The IRS Created a Free Tax Filing System. TurboTax is Reeling.
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- Опубліковано 1 тра 2024
- The IRS’s free tax filing pilot was a huge success, despite TurboTax and H&R Block’s efforts to block it. Direct File saved people $5.6 million in tax prep and $90 million in refunds. In just 12 states. Now we need to fully fund the IRS to make it permanent and nationwide.
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The idea that you have to pay someone ... to pay someone ... Kills brain cells every time I think about it.
Um, don't have brain cells. Problem solved.
don’t wait til you hear about how money is made, and banking!
It’s free to do yourself. Have you seriously been paying someone else?
Next they should tackle those pesky "processing" fees.
Do your own taxes.
As an immigrant living in america I'm still shocked every time we have to do it in the first place. the government knows how much we owe, yet we still have to do it. At least avoiding turbotax is a step in the right direction
Born in the US and have never understood why we have to do it ourselves either. Makes no sense. People will argue "what if they are taking more money than they should?" My rebuttle to that is that they take what they want amyway and theres nothing you can do to stop them.
It’s so you can elect different tax strategies to reduce how much you pay in taxes.
If you take a standard deduction it’s a cake walk to self file
Sometimes the government knows, sometimes they don't.
It should basically be a "anything to declare?" kind of system, where most people tick "no" and get their refunds.
People with more complex tax needs (freelancers, for example) can then only declare their freelancing revenue, expenses, etc. and fill out their returns faster.
We do it because of tax industry lobbying. No more complicated than that. The industry lobbies politicians to vote a certain way via campaign contributions, and tax prep is no exception. Hopefully with this program we can finally join the rest of the civilized world in one more thing.
@@C3453R yeah, artificial inefficiencies. Similar with health insurance lobbying when it would be much easier to have some type of universal/single-payer system. Overcomplicating life to create more ways to funnel money to the wealthy without them actually contributing anything.
I've been waiting for IRS to launch this. Frankly I'd rather pay the IRS a few bucks to support the maintenance of the system than give Turbotax over $100/year. Obviously the big tax firms were buying congressional support to block this move by IRS!
its been around like 20 years.
It has been at least 20 years. The software system right now is weak and can’t even handle basic additional income and deductions. They need to get their game up for next year. Yes I did beta test it.
Skip it entirely and send taxpayers a bill. Filing taxes at all should be for strange issues that 95+% do not encounter. The IRS already knows your income, your capital gains and interest, your mortgage, etc. They know how much you owe, filing is a pointless formality.
Assholes like Intuit are the reason this hasn't been implemented already, so if we're finally ignoring their lobbying then just go all the way. Act as if we're a technologically competent country for once.
@@jbutler8585 I strongly agree. The current tax system in the USA is ridiculous.
There is a turbo-tax free version, though, it's just buried under 20 years of neglect.
I use TurboTax's professional services for free and then actually complete my return elsewhere LOL. Fuck em.
Based
They would do worse to you, if given the opportunity. Fuck em
Wtf ? Americans pay to pay their taxes ?
Thaaaaat's capitalism, baby.
Yup the system is rigged
Yup, to some company, because they own our politicians.
Never underestimate how corrupt and sold-out America is
Just wait until you learn we pay to be denied services by insurance providers too.
Let's put H&R Block out of business
I don't know how that parasite business even survive
Why?
No let's get rid of the IRS
@@Watch-0w1 Most people are very, very stupid. That's why.
Yeah, (assuming you are using them as a proxy for the entire private tax service industry) then you’ll have no choice but to let the govt do it for you. Thankfully, the IRS always has taxpayers’ interests at heart.
And if, like me, you think ‘people shouldn’t have to file tax returns’, this is a step in that direct
People need to file taxes in pretty much every country. Although, some are insanely simple compared to America.
@@lysanderxx1664 in some countries, individuals and small businesses do not need to file any tax statements if they accept the government's estimate as-is
Accountants on suicide watch lol
How do you pay for roads then
@@ginguu2490 You still pay taxes, but they send you a bill instead of you having to figure how much you owe the government. Like all other bills.
It is beyond me that something that you HAVE TO DO according to law, is somehow something that you have/had to pay for.
Thanks, I.R.S.!! 👍👏🙏🙏
There are many things you have to do by law that you have to pay for, for example taxes or car insurance.
The thing that's wrong here is that it wasn't money to the government or an insurance provider but to a random third party such as turbo tax for something that should be free in the first place.
@@randomguy9084 I know you can come up with multiple examples where it makes SENSE for services to be things you have to pay. Filing taxes should NOT be one of those, imho.
@@dvdv8197 I know thats what i said in my comment I agree
You mean like insurance?
