alt Hacker News> 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
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.
Income reporting is not the problem: Anyone paying you any significant amount of money is required to file with the IRS, including if you’re paying yourself.
The issue is the broad range of deductions and credits that depend on things like the composition of your household and your primary residence. Contra some expectations, the IRS does not keep a database of who’s shacking up with whom, where, or if kids are in the picture.