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Seven Things You Didn't Know About Taxes

Updated for Tax Year 2022 • August 25, 2022 02:34 PM


OVERVIEW

You know your federal taxes pay for government programs and services, like roads and national defense. And you may even know the difference between FICA and income tax. But did you know if you want to buy sparklers in West Virginia, you can expect to pay a special fee?


Working overtime

The IRS received about 167 million individual income tax returns in 2021. If each return were processed at the rate of one per minute, it would take one person working 24 hours a day every day more than 316 years to process all 167 million.

IRS working overtime

A long read

Illustrated version of the Washington MonumentFederal tax code is more than 70,000 pages long, growing from 400 pages at its birth in 1913. That’s enough sheets to wallpaper the outside of the Washington Monument.

Taxes with teeth

The IRS issues more than 800 types of tax forms and schedules. That’s more than the world’s population of Siberian tigers.

Illustrated tiger with mouth full of papers

World leaders

New York City has the highest corporate tax rate in the world, followed by Illinois. Both rates are higher than national corporate tax rates in Japan, China, France and Sweden.

Illustrated pie chart series with person in middle

NYC 46.2%
Illinois 42.3%
Japan 41%
France 34.4%
Sweden 26.3%
China 25%

 

Happy Hoosiers?

Where you live matters. A person earning $100,000 a year in Hawaii will pay almost 50 percent more in state income taxes than someone who earns the same amount but lives in Indiana.

Happy Hoosiers

Have a coke and a smile?

Several states have some odd-seeming tax laws on the books. The so-called “Jock Tax” taxes professional athletes from visiting teams. Some states have even extended the law to musicians and skateboarders. West Virginia adds a special tax to a Fourth of July favorite—sparklers. The city of Chicago taxes fountain sodas at a higher rate than bottled or canned pop.

Illustration of baseball player holding money up to man in business suit

Oops

More than 20 percent of returns filed on paper have at least one error; this can raise the odds of an audit or delay a refund. Try e-filing and go green.

Illustrated stacks of papers

Sources:

Wikipedia.org
http://www.businessinsider.com/tax-facts-that-will-make-your-head-explode-2010-4
http://www.nps.gov/nr/travel/wash/dc72.htm
http://www.allaboutwildlife.com/endangered-species/endangered-species-population-numbers/3596
http://money.cnn.com/2004/03/31/pf/taxes/strangetaxes/index.htm
http://www.taxdebthelp.com/blog/tax-facts-fun-and-interesting-details-about-taxation

Remember, with TurboTax, we'll ask you simple questions about your life and help you fill out all the right tax forms. With TurboTax you can be confident your taxes are done right, from simple to complex tax returns, no matter what your situation.

Article and Illustrations created by Infographic World

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