@@randomguy9084 I somehow missed that second part, I apologize. 🙂
This sounds baffling to me as a german we have a direct/electronic filing system for ages, called ELSTER. You can register for free, do it entirely online and if you require some help due to complexity, tax filing tools for regular pay roll cases and even small business cost around 30 - 50 EUR per year. Amazed that it took the US so long.
It's only available in 11 states to certain eligible people. This country is one giant Ponzi scheme, designed to extract as much money from the lower and middle-class and funnel it into the hands of large corporations. This country is a joke.
Hungary too, countries in europe were one of the firsts to implement it - so weird to me, considering america is one of the biggest tech-using giants
“amazed it took the US so long” is a pretty good summary of modern America. auch hallochen aus Florida!
America is behind you in so many ways. I know of all the things we lack, this is insignificant, but look at how many paid days we're mandated by law to have off per year...0....you must rely on the "kindness" of your employer for paid time off. Same for maternity leave and paternity leave. In many states, your employer can fire you with 0 warning and yes this does mess with people's health insurance and lives all the time. Look how many people file bankruptcy for medical bills here....600k per year.
Send help 😅
I was helped by an older woman who works at HR Block to go through this program because of how little I made. She didn’t even mind me staying to ask specific questions. A wonderful woman and I’m so grateful for her informing me about this pilot program and helping me through it, since this was my first time doing it separate from my parents.
Cool.
That shouldn’t be necessary
Tax prep and filing for individuals is most definitely something that should have been a mandatory class in school. Schools always tell you, "we are preparing you for adult life," yet they never teach anything that actually does. Well, home ec was useful, but that is an elective in most school districts. You'd think taxes, insurance, and government benefits would be part of that class, but no, it's not.
Sadly it was only in 11 states, hoping it comes to my state next year
I live in California, but the pilot program didn't allow those of us on retirement pensions to use it. Hopefully next year...
@@macherie1234lol
I'm so mad I didn't hear about this sooner. My taxes are never that complicated but I use Turbo Tax and spend well over $100 after buying the software and fees.
It was only available in 1/5 states so it may have not been an option anyway, but you can always e-file for free through the IRS free fillable forms especially if you have simple taxes.
I used Direct File this year and it was fantastic.
Does it only handle federal or were you able to file state taxes as well?
@@9804Dracon and there, ladies and gentlemen, is where we see the ACTUAL problem
Why would the IRS control state taxes?
When one is extremely dim, lots of things don't make sense 🤷🏻♂️
Does it work with filing stocks taxes?
Taxes, so that members of congress and the senate can get the healthcare you're paying for as they continue to legistlate on you not getting any.
"The IRS passed with flying colors" is not a phrase I thought I'd EVER hear in my life.
Wow....someone had enough power to make something happened that is a correct action and not a bought action....remarkable!
In solidarity with all Workers!! 👍👏♥️♥️🔥🔥
What lol
America is the epitome of the middle man. Food, insurance, houses, cars, buying concert tickets, etc ...... all of this stuff has to go through some form of middle man. 😂
In an era where the internet was supposed to cut out the middle man. Instead it just expanded them…..
It's about time! My friends in France do this all the time. The government even sends a copy of what they expect income and taxes to be!
A lot of Europe had this for years indeed, baffled that America was not one of the firsts to get it.
Yeah Congress sends us a bill via IRS here, too and we still end up with a $35 Trillion federal debt bill like an overcharged credit card.
This is incredible! Here's hoping tax filing companies don't sabotage this like they have in the past
Hopefully, it will be free for all next year.
The idea that you owe money to the government, but they won't tell you, then jails you even if you pay to much, kills brains cells every time we think about it
I used the free file system this year and it was easier than any time I've used HR Block before
Yeah, I used it! Was super simple and easy to use and gave me the date I would get my return. Worked like a charm. Was waiting to see how badly it hurt turbo tax. I used to pay for my tax return since I never got enough back to cover the fees turbo tax charged me.
You know somethings F'd up when the IRS are the good guys
They're never the good guys
insight: irs aren't the good guys
insight: the irs are improving the status quo
insight: turbotax actively worsens the status quo
conclusion: turbotax is the devil
Fund the IRS so it can go after wealthy tax cheat instead of low hanging fruit that make 20k and didn't need to be audited!
They don't go after the rich if you've noticed....the low bearing fruit can't defend themselves.
Interesting how that works, isn't it?
When you break government services, someone wealthy profits....
Wished I had heard of this sooner. I had to pay fees with Turbo Tax 2023 tax year😔
It was a limited rollout.
There have been free filing options on IRS.gov for a decade and a half using third party, or free fillable forms.
@@AnonymousMusing what does that mean?
@@o.o5834: it was only useable is a handfull of states
@@o.o5834only certain states and certain tax forms could be processed
They need this to be for both state and federal all in one! Sick of being held hostage by big business!
