12mo ago

IRS successfully launches their own free Direct File - some of my fellow 'murcans are eligible

For your simple[r] tax needs: https://directfile.irs.gov

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183 comments

As a non US citizen this is just a Robin Williams in Jumanji moment...
WHAT YEAR IS IT?!?!
Anyways, welcome to the year of the interwebs.
Have you got rid of your cheques and faxes yet? 😉
- interwebs
  It’s called “the information superhighway”, thank you very much. 😄
  
  The Great Series of Tubes
  
  This must be true since I read about it on the line.
- Oh we can file our taxes online, we're just required to pay massive amounts of money to a corporate middleman to do it.
  
  Oh we can ___, we're just required to pay massive amounts of money to a corporate middleman to do it.
  Basically America.
- I still write 2 cheques a year because my water bill can only be paid via physical mail (or in person I guess), I’m pretty sure fax is still common in our medical industry.
  
  somewhat common but dropping.
  
  What is it with water departments being such Luddites?! Having lived in a few different cities in a few different states, they always seem to be the one utility that’s the biggest pain in the ass to work with. Gotta go down to their city office to start service - make sure to bring a voided check if you want to set up an auto draft to pay the bill because they don’t take cards. Online account management? Nah, the closest they have to an online presence is their About page on the city website.
  WHY?!
  
  I'd use Bank of America bill pay or something similar, they will print and mail your check.
  
  I use a check for Rumpke for the same reason, but my checkbook is still useful for when a co-worker brings in their kid's fundraiser and i can quickly write ine out
- my wife is disputing a Healthcare charge. Went to a specialist 13 times, they reimbursed us 9 times but not the other 4, at a cost of about $800.
  we have to communicate with the appeals center by fax, and wait for their snail mail response.
  
  At some point she should just stop jumping through their hoops and file in small claims court.
- I thought I had gotten rid of cheques, but I had to get a book specifically to get my passport.
- I still write checks, mostly to pay contractors and tip my hairdresser. I wrote a tip for a contractor the other day and made it out to cash. He said that was too old-school and he was afraid the bank wouldn't accept it!
- I'm in the USA and we've been able to file our federal taxes for free online for like a decade, I'm not sure what these people are talking about. What's new here is that this is the IRS's official tool.
  Previously we had to use an outside service -- but it was -- and still is -- free for normal people/people with normal taxes (eg I have 3 kids and a mortgage and I use it every year). State taxes are another story -- that's usually about $20. And that probably hasn't changed; state taxes have nothing to do with our IRS.
  
  Except for the last several years it’s becoming harder to file for free. TurboTax’s free service developed some worse and worse dark patterns every year, where it was very easy to click the wrong thing and end up being charged. Iirc the fact that they provided a free service at all was to keep control of the market and prevent the IRS from stepping in with a service like this. ProPublica did some good investigations on this.
- Faxes... No, no we have not gotten rid of them. On the other hand, that means shenanigans are still available!
  
  ~~Not~~ true - faxes are widely in use in Healthcare due to hipaa rules

Damn only like 20 years behind the rest of the world.
- Couldn’t hear you over the sound of my freedom
  …nevermind, that was somebody rolling coal
- I guess canada is 21 years behind now....
- That is what happens when you let corporations run your country

Just a heads up it’s only available for the following states:
Arizona California Florida Massachusetts Nevada New Hampshire New York South Dakota Tennessee Texas Washington state Wyoming
- Yeah, bummer. I'll have to wait I guess.
- Which is funny considering this is only for federal and not state taxes. Do they say why it’s limited to specific states?
  
  Most of the listed states do not have state level income taxes. The only exceptions are Arizona and California. The rest of the states have no state level income tax. Alaska is the only state without a state level income tax that isn't included in this IRS scheme.
  I imagine there is a reason all but two of the chosen states lack a state level income tax.
  
  It's a trial program, to work out the major kinks, issues, and problems before rolling it out further to other states.
  It's also federal-only, meaning you still have to do your state returns. Most of the states in the trial have no state income tax, which makes it an ideal solution for taxpayers in those states.
  Expect it to expand to all 50 states in the coming years, presuming Republicans don't somehow manage to legislate it into oblivion like usual.
- so the most populous states, and somehow, 2 in the bottom 5.
  
  Testing the outliers?
- Surprised Texas is in that list.
- Yeah, what a bummer that free federal tax returns are only offered to a few states.

