making me enter a special code and fill out forms and pay for the ‘deLuXe’ tax software because only that can handle the right forms
i assume other countries do this too. scum apps more like
This is a profoundly American problem op. The rest of the world does not have these issues. Contact you’re representatives and ask them why this is the only place in the world that has this issue.
Canada also works similarly
As an American who moved to Canada, there are similarities but Canada is still one million times better than the US.
The CRA (Canadian IRS) allows digital access to all tax info. Whatever software or service you use, just log into your CRA account and everything auto-fills. Done in a few minutes. My US taxes have never taken less than an hour, and often multiple hours if there’s anything remotely complicated.
I’m not denying that, but things are still shitty here compared to the country I come from because of the same reasons: lobbyism (by the same companies, even!)
Canada also works similarly
Our neighbour is a bad influence on us when it comes to things like business practices.
Use freetaxusa. It’s actually free. I haven’t used it as an independent contractor, but it has worked well for my complicated finances.
I just switched last year and it worked great. I had like 4 other family members file as well through them without issue.
I did it with independent contractor stuff along with my normal job. Site supported both. I think the independent contractor form was like 1090 or 1099 or something? Can’t fully remember.
A 1099 is what you receive from the company that you perform independent contractor services on behalf of in order to report your taxes to the IRS on your 1040 and Schedule C
I think if you have to file state taxes there is sometimes a small fee, but it’s incredibly minimal. For federal taxes it is 100% completely and totally free and I use it each year.
Something people don’t tell you is you can file federal and state taxes at completely different places (they’re 100% separate anyway so it really doesn’t matter). I did this one year using freetaxusa for federal, and some other tax software that did state for free but charged for federal.
This next year though I’m hiring a CPA because my shit has become complicated.
Second this. It is free for federal, and iirc $15 for state. Also, you can upload submissions from Turbotax if you used them before so many fields will be pre-filled out. I actually preferred the freetaxusa experience to turbotax having used both.
i assume other countries do this too
France has flaws, but this isn’t one of them
Try IRS free fillable forms.
A bit of a hassle to learn at the start, but you actually learn how to do the taxes yourself, and it’s 100% free.
The IRS has set up instructions on how to do the paperwork yourself. You are fully capable of reading and following directions. If you really don’t want to pay the software, then file for yourself.
Your response is tone deaf. The American tax code is intentionally complicated to protect tax filing companies and to allow the rich to take advantage of loop holes. I can’t believe how housebroken some people are that they defend the shitty tax system instead of sharing in OP’s anger.
I mean yeah the tax system sucks, but a single 1099 isn’t complicated to fill out
Yes, our system is all fucked up. Yes, the IRS gives instructions to follow. Can’t follow directions?
Also, I heard the IRS has just released new software to make it even easier? Anyone know more?
Can’t follow directions?
What is this, tax advice from Stack Overflow? I don’t understand why people like you don’t save your criticism for the system, instead of at the people using the system.
Yes, the system is fucked up… because the instructions are intentionally designed to be complicated to follow. I don’t know a single person stupid enough to waste their time doing their own taxes by following the directions on the IRS documentation. Horrible advice. Not even professional tax accountants do that.
The IRS free tax-filing service is in limited trial in a few states, eligible only to simple returns within limited income ranges. Most people, including 1099 people like OP, can’t use it.
you’re fully capable of leaving a sensibly sympathetic reply, and yet here we are
The tax app nonsense is uniquely American, in many ways.
I am assuming you are dealing with 1099 income. As someone who had that 15+ years ago and didn’t understand some things, I really hope you understood while earning that you have to pay both your portion of Social Security, and your “employer” would pay since you are your employer (even tho it’s BS in this case). I didn’t and owed a huge amount of money. Over US$3k. And I was making $10/hr so that was a lot. I had to get another job to pay it. I hope you’ll be ok and are happy with what you do!
shit like this is why I won’t declare my upwork earnings. My dad declared nothing for his side job construction work for 30+ years and faced no issues, why should I with my digital work.
I already found a loophole for not having to pay a fine for lack of insurance. I’m sure I can find one for this. I mean, the 1% do it…
Your 1099 is sent to the IRS too. They already know because it was digital. Side construction work is offline and in cash. The IRS will also work with you on payments if you cooperate.
It must be nice to decide which rules you have to follow and which you can ignore
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Did I … did I just get butt-replied?
Yep probably my bad
Pot has been illegal in my state my entire life, still smoked it. I still speed on the highway. It’s all a game of cat and mouse. I’ll live my life my way no matter what rules they make. one day it could be illegal to love who I want. It won’t stop me though :)
Cool, I’ll just pay more taxes to make up for it or deal with lesser-funded services. It’s fine.
I pay plenty of taxes. from my full time job, my purchases, my personal property taxes, my breathing tax. I pay taxes to the city, state, and federal government. Nothing would be underfunded if we didn’t spend so much providing weapons to bomb children as well as doing it ourselves.
None of that justifies tax evasion.
That won’t work for you.
The 1% pay their taxes. That also have every means of deducting their tax bill due to all sort of high level fuckery. You do not.
“contractor” yeah. its a very nice loophole they love to abuse. prevent them from having to care about any benefits also.
It’s just a 1099, if you don’t want to use tax prep software don’t? Learn to do the paperwork yourself. If you’re smart, you’ll deduct all of your mileage, clothing expenses, ‘business related meals’, etc.
Also any healthcare expenses. When I worked 1099, I actually paid LESS in taxes than I do now.
Yeah, I’m 1099 and the standard deduction for a married person is 24k. I get as squirrelly as I can with my deductions and still usually don’t get close. Obviously some things are schedule A versus C or whatever, but I’m not sure I pay less than someone who grosses what I do but as a W2. I take the hit on FICA, since I don’t get to split that with an employer. I’ve been doing it going on 16 years and so my W2 days are hazy, but I’ve never been convinced I’m somehow paying less. Maybe the benefit I get is when I get a new chair to sit at my PC, I write it off, bt they didn’t mean I get $500 back.
Nope. Not a thing over here.
Being an independent contractor has benefits. One of those benefits is having your own schedule.
