Comment by SoftTalker
7 hours ago
If you have only W2 income ("W2" is the name of the form the employer reports your income and tax witholding on) and no unusual other credits or deductions, then US tax filing is very simple. It is not much more than:
Taxable income = Total income - Standard deduction
Look up tax due in a table.
Subtract taxes already witheld, pay (or refund) the difference.
In most states you also have to file, but this is normally just transcribing a few totals from your federal filing and then computing the state tax due, normally just a simple percentage multiple.
If it's that simple, how come it's so complicated that the US have an entire business line profiting from tax filing?
Most people never look into how simple their situation might be. They just pay TurboTax $50 and move on with their day.
But also, taxes can get complicated, I'm just suggesting that for many people, with typical incomes and employment, they are not.
When I was in middle school (1970s) we learned how to file a tax return. For some reason this is no longer taught today.
> When I was in middle school (1970s) we learned how to file a tax return. For some reason this is no longer taught today.
We have the same problem in Norway; youngsters aren't taught proper private economy at school, just the "normal maths." Which leads to people getting into financial trouble because of stupid stuff. :/
Thanks for updating me on the US tax system! Hope all is well over there! :)