3 ms·
It's pretty dumb that this has an upper income limit that covers plenty of regular W2 wage workers
by whimsicalism 2y ago
It's pretty dumb that this has an upper income limit that covers plenty of regular W2 wage workers
- stalfosknight 2y agoNice complainbrag.
- whimsicalism 2y agothank you, had to draft a few times to make sure it was appropriately subtle so only you could pick up on it
- MarkSweep 2y agoSome forms like 8959 and 8960 kick in at $200k. So I assume limiting to below that was to limit the scope of their MVP.
- demosthanos 2y agoWhat is the income limit? The IRS's publication describing the program for 2023 lists a 1099-INT income limit but no W-2 income limit: https://www.irs.gov/pub/irs-pdf/p5917.pdf https://www.irs.gov/pub/irs-pdf/p5917.pdf
- whimsicalism 2y ago"You can’t use Direct File if your wages are more than $200,000 ($160,200 if you had more than one employer)." from https://directfile.irs.gov/income https://directfile.irs.gov/income
- demosthanos 2y agoThanks! It's also weird that that's buried on a webpage that they really don't want you to find anymore and not prominently displayed on the flyer they put out.
- whimsicalism 2y agoit might have been this limit only existed for last years pilot (but i guess still should have been in the flier)? i was also surprised i was having trouble finding reference to it but it's definitely a thing
- khuey 2y agoBased on those numbers it sounds like the limitation is more "Direct File can't handle the Additional Medicare Tax or overwithheld FICA yet" than a baseless exclusion of higher income taxpayers.
- whimsicalism 2y agogood to know, thank you! totally support excluding features if it helped them get to an earlier release for most taxpayers - but hopefully they go to it eventually
- g15jv2dp 2y ago$200k puts you in the top 5% of earning, FYI.
- INTPenis 2y agoInteresting because in Sweden there is a turnover limit of around 284k USD/year for using their simplified tool for financial statements. Which covers most sole-proprietors who have 1-2 contracts, like myself.
- pessimizer 2y agoSo 20 million people then.
- g15jv2dp 2y agoNo, it's probably closer to about 12 million people (children don't usually declare income).
- bagels 2y agoWhy does that mean they should be excluded?
- g15jv2dp 2y agoThere are special taxation concerns for high income individual. Dealing with these would have certainly delayed the launch of the service. I'd rather have the service launch now for 95% of people and have coverage improve over the years, than have it launch in several years (or possibly never) for 100% of people. Besides, if you're in the top 5% of income, you can afford a CPA.
- surajrmal 2y ago17% in California though,and probably even lower if you look at specific counties near cities. Income is relative.