> If I read this right, you can still use the free service the IRS provides if you make less than $66,000.
You did not. You can contact the private companies such as H&R Block and request Their free service if you make less than 66k - and subject yourself to their upselling and scam artistry, to try and get you to pay anything more than "free."
> I don't expect the IRS to make software for complicated taxes as that's a very difficult challenge
The vast majority of people file extremely simple taxes, as they're salaried workers with minimal assets. Most first-world countries provide a pre-populated tax form with the relevant data (since your employer already submits it), for you to peruse, edit, and hit the submit button on. If other countries do it without a problem, I don't see why it's too technically difficult for us to do the same.
Exactly. W-2 and 1099 income is really straight-forward. If anything the IRS should provide ways for you to submit all your non-W2/non-1099 income to them and roll them up into a new form so that no matter what your situation you can "fetch" your current returns, sign them, and submit them. No need for third-parties at all. Any additional complexity is a symptom of rent-seeking IMO.
It would be incredibly easy to set up a step by step flow to intake basic info or to confirm the numbers and hit send.(if not doing alway with you doing the taxes)
I can only suspect that this hasn’t happened because of strong lobbying.
Honestly if a company exists solely to solve an inefficiency they lobby to create, that’s not something I care to defend. Taxes are in the public interest and as such profit is just not a concern of mine. There’s plenty of other ways to make money than regulatory capture and rent seeking. I want the IRS to do what’s best for Americans and that is either providing a way to file free of charge or eliminating the complexities of the tax code. I don’t care which.
> You did not. You can contact the private companies such as H&R Block and request Their free service if you make less than 66k - and subject yourself to their upselling and scam artistry, to try and get you to pay anything more than "free."
I went back to school full-time for most of last year to get some helicopter ratings and didn't have much taxable income, so I used the free H&R Block service.
There was exactly 1 attempt at an upsell, and it was at the very beginning of the process where I was told if I used the free service I would have to enter all of my information but if I used the paid service they could pull my information from prior filings to save me some time.
Was your experience with one of the free programs different?
I 100% agree with you that simple taxes should be easier to submit. The IRS could & should send you a pre-filled simple tax form that you have the option to sign & send back or agree to online. No "competing" software solution required.
I don't think the IRS should build software for complex taxes & strategies is all I'm saying. That's what accountants are for.
I do understand the argument that a simple pre-done tax solution would mean some people would miss out on deductions. But if you calculate the time & cost it currently takes to submit your taxes, it probably equals out.
You did not. You can contact the private companies such as H&R Block and request Their free service if you make less than 66k - and subject yourself to their upselling and scam artistry, to try and get you to pay anything more than "free."
> I don't expect the IRS to make software for complicated taxes as that's a very difficult challenge
The vast majority of people file extremely simple taxes, as they're salaried workers with minimal assets. Most first-world countries provide a pre-populated tax form with the relevant data (since your employer already submits it), for you to peruse, edit, and hit the submit button on. If other countries do it without a problem, I don't see why it's too technically difficult for us to do the same.