[HN Gopher] FTC sues Intuit for its deceptive TurboTax "free" fi...
       ___________________________________________________________________
        
       FTC sues Intuit for its deceptive TurboTax "free" filing campaign
        
       Author : Kesseki
       Score  : 369 points
       Date   : 2022-03-29 17:53 UTC (5 hours ago)
        
 (HTM) web link (www.ftc.gov)
 (TXT) w3m dump (www.ftc.gov)
        
       | flerchin wrote:
       | Freetaxusa is so great.
        
         | rhexs wrote:
         | Love the product as well. Great pricing, handles my complicated
         | return fine. I do miss Turbotax auto importing everything, but
         | doing it manually helps me understand what I'm doing better.
        
         | CogitoCogito wrote:
         | Do you know if Freetaxusa supports declaring international
         | income/taxes?
         | 
         | Edit: I looks like they don't :(
         | 
         | Items Not Supported                   Foreign employment income
         | (Form 2555)
         | 
         | https://www.freetaxusa.com/supported_forms.jsp
        
       | belval wrote:
       | I know that ship has sailed, but I really wish politicians would
       | go back to making promises that have an impact on everyone like
       | abolishing tax fillings.
       | 
       | It might be different in the US, but in Canada I file my taxes
       | using the CRA's data directly. TurboTax even fetches it directly
       | from their website. What's the point? They have my T4, my T2202
       | (studies) and everything else. Just send me a letter telling me
       | how much money I owe/I am owed and that's it.
        
         | crooked-v wrote:
         | In the US, the Republican Party has a history of intentionally
         | pushing for cumbersome tax filing as part of encouraging people
         | to hate the idea of taxes in general.
        
           | throwawayboise wrote:
           | That's why I do my taxes manually and mail them in. I want it
           | to be as painful as possible.
        
           | belval wrote:
           | I don't think it's a Republican thing, the Liberal party and
           | the NPD in Canada are both left-leaning and they have a
           | majority yet they aren't pushing for this.
           | 
           | Pretty sure it's just run-of-the-mill lobbying and corruption
           | unfortunately. A typical "think of the jobs!" type of thing.
        
             | dwohnitmok wrote:
             | What parent is referring to is not just lack of pushing for
             | it, but _active_ campaigning against automatic filing. Not
             | a  "think of the jobs" but "automatic filing is
             | intrinsically bad."
             | 
             | See e.g. http://reason.org/files/ba148cd5babdda39f9ebb43b33
             | 6b01d4.pdf
        
             | monetus wrote:
             | I wouldn't say its _not_ a republican thing, just also a
             | many other people /groups thing. You're right, just wanted
             | to emphasize that.
        
             | heavyset_go wrote:
             | Republicans and the Liberal party in Canada are both
             | neoliberal when it comes to their economic policies, they
             | mostly only diverge on social issues and social services.
        
             | slavik81 wrote:
             | It kinda already had been addressed. SimpleTax was released
             | as donationware and the CRA introduced NETFILE and
             | Autofill. Filing a return today is way easier than in, say,
             | 2011. Buying TurboTax has been unnecessary for a decade.
        
           | justin_oaks wrote:
           | I've heard that too. And the idea is disgusting to me. I
           | assume those who genuinely espouse this idea are those who
           | are rich enough to have an accountant do all their taxes for
           | them.
           | 
           | Is it really necessary to "encourage" me to dislike taxes? Is
           | not the money leaving my pocket sufficient?
           | 
           | I've also heard Republicans claiming that IRS-provided tax
           | bills/refunds is equivalent to a tax. I guess the implication
           | is that the government is going to intentionally charge you
           | more.
           | 
           | Having to use TurboTax or someting like it is equivalent to a
           | tax, but it's paid to a corporation instead of the
           | government. If I had to choose between my money going to the
           | government and Intuit, I'd choose the government.
        
         | jeffwask wrote:
         | Intuit and HR Block spend way too much on US lobbying for that
         | to change. The first step has to be repealing Citizen's United.
         | 
         | https://www.propublica.org/article/inside-turbotax-20-year-f...
        
           | anamax wrote:
           | > The first step has to be repealing Citizen's United.
           | 
           | Citizen's United was a group that made a political-advocacy
           | movie and the FEC wanted to treat it as regulated political
           | activity.
        
             | UncleMeat wrote:
             | It was. And the consequence of this ruling was nearly
             | unlimited amounts money being spent on the reelection
             | campaigns of various lawmakers by corporations, with the
             | obvious intent being to install friendly legislators.
        
           | wnevets wrote:
           | The sad thing is its not even a lot of money if you consider
           | how much profit they make. Politicians are surprisingly cheap
        
             | jeffwask wrote:
             | True. Large on people scale not corporation scale which is
             | why treating corporations like people is a terrible idea.
        
               | wnevets wrote:
               | maybe the rest of us should start a gofundme so we can
               | pool together our funds and buy a few politicians.
        
               | munk-a wrote:
               | This has actually been done rather often in the past, you
               | can start a donor driven PAC that can compete with
               | corporate lobbyists with crowdfunding. It's generally
               | quite a bit cheaper too because while we all love to
               | criticize politicians for only listening to monied
               | interests if they can raise some campaign funds _and_ get
               | brownie points for their voting base they 're happy to
               | dramatically spurn the corporate funding they'd otherwise
               | accept with open arms.
               | 
               | Honestly though, actually reaching out to your
               | representatives and talking to them is far more effective
               | than most people assume.
        
               | rch wrote:
               | I'm considering starting a 501(c)(4) to advocate for
               | state level legislation, but I wonder if something like a
               | PAC might be more effective.
        
           | istjohn wrote:
           | Take 5 minutes to complain to your elected representatives
           | every time you file taxes.
        
             | ratsmack wrote:
             | The only people that your representative listens to is the
             | ones that fill their political war chest with a lot of
             | money.
        
           | revscat wrote:
           | CU will never be peacefully repealed.
        
         | xtracto wrote:
         | In Mexico if you are an average employee earning less than
         | around $50000 usd (I.e. most workers), your employer can "do"
         | your taxes (very simple, they report what they have withheld
         | from you).
         | 
         | If you have some amounts you want to regain from losses, etc.,
         | you can still do your taxes manually.
         | 
         | That means logging into the free MEX IRS platform, which shows
         | all your tax info preffilled. Most likely the stuff you want to
         | input is already there (all invoices in mexico are signed by
         | private/public keys through the IRS system).
         | 
         | So you just enter your bank account to get your money back. Or
         | get your reference to pay your taxes.
         | 
         | The system is really beautiful.
        
           | LinuxBender wrote:
           | What would be required for the US to adopt this solution?
        
             | lupire wrote:
             | Congress passes a law to amend the Free File program.
             | 
             | https://www.irs.gov/filing/free-file-do-your-federal-
             | taxes-f...
        
         | goosedragons wrote:
         | I missed including my T2202 one year and thought I owned a ton.
         | They then sent me a letter saying lol, no we owe you. So
         | pointless.
         | 
         | What annoys me now is that if you want a paper booklet you have
         | to request one in advance if you did not use one previously but
         | otherwise there is no free to everyone option to do it. You
         | either request a paper booklet or use 3rd party software.
        
       | 41b696ef1113 wrote:
       | Everyone should listen to this Planet Money episode [0] going
       | into some of the politics surrounding making taxes easier.
       | 
       | [0]
       | https://www.npr.org/sections/money/2019/04/03/709656642/epis...
        
       | a1371 wrote:
       | Intuit is one of the few companies that I don't hear any good
       | things about them. They always do something shady, last one I
       | recall was sharing employee salary info with Equifax.
       | 
       | That's why despite my bookkeepers protests, we moved to another
       | accounting service and when they bought MailChimp I pulled my
       | whole company out of that too.
       | 
       | I understand workplace is not always a place for activism, but I
       | could switch with reasonable effort and it made me feel good not
       | to fund this sort of behavior.
        
       | mywittyname wrote:
       | I found out from a friend that she paid $600 to have her taxes
       | done because (presumably) she falls for the dark patterns that
       | TurboTax uses. She's a low paid service worker whose tax return
       | can probably be done for free. And it is a sizable portion of her
       | income because of things like Earned income tax credits, child
       | tax credits, etc.
       | 
       | Fuck these companies.
        
         | ngokevin wrote:
         | The government has enough information to process the taxes for
         | most of us or at least publicly make it super easy. TurboTax
         | just lobbies the government to not do so.
        
           | amelius wrote:
           | We need some FOSS freedom fighters to talk to the government
           | and fix this with or without free software.
        
