What I Wish I'd Known About Equity Before Joining a Unicorn

Re:What I Wish I'd Known About Equity Before Joining a Unicorn by bluejekyll on Wednesday January 18, 2017 @10:34AM (#13427018)

> Why does it still cost money to file taxes anyway?

It doesn't, but because of the complexity of the tax system most people either use a tool like TurboTax or an accountant, to file for them; that costs money.

And the reason it exists, the lobbying of special interest groups for exceptions to taxes. If you can convince people in government that you deserve a break b/c what you're doing benefits society somehow, there's a tax loophole waiting for you too!

And now, there is the multi billion dollar industry that depends on this complexity and doesn't want it simplified. This is a huge waste, we waste money individually that could be spent on actual goods, and the IRS/government waste money needing to audit all the people who decided that maybe they did deserve a tax credit that perhaps they did not.

[ Parent | on HN ]

Re:What I Wish I'd Known About Equity Before Joining a Unicorn by mywittyname on Wednesday January 18, 2017 @12:39PM (#13428337)

> It doesn't, but because of the complexity of the tax system most people either use a tool like TurboTax or an accountant,

Very few people actually need an accountant or even TurboTax to do their taxes.

[ Parent | on HN ]

Re:What I Wish I'd Known About Equity Before Joining a Unicorn by femtopost on Wednesday January 18, 2017 @01:22PM (#13428775)

Roughly 62% of Americans are homeowners[0]. Somewhere between 50-75% of Americans have children[1][2]. If you're in either situation, you're likely unable to file a Form 1040 EZ. While the full Form 1040 is only 2 pages long, the instructions for it are 106 pages long[3] - and when you complete your 1040 you declare, under penalty of perjury, that you filled it out accurately.

Those people may not technically need an accountant, but to do their taxes without assistance would be foolish.

[0]https://www.bloomberg.com/news/articles/2016-07-28/homeowner... [1]http://www.huffingtonpost.com/2015/04/09/childless-more-wome... [2]http://www.gallup.com/poll/164618/desire-children-norm.aspx [3]https://www.irs.gov/pub/irs-pdf/i1040gi.pdf

[ Parent | on HN ]

Re:What I Wish I'd Known About Equity Before Joining a Unicorn by mywittyname on Wednesday January 18, 2017 @05:06PM (#13430787)

Neither of those situations is particularly difficult to handle. My mother has all of those things and to this day she still files a traditional paper 1040 like she has for the past decades. And she's not college educated or especially bright. She just does it because an hour of her time is worth more than the nearly $200 all-in costs of doing a state and federal return with TT.

The IRS could go towards a model where they assume a standard deduction and verified dependents, and issue a refund based on that. Then let people file an amended return with itemized deductions if they wish.

The tax code in the US can be very complicated, but the for the vast majority of wager earners, it's pretty straight forward. The complications come on the business end of things.

[ Parent | on HN ]

Re:What I Wish I'd Known About Equity Before Joining a Unicorn by chrisper on Wednesday January 18, 2017 @01:02PM (#13428563)

>Very few people actually need

You could use this phrase to describe a lot of advertisements and products. However, these ads work on many people and they are made to feel like if they need it. Considering the argument they make is that with TurboTax you could get more money back than without using it, I am not surprised many people buy this tool and use it.

[ Parent | on HN ]