alt Hacker NewsLiterally everything could be derived automatically by the government in current year…
The Earned Income Tax Credit is one of the most important transfers embedded in the tax code. It provides about $70B to low-income workers every year.
Take a look at the eligibility criteria:
https://www.irs.gov/credits-deductions/individuals/earned-in...
You can claim the EITC if you are married, not filing a joint return, had a qualifying child who lived with you for more than half of the tax year and either of the following apply.
- You lived apart from your spouse for the last 6 months of tax year, or
- You were legally separated according to your state law under a written separation agreement, or a decree of separate maintenance and you didn't live in the same household as your spouse at the end of the tax year.
…
You can claim the head of household filing status if you're not married, had a qualifying child living with you more than half the year, and you paid more than half the costs of keeping up your home.
No, the government can’t derive this all “automatically”.
Replies
Your government really needs to fix that. That's nuts.
In more civilized countries, you file your current address and all change of address forms with the government, you register any separation agreements with the government, etc.
The government absolutely should know enough to apply this reasonably accurately, and things that they can't correctly derive (like 'paid more than half the costs of keeping up the home') should simply not be part of tax law, or should be a checkbox when registering your address of "I am head of household" so the government knows.
The US government can't derive all this, but they should update it so they can.
Heck, with the NSA's hooks into banks and cell phone companies, there's a non-zero chance they actually could derive this all now if they wanted.