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Why do low income people need any software to file taxes in the first place? If you just make a wage taxes are trivial.
by mruts 8y ago
Why do low income people need any software to file taxes in the first place? If you just make a wage taxes are trivial.
- pwinnski 8y agoBecause companies like TurboTax work to ensure it remains as complicated as possible, and seems even more complicated than it actually is.
- OrgNet 8y agoHow do they even get into that business? They see the tax filling process and think "hey, it's too easy, let make it harder and sell a product to make it easier" (I'm clearly not a business person).
- pwinnski 8y agoMostly by lobbying politicians for extra exemptions that make taxes more complicated, but also by directly lobbying against bills that would simplify things.
- cmurf 8y agoWithholding overtaxes. They're entitled to a refund.
- Broken_Hippo 8y agoIt is true that lower income folks tend to have simpler taxes and really don't need software. The taxes are easy on paper. But e-file still wins. Most poor folks could really use the money they get back from taxes and it is definitely quicker. E-file also saves folks from doing things like making copies, buying stamps, and mailing. On top of it all, there is a fair amount less chance of mistakes. Not to mention that there is a sizable number of folks that cannot figure out the legalese the IRS uses for slightly complicated taxes and the IRS helplines are generally of little help.
- mruts 8y agoPoor people don’t pay any taxes in the first place. So the point is moot.
- astura 8y agoI was once one of those "so poor I didn't owe any income taxes" people you are talking about. Know how I didn't pay income tax? I filed my tax return at the end of the year and got a refund for 100% of the taxes taken out of my check. People who receive any sort of taxable income file taxes, not just people who pay taxes on that income.
- InclinedPlane 8y agoQuick question, do you know the difference between paying taxes and filing taxes? Also, do you understand how withholding works and how you pay taxes with every pay check not just every year? And that if you have too low of an annual income to actually owe any federal tax you need to file in order to get your withholding back?
- dragonwriter 8y agoEven if you file as exempt and have no withholding, you may need to file because of refundable credits (mainly EITC).
- InclinedPlane 8y agoAnd even if, for some reason, you have no withholding, and aren't expecting a refund, you may still be required to file just because your income is above the threshold (which is about 12k I think).
- C1sc0cat 8y agoThere are multiple state federal and some times city taxes I believe.
- astura 8y agoI agree. However, many people, both low and high income, know absolutely nothing about taxes and tax forms or how complicated or not complicated their tax situation may be or how much effort they'd spend on tax filing. People are taught the tax code is really complicated and they are really worried about screwing up. Furthermore, TurboTax has become so big that many new filers just kinda think "Do Taxes = TurboTax" without really considering that they can do it without tax software.