IRS set to launch its free tax-filing pilot program for some taxpayers. Here's what to expect
- Some taxpayers will soon qualify for Direct File, a free tax-filing option from the IRS.
- The pilot will begin as an invitation-only service before rolling out to certain taxpayers in 12 states by mid-March.
- In 2023, individual U.S. taxpayers spent an average of $150 to prepare and file returns, according to the IRS.
Eligible states will include Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming.
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Who qualifies for IRS Direct File
Residents of eligible states with a simple, straightforward return can qualify. The pilot will start with limited types of income, credits and deductions, IRS officials said.
While only certain taxpayers can use Direct File, the bilingual software includes built-in live chat support with IRS assistors.
The pilot will only accept Form W-2 wages, Social Security retirement income, unemployment earnings and interest of $1,500 or less. This means the pilot won’t include anyone with gig economy work or business income.
You must claim the standard deduction to use the Direct File pilot and the system only accepts a few credits — the earned income tax credit, child tax credit and credit for other dependents. The software also accepts tax breaks for student loan interest and educator expenses.
Why does it take you "a lot more than 15 minutes" to enter your income?
You mean 10M Americans?
Why does it take a lot more than 15 minutes? I'll let this 30-page document from the IRS explain. https://www.irs.gov/pub/irs-pdf/p501.pdf
And the U.S. population is 339.1 million, so you expect the tax code to revolve around less than 1% of taxpayers.
That was a Socratic question. I know the answer. It's because they need information they don't have to properly assess your taxes.
I don't expect it to "revolve around" anyone. You were the one who brought my personal taxes into question.
What information?
And how is it that many other countries are able to accomplish what I'm talking about?
https://en.wikipedia.org/wiki/Pay-as-you-earn_tax
The information you give them when you complete your taxes. Have you not paid taxes before?
I've no idea, that's a good question for someone who lives in those places.
I like how you've gone from 'we can't possibly do this' to 'other countries do it, but I don't know how, so we can't possibly do this.'
Well when you literally just fabricate things that I've said, it can be very easy to confuse yourself.
Okay, if you weren't saying this wasn't doable, what on Earth was your point?
I just said I don't know how they do it so I can't comment on it. I can only comment on the American tax system as an American taxpayer.
Yes, I know, you suggested that it couldn't be done in the U.S. but your only answer as to why it can't be done in the in the U.S. when it can be done in other countries is "I don't know how it works there," which is a cop-out. Your ignorance of how it works in other countries doesn't mean it can't work in the U.S.
Nope, you're just making shit up again.
You: "A bill for what? How do they know what to bill you for if you don’t tell them where and how you made and spent your money?"
Me: Here is a link to show you how other countries do it.
You: "I just said I don’t know how they do it so I can’t comment on it. I can only comment on the American tax system as an American taxpayer."
If that is not implying that it can't be done in the U.S., what did you mean? You apparently didn't even bother to look at the link to find out how it could be done.
Sorry I missed your link. The US already has that system. It's listed under "Similar systems" in your link. That's why you have "tax refunds", because they typically overestimate what you owe and then give you the difference back in the following year. The only time you have to declare your income is when you are self-employed. It sounds like you are not very familiar with the US tax system.
Have you ever looked at your paycheck? It's usually the default unless you choose to opt out of it.
But that's only for income and not the other information I previously listed.
You're obviously conflating "I don't know how they do it" with "it can't be done".