IRS Direct File limitations

[Sara EA]

I just read a piece on IRS's new Direct File pilot, where taxpayers from certain states can efile their returns for free on the IRS website. I originally thought this was a great development, getting those simple returns off our desks and saving folks money. Now I'm not so sure.

The program handles common items like W2s, EITC and CTC, etc.  It doesn't handle Sch B, child care expenses, ACA forms, and the saver's credit.  I think a lot of filers don't know enough about these things and may overlook them.  I've seen a number of self-prepared returns where people pay for child care with flexible spending accounts and forget to reconcile that on their tax returns thinking they aren't claiming any expenses, only to have the IRS add the amount to their income.  Many who enroll in the ACA ignore those forms, and most have no idea what the Saver's Credit is and are surprised when I tell them they got some.extra money.  The IRS program handles student loan interest, but I've seen many parents claim it when they are not on the loan.  Direct File would be a great program if the tax code were simpler, but as it stands I'm not convinced it's a good option for anyone with more than W2 income.

[Lee B]

First, this is a trial run to see what works and what doesn't work.

Second, Intuit has spent Millions of $ lobbying against this program which tells me that in the long run this is a good goal.

[Lee B]

For many years we have had a similar but parallel system called "MilTax", that allows active duty, reserve, national guard  members

and their survivors to file their tax returns for free.

[mcb39]

I think that Intuit and HRB are both feeling the tightening of the screws.  I am already receiving random offers to purchase my business.  Delete! Delete!  In the past week I have had new people call me because they can't file this or that on Turbo Tax unless they step up to the business program.  Well, I don't know much about Turbo Tax except, as Sara said, they miss issues that they know nothing about.  And, basically, we don't charge that much more for basic returns and prepare them properly; just because WE CAN.

[mcb39]

Just now, mcb39 said:

I think that Intuit and HRB are both feeling the tightening of the screws.  I am already receiving random offers to purchase my business.  Delete! Delete!  In the past week I have had new people call me because they can't file this or that on Turbo Tax unless they step up to the business program.  Well, I don't know much about Turbo Tax except, as Sara said, they miss issues that they know nothing about.  And, basically, we don't charge that much more for basic returns and prepare them properly; just because WE CAN.

I Never charge for active duty Military.  Never have, never will.

[BulldogTom]

1 hour ago, mcb39 said:

I Never charge for active duty Military.  Never have, never will.

You are a great American!  

Tom
Longview, TX
USCG BM2 1984-1987

[mcb39]

21 hours ago, BulldogTom said:

You are a great American!  

Tom
Longview, TX
USCG BM2 1984-1987

Thank you Tom.  My husband was in the Navy!!