Update: IRS successfully launches their own free Direct File - now ALL of my fellow 'murcans are eligible for 2025

Eat shit, lobbying to make simple tax returns something you have to pay Turbo Tax, H&R Block, etc for.
- I don't know much about investing, but i wonder if it would it be a good time to short those companies?
  
  If you don't know much about investing then you shouldn't short anything ever. People who know about investing will tell you that even when your logic is 100 percent sound, the market isn't that predictable and in general the market can stay irrational longer than you can stay solvent.
  
  it wouldve been earlier, but now this is priced into the stocks already.
  
  If you get investing returns (like from shorting those companies)… you’re ironically not eligible to use the IRS direct file pilot (or at least for this year).
  Edit: this isn’t to knock direct file… which is good and cool (and should be expanded to have more features)
  
  It is already priced in. Our human speed reactions are far too slow when the news has this obvious of a consequence.
  
  Those companies actually helped develop this, see "free file alliance membership" for details. It includes 17 private companies such as Intuit, H&R Block, TaxSlayer, Tax$simple, etc.
- For what it's worth... You're already eligible to a free tax return if you're under a certain income. Edit: Reference - I think a lot of people are unaware of this.
- Not sure why you deleted your comment... You're right!

Eat shit [insert private company here]
- I hope every CEO gets the worse form of cancer and dies slowly.
  
  Also, the worst hemmeroids ever and a special CEO diet consisting of nothing but exlax and habanero peppers.
  
  😂
  My chaotic soul appreciates the garbage bin trash level of discourse
  
  Even the founder of Costco (only stepped down as CEO a few years ago), a company famous both for how well it treats its customers, and its workforce?
  
  Eh, cancer is no joke. It doesn't discriminate on who it hits. I wouldn't wish that on anyone, even though I would snicker if these CEOs get hit by lightning lol
- Intuit is anything but intuitive
- Honestly, they're probably thrilled. Legislation forced them to provide a free product for this sort of simple, no frills filing, so they won't be losimg any paying customers to this and probably won't have to spend dev and qa time supporting the free tier anymore

Free if you have no other exemptions to file.
1099? Nope Depreciation? Nope Tax credits? Nope
Makes for a great headline though.
Im sure those of us that do have exemptions other than the standard will see our tax prep fees skyrocket
- Some progress is better then no progress, and TurboTax et. al. losing in any way is a victory for the rest of us.
- Why is the USA the only country to have those problems, AND complain about getting free stuff?
  
  Some people in the USA want a solution that immediately fixes every possible problem, and don't quite get the concept of starting small and fixing other stuff over time.
  It's the same with gun control. Some states want to tighten gun laws, and some people are like "that won't solve all the problems! We need nationwide laws!". Sure, but why not accept the win that more and more states are starting to do something, rather than complaining that some problems still exist?
- are you not capable of taking a win? it's a HUGE step towards disassembling predatory cpas and tax software.
  
  it’s a HUGE step towards disassembling predatory cpas and tax software.
  Its a regular sized step, as its targeted primarily at simple filers. But the cutoff is incredibly low. You can't use it if you've got retirement savings through an IRA, if you've got deductions for college expenses, or if you're claiming the child care deduction. I'd wager that's at least half the people who bother to file returns.
  Definitely good news for folks that H&R Block likes to fleece - anyone collecting EITC or Child Tax Credits and not much else. But hardly universal.
- Yeah, very limited, but it's very good for more than half of the population that don't have enough deductions to exceed the standard and don't own property (if you properly count houseless "households" that earn income as not owning property and not just renters like most statistics). It's dumb that they have to file a return anyway just to acres money that never should have been collected. Most just don't know how to properly file their W-4 to not have taxes withheld in the first place. Mostly because they follow the directions and/or are afraid of paying a fine plus interest.
  Anyway, it's a step in the right direction. And if we can unbury all of the staff out of the pile of paper returns, we can devote some to go after the rich and their frivolous, often fraudulent deductions and have them pay the tax they owe.
  
