Right. Filing taxes should only be necessary if you have itemized writeoffs or wish to contest the IRS’s statement of your tax liability. They already know what you earned their your employer, what’s been paid in taxes, what basic credits your qualify for, etc. They know what you owe so long as you didn’t have expenses to apply for that they couldn’t assume or know about. The only reason they don’t already do that or, at least until now, have a free public system for filing, it’s because tax companies have lobbied for decades to be able to milk the public for cash to help them file and navigate their tax liability.
The argument has been since free filing means only the wealthy will hire accountants, free filing would discriminate against the poor given a few mistakes will be made here and there.
I may not need to mention that disingenuous argument is made by the pirates at Intuit and their lobbyists.
It should also be noted that if the vast majority of people do nothing special on their taxes and just accept the government’s assessment, then that leaves a much smaller group of people to be audited. And a much larger portion of those people will be those who are trying to weasel their way out of paying their share. Right now, with the IRS being criminally underfunded, they only focus on low hanging fruit, the small fries. With those people being boiler plater auto-accepting tax payers, that would mean the IRS has no reason to audit them and can focus on the big boys where the real cheats are. That’s another big reason we do not have that sort of system and why the IRS is currently so underfunded (despite every dollar spent on the IRS generating between 5 and 9 dollars in revenue from tax fraud/evasion). Those kinds of people pay to make sure it doesn’t happen.
They would go in the sections for 401ks and IRAs just like they do on the paper forms. The online form will have the same way to enter the additional deductions.
They should (and do?) have the same information your employer, bank, or brokerage files. i.e. the same forms you use to fill out your taxes now. They know what you contributed to you 401k and your other retirement accounts.
Solo 401ks are where you’re the employer (guess technically there’s some wiggle room for others to be in your 401k, but from the perspective of such a person, wouldn’t it just be a normal 401k?). So you have to report it yourself. The brokerage firm holding it won’t.
I understand why we do out taxes in the current situation, kinda. If the irs just sent you a bill it would be ripe for people thinking they were getting ripped off. People hating taxes and thinking they’re getting robbed is about as American as it gets. The whole boston tea party thing. People on both side doing the math holds people accountable. Also the current tax bracket situation kinda needs some end of the year math. Now, if it was a flat tax, a fixed percent… THAT EVERYONE pays no matter how much you make then it would be easy math. But they gotta make sure the middle class is paying 22% of their income to the feds and the billionaires pay one tenth of a percent… you know… for reasons. Then there are a billion write-offs and loopholes the rich can exploit, so they gotta keep those there.
If it was, say, 5% for everyone, no matter what you make, then it could easily just come out of your check as you get paid with no bs at the end of the year.
A flat tax is a poor tax. 5% of your income means WAAAAY more to someone working minimum wage with two kids than someone who has a second home, even if dollars and cents it’s way less. And the wealthy will evade a flat tax as much as they already do a progressive tax.
Now, if it was a flat tax, a fixed percent…But they gotta make sure the middle class is paying 22% of their income to the feds and the billionaires pay one tenth of a percent… you know… for reasons.
I fall into the lower end of the middle class (nationally) and my income tax is about 11%, but on top of that, after deductions and credits I end up deducting myself into the lowest tax bracket and collecting credits so I get a nice chunk back every year. To actually pay a full 22% of your income in income taxes, you must be making pretty good bank (and probably spending pretty good bank if you’re still considering yourself middle class)
Flat taxes are extremely regressive. The whole idea of tax brackets is that those with more ability to pay pay more and those with less ability to pay pay less. If you only make 22k/year you need all of that and that $2200 can be pretty lifechanging, but if you make 220k per year you can live without that $22k. There’s also fun stuff with how much tax revenue the government can actually bring in depending on who they tax harder, and generally it favors taxing the rich at a much higher percentage rate than they do the poor.
Right. Filing taxes should only be necessary if you have itemized writeoffs or wish to contest the IRS’s statement of your tax liability. They already know what you earned their your employer, what’s been paid in taxes, what basic credits your qualify for, etc. They know what you owe so long as you didn’t have expenses to apply for that they couldn’t assume or know about. The only reason they don’t already do that or, at least until now, have a free public system for filing, it’s because tax companies have lobbied for decades to be able to milk the public for cash to help them file and navigate their tax liability.
