So… the irs knows how much you’re paying before you ever file.
They could just send you a bill.
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So… the irs knows how much you’re paying before you ever file.
They could just send you a bill.
Canada is starting to do that. But it's "we think this is the situation. If that's true, pay and move on. If that's not true, file and pay. And don't lie or we'll mess you up."
I think that's this year. Maybe next.
In Germany the employer has to pay the taxes, the employee doesnt have to do anything. They are paid their income after tax directly
If the USA didn't have such a complicated tax system, with companies like Intuit lobbying to keep it that way so they still make money, this wouldn't be an issue.
A lot of countries automatically fill out your entire income tax return for you, and send it to you to verify it. If it's all good, you just need to accept it. Less than five minutes work.
If the USA didn’t have such a complicated tax system
For 95% of the public, its not complicated. Its just getting all the independent pieces of information from different private agencies.
Once you have all the numbers lined up, its simple arithmetic. Easy for a computer to do.
But knowing who to ask for all the individual chunks of data is an obnoxious chore that only one organization does particularly well. And that organization - the IRS - won't tell you the information they have. They want you to guess and tell them what you have, so they can tell you if you got it right or not.
Just reading that gave me a headache. In Latvia, heres how the system works.
If you have no deductible spending (medical, education, donations).:
If you have deductible info
- As before but also scan your receipts, and add the info on each receipt to the form. Can done easily via an app, which handily (sometimes correctly) can autofill the needed info. You can do this at any point in time, so you can do it whenever you get a deductible receipt.
I'm so envious!
And that organization - the IRS - won’t tell you the information they have. They want you to guess and tell them what you have, so they can tell you if you got it right or not.
This really needs to be fixed.
In Australia, the stuff the government knows about you gets prefilled in the tax return form. Not as good as other countries where the entire thing is completed for you, but better than the USA. The form is significantly shorter than the US one.
but better than the USA
When the bar is "You get nothing. Zero. Goose-egg." its fairly easy to clear.
The form is significantly shorter than the US one.
A big part of the US tax game is giving you a relatively high base rate and then sending you hunting for deductions and credits. One of the upshots of the Trump Tax Cut has been to raise the standard deduction so high that most of those deductions and credits are worthless. So the form is deceptively long. It's almost impossible to use your Schedule A for anything anymore.