  Most just don’t know how to properly file their W-4 to not have taxes withheld in the first place.
  How do you do this? How do you calculate what to personally withhold and pay? Is it simply calculating through the income tax?
  
  I've had 1099s and tax credits and I've never sent in a paper return. I keep the records in case of an audit but it's not like e-file hasn't existed forever.
- Maybe not. You will have the same number of tax preparers chasing less work. Through the magic of the Free Market™️, shouldn’t that mean pressure to reduce prices? We can only hope.
  
  I already saw it reflected this year. My tax prep went up $150
- Competition does NOT make prices go up, lol.
  
  Well, the point was that it isn't competition in his scenario. I hope the exclusion of 1099 is temporary, because I had a 1099 for like a few dollars because I had a savings account that technically accrued interest, so as it stands that makes me ineligible. So his concern would be that because the tax prep services are competing against 'free' for that tier, that they'll ramp up prices for the rest to compensate for loss of income.
- I read
  1099? Nope depreciation. Nope tax credits? Nope
- I would suggest you get hired by the IRS and start rewriting all their ancient code to build in and allow every deduction rule and that it's applied correctly every time so everyone can use it.
  The tax laws are so large and so complex and the code running all this stuff is so old and now locked in because they didn't keep up with updating their software as they went along. I'm amazed they got this far. Oh, and like you, I can't use it either. But that's why I have an accountant.

why isn't this constitutionally protected.
Can we pass an amendment for this shit? It's actually kind of fucked up.
- Kind of? Are you going to tell us that the US healthcare system is "sorta silly" next?
  
  Sorta silly?! It's fucked beyond belief. Source: me, someone who profits off the healthcare industry as a corpo. Sorry 🤷.
  
  i mean, it is sorta silly. Not full sillyness, full sillyness would be forcing people in immediate life threatening injury to recite the ABC's backwards before operation as protocol.
  
  From a certain point of view? Yes.
- I think that some companies like turbotax are employing lobbyists to make impossible filing for taxes unless you go through a gatekeeper
  
  yep, which is why its weird that we don't have a legally protected avenue of direct filing.
- I have a couple of other constitutional amendments I'd like to advance before this.
  
  idk man i think i disagree honestly.
  Tax is one of the very few constants that we all have to legally deal with, aside from like, auto insurance.

Wait really? What's the catch?
- Doubt there is one. The hard truth is that most Americans' taxes are pretty simple and straightforward. We can stop pretending that copying some boxes from a W2 and a 1099 is difficult.
  I mean, personally I wish we'd stop pretending that the IRS isn't already fully aware of what you owe and could just do the filling for you, like in other countries, but until Grover Norquist fucks off forever we're stuck where we are.
  
  Right. Filing taxes should only be necessary if you have itemized writeoffs or wish to contest the IRS's statement of your tax liability. They already know what you earned their your employer, what's been paid in taxes, what basic credits your qualify for, etc. They know what you owe so long as you didn't have expenses to apply for that they couldn't assume or know about. The only reason they don't already do that or, at least until now, have a free public system for filing, it's because tax companies have lobbied for decades to be able to milk the public for cash to help them file and navigate their tax liability.
  
  I've been in the US for a few years now. All my colleagues told me that doing taxes is hard. So I used to reluctantly pay money to do it through Sprintax. This year, I decided to do it by hand. It took almost the same amount of time as it would've taken to do it through Sprintax, which is around 30 minutes.
  