If you aren't able to use this new system, a good second option is freetaxusa.com. Free for most filings and dirt cheap for more complex stuff. Also, they are easier to use than TurboTax.
- It would probably have better adoption if it didn't have such a scammy-sounding name.
- A better idea is to go to irs.gov and use their free file wizard to see which service is free for you. I used 1040.com this year. Last year I used freetaxusa.com, but this year that would not have been free for me due to my change in income. Which service is free depends on your state, income, and income complexity.
  
  My problem with IRS.gov is they have a history of sending users to sites owned by Intuit. These sites would claim to be free, but would then trick the user into a paid pathway and guide them to an expensive paid checkout. I haven't been back to IRS.gov since experiencing that.
  I learned later that Intuit (who owns Turbotax) had spent millions lobbying to get that to happen. Since the IRS can be lobbied by corporations to trick users like that, I just don't trust IRS.gov to be honest.
  
  Nice, here’s that link.
  
  Check out Tax Hawk, it might be a good option for you this year
- For a couple of years CreditKarma was the best free solution. Then Intuit bought them.
  
  Intuit divested the tax product in that sale, which was bought by Block (FKA Square) and is part of their Cash App brand. So it’s still around and still not Intuit.
- that's who I use! $15 to file state, free federal; I mean that's pretty close to 'free' compared to Turbo/Inuit pushing you close to $100 after all the BS. And freetaxusa keeps my info for subsequent years, etc.
  
  that's who I use! $15 to file state
  I'd suggest using the IRS's Free File Program wizard to find a tax program that'll do your state taxes for free. You'd save a little money that way. Most tax programs will keep your info for multiple years after your first time using them, too.
- I've been using this for years and have been happy with the service. If I have to pay for something at least I'm not giving money to TurboTax.
- Also, check with your state tax site, as sometimes they have free state filing options.
- I used it, but then one year it was telling me I owed money. When I double checked on TurboTax, it was the opposite. I went with Turbo Tax. I’ve been wary of FreeTaxUSA since…
  
  Be careful. If software miscalculates in your favor and the IRS figures it out, you're gonna have a bad time.

I experienced true happiness for a moment. Only one moment.
- Why is it only available in such a limited number of states?
  
  This is the first launch of the program and they're still in a pilot phase. It will presumably roll out to more states (maybe all?) Next year
  
  Likely because of state government and state income tax.

Due to lack of public identity infrastructure, filing taxes online in Britain takes a long time. I mean, at least 10 minutes 😄
- It takes at least that long for me to figure out if I was a Lloyds underwriter on the second Tuesday after the third waxing moon every year.

Why did this take the IRS so long where other nations have been doing this for decades?
- Turbotax, H&R Block, and the other tax companies are massively wealthy companies that actively lobby to push laws to keep them from being simple. There are states that they have managed to bar the same thing from happening in.
  
  To clarify, TurboTax isn’t the company, it is Intuit. They are pretty shitty when it comes to lobbying congress on this.
- The other guy linked the answer, but I'm going to explain it anyway:
  In the US, companies have the freedom to ~~bribe~~ lobby our congress members by giving them money that's totally unrelated to their vote you guys. The reasoning behind that being ok is that the congress official in question is still technically free to vote however they choose despite the money given to them. The reason lobbying works is the threat that the congress person might not get that money next time if they vote against that company's interests.
  Just so you all know, because our congress members make a government salary of about 150k-250k/year, it's surprisingly cheap (from a rich company perspective) to lobby them, with lots of payments being in the low thousands. So for obscenely wealthy companies (like intuit), it's much cheaper to pay just enough guys off to kill a movement than for them to suffer the actual consequences of that movement.
  In this case, intuit's entire business model depends on American taxes seeming like this mysterious and unapproachable thing that Americans have to pay a third party for in order to not get thrown in jail by the IRS. And given that intuit (and companies like H&R block) rake in billions each year, it's comparatively pennies to pay off congress officials to keep it that way.
  -> 'Merica
- Lobbyists - quite disgusting.
- Legalized corruption 😎
- Same reason why our Healthcare system is fucked, it being fucked helps the Insurance Companies make money.
- Most nations don't require you to do anything other than check your payslips unless your situation is complex.
  
