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by toomuchtodo 882 days ago
Using the IRS' option (Direct File) [1] [2], if able, shows uptake, which will be used to gauge success and continued operation and improvement. If you can use it, you should. It is how for profit tax prep gets driven to the margins, and is eventually sunset (except for perhaps the most complex returns).

> Just use FreeTaxUSA...

That is how the status quo remains. Hasn't served us well to be honest. Of course, use FreeTaxUSA to avoid paid options if you don't fall into the IRS pilot criteria. But if you fall into the criteria, please consider participating.

[1] https://www.irs.gov/about-irs/strategic-plan/direct-file

[2] https://www.irs.gov/about-irs/a-closer-look-at-the-irs-direc...

(i want my tax filing provided by the IRS directly, and as frictionless as possible; ymmv)

2 comments

> Using the IRS' option, if able, shows uptake, which will be used to gauge success and continued operation and improvement. If you can use it, you should. It is how for profit tax prep gets driven to the margins, and is eventually sunset (except for perhaps the most complex returns).

FreeTaxUSA is part of the IRS' free filing program, except it exceeds the IRS standards by offering free Federal Filing for any AGI... no maximum.

FreeTaxUSA is already marginalizing tax filing software. It cannot get cheaper than free. Additionally, they're the cheapest/easiest State Filing system I am aware of.

> > Just use FreeTaxUSA...

> That is how the status quo remains. Hasn't done very well for us tbh.

This is exactly how the status quo is destroyed. FreeTaxUSA provides the same outcome as vastly more expensive software and/or tax preparation services, at no cost to you for Federal Returns.

We're simply at an impasse because you prefer the non government option, and I expect my government to provide it.
I don't believe you actually are aware of what you are talking about. There is no government option currently, except manually filling out forms.

Furthermore, it is naïve to believe the government will provide better service and/or usability than a private organization who's entire existence and purpose is to make submitting tax returns easy.

Unless they edited, they're talking about Direct File and not Free File. The former IS a software provided by the government.

https://www.irs.gov/about-irs/a-closer-look-at-the-irs-direc...

> Unless they edited

Yes, they have edited their comment since my response.

Even still, Direct File is a joke. Available in only 12 states, and excludes anyone with business income, "gig economy" income, itemization, retirement/savings credit, and childcare credits.

It also does not cover state filing either... so you get to experience the joy of doing your taxes twice.

It simply does not compare with FreeTaxUSA, or even paid offerings.

https://www.irs.gov/about-irs/strategic-plan/direct-file

It’s a pilot. Nothing big can change except via incremental steps.
IRS Direct File is tax filing software created by the IRS - by the government. That is the government option.
> There is no government option currently

There's the IRS Direct File pilot that is being talked about ...

From your first link:

> The Direct File pilot will be available to eligible participants in these states:

> Arizona

> California

> Florida

> Massachusetts

> Nevada

> New Hampshire

> New York

> South Dakota

> Tennessee

> Texas

> Washington state

> Wyoming

> The pilot is not an option for you if you did not live in one of the 12 participating states in 2023.

Cali, Texas, Florida, and New York are some of the biggest states, but most Americans aren't eligible.

~145M potential taxpayers across the states you list is a fine pilot program population to start with (out of 331M people in country). Walk, then run. As your pilot moves into a fully operationalized state, you then have customer support and engineering capacity to work out edge cases. I don't see a problem; I see the beginning of success. You have to start somewhere.

https://en.wikipedia.org/wiki/List_of_U.S._states_and_territ...

I thought one of the reasons for this was more about state tax models, moreso than anything else.