  In italy the data is pre-filled, you just have to check if there's something missing and you're good to go, but you still have to send the module manually, like going into the website and doing the stuff.
  It should be all automatic, wtf
  
  Grover Norquist fucks off forever
  This is the world I want to live in.
  
  most Americans’ taxes are pretty simple and straightforward
  Once the reporting for income over $600 from shit like eBay sales, Venmo, etc kicks in, the 1099 they issue would make free filing ineligible
  
  step one for me is get out last year's so i have a point of reference. just do the same thing again. numbers are a bit different, but the general 'what-goes-where' is usually the same--unless they split a form into multiple pages, or add an extra page to one.
  once i get the new blank forms printed, it's about 15 minutes for me to fill-out, copy, and stuff inside an envelope. this year's added yet another sheet, i had to use a flat instead of the usual #10. cost more to mail, too, but i will not ever 'e-file'.
  one of the few perks of being poor---easy taxes.
- Unless it's changed from the pilot, it's only useful if you file a 1040EZ or take some really basic deductions. Anything beyond the basics, like any kind of investments, means you need to use a different tool.
  But freetaxusa is still free for all but the most complex cases.
  
  From the article:
  The pilot program targeted people with simple tax returns based on W-2 forms. In her remarks today Yellen said that over the next few years they will expand Direct File to support more situations.
  
  But even that would cover a large percentage of the American workforce, and I imagine over a few years, it will grow to cover all users that don't need personal accountants. Progress is progress.
  Personally, I hope this transitions into a system where they email you a proposed return and you do nothing to accept it (only needing to take action if there's an issue).
  
  I’d say it’s still a win, and I’m hoping they expand upon it.
- I expect that you'll have to pay the money according to the statement
- The catch is that Turbo Tax and H&R Block are gonna lose a ton of revenue
- You have to register an account with the 3rd party service ID.me that uses biometrics like facial recognition. Their privacy policy is horrendous.
  The only reason I haven't used it this year.
- Only catch is Republicans probably launching some type of legal action to try and stop it.
  https://www.nysscpa.org/news/publications/the-trusted-professional/article/13-republican-ags-seek-to-stop-irs-s-fre-direct-file-pilot-program-020224
  No lawsuit launched yet to my knowledge, just sternly worded letters saying please stop helping taxpayers instead of letting predatory companies like Intuit fleece money off of them.
  I would expect them to try something soon though with this announced.
- I was in a pilot state (Arizona), and I looked into it. It's only for federal taxes. You need to file state taxes separately.
  There are already several online tax solutions that offer free federal and charge for state.
  
  Does Arizona not have an online free system? Illinois has a very hand-holding guided set of questions and has for years, it's always been our federal taxes that make my head hurt to fill out via the IRS's FreeFillableForms site.
- It probably doesn't do state taxes.
- You get to pick which oligarch or corporation gets your tax money this year!

Welcome to 2005, America!
- Huh, I went to check - we did it in 2003 (for vat and income tax iirc, ofc they expended it since, nowdays only courtroom stuff doesn't have online admin systems).
  Prior to that you just got the (already filled out) income tax form in the mail - if everything was ok that was usually it. In case you still owed, it included the bill, it they owed you they wired the money to your bank.
  If the tax forms were incomplete for some reason (or just not optimised between the members of the same family) you could fill in what they missed (like literally with a pen) & send it back (for them to verify & return it to youb revised).
  (This system still works so folk who prefer to do it via paper can do that.)
- Hold my beer...American pulling out checkbook

The catch is that it requires ID.me, and there is no way in hell I'm giving some third party a picture of my fucking drivers license.
- I hope more scrutiny is given to ID.me. I'll only be using Direct File if they remove it as a dependency.
- Seems odd. They've been pushing login.gov like everywhere.
  
  It will eventually be supported, and in the interim they have stated that they won't keep biometric data obtained through ID.me once a verification is completed, or you can opt for an online interview where no biometrics are collected in the first place.
  https://www.irs.gov/newsroom/irs-statement-new-features-put-in-place-for-irs-online-account-registration-process-strengthened-to-ensure-privacy-and-security
  Who knows if ID.me will actually delete the data on their end though, or if the online interview is recorded by the provider.
  
  I even had to make a login.gov account to apply to some federal jobs (ironically enough one was with the IRS even!)
  On a related note, it appears based on their job listings that the IRS will not hire anyone who owes them money
- Interesting that third parties like TurboTax aren't required to obtain copies of your photo ID.
  
