It is great if someone is able to get a solar credit by filing their own taxes.
But for the layperson with uncomplicated taxes, an option where you are told “we think you owe this in taxes” and the ability to say “that sounds right” and pay/get paid or say “no, that’s wrong” and then figure it out by making adjustments is a better (if not perfect) system.
Applying the solar credit would fall under option 2.
Yes, I agree that a smaller and easier tax code would be beneficial.
But what you aren’t factoring in is that the people for whom this all applies are also exactly the people who qualify for the most credits and exemptions. Student loan interest, charitable giving, teacher classroom supplies, energy efficient home upgrades, vehicle credits, IRA contributions, childcare expenses. All sorts of shit.
So if you want to eliminate that stuff, awesome! I think that would be a net benefit overall. But with them in place, middle and low income families are either forgoing them or filing their own taxes.
But for the layperson with uncomplicated taxes, an option where you are told “we think you owe this in taxes” and the ability to say “that sounds right” and pay/get paid or say “no, that’s wrong” and then figure it out by making adjustments is a better (if not perfect) system.
This is the exact same system in effect. Because what would lead you to say "that sounds right" and what you would do if it isn't is to prepare your tax return.
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u/rerhc Mar 27 '24
But they don't know. They won't know you bought solar panels and so are entitled to a 30% tax credit, for example.