Congress Is About to Ban the Government From Offering Free Online Tax Filing. Thank TurboTax.

[turbinetree]

A bill supported by Democrats and Republicans would make permanent a program that bars the IRS from ever developing its own online tax filing service.

by Justin Elliott April 9, 5 a.m. EDT

ProPublica is a nonprofit newsroom based in New York. Sign up for ProPublica’s Big Story newsletter to receive stories like this one in your inbox as soon as they are published.

Just in time for Tax Day, the for-profit tax preparation industry is about to realize one of its long-sought goals. Congressional Democrats and Republicans are moving to permanently bar the IRS from creating a free electronic tax filing system.

Last week, the House Ways and Means Committee, led by Rep. Richard Neal, D-Mass., passed the Taxpayer First Act, a wide-ranging bill making several administrative changes to the IRS that is sponsored by Reps. John Lewis, D-Ga., and Mike Kelly, R-Pa.

In one of its provisions, the bill makes it illegal for the IRS to create its own online system of tax filing. Companies like Intuit, the maker of TurboTax, and H&R Block have lobbied for years to block the IRS from creating such a system. If the tax agency created its own program, which would be similar to programs other developed countries have, it would threaten the industry’s profits.

“This could be a disaster. It could be the final nail in the coffin of the idea of the IRS ever being able to create its own program,” said Mandi Matlock, a tax attorney who does work for the National Consumer Law Center.

https://www.propublica.org/article/congress-is-about-to-ban-the-government-from-offering-free-online-tax-filing-thank-turbotax

I quit using turbo tax years ago, since the software did not know how to give my wife credit while working in another state, and when it does it self check before you send it off we missed checking a box and had to pay........................fuck turbo tax and any of the other tax software platforms..................................

[Bluepinky]

1. Well this is a downer.

I have used H&R Block this year, but I bet now they will eliminate their free filing option and increase prices on all the rest.

[TheBlackAdder]

6. My daughter and I both used them. Had to go to a CPA (who was cheaper) to straighten out their mess.

.

My impression of them is that they are like those nationally advertised law firms, hiring local lawyers like a franchise, to capitalize on the brand name. My daughter used one when she went to college, and they charged her around $400 and got it wrong. With me, I had a business, domestic employee, was recently divorced, and the three people in the room were debating on what to do, because none of them knew how to do my taxes. Needless to say, they got is severely wrong. You know they got it wrong when you are flagged by the IRS and asked to call and pay thousands. It took a year for my CPA top straighten out the mess caused.

.

[Bluepinky]

19. How horrible! I hope things are better for you now.

[TheBlackAdder]

20. Yep. I resigned to have me and my four kids get all taxes done for $900 a year.

.

The CPA is a pro, and the tax packet provided is bound for each of us. Top quality.

They handle everything, and send us 8879 forms to sign along with the packet review before the e-file, and forms to mail if taxes are due. We sign and convert the 8879 forms to a PDF, secure upload them, which takes all of 1 minute, and poof... taxes filed.

We send them electronic images of all of paperwork, they do everything. They prep the returns, get on a conference call to discuss and if everything is OK, they mail the tax packets, which include out permanent copies to hold.

3 kids are adults, one in high school. One is a full-time employee with securities and investment accounts; One a FT worker, PT college student and musician with securities; One a FT college student and PT worker, and last is in high school and a PT worker.

.

[Bluepinky]

21. Glad you found a solution that works for all of you.

My taxes aren’t as complicated. I filed me and husband’s taxes using H&R Block online tools, cost me about $70. I filed the two kids for free using their online tools. I’m impressed with the ease of the H&R Block online tax tools, it was easy and complete, great for uncomplicated returns. Another year down!

[UniteFightBack]

23. Or you could do it for free at Credit Karma. nt

[Bluepinky]

36. Didn't know about that one, will check into it for next year!

[TheBlackAdder]

40. I would never put my family's financial information in a company with changeable TOS agreements.

.

That would be just as stupid as using one of those $25 DNA kits. Sooner or later, they will sell that info off to a company or clearing house and the whole entire family would be fucked for health and life insurance, employment, loans, etc.

If a company is offering a service for free or a reduced rate, they will make that up ten fold on the back-end.

.

[allgood33]

2. Why do some Democrats think this is good ideal. What am I missing?

[Bettie]

3. Money from the people who

own this, is my guess.

They vote for it, they get cash.

[d_r]

4. see this informative video presentation

[Blues Heron]

5. Insane

Fuck these tax software parasites. tired of shelling out 30-40 bucks for the privilege of paying my taxes.

[Hoyt]

7. You can still file for free -- just like you can now -- if you make less than $66,000.

https://www.irs.gov/e-file-providers/about-the-free-file-program


Apparently the IRS decided some time ago that it would be better to partner with private companies to develop filing apps. Probably a smart move. If there is a screw up, it doesn't fall on the IRS.



Sometimes, I think we go out of our way to find something to complain about.

[vsrazdem]

12. Not true. My grandson made 21,000 but had to pay because he has a 401 that he

contributes to and they charged him $64 just because of that.

