User:0mtwb9gd5wx/CalFile2

CalFile is a free 20-minute tax preparation program initiated by the California Franchise Tax Board (FTB) to file state tax returns online directly to the Franchise Tax Board.

ReadyReturn features are now part of CalFile.

"'File online in minutes. FTB offers free electronic filing through CalFile, an easy-to-use tool available to more than 6.4 million taxpayers. FTB recommends setting up direct deposit to get a fast refund – generally within 7 to 10 days.'"

"'FTB offers CalFile, a free e-file program for more complicated tax filings. This online process takes about 15 to 30 minutes to complete. With CalFile, the taxpayer types in his or her tax information and e-files the return from FTB’s website. More than 6.4 million taxpayers can use CalFile. FTB also produced a short video describing the ease of using CalFile.'"

"'Most California taxpayers can file their state tax return online for free using CalFile, sponsored by the Franchise Tax Board, but last year only about 1 percent did. With a Basic CalFile account, you don’t need a PIN, but must enter everything manually. With a Deluxe Account, you will have to wait for a PIN in the mail, but you will be able to view and import data from last year’s tax return, California wage and withholding information, estimated payments and other data the state has on you. (If you get a PIN, don’t wait too long to activate your account.) The income limits to use CalFile are high — $182,459 for single and $364,923 for joint returns. But some things will exclude you, such as capital gains or losses, business income, rental income, distributions from a retirement account before age 59½ and Roth IRA conversions.'"

"According to the California Franchise Tax Board, CalFile’s annual costs are about $100,000, which goes toward updating the program in accordance with any new tax legislation, and saves the state over half a million dollars a year. (For comparison, the private-sector tax-prep industry is estimated to bring in $10 billion in revenue every year.) − The Atlantic"

"'But not many Californians are using it. Of the 2 million taxpayers who were eligible to use ReadyReturn, just 89,000 used the program last year, according to the state Franchise Tax Board. Some 244,000 Californians used CalFile, the state’s other online tax program, which requires that taxpayers enter their own information, the board said. In a nutshell, ReadyReturn is for filers with under about $250,000 in income and CalFile is for wealthier taxpayers. ReadyReturn is not without controversy. It started out as a pilot in 2005, but faced opposition from the industry, particularly Intuit, producer of TurboTax.'"

"'State Controller and Franchise Tax Board Chairman Steve Westly is urging Californians to file their taxes electronically. The state’s electronic filing system, CalFile, allows residents to file up until midnight on Monday. And taxpayers owed a refund can get money back within five to seven days, compared to six to eight weeks for paper returns.'"

"'Another legislative session, another well-funded campaign waged by Intuit Corp. to abolish California’s free, innovative and wildly popular electronic tax filing programs, ReadyReturn and CalFile. These two programs provide California taxpayers with a reliable, voluntary, safe and free way to calculate and file their taxes.' —Dennis J. Ventry, Jr., professor at UC Davis School of Law, specializing in tax policy and legal ethics, 21 July 2010"

"...the success of TurboTax rests on a shaky foundation, one that could collapse overnight if the U.S. government did what most wealthy countries did long ago and made tax filing simple and free for most citizens."

"'The name for tax filing where the government sends out completed tax forms is return-free filing or pro forma returns. Countries like Sweden and Spain use return-free filing. In Estonia, 95% of taxpayers receive their tax bill online, and many pay with a single click.'"

"'In fact, the industry already ran Big Brother-themed ads in California when tax authorities there were setting up CalFile, a direct e-filing system for state taxes. Lenny Goldberg, the head of the California Tax Reform Association, says Intuit is leading the charge against direct e-filing.'"

"'Unfortunately, Intuit, the maker of TurboTax, has banded with other tax-filing corporations to form a multi-million dollar lobbying machine to halt the government from rolling the technology out nation-wide. In 2010, the LA Times reported that Intuit spent $1,250,000 lobbying the state, at least in part to kill the pilot and prevent its spread throughout the country.'"

"''It's a direct and simple option for California residents,' said John Roper, spokesman for California State Controller, John Chiang, who chairs the Franchise Tax Board, California's tax-collecting arm. 'CalFile has been around since 2004-'05, and it takes less than 30 minutes. The controller believes it's a great option. Filing taxes is a burden and any way you lessen that burden can help taxpayers.' Roper adds that CalFile lowers the cost to the state of dealing with taxes by $2 per return — and those savings translate into more money to spend on other services.'"

"'Intuit, which manufacturers the popular TurboTax program, and others in a business coalition want to curtail the use of free, state-sponsored online tax filing systems. There are two of them. One is Ready Return, a basic, one-step process for taxpayers who use the standard deduction, don’t itemize and only have wage income from one W-2 source. The other is CalFile, which allows itemized deductions and income up to $321,000 for married filing jointly, but is not suitable for some taxpayers, such as those with extensive investment income or business deductions.'"