This is great, and I appreciate the approach. Yes, tax calculation should be a decision tree. Unfortunately it is truly pretty complicated (just this year I had to abandon FreeTaxUSA for TurboTax because the latter handled an important case I needed better). But I have a lot of faith that we can do this right. Good luck!
replyFunny, after 10+ years of using TurboTax Online I moved to FreeTaxUSA last year and it's like a breath of fresh air. TurboTax couldn't do what I needed to do (e-file a late return) and FreeTaxUSA had no problem with doing that.
replyI have a probably stupid question: given that the IRS killed Direct File, even if your software can create ready-to-file (or even ones that need some work) tax returns, isn't that moot without a way to like... get the IRS to accept them?
replyIf your software can fill out the forms then you can (at the very least) print them and mail them in. The IRS certainly still accepts that.
replyhttps://www.irs.gov/filing/where-to-file-paper-tax-returns-w...
Why wouldn't the IRS accept a tax return created by your own software? How would they even know it was custom software? Ultimately your tax return is just a stack of papers that gets sent to the IRS.
replySoftware sending efiles to the IRS has to be tested with and approved by the IRS. The IRS is working toward eliminating paper filing as an option. At this point, paid preparers are legally required to efile all returns and if the return gets rejected and they must paper file, they have to include Form 8948, Explanation for Paper Filing. For the IRS to accept a tax return from software the software has to go through this process.
https://www.irs.gov/e-file-providers/how-tax-preparation-sof...
replyAs someone from the Netherlands, this is bonkers to me. I just log in to the tax site, review what they've already filled in for me, and submit.
replyAs an American, it is bonkers to me too. Last year my former employer did not issue me a w-2. I called the IRS to ask them what to do. They said they had all the information but can’t release it to me until after the filing deadline. Instead I was told to use form 4852 to estimate and file an amended return if my estimate was wrong once they give me the numbers they have. Worst part is you can’t efile when you file with form 4852.
replyAnyway, my point is that for 95% of people they have all the information already and you shouldn’t have to file.
You can use free file fillable forms to submit online. It's a bit of work to transcribe from other software. It also requires a particular interpretation when filling forms (e.g. you need to round before summing your W-2s).
replyYou just mail them in!
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