  Ehh, in the Netherlands you need to report all bank accounts, home value, income from salary and contracts and a fuckton more.
  It's all done via a web app made by the Tax Authority.
- Hmmmm 🤔

I'm 100% for a simple IRS tax return but what the heck is with this?
To use Direct File, you need an IRS account with ID.me.
To get an ID.me account, you need to:
Take a video of your face
If you can't or don't want to take a video of your face, you can have a video call with an ID.me agent who will confirm that your face matches your identification.
Is that really necessary???
- It's the same as going to a bank and letting the teller look at your face. It's to prevent someone from stealing your identity using a picture of your ID.
  How can they verify the ID is real without physically seeing it? They look up the info but still need to verify that you are the person on the ID.
  
  How have they been verifying mailed in tax forms with no pictures for decades?
  Seems like it unnecessarily disenfranchises the poor and the elderly. You have to have access to equipment that can record you and the tech savvy to be able to use it.
  
  Ok but how come H&R Block doesn't need to do this? I just give them my IRS PIN and the AGI from last year's return. The picture shit feels like a poison pill
  
  They can do that with a drivers license like they have for the last few decades.
  And they're using a face recognition service from a for profit corporation ID.ME. Not ok. I'll continue to use their freefillable forms option, but if they discontinued that I'll just go back to paper mailing. This is not a step forward.
  https://cyberscoop.com/irs-facial-recognition-identity-privacy/
- Stupid fraud prevention ugh!
  Listen folks, if you have a driver license, they already have your face, so settle down.
  
  countries with no national ID cards and no plans for one: Australia, Canada, New Zealand, UK. 1
  And they do taxes just fine without a Harry Potter like gif of every tax payer.
  Privacy reasons aside, TurboTax doesn't require a video clip to file your taxes so this is only raising the technical barrier against the widespread adoption of a simple tax system.
  
  I don't mind this being done through the government site, but it shouldn't be done by a third party business.
- A video of your face, you say?
- You'd think a social insurance number would be enough...
  
  Social Security number WAS NOT made to be an ID. It's not a secure unique number, it's just serial.

Good thing Intuit (TurboTax) is fighting so hard to keep the current format super slick and cheaper as a private service rather than a centralized government process. Right up there with disbanding garbage pickup in favor of individually contracted services because [checks notes] 7 overlapping truck routes will be cheaper than 1
- While... I agree with you on companies like Intuit pulling this is bullshit, depending on the region you're in the trash example used is... not great.
  Speaking in the Kansas City region where City of Kansas City trash pickup is literally two bags allowed, no cans used, often late, the bags tear easily, and with this whole freeze thing they're still behind two weeks out. I live outside in one of those 5 (I'm not kidding, one literally started up last year) overlapping truck routes and it is insanely better. That said, previous town I lived in the town did the trash pickup and they did a good job, got the cans that could be auto lifted and even regularly had large item pickup days for free so even better than where I'm at now.
  
  Anecdotal evidence here, too. My experience is the opposite. Never had an issue with my city picking up the trash, putting the can back reasonably, and not randomly skipping my shit. Moved to a different NEIGHBORHOOD, one not directly serviced by the city, and half the time they don't get it, and when they do the can ends up about 10 feet from where it should be, blocking my driveway.
  To make matters worse, presumably my taxes paid for the previous pickup. Now they pay for the previous pickup, AND I have to pay for shit service!

18F looking for tax filling help
- k if u single but looking to file jointly 👉👈

Somebody think of the poor corporations!

why is it the US is hellbent on making everything a state by state issue but at the same time saying federal law is above state law in such cases like Texas but states with legal cannabis or states with legal abortion are allowed to be above federal
is the US the United States or not
make it make sense
- The things that the federal government is responsible for are laid out in the Constitution, everything the Constitution does not place into the responsibilities of the federal government is left to state or local authorities.
  Tenth Amendment:
  Each state retains its sovereignty, freedom, and independence, and every power, jurisdiction, and right, which is not by this Confederation expressly delegated to the United States, in Congress assembled.
  
  that old thing desperately needs to be rewritten
- It's 50 states in a trench coat
  
  50 countries, but yeah
- make it make sense
  We're a slightly tighter coupled EU with less history of separation. We're states that are united. Not one big ol unified country.
  
  IDK why people are downvoting you, that's essentially how it works. Everything is super interconnected now, but it wasn't always that way and the constitution hasn't been updated to reflect it.
  
  Not one big ol unified country.
  What’d the frats chant when we killed Bin Laden? ;)
- The idea of checks and balances on the exercise of government powers extends to even the state/federal relationship.

Good stuff. Keep in mind that Intuit fought this for a very long time. But since they finally got stomped, the IRS can do it's thing now.

