this post was submitted on 13 Mar 2024
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"Direct File provides a free, secure option for taxpayers with simple tax situations in 12 states to file their taxes directly with the IRS," the Treasury Department said. "Direct File is easy to use, with no hidden junk fees, and works as well on a smartphone as it does on a laptop, tablet, or desktop computer. Direct File shows taxpayers the math so they can be sure that their return is accurate, and they are getting the refund they are entitled to."

You can check whether you qualify to use the system at directfile.irs.gov. Based on the eligibility restrictions in the IRS program, the Treasury Department said it "estimates that one-third of all federal income tax returns filed could be prepared using Direct File."

But there are many limits that would prevent taxpayers from using the system.

What you can and can’t file

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[–] [email protected] 140 points 6 months ago (6 children)

Meanwhile, here in Sweden everyone can logon to the tax authority's website get a prefilled out form ans digitally sign it in 2 min total.

This has been the norm for me the last 5 years, before that I used the preprinted tax form in the mail, I signed it and sent it back. Done.

The US needs to make it easy and convenient to pay taxes.

[–] [email protected] 85 points 6 months ago

The problem is that companies like Intuit have resources/lobbyists and really want to maintain their position in the market.

https://www.propublica.org/article/inside-turbotax-20-year-fight-to-stop-americans-from-filing-their-taxes-for-free

Your system sounds wonderful though.

[–] [email protected] 48 points 6 months ago

Eh, in New Zealand it's been one click digital for a very long time too.

I was told they don't have modern tax forms accross the US because of lobbying from companies like Turbo Tax.

[–] [email protected] 27 points 6 months ago (2 children)

In the US, I get to spend a few weeks stressing waiting for various forms to be mailed back, then spend 5 hours answering questions on a tax software, to finally get a result of how much i owe/should pay. Then I do it on one or two competitors to see if the math adds up, and most of the time it doesn't.

If I'm lucky, it's only five hours.

[–] [email protected] 6 points 6 months ago (2 children)

A few years ago, I did my taxes on the bus to work...

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[–] [email protected] 17 points 6 months ago (1 children)

In the UK, the vast majority of people in normal jobs don't need to do anything as it is all dealt with by the employer. Only those with more complicated situations need to do anything, and even then it's normally relatively painless.

[–] [email protected] 6 points 6 months ago

Same here, unless you do something complicated, you don't need to chabge anything

[–] [email protected] 2 points 6 months ago (1 children)

It's easy if you only have income from one job. If you have income from any other activities they will not have the information required. Things like rental property income, selling items on sites like Etsy requires inputting your expenses for those activities. Sites like eBay and Etsy will send you an income statement called a 1099. This includes all of the money for all of your transactions including shipping that you charged the customer. So you have to deduct your expenses from that amount, unless you want to pay taxes on money you didn't actually earn. There are other items that count as deductions as well, including property tax deductions in certain states.

[–] [email protected] 4 points 6 months ago (1 children)

Here in a Spanish province the app had the correct information prefilled with my job changes, the stupid 50 euros I earned from the gamestop craze and all the special savings accounts that were dax deductible. I only had to add the special rent deduction (amount paid and % of that amount that's was mine), and the app calculated the amount that I was to be deducted from that and my age.

It's great, in has an explanation of all the deductions, it lets you edit everything before submitting, and it's free.

[–] [email protected] 2 points 6 months ago

That's basically what free filing is in the US except you have to input your personal information and the information on the tax receipt called a W2 that you receive from your employer. They even call the basic tax form the 1040ez. Then that information automatically populates into your state tax form. Yes, we have to pay federal and state taxes separately.

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[–] [email protected] 72 points 6 months ago (2 children)

These states:

  • Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming
  • Arizona
  • California
  • Massachusetts
  • New York
  • Washington
[–] [email protected] 21 points 6 months ago (1 children)

Strange way to list the items, but thank you.

[–] [email protected] 17 points 6 months ago (1 children)

It’s listed that way on the Direct File website because the top group of states don’t have state income tax (so you don’t need a separate state return), and the others the Direct File tool has some kind of arrangement to redirect you to the state’s platform at the end to file your state return (on the website there’s a separate explanation for how each of them work).

[–] [email protected] 4 points 6 months ago
[–] [email protected] 7 points 6 months ago

These states account for 147 million people, about 43% of the country. Not too bad for a pilot program.

[–] [email protected] 46 points 6 months ago (12 children)

Back in the mid 90s, when I was a very low income earner and filing the 1040EZ, I could call an IRS phone automation and input my SSN and the relevant numbers and be done in minutes. Did that go away with the internet? Seems like they were on the ball technically then.

[–] [email protected] 79 points 6 months ago

It went away because Intuit and other tax preparation companies ~~bribed~~ lobbied the government to keep tax filing difficult

[–] [email protected] 4 points 6 months ago

Inputting your ssn on the phone is pretty wild.

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[–] [email protected] 43 points 6 months ago (2 children)

Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Wyoming, Arizona, California, Massachusetts, New York, And Washington are the states you can use this in, since the site in the OP just gives you a link to the IRS website that lists the states.

[–] [email protected] 6 points 6 months ago (1 children)

Yeah, was bummed my state isn't supported this year. Hopefully next year.

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[–] [email protected] 17 points 6 months ago (2 children)

I don't think I'd be able to use this service even if it existed in my state, my self-employed taxes are apparently too complicated even though I currently only have one contract/employer. They need to simplify the tax code.

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[–] [email protected] 16 points 6 months ago (1 children)

Imagine going to the only grocery store available, there are no prices on any of the items, you shop there because you're starving and have no choice.

You go to the checkout after each time you shop and there is a single cashier that says this:

"Fuck you. In about a couple months we'll demand that you figure out how much you owe us. If you don't figure it out then we'll potentially place criminal charges against you. Thanks for shopping here."

You realize that you have no fucking clue about how much the stuff you bought costs because it changes all the time and nothing is labelled and there's no system for keeping track.

Welcome to the tax system in America.

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[–] [email protected] 14 points 6 months ago (2 children)

This is great, but I still don't understand why we even need to file anything.

[–] [email protected] 10 points 6 months ago

To give rich people and corporations the chance to fudge the numbers and pay no tax of course!

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[–] [email protected] 13 points 6 months ago

Would've liked to know this 2 days ago before I filed my taxes.

Well I'll try it out next year.

[–] [email protected] 7 points 6 months ago (2 children)

Anybody here used this yet? How is it?

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[–] [email protected] 5 points 6 months ago

This is the best summary I could come up with:


The service available in English and Spanish underwent "weeks of successful testing" before the launch, the US Treasury Department said today.

"Direct File is easy to use, with no hidden junk fees, and works as well on a smartphone as it does on a laptop, tablet, or desktop computer.

Direct File shows taxpayers the math so they can be sure that their return is accurate, and they are getting the refund they are entitled to."

"Thousands of taxpayers across all 12 states have already successfully filed returns during the pilot's testing phase," the Treasury Department said.

The government is calling this year's version of Direct File a pilot program.

The pilot is also available in eight states without an income tax: Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming.


The original article contains 643 words, the summary contains 132 words. Saved 79%. I'm a bot and I'm open source!

[–] [email protected] 5 points 6 months ago (2 children)

yknow, it would be cool if there was like, income tax.

And only that. I think that would make me happy.

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[–] [email protected] 4 points 6 months ago (2 children)

Would be better if people would vote for candidates that would work to eliminate income taxes entirely.

[–] [email protected] 5 points 6 months ago

Cute. Unrealistic, but cute.

[–] [email protected] 3 points 6 months ago (2 children)

Or, at least for under 100K/yr.

[–] [email protected] 7 points 6 months ago

Silly MedPiggy, ~~Tax~~ breaks are for Billionaires.

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[–] [email protected] 3 points 6 months ago (1 children)

the US thinks if it fixes a problem that all fifty states have but only fix it in a handful of states that it has solved the problem one hundred percent

meanwhile the citizens go "We have to start somewhere this is a great thing!" and the leaders never get criticized sometimes the opposite people vote them back in

then that is all you hear until the issues reach critical because everything was quarter assed at best

this is how abortion, cannabis, all kinds of insurances, education, food assistance, etcetera already are played in the US

and at that point the citizens and the states are to blame for why things suck so hard

"well they should have voted better over there it is their faults that state sucks!"

which drives us further from solutions

[–] [email protected] 33 points 6 months ago (1 children)

To your first point. This more closely follows current software development methods. Get the core service stood up and out to a set of users, then flesh out the more advanced features. Most of the states in the first round have no state income tax to deal with.

[–] [email protected] 8 points 6 months ago (1 children)

This. Usually we're bitching about the feds just ignoring basic development principles and making shit up as they go along like there wasn't 30 years of hard learned lessons to lean on; this is the first time I can think of where what they're doing actually makes some sense.

[–] [email protected] 6 points 6 months ago* (last edited 6 months ago) (1 children)

After the rough healthcare.gov opening, Obama started a couple of initiatives to work with software devs to bring more modern software practices into goverment, including starting some "software incubator, but for goverment" style groups.

This is likely a direct result from that effort.

[–] [email protected] 3 points 6 months ago

That was one of the prime examples of why the gov is starting small and staging rollout

[–] [email protected] 2 points 6 months ago (1 children)

I was so excited to do this to show interest, and then they brought up the ID. Me.

Never heard of it, so I go and look.

You expect me to fucking sign up for some weird 3rd party bullshit, when I would be happy to do that with an actual fucking government supplied way of letting you know I’m the actual person filing my taxes?

No, man. Fuck that, and fuck your stupid ass way of handling it.

I had such high hopes for it, but with the embarrassment of ID.me I just went back to FreetaxUSA.

[–] [email protected] 12 points 6 months ago (1 children)

They're working to improve login.gov to support the level of user verification needed for this service, but it isn't there yet. Hopefully next year when tax time rolls around again.

[–] [email protected] 2 points 6 months ago (1 children)

Thank you for letting me know.

I probably came off strong, but I am majorly disappointed. This was one step closer to how other countries do their taxes, which is mostly just signing and sending it back. As it should be.

Hopefully we can get something before they shut it down, because I can see a LOT of people seeing that sketchy ID.me and noping out just like I did.

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