Comments on: E-Filing: the Good and the Bad http://allfinancialmatters.com/2006/02/20/the-e-filing-the-good-and-the-bad/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Sat, 11 Feb 2012 20:32:19 +0000 hourly 1 http://wordpress.org/?v= By: Joshua K http://allfinancialmatters.com/2006/02/20/the-e-filing-the-good-and-the-bad/comment-page-1/#comment-1903 Joshua K Thu, 23 Feb 2006 16:58:28 +0000 http://www.allthingsfinancialblog.com/2006/02/20/the-e-filing-the-good-and-the-bad/#comment-1903 I filed for free using <a href="http://www.taxactonline.com" rel="nofollow">TaxAct Online</a> The whole thing was free except for the stamp I used to mail my signature for the online acceptance and agreemant.. I got my refund in about 10 days, the exact day I was told I would get it. It also has the benefit of saving information so I'll be able to do the filing process in even less time next year. I know those same people that the same day they get their W2 they're down at some tax refund service office and are begging to spend good money they don't have yet on a very poor financial decision... and I have to feel sorry for them. I filed for free using TaxAct Online The whole thing was free except for the stamp I used to mail my signature for the online acceptance and agreemant.. I got my refund in about 10 days, the exact day I was told I would get it. It also has the benefit of saving information so I’ll be able to do the filing process in even less time next year. I know those same people that the same day they get their W2 they’re down at some tax refund service office and are begging to spend good money they don’t have yet on a very poor financial decision… and I have to feel sorry for them.

]]> By: samerwriter http://allfinancialmatters.com/2006/02/20/the-e-filing-the-good-and-the-bad/comment-page-1/#comment-1876 samerwriter Wed, 22 Feb 2006 08:28:10 +0000 http://www.allthingsfinancialblog.com/2006/02/20/the-e-filing-the-good-and-the-bad/#comment-1876 I don't understand e-filing; I can send my taxes in for free (excluding postage). If I do this, the IRS has to pay someone to read my taxes, and re-enter all the information in their computers. That must be an enormously expensive process. E-filing should eliminate that employee. It should save the IRS money. It should be easier for me. Everyone wins! Then why am I required to go through a third party who either charges me money or subjects me to product pitches? Back in the 90s, the IRS offered a service where you could print out and send in a more compact OCR-able tax form. My typical 10-20 pages of forms could be reduced to a couple pages that the IRS could easily scan in, but that capability seems to no longer be available. I don’t understand e-filing; I can send my taxes in for free (excluding postage). If I do this, the IRS has to pay someone to read my taxes, and re-enter all the information in their computers. That must be an enormously expensive process.

E-filing should eliminate that employee. It should save the IRS money. It should be easier for me. Everyone wins! Then why am I required to go through a third party who either charges me money or subjects me to product pitches?

Back in the 90s, the IRS offered a service where you could print out and send in a more compact OCR-able tax form. My typical 10-20 pages of forms could be reduced to a couple pages that the IRS could easily scan in, but that capability seems to no longer be available.

]]> By: blockhead http://allfinancialmatters.com/2006/02/20/the-e-filing-the-good-and-the-bad/comment-page-1/#comment-1865 blockhead Tue, 21 Feb 2006 19:21:44 +0000 http://www.allthingsfinancialblog.com/2006/02/20/the-e-filing-the-good-and-the-bad/#comment-1865 I prepare taxes for H&R Block, and I practically BEG people not to take the banking products. Most of them do it anyway, either because they: a) don't want to pay for the return, and the only way they can have the cost of the return deducted from the refund is to use one of the banking products (minimum $25 charge) b) don't really care that when they're getting a $4000 refund that they're paying over $100 in banking fees to get their money in 1-2 days. These are the people I work on the most - but frequently, their refund is 20-40% of their annual income(!!) so they just want their money NOW. It kills me to watch this, but once I advise people as strongly as I can (professionally), it's still their choice. My experience has taught me that you can't protect people from themselves, you don't need a large income to be financally sound, and that many of the people that are "poor" are in that state because they won't do what is necessary to help themselves (like paying for their return to avoid the banking fees, or better yet, learning to do their own taxes when they're really easy...) I prepare taxes for H&R Block, and I practically BEG people not to take the banking products. Most of them do it anyway, either because they:
a) don’t want to pay for the return, and the only way they can have the cost of the return deducted from the refund is to use one of the banking products (minimum $25 charge)
b) don’t really care that when they’re getting a $4000 refund that they’re paying over $100 in banking fees to get their money in 1-2 days. These are the people I work on the most – but frequently, their refund is 20-40% of their annual income(!!) so they just want their money NOW.

It kills me to watch this, but once I advise people as strongly as I can (professionally), it’s still their choice. My experience has taught me that you can’t protect people from themselves, you don’t need a large income to be financally sound, and that many of the people that are “poor” are in that state because they won’t do what is necessary to help themselves (like paying for their return to avoid the banking fees, or better yet, learning to do their own taxes when they’re really easy…)

]]> By: Foobarista http://allfinancialmatters.com/2006/02/20/the-e-filing-the-good-and-the-bad/comment-page-1/#comment-1859 Foobarista Tue, 21 Feb 2006 05:57:55 +0000 http://www.allthingsfinancialblog.com/2006/02/20/the-e-filing-the-good-and-the-bad/#comment-1859 Refund loans are only marginally less evil than payday loans. If it takes two weeks to get a refund, the fee is $75, and your refund is $2000, you're paying 97.5% interest! Refund loans are only marginally less evil than payday loans. If it takes two weeks to get a refund, the fee is $75, and your refund is $2000, you’re paying 97.5% interest!

]]>