           | tombert wrote:
           | About two weeks ago, I got a letter from the IRS telling me
           | that I owe an extra eight-thousand dollars from my 2020
           | return, with a $1000 fine and $200 interest as a result. [1]
           | 
           | I'm not mad about owing the money, but what annoys me is if
           | they have enough information to know that I underreported,
           | then why am _I_ part of this equation to begin with? Clearly
           | they have enough of my tax data to know I screwed up, so why
           | don 't they just send me a bill once a year? I don't see why
           | Intuit (or HR Block or TaxAct or Jackson Hewitt etc) need to
           | be part of this transaction at all.
           | 
           | [1] It was an honest mistake on my end, I forgot to report a
           | sizeable stock sale I did in 2020.
        
             | thepangolino wrote:
        
             | lupire wrote:
             | You can file taxes without a software package, if you want.
             | You have to file because they want you to report things
             | they don't know about, and also if you want to claim
             | itemized deductions.
        
               | mattnewton wrote:
               | It'd be great if they just billed me and I was on the
               | hook for correcting them however. The current method is
               | doing math homework under penalty of being fined.
        
               | NeutronStar wrote:
        
               | codetrotter wrote:
               | Here in Norway, the government fills out our tax forms
               | for us with all of the information that has been reported
               | to them by our banks, our employers, etc. It is then our
               | responsibility as tax payers to look over the tax forms,
               | add anything not included, and adding any additional
               | claims for deductions.
               | 
               | By comparison, the needless busywork that the IRS puts
               | the tax payers through is nothing short of ridiculous
               | really. It only serves to waste time and effort, and
               | there is plain and simple no reason whatsoever why the
               | IRS could not do it like Norwegian tax authorities does.
               | Our system here in Norway is not perfect either, but the
               | citizens of the United States, and the US government,
               | would benefit hugely from a tax filing system built to
               | help you file taxes the way that ours does for us.
        
             | rootusrootus wrote:
             | If it's the first time you've screwed up the return, you
             | might try calling them and ask to have the penalty waived
             | or reduced. That works pretty often on first-time
             | penalties.
        
         | naoqj wrote:
         | Darwin approves.
        
         | sillysaurusx wrote:
         | Realistically, how would you do your tax return for free?
         | 
         | Keep in mind that every service worker is terrified of an
         | audit. The cost is much higher when you don't have resources.
         | 
         | EDIT: I think I didn't phrase this very well. My point was that
         | the average service worker is trained to be terrified of the
         | IRS. These people are already usually paying hefty fines
         | because they missed their returns in prior years. That's why
         | they take the path of least resistance, and just pay someone
         | else as a shield against this.
         | 
         | So it's not particularly surprising that TurboTax has swindled
         | this person out of $600 with their upsells. Nor should she be
         | condemned as a fool. If you were in her shoes, you might do the
         | same thing.
        
           | andybak wrote:
           | Maybe look how other countries do it?
           | 
           | Like with your health system, a lot of us are slightly
           | baffled by how broken things are in the US.
        
           | rurp wrote:
           | There are many free filing options for anyone with an average
           | salary from a straightforward W2 source. I went years without
           | paying to file, until I got into freelancing and a higher tax
           | bracket.
           | 
           | Being audited isn't much of a concern if your only source of
           | income is a typical W2 job. The average service worker isn't
           | throwing money around in stocks, crypto, blackjack, and
           | corporate entities.
        
           | washadjeffmad wrote:
           | 1090ez, or any of a dozen free-file options? State returns
           | are cheap if not free almost everywhere.
           | 
           | The vast majority of the people who qualify for free tax
           | filing have nothing to audit. The government makes enough
           | money off their deductions, not to mention what they generate
           | having to spend >50% of their income to stay afloat, to
           | overlook a few unreported tips or sneaker sales.
        
           | tonguez wrote:
           | I would get rid of the tax return process as the only purpose
           | for its existence is to waste the time of poor people and
           | thus keep the government boot on their face.
        
         | jdavis703 wrote:
         | Heck I'm a high skilled, non-essential employee and I fell for
         | this trap for years. Next year I'm using Cash App. But it's
         | wild what brand recognition can do.
        
         | [deleted]
        
       | tareqak wrote:
       | FTC's own press release: https://www.ftc.gov/news-
       | events/news/press-releases/2022/03/...
        
       | alephnan wrote:
       | I'm curious how independent the FTC is from political pressure
       | and lobbyists?
       | 
       | In the way there is a revolving door with the SEC, is there a
       | revolving door at the FTC?
        
         | usednet wrote:
         | Yes. The FTC, BigLaw, and tech are highly interconnected.
         | 
         | > Public Citizen found that just over 75 percent of top FTC
         | officials (31 out of 41) over the past two decades have either
         | left the agency to serve corporate interests confronting FTC
         | issues, joined the agency after serving corporate interests on
         | these issues, or both.
         | 
         | https://www.citizen.org/article/ftc-big-tech-revolving-door-...
        
           | alephnan wrote:
           | Right, so when an agency like the FTC flexes their muscle,
           | I'm a little bit cynical.
           | 
           | Are they reminding BigTech that hey, they have political
           | power and some palms needs to be greased.
        
       | perardi wrote:
       | I know, I know, there's so many dark patterns in TurboTax that
       | it's cliche to point them out...
       | 
       | ...but man, this was a particularly egregious example I came
       | across this year.
       | 
       | https://imgur.com/ojpLvRW
       | 
       | You can pay for TurboTax using your refund...with an _additional
       | $39 processing fee_. That is just wild.
        
         | jackson1442 wrote:
         | I think that's actually somewhat standard- even FreeTaxUSA (my
         | personal choice) does this because they're essentially letting
         | you use their product on credit.
        
       | ed_elliott_asc wrote:
       | Is there a way to do your taxes without paying any money?
        
         | Sohcahtoa82 wrote:
         | Doing them yourself is an option, but I prefer to be guided by
         | software.
         | 
         | Credit Karma has an option to do taxes that is completely free,
         | but I tried it once a few years ago and didn't care for it.
         | 
         | I use FreeTaxUSA which offers free federal and $7 state taxes.
         | Cheaper than a meal at Taco Bell.
        
         | ensignavenger wrote:
         | For most folks, CashApp Tax works fine. Its 100% Free. I have
         | used it since it came out (originally Credit Karma Tax).
        
           | Jxl180 wrote:
           | I own an LLC, traded stocks and crypto and CashApp handled it
           | all flawlessly.
        
         | aidangrimshaw wrote:
         | I'm working with other contributors on https://ustaxes.org, an
         | open source tax filing webapp
         | https://github.com/ustaxes/UsTaxes.
         | 
         | Currently, many Federal tax forms are supported, as well as tax
         | filing for the state of Illinois. Filing for Oregon and
         | California is under development!
        
         | Someone1234 wrote:
         | In theory, yes.
         | 
         | But few people actually do because it is a painful experience.
         | The IRS' documentation isn't actually bad, it is just that the
         | tax system itself is incredibly (and needlessly) complicated.
         | 
         | For example, you'd need to hand-enter every stock trade (even
         | automated re-investments) even though your broker likely
         | already electronically sent this information to the IRS. Using
         | a digital solution they can often log into your broker and
         | auto-import everything.
         | 
         | For how under-budget the IRS is and how bad the tax system is,
         | they do ok, but the whole thing needs a massive overhaul but
         | there is money in politics keeping it bad in order to profit
         | private companies (plus there's a certain demographic that
         | "hating taxes" is a political position that needs to be kept up
         | with, essentially self-reinforcing-itself).
        
           | crooked-v wrote:
           | Also, one might ask "why doesn't the IRS just send you a pre-
           | filled copy of the forms, and you only correct them if
           | they're wrong?".
           | 
           | The answer is "because Congress passed a law saying they
           | can't".
        
             | zentiggr wrote:
             | Doing the next step of the root cause analysis leads to
             | "Intuit lobbied Congress and the IRS hard enough that they
             | passed a law, and the IRS conspired to change their
             | procedures".
        
               | rootusrootus wrote:
               | Except Intuit hasn't paid anywhere near enough in
               | lobbying money to have that kind of effect. Grover
               | Norquist is the last step in your root cause analysis.
        
           | paulpauper wrote:
           | what is to stop someone from just underreporting and blaming
           | laziness or the process being too complicated. either the
           | govt. audits it themselves or does nothing. the benefit of
           | the doubt is on your side.
        
             | LanceH wrote:
             | Late fee interest and penalties are on their side. It's
             | statutory that you get it right, intent doesn't matter.
        
           | UncleMeat wrote:
           | We used to have to hand enter everything anyway. The auto-
           | import stuff is fairly new for all of the tax filing
           | products. TurboTax also fucks up the auto import for my RSUs.
           | Every single year there are a handful of people on the
           | financial planning groups posting "wtf I got a letter from
           | the government saying I owe $80,000" and it is uniformly
           | because one of these services' autoimport system set all of
           | the cost bases for RSUs to $0.
           | 
           | The end result is that I hand-enter anyway, even when paying
           | $120 to Intuit for the privilege.
        
