4 Taxes We Didn’t Have to Pay in the Past
Today Americans are taxed for so many things that even the IRS would have difficulty listing them completely. Due to these taxes, it is taking us longer to begin working just for ourselves. Click here to watch or read more information on IRS Back Taxes.
In fact, today there are many types of taxes that did not exist in the past. Here are 5 of them.
Health care Insurance Tax
While not actually listed at a “tax,” this one provision in the Health care bill will (beginning with 2011 tax returns/becoming mandatory in 2012) increase the amount of taxes you pay. If your employer pays all or part of your health care benefits, they must now include that amount as part of your salary on your W-2 Form. This will increase the amount of money that you “earned,” thereby increasing your tax burden.
1. Illegal Drug Tax
This is arguably one of the strangest taxes we have to pay. But it has its positives. The Illegal Drug tax is to prosecute drug dealers and other members of organized crime for drug offences like tax evasion etc even though they cannot be prosecuted for other crimes. The tax is part of the revamped Tax Code of 1986’s Money Laundering Act and you find it in your 1040.
The part in the IRS website that applies to this is where it states, “Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.”
2. Stolen Property, Bribery and Kickbacks Tax
Believe it or not, if you stole something it is considered ‘self-employment activity’ and is taxable under law. The same applies if you received a bribe and kickback. These must be reported as income in your 1040 unless you return the stolen goods or refund the bribe and kickback to the giver within the same tax year.
“Line 21, Form 1040, Schedule C” is reserved for “kickbacks, side commissions, push money, or similar payments.”
3. Airline and Airport Taxes
This tax is something more common. Nowadays, traveling by air costs not just the price of the air ticket. A whole host of taxes are added in also. In addition, concerns for the environmental and safety measures against terrorist attacks (since 9/11) have added more such taxes.
Here’s a list of some of the taxes:
9/11 security fee (tax) $2.50 per “enplanement”
Ticket excise tax – 7.5% on domestic flights
Flight segment tax – $3.70 within the U.S.
Arrival and departure fees (taxes) $8.00 per flight / US
And for international flight fees (taxes):
Departure and arrival taxes – $16.10
Agricultural inspection fee(tax) – $6.00 on arrival
Customs user fee(tax) – $5.50 on arrival
Immigration user fee (tax)- $7.00 on arrival
In addition, nearly every airport in the US adds a “Passenger Facility Tax” of $4.50.
4. Nobel Peace (or Pulitzer) Prize Tax
If you are a Nobel Peace Prize, Pulitzer Prize or any other prize winner, don’t forget to declare your winnings as taxable income. To avoid paying taxes, you need to donate your winnings to charity. But even then, you have to fulfill certain requirements and most winners do not qualify to be completely exempted from taxes.
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Law Offices of Darrin T. Mish, P.A.: Tax Attorney