Now that you saw Scott’s piece on the show, you might know a few more things about income taxes than you did yesterday.
Here are the facts: You’ve gotta pay the IRS (Internal Revenue Service) by April 15th when you earn more than $5,950 in any given year, no matter how old you are.
But what exactly do you have to do?
At the beginning of each year, any place you’ve worked and any interest earning accounts you have will send you a form called a W2, which you then use to fill information on a form called a 1040. Then you do some math and boom — you find out how much of a refund you’re getting, maybe. You might also owe a little something, which you pay when you file the forms with the IRS.
Now that you know the basics, how about learning some fun tax facts? (We swear, they exist.)
- 2013 is the 100th anniversary of the 1040 form.
- You used to be able to deduct losses due to “shipwrecks” from your income?
- The highest tax rate that the U.S. has ever had was in 1944. It was 94%!
- 26% of people say they “hate” paying their taxes.
- But 75% of those same people say it’s a “moral obligation” to report their income correctly and pay taxes on it.
For more of the how’s and why’s of giving Uncle Sam his due, check out this IRS site for students.