Warren introduces bill to make filing taxes easier

[SecularMotion]

Source: The Hill

Sen. Elizabeth Warren (D-Mass.) on Wednesday rolled out legislation designed to simplify and reduce the cost of filing taxes.

The bill was offered days before the tax filing due date. In most states, the deadline is April 18, but in Warren’s home state it’s April 19, because the previous day is Patriots’ Day.

"Congress should be making it easier for Americans to file their taxes each year, not bowing to the interests of the tax prep industry," Warren said in a press release.

The legislation, called the Tax Filing Simplification Act of 2016, would instruct the Internal Revenue Service (IRS) to develop a free online tax-preparation service. It would also bar the IRS from entering into agreements with tax-preparation companies that limit the agency’s ability to provide free preparation services.

Read more: http://thehill.com/policy/finance/276109-warren-introduces-bill-to-make-filing-taxes-easier

[Helen Borg]

1. Well done! Fuck TurboTax!

[seabeckind]

22. Got that right.

Long ago I tried Turbo. Thought it might be easier than organizing my stuff along the lines needed to fill out the forms.

Turbo was organized along the lines of the forms.

BFD.

Maybe they've changed but it's too late. Not worth the learning curve. My situation has gotten simpler over the years.

I think the big appeal for Turbo is the fear instilled in people about how difficult taxes are. Oh noes, it's the mathematicals.

Whistling past graveyards.

[AllyCat]

2. Freakin' Turbotax. $100 to file taxes

Used to be free, then it crept up. Every year. Ticks me off.

[George II]

8. I paid zero to efile using TurboTax a few weeks ago, $19 to efile my state return.

[AllyCat]

10. Goes by deductions and whatnot

It shouldn't cost anything if one just has the usual or basic stuff.

[George II]

14. Zero is zero. Even if I had lots of deductions, etc., all it would cost by mail....

..........would have cost me an envelope and a Forever stamp.

[AllyCat]

15. You really are just better than me then.

[cynzke]

30. I EFILED FOR FREE WITH TURBOTAX TOO!

Using it for the first time. Up to now for decades we filed with H&R Block, having to pay an average of $200+ dollars. Then I had a minor problem with the IRS of my own making and had to file an amended tax return which I did my self. H&R Block wanted to charge additional for filing the amended return. Well I won my dispute with the IRS, they claimed I owed additional money....I didn't. But I discovered our tax filings were simple, straight forward in the process, so we decided to give TurboTax a try. I was impressed. They were very professional, it was easy to do. You just take the info off your filing documents, enter that info when asked. We efiled on March 12 and received refund checks from the Feds and State two weeks later. The IRS website provides the names of multiple companies who offer on-line filing services, many for free. I was happy with turbotax and plan to use them next year.

[notadmblnd]

16. I use Tax Act. I pay about twenty bucks for it.

I've used it for years. The first federal filing is free. State was 9.99. You can use it and efile up to five returns, so if you're like me and do family's- it ends up being really cheap.

It's places like Liberty and Jackson Hewitt and H&R Block that are the huge rip offs. I worked for one of them one year. They charge by the form. For Example 1040 was $40.00 and State was $40.00, then if you itemized, that form was an additional charge. 1099's- additional charge, schedule-c another charge etc. And lets not even talk about the costs of the rapid refund (loans).

We were paid minimum wage + commission based on fees. I felt like a vulture working for them. Needless to say, I was not a high earner. I just couldn't take advantage of people by pushing a product I knew they couldn't afford. Often the fees would cost more than the refund people were getting back.

[fbc]

3. No chance

Bills like this have no chance as long as corporations (TurboTax, H&R Block, etc) can buy the votes of politicians in both parties.

[Ferd Berfel]

28. ANother reason we need Bernie in there.

HRC would just give a speech to them

[DavidDvorkin]

4. Excellent!

[mpcamb]

5. Hopefully this will make collection easier for the IRS to chase the big tax cheats.

Congress cut 18,000 jobs from the IRS staff a couple years back. That incapacitated reviews of bigger income, increasingly complicated cases. The other effect was that people with a question or two couldn't call up, get a human voice on the line without saint-like patience and time to burn.

Well played, Repubs and tea partiers in Congress!

[houston16revival]

6. Wish they'd let her write the tax code

bet it would be a lot simpler and fairer

[George II]

7. Will this enable Jane to release Bernie's tax returns before the NY Primary?

[FailureToCommunicate]

9. That is pathetic

And you know it. You really should delete it.

Or are you okay with the way things are?

[AllyCat]

12. Contribute to the discussion, stop taking swipes

Or leave.

[George II]

13. I'm staying. Now about those tax returns.

[JudyM]

25. That would leave GII no option but to leave. Wouldn't that be a loss.

[NurseJackie]

20. I was wondering the same thing. (Great question ...

... thanks for posting it here.)

[fasttense]

31. Exactly

They should send each citizen a completed tax form for their review and signature.

Right now it's one big game. Did you do it correctly? Did you get all your freebies in? Did you make a common mistake so we can play gotcha? Did you get it in in time or will you pay more for a busy life?

If you are going to make it this complicated, the IRS should be required to fill it out. For God sake, handing over your tax dollars to the goverment should not be so difficult.

[MadDAsHell]

18. Uh...filing isn't the issue. The overly complicated tax CODE is.

Priorities, Elizabeth.

[nitpicker]

19. It depends on what the taxpayer's situation is.

For a single/joint (no dependents) US citizen(s) not in school and under 65: Form 1040EZ if the income is under 100K and otherwise qualified

Form 1040A if taking a standard deduction, accounting for pensions/SS, dependents, etc

Form 1040 if itemizing deductions.

But it is the details that throw people.

For example, accounting for the deductible portion of child care expenses, determining what education credits will give the most benefit, etc.

And for those with stocks and bonds. or a rented-out house, it can get really hairy.

I still trust paper filing more than anything else. And all it costs me is copies of forms from the library and LOTS of time with spreadsheets.

[seabeckind]

21. Exactly.

The tax code is only complicated for people that have a complicated situation. And they are the ones who have the resources to deal with it.

Every time they"simplified" the tax code in the 80s I ended up paying more for somebody else's ride. And those people didn't care, they just wanted to get a coupon for lunch along with their ride.

Why would I give a dam if some corporation needs a room full of accountants? More jobs.

Library for forms? I pull everything online and they are fill in the blanks pdfs. Print them when you're done and archive your copy (sans ID info for security).

[JustABozoOnThisBus]

23. Sometimes, people without resources have complicated tax situations.

Figuring out "head of household" stuff can be interesting, as well as figuring out who's a dependent. Wading through the various energy credits, education credits, etc, can be a puzzle. And, maybe you have to know about them to begin with.

If you have a rental property, or own a small business, or are doing an estate tax for a relative, all that can be confusing.

Sometimes, it's easier to let a professional handle all that one time, then use that return as the template for doing the next year's tax yourself.

[seabeckind]

24. Isn't that a contradiction?

Energy credits and education credits?

Those aren't in the least difficult. Just some basic reading comprehension or doing a query.

Owning a rental property, owning a business?

These fall into the have the resources category. Unless he's a total penny pincher, it's better to hire a preparer and write it off. Safer than dealing with some piece of software that is likely just as complicated as the situation.

[think]

26. K&R.

[tclambert]

27. I saw the simplest tax form in Mad Magazine one time:

How much money did you make last year? ____________
Send that amount to us.

[silverweb]

29. Yup.

[font color="navy" face="Verdana"]I usually get to file free on line, but this year I had a 1099 in addition to my W2, so couldn't. That one extra piece of paper complicated everything.