         | jfengel wrote:
         | If you made under $100,000 from salary and don't otherwise have
         | any complications (like dependents), a form 1040EZ really is
         | simple. There's no reason to use software for that. It's quite
         | straightforward.
         | 
         | If you have deductions, stock sales, a nanny, a business, etc
         | then you need the regular 1040 and various schedules, and those
         | are all complex enough that you'd probably benefit from
         | software. It's not absolutely required, but there are enough
         | ways to do it wrong (like adding up the wrong lines) that the
         | peace of mind alone is probably worth it to you.
        
           | drdec wrote:
           | FYI, the 1040EZ form no longer exists. It was eliminated in
           | the name of simplifying the forms (don't ask me how that's
           | supposed to work).
        
         | [deleted]
        
         | ohples wrote:
        
         | bombcar wrote:
         | If your tax situation doesn't change much from year to year,
         | you can have a CPA or even TurboTax do this years, and next
         | year fill out the new forms based on the new numbers.
        
         | nonameiguess wrote:
         | You can go marry an Air Force officer. Military installations
         | offer free professional preparation services to anyone
         | stationed at the installation.
        
         | mindslight wrote:
         | Just pirate TurboTax. Torrent it, set up a fresh windows VM
         | with Internet access via VPN, install/update turbotax, crack it
         | to get the state version, make sure it's got live versions of
         | all the forms you need, disconnect Internet access (never to be
         | reconnected), copy previous year's data files to VM, do taxes,
         | print out and file by mail, copy data files off to long term
         | storage, save VM image in case you need to revisit any time
         | soon.
         | 
         | Sure, it's a bit tedious. But short of a privacy-preserving
         | libre solution or just doing them manually with fillable PDFs,
         | you'd have to do most of that isolation prepwork anyway. So
         | fuck 'em.
         | 
         | P.S. The directions for modifying .NET assemblies to crack
         | TurboTax are simple and easily followed by anyone with basic
         | programming skill. So if you're fine trusting Intuit you could
         | obtain the installation files from them directly, crack it
         | yourself, and even have e-filing capability from what I
         | understand.
        
           | Jxl180 wrote:
           | Or just use CashApp Tax. Your procedure makes it sound like
           | Turbo Tax is the only game in town. Turbo Tax isn't worth any
           | of the effort you mentioned.
        
             | mindslight wrote:
             | TurboTax is one of the few pieces of tax software meant for
             | offline use, thus letting you keep your personal
             | information from entering the permanent records of
             | surveillance valley.
             | 
             | Just quickly looking at CashApp Tax, it appears it is an
             | Android app that likely will want network access to
             | function. If that meets your requirements, good for you.
             | But it doesn't meet mine. I'd also rather use the same
             | software year to year so that information is carried
             | forward, rather than being subject to whichever way the
             | startup winds blow.
        
         | JumpCrisscross wrote:
         | > _Is there a way to do your taxes without paying any money?_
         | 
         | Do them yourself. The IRS has guidance and resources for those
         | who are interested [1].
         | 
         | [1] https://www.irs.gov/filing/free-file-do-your-federal-
         | taxes-f...
        
           | lastofthemojito wrote:
           | You can absolutely do your own taxes, either on paper and
           | mail the forms or (possibly) via the Free File Fillable forms
           | mentioned on the page you linked (as long as you don't hit a
           | corner case). The Free File Fillable forms page [0] says
           | "Make sure we fully support the forms you need" and links to
           | another page with a lengthy list of limitations [1].
           | 
           | So yeah, we're in a place where the IRS says taxpayers
           | "should file electronically with direct deposit if at all
           | possible" [2] but also informs taxpayers that not everyone
           | can use the IRS's forms to file electronically.
           | 
           | 0: https://www.irs.gov/e-file-providers/free-file-fillable-
           | form...
           | 
           | 1: https://www.irs.gov/e-file-providers/free-file-fillable-
           | form...
           | 
           | 2: https://www.irs.gov/newsroom/irs-begins-2022-tax-season-
           | urge...
        
             | CaptainNegative wrote:
             | Among unsupported forms, the validation step in Free
             | Fillable Forms also has a number or bugs that prevents
             | filing due to phantom arithmetic errors. It's beyond
             | frustrating filling out everything on FFF, then needing to
             | copy everything onto a third party service just to pay for
             | the privilege of having my data harvested by a shady
             | company and electronically filed exactly as it would have
             | otherwise. The current situation is unworkable.
        
         | robotcookies wrote:
         | Yes, I used to file taxes with paper forms from the IRS years
         | ago and this is free. There isn't even an income limit to do it
         | this way as far as I know. But of course it's more of a hassle
         | than doing it online as you have to buy stamps, go to the post
         | office, etc.
        
         | munk-a wrote:
         | It is quite possible to do them yourself especially if your
         | taxes are relatively simple - and in a lot of other countries
         | you'll just be mailed a bill or credit depending on how much
         | your withholding was along with a receipt to review if you
         | think they messed up somehow. American and Canada are held
         | hostage by tax software lobbyists though.
        
       | foxyv wrote:
       | Did my taxes this year using TurboTax like always. Sold some
       | stocks this year and all of a sudden I am paying $90 for TurboTax
       | "Premium" to put a couple additional entries in the 1040. What a
       | racket. Next year I'm going to file using something else. This
       | has gone on too long.
        
         | bombcar wrote:
         | Dirty secret: all versions of TurboTax have all the _forms_ -
         | you can just switch to form mode and enter the values yourself
         | into the forms.
        
           | munk-a wrote:
           | Even dirtier secret - the government is legally required to
           | publish all the forms in an accessible manner. You can just
           | download them without ever even installing any Intuit
           | software.
           | 
           | Just to back this up with facts - here are the braille and
           | spanish language offerings which took all of two seconds of
           | googling:
           | 
           | https://www.irs.gov/forms-pubs/irs-tax-forms-in-braille-
           | and-...
           | 
           | https://apps.irs.gov/app/picklist/list/formsPublications.htm.
           | ..
        
         | bluGill wrote:
         | Let me know if you find anyone that is better. I'm sick of
         | TaxAct premium for the same reason.
         | 
         | I'm ready to go back to doing my taxes by hand and mailing them
         | in. (I'm old enough to remember doing that - it is faster than
         | doing it on the computer except for the one year I forgot to
         | copy line 13 of form 1234A to line 56b of form 9876B) So many
         | dark patters where the software is pretending to take time
         | doing a complex calculation that takes a computer a couple
         | nanoseconds, not to mention all the time to skip over things
         | that don't apply to me.
        
           | colinmhayes wrote:
           | I'll second free tax usa. Quick process, $10.
        
           | rajup wrote:
           | FreeTaxUsa is great for most usecases, including stock sales.
           | It is free for federal filing, state is a bit extra ($10)
        
             | ThatPlayer wrote:
             | I used them for the first time and it was fine. But it
             | doesn't look like they support the state form I plan to use
             | for this year. Already contacted them asking for it next
             | year, but didn't receive a concrete answer.
        
             | davchana wrote:
             | Plus until now they always have 10% off with code FTUSA10
        
             | 1991g wrote:
             | I also would vote for FreeTaxUSA, they have served me well.
             | I do however note the irony of them being named FreeTaxUSA
             | and in the same breath, mentioning that it costs to file.
             | Especially given the context of the thread in general.
        
             | tomc1985 wrote:
             | FreeTaxUsa forced me to manually enter my stock last year,
             | I had to provide a supplemental PDF form outlining each
             | transaction.
             | 
             | Obnoxiously, this year TurboTax's integration with Binance
             | is broken. I haven't checked in a few weeks but it won't
             | accept Binance CSV's either. This needs to be fixed soon.
        
               | pvarangot wrote:
               | TuboTax web or the desktop application? Last year their
               | Schwab integration was broken on the web version but not
               | on the desktop version.
        
             | oh_sigh wrote:
             | I like them for the most part, but FTU tricked me this year
             | by forcing me to upload certain forms for a state EV tax
             | credit, and then just completely ignoring those uploaded
             | forms and not sending them to my state tax agency. I only
             | noticed it because I went over the final packet of state
             | tax forms and noticed the ones I uploaded weren't included.
        
         | Osiris wrote:
         | I use FreeTaxUsa.com. It's free for federal filing.
        