  I looked it up, and there is an article from the end of last year that says they are about to be required or are already required.
  I can't recall ever putting my license on one of these tax preppers, but I am also older and more privacy concerned in my older age, so I would definitely not do it now.
- …to print my ID in the first place?
  (But yes clearly worse to allow personal data to be stored in an additional system.)
  
  Right, my government also gave me a number at my birth. They know where I live, they know how much I make and where I work. The third party, ID.me, definitely does NOT need any of my information, since the entity that is taxing me, already does.
- Why, do they sell data?
  
  It would not surprise me in the least, but more importantly, if they get breached and they have sloppy mechanisms in place, my license could be fully out there in the wild. May be whatever to some, but I think it’s too risky to trust some company with it that also has contracts with the government itself.
  ID.me offers numerous identity verification products,[9] supplied by third parties. For "high-assurance" identity verification, the company verifies personal data, including drivers' licenses, passports, and social security numbers.[21] Users must also take a video selfie with their phones, using the ID.me photo app.[1] If ID.me fails to verify users through this information, users are directed to talk to a "Trusted Referee" video call.[22] ID.me users have expressed frustration due to long delays on its video call line
- Huh, I already signed up for it because they started requiring it a while back to access historical tax return documents through the IRS website.
- I had to use that for my unemployment insurance claims.

Mine was too complicated to file for free because I have retirement investments? Seems like a silly reason to force someone to use a paid service.
- You’re not supposed to be wrecking our economy like that. Spend, baby, spend.
  
  😂😂
- Sounds like having any 1099 is 'too complicated'. So anyone with any sort of savings account that managed to get $10 of interest over a year... So if you have like a thousand dollars in a boring old savings account you are 'too complicated'.
  
  Yep, kinda surprised me to be honest.
  
  Not really. If you are filling out $10 1099s you’re probably taking a standard deduction so it never matters.
- Yeah. Mine was "too complicated" because I had an HSA. Are you fucking kidding me?
  
  Feels like a ruse
- Same. It sucks having to pay H&R Block $300/year to file my taxes, but their online records save my ass every time I buy a house. I sincerely hope we see a more robust free file system in my lifetime.
  
  $300? Just use Free Tax USA. It's free for federal and $15 for each state. No, you don't need extra stuff, unless you think you'll be audited.
  If you spend a little time figuring out your tax situation, you don't need to pay someone else to do it. Here's a secret: the people they have doing your taxes don't necessarily have a master's degree in tax. Those people are helping corporations or wealthy people with trusts.

Thank fuck. Finally

- No, we have 50 states to get through as well. And then all the municipalities.
  
  God, it's times like this where I wish we merge some states.
- Sorry, but still very far behind on this and many other things.

Biden did that, among many other great things for the average american citizen

Even without access to Direct File since I wasn't in a pilot state, I've been using the IRS' "Free Fillable Forms" for the last few years and they've worked great! They don't hold your hand as much as the paid software but for my returns they've been more than adequate and free!
Does anyone know how "Direct File" differs from the "Free Fillable Forms"? Does it hold your hand a little more and help you find credits/deductions? Free Fillable Forms worked well, but only so long as I knew what I needed to file. New circumstances, like adding a dependent, lead to a lot of research.
- Yes, direct file is guided with a checklist. However there are only certain situations where a taxpayer would qualify for direct file - there’s income limitations and only certain income types qualify (u would not be able to use it if u are self-employed or own rental properties for example). The IRS is planning to expand this but for now it’s limited tho the vast majority of taxpayers would qualify.
  Anyone can use the free fillable forms but u either have to know what you’re doing or be comfortable reading irs form instructions if you have a more complex tax situation.

Good. Now make it work for everyone's tax situation.

You need to enable JavaScript to use Direct File.
On the plus side, UBO only had to block one script (on the login page at least).

