this post was submitted on 18 Oct 2023
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IRS will pilot free, direct tax filing in 2024::Direct File is a shot across the bows of Turbotax, H&R Block, and others who have resisted free and simple tax filing for decades.

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[–] cyd@lemmy.world 172 points 11 months ago (3 children)

The rest of the developed world has had this for decades.

So I fully expect this initiative to be lobbied out of existence by Intuit and the rest of the tax filing industry.

[–] JoBo@feddit.uk 26 points 11 months ago (3 children)

Pretty sure most people outside the US never even have to file a tax return? Income tax is deducted at source by employers. Solicitors collect it if you buy/sell a house. Etc etc. You only need to do a tax return if you're self-employed or quite wealthy (in the UK, at least).

I am self-employed. It takes about an hour to do my taxes online.

[–] erwan@lemmy.ml 8 points 11 months ago (1 children)

In France everyone has to fill a tax return. It will be prefilled with your salaries, but you still need to add deductions (for example house renovations or child care) or special revenues like real estate.

But yeah, if you only have salaries and no deductions you just validate your prefilled return and be done with it.

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[–] zerofk@lemm.ee 7 points 11 months ago* (last edited 11 months ago)

Western Europe here. I’m old enough that I’ve had to file many paper tax forms. There have always been free services to help with that.

Now you can do it all online, and the known information is pre-filled. The last few years you don’t even have to click “accept” anymore, accepting is automatic if you don’t do anything.

That said, there still are paid services, but their main aim is to find all the ways to reduce what you pay (and they are likely used mainly by the well off).

[–] Agent641@lemmy.world 6 points 11 months ago

Australian here. The ATO (australian tax office) has a website you go to. It is pre-filled with various dada, your salary, your bank interest, uni loans, etc.

You add any additional salary, eg gig economy or crypto earnings (lol) and put in your deductions. I deduct heaps because I make money on the side renting out my camper van, and all its expenses are deductable from its earnings, but if you just have one job and thats it, then you can be done with your tax return in 10 mins, for free, online.

You can even preview your expected tax return before you commit. Once you commit, the return lands in your bank acvount usually within a week or so. You even get a receipt showimg what they spent your money on.

[–] eager_eagle@lemmy.world 16 points 11 months ago (1 children)

Update: An Intuit spokesperson contacted TechCrunch to call Direct File “wholly redundant,” and potentially a “financial nightmare” that will cost billions. But we won’t know until we try.

[–] GamingChairModel@lemmy.world 14 points 11 months ago (2 children)

that will cost billions.

Cost whom billions?

[–] prole@sh.itjust.works 3 points 11 months ago

Intuit's bottom line.

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[–] wildcardology@lemmy.world 4 points 11 months ago (1 children)

Yeah, even my third world country does this. But this only works if you only have a 9 to 5 job. Some people have more complicated tax.

This guy explains it a bit more:

https://youtu.be/Vu3T4ZXzOyw?si=rEa-U7GHoe_DapeV

[–] maniclucky@lemmy.world 16 points 11 months ago

Luckily, most people are 9 to 5ers. The vast majority of people have simple taxes that a trained monkey could handle if it weren't for the Intuit cabal.

Let not perfect be the enemy of good. This is a good step and from here, we can improve the system by steps until the only people who can't use it are tax cheats. Over optimistic? Yes, but I'm taking my wins to go.

[–] Arghblarg@lemmy.ca 136 points 11 months ago (3 children)

What? The government will actually collect taxes itself like every other sane country, instead of privatizing it out to middlemen grifters? Oh my, where is mah fainting couch?

[–] uis@lemmy.world 6 points 11 months ago (1 children)

Oh my, where is mah fainting couch?

Here it is, RariJack

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[–] sturmblast@lemmy.world 2 points 11 months ago (2 children)

You always had the ability to freely file your taxes.

[–] Goblin_Mode@ttrpg.network 16 points 11 months ago (1 children)

That guy is obviously exaggerating for effect and you are technically correct, but he's not wrong.

Companies like Inuit and H&R Block have been lobbying for ages to keep the free file forms ridiculously overcomplicated, difficult to navigate/complete, and dangerously generalized to the point where if you mis-interpret a line on one of your several non-intuitively named financial forms you will be committing tax fraud

It is objectively easier, safer, and more convenient to file taxes through one of these private companies and the is by design.

[–] Arghblarg@lemmy.ca 3 points 11 months ago

Thank you -- the point I was trying to make is that technically USians can file their own taxes, but that it's overly complicated, and many believe intentionally obfuscated, in order to push citizens to use private corps to do it for them (at a healthy profit for said corps).

Whereas, in Canada (and as I understand it, most other nations) the tax system is not so baroque as to discourage people from doing it themselves.

[–] hansl@lemmy.world 3 points 11 months ago (5 children)

In Canada, unless you have some weird stuff, the tax filing form is smaller than the census. They just need to confirm things that links your accounts. They already have your pay and taxes amounts from your employer, your bank tax statements from your banks, etc. So unless you’re doing something only like 1% of the population does, it’s a two pager online, 20 minutes in and out, that’s it.

