#TaxFiling #ComplicatedTaxes #TaxSeasonStruggles #TaxHelpNeeded
Reasons Why Filing Taxes is Hard
Complex Tax Laws and Regulations
Filing taxes can be daunting due to the intricate web of tax laws and regulations that are constantly changing. 📚 This complexity can overwhelm individuals who may not have a background in accounting or finance. Tax codes are often difficult to interpret, leading to confusion and errors.
Different Income Sources and Deductions
People may struggle with filing taxes because of multiple income sources, such as freelance work, investment income, or rental properties. Tracking and reporting all these different sources of income can be confusing. Similarly, determining which deductions and credits apply to each income source can be a challenge. 💸
Required Documentation and Record-Keeping
Keeping track of receipts, W-2 forms, 1099s, and other necessary documentation can be overwhelming. Organizing all the paperwork needed for tax filing can be time-consuming and stressful. Without proper records, people may miss out on deductions or make errors in their tax return. 🗂
Tips to Simplify Tax Filing
1. Use tax preparation software like TurboTax or H&R Block to guide you through the process and minimize errors.
2. Consult with a tax professional or accountant for personalized advice and assistance.
3. Keep all financial records organized throughout the year to make tax filing easier.
4. Take advantage of free resources like IRS publications and online tax guides to understand tax laws better.
In conclusion, people find filing taxes hard due to the complex nature of tax laws, the variety of income sources and deductions, and the need for meticulous record-keeping. By understanding these challenges and using tools and resources available, individuals can navigate tax season with greater ease. 💪 #TaxHelp #TaxSeasonSimplified
Because they don’t remember the old days when you did all the math by hand at the kitchen table with an adding machine if you were lucky, and checked it about 50 times before filling the numbers in with ink and mailing your return off to the IRS.
I am old enough to remember those days.
I … gather you take the Standard Deduction then? Just a wild guess.
Taxes can get way, way (way!) more complicated once the Standard Deduction is no longer the best option for you. For most people that’s when they buy their first home, since it’s leaving money in the table not to itemize when you’re a homeowner … but it also means your taxes suddenly got crazy complex.
Try anything other than a standard deduction. Also, it isn’t “hard” per se, it’s unnecessary
If you just do standard deduction, then yeah taxes are simple.
It gets way more complicated the more stuff you do.
When I was a barista it was easy – just input my W-2
Buy a house? More stuff on your taxes
Download Robinhood? More complicated
Work freelance? Start your own business? Way more complicated
Use the affordable care act? Another layer of numbers
Student loans? More forms
Then there’s all the random deductions or credits you can get which is just kafkaesque
It piles up
If you just have W2 wages, like most people, your taxes are mind-numbingly easy to file and there’s no excuse.
But have you ever tried reporting capital gains tax on Schedule D with adjusted cost-basis ratio?
Different situations require different levels of complexity when it comes to taxes. Not everyone will have the same deductions and whatnot. Some people just have a W-2 or 1099 and take the standard deduction, that’s really simple.
Some people have small businesses, stock/mutual funds, and all other kinds of taxable income with itemized deductions. It can become very complex!
As others have commented it is quite simple when you only have W-2 work to report. For me personally I had to have someone do my taxes for me in more recent years. This was due to having a bit of W-2 work, a couple different 1099 jobs, starting my own LLC, and a couple other random things thrown in. Doing my own taxes got out of hand quickly and it was well worth paying someone to handle it for me.
One job, one address, standard deduction…easy.
Freelancing? Capital gains/losses? “Other” taxable income? Interest on home or student loans? It gets wicked complicated.
Multiple income sources and mulptiplr dedecductions spunds messy w2 standard dedeductuon is simple
If you have a pretty straightforward situation it’s super easy. Mine was for 10 years— this last year it is not as clear cut and more complicated unfortunately.
Your right your taxes are very simple…. Try mine.
The people who said that wouldn’t have paid attention anyway. They would have said “you just take it to someone like my parents do, why do I need to learn this?”
Retirement, disability, 5 different state income taxes… Yeah I paid someone 65 bucks to do the deed.
I think it’s just that many people find math difficult, and likely don’t know any of the benefits they’re eligible for.
One of those things that’s just easier to shove into someone else’s hands along with $60
It’s hard when you owe money. Between the W2’s, 1099R, B, INT’s, 1098, and other crap, just watching the ticker on TurboTax creep up with every entry sucks…. That’s the hard part. And to add insult to injury, it cost $218.00 for the honor of filing…
It’s a spectrum from easy to stupid.
When I had a single W2? Upload pdf, submit… done and done.
When I had two W2’s, two 1099’s, ownership of three LLC’s, two investment accounts, a home, and a retirement account… all spread across 4 states? Less easy.
The ease (or difficulty) of filing taxes depends upon your aptitude and experience. Accountants, engineers, scientist — no problem. If you are not using arithmetic on a regular basis, it could be frustrating, but there is a way through it by taking the time to read the links from the little “information icons” in the tax prep software. Patience, calm attitude, and good reading comprehension can help you do an excellent job. The software takes care of the math and the numbers to enter are on the forms you receive. You just need to put the numbers in the correct software input box and answer the questions correctly.
If you have complicated taxes, it’s hard to do them.
Yeah, I’ve never understood it either.
