4 ms·

>Simplify the tax code so anyone can do theirs on an index card. Aim higher. In the UK, your employer informs the government about your wages and HMRC figures

>Simplify the tax code so anyone can do theirs on an index card. Aim higher. In the UK, your employer informs the government about your wages and HMRC figures out how much you paid and whether it's the correct amount. And if you want you can check the numbers. In other countries it's basically the same but you have to log into the e-government portal to click 'yes, the values you have are correct'. Obviously if your finances are more complicated then you need to file; but it's not very difficult.

zw123456 10y ago
Yes, of course. Obviously if the IRS knows your income, knows you mortgage interest, interest on savings and dividends and it is all electronically recorded, there what is the point of filing. Only to keep accountants and tax software companies in business. I can guarantee you that if you file a return and copy the numbers in wrong from your W4 you will get a computer generated letter. I did that by accident once I transposed two digits in the amount on a 1099 and I got a letter from them that was computer generated. So obviously they are having computers check it, so what is the point of me wasting time and money on filing. The UK system (and many other countries) is obviously the way to go.
- sokoloff 10y ago
  Even on mortgages, the IRS doesn't have all the information. I refinanced my mortgage and paid points for the refi. Those points have to be amortized over the life of the loan (which the IRS knows the law, but doesn't know that I paid points on the loan). I just refinanced that mortgage again, meaning next year that I'll write off the rest of the points for the previous loan as a 2017 expense. There's plenty that the IRS doesn't know until you tell them.
  - xienze 10y ago
    That just sounds like a situation where the bank needs to supply information to the IRS for you so come tax time they already know about it.
    - sokoloff 10y ago
      It's an IRS issue, not a bank issue. Box 6 on form 1098 is for purchase/origination points only, not for refinance points. Refinance points (and you'd also need to know the refinance term) are not currently collected by the IRS.
ajeet_dhaliwal 10y ago
Intuit may have gotten to the Canadian government too (or they are just incompetent) because I lived there a few years, and then moved back to the UK and it sort of crazy how simple and easy things are here, especially for people who are only employees. You don't file anything at all if you are an only an employee in the UK.
- kingosticks 10y ago
  Not entirely true, there are lots of reasons why you do need to file in the UK as only an employee. See https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return https://www.gov.uk/self-assessment-tax-returns/who-must-send... Although HMRC's self assessment website does make it pretty simple (compared to the US system, at least).
  - ajeet_dhaliwal 10y ago
    Thanks for the link and correction. Most of these apply to people who have income other than employment, but a couple of them affect employees only (such as those collecting child benefit). I think there's a huge difference how the UK handles this where having to file for an employee is usually an exception rather than a rule whereas every single employee in Canada must do this paperwork.
    - kingosticks 10y ago
      Or if fortunate to earn over £100k! But I do totally agree with you. And it does seem the obvious way of doing things. The recent changes to the personal allowance are another example of trying to keep the common case simple.

zw123456 10y ago

Yes, of course. Obviously if the IRS knows your income, knows you mortgage interest, interest on savings and dividends and it is all electronically recorded, there what is the point of filing. Only to keep accountants and tax software companies in business. I can guarantee you that if you file a return and copy the numbers in wrong from your W4 you will get a computer generated letter. I did that by accident once I transposed two digits in the amount on a 1099 and I got a letter from them that was computer generated. So obviously they are having computers check it, so what is the point of me wasting time and money on filing. The UK system (and many other countries) is obviously the way to go.

sokoloff 10y ago
Even on mortgages, the IRS doesn't have all the information. I refinanced my mortgage and paid points for the refi. Those points have to be amortized over the life of the loan (which the IRS knows the law, but doesn't know that I paid points on the loan). I just refinanced that mortgage again, meaning next year that I'll write off the rest of the points for the previous loan as a 2017 expense. There's plenty that the IRS doesn't know until you tell them.
- xienze 10y ago
  That just sounds like a situation where the bank needs to supply information to the IRS for you so come tax time they already know about it.
  - sokoloff 10y ago
    It's an IRS issue, not a bank issue. Box 6 on form 1098 is for purchase/origination points only, not for refinance points. Refinance points (and you'd also need to know the refinance term) are not currently collected by the IRS.

ajeet_dhaliwal 10y ago

Intuit may have gotten to the Canadian government too (or they are just incompetent) because I lived there a few years, and then moved back to the UK and it sort of crazy how simple and easy things are here, especially for people who are only employees. You don't file anything at all if you are an only an employee in the UK.

kingosticks 10y ago
Not entirely true, there are lots of reasons why you do need to file in the UK as only an employee. See https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return https://www.gov.uk/self-assessment-tax-returns/who-must-send... Although HMRC's self assessment website does make it pretty simple (compared to the US system, at least).
- ajeet_dhaliwal 10y ago
  Thanks for the link and correction. Most of these apply to people who have income other than employment, but a couple of them affect employees only (such as those collecting child benefit). I think there's a huge difference how the UK handles this where having to file for an employee is usually an exception rather than a rule whereas every single employee in Canada must do this paperwork.
  - kingosticks 10y ago
    Or if fortunate to earn over £100k! But I do totally agree with you. And it does seem the obvious way of doing things. The recent changes to the personal allowance are another example of trying to keep the common case simple.