Source - Design Thinking! Comic
this post was submitted on 23 Apr 2024
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So… the irs knows how much you’re paying before you ever file.
They could just send you a bill.
That’s true only for very simple situations.
Everything from upgrading your doors and windows or your air conditioner and getting a tax credit, to renting out a room and deducting that portion of your home expenses, to working a side handyman or cleaning gig, to spending some cold-wallet crypto to buy gold, to the cost basis of previously unreported gains, to getting married and deciding to file together - the IRS doesn’t know.
And some things are arbitrary, and you have to make the choice and then tell them what choice you made, and how you value it.
Canada is starting to do that. But it's "we think this is the situation. If that's true, pay and move on. If that's not true, file and pay. And don't lie or we'll mess you up."
I think that's this year. Maybe next.
In Germany the employer has to pay the taxes, the employee doesnt have to do anything. They are paid their income after tax directly
This is true in the United States as well, and IRS really doesn’t give a shit if you don’t owe them money and never file - the failure to file fee if you don’t owe is minimal. But you will lose your ability to get it refunded after 3 years.
I've only ever got refunds; they sure as hell better not send me a bill! Unless it's a dollar bill. Those are fine.
I agree with you but it's also a sorta. They don't know if you've done any under the table work that you need to report. With that said, they definitely could just have you log in securely with all your info already inputed and just have you double check and sign with the option to add more if needed. That's how the Australians do it iirc, just log in, check and sign.
If they don't know, they don't need to know.
Just send me the bill/refund according to what you know, IRS.
I agree with you. Could be way easier for us if it wasn't for lobbying.
“Under the table” sort of implies you won’t be reporting it. They know about 1099 type stuff, as well as getting reports from your brokerage and everywhere else.
90% of Americans the only real question is if you updated your w-4 or not to reflect recent changes as well as relevant deductions which probably should just go away. (I mean, seriously. I drive to work just factor in the average and call it good- don’t make me track mileage.)