[Hoyt]

13. One can always print out the forms and file for free. I don't doubt that happened to your grandson.

But, I'd want to make sure he went through the IRS Website. I think that is the key.

[Kaleva]

38. Apparently, filing by paper is a lost art.

[UniteFightBack]

24. You can always file for free at Credit Karma. nt

[PeeJ52]

8. I quit using TurboTax finding in their fine print it was going to cost me $69 for my "free" filing.

I called them up and told them I thought that was extremely deceptive for me to have to pay $39 for the Deluxe on line package, then another $69 when it was time to file, just because I needed Deluxe because of the educational deductions for my kid. It really pissed me off to see I was losing $100 off my lousy refund. I told them to cancel my subscription and to wipe any trace of my account from their website. I would have nothing to do with Intuit again. They really made it hard for me to cancel too. I had to verify in like 3 emails, send picture identification. They were really snotty.

I went to NewEgg, downloaded the H&R Block Deluxe package for $24.95, filled it out in 30 minutes and filed for completely free. No more Intuit for me. They didn't even care they had lost a lifetime customer.

Eff'em.

[Eyeball_Kid]

34. TaxAct is free, eh? But I had student loan interest to deduct. Whoops! That's 40 bucks, sucker!

Oh. And if you want to do your state taxes, that's another 40, thank you very much.

[Kaleva]

39. Print out hte forms and file by paper

That's the simple and obvious answer.

[Hotler]

9. Assholes.. and shame to the Democratics that voted for it.

This is the kind of shit I was hoping would stop after we elected a wave of blue. Give aways to the corporations and businesses has to stop.

[exboyfil]

10. I print out the forms

Fill them out in pencil. Photocopy the form. Sign it and send it in.

I found it took less time than linking the W2 and the other things you needed to do with the software (the free online filing option).

Now that I don't have the Standard Deduction to worry about, it is even simpler.

I wonder when they will go to no hard filing taxes. If I have to use a private company to do that, then it will truly mean we are totally subjugated to our corporate overlords.

Other than my credit union personal savings, the only financial assets I have are retirement accounts. Also being a wage slave, I don't have the complexity of a private business.

[Sanity Claws]

11. That is my plan for this year since I can't file for free online

[Silver Swan]

14. You can still file free online

But you have to complete the forms without the help of an app. I've been filing this way for many years.

https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free

[Sanity Claws]

15. But only if your income is below a certain point

I exceed it.

[Silver Swan]

16. Not necessarily

The Free File Fillable Forms are for incomes over $66,000. This may be limited if you need a form that is not included, or if you need to attach documentation apart from what is provided for. Income, in itself, is not a limitation.

[Sanity Claws]

17. Okay. I'll look again.

It would be great if true.
Thanks.

[UniteFightBack]

27. Please check out creditkarma.com where you can file all your taxes for FREE. I've been using it

for a few years now.

[Sanity Claws]

28. But is it worth disclosing such personal information

to creditkarma. com just to save filing fees?

[UniteFightBack]

31. It's a site where you can go check your credit report and keep on top of that....for free.

It's a well known site.

[Freethinker65]

29. I have used the free fillable form link for years

You must know which forms you need and add them from a drop down menu. You can save your work and take your time completing the forms before you file. Links to instructions for the forms are provided (for necessary worksheets, etc.) and sometimes I need to refer to certain lines for clarifications. You must manually enter much information, including W2s, which can be tedious and you must have access to last years AGI for verification purposes.

They suggest using this method if you fall into certain categories and want to file for free. I keep a hard copy and digital copy after filing. Never used any other system but brought my mom's paperwork to H&R after dad died and found myself helping the preparer fill in the info on whatever program they used. Honestly, it did not seem all that different.

[UniteFightBack]

25. I've been using Credit Karma for a few years now and you can upload a photo of your W2.

Oh and it's completely free for Federal and State.

[ecstatic]

41. +1000. Personally, I wouldn't trust the IRS to show me all my available options.

Seems like a conflict of interest. On the other hand, if they could guarantee a super user friendly experience with ALL the deduction wizards imaginable, great!

I used CreditKarma last year for the first time (previously used TurboTax, TaxACT, and HRBlock). CK was pretty good, way better than TaxACT or HRBlock. CreditKarma also allows additional forms/Schedules for free.

[KayF]

18. "Taxpayer First Act"

insult to injury.

[UniteFightBack]

22. Credit Karma files everything for free. nt

[Vinca]

26. Don't blame private companies, blame our legislators. It seems both sides are being paid off.

[tymorial]

33. Clearly

[Cartoonist]

30. Chiselers

I used the service for several years. At first it was free. The next year they wanted to charge me for the State filing. This year they tried to charge me for claiming an exemption. FT

[tymorial]

32. Threaten their profits.... please

I have an e filing for over a decade and each year the cost increases. I recall when it cost me 20 bucks to file federal and state. This year it was $130

[dlk]

35. Another Fine Example of Vulture Capitalism

[Kaleva]

37. That's weird. I've been filing for free for years using TurboTax