Re:FTC Is Investigating Intuit over TurboTax Practices
by Macha on Tuesday September 08, 2020 @02:39PM
(#24411459)
This is why I specified for 90% of people. Most people don't have significant taxable income beyond employment (their only other income being savings account interest which is handled by your bank by a similar but separate system), so their tax liability is their income tax on their employment.
A lot of people in the software industry specifically might have significant investments, shares, maybe rental income, etc, and then you do need to specifically inform the government about those, but this isn't the case for the 90%.
That still raises the question, though, of how your employer knows enough about your tax situation to not significantly over or under withhold. If my wife and I just relied on the basic IRS calculations on the W-4 and didn't specify additional withholding by dollar amount we would end up owing thousands, possibly over $10,000, the following April (before penalties). How do Ireland and others avoid that?