IRS makes free tax return program permanent and is asking all states to join in 2025. This could deal a massive blow to private tax filing services such as TurboTax
IRS makes free tax return program permanent and is asking all states to join in 2025. This could deal a massive blow to private tax filing services such as TurboTax
The IRS will make permanent the free electronic tax return filing system that it experimented with this year.
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Using this ended being a massive pain in the ass for me. I could file the federal taxes online, but after I submitted it and attempted to file my state taxes online it said I couldn't since I lived in NYC and made more than 75k/yr and I'd have to mail them in since it's impossible to file only your state taxes online due to the IRS' requirements.
I haven't used my printer in years so it was a hassle just to print out 5 pages and mail them half way across the country. It also delayed getting my refund by about a month.
Growing pains. States that work with the IRS will be able to (relatively) easily setup a way to receive the information from the IRS in a way that makes the states job easier too. This is a win for everyone except the tax preparing industry.
Yeah, I just assumed it would work smoothly by now. I've been using TurboTax for the past 7 years and have had no issues, I attempted to save money by doing it this way, but it caused way more headaches for me.
The agency also is inviting all states with a state income tax to sign up and help people file their state returns for free. During the 2024 pilot, tax agencies in Arizona, Massachusetts, California and New York helped people directly file their state taxes.
If you lived in NYC and made than 75k/year you can't file online using the state's website, and both of those were true for me. I moved out of NYC last June, I live in Florida now. Also, why should I have to go see a tax agent? I should just be able to do it all online myself. I've been doing it for 7 years with TurboTax.
Yeah, and NYC’s cost of living is going to make that the case for a higher percentage of people. These initiatives are really targeting middle and lower income people outside of cities.
Sounds like you’re in that uncomfortable spot where you need to pay to do your taxes but it’s probably not worth it to pay an accountant. Paid software is probably ideal for you, but I personally wouldn’t use TurboTax out of principle just because of how obsessively they lobby to keep the system like this.
Every library has tax forms for free if you're mailing them in.
I had them already prepared (I attempted to do it via H&R block as well but it was rejected since I had already submitted my federal forms), I just couldn't submit them. Also I moved 1300 miles away in the past year, so I couldn't really do that anyway haha
Sounds like a state problem. It works great in my state. It will get better in time.
A city problem to be more exact. Since I lived in NYC and made more than 75k in a year I couldn't file online, using the site the IRS directed me to (I've been doing it myself with TurboTax for the past 7 years, and paying for it). Due to the IRS' own rules, you can't file just your state tax returns online, since they're largely the same as the federal taxes. So both are actually at fault.
I live in Florida now so I don't have to pay state taxes, so next year's will be a breeze.
you can't file just your state tax returns online
Then either I’m misunderstanding you, or I’m filing my taxes wrong lol
This is a month late, but what I meant was there is no way to do them completely separately since the state largely uses your federal return. When you submit your state taxes it checks to see if your federal return was already accepted (usually at that point you haven't actually submitted your federal taxes, or at least the IRS hasn't entered them in as submitted), if it shows as being accepted already their system is set up in a way that won't allow a second submission online.