Re:13 States join the IRS direct-file test after tax prep fi...
by hedora on Thursday October 19, 2023 @11:21AM
(#37944130)
The question with the trump era changes isn’t what percentage itemize in a given year.
The question to ask is what percentage should always itemize. and how long it takes for them to figure out if they should or not each year.
It is true that some people just won’t bother, but that’s just a hidden tax hike on the middle class. It doesn’t make sense for that group to bother to take the time to learn turbotax or hire an accountant in order to potentially save $1000.
Also, the Trump changes intentionally cause under-witholding, so now people have to fill out the “did I get fined for underpayment?” form, and the “do I need to file quarterly taxes?” form.
The change that intentionally broke the withholding formula was explicitly designed to make tax preparation more painful.
The question to ask is what percentage should always itemize. and how long it takes for them to figure out if they should or not each year.
It is true that some people just won’t bother, but that’s just a hidden tax hike on the middle class. It doesn’t make sense for that group to bother to take the time to learn turbotax or hire an accountant in order to potentially save $1000.
Also, the Trump changes intentionally cause under-witholding, so now people have to fill out the “did I get fined for underpayment?” form, and the “do I need to file quarterly taxes?” form.
The change that intentionally broke the withholding formula was explicitly designed to make tax preparation more painful.