Tax day is a source of dread to many people, which is why so many taxpayers neglect to file their taxes until the very last minute. If you'd like to look at the lighter side of the tax code, here are five fun tax facts to take your mind off your potential tax bill.
1. The United States government has not always levied an income tax.
Taxes have been around for so long that many people think they've always existed, but the U.S. government only began collecting income tax in the mid-1800s. The cost of fighting the Civil War became extremely expensive and the costs were rising so quickly that President Lincoln instituted the first income tax in 1861. In fact, Lincoln paid taxes himself in the year 1864 as a way of encouraging all citizens to pay their share. Prior to that, the major sources of revenue for the government included taxes on specific items such as tobacco and property. Despite this early start, the current income tax system was not instituted until 1913.
2. Donald Duck was once used as a mascot for the income tax system.
In the 1940s, the income tax system was expanded to include all American citizens. Since taxes were originally levied on the rich alone, many middle class and lower class citizens were resistant and didn't file their taxes. To encourage support for the new expanded tax, the U.S. government requested that the Walt Disney company create two cartoons that showcased the income tax system in a favorable light. Both cartoons starred Donald Duck.
3. Taxpayers can choose from nearly 500 income tax forms and schedules.
One of the reasons filing income taxes seems to be a complicated process is because there are so many different forms and schedules available for use. The IRS website has a repository of 480 different forms that include documents for self-employed taxpayers, retirees, parents of dependent children, college students, and Social Security recipients.
4. Citizens have given over $1 billion to the Presidential Election Fund, partly via their income tax forms.
At the top of each Form 1040 is a small box that allows taxpayers to choose to donate $3 to the Presidential Election Fund. While many may ignore this option, others choose to donate every year. Since the option was instituted in the 1970s, more than $1 billion has been collected.
5. The IRS receives more than 130 million tax returns every year.
There are over 300 million citizens in America and those citizens file more than 130 million returns annually. To keep up with this increased workload, the IRS has instituted several options, including electronic filing and online programs.
It'll be April 15 before you know it! Learning a few fun tax facts may make this year's filing process a little easier to handle.