Wednesday, April 10, 2019

File your taxes FREE! (but not for long...)

 

Norene and I just recently e-filed our tax return for 2018 and we did it with the free tax preparation software available at IRS.gov.  It was... not too bad, all things considered and it cost us nothing to fill-in and file, a far cry from many of the other 'free' tax-prep offers you see on the web and in your inbox.

Most of those other 'free' offers have a hidden list of qualifications: your total income must be less than x; you may not itemize deductions; schedule A and several other forms are not 'free'; and the list goes on and on.  You spend several hours doing data-entry before the software tells you that you don't qualify for the free e-file option and it will cost $39.95 or $69.95 or $89.95 if, having done all that work, you still wish to e-file and, in many cases, even print your return.

The free tax-prep software at IRS.gov was actually free, but it may not be that way for very long.  The House Ways and Means committee has just sent the "Taxpayers First Act" to the full House for action.  The name, as you might suspect, is another of Congress' bald-faced lies.  It really ought to have been named the "Screw The Taxpayers First Act".  If it passes the House and the Senate, expect Trump to sign it into law.  It will then become illegal for the IRS to provide free tax-filing software.

Illegal.  H&R Block, TurboTax, and several other similar companies like this bill, because after it passes (and it will), you will have little choice but to fork over $39.95 or $69.95 or $89.95 if you want to e-file.

Of course, you could just 'go through the motions', then hand-copy the numbers onto paper forms, carefully, carefully, not making any mistakes, slip the forms into an envelope, and mail them.  You'll have your refund in three weeks or five weeks or eight weeks instead of five days — until TaxAct and TurboTax and H&R Block fix their software to only show you how much you owe or how much you're getting back, and you'll only see the real 1040 after you fork over $39.95 or $69.95 or $89.95.  I predict that will happen immediately upon passage of the "Screw The Taxpayers First Act".

...as if the income tax itself wasn't outrage enough.

To read a more nuanced take on this, go here.

 

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