This year’s tax filing deadline is coming up, and here are some tax notes:
–The tax deadline this year is Monday, April 18th instead of Friday, April 15th. That’s because Washington D.C. is celebrating its Emancipation Day holiday on Friday and the IRS offices in the city will be closed. Taxpayers in Maine and Massachusetts have until Tuesday, April 19th to file because Monday is a holiday in those states—Patriots Day.
–The IRS says nine out of ten refunds are issued in less than 21 days, and “as of the week ending April 1, the IRS had sent out more than 63 million refunds worth over $204 billion. The average refund is $3,226.” Taxpayers can track their refund here.
–According to the Peter G. Peterson Foundation, “The top one percent of taxpayers generate 30 percent of individual income tax revenues.” That one percent also receives 19 percent of the benefits.
–Naturally, you do not want to file your taxes late, but you also do not want to file too early. According to the IRS, “People who don’t wait to file before they receive all the proper tax reporting documents risk making a mistake that may lead to a processing delay.”
–Taxes in one form or another have been around since civilization. According to the Tax Foundation, the earliest recorded taxes were 5,000 years ago in Egypt, “where the Pharaoh collected a tax equivalent to 20 percent of all grain harvests.” The Romans imposed taxes on income, inheritance and trade.
–The American colonies were subject to taxes imposed by the British government. According to the Tax Foundation, the earliest items taxed included molasses, sugar, wine, printed documents, newspapers and many other items, including tea, which led to the Boston Tea Party.
–The first tax on income in the U.S. was imposed in 1861 to help pay for the union effort in the Civil War. It was later removed. In 1909, Congress passed the 16th Amendment to the Constitution, giving the federal government authority to tax income without apportioning it to the states. The amendment was ratified in 1913 and Congress then passed an income tax.
–The personal income tax is the largest single source of revenue for West Virginia. This fiscal year, the state expects to collect over $2 billion in income tax. That constitutes 45 percent of the state’s General Revenue budget.
–The highest individual income tax rate in West Virginia is 6.5 percent. That is higher than any of the five neighboring states. California has the highest income tax rate of 13.3 percent, followed by New York at 10.9 percent and New Jersey at 10.75 percent. Florida, Tennessee, Texas, South Dakota, Wyoming, Nevada and Alaska have no state income tax.
–The government does not get all the money it believes it is due. The IRS reported to Congress last year that as much as $1 trillion now goes uncollected. IRS commissioner Charles Rettig testified that his agency is often “outgunned” by sophisticated tax cheats.
–I suspect most of us just pay what we owe and try not to make a mistake that will prompt a dreaded audit by the IRS. So, remember to include your Social Security number, sign your form and good luck.