I have to file tax returns in 4 different countries, and in all of those countries the government agency responsible for providing tax forms also provides instructions for those forms.
It’s not difficult to read ‘On Line 14, enter the amount from Box 6 of the Partnership Return’ or whatever and then do that.
Because the people who write TV shows and Movies tend to have more money to waste than your average worker, taxes are complicated for THEM because they’re rich and it’s all they know.
Just like how to most studio execs think presentations are the only possible way somebody could possibly be overworked in an office job.
I’m guessing he/she is single, taking the standard deduction, doesn’t have to include business expenses and medical expenses, probably also renting?
Buy some rental properties, trade some crypto, and sell some stocks… it gets less easy.
Back when I was filling out the 1040-EZ, it was a snap.
Then I started investing. That’s when it becomes complicated. When I tried to fill out Schedule D and the other dividend and interest forms on my own, I got completely lost. It was a convoluted mess with no plain-English guidance. That year I turned to an accountant, who used tax software to do my taxes. Since then, I have been using tax software.
Even with tax software that automatically downloads the data from your brokerage accounts and is supposed to put the figures in the right place, there are weird things that it messes up. It’ll tell you that you forgot to fill in some obscure field, with no clear explanation as to how to do it properly.
If your finances are uncomplicated, tax filing is a snap. Once you complicate it with investments, marriage/family, home purchases and sales, deductibles, overseas residency, etc., it becomes complicated, and sifting through the reams of poorly worded instructions to find the exact scenario that fits your situation is a pain.
It depends on their country. My country makes filling taxes for most people very easy. Plus a lot of cyber cafes can file for you for less than $5. You can file taxes in less than 30 minutes if you know what you are doing. People who file NIL tax literally spend 5 minutes to file their taxes for the whole year.
My favorite part of that argument is this notion that a bunch of disinterested 16-18 year olds are suddenly going to be captivated with school when the class is about doing taxes.
Have you heard of Alternative Minimum Tax?
Yeah I don’t know what it means either.
Yeah sure, you put in your W2 straight from the paper. Then it asks about 50 other things. Do those apply? Heck if I know. Let me Google for 30 minutes. Turns out no. Maybe. So I go to the next section, and it asks about 50 more things. Each one requires googling. None of which I have any idea about. Do I have anything to claim? Depends. What the heck am I claiming for? Is this related to work, insurance, medical expenses, childcare? What the hell is a 1095 C form and where do I put it in? Why did they send it to me if I don’t need it for my return? Does a 1095 B form exist? Should I wait for that? Does it even apply?
Every single step require knowledge that I simply don’t have. It’s easy if you know what you’re doing. But there’s a lot of stuff that you have to research to find out whether or not it even applies to you, only to find out you spend an hour confirming that no, it does not apply. Probably. And so you do the next part, and the next, reading articles and guides and watching stupid videos. And eventually you finish and submit and you hope you did it right.
Sure would have been nice if literally anyone ever had explained this.
The term originated when taxes were completed on a physical form not answering yes/no questions and copying/pasting numbers in a program. And when everyone had to figure out every itemized deduction from a shoebox full of physical receipts and there was no internet to look things up.
https://www.irs.gov/pub/irs-pdf/f1040.pdf
When I was self employed my taxes were pretty complicated. I’d never have been sure if I was doing it properly unless I had an accountant do it.
Using the actual tax form is pretty damn challenging
It’s very confusing and chunky. Using something else to do taxes is easy
It was simple when it was just me. It’s more complicated now with espp and a family and all that
I have multiple 1099s and I been day trading. I pay like 400 dollars for someone to make sure I owe nothing somehow at the end of the year
Quarterlies, mf.
People don’t know how to read the forms even though there are step by step instructions.
You’re probably young.
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When you got older your life gets more complicated, and you have stocks, mortgages, investments, deductions, and god help you if you have a side business because business taxes are hellish
The more you have, the more complicated your taxes. If you don’t have much, taxes are easy.
Not sure OP. I am good at math and can figure out the basic shit, but my dad tried for three straight years before he passed, and I literally just never understood it.
The tax code is complicated.
Can never be fully learned or taught because it is constantly changing. Laws on the federal level are everchanging. Fifty states with fifty different sets of tax law – constantly changing.
The more complicated your situation, the more complicated it is to apply the correct and most beneficial tax code.
Yes standard form for most people is not difficult. But some forms like this 1 page form
https://www.irs.gov/pub/irs-access/f6781_accessible.pdf
By the IRS’s own estimate takes 2hrs to understand and 3 hrs to fill out. They estimate it takes 5 hrs to complete this one page form if you made only one option trade.
Obviously your financial life is very basic. Start having a portfolio with some substance and it does get intensive.
So mine were easy this year as I just lived and worked in one state. However I’ve previously worked seasonal jobs in different states and have had to file for 4 different states one year which was a pain.
My taxes are significantly more complicated than just adding in numbers from a W2. I also do not know all the tax laws that I can take advantage of.
I hire an expert instead.
it is if you do it yourself
Once you got investments, properties, kids, side hustle, its a lot more complicated than just filling in a 1040A with your W-4.
99% of people are not bright to put it nicely
Agree with what other folks are saying. If it were just a W-2, I could be done with mine in 10 minutes. It gets complicated dealing with the interest I make on various investment accounts and getting credit for retirement savings.