this post was submitted on 23 Apr 2024
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[–] FuglyDuck@lemmy.world 0 points 6 months ago (1 children)

So… the irs knows how much you’re paying before you ever file.

They could just send you a bill.

[–] corsicanguppy@lemmy.ca 0 points 6 months ago (1 children)

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.

[–] onion@feddit.de 0 points 6 months ago

In Germany the employer has to pay the taxes, the employee doesnt have to do anything. They are paid their income after tax directly

[–] dan@upvote.au 0 points 6 months ago* (last edited 6 months ago) (1 children)

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.

[–] UnderpantsWeevil@lemmy.world -1 points 6 months ago (2 children)

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.

  • W2 from employer
  • 1098 from your mortgage company
  • 1099 from your retirement account firm
  • Prove you have health insurance
  • Prove you have student debts
  • Prove you have a small business and you've tracked your receipts
  • Prove you have children
  • Prove you paid taxes to your state

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.

[–] DrRatso@lemmy.ml 0 points 6 months ago (1 children)

Just reading that gave me a headache. In Latvia, heres how the system works.

If you have no deductible spending (medical, education, donations).:

  • Log into the govt system.
  • Press a button to generate tax form.
  • Press verify and submit.
  • Pay what you owe or wait for the tax return.

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.
[–] Kornblumenratte@feddit.de 0 points 6 months ago* (last edited 6 months ago)
  • 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!

[–] dan@upvote.au 0 points 6 months ago (1 children)

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.

[–] UnderpantsWeevil@lemmy.world -1 points 6 months ago* (last edited 6 months ago)

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.