- Days left

Celebrity Tax Troubles: What You Can Learn from the Stars

×
handcuffs on an American 1040 income tax form indicating tax fraud or evasion
Vince Clements/Alamy
April 15 is just around the corner, and you've put off doing your taxes until now, you may want to read up on the latest tax changes and last-minute filing tips. That's key if you're keen on keeping out of the sights of the Internal Revenue Service. And if you don't, you just might wind up like too many celebrities who thought IRS laws didn't apply to them.

A review of famous names who've made the news in recent years for owing the IRS turns up a few patterns. Tax scofflaw celebrities aren't usually the sort of figures known as "A-Listers" -- and if they are, they tend to be somewhere past their prime. Claims of financial mismanagement often figure into celebrities' financial misfortunes. There's often a significant amount of marital discord behind the fiscal issues as well.

A USA Today report headlined "Celebrities are often in debt to the tax man" was somewhat sympathetic to the plight of famous tax delinquents, explaining that "celebrities and entertainers -- unlike most taxpayers -- often have huge incomes that vary wildly from year to year -- an easy recipe for tax trouble.

Here's a roundup of some of the more infamous celebrity tax dodgers.


Increase your money and finance knowledge from home

Timing Your Spending

How to pay less by changing when you purchase.

View Course »

Managing your Portfolio

Keeping your portfolio and financial life fit!

View Course »

TurboTax Articles

What Are the Tax Penalties for Smokers?

Starting in 2014, the Individual Shared Responsibility provision of the Affordable Care Act made you responsible for having minimum essential coverage, or MEC, in health insurance. Otherwise, you need to be eligible for a health care exemption, or you could pay a penalty when filing your income tax return. This requirement for minimum essential coverage 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.

5 Steps to Navigate the Healthcare Marketplaces

To navigate the Health Insurance Marketplace, you have to know what you want from a health plan. Have your previous plan handy to make comparisons, as well as household and income information. If this is your first health plan, be aware of your needs and know your tax situation. Eligibility depends on the size of your family and combined income from all sources.

What Is Form 8941: Credit for Small Employer Health Insurance Premiums

Small business owners who subsidize the cost of employee health insurance premiums may be able to get some of that money back by claiming the credit for small employer health insurance premiums on their taxes. Some of the eligibility requirements, however, limit the number of people a business can employ and the average annual wages they earn. Qualifying as a small employer can reduce your tax bill by the amount of the credit you report on Form 8941.

What Is Form 8911: Alternative Fuel Vehicle Refueling Property Credit

In light of rising gasoline prices and environmental concerns, consumers have become more receptive to buying cars and trucks that run on types of fuel other than gasoline. The U.S. government introduced a tax incentive to encourage the installation of facilities to store or dispense alternative fuels in 1992. That incentive has evolved into a tax credit that also applies to equipment that recharges electric cars. If you equipped your home or business to accommodate alternative fuel vehicles, you may be able to use Form 8911: Alternative Fuel Vehicle Refueling Property Credit to reduce your federal tax obligation.

What Is Form 8885: Health Coverage Tax Credit

The health coverage tax credit is a program in place for tax years from 2002 to 2013 to help eligible individuals and families by paying a portion of premiums for qualified health insurance programs. Since the legislation authorizing the credit expired in January 2014, tax returns filed in 2014 for the 2013 tax year represent the last time eligible taxpayers can claim the credit.

Add a Comment

*0 / 3000 Character Maximum

133 Comments

Filter by:
realdealnyc

Lauryn Hill's album was LOUSY - LAU-Z.

No wonder she went "underground".

April 15 2014 at 12:38 AM Report abuse rate up rate down Reply
punnster

Do those Hollywooders is live in Lala land so much that they are totally clueless as to the realities of life?

April 14 2014 at 11:46 PM Report abuse rate up rate down Reply
terrace

I understand these people do what they do but still no one is bring the irs to justice they screw over so many people each year and get away with it the irs ranks up there with city officials suck as mayors ,governors' ,city council,police there all thieves !!!!

April 14 2014 at 11:18 PM Report abuse rate up rate down Reply
plewdawg

ALL were liberals and majority black. are they dumb or just criminals. As I said, they are liberal democrats.

April 14 2014 at 11:13 PM Report abuse +1 rate up rate down Reply
xpphil12

People should pay their taxes.But sometimes those who attack the 1% for not paying enough taxes, pay no taxes themselves.

April 14 2014 at 8:11 PM Report abuse rate up rate down Reply
prnyl

They all are delusional that they think the celebrity aspect works to keep them out of jail- above the law and lawyered up to boot!

April 14 2014 at 7:51 PM Report abuse rate up rate down Reply
Bobby

Anyone else notice the percentage of "types" (ghetto wannabe's) of people that try to evade paying taxes? Funny... Most of them also talk about how the rich should pay more...! They should make them pay what they owe and fine them double!

April 14 2014 at 7:46 PM Report abuse -1 rate up rate down Reply
Tom

I pay my taxes. They should pay theirs in full or go to jail even if they lose everything.

April 14 2014 at 7:24 PM Report abuse +2 rate up rate down Reply
jpfmtka

Instead of "stars" insert "LOSERS".

April 14 2014 at 6:49 PM Report abuse +2 rate up rate down Reply
fwlrcj

what I don't understand is the ones who are making a lot of money who cheat on the income tax when they can well afford to pay the taxes and be hurt by it.

April 14 2014 at 6:29 PM Report abuse +1 rate up rate down Reply