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[–] DerArzt@lemmy.world 44 points 11 months ago (1 children)

Why can't they pre fill in the form and ask us if it's correct. The cast majority of us have pretty straight forward filling is.

[–] prole@sh.itjust.works 27 points 11 months ago (1 children)

Because Intuit and H&R Block have given more money to have it stay the same than anybody has for simplifying it.

[–] PizzaMan@lemmy.world 24 points 11 months ago (1 children)

Gotta love a bribery based legislature system.

[–] Kiosade@lemmy.ca 2 points 11 months ago (1 children)

Can’t like… a few million of us put a dollar in to make a big enough bribe to counter these assholes’ bribes?

[–] PizzaMan@lemmy.world 8 points 11 months ago (2 children)

People have tried with minimal success to do something like this IIRC.

The biggest problem is that corporate America has shit loads of cash. So much so that even if Americans were to pull the money together, it just wouldn't compete.

The solution is to vote politicians into power that don't accept bribes and are willing to criminalize them.

[–] TwoGems@lemmy.world 4 points 11 months ago (5 children)

So basically never vote for Republicans!

[–] PizzaMan@lemmy.world 4 points 11 months ago

More or less, yeah

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[–] aulin@lemmy.world 43 points 11 months ago (2 children)

a subset of lucky taxpayers in as many as 13 states

This makes it sound like some dystopian survival lottery.

[–] decended_being@midwest.social 7 points 11 months ago

I volunteer!

[–] TheHotze@lemmy.world 6 points 11 months ago

Four states signed up for the test, the rest "may be eligible" due to not having state income tax.

[–] fubo@lemmy.world 30 points 11 months ago (1 children)

I've been using IRS Free File Fillable Forms for a few years now. It's not super great but it does the job. It also has a dorky name.

[–] zerofk@lemm.ee 15 points 11 months ago* (last edited 11 months ago) (7 children)

Wait, do US citizens have to pay to file taxes? Or is this a service to help navigate the complexities?

[–] bob_lemon@feddit.de 58 points 11 months ago (1 children)

Not American, bit my understanding is that filling taxes in the US is complicated and confusing to the point where most people use paid software to do it. There is an obvious lobby of tax filing software companies keeping it that way.

[–] Cantankerousnuts@sh.itjust.works 20 points 11 months ago
[–] EsheLynn@lemmy.blahaj.zone 20 points 11 months ago

It isn't even that complex if you are doing basic forms. Literally plug in numbers from a document that gets mailed to you January 15.

These are just private companies that typically fleece you out of a percentage of your income tax return.

My ex made us file taxes using "experts" for 17 years, even though I proved to her I could do it myself, and came up with the same numbers the "experts" did, because "they insure you if something goes wrong"

It's a scam. TurboTax, Jackson Hewitt, it's a scam

[–] evatronic@lemm.ee 15 points 11 months ago

The government charges no fee to file.

However, until this year, lobbying has prevented the IRS from providing online services to help taxpayers fill out the forms or file directly, instead being required to outsource that and only expose a (wildly insecure btw) API for electronic filing.

Because the US tax code is also complicated as fuck and changes all the time, services like TurboTax exist and charge you to fill out the forms.

Repeat the above for each state you work / have income / own property in.

[–] pacoboyd@lemm.ee 6 points 11 months ago (1 children)

US citizen here. Used to file my own for free. At one point I bought a house and qualified for some tax credit so I paid an accountant to do my taxes that year to ensure I got everything right, bascially never went back becuase it was worth the $175 to litterally do nothing except mail my tax documents to an accountant.

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[–] CmdrShepard@lemmy.one 4 points 11 months ago

It's the latter.

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[–] autotldr@lemmings.world 12 points 11 months ago

This is the best summary I could come up with:


The IRS will test a free tax filing service in 2024 for a subset of lucky taxpayers in as many as 13 states, the agency announced today.

The program is more or less a direct result of funding provided by the 2022 Inflation Reduction Act, through which $15 million was earmarked for the purpose of exploring and implementing a simple, free, government-provided tax filing service.

Over the last year and a half, the IRS has been building out the pilot program, which it characterizes as being “one more potential option” on the continuum from self-managed Free File, to commercial products like Turbotax, to a tax prep professional.

The IRS describes Direct File as “a mobile-friendly, interview-based service” available in English and Spanish, intended for people with simpler tax situations like W-2s and common income credits and deductions.

This will in turn “allow the IRS to evaluate the costs, benefits and operational challenges associated with providing a voluntary Direct File option to taxpayers.” In software terms, we’d probably call this an alpha.

Intuit and others which have surreptitiously fought against simple, free, and transparent tax filing for many years (as ProPublica documented not long ago) are no doubt seething and scheduling emergency meetings.


The original article contains 467 words, the summary contains 202 words. Saved 57%. I'm a bot and I'm open source!

[–] JayDee@lemmy.ml 10 points 11 months ago

LET'S FUCKING GOOOO

[–] uis@lemmy.world 6 points 11 months ago (1 children)

Wait, there was no direct tax filing?

[–] CmdrShepard@lemmy.one 8 points 11 months ago

You've always been able to file directly, but it involves paper forms not software that can guide you through the process and identify extra forms/deductions/additions that you might need to include.

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