- Days left
Tax Freedom Day falls on April 23 this year, according to the Tax Foundation. Each year the Tax Foundation calculates how many days Americans must work to pay all of their taxes, assuming all of your wages would go to pay taxes first. Then the remaining days of the year, all of your wages are assumed to be kept by you.

This is just one measure of the tax burden placed upon Americans, and it's based upon data released by the Congressional Budget Office. I don't know about you, but I do feel overburdened by taxes, especially when I have little say in how my tax money is spent.

And here's how the days are broken down: This year Americans must work 74 days to pay for all their federal taxes, and an additional 39 days to pay all state and local taxes. In comparison, Americans work 60 days to pay housing expenses and 35 days to pay clothing expenses. Fifty days are worked to pay for health care, and 29 days are worked to pay for transportation costs.

I like this analysis because of the perspective it provides. Working 74 days to pay federal taxes is ridiculous, when you see how much greater that is than any other expense that we have. It's clear to me that government in America has gotten out of control, at all levels. Americans should be able to keep more of their own money, and decide for themselves how it is spent, rather than spending a total of 113 days working just to have that money taken away from them and spent as someone else sees fit.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Increase your money and finance knowledge from home

Basics Of The Stock Market

Stock Market 101 - everything you need to know but were afraid to ask!

View Course »

Managing your Portfolio

Keeping your portfolio and financial life fit!

View Course »

TurboTax Articles

What is IRS Form 8824: Like-Kind Exchange

Ordinarily, when you sell something for more than what you paid to get it, you have a capital gain; when you sell it for less than what you paid, you have a capital loss. Both can affect your taxes. But if you immediately buy a similar property to replace the one you sold, the tax code calls that a "like-kind exchange," and it lets you delay some or all of the tax effects. The Internal Revenue Service (IRS) uses Form 8824 for like-kind exchanges.

What are ABLE Accounts? Tax Benefits Explained

Achieving a Better Life Experience (ABLE) accounts allow the families of disabled young people to set aside money for their care in a way that earns special tax benefits. ABLE accounts work much like the so-called 529 accounts that families can use to save money for education; in fact, an ABLE account is really a special kind of 529.

What is IRS Form 8829: Expenses for Business Use of Your Home

One of the many benefits of working at home is that you can deduct legitimate expenses from your taxes. The downside is that since home office tax deductions are so easily abused, the Internal Revenue Service (IRS) tends to scrutinize them more closely than other parts of your tax return. However, if you are able to substantiate your home office deductions, you shouldn't be afraid to claim them. IRS Form 8829 helps you determine what you can and cannot claim.

What is IRS Form 8859: Carryforward of D.C. First-Time Homebuyer Credit

Form 8859 is a tax form that will never be used by the majority of taxpayers. However, if you live in the District of Columbia (D.C.), it could be the key to saving thousands of dollars on your taxes. While many first-time home purchasers in D.C. are entitled to a federal tax credit, Form 8859 calculates the amount of carry-forward credit you can use in future years, not the amount of your initial tax credit.

What is IRS Form 8379: Injured Spouse Allocation

The Internal Revenue Service (IRS) has the power to seize income tax refunds when a taxpayer owes certain debts, such as unpaid taxes or overdue child support. Sometimes, a married couple's joint tax refund will be seized because of a debt for which only one spouse is responsible. When that happens, the other spouse is said to be "injured" and can file Form 8379 to get at least some of the refund.

Add a Comment

*0 / 3000 Character Maximum