Tax Trivia Fun Facts, Quizzes and Tests

The IRS won’t charge a failure-to-file penalty when a refund is due. However, there is a three-year statute of limitations on refunds. If you file more than three years after your deadline, then you won’t get your money. Some examples include taxes on alcohol, tobacco, gambling, and even fast food.

Abraham Lincoln gave us federal income tax.

• That’s because the state gives companies a massive 20% tax credit if they spend $500,000 or more on production and post-production.
• In the lead-up to the United States entering World War II, Vermont lawmakers voted to give residents serving in the military a $10-a-month bonus.
• The motto from the Boston Tea Party carries over to modern times.
• In some cases, they’re praised for contributing to society.

But the United States uses marginal tax brackets, meaning the higher rate applies only to the earnings that fall within the higher bracket. If only a single dollar bumps a taxpayer into a higher bracket, only that one dollar is taxed at the marginal rate for that tax day trivia bracket. According to the Tax Policy Center think tank, 41.6% of tax filers will owe no individual income tax or have negative taxable income in 2024.

His approach to personal finance is that of an engineer, breaking down complex subjects into bite-sized easily understood concepts that you can use in your daily life. The internet is a great place to get new ideas and opinions you hadn’t considered you can’t blindly follow the advice. Your finances are too important to leave to internet articles written by unknown people. Instead, follow a variety of bloggers, bounce new ideas off a trusted source, and verify your decisions with a fee-only financial planner when you can. You can stuff your receipts into one of our Magic Envelopes (prepaid postage within the US). Use our receipt tracker + receipt scanner app (iPhone, iPad and Android) to snap a picture while on the go.

Don’t Fear the “Fiscal Cliff”: TurboTax Gives You the Tax Law Facts

I often characterize the IRS as the heartbeat of America.» In 2022, they hired over 4,000 new customer service representatives. The Inflation Reduction Act is in large part responsible for this.

• Here at Fact Retriever, even taxes can be fun and interesting.
• Shoeboxed is an expense & receipt tracking app that helps you get reimbursed quickly, maximize tax deductions, and reduce the hassle of doing accounting.
• While many people’s wallets are already hurting from inflation, unfortunately taxes are among the few things in life that are unavoidable.
• Only about 10-15% of workers in the U.S. are self-employed, and therefore, pay self-employment taxes.
• One example of a sin tax is Utah’s 10% tax on businesses that have nude or partially nude workers — in other words, strip clubs.

The IRS and the Civil War are Historical Bedfellows.

It aimed to make the IRS more customer-centric and accountable. And, it was intended to improve the agency overall. Your extension request must be filed on or before your original tax payment due date. One of the big misconceptions, Frost says, is that people think they didn’t owe any tax if they get a refund. When student loans mature and start accruing interest, that interest is a deduction ­– but not just any deduction.

The first taxes implemented in the United States caused a rebellion.

According to the IRS, the average time it used to take to complete a Form 1040 was 16 hours; a 1040A took seven hours; and a 1040EZ took five hours. This year, nonbusiness taxpayers can expect to spend some 9 hours on their taxes, while business taxpayers can look forward to spending an average of 24 hours. Starr Wright USA is a marketing name for Starr Wright Insurance Agency, Inc. and its affiliate(s). Starr Wright USA is an insurance agency specializing in insurance solutions for federal employees and federal contractors.

Supreme Court more or less indicated that in most circumstances taxation of salaries of state/local employees by the federal government was just fine. He has spent every weekend since January helping staff the program there but took some time to talk tax trivia. Frost, a lecturer at ASU’s W. P. Carey School of Business, knows taxes. The ASU alumnus worked in accounting for years, including with one of the “big 8” firms and with the fledgling America West Airlines, and along the way taxes caught his fancy. You may know about deductions for education, work expenses and children.

Service animals qualify as a write-off

Due to a high personal exemption, only 1.1% of working-age people filed a return, according to the Tax Foundation, and about 17% of those filers did not have to pay income taxes. Feminine hygiene products are a necessity for many women, yet most states impose a sales tax on their sale while exempting other necessities, including groceries and medication. There are growing international and domestic movements to end the tax. Some states apply sales tax to children’s diapers because they are considered clothing. Some states offer residents very odd or specific tax credits or deductions.

Can I Still File a Paper Return by Tax Day?

One historian notes that the key to Islam’s phenomenal growth was the use of taxation as an inducement to conversion. Zedekiah, king of the Jews, had his eyes put out by Nebuchadnezzar, king of Babylon, for his tax defiance. While religious historians see the defeats and suffering of the Jewish people as part of God’s plan, secular historians see them as a series of tax revolts throughout the centuries. After the Muslims conquered most of the lands of Judea in A.D. 636, they made tax refunds to Christians and Jews in Palestine.

Code, referred to as the Internal Revenue Code (IRC), contains nearly all our federal tax laws. It’s available to read for free online by anyone who wishes to see it, and you can also buy printed volumes. The federal tax code changes every year as tax brackets adjust for inflation. Not only that, but the organization itself has been through some large changes over the years. You can still mail a paper return, but it must be postmarked by Tax Day to be considered on time.

Please keep in mind that it is not a financial institution’s responsibility to ensure all posts and questions are answered. No one likes Tax Day, except for accountants and Uncle Sam. While many people’s wallets are already hurting from inflation, unfortunately taxes are among the few things in life that are unavoidable. Known as TABOR, it’s meant to limit the government’s power of taxation. When Colorado legalized marijuana, the amount of tax to be collected was underestimated.