tax credit is generally used by farmer for the purchase of fuel for no highway vehicles like farm equipment and kerosene for heating. For some reason people are reporting the gas they put in their car for this credit. Their returns have a credit for as much as $20k. Their returns generally are low income. People are being told about this credit through means like Facebook.

For tax year 2020 and 2021 there was a credit for self employed people who lost money due to the pandemic could claim a credit of up to16k. People would claim this but have no history of self employment.

These returns are prepared either by individuals or by someone who applied for a preparer id to open a little tax clinic. You also have people who hang out around the tax places telling people they can get them a larger refund and the people don't question where these numbers are coming from. Part of it is due to poor education on the taxpayers part and shady preparers trying to increase their commissions.

The IRS implementing their own software could reduce this impact. The issue is the IRS is not great at advertising.

[–] [email protected] 1 points 1 year ago (1 children)

Very interesting. This also means some of these people msy owe taxes with interest right?

[–] [email protected] 1 points 1 year ago* (last edited 1 year ago)

Interest and penalties are assessed from the original due date of the return(usually 4/15). So yeah there will be interest. Most have been stopped but some slipped through so if you got an oversized refund you may want to make sure as they are planning to audit each instance of these credits. (Fuck them, but, Don't cheat the government)

[–] [email protected] 15 points 1 year ago* (last edited 1 year ago) (1 children)

Great news for tax filers in the U.S., and I hope this could be a step in the right direction! It's about time the IRS introduced a free tax filing program. Overhauling their operations and offering an alternative to private tax preparation companies is a welcome move, but I agree with IRS Commissioner Danny Werfel that it should remain a choice for taxpayers.

It's interesting to see that some states like Arizona, California, Massachusetts, and New York are opting to integrate their state taxes with the federal Direct File system. This could streamline the tax filing process for many. And for those in states without a state income tax, it's good to know they might also have the chance to participate in this pilot program.

The IRS's efforts to improve taxpayer services and digitize paper-filed tax returns sound promising. Reduced processing times and faster refunds are definitely something we can all get behind.

Let's hope this initiative proves to be successful, and it's essential that eligibility is determined carefully to ensure the right taxpayers benefit from this program. 📄💰🖥️

[–] [email protected] 4 points 1 year ago

You could always file your taxes for free fyi

[–] [email protected] 3 points 1 year ago

I'm from MA. Gimme.

[–] [email protected] 1 points 1 year ago (2 children)

aarrgh. not illiniois. which is a bit surprising as illinois has really improved its online filing and this would to me seem a perfect next step.

[–] [email protected] 3 points 1 year ago

Maybe try messaging your representatives? Probably won't go anywhere, but you never know.

[–] [email protected] 1 points 1 year ago

At the very least Illinois makes it easy to file state. And the IRS can still lead you to free resources. I'm just frustrated since I work out of state that that red state doesn't make filling their returns easy.

[–] [email protected] 1 points 1 year ago (1 children)

Sad I won't be able to use this this year. Hopefully, next year, they add joint filing.

[–] [email protected] 2 points 1 year ago

Tax Hawk and FreeTax USA are some free options that will still be available to you!

[–] [email protected] 1 points 1 year ago

They had free tax filling for a while. It was kind to force you to use the paid options. Free tax filling