Where Is Your Paycheck Going?
While many of the nation’s high net-worth individuals make much of their income through capital gains, those who still collect a paycheck are doling out of cash to the IRS every time they get paid. The same is true for all taxpayers no matter what income level they fall in. In fact, according to a recent report, American taxpayers will spend more on taxes in 2016 than some of the most basic monthly expenditures combined.
The Tax Foundation recently reported that the nation’s taxpayers would pay $3.3 trillion in federal taxes and an additional $1.6 trillion in state and local taxes this year. That is almost $5 trillion in total taxes paid, which represents 31 percent of the country’s income. To put that into perspective, Americans will pay more in taxes this year than they will for housing, clothing and food combined.
So, next time you wonder where your paycheck is going just look to the federal government, because they own about a third of it. The percentage is even higher for high net-worth individuals. Meantime, the Tax Foundation also reported that Tax Freedom Day fell on April 24 this year, one day earlier than last year. Tax Freedom Day represents how long the country, as a whole, has to work to pay off its tax debt for the entire year. So in a sense, up until this point in the year, the nation’s entire workforce has been working for free.
How to Choose Your Tax Filing Status if You’re Married
If you’re married then you’ve probably just always filed a joint return with your spouse. In fact, chances are you’ve never even considered filing any other way. However, for some people, married filing jointly is not the best option. Depending on your situation, it could be more advantageous to file separately. Here are some things…
IRS Has Handed Out More Than $100 Billion in Refunds so far
As with every tax season there have been some mistakes that have caused problems for some taxpayers, as well as the usual battle with tax scams that pop up every year. However for the most part, the refund process has gone well to this point. In fact, at the end of February, the IRS reported…
There Is a Bright Side for Early Filers Victimized by Obamacare Gaffe
There’s been no shortage of complaints and problems with Obamacare since the nations new health care coverage law went into effect. In fact, the debate continues to rage on and another major decision from the U.S. Supreme Court is forthcoming in the months ahead. However, for the time being, Obamacare has been a problem for…
Should You Pay Estimated Taxes?
For most people tax time only comes once year. However, for anyone who has to pay estimated taxes a large tax bill could be due several times a year. Again, most people do not have to worry about paying estimated taxes, but there are several circumstances that will put you in that category. The most…