If you lived in a state not listed here, the District of Columbia, or a U.S. territory, Direct File won't support your tax filing needs.
lol I guess not for me!
- We're rolling the pilot out in phases, and it is not available to the public yet. It is expected to be more widely available in mid-March.
  Check back mid-march ig
- I know it's just a trial right now. The IRS still offers free tax prep through the free file program. The tires of income don't matter.
- Tax Hawk is another software that offers free federal filing.

How could they launch this and not support login.gov for the auth...
- No Login dot gov
  No support in most states
  No ACA filers
  No app payments
  Lots of reason to be frustrated. BUT! This is an absolutely delicious blow to the Intuit lobbyists and if it can handle the simplest of the simple, think of the green light they’ll have towards eventual global parity!
  Been so bad (and evil) for so long, I’m in the mood to celebrate more than nitpick. (No Login dot gov I will say is the funniest thing not to be considered MVP - understandable but funny.)
  
  It's in beta. I'll take it
- I mean I still login to the VA with DOD credentials or ID.me. They just recently created a VA account specific login. Login.gov is a great idea that won't get any traction because our government's departments are mostly siloed. They quite often just don't even know something is available.
- https://www.nextgov.com/digital-government/2023/10/irs-wont-add-logingov-without-changes/391033/

Thanks Brandon
Honestly I'll hope reservations and congratulations till after we see how it goes, but the fact it's a limited pilot makes me optimistic.
- the fact it’s a limited pilot makes me optimistic
  :-/
  I've seen far too many good ideas go through a "limited pilot" program, outperform their intended targets, piss off someone in the DC corporate circuit, and get their budgets vaporized by the next Congress.
  
  Yeah small programs are easy to pivot, double edged sword in a political environment

This is great for citizens!
I'm not sure they get bragging rights about a smooth site launch for a tax preparation application when most people don't even have their W2s yet...
We'll see whether this is another healthcare.gov when people actually try to use it, but this is a huge win for people who qualify.
- Today is the last day a company has to file and send w2's so most folks should actually have them by now or very very soon.

can't use it if i got my health insurance through obamacare? -_- fucking bullshit
- I can't use it because I live in the wrong state. Truly some fucking bullshit.
  
  To be specific, this is a pilot program, with the full launch coming later.

I don't think I'll ever be able to use it, since it doesn't list capital gains as a supported type of income
Unless that's also related to it being a pilot
- No matter what is planned right now, if this isn’t a PR disaster but the opposite and all the direct filers are gleeful about it, I think it’ll be good enough publicity for them to broaden it to most any use case.
  CPAs with a million times more insight may need to correct me there though.
- I'm sure it'll support everything the irs accepts eventually
  
  I'd be down with a system that literally just says, "This is what we have on record for you, would you like to file this or dispute it?" Considering they get copies of all your tax documents.

For anyone who has filed with it, how much does this return differ from using a company? Is your total return the same or can a tax professional get you back a significant amount more?
- You get as much back as you would if you knew what to claim.
- If you have a simple return then it should be identical. There's only one way to fill out form 1040 correctly. Its unclear if this will walk you through itemizing or more obscure deductions like other places do.

Congrats, Americans! It's a long time coming but still a huge deal and I'm happy for you all 😁

I can’t wait until this is available in my state!

Can someone with more knowledge than me explain how this might differ from Canada's system
- It differs because more of it goes to the defense budget than any other country by a high order of magnitude.

I seem to recall an income cap so I might not be able to use it but my son will and that's a good thing.

Thank you so much for bringing this to my attention!

If you lived in a state not listed here, the District of Columbia, or a U.S. territory, Direct File won't support your tax filing needs.
Ok so here in DC we don't get a voting representative, senators, or that free software other states get. Got it.
- it's a soft launch of only 13 states. they'll roll it out to everyone next year probably

Sadly it doesn't support reporting income from independent contracting (yet).

I don't understand the praise here. 1040EZ is about as simple as it gets, and it's free to file.
- 1040EZ hasn't been a thing since 2018.
  
  a basic tax return then. don't be pedantic. it's a simple as following some fucking directions. i haven't filed a simple return in almost 20 years so EXCUSE my mistake. The IRS is cancer and shouldn't be praised in any way shape of form.
- Then figure it out because people have been talking about it for a long time.
  
  No they haven't. Taxes are easy to do yourself if you're not a dullard.

183 comments