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.
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.
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.
Its not quite that simple, because you need to know what a “tax transcript” is and also set yourself up with a new kind of ID that I’d never heard of before today.
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.
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.
When the bar is “You get nothing. Zero. Goose-egg.” its fairly easy to clear.
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.
they will definitely tell you, just go online and download your tax transcript – it contains all reported information.
Its not quite that simple, because you need to know what a “tax transcript” is and also set yourself up with a new kind of ID that I’d never heard of before today.
https://www.irs.gov/individuals/get-transcript
Not exactly front-facing on the website, which is itself not exactly easy to navigate.