It is batshit insane that we need to file taxes ourselves.
How do we not just get an invoice from the government every year?
they don't know how much you have made
@perfect_brains Sure they do. Your employer and bank send them that info every year.
For contract work, we'd just change it so the client sends the 1099-MISC to the IRS instead of the contractor.
That would cover 99% of taxpayers right there.
what if some of your income is tax deductible?
@perfect_brains Then the tiny percentage of people who have more itemized deductions than the standard deduction would need to file that in response to the invoice, with supporting documentation, and understand that they are at higher risk of audit as a result.
@perfect_brains No, but as a business owner, I have some experience with how much you need to actually spend/donate to have more itemized than the standard deduction (a lot), so logically, it should be a tiny percentage.
From what I understand, there aren't many folks who don't take the standard deduction, and they're nearly all high-earners who are trying to reduce their tax burden with financial shenanigans.
in many cases small business owners would want to use their home office and deduct that
@perfect_brains In most cases, it's not enough of a deduction to matter.
@perfect_brains Exactly. So, those people would still need to file, but the rest of us wouldn't.
@LouisIngenthron
some very rich people can deduct huge amounts
in some cases the richest people pay no tax at all
so the richer you get, the more you would use deductions