Yes, you can file your 2019 federal taxes online for free — but it pays to be smart about it.
The IRS struck a deal with tax preparation software companies in 2002 to ensure middle class taxpayers can file for free, but the rules are wonky and complicated, which might be one reason for the program’s underuse.
About 70% of taxpayers qualify to use free tax prep software through the Free File Alliance, a joint effort between the IRS and several private tax preparation software companies, according to the IRS . But statistics show only about 2.7 million returns — out of about 134 million individual returns total — were filed using the IRS’s Free File program for fiscal year 2018, according to IRS data .
Quite a lot has been going on:
The 'Robot Tax' Debate Heats Up - WSJ
Accountant who helped Brian Joyce evade taxes sentenced to 18 months in prison - The Boston Globe
An accountant who conspired with former state senator Brian A. Joyce to cheat the IRS out of about $600,000 was sentenced Thursday to 18 months in federal prison.
John H. Nardozzi, a certified public accountant from Waltham, was convicted by a jury in October of helping Joyce evade taxes through a series of schemes, including deducting more than $2 million in personal expenses by labeling them legal fees.
With no state income tax, where does Texas get its money? Curious Texas investigates
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AUSTIN — Texans doubled down in 2019 against having a state income tax, voting for a revamped ban on one in November.
Now, if the state ever wants to establish a personal income tax, two-thirds of the Texas House and Senate must vote to repeal the constitutional amendment banning one and call a statewide election to let voters decide.
But without a state income tax, Dallas Morning News reader Rick Best asked Curious Texas where the state gets its funding.
Check out this next:
California Bill Targets Tax Breaks for Wealthy Homeowners – NBC Bay Area
California would raise taxes on some homeowners and use the money to pay for homeless services under a bill proposed Thursday by a state lawmaker.
Assemblyman David Chiu, a Democrat from San Francisco, wants to eliminate the mortgage interest deduction on vacation homes.
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Chiu estimates the change will generate an extra $500 million a year in state tax dollars, which he wants to spend on homeless services.
The SECURE Act Fixes The Kiddie Tax Glitch
The SECURE Act includes some far-reaching changes to retirement, but also a relatively innocuous-looking change that can make a big difference to parents of kids with unearned income. This change is embodied in the 'Kiddie Tax'. Prior to the Tax Cuts and Jobs Act (TCJA), children with unearned income had received the first $1,100 of unearned income tax-free, and the next $1,100 was taxed at the child's rate.
The change created some unintended, and rather unwelcome, consequences. Williamson writes, "The TCJA altered the applicable tax rates on this type of income from the parent's tax rate to the tax rates applied to trusts and estates. Each dollar amount of the income bracket for estates and trusts is much smaller, and the maximum tax rate is reached at a lower income level, when compared to the brackets and tax rates for individuals.
In Florida, Homeowners Come for the Weather and Stay for the Tax Relief - WSJ
There's a way for rich homeowners to potentially shave tens of thousands of dollars from their tax bills. They can get that same savings the next year and the following years as well. They can cut their taxes even further after they die. What's the secret?
Republicans Side With Colorado's Democratic Governor On Taxes.
Colorado's lawmakers sat, stood, clapped and sometimes grimaced as Gov. Jared Polis delivered his State of the State speech to launch his second year in office.
As expected, Polis underlined his support for paid family leave and a public health option, among the Democrats' biggest ambitions for the year — as well as for a rewrite of the tax code that is more popular with Republicans.
The reaction in the legislative chambers gave a preview of the session ahead. Often, it was just Democrats standing to applaud their executive, while Republicans stayed quiet. When Polis declared his support for DREAMers and refugees, the Democratic side of the room cheered. When he talked about universal preschool, the ovation came again from his left.
Happening on Twitter
Last year, we revealed that @TurboTax maker @Intuit charged millions of Americans for tax filing services they were… https://t.co/UrFRZ6flYn propublica (from New York, NY) Wed Jan 08 17:30:12 +0000 2020
HEADS UP: Filing your taxes for FREE is easier this year thanks to a new deal with the IRS https://t.co/q0up1dKetX ABC7 Wed Jan 08 14:22:20 +0000 2020
Glad to see that the IRS has taken my concerns seriously and is working to make sure consumers who qualify for Free… https://t.co/WC02mJJqXd RepKatiePorter (from Irvine, CA and Washington, DC) Thu Jan 02 23:39:14 +0000 2020
We revealed that TurboTax maker Intuit charged millions of Americans for tax filing services they were eligible to… https://t.co/PDFd34FbJu propublica (from New York, NY) Sat Jan 04 03:30:03 +0000 2020
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