Fuck TurboTax, fuck H$R Block

how much longer til they just do it for me and leave me the fuck alone?
- 🤞
  
  He gets it

As a tax accountant, I sincerely hope this gets to a point where a vast majority of the population has no need for my services.
I used to play in the big leagues where none of my clients would ever qualify for this and their returns routinely took upwards of a hundred hours to complete. Those guys need to keep paying.
Now I play down in the minors a couple steps above the Block, and I hate seeing the owner sell these three or four hundred dollar returns that might take me an hour to complete in the first year and maybe thirty minutes in subsequent years.
- That’s a very interesting transition. Was the catalyst neutral or happy one, or perhaps a sad one?
  
  Mutual disdain was the catalyst. I did it for eight years and probably lost fifteen years of life expectancy from it. Ungodly toxic environment. Fuck big firm accounting. Fuck them all in the most demeaning, painful way imaginable.
  I make roughly one third the money today, and I'm much happier for it. I still make a comfortable living where I don't particularly worry about money, so what would the additional two thirds do for me outside paying medical bills it causes?
  No matter how much I try to remove my name from searches, I still get recruited by ambitious young people on a regular basis. I generally make them stop with a response that goes something like this:
  I would rather have my eyes gouged out by the white hot barbed penis of Satan himself while he spits in my mouth than return to public accounting for any amount of money.

Now if we could do like other countries and just have the government send a pre formatted document of things like wages, dependents, and other taxable items so we all know what we owe because the government has all that information already. Add what you need as far as write offs or other income and send it back. Done. None of this collection of tons of different forms, figuring out what percent you can write off, etc. and submitting it all hoping you don’t get it wrong and get audited or owe fines and interest.

But is it compatible with the tax filing dating sim?

They have all the info, so this shouldn’t even be necessary. They should be able to just send me a tax bill/refund with the break down automatically. If I want to dispute it, then I’d have to pay the big bucks to get fancy accountants to dispute. Otherwise it should just be one less thing vast majority of the people would ever have to worry about.
- Well, yeah, but seriously the first reaction to an improvement that never seemed possible before is to discard it as not enough?

All praise Deditutankh, the Egyptian god of taxes!

I guess the donations weren’t big enough this year.

Wow congrats USA for doing something that makes sense before Canada.
- I still wish we got a bill at the end of the year like some European countries. Maybe a deadline to send in special forums in case of some edge cases but they know what's up .
- I keep bringing up how awesome the new SAVE federal student loan repayment program is. Income based repayments that go as low as $0 with the federal government covering any interest that you payment would have gone towards, plus after 10 years of payments balances of $12k and less are forgiven (11 years for $13k, 12 years for $14k, etc.)
  So if you got a low paying degree from a community college, like say an early childhood education degree, you get pretty close to free education since you can make your $0 payments every month and get your entire student debt forgiven after a decade. Or if you have a career that doesn't pay much at first but ratchets up you only make payments when you have the income to make them, and still get forgiven after 10 years, and there's no real penalty to paying the $0 payments earlier since the balance hasn't grown and is still forgiven on the same date. Or like many people who attend community college, if you end up dropping out and getting no degree, you're not penalized like earlier plans would have penalized you.

The ATO's myTax system is pretty great, I hope with this you guys finally get something as nice.
- They don't know what you are talking about my fellow Aussie. Any A in an acronym means "American" to the USAns. That other countries exist that start with A is unfathomable.

Looks like state filing is excluded.
- Why would the IRS make software for the states, it doesn't make sense.

Won't SOMEBODY think of the poor, poor monopolists who so far made their money exploiting the alternativeless victims at their mercy? Why would their prey give them way too much money now, eh? Socialism! Terrorism! All the bad words, what's in right now? Woke? DEI?

I tried to use it and it wouldn’t work for me. Got halfway through the process and asked some question about me that seemed basic, but resulted in me not being able to use it.

Darn I was hoping it'd also be available now since I still haven't filed my taxes this year.

Pass, it's not open source.
- The one benefit of open source of having more eyes on the code to find any bugs would likely be its weakness, given that systems like these aren't updated frequently, any bugs found and made public could open the door to exploiting,