The argument has been since free filing means only the wealthy will hire accountants, free filing would discriminate against the poor given a few mistakes will be made here and there.
I may not need to mention that disingenuous argument is made by the pirates at Intuit and their lobbyists.
As opposed to the current system where the richest among us can hire a whole team of accountants to find every deduction possible?
Shhhh!!!
It should also be noted that if the vast majority of people do nothing special on their taxes and just accept the government’s assessment, then that leaves a much smaller group of people to be audited. And a much larger portion of those people will be those who are trying to weasel their way out of paying their share. Right now, with the IRS being criminally underfunded, they only focus on low hanging fruit, the small fries. With those people being boiler plater auto-accepting tax payers, that would mean the IRS has no reason to audit them and can focus on the big boys where the real cheats are. That’s another big reason we do not have that sort of system and why the IRS is currently so underfunded (despite every dollar spent on the IRS generating between 5 and 9 dollars in revenue from tax fraud/evasion). Those kinds of people pay to make sure it doesn’t happen.
Ew
?
The ick:
Greedy losers
Holy Christ someone using disingenuous appropriately, I’d almost given up on the word. Thanks for saving it!
How exactly is it usually misused? Its use here matches every other time I’ve seen it as far as I can tell
I always see it being used in place or dishonest for people who think they are the same and feel it makes them sound more intelligent.
I can tell you’re being ingenuous and I believe you
Oh didn’t know it was misused!
🍻
Solo 401ks/IRA also wouldn’t be something they know about until you file if I understand correctly. Guess you could that expenses?
They would go in the sections for 401ks and IRAs just like they do on the paper forms. The online form will have the same way to enter the additional deductions.
They should (and do?) have the same information your employer, bank, or brokerage files. i.e. the same forms you use to fill out your taxes now. They know what you contributed to you 401k and your other retirement accounts.
Solo 401ks are where you’re the employer (guess technically there’s some wiggle room for others to be in your 401k, but from the perspective of such a person, wouldn’t it just be a normal 401k?). So you have to report it yourself. The brokerage firm holding it won’t.
Well, yeah. If you’re self employed, you have to report yourself too.
I understand why we do out taxes in the current situation, kinda. If the irs just sent you a bill it would be ripe for people thinking they were getting ripped off. People hating taxes and thinking they’re getting robbed is about as American as it gets. The whole boston tea party thing. People on both side doing the math holds people accountable. Also the current tax bracket situation kinda needs some end of the year math. Now, if it was a flat tax, a fixed percent… THAT EVERYONE pays no matter how much you make then it would be easy math. But they gotta make sure the middle class is paying 22% of their income to the feds and the billionaires pay one tenth of a percent… you know… for reasons. Then there are a billion write-offs and loopholes the rich can exploit, so they gotta keep those there.
If it was, say, 5% for everyone, no matter what you make, then it could easily just come out of your check as you get paid with no bs at the end of the year.
A flat tax is a poor tax. 5% of your income means WAAAAY more to someone working minimum wage with two kids than someone who has a second home, even if dollars and cents it’s way less. And the wealthy will evade a flat tax as much as they already do a progressive tax.
I fall into the lower end of the middle class (nationally) and my income tax is about 11%, but on top of that, after deductions and credits I end up deducting myself into the lowest tax bracket and collecting credits so I get a nice chunk back every year. To actually pay a full 22% of your income in income taxes, you must be making pretty good bank (and probably spending pretty good bank if you’re still considering yourself middle class)
Flat taxes are extremely regressive. The whole idea of tax brackets is that those with more ability to pay pay more and those with less ability to pay pay less. If you only make 22k/year you need all of that and that $2200 can be pretty lifechanging, but if you make 220k per year you can live without that $22k. There’s also fun stuff with how much tax revenue the government can actually bring in depending on who they tax harder, and generally it favors taxing the rich at a much higher percentage rate than they do the poor.