We have to pay to literally so anything in this hell hole. Including paying people to pay people. To get paid back.
Direct File made it so easy and is free - thanks public services
Turbotax is insane.
Im glad I caught wind of the IRS having a way to find free places to file taxes. As a self employed worker it helped me immensely.
I wish I had the opportunity to use it this year. I was able to file my federal taxes for free, but still ended up paying to file state taxes. Hopefully next year!
Even though I was ultimately unable to use it (cough HSA cough) it was a better experience than H&R block this year (which didn't make it clear that their free tier couldn't serve me until the end of the process)
Love this and was disappointed I wasn't in a state part of the pilot program. Need to keep the momentum going and have the IRS automatically run the numbers and just send us a short form to confirm accuracy then issue the refund (or bill) without taxpayers having had to lift a finger. Other countries already do this and it's easily possible!
Good. The only time I've been threatened with an audit was the first time I filed ever thanks to TurboTax being hot garbage.
This needs to go viral.
Yeah I think Bush launched it but obama let turbo tax run it so turbo tax advertised a similar link that was supposed to be free but then you paid in the end
Filed mine free this year!!! So fast and free!!
Other countries have had this for decades. In fact, I think that Denmark may actually do most or all of the work.
I filed my taxes for free this year. It was ridiculously easy to do. Zero reason this should be a service that money is charged for.
This is great news! Thanks so much for reporting on this!
Used Free Tax USA this year. Had to pay $20 to file the state taxes but federal filing was free. Will never give a second thought to H&R Block or Turbo Tax again.
Great news to start the day! Thanks, More Perfect Union!!!
godddd direct file was so easy and stress free it was so nice
First rule of any business (or the IRS) is (or should be) make it easy for customers to give you money.
That’s the plan. I doubt the automatic system will take advantage of allthe loopholes my CPA save me.
It's easy to give the government money if you are already having taxes taken out of a paycheck. Most of the time, average workers are filing to get money *back from* the government. That's why it's harder. (also a bunch of other reasons)
@@shroomyk I would argue there are just as many people who owe taxes each year. But that is symantics. It is also the companies who charge money to do your taxes who want to keep it 'complicated'. There have been plenty of efforts to make it free and easy by various bills over the years. These companies have a vested interest to protect their business income.
Paying for tax software is just a way to skirt the real issue, that our tax codes are so complex that we actually need to buy software to calculate how much we owe. If the IRS software does not include forms for our Fidelity accounts, or our RMD withdrawals, then there is no point to using it. I get that these versions are for people who have no investments, etc., but what I want is a vastly simplified tax code system.
ITS ABOUT TIME.
No one should be profiteering from already paying taxes.
I've never come across people actually simping for the irs, this is wild
the IRS isn't really the villain, it just gets most of the heat.
Congress is who passes the tax laws, the IRS is just the underfunded agency that everyone has to interact with. but in reality the problems with our system are largely from Congress
@@kneesnap1041 underfunded? They do a pretty good job of taking 25 percent of my money every year
Was meant to be this way from the start. Even before the Internet.
I love how they prioritize their income
End the private tax prep industry!
If this is ready for next year, I'm doing it in definitely from now on. I am so sick and tired of paying TurboTax, Tax act, and all these companies have broken systems that charge me out of my own tax return upwards of 200 to $400 just to file my taxes. Filing your taxes should always be free
I have taken the HR Blocks class to see if I could make extra cash doing taxes for people, having always done my own taxes for free. I passed their final test but chose not to pursue that opportunity. Their own system is worse than what I have used for free from cash app/mint/turbotax/anyone. It makes sense to see a professional if you run your own businesses and have too many assets. A good pro can tell you what to do for next year to minimize what you owe, but 99% of people don’t need that.
Sorry, what?! How is this not standard practice in America already? In Australia, we've been able to file our EOFY tax ourselves for as long as I've been old enough to work.
You can do it for free here as well, this channel is manipulative and misleading as they get
Freetaxusa has existed for years. COPE
They do charge for state taxes. I wonder if the IRS tax software integrates a free state tax return? No one in the comments or video has said either way.
I’m glad to see this. I spend way too much on tax preparation.
I wasn't in a trial state, but I did see they had a fillable form available for me. Basically, it was a semi-guided version of the paper tax forms that do most of the math for you, and you can just submit it directly to the IRS at the end. It was absurdly easy. I can only imagine how much simpler the full software pilot was.
Dude the IRS program direct file made it crazy easy
Does it allow for real estate & stock market investments?
Is mind-blowing how messed-up the pay-to-pay culture is.
I used the IRS free file program the last two or three years. (If you earned under some limits, there were a handful of services you could use to file for free.)
I’m glad they’re finally setting up an actual service for this.
