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Here in Sweden I go to the tax office website, log in, have a brief look at that all my salary has been correctly entered (I have yet to encounter that it hasn'
by cycomanic 6y ago
Here in Sweden I go to the tax office website, log in, have a brief look at that all my salary has been correctly entered (I have yet to encounter that it hasn't) add if I possibly want to deduct some extra things (also very uncomplicated), go to file and click send (the whole thing can even be done on mobile) . The process typically takes 20min max, Australia was quite similar. I'm always amazed by tax systems which seem to be so complicated that you almost always need an accountant (I know my parents in Germany always had one, even though their job did not imply more complex taxes than mine)
- ivalm 6y agoIf all your taxes are just wages then you just fill out a two page form (1040). Literally just copy a couple of numbers from your w2 and you’re good. The problem is if you have non-salary sources of income (eg stock, non-employee compensation, etc) then things can rapidly become very complicated.
- criddell 6y agoYou're right, but I think cycomanic has a point. Why do you even have to fill out the 1040? Why isn't there a default option where you can review tax forms that have already been filled out with the the information the IRS has already received?
- jjeaff 6y agoThat has been proposed. But has been shot down by powerful lobbying groups. One being the tax prep software companies, but another being a conservative group that objects to making paying tax easier because then it will become too easy for the government to just keep raising taxes. The idea is that if you have to file your taxes every year, you have to acknowledge how much you are paying.
- spullara 6y agoIf your taxes are easy in Sweden / Australia they would be easy in the US.
- notahacker 6y agoMy understanding is that if your personal taxes are moderately complicated (income from self employment and investment/property, some possible deductions) they're a lot harder in the US though. HMRC's website in the UK is far from perfect, but its tax form covering all UK personal taxes has the features people appear to be paying for with TurboTax (Q&A format, most sections being optional, references to industry specific deductions, guidance notes) baked in. If your taxes are "easy" in the UK they come out of your payroll without you filing a return.
- kristopolous 6y agoWhat makes you say that? You know they are intentionally difficult in the US? For instance, there's been legislation where the IRS would simply tell you how much you owe and you pay it or dispute it. The IRS already know this amount, because this is what eventually happens. Turbotax successfully lobbied for its defeat. It explicitly spends large amounts of money to complicate and convolute the system and structure it like a classroom quiz.
- s1artibartfast 6y agoOne of the major challenges with the US system is that the central authorities do not have much of the individual tax information all submitted and processed in advance of the individual taxes. The individual then has to to incorporate this information and file it. Sometimes individuals get amended taxTax information from their income sources and then have to re-file. The central authorities cross check on the backend (in theory). It is incredibly arcane, and in some cases individuals holding publicly traded assets are legally required to file income tax in all 50 states.
- teclordphrack2 6y agoThis is incorrect. Your employer is paying in and reporting your taxed income to the feds on a quarterly basis. There are some exceptions to this depending on business size i think but the vast majority of the data is in the feds hands.
- 6y ago
- foepys 6y agoYou don't have to file taxes in Germany except if you and your spouse are filing together or if you are self employed. Everything else is being handled by your employer. If you want to get some of your pre-paid taxes back, you will have to file but the tax office doesn't care if you don't.
- cycomanic 6y agoTo be honest I don't know how it is now, but I remember my parents always having an accountant because it was just so much easier to deal with this, and they were a teacher and psychologist (not self employed), without any significant additional income.
- tharkun__ 6y agoHaving an accountant do it in that situation is so not worth it. I know my parents also used one for way too long. So easy with tax software and with the government software you don't even have to pay for the software any longer. Fun fact, they called the government provided tax software ELSTER which in German is also the name of a bird (Eurasian magpie) which is also known as the "thieving magpie". Who said the government didn't have a sense of humor!
- stjohnswarts 6y agoIf you don't have a lot of investment type stuff in the USA then tax forms are a breeze. They really should be zero effort but it's not hard.