←back to thread

Millions of Americans mess up their taxes, but a new law will help

(www.wakeuptopolitics.com)
63 points toomuchtodo | 2 comments | 07 Dec 25 19:03 UTC | HN request time: 0.41s | source
Show context
a_bonobo ◴[07 Dec 25 23:44 UTC] No.46186600[source]▶
> to accurately prepopulate tax returns for around 45% of Americans. (Those other countries have much simpler tax codes than we do.)

One should note that the cited study quotes the 45% from a 1992 study. These days, with gig economy and quasi-self-employment, that number is probably higher since you don't have an employer who reports your income for you.

Still, here in Australia, where we have the return-free tax system, adding what you earned from your various gig jobs isn't too hard: you add that as items to the web form: 'I made 15,123 from Uber Eats'. That just gets added to your overall return. I don't see how that's so hard compared to the US?

replies(2): >>46186654 #>>46187845 #
lbotos ◴[07 Dec 25 23:52 UTC] No.46186654[source]▶
In the states if you are a contractor there are tons of things that you can deduct from your taxable income. So “figuring out how much you should be taxed” is after those deductions.

If uber paid you $15123 but you:

Just bought a new bike bc your other was stolen

You paid $1200 for insurance

You bought a helmet and cold weather clothes etc etc.

Those things reduce your taxable income.

replies(2): >>46186695 #>>46187045 #
1. a_bonobo ◴[07 Dec 25 23:56 UTC] No.46186695[source]▶
Yes, same in Australia. Keep receipts and add the cost to the web form.

They have simplified it nicely, though: if you work from home you can claim a per-hour deduction so you don't have to do the math of wear-and-tear, electricity, internet etc. I think it was $0.6 per hour?

replies(1): >>46189540 #
2. Ekaros ◴[08 Dec 25 07:47 UTC] No.46189540[source]▶
Finland did that even simpler more than 50% of work days you get 750€. Ofc, hard part is to calculate 50% of your internet bill. And then any technology you buy for remote work. Not chair, desk or lamps though, those are in the room part...

Thankfully(\s), they are simplifying it even further next year and removing whole thing. Now you only get to deduct money if you actually rent an office...