The convenience of using credit karma for my taxes was nice because you could snap a picture of your w-2 and it did most of the work for you, for about $60. Fast forward to right before clicking File and there was another $40 charge, making it $100. I grew a pair and just filed for free on the irs site. I’m ashamed I was even going to pay the $60 in the first place.
About time. I need this piolet to come to California next year.
I would like to point out I used the program and I still haven't gotten my tax return. Multiple friends used turbo tax and got it already. I'm not saying use turbo tax. But the fact it's faster is part of the problem. People need that money.
Now they just need to role it out nation wide.
Look for VITA programs in your area where trained volunteers do your taxes for free (federal and state and no filing fees). It helps them and you and you benefit from having someone there to support you in the process. We needed taxpayers to come to our site! Please pass it on and use the programs next year.
They need to get the States on board so that all can be submitted at once.
In the UK your employer sorts out your income taxes for you.
And you only have to file yourself if you are self-employed or earn over 100k (before taxes, but excluding pension contributions)
So glad this is working.
Imagine if the tax system was simple enough we didn't need to do all these steps.
I'm going to help my dad do this next year. My state (MA) already has a free file.
It wasn’t available in my state this year, but the IRS did list good free alternatives, one of which I used. Even my dad, who works for H&R Block every year, recommended I used it. :Bb
Thanks I wasn't aware of this, I'm sure in future years more tax situations will be included in free file
I found that the government was perfectly happy for me to overpay year after year. I did my taxes with online software, like everyone else, and always owed a pile at the end of the tax year. When I first went to an accountant for tax prep, I suddenly started getting a hefty annual refund. ...and this is the same government whose new, "free" filling system I'm supposed to trust?
Federal tax filing isn't the only filing we have to do. States make it arduous and at least my state is slow to acknowledge filing and even slower to pay out refunds.
This should have been done at least 20 Years ago.
I wasn’t aware of that when I was filing.
I wonder why we have to use TurboTax in Canada.
Your income tax returns (T4) is just a series of boxed numbers to fill if you aren't running businesses or doing more complex tax related stuff.
It's only like 4-5 unique numbers to put in as you physically get your red T4 slips which has those information in there...
Tax preparer lobbying group: Excuse me nuh uh!
I thought they had a free system more than a decade ago but pretty much if you need anything beyond a Schedule A and Schedule B you can't use it.
Dang wished I could've used/known this service back in January when I filled. Had to pay H&R Block $35 only because I have an HSA from my job and it did nothing to change the amount I got back at the end of the day
Oh sure, _now_ you tell us.
I'm really not bothered by tax prep companies. No one is _required_ to use them. All tax forms have step-by-step instructions on them if you want to do them yourself. The issue isn't the companies that charge to do taxes; the issue is that we have to do taxes at all in the first place. The government could easily do everything themselves automatically and let us know every year what we owe/are owed.
Yep. I got so sick of TurboTax charging me (and more and more every year) that I switched to TaxAct and then to TaxSlayer. Finally, I was so sick of all of them, I went back to doing it the old fashion paper/snail mail way. It was so much simpler. With those programs, it could take hours, but with the paper filing method, it took maybe an hour. So, for the past few years, that's what I have been doing and I've been a lot happier.
I can’t wait for next years upgrades , I couldn’t use this program this year because I had more then the general paperwork.
I tried to use it and it said I didn’t qualify because my return had certain sources of income. They did not let you use it unless your tax return was super simple
I couldn’t use it this year bc I moved from one state to another, but I’m definitely using this next tax season!
Every year they accept my filing, then circle back years later asking for an extra $2000…
And damn, I wish I would have known about this. I would have saved that $90. I looked EVERYWHERE for the free version, since, like you said, it says on their site you can file for free until you get to the end...
I still don't know Jack about filing taxes, let alone paying taxes.
You forgot to mention how much money Intuit (TurboTax) and H&R Block spend lobbying to keep tax filing the way it is.
This video had me all-on-board until it said, “All we need to do is FULLY FUND the IRS!” Wait. Is this a commercial for IRS funding? I think I’ll need more information from other sources before I am ready to endorse this “service.”
Why not just simplify the tax code and have the IRS calculate taxes for people since most folks don't have complex tax situations in the IRS has all the info they need requiring citizens to file just keeps them on the hook for making keeps them on the hook for making mistakes
This has definite bipartisan appeal.
I need this in maryland so badly
I'm in Illinois and I want this!
Ok, for years the IRS was pushing FreeTaxUSA, but hey I'll use this next year I guess.
Canada has always done this!
Great, once they automate it and allow you to make corrections it will be even better, but I fear we are at least a decade away from it being anything like the UK.
I just got my tax done from hnr this year and this and i was so shocked at how much they charge
Wish I had known about this before I filed, guess I'll have to remember for next year.
turbo tax tends to try and charge me extra money just to download the taxes i already did until i close and re open the app again.