         | tzs wrote:
         | I used Cash App Taxes. I sold some mutual fund shares in 2021
         | and it handled it fine.
         | 
         | Here's a page describing forms and situations it does not
         | handle [1].
         | 
         | One thing that might annoy some people is that to login to the
         | Cash App Taxes website you must use their mobile app. The
         | website shows a QR code which you scan from the mobile app.
         | 
         | It uses the approach of asking you various questions in order
         | to figure out what forms it thinks you need to file, which is
         | an approach that some people do not like.
         | 
         | If there is a form you know you have to do that it missed or
         | you have a 1099-something that it has not asked you to enter it
         | took me a little while to figure out how to deal with that.
         | What you do is type the name of the form into the help search
         | box. One of the results will be a link to take you directly to
         | the page that deals with that form.
         | 
         | [1] https://taxeshelp.cash.app/s/article/Forms-and-situations-
         | Ca...
        
           | sagarun wrote:
           | Cash App taxes has a bug where mortgage interest deduction is
           | not handled properly with state vs federal. If your mortgage
           | is more than 750000$ and your state is California or a state
           | allows deduction up to a million $ in mortgage interest then
           | you will end up getting a lower refund.
           | 
           | I'd double check by filing with another software just to make
           | sure (i.e https://www.freetaxusa.com/)
        
       | dang wrote:
       | Related:
       | 
       | https://storage.courtlistener.com/recap/gov.uscourts.cand.39...
       | 
       | https://arstechnica.com/tech-policy/2022/03/turbotax-maker-s...
       | (via https://news.ycombinator.com/item?id=30846884, but we've
       | merged the threads)
        
       | pianoben wrote:
       | Fucking _finally_!
       | 
       | Someday our descendants will have sane and automatic filing like
       | the rest of the developed world; I can only hope to live long
       | enough to see the death of this stupid industry.
        
       | gjsman-1000 wrote:
       | > "In some TurboTax ads, "almost every word spoken is the word
       | 'free.'"
       | 
       | Really? There are some TurboTax ads where _every_ word spoken is
       | the word  'free.' ;)
        
         | MBCook wrote:
         | Wait, it's NOT free free free free?
        
         | throwawaygh wrote:
         | Almost. I thought that was hyperbole too, but... holy shit,
         | they aren't kidding:
         | 
         | 1. https://www.tvcommercialad.com/watch/XosLKPV
         | 
         | 2. https://www.youtube.com/watch?v=1qDZA7j4rXU
         | 
         | 3. https://www.youtube.com/watch?v=jZV7l3AD5Nc
        
       | kn0where wrote:
       | Good, but the situation is so much worse than just this. Most
       | Americans could just use the IRS Free File system, which the
       | article mentions, instead of ever giving money to Intuit or H&R
       | Block ever again. But we don't heavily advertise that system,
       | because that would encourage people to use it, and if you're
       | going that far, you might as well let the IRS build its own tax
       | software with all your information prefilled like they do in
       | civilized countries.
       | 
       | As long as the job of Congress is to kiss the ass of every
       | powerful industry lobby, we won't have good things.
        
         | itslennysfault wrote:
         | .... and just to be completely clear, this is only the way it
         | is because of HUGE lobbying spends by Intuit.
        
           | saddestcatever wrote:
           | IMO: The mind blowing element, is that in the grand scheme of
           | things _It 's not actually that much money_.
           | 
           | I'm not sure if anyone knows the true amount, but estimates
           | put the number spent on lobbying around a few million
           | dollars. Opensecrets.org estimated ~$3.2m lobbying in 2021.
           | 
           | https://www.opensecrets.org/federal-
           | lobbying/clients/summary...
           | 
           | For a company that makes $2 BILLION dollars a year, the
           | amount they actually spend lobbying and otherwise influencing
           | governments is shockingly small.
        
             | throwaway81523 wrote:
             | That is called the
             | https://en.wikipedia.org/wiki/Tullock_paradox .
        
             | _jal wrote:
             | Politicians are surprisingly cheap, so long as you're
             | talking about topics that don't get a lot of press.
             | 
             | And thanks to _Citizens United_ and similar decisions that
             | have driven up the cost of US elections, US pols are very
             | expensive compared to their counterparts in other
             | countries.
             | 
             | It does make me wonder about the efficacy of standing up a
             | lobbying fund to lobby to Do The Right Thing about
             | something. This would be a prime example - I would happily
             | pay $100 to compete with Intuit's lobbying here. I'm also
             | certain there are 31,999 other people in the US who feel
             | the same way.
             | 
             | I just don't have the energy to do the work of learning how
             | to set up the corporate structure around that to make it
             | legal.
        
               | l33t2328 wrote:
               | > standing up a lobbying fund to lobby to Do The Right
               | Thing about something. This would be a prime example - I
               | would happily pay $100 to compete with Intuit's lobbying
               | here. I'm also certain there are 31,999 other people in
               | the US who feel the same way.
               | 
               | Congratulations, you just independently invented the
               | concept of a Political Action Committee.
        
               | glenstein wrote:
               | I completely agree that politicians are not cheap at all.
               | The reality is that so much of the money that's invested
               | in influencing politicians is through means other than
               | campaign contributions.
               | 
               | It's through season tickets to the network of friends
               | that know the politician, it's through donations to the
               | university that gets their child into college, it's
               | through pacs and issue groups, it's through lining up and
               | bundling donors to max out their individual donations to
               | a politician's preferred presidential candidate, it's
               | through flying them out to special events, it's through
               | hiring their best friend, it's through investing in their
               | brother in law's new business, it's through buying things
               | at their husband or wife's charity auction, it's through
               | arranging a job for them after they retire from politics,
               | it's through finding them a buyer for their investment
               | property, it's through an entire network of investments
               | one or two degrees removed from the politician.
               | 
               | The only sliver of that that people typically cite is the
               | amount directly spent on campaign contributions which (1)
               | mistakenly makes it seem like politicians are cheap and
               | (2) is underwhelming, to people who cite those numbers
               | sincerely believing that that's the only economic
               | dimension to political influence.
        
         | lelandfe wrote:
         | TurboTax and H&R Block aren't part of Free File as of 2021, so
         | the supported software under the program are now things most
         | Americans wouldn't recognize, either.
         | 
         | The problem truly is advertising, like you said. The government
         | just cannot out-advertise companies that are doing $9 billion
         | in revenue.
        
           | dboreham wrote:
           | Of course the government could out-advertise them. It'd be
           | like Google advertising its own products on its search engine
           | -- the government controls all end-user tax related
           | communications.
           | 
           | They just don't want to because someone bribed them to not do
           | so.
        
             | lelandfe wrote:
             | _Everyone_ uses Google. How many more people see TurboTax
             | 's ads vs. government "tax related communications?"
        
               | notwedtm wrote:
               | Every single tax payer when they get paid, or when they
               | pay their tax bill each year.
        
               | lelandfe wrote:
               | The years in which I've had a refund, I have had the
               | amount directly deposited. The years in which I've paid
               | have been through a software portal that supports credit
               | card payment.
               | 
               | I, personally, have no idea what the government's
               | "communications" have been regarding taxes outside of
               | news articles.
               | 
               | Either way, though, this is no competition for a year's
               | worth of massive advertising campaigns.
        
         | sillysaurusx wrote:
         | I tried to make this point in the other thread, so let me take
         | another stab at it here.
         | 
         | You say this like it's just a thing that people can do. But the
         | people you're telling to "Just do this" have already been
         | trained to be terrified of the IRS. Many of them are currently
         | paying huge fines due to missing their returns in prior years.
         | Any small mistake can hang you when you're impoverished,
         | precisely because you don't have any room for error.
         | 
         | "Most Americans" is an umbrella that contains mostly service
         | workers. The people that serve you food, bag your groceries,
         | drive your amazon purchases, and so on. If you've spent a lot
         | of time with people like this, I encourage you to ask them
         | "Hey, do you pay someone to do your taxes, or do you do it
         | yourself? Why?"
         | 
         | I'm pretty sure the conversation will go "I pay. I just don't
         | want to worry about it." And that "worry" is because they've
         | been hit hard in the wallet, because the (American) government
         | is not friendly when it comes to messing up your taxes.
         | 
         | If I am mistaken about this, I would like to know. But this is
         | true of my extended family, and I'm pretty sure it's true for
         | most of their friends.
        
           | dreamcompiler wrote:
           | This is quite true, even excluding service workers. Every tax
           | season I have conversations with bright, well-to-do, college-
           | educated people who seem to live in terminal fear of the IRS.
           | They're absolutely terrified that if they get one tiny thing
           | wrong during the tax filing process, they will immediately be
           | arrested and shipped off to prison. So they always pay
           | someone to file their taxes, even if they're simple. It's
           | mind-boggling.
           | 
           | The irony is that -- as you said -- the IRS hits people of
           | modest income harder, because the IRS doesn't have the
           | resources to take on many battles with wealthy people who can
           | afford lawyers. This means the IRS mostly goes after easy
           | targets who won't fight back. Yet another tax on being poor.
        
