Happy Tax Season!

[Belsnickel]

We are less than a week away from the filing deadline this year which means (most) people can start the year-long hiatus where they don't think much about taxes beyond how much is taken from their paycheck. One thing most people fail to realize is that the IRS could calculate your return for you. They have all of the information, and in fact they calculate it all themselves and make adjustments after you do it yourself. Check out your tax transcripts on the IRS website if you're ever curious about this.

So if the IRS has this information, and calculates it all for us already and relies on their calculations over our own, why do we have to file our returns ourselves? The answer is corporate lobbyists. For a long time, now, companies like H&R Block and Intuit (the company being TurboTax) have successfully lobbied for a policy that prevents the IRS from providing free tax filing capabilities for all Americans. Today, the House passed a law that would codify this policy and make it law.

https://www.washingtonpost.com/business/economy/house-backs-bill-barring-irs-from-offering-free-tax-filing-services/2019/04/09/

Quote:Liberals abandoned a last-minute rebellion Tuesday over a bill to change the Internal Revenue Service, with Democratic leaders easily pushing legislation through the House that would bar the IRS from creating free tax preparation software.

The House approved the bipartisan legislation on a voice vote as liberals, who feared the measure would enrich private tax preparers at the expense of millions of taxpayers, gave up their fight, in part because of the value of other elements of the legislation.

The bill includes other changes to the nation’s tax collection agency such as protections from private debt collectors and millions of dollars in program assistance for low-income taxpayers.

On Tuesday, ProPublica reported that the legislation included a provision to codify an existing arrangement preventing the IRS from creating online tax filing software to compete with private services such as TurboTax.

What frustrates me most about this is that the Democrats control the House. They could have passed the bill with the good parts in it and not included this prohibition for the IRS. This is just one example of many where corporate interests trump the interests of the people, and it highlights how this is a problem on both sides of the aisle.

[*bfine32*]

(04-09-2019, 08:54 PM)Belsnickel Wrote: We are less than a week away from the filing deadline this year which means (most) people can start the year-long hiatus where they don't think much about taxes beyond how much is taken from their paycheck. One thing most people fail to realize is that the IRS could calculate your return for you. They have all of the information, and in fact they calculate it all themselves and make adjustments after you do it yourself. Check out your tax transcripts on the IRS website if you're ever curious about this.

So if the IRS has this information, and calculates it all for us already and relies on their calculations over our own, why do we have to file our returns ourselves? The answer is corporate lobbyists. For a long time, now, companies like H&R Block and Intuit (the company being TurboTax) have successfully lobbied for a policy that prevents the IRS from providing free tax filing capabilities for all Americans. Today, the House passed a law that would codify this policy and make it law.

https://www.washingtonpost.com/business/economy/house-backs-bill-barring-irs-from-offering-free-tax-filing-services/2019/04/09/


What frustrates me most about this is that the Democrats control the House. They could have passed the bill with the good parts in it and not included this prohibition for the IRS. This is just one example of many where corporate interests trump the interests of the people, and it highlights how this is a problem on both sides of the aisle.

Well, I still have almost one week before I must file and I have to pay back my interest free loan.

WTS, I think taxation is one of, if not the, biggest racket in American society. Tax me flately and tax my consumption and be done with it. I shouldn't be basing purchases, dependents, distribution of my money, ect... on what kind of crazy tax benefit/hit I will take.

[*michaelsean*]

I always figured there was some sort of lobby. It’s moronic.

[Benton]

404, link not found.

Maybe WaPo didn't pay their taxes?

[*bfine32*]

I will say I took the day off Monday to be proactive and do my taxes. I make decent $ from a two sources and I do standard deduction. Nothing changed in my situation and I paid about $300 less than last year. WTS, just take my 10%, use it wisely, and leave me alone.

[BmorePat87]

My effective rate went up but the total was only a few hundred more. I always overpay so I still got a decent return.

[*bfine32*]

(04-17-2019, 11:23 PM)BmorePat87 Wrote: My effective rate went up but the total was only a few hundred more. I always overpay so I still got a decent return.

Not directed at you, but just a financial lesson for those reading:

If you get a return at the end of the year, you have given the government an interest free loan.

If you owe at the end of the year, the government has given you an interest free loan.

Too many people take pride in their return. 

[Benton]

(04-18-2019, 12:48 AM)bfine32 Wrote: Not directed at you, but just a financial lesson for those reading:

If you get a return at the end of the year, you have given the government an interest free loan.

If you owe at the end of the year, the government has given you an interest free loan.

Too many people take pride in their return. 

Yes and it still sucks.

I'm self-employed. My wife is in a profession that requires employees to make a lot of purchases. Because of the recent tax changes, the self-employed and those who make purchases for items not provided by their employer had our deductions wiped out. Which, personally, I'm not a fan of deductions, so I'm in favor of. But I have an issue when big companies get millions in tax breaks and I can't write off basic expenses, or she get reimbursed as in years past. 

If we're going to have reform, great, let's reform. But not by increasing taxes on the middle class and keeping in breaks for big business.

[*bfine32*]

(04-18-2019, 01:01 AM)Benton Wrote: Yes and it still sucks.

I'm self-employed. My wife is in a profession that requires employees to make a lot of purchases. Because of the recent tax changes, the self-employed and those who make purchases for items not provided by their employer had our deductions wiped out. Which, personally, I'm not a fan of deductions, so I'm in favor of. But I have an issue when big companies get millions in tax breaks and I can't write off basic expenses, or she get reimbursed as in years past. 

If we're going to have reform, great, let's reform. But not by increasing taxes on the middle class and keeping in breaks for big business.

I think the upper class (big business) would be overly joyed to pay the same percentage of their earnings that the middle class does. I'm middle class and I did just fine. 

[Benton]

(04-18-2019, 01:05 AM)bfine32 Wrote: I think the upper class (big business) would be overly joyed to pay the same percentage of their earnings that the middle class does. I'm middle class and I did just fine. 

Welp, corporate taxes are down, which was what I was referring to (that's why I said businesses). I didn't mention the upper class, so... yeah. 

It's more of a 'small business/worker v. big business' as far as tax breaks, not 'upper class v. everyone else.'

[BmorePat87]

(04-18-2019, 12:48 AM)bfine32 Wrote: Not directed at you, but just a financial lesson for those reading:

If you get a return at the end of the year, you have given the government an interest free loan.

If you owe at the end of the year, the government has given you an interest free loan.

Too many people take pride in their return. 

Yep, in my case I need to adjust my withholdings to reflect homeownership. My friend, who does my taxes, pointed out to people online that while they may owe, overall most people he saw were paying less in taxes and to not use the refund as a measurement.. 

[*bfine32*]

(04-18-2019, 01:19 AM)Benton Wrote: Welp, corporate taxes are down, which was what I was referring to (that's why I said businesses). I didn't mention the upper class, so... yeah. 

It's more of a 'small business/worker v. big business' as far as tax breaks, not 'upper class v. everyone else.'

Well you can thank Obama care for that instead of the current admin. 

I must admit, that with this given news that both you and your wife are small business owners, you position as a ficsal liberal perplexes me.

[*bfine32*]

(04-18-2019, 01:24 AM)BmorePat87 Wrote: Yep, in my case I need to adjust my withholdings to reflect homeownership. My friend, who does my taxes, pointed out to people online that while they may owe, overall most people he saw were paying less in taxes and to not use the refund as a measurement.. 

Good deal. Just remember owing is a good thing. Just use your free loan smartly. 

[Benton]

(04-18-2019, 01:27 AM)bfine32 Wrote: Well you can thank Obama care for that instead of the current admin. 

I must admit, that with this given news that both you and your wife are small business owners, you position as a ficsal liberal perplexes me.

Sorry for the misunderstandings.

I own a business, she's a nurse. Her expenses were largely reimbursed by taxpayers to offset escalating healthcare costs by the free market system. 

The other misunderstanding, no idea where you got the idea I'm a fiscal liberal. I lean more fiscal conservative, socially liberal (what 30 years ago they called a republican). Basically, I don't care what you do in your life as long as I don't have to pay for it 

[Belsnickel]

(04-18-2019, 01:33 AM)bfine32 Wrote: Good deal. Just remember owing is a good thing. Just use your free loan smartly. 

Owing as a good thing is subjective. Conservatives say that because they want tax filing to be a burden on people. There are a lot of mainstream conservatives I have heard argue against the idea of withholding altogether.

[Aquapod770]

The new tax cuts worked for a majority of Americans. I do feel bad for people who didn't actually get a cut, especially small business owners. I'd prefer we move to a flat tax system with no deductibles and a standard deduction for everyone, but that probably won't happen in my lifetime.

https://www.nytimes.com/2019/04/14/business/economy/income-tax-cut.html

[*michaelsean*]

(04-18-2019, 08:17 AM)Belsnickel Wrote: Owing as a good thing is subjective. Conservatives say that because they want tax filing to be a burden on people. There are a lot of mainstream conservatives I have heard argue against the idea of withholding altogether.

That's not why people are told that.  It's math.  Now while I'd prefer a refund because it's kind of a forced savings, fiscally it's better to owe if you are a responsible person, and economists generally don't base theory n irresponsible people.

[Belsnickel]

(04-18-2019, 09:26 AM)michaelsean Wrote: That's not why people are told that.  It's math.  Now while I'd prefer a refund because it's kind of a forced savings, fiscally it's better to owe if you are a responsible person, and economists generally don't base theory n irresponsible people.

The most fiscally responsible thing to do is base your withholding on the amount you will actually owe and not have any refund or owe anything. It's good for you, because you don't owe and you aren't giving a loan, and it's good for the government as it ensures a steady revenue stream. Liberals like people to get refunds because it makes it seem like they are getting something back with the filing of their taxes, conservatives like people to pay because it makes it more of a burden which makes taxpaying more of a chore overall. That is legitimately why the messaging is what it is on this from the different ideological sides. I have heard this from multiple partisan actors in both private and public discussions.

[*bfine32*]

(04-09-2019, 09:34 PM)bfine32 Wrote: Well, I still have almost one week before I must file and I have to pay back my interest free loan.

WTS, I think taxation is one of, if not the, biggest racket in American society. Tax me flately and tax my consumption and be done with it. I shouldn't be basing purchases, dependents, distribution of my money, ect... on what kind of crazy tax benefit/hit I will take.

(04-17-2019, 10:02 PM)bfine32 Wrote: I will say I took the day off Monday to be proactive and do my taxes. I make decent $ from a two sources and I do standard deduction. Nothing changed in my situation and I paid about $300 less than last year. WTS, just take my 10%, use it wisely, and leave me alone.

(04-18-2019, 08:17 AM)Belsnickel Wrote: Owing as a good thing is subjective. Conservatives say that because they want tax filing to be a burden on people. There are a lot of mainstream conservatives I have heard argue against the idea of withholding altogether.

Who knew? I'm not a conservative!!

[Benton]

(04-18-2019, 09:34 AM)Belsnickel Wrote: The most fiscally responsible thing to do is base your withholding on the amount you will actually owe and not have any refund or owe anything. It's good for you, because you don't owe and you aren't giving a loan, and it's good for the government as it ensures a steady revenue stream. Liberals like people to get refunds because it makes it seem like they are getting something back with the filing of their taxes, conservatives like people to pay because it makes it more of a burden which makes taxpaying more of a chore overall. That is legitimately why the messaging is what it is on this from the different ideological sides. I have heard this from multiple partisan actors in both private and public discussions.

No real logic, just my opinion: it always seemed like it was better to owe in that I had those dollars during the year to invest in making more dollars. If I get to the end and get money back, the government kept money that was mine that I could've used to make more money. 

But that's just my opinion. I'd rather not pay all the taxes I do.