4 ms·

Why do I even have to do anything? Just take it from my paycheck directly

by baby 4y ago

refurb 4y ago
Considering the IRS doesn't even have access to things like cost-basis for capital gains, no way I'd trust them to complete it correctly. They'll likely just assume best case scenario for them (and worst for you).
- Rury 4y ago
  That hasn't been the case for me. I end up owing come tax time every year, and yet every time, after having paid what is owed, months later they give me a small refund anyways. Now I know where I can save money on my taxes, and I've done it before, but it's the savings are so small that it's not even worth the time doing. Yet, it's about what they give me in the refund. Why didn't they just keep it, especially given it's such a small amount?
  - refurb 4y ago
    How do you know the IRS is calculating it right?
    - Rury 4y ago
      It doesn't matter, as it's not evidence for them choosing the "best case scenario" for themselves. The best case would of been them just keeping an overpayment, and never refunding me anything. And besides, I have double checked the calculations before, and it's basically what they gave me (minus rounding cents to nearest dollar in each calculation).
stoned 4y ago
They do, but then this is an annual reconciliation in case you had other income, or things changed, etc.
ct0 4y ago
Jobs. With all the extra paperwork, we can create "jobs" and pay ourselves on the back. I agree, i've already paid my taxes why am I spending time/money to get my own money back?
tekla 4y ago
The IRS is not actually a godly being that has omniscient knowledge of every transaction that ever goes on and in the future. How is the IRS supposed to figure out how much money to take away from your W2 when you could get a billion dollar windfall at the end of the year and massively change tax bracket?
- azinman2 4y ago
  By following the model that Spain and other countries follow: take the information they know (which is basically everything since anything meaningful is reported), calculate it, send you what they think you owe, and you either pay it as is or you file taxes manually.
  - tekla 4y ago
    If you have a standard 1 job W2, that is... literally what already happens, except even with less steps, since they already took the money out of my paycheck. The 1 job W2 literally takes 15 minutes to fill out if so, and it is pretty much signing off that you didn't make a million dollars on the side that the IRS doesn't know about.
    - azinman2 4y ago
      Except in the US you still have to file your taxes. They might be the simplest to do, but you still have to. Which typically means people end up using turbotax etc, and paying for the product. Spain's equivalent is basically 'we know you have a kid and this income so here you so. just sign on the dotted line'
      - _yb2s 4y ago
        In the US you do not need to file if you are confident you don’t owe the IRS money, or if they owe you money and you don’t want the hassle to get it back. If you are able to setup withholdings to exactly match what you owe there is no reason to file. I have skipped filing a few times.
jxramos 4y ago
Not every source of income for folks is from a W2 payroll. Lots of 1099 stuff out there and other complexities people can get involved in. It’s interesting the complexity of the tax law imposes that complexity on everyone just about.
madsbuch 4y ago
This is how it works in most countries across the pond...
- ashconnor 4y ago
  Only works in the UK this way if you earn less than £100k. Canada forces most people to file a return too. Though it’s simpler than a US return.
  - MagicMoonlight 4y ago
    There’s no limits on the UK tax system. It’s always automatic and free as long as you aren’t self employed.
    - ashconnor 4y ago
      > You’ll also need to do a Self Assessment tax return. https://www.gov.uk/income-tax-rates/income-over-100000 https://www.gov.uk/income-tax-rates/income-over-100000
  - blue_cookeh 4y ago
    > Only works in the UK this way if you earn less than £100k. I mean that puts you in the top 1% here...
itronitron 4y ago
Agreed, but people won't hate paying their taxes if it isn't a tortuous process.

Why do I even have to do anything? Just take it from my paycheck directly

by baby 4y ago

Why do I even have to do anything? Just take it from my paycheck directly

Considering the IRS doesn't even have access to things like cost-basis for capital gains, no way I'd trust them to complete it correctly. They'll likely just assume best case scenario for them (and worst for you).

Rury 4y ago
That hasn't been the case for me. I end up owing come tax time every year, and yet every time, after having paid what is owed, months later they give me a small refund anyways. Now I know where I can save money on my taxes, and I've done it before, but it's the savings are so small that it's not even worth the time doing. Yet, it's about what they give me in the refund. Why didn't they just keep it, especially given it's such a small amount?
- refurb 4y ago
  How do you know the IRS is calculating it right?
  - Rury 4y ago
    It doesn't matter, as it's not evidence for them choosing the "best case scenario" for themselves. The best case would of been them just keeping an overpayment, and never refunding me anything. And besides, I have double checked the calculations before, and it's basically what they gave me (minus rounding cents to nearest dollar in each calculation).

stoned 4y ago

They do, but then this is an annual reconciliation in case you had other income, or things changed, etc.

ct0 4y ago

Jobs. With all the extra paperwork, we can create "jobs" and pay ourselves on the back. I agree, i've already paid my taxes why am I spending time/money to get my own money back?

tekla 4y ago

The IRS is not actually a godly being that has omniscient knowledge of every transaction that ever goes on and in the future. How is the IRS supposed to figure out how much money to take away from your W2 when you could get a billion dollar windfall at the end of the year and massively change tax bracket?

azinman2 4y ago
By following the model that Spain and other countries follow: take the information they know (which is basically everything since anything meaningful is reported), calculate it, send you what they think you owe, and you either pay it as is or you file taxes manually.
- tekla 4y ago
  If you have a standard 1 job W2, that is... literally what already happens, except even with less steps, since they already took the money out of my paycheck. The 1 job W2 literally takes 15 minutes to fill out if so, and it is pretty much signing off that you didn't make a million dollars on the side that the IRS doesn't know about.
  - azinman2 4y ago
    Except in the US you still have to file your taxes. They might be the simplest to do, but you still have to. Which typically means people end up using turbotax etc, and paying for the product. Spain's equivalent is basically 'we know you have a kid and this income so here you so. just sign on the dotted line'
    - _yb2s 4y ago
      In the US you do not need to file if you are confident you don’t owe the IRS money, or if they owe you money and you don’t want the hassle to get it back. If you are able to setup withholdings to exactly match what you owe there is no reason to file. I have skipped filing a few times.

jxramos 4y ago

Not every source of income for folks is from a W2 payroll. Lots of 1099 stuff out there and other complexities people can get involved in. It’s interesting the complexity of the tax law imposes that complexity on everyone just about.

madsbuch 4y ago

This is how it works in most countries across the pond...

ashconnor 4y ago
Only works in the UK this way if you earn less than £100k. Canada forces most people to file a return too. Though it’s simpler than a US return.
- MagicMoonlight 4y ago
  There’s no limits on the UK tax system. It’s always automatic and free as long as you aren’t self employed.
  - ashconnor 4y ago
    > You’ll also need to do a Self Assessment tax return. https://www.gov.uk/income-tax-rates/income-over-100000 https://www.gov.uk/income-tax-rates/income-over-100000
- blue_cookeh 4y ago
  > Only works in the UK this way if you earn less than £100k. I mean that puts you in the top 1% here...

itronitron 4y ago

Agreed, but people won't hate paying their taxes if it isn't a tortuous process.