           | wolverine876 wrote:
           | > But the people you're telling to "Just do this" have
           | already been trained to be terrified of the IRS. Many of them
           | are currently paying huge fines due to missing their returns
           | in prior years. Any small mistake can hang you when you're
           | impoverished, precisely because you don't have any room for
           | error.
           | 
           | Why do you say that? I've never encountered people who were
           | terrified nor have I read about it. How many people are
           | paying "huge fines"? AFAIK, the IRS's audit capacity is
           | greatly underfunded.
        
             | sillysaurusx wrote:
             | My wife and her parents. Not her sisters though,
             | admittedly.
             | 
             | It's possible that I'm just reacting to a biased sample of
             | people. But my impression was that this is a common mindset
             | for a nontrivial subset of the population. Being afraid of
             | doing something wrong on your government forms isn't really
             | an irrational fear. Anyone who's owned a car in Chicago
             | will tell you that the city's goal is to extract as many
             | thousands of dollars from you as possible - it was still
             | one of my worst financial decisions of all time. And that
             | wasn't even taxes.
             | 
             | The broader point is that "dealing with the government" is
             | a big messy bucket that people usually want to pay a
             | janitorial service to dispose of. Even things like "being
             | reminded to file your taxes right now" is valuable in that
             | situation. Most people don't have a clue what day they need
             | to file by. They don't learn it in school, and their
             | parents either don't know or didn't bother to teach them.
        
               | wolverine876 wrote:
               | > Most people don't have a clue what day they need to
               | file by.
               | 
               | That does not at all match my experience, it's widely
               | discussed every year, and I wonder how many returns are
               | late.
        
               | sillysaurusx wrote:
               | Alright. Thanks for the data point.
               | 
               | But you left out income. The idea here is that HN users
               | tend to be a biased sample. Most of us aren't
               | impoverished.
               | 
               | I would bet that your family's discussions are due to the
               | fact that you have a stable, fully functional family.
               | Most people outside of tech aren't as fortunate.
               | 
               | If I'm mistaken about this, and your family isn't middle
               | class or higher, then that's an important data point
               | though.
        
               | wolverine876 wrote:
               | I'm not talking about my family discussions. Just turn on
               | the local news and you'll see them discuss it, including
               | the annual segment about the lines at the post office.
        
               | sillysaurusx wrote:
               | Ah.
               | 
               | For what it's worth -- and it's possible I'm living in a
               | bubble, but -- the only family member I know that watches
               | the news is my dad. Everyone else quietly switched to
               | netflix long ago. The news mostly comes from the drama of
               | the day; things that show up on facebook. (The recent
               | Chris Rock drama, and other nonsense like that.)
               | 
               | I recently followed CBS on TikTok though, to my surprise.
               | They had some of the best coverage of the Ukraine war
               | I've seen. I even joked to my wife that the circle of
               | life was complete: not only have I never watched the news
               | in years, and not only does my dad have no clue what
               | tiktok is, but now I'm watching the news on tiktok.
               | 
               | Thanks for pointing out that the news is sometimes a
               | valuable thing to keep on one's radar.
        
           | creato wrote:
           | What are you actually referring to? In my experience, it
           | takes a pretty serious mistake to get charged a fine (it's
           | never happened to me despite mistakes). The IRS just charges
           | (fairly reasonable) interest if a mistake results in
           | underpayment. And IIRC, they pay interest to you when you
           | overpay too.
        
             | sillysaurusx wrote:
             | Much of my experience may have been shaped by my
             | experiences with Chicago. I vividly remember how painful it
             | was to have to call them up every month in order to pay
             | them. It was 2016, and I forget exactly what the reason
             | was. But autopay was somehow sufficiently painful to set up
             | that the path of least resistance was to set a reminder in
             | my phone of "Pay taxes to city" and deal with sitting on
             | hold.
             | 
             | If it sounds unbelievable, I don't blame you at all. I
             | wouldn't have believed it myself until seeing just how
             | Kafkaesque "dealing with the government" can be. Especially
             | when penalties are involved.
             | 
             | For the rest of my family, it's a little awkward to find
             | out. It's mostly on my wife's side; my father was always
             | very fastidious about taxes, as most families of most HN
             | readers probably are. I only wanted to point out that
             | there's a large number of people where this isn't true.
             | 
             | I'll try to dig up direct answers for you. Thankfully most
             | of this pain has been not-mine for many years now.
        
         | judge2020 wrote:
         | Isn't the free file system simply asking e-file companies to
         | offer a free program to qualifying customers? I thought that
         | the IRS didn't actually run their own filling system/website
         | for citizens.
        
           | WrtCdEvrydy wrote:
           | Yes, here's the list ->
           | https://apps.irs.gov/app/freeFile/browse-all-offers/
           | 
           | However, those options aren't advertised and these companies
           | like to do "Free" but then upgrade you as you fill out
           | options.
        
         | ericmcer wrote:
         | I was not allowed to use the free file because I made >70k if I
         | recall correctly. It seems really stupid and arbitrary to not
         | allow people above a certain income to access software that
         | helps them fill out govt. forms. Only lower income people
         | deserve help filling out their taxes??! Bizarre.
        
           | manholio wrote:
           | > Bizarre
           | 
           | Follow the lobby money.
        
           | smordistan wrote:
           | The middle class actually has something to lose by not filing
           | correctly.
        
             | thebean11 wrote:
             | What's your point though? Does the free file system not
             | work correctly or something?
        
               | smordistan wrote:
        
       | AdmiralAsshat wrote:
       | Not just TurboTax, H&R Block does this shit as well.
       | 
       | "File your taxes free! Oh, you have to file an HSA contribution?
       | Sorry, you'll have to buy H&R Block DELUXE ($79.99) to do that!"
       | 
       | Kinda feels like blackmail, really. If I _don 't_ file my HSA
       | contribution I'm technically committing fraud, right?
        
         | zaphod12 wrote:
         | Not sure why you're including the word 'technically,' in there
         | - you are clearly and definitely committing tax fraud if you
         | knowingly fail to include all of your financial information.
        
           | bombcar wrote:
           | You could do it the hard way by doing the taxes in the app,
           | printing it out, and then modifying the forms as necessary.
           | 
           | But the companies know exactly how much to charge you so you
           | avoid the hassle; though I won't shell out for state e-filing
           | when I can print and mail.
        
         | mywittyname wrote:
         | > If I don't file my HSA contribution I'm technically
         | committing fraud, right?
         | 
         | The IRS will send you a corrected tax return, you sign it and
         | mail them a check and you'll hear nothing from them again.
         | Maybe you didn't get the form, or didn't understand the
         | software, etc, etc. There are lots of honest ways to screw up
         | your taxes. The IRS isn't going to assume fraud unless you
         | refuse to pay them when they point it out.
         | 
         | I've screwed up my taxes a lot of times. Not maliciously, but
         | not having all of my forms, I've had clients report paying me a
         | different amount than they told the IRS, forgot stock trades I
         | made, etc. Every time, they've sent a letter asking to pay a
         | balance, plus maybe a small fee, and all is good.
        
           | pkulak wrote:
           | I wonder if this is a backdoor into having the IRS mail you
           | your completed form to sign and send back, like many other
           | countries do. Just file a 1040-EZ every year with only your
           | personal details and everything else zeroed out, and then
           | look over what comes back in 6 months. :D
        
       | notch656a wrote:
       | The fact that our government doesn't have the collective
       | intelligence to just mail the tax bill using the information it
       | already knows, with the option for the recipient to submit
       | corrections/deductions, is a testament to the utter failure of
       | governance in the US. Fortunately having an ineffective
       | government can often be a feature instead of a bug.
        
         | bombcar wrote:
         | The IRS wants to do it, they already have all the software
         | internally to do it, they're legally barred from doing it.
         | 
         | It's nuts. Intuit isn't worth that much.
        
           | sidewndr46 wrote:
           | My understanding is that most Western European get what
           | amounts to a "final bill" for the previous year sometime
           | early on each year. It shows what you owe. If you don't want
           | to contest it, you just pay it and you're done.
           | 
           | The fact that our government has made such a process for
           | fulfilling a legal obligation speaks volumes about the mafia-
           | like nature of our federal government.
           | 
           | I pay lots of property tax where I live. But its just a bill.
           | I can and sometimes do dispute the amount owed. But imagine
           | if each year instead of that process I had to hire an
           | independent team to determine what I owe, make a case for
           | that, then submit that to my local tax authority. That's
           | basically what the IRS does with individuals.
        
         | itslennysfault wrote:
         | Blame Intuit for that one too. They're the ones that have spent
         | millions to lobby to keep it this way.
        
           | dudul wrote:
           | Or blame the people who take the money and bend over in front
           | of lobbies.
        
             | parineum wrote:
             | You're dangerously closing to blaming voters for electing
             | these people. I don't want it to be my fault...
        
