- Days left
Happy Tax Freedom Day! It has taken us just 99 days to get here, but today, Americans will celebrate Tax Freedom Day. Tax Freedom Day marks the day that taxpayers have earned enough money to pay their taxes for the year. This year, US taxpayers have to work nearly 100 days before they have earned enough money to pay for this year's federal, state, and local tax obligations.

The idea of Tax Freedom Day was conceived in 1948 by Florida businessman Dallas Hostetler. Hostetler eventually transferred the trademarked day to the Tax Foundation, which has calculated Tax Freedom Day for various nations and the states ever since.


To arrive at the calculation, every tax dollar in the US received as income is counted. This includes dollars other than the personal income tax, even though the personal income tax is the largest single contributor to the revenues. Personal income taxes, including federal, state and local taxes, are a whopping one-third of the calculation, requiring 32 days' work to pay off. Payroll taxes take another 25 days' work; sales and excise taxes take 15 days to pay off; corporate income taxes take 8 days; and property taxes take 12. It will take an additional 6 days to pay other taxes, including motor vehicle license taxes and severance taxes, and about half a day to pay off estate taxes.

This year's Tax Freedom Day arrived one day later than last year, but more than two weeks earlier than in 2007. It's still better than the year 2000, when Tax Freedom Day didn't roll around until May 1. Tax cuts over the past decade have helped roll back the date ever since -- we're paying fewer taxes these days than before.

Of course, don't get too excited: Tax Freedom Day does not count the deficit. If we were required to factor that in, too, we'd be working more than another month. An additional 38 days would be required to pay off our taxes and
obligations if we added in the federal deficit.

I'm celebrating by going to work. You?

Increase your money and finance knowledge from home

How to Avoid Financial Scams

Avoid getting duped by financial scams.

View Course »

Introduction to Preferred Shares

Learn the difference between preferred and common shares.

View Course »

TurboTax Articles

What is Form 1095-B: Health Coverage

Form 1095-B is a health insurance tax form which reports the type of coverage you have, dependents covered by your insurance policy, and the period of coverage for the prior year. This form is used to verify on your tax return that you and your dependents have at least minimum qualifying health insurance coverage. If you had a break in health care coverage for the tax year, you may have to pay an individual shared responsibility payment, also known as a tax penalty.

What is Form 1095-A: Health Insurance Marketplace Statement

If you bought health insurance through one of the Health Care Exchanges, also known as Marketplaces, you will receive a Form 1095-A which provides information about your insurance policy, your premiums (the cost you pay for insurance) and the people in your household covered by the policy.

What Are the Tax Penalties for Smokers?

This requirement for minimum essential coverage (MEC) under the Affordable Care Act applies to smokers and nonsmokers alike. If you're not covered by an employer's health plan and are a smoker, you can go to the health care marketplace to find MEC. If you're still unable to comply, you may have a penalty applied.

Tax Planning for Beginners

Your tax refund is based on how much tax you pay in excess of the tax you owe. Basic tax planning strategies aimed at reducing the amount of your taxable income may increase the gap and thus your refund. In some cases, these strategies benefit you in other ways, offsetting future costs for health care or providing for retirement. Though some aspects of tax law can be complicated, even a beginner can focus on taxable income reduction.

Affordable Care Act (Obamacare) Survival Guide For ALEs

A key feature of the Affordable Care Act (also known as Obamacare) is the way in which responsibility for affordable health care coverage is shared between stakeholders. Companies that employ 50 or more people may be considered "applicable large employers" or ALEs under the Affordable Care Act. ALEs have specific provisions when it comes to providing health insurance, and these provisions are being phased in from larger to smaller companies over time. The Internal Revenue Service (IRS) notes that less than 5% of employers are considered ALEs.

Add a Comment

*0 / 3000 Character Maximum