Time to do your taxes

[Borderland]

I usually do our taxes this month and this caught my eye.

The IRS’s free tax filing tool, known as “Direct File,” will be fully open to eligible filers in 12 states starting March 12, the agency announced Friday, more than a month before the April 15 tax filing deadline. Forbes

https://directfile.irs.gov/

I going to be a guinea pig here and see if it is easier than the commercial software that usually hangs me up. I'm pretty sure we qualify. I understand the IRS forms no problem, but the last time I used it they wouldn't let me file online because I had no tax ID #. I mailed it in and it took 5 months for a refund.

Anyone else going to try this new program?

[blues]

Already filed with FreeTaxUSA in late January. Good that they're going to do it, though. (They'll probably leave out any deductions. )

[entropy]

I always thought we should all pay our taxes in a single check once a year. If so, all this crap would stop overnight.

[Crusader]

Already did mine, took it dry again.

[Trigger]

Ahhh, yes. “The dildo of taxes rarely arrives lubed”

[Borderland]

Value added tax (VAT) at point of sale would be my preference.

VAT is based on consumption rather than income. In contrast to a progressive income tax, which levies more taxes on the wealthy, VAT is charged equally on every purchase. More than 160 countries use a VAT system.

Not perfect but better than the thousands of pages of US tax code. More if you live in a state that has an income tax.

Or maybe just a flat tax with no deductions for anyone. Do your taxes on a post card based on the income reported to the IRS and state.

None of this will ever happen due to congress cutting deals for private interest groups.

[Paul D]

My 18 year old son filed taxes for the first time. Part of growing up...

[Totem Polar]

Man, don’t get me started on the IRS, and tech. They now run returns through AI-enhanced programs that use formulas to determine red flags; one of those is if charitable donations exceed a standard percentage of income (which assumes, evidently, that most Americans are cheaper than used Hi-point shoppers). My folks are #1, long retired, and #2 Catholic. Their 2021 return got pulled because their donations to catholic charities triggered a flag, and the IRS stated, somewhat unequivocally, that they had “under reported their income by 60K,” based on a generic formula that assumes nobody ever donates more than a few percentage points of their income.

It took a 400 dollar an hour tax attorney—who pretty much came up with the same numbers as my dad, go figure—and almost 2 years to get the 14K the IRS owed them for that debacle.

TL/DR: some damn algorithm decided that my ‘rents were too generous. WTF. They’re in their 80s, don’t really need all their retirement money, and want to support select Catholic shit, like building transitional housing for the formerly homeless or addicted re-entering the workforce—a charity that I support as well, because it’s been proven to work well in our region. And for this, they got run through the wringer by the IRS. I mean, nobody is really a *fan* of the IRS, but I’m at the point where I consider aspects of their modus operandi pure fucking evil.

At any rate, it’s the flavor of pure fucking evil we’ve got, so best get on with it, and keep every receipt.

[Borderland]

Man, don’t get me started on the IRS, and tech. They now run returns through AI-enhanced programs that use formulas to determine red flags; one of those is if charitable donations exceed a standard percentage of income (which assumes, evidently, that most Americans are cheaper than used Hi-point shoppers). My folks are #1, long retired, and #2 Catholic. Their 2021 return got pulled because their donations to catholic charities triggered a flag, and the IRS stated, somewhat unequivocally, that they had “under reported their income by 60K,” based on a generic formula that assumes nobody ever donates more than a few percentage points of their income.

It took a 400 dollar an hour tax attorney—who pretty much came up with the same numbers as my dad, go figure—and almost 2 years to get the 14K the IRS owed them for that debacle.

TL/DR: some damn algorithm decided that my ‘rents were too generous. WTF. They’re in their 80s, don’t really need all their retirement money, and want to support select Catholic shit, like building transitional housing for the formerly homeless or addicted re-entering the workforce—a charity that I support as well, because it’s been proven to work well in our region. And for this, they got run through the wringer by the IRS. I mean, nobody is really a *fan* of the IRS, but I’m at the point where I consider aspects of their modus operandi pure fucking evil.

At any rate, it’s the flavor of pure fucking evil we’ve got, so best get on with it, and keep every receipt.

I had the same problem with social security the year after I retired but not quite on that scale. It involved an audit done by a computer algorithm unseen by any human. Then the thing was actually batch signed by some administrator in the SSA without reviewing it. They said they paid me thousands of dollars too much and they wanted their money back. I don't mind digging through code so I spent a few hours uncovering their mistake. Had to do with paid vacation that accrued the year before I retired but was paid in January of the year I retired. I purposely retired in January to spread out my income over a year when I wasn't working instead of being taxed on my normal income plus a substantial amount over that. All perfectly legal according to tax code. The IRS had all of that information but failed to consider it. Short story, I filed an appeal with documentation and ask them to have a human show me where I owed them the money. Never heard about it again. What a bunch of assholes.

I was a bit incensed over the fact that my own government was trying to shake me down. Plenty of grifters out there without coming after me. I've just been a working stiff all my life until I retired and paid my taxes.

The SSA has a yuge problem on their hands but I didn't cause it and I'm not bailing them out.

[Artemas2]

All done.. except for the $1 dollar I own on my state filling. Now the only question is how hard do I make them work to earn it...