Income taxes are taxes governments levy on money earned by businesses and individuals. What’s more, they’re also many countries’ largest source of revenue: In the US, individual income taxes made up nearly half of the federal government’s revenue in 2024, while corporate income taxes added another 11% .
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For the 2022 tax year, prank-playