Senate Death and Taxes

Last year we filed with TurboTax. We have two W2s for the wife and me as well as two 1099-INTs which is just interest from our bank.

This year TurboTax wants to charge $89 because of the interest forms as it considers our return a Deluxe service instead of a Basic one. H&R Block wants $35 (which is on sale from $55).

Anyone else run into this issue? Any advice on a work around?


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myfreetaxes.com

 

Thanks again, Ghost. That's a great resource for those that have an AGI under $79K. Since I'm filing jointly with my wife, that site isn't an option for me, but it might work for others. TurboTax and H&R Block are great too, but they want me to upgrade because my return requires a Schedule B form this year. That's what happens when you make over $1,500 in interest.

The only free option I'm finding for me is the "Free File Fillable Forms" on IRS.gov. It has no income limits.

 

Oh I thought it was just double that for married income.

 

It still boggles my mind that regular American employees have to file their tax return. Here your income tax is automatically calculated, deducted and paid by your employer. Unless you have some unusual income (dividends, interest income, or you're self employed), there's absolutely no need for a regular employee to do a tax return.

 

Yeah, but then the tax return companies don't get paid. And so they lobby congress to make sure that they continue to exist.

 

My brother’s an accountant. Thank God.

 

Yeah I'm unfamiliar how it works elsewhere but here in America, your employer does take Federal, State, and Local taxes out of each paycheck. I would say that 9 times out of 10, State and Local balance out to zero which is great. Unfortunately, Federal doesn't. A lot of people seem to pay way too much into the government and then get a very large return this time of year. Unfortunately, if the government doesn't take enough, then you owe. It's been quite the balancing act especially the past couple of years switching from filing single to jointly. And then my wife got a new job and since it was a remote position they didn't take locals. It was a huge mess.

Personally, it's not difficult, especially with the guided software, but yes, it gets complicated when other things are involved like student loans, buying a house, having crypto, stocks, bonds, interest, etc. I wish it wasn't so complicated. Maybe someday a future administration will find a way to simply it.

 

You trust your employer to do it right? Maybe I'm just getting cynical in my old age, but that system seems like something where the employer has little incentive to get the numbers right (compared to my incentive to not pay more taxes than I have to), not to mention the potential for deliberate cheating or skimming. If I let someone else do my taxes, I'd still insist on reviewing the numbers in detail.

 

Well the employer and government already calculate and take out of each paycheck.

This is the annual "check" to see (with deductions and credits and other stuff) if you overpaid your taxes or underpaid your taxes.

And most people usually get about $1000 back from the government for doing their taxes.

 

That, and a company would be in a pretty deep **** if it was ever discovered they didn't pay their employees' income tax and national insurance contributions correctly. It's their responsibility, not the employees'.

 

But with the US (and I'm no tax lawyer) many tax credits/deductions/penalties depend on things that the employer wouldn't know.
I'm not sure how big of a part that plays, but it is a part.

 

Speak for yourself. I have owed anywhere from $6 to over $1100 most of my adult life filing single. Although, no dependents and as few deductions as possible on my W4s, so that counts for a lot. I'm also of the opinion that it is better to have that money throughout the year instead of having it taken from me and then given in one large sum later on. Sole exception to this was when I got solar panels a a few years ago and got 26% (now 30%) of the cost back as part of my refund which I then used to partially pay off the loan. State taxes usually net me a couple hundred though, so it's not a total wash.

 

Terrance Howard on his tax bill

“Four hundred years of forced labor and never receiving any compensation for it,” the actor said in the message, according to a transcript. “Now you have the gall to try and prosecute and charge taxes to the descendants of a broken people that you are responsible for causing the breakage.”

The recording cut Howard off in midsentence. But he called the attorney back to continue.

“In truth, the entire United States should, by default, become the property of the descendants of slaves,” he said. “But since you do not have the ability [or] the courage to do it, let’s try this in court. … We’re gonna bring you down.”