         | tomrod wrote:
         | > Fortunately having an ineffective government can often be a
         | feature instead of a bug.
         | 
         | Not in a free society. An ineffective government is a
         | conspicuous drain.
        
         | bushbaba wrote:
         | Idk. I think the IRS gets the better end of the stick here.
         | They have you tell them how much you owe. If you report more
         | than they knew about great they made money. If you tell them
         | less than they knew about, then they'll audit you assuming the
         | difference is large enough (and there being a high likelihood
         | of winning)
        
           | cmelbye wrote:
           | If you are audited by the IRS and they find that you
           | overpaid, they will issue a refund. It's not a one-way
           | street.
        
             | skeeter2020 wrote:
             | you can also claim refunds for years back; like an audit
             | this is a 2-way street as well.
        
               | alasdair_ wrote:
               | It isn't equal however. If you underpay, the IRS has
               | seven years to get the money. If you overpay, you have
               | three. (Simplified of course)
        
             | ryanianian wrote:
             | Does the IRS start an audit if they suspect you massively
             | overpaid? They certainly do if you massively underpay.
        
               | _jal wrote:
               | Not an audit, but they corrected a mistake I made in my
               | favor once. It was a trivial amount, like $30 or
               | something, but they sent me a little packet explaining
               | what they did, why, and a check.
        
             | antsar wrote:
             | Sure. But why in the world would they audit you if you
             | overpaid?
        
               | function_seven wrote:
               | Whatever indicators they use to select audit recipients
               | may _correlate_ with under-payers, but it 's not a
               | guarantee. I'm sure there's some fraction of those they
               | audit that turn out to have paid too much.
        
               | smitop wrote:
               | They have some data on this (https://www.irs.gov/pub/irs-
               | pdf/p55b.pdf, pages 33-35). Out of 509,917 examinations,
               | 18,988 resulted in a refund. There was $7.0 billion of
               | tax refunded in 2020. For comparison, there was $17.2
               | billion of additional tax generated with additional
               | recommended and unagreed amounts.
        
           | skeeter2020 wrote:
           | this is not how taxes work with the IRS. If you make a
           | calculation error in their favour they will correct it and
           | issue you a refund. If you make a compilation error in their
           | favour and get reviewed or audited, you will get a refund.
           | They also audit based more on discrepencies vs. "likelihood
           | of a big payout".
           | 
           | If they precalculated your taxes and sent you a bill (or
           | refund) it would (a) be easier, (b) be more accurate and (c)
           | encourage simplification of the entire system. I consider
           | that both more effective and more fair.
        
             | jtc331 wrote:
             | You're missing the point. The point is that the IRS isn't
             | aware of a good amount of income (trivial example is tips)
             | unless you tell them about it.
        
               | ModernMech wrote:
               | Also income from illegal activity is taxed like any
               | other. If you get caught for doing illegal things and not
               | reporting it on your tax bill, you're in trouble for that
               | too. Harder to prove you're stiffing the IRS when you pay
               | the bill they send you.
        
       | aidangrimshaw wrote:
       | I'm working with other contributors on https://ustaxes.org, an
       | open source tax filing webapp https://github.com/ustaxes/UsTaxes.
       | 
       | Currently, many Federal tax forms are supported, as well as tax
       | filing for the state of Illinois. Filing for Oregon and
       | California is under development!
        
         | freedomben wrote:
         | That's really neat and I'm glad you're doing it. That said I
         | worked on tax software once and the amount of changes each year
         | are huge and often require expert analysis. Sometimes they get
         | dropped on you with very little notice.
         | 
         | How does the project plan to keep up with that? Will it require
         | volunteers?
        
           | aidangrimshaw wrote:
           | Absolutely, yeah the project has a loose group of contributor
           | volunteers but longer term we would probably have to have a
           | larger, more formal structure.
           | 
           | Right now, we're focusing on tooling to make onboarding new
           | tax forms simpler and require a lower threshold of project
           | understanding to allow a larger, less technical group of
           | people to contribute
        
         | throwawayboise wrote:
         | Very cool. Will give it a look, I am about to start my taxes.
         | 
         | Last year I used http://opentaxsolver.sourceforge.net/
         | 
         | It did the job, mostly, but had some quirks and didn't quite
         | get everything right with the rounding when I set it to use
         | whole dollar amounts, so I had to correct a few totals that
         | ended up being $1 off, which was annoying. Probably won't use
         | that one again.
        
         | heavyset_go wrote:
         | Is there a CLA? If so, does anything prevent the rights
         | holder(s) from closing the project and pivoting it towards a
         | for-profit business?
         | 
         | I'd like to contribute, but don't feel like building someone's
         | business for free.
        
           | aidangrimshaw wrote:
           | The project has an AGPL license if that's what you're
           | wondering. We figured many people would feel the same way
        
             | candiddevmike wrote:
             | This is an interesting situation for FOSS licenses. AGPL
             | doesn't necessarily prohibit commercial behavior. I think
             | if all the maintainers truly wanted to prevent anyone from
             | commercializing it, you'd go with a source available
             | license like BSL or creative commons.
             | 
             | It's interesting because having a group of disparate humans
             | come together and say "yea, we hate the current thing,
             | let's build something better and not commercialize it"
             | doesn't typically happen. Kudos to you folks!
        
         | xbar wrote:
         | Your work is needed.
        
         | myroon5 wrote:
         | How are states prioritized? Population and complexity? Or
         | personal priorities of contributors?
        
           | aidangrimshaw wrote:
           | Currently, it's states that contributors live in because our
           | resources are limited
        
             | throwawayboise wrote:
             | Fortunately, state tax returns (in my experience) are
             | pretty straightforward to do by hand once the Federal
             | return is done. I'm sure some states are more complicated
             | than others, that might be the prioritization to use if
             | more resources become available.
        
             | sitkack wrote:
             | Seems like one could setup an org/corp and get funding from
             | those states to implement tax filing code.
        
               | aidangrimshaw wrote:
               | Yeah, we have been considering setting up a nonprofit
               | org. I'm not sure if we have the scale to justify it yet,
               | but it's sort of an open question.
        
               | EnderWT wrote:
               | Many states already have ways to file online for free.
               | For example, Illinois: https://www2.illinois.gov/rev/prog
               | rams/mytax/Pages/il-1040.a...
        
               | aidangrimshaw wrote:
               | Definitely true. The goal is to unify the filing so that
               | the user doesn't have to refill in their information for
               | separate state and federal tax application websites.
        
         | paxys wrote:
         | This is fantastic. I'm curious if you have any tax lawyers or
         | accountants involved with this effort. Doing some amount of pro
         | bono work is standard in the legal profession, and I can't
         | think of too many services that would be more impactful to the
         | average American than this one.
        
         | dataflow wrote:
         | This sounds awesome. How does the user handle the actual
         | filing? I assume you don't have any way to provide e-filing, so
         | would people have to print this out and mail it?
        
           | aidangrimshaw wrote:
           | Yeah, currently the user would print out the PDF generated by
           | the site and mail it in to the IRS. E-filing is on the
           | roadmap, but registering as an E-file provider is a pretty
           | complex process. One of the options we were thinking about is
           | scraping and automatically filling in fields on the free
           | fillable forms site https://www.irs.gov/e-file-
           | providers/free-file-fillable-form...
        
             | dataflow wrote:
             | Cool! Autofilling those forms sounds like an _awesome_
             | thing if you can manage it! Best of luck! And thanks for
             | doing this!
        
             | freedomben wrote:
             | I worked on designing and implementing e-file a few years
             | back for a startup. Happy to answer any questions or give
             | any advice if y'all want it
        
       | tormock wrote:
       | Doesn't H&R block do that too?
       | 
       | And they try to trick you at every step to "upgrade" to the paid
       | version...
        
         | ModernMech wrote:
         | Intuit was begging to be sued though. Literally the only word
         | in the ads is "free", and they say it like 100 times to
         | emphasize just how free it is. And _of course_ it 's not free
         | at all. It can't get any easier than this.
        
       | josephd79 wrote:
       | Government: You must provide a free way for those that qualify.
       | 
       | Intuit: OK.
       | 
       | Intuits exec to its employees: Make this free system, but hide it
       | from the public. Provide links that are broken, make sure it
       | doesn't show up on search indexes.
       | 
       | Scott Cook and all those involved should have all of their assets
       | seized. About as slimy as you can get as a person. Made billions
       | off of scamming United States citizens.
        
