April 18 is just 2 weeks away and your unfiled taxes have you in a fear. Whether you file on your own or use tax return preparation services in Concord, you need to know certain important things about tax, such as what is your filing obligation? What is the rate of taxation? Do you have all the important documents needed to file tax? Orhow your choices can affect your bottom line?
You know, this is the time when IRS requires employees to report their salary information on Form W-2. You want to minimize your tax liability and maximize your tax benefits; you get timely and accurate advice and all deduction possible for your situation when you file with TaxCare.
You may or may not like having to pay taxes, but if your gross income is more than the applicable magic number, you have to pay federal income tax. The following surprising facts highlight what many of us don’t know about tax?
The IRS code is too long and changes a lot
No, it is not 5,000, not even 10,000; the IRS tax code is more than 70,000 pages long. Yes, you read it right. If you are going to file tax for the first time and have a complicated return, you need enough time, energy and patience to get the proper knowledge of tax return. If you find it difficult or have stuck in between, find a professional tax preparer, like TaxCare A professional and experienced tax expert definitely saves you a lot of money.
Second thing is that IRS code changes more than once a day. According to a report, there have been more than 4,500 changes to the tax code since 2001.
The first income tax occurred in 1815
The first income tax occurred in 1815 when an income tax was proposed to pay for the war of 1812 by Secretary of Treasury Alexander Dallas. However, it did not become a law till President Abraham Lincoln hasn’t passed the revenue act of 1861 to fund the costs of civil war. Earlier, the act imposed a flat tax of 3% on those people who had gross income over $8,000. But later in 1862, the act was amended and a new interest rate of 5% was imposed for all incomes over $10,000.
The Average Tax Refund is About The Same For Each State
From income to cost of living, many things vary to a great extent from state to state. But average tax refund doesn’t change much. No matter from which state are you, the national average tax refund i.e. $2,860 stays almost exactly the same across the board.
California has the most millionaires
According to Forbes, United States has 540 billionaires with a combined net worth of $2.399 trillion. Out of these California has the most millionaires. In 2013, more than 40,000 Californians reported over $1 million in income. Even in 2016, California has the highest density of millionaires, with 772,555 millionaire households. Vermont has the least –less than 300 millionaires.
IRS never ask for electronic personal information
You may have seen many scams related to tax. Scammers might call, email or text claiming to be the IRS and you can easily be scammed. It’s important to know that IRS never requests electronic personal information nor demands immediate payment of taxes owed. If IRS needs some information about you, they will mail you first. If you get a call asking your electronic personal information, call the IRS. With some awareness, you can protect yourself from tax-related identity thefts and scams.