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by tombert 2436 days ago
Sure, that's always an option, but due the complexity of the tax codes, it's very easy to make a mistake when doing everything yourself.

For example, I used to work in New Jersey, and live in New York, meaning I would have to file two state tax returns, in addition to the federal. There are weird rules that you can deduct one state's taxes from the other, and then deduct the remainder from the federal taxes. The rules get complex really quickly, and even with helpful software I made a mistake one year resulting in a fine. I can't imagine how frequently I'd make mistakes if I had to do it manually.

TurboTax definitely provides a service by making it so that schmucks like me can do taxes, but if the tax code is that complex, shouldn't we have a software like this for free? At the very least, to provide some motivations to politicians to help simplify the tax code?

2 comments

> to provide some motivations to politicians to help simplify the tax code?

You speak of NJ, NY, taxes, "mistakes", fines, potential "audits" by the IRS, then wonder why politicians would want to simplify and improve something that many of them likely grift from or cheat on themselves, due to that same complexity...

...and one of the biggest of these tax cheats hails from NY, likely has had his now (on again, off again) lawyer, who used to be mayor of NYC and before that as a US AG - probably ran interference for his cheating and other scams.

But all of them - and plenty of others - benefit from the complexity and other issues, and don't want it any other way, unfortunately. No real good solutions to that.

Hey now, no pointing out that the government has an incentive to keep the system difficult and confusing because it gets them money!

That’s absolutely not acceptable in this thread (I tried)!

Tax code complexity and the mechanics of filing are orthogonal. Fixing both is not a requirement for fixing either separately, or an excuse for not doing it.
How much was the fine? What sort of mistake was made?
Fine wasn't that big, on the order of $150.

It wasn't actually directly due to the multi-state thing. I paid for my wife's college, and NY has a thing to let you deduct tuition from dependents on taxes. I had forgotten to attach the proof of payment for tuition, leading to me getting audited (in the most technical send of the word) and fined slightly. The biggest pain in the ass was the back-and-forth I had to do to close my case, which involved me faxing things multiple times.

Horrendous. Australia doesn't fine for making a mistake. They just send you a notice to pay the difference.