       | sofixa wrote:
       | As i mentioned on another thread[1], that's one of those American
       | things that really don't make any sense after spending more than
       | a few seconds about it. There is no legitimate excuse for things
       | to be this bad. The best I've heard is that paying taxes being
       | hard is good because it reminds you how much money you give the
       | government, so you are more attentive how it's spent, but it
       | doesn't really make sense either.
       | 
       | https://news.ycombinator.com/item?id=30842175
        
         | Ajedi32 wrote:
         | > paying taxes being hard is good because it reminds you how
         | much money you give the government
         | 
         | Wouldn't it be the opposite? Having a complicated tax system
         | makes it _harder_ to find out how much you 're paying. If
         | things were simpler it would be much more apparent.
        
           | sitharus wrote:
           | As a non-American who's not self-employed or a business owner
           | I get a monthly payslip with my gross pay and the tax
           | deduction. I see that every month, I know exactly how much I
           | pay the government. All my investments also have tax deducted
           | by the provider as well, when applicable.
           | 
           | I never have to think about calculating or filing tax, but I
           | always see it and know exactly how much it is.
        
             | caymanjim wrote:
             | This is also the case for most Americans, but we're still
             | expected to file every year. For most people, it's
             | verifying what the government already knows. Filing a
             | 1040-EZ with no itemization should be unnecessary.
        
           | arebop wrote:
           | The exact amount doesn't matter for this, all that matters is
           | that you vote against taxes. It is sufficient that you
           | suspect you may owe some amount and realize that you are
           | required to figure it out. If it's hard to figure out, that
           | serves the purpose of those who want you to associate
           | negative emotions with taxes so that you'll vote against
           | taxes.
        
             | Ajedi32 wrote:
             | That sounds like an incentive to vote against _complexity_
             | , not against taxes. Paying a larger _amount_ doesn 't make
             | the calculation any harder to figure out, nor does paying a
             | lesser amount make it easier.
        
           | nickff wrote:
           | As a counter-example, sales taxes (and VATs) are very simple,
           | yet almost nobody knows how much they're paying.
        
             | wongarsu wrote:
             | In Europe VAT is a line item on every invoice. And
             | apparently in the US you have to do some mental gymnastics
             | to manually add sales tax to the listed price to figure out
             | how much to pay in the first place.
             | 
             | Of course most people have no idea how much VAT they pay
             | for Amazon purchases in a year, but that's mostly a product
             | of them not knowing how much they spend on Amazon in a
             | year. If they know the latter, the former is trivial to
             | figure out.
        
               | drdec wrote:
               | FYI, in the US, depending on the jurisdiction, some items
               | are exempt from sales tax. E.g. necessities like food and
               | clothing. In my jurisdiction, clothing is taxed by the
               | county but not by the state.
               | 
               | Which is a long way of saying that even if you knew the
               | total you spent at Amazon, you wouldn't be able to derive
               | the total amount of sales tax paid.
        
               | Ajedi32 wrote:
               | > apparently in the US you have to do some mental
               | gymnastics to manually add sales tax to the listed price
               | to figure out how much to pay in the first place
               | 
               | FWIW, usually in the US it's just a line item on the
               | receipt or checkout screen.
        
               | JohnTHaller wrote:
               | In the US, it's still a line item on your receipt. Most
               | places don't include sales tax on the shelf tag or price
               | sticker due to complexity. You can have state,
               | county/area, and/or city taxes that apply. In NYC, for
               | instance, we have a 4% NY State sales tax, a 4.5% NYC
               | sales tax, and a 0.375% NYC metro area sales tax,
               | totaling 8.875%. Clothes aren't taxed in the metro area
               | sales tax so are 8.5% unless they're under $110 and then
               | they're exempt. Most food is exempt except prepared food.
               | Then there's the issue of fractions of a cent as the
               | sales tax is calculated on the total bill not each item
               | individually. There's also the fact that taxes change now
               | and then... they adjust what food it applies to or what
               | the cutoff is for clothes, etc. Some organizations have a
               | sales tax exemption certificate (if they are a business
               | planning to resell for instance) and that must also be
               | taken into account.
               | 
               | Due to complexity, all larger stores with multiple
               | geographic locations would never have separate pricing
               | signage for every single store, so they don't. Other
               | stores do the same. It's all calculated at the register
               | as things are scanned in the computer.
        
             | [deleted]
        
         | rurp wrote:
         | I've heard a slightly different version of that rational, which
         | I think is more more plausible but cynical. Tax collection is
         | deliberately painful to justify cutting IRS funding and passing
         | tax cuts (mostly for the very wealthy). It doesn't really make
         | a lot of sense rationally, but might be effective as a
         | manipulation tactic.
        
         | techsupporter wrote:
         | > The best I've heard is that paying taxes being hard is good
         | because it reminds you how much money you give the government,
         | so you are more attentive how it's spent
         | 
         | The argument I've heard is that so righteous indignation over
         | the "staggeringly high" taxes "stolen from the hardworking
         | American people" or whatever. This is one of the same arguments
         | as to why sales taxes shouldn't be included in the shelf price
         | of an item or service.
         | 
         | Except it doesn't work. People can be mad about taxes
         | regardless of whether they're easy or hard to file. ( _Paying_
         | taxes is straightforward; the vast majority of us have it done
         | for us from our paychecks every interval.) And where I live,
         | public votes to raise the sales tax for various projects, often
         | public transit, rarely if ever fail.
         | 
         | It seems to me just to be an excuse to not actually deal with
         | our busted as hell tax collection system because that system
         | benefits people who themselves have an excuse to rile people up
         | about taxes.
        
           | nickff wrote:
           | I think there is room for a reasonable agreement which could
           | result in a simplified filing system, without making it
           | opaque. My modest proposal would be that each voter's
           | registration card (or equivalent voting voucher) be attached
           | to a statement showing all the taxes they've paid since the
           | last election, and where they went, along with some
           | information on how many taxpayers there are, and the amount
           | and percentage of income and payroll taxes paid by income
           | decile.
           | 
           | I think this would provide the transparency that
           | conservatives want, along with the simplicity that liberals
           | want. My only concern is that the data would be fudged, like
           | the social security "statements" are.
        
           | paulmd wrote:
           | > The argument I've heard is that ...
           | 
           | > Except it doesn't work. People can be mad about taxes
           | regardless of whether they're easy or hard to file.
           | 
           | "that can't possibly be a fair representation of that
           | ideologue's position, there's huge gaps in the logic!"
           | 
           | look, positions way out on the fringes don't have to make
           | coherent sense to the rest of us. PETA runs kill-shelters
           | that euthanize millions of animals every year, sometimes
           | multiples of other kill shelters. It makes sense to them,
           | they have their own logic why that's good.
           | 
           | Making Americans hate every aspect of taxes - the amount,
           | having to spend a couple quality hours with a tax program
           | every year, getting sales tax rolled on top of advertised
           | prices, everything - is the goal here. Just make taxes suck
           | so that people hate them. Because then people will oppose
           | taxation.
        
         | rootusrootus wrote:
         | Thank Grover Norquist for that. Arguably he has had far more
         | effect on this than the pittance Intuit has spent buying
         | politicians.
        
       | decebalus1 wrote:
       | I hate TurboTax with a passion. At this point, the only benefit I
       | see from it is the fact that because my taxes are boring, I just
       | update the information from the last return. Which is something
       | the IRS could do EASILY. Because of all the 'tax freedom' which
       | has been lobbied in America, I now have to pay a private
       | corporation, navigate countless dark patterns to make sure I
       | don't accidentally sign up for Super AuDiTProTec(tm) at every
       | step of the way (God forbid I sell stock or do something soo
       | complicated), to do something the federal government is more than
       | competent to do on their own.
       | 
       | Every piece of news in which Intuit gets slapped is good news to
       | me. I just hope legislators start doing their jobs at some point
       | and spare the taxpayer of this bullshit.
        
       | [deleted]
        
       | ChrisArchitect wrote:
       | [dupe]
       | 
       | More discussion over here:
       | https://news.ycombinator.com/item?id=30846884
        
       | Melatonic wrote:
       | Credit Karma had a free tax filing application as of last year
       | but as they were purchased by Intuit who knows what is happening
       | with that....
        
         | tengkahwee wrote:
         | It's now Cash App Tax here https://cash.app/taxes as part of
         | the acquisition agreement.
        
       | oneoff786 wrote:
       | A well deserved twist of the knife to do this right before the
       | tax rush.
        
         | munk-a wrote:
         | And it couldn't have happened to a nicer company. These guys
         | have been begging for some false advertising prosecution for a
         | while.
        
       | JRKrause wrote:
       | I manually filed a revision to a previous tax year in which I had
       | accidentally double-payed state taxes on a schedule K-2
       | disbursement two years back. Without any background in this I was
       | able to follow the IRS and state-gov websites to get everything
       | together and ultimately received my check for the difference
       | (many thousands of dollars). All without paying a dollar.
        
         | kaitai wrote:
         | I manually filed taxes on paper (federal) last year and they
         | still have not been processed. Got a letter that the IRS is
         | sitting on my 5-figure tax payment but haven't gone through the
         | 1040 yet.
         | 
         | There is an institutional (mainly Republican) commitment to
         | strangling the IRS here in the US. Filing taxes should be free
         | and easy.
        
           | cranekam wrote:
           | > Filing taxes should be free and easy.
           | 
           | Or, ideally, not needed at all. In the UK having an average
           | financial situation like a job (one that doesn't pay
           | megabucks, anyway), a pension, a tax-efficient savings
           | account and a student doesn't require any filing at all.
           | Everything happens through payroll. If you do earn a lot or
           | have other things that trigger the need to file it's free and
           | not overly onerous -- certainly within the grasp of a mere
           | mortal.
           | 
           | (And before someone chimes in with "how do you know the
           | government gets the figures right?!": because the tax code,
           | or at least the parts that face most people, is
           | straightforward and most people have a bog-standard default
           | configuration that is easy to verify.)
        
             | Ekaros wrote:
             | Same in Finland.
             | 
             | They get my income, loans for future capital gain
             | deductions, have calculated in the basic deductions and so
             | on.
             | 
             | I wanted some extra deductions this year, so I simply went
             | and inserted those on their own web site with simple boxes
             | to fill. Even before the tax season. No problems...
             | 
             | It is great when the tax agency isn't actually adversarial,
             | but instead ready to help and even work with you if you are
             | having troubles.
        
           | rootusrootus wrote:
           | And of course they won't be paying interest on a delayed
           | refund, but they definitely want interest if you are slow in
           | paying _them_.
        
             | ceejayoz wrote:
             | If you're gonna be mad at the IRS, at least be mad about
             | something real.
             | 
             | https://www.cnbc.com/select/what-to-do-with-late-tax-
             | return-...
             | 
             | > A long-standing law requires the IRS to pay interest to
             | those who received their tax refunds late -- notably 45
             | days after the typical filing date of April 15. Just as
             | taxpayers must pay interest on any outstanding obligations
             | they owe to the IRS, the rule works both ways if the IRS is
             | late on the money they owe back.
             | 
             | They pay 3% interest currently, which is pretty nice.
        
       | aclindsa wrote:
       | I recently started an open-source tax solver, partly because I'm
       | not a huge fan of Intuit: https://github.com/habutax/habutax
       | 
       | It isn't perfect since its a young project, but I've attempted to
       | simplify and modularize the process of creating/maintaining forms
       | to allow for that part to be crowd-sourced as much as possible
       | (and I'd love your help!).
        
       | markc wrote:
       | I was 80% done with my taxes this year when TT suddenly demanded
       | an additional $119 to list deductible expenses on income. That's
       | on top of $140 to file Federal plus 1 state. I've been using TT
       | for 20 years. Never again.
        
         | mynameisash wrote:
         | I'm not confident in my ability to get my taxes right (mostly
         | due to my wife and I having owned small businesses plus my day
         | job's stock awards and ESPP), so I've paid a local CPA to do
         | our taxes for years now. He always did an incredible job, was
         | happy to answer my questions for me (tax-related or not),
         | helped us refi our house at an amazing price, and so on. His
         | fees were something on the order of $400 or maybe even as high
         | as $600 some years. But [a] I knew he always had our back, [b]
         | his services partially or entirely paid for themselves in
         | savings I probably wouldn't have caught, and [c] I was paying
         | an individual who earned his keep as compared to a company like
         | Intuit.
        
           | vuln wrote:
           | Hiring a CPA was one of the best decisions I have made in my
           | entire adult life.
        
             | 8ytecoder wrote:
             | I mean, I agree. Especially in the US. I was forced to hire
             | a CPA because of some complicated international stuff.
             | Until then I filed it myself. I have used TaxAct and Credit
             | Karma taxes (which is now Cash app tax). TaxAct is cheap
             | and fully functional. Credit Karma was also
             | straightforward, easy to use and accurate.
             | 
             | CPA can also be useful beyond just tax filing. My CPA does
             | a half year evaluation to see if I'd owe any additional tax
             | and plan accordingly. They also makes sure I get all the
             | deductions I can.
        
             | UncleMeat wrote:
             | My experience with CPAs has been poor. "I dunno, just put
             | what you think is right" is how the last person I paid told
             | me to handle a mismatch between my wife's actually grant
             | payments and her 1098-T.
        
               | junar wrote:
               | 1098-T forms are notoriously unreliable. Schools will
               | often misclassify or omit scholarships and payments. And
               | you might have additional educational expenses like books
               | that aren't listed in the first place. It doesn't excuse
               | your experience, though; that tax preparer should have
               | made a better effort to understand the figures.
               | 
               | Out of curiosity, was the tax preparer actually a
               | licensed CPA, or just someone with no professional
               | credentials? If they were a CPA, did they prepare
               | individual tax returns regularly or only as a side job?
        
               | UncleMeat wrote:
               | > 1098-T forms are notoriously unreliable. Schools will
               | often misclassify or omit scholarships and payments. And
               | you might have additional educational expenses like books
               | that aren't listed in the first place.
               | 
               | Worse, virtually all of the 1098-T guidance exists for
               | undergrads. The problems with the form are entirely
               | different for graduate students and basically nobody can
               | help.
               | 
               | > Out of curiosity, was the tax preparer actually a
               | licensed CPA, or just someone with no professional
               | credentials? If they were a CPA, did they prepare
               | individual tax returns regularly or only as a side job?
               | 
               | It's been a bunch of years so I don't know for certain,
               | but they weren't just a desk worker at H&R Block. Tax
               | preparation was their primary job.
        
           | pkulak wrote:
           | I could probably do my taxes with a 1040-EZ most years, but I
           | still pay a local CPA $300 to do it for me. I'm just happier
           | without $300 but with taxes done.
        
           | zentiggr wrote:
           | Your situation sounds like one that a CPA would be perfect
           | for - especially with business taxes involved.
           | 
           | Our household has just the basic salaries / expenses / 401k /
           | IRAs. THe year I received some temporary additional benefits,
           | Intuit decided that I had to pay premium in order to enter
           | that single additional 1099.
           | 
           | I left, found a much simpler, straightforward service with
           | which I filed legitimately free, and have never looked back.
           | 
           | Plus, I've read about Intuit's history with the whole market,
           | and I will never willingly give them a damn cent.
        
             | rurp wrote:
             | > I left, found a much simpler, straightforward service
             | with which I filed legitimately free, and have never looked
             | back.
             | 
             | Which service is that? I haven't filed my taxes this year
             | and am willing to spend some time switching to an app
             | that's less scummy than Intuit's offerings.
        
           | throwawayboise wrote:
           | It's not like an honest mistake is the end of the world. I've
           | made tax mistakes. You get a letter from the IRS, with the
           | amount you owe or are due back, and you settle up. There are
           | no draconian penalties or full audits unless they suspect
           | intentional fraud.
        
             | bombcar wrote:
             | The IRS will even send you "you screwed up and paid us too
             | much, you forgot X" letters at times.
             | 
             | What they can't do for you is know about deductions
             | sometimes.
        
             | ceejayoz wrote:
             | I was once on an IRS payment plan, and a) the interest rate
             | was remarkably low and b) the folks I talked to when I
             | needed to adjust it were the nicest customer service reps I
             | think I've ever encountered.
        
             | rurp wrote:
             | Yep, that has been my experience. I got pretty freaked out
             | once when I received a large packet from the IRS in the
             | mail. Turns out I forgot to report a stock sale and just
             | owed them a few hundred bucks. The only penalty was having
             | to pay interest on the amount at a rate that was a little
             | high but not egregious.
        
             | kstrauser wrote:
             | They're usually shockingly pleasant to deal with, too.
             | Having owned a couple of small businesses over the years,
             | our taxes can get complex. There were a couple of times
             | where the IRS had questions about our filed returns, and
             | the clerks we dealt with have always been genuinely nice,
             | helpful to work with, and authorized to exercise decent
             | human judgment.
             | 
             | Them: It says here you spent $X on healthcare expenses.
             | 
             | Me: I've got 4 kids. I always hit my deductible.
             | 
             | Them, literally laughing: Yeah, kids are expensive. OK,
             | moving on...
        
         | tppiotrowski wrote:
         | taxact.com did the same trick. Raised prices for a few
         | consecutive years for no apparent reason.
         | 
         | They have your previous filings so switching to another
         | provider can be a pain since you need to know last year income
         | when submitting your filing. I always make sure to at least
         | download the PDF's.
         | 
         | As a consumer we're always free to vote with our wallet and
         | I've been happy with freetaxusa so far but I'm also waiting for
         | the "rate hike" to come...
        
       | ChrisArchitect wrote:
       | https://news.ycombinator.com/item?id=30840861
        
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