This has been a long time coming, maybe we’ll get to the point like other countries where the government already knows what you owe or are owed.
Realistically what will probably happen is this gets gutted immediately the moment we get new Repub pres.That will be hard to do after 4-8 years of free filing if the D’s get in.
For w2 employees that makes a whole lot of sense, for the self employed it doesn’t really seem possible for the govt to calculate
Are there that many self employed? Most other countries seem to handle this the, imo, sensible way, where employees are auto-taxed, and the self employed file their own.
So then why not have a system that works for the 90% of people who are employees?
100% agreed, the complications are part of the equation but shouldn’t stop us from making a basic system that works for most people. As long as there’s a way to manually enter and categorize exceptions in the form of assets, extra income, investments, etc it would work for almost everyone.
What’s wrong with the existing electronic-free-file system?
The current actual free file requires you to fill out the info correctly and send it in. If you do this wrong, you are penalized, as the IRS already knows what you owe. You may also miss out on lucrative credits or breaks you are eligible for.
This new system will show you the info the IRS already has, and you can double check it and click “yes” instead. Its easier, likely more accurate, and most people will save money with it as it auto calculates credits. It will mirror the systems commonly in use in europe, which make taxes a breeze for most people.
Big tax brands hate this, as it drastically simplifies taxes for most Americans, which will collectively save americans billions/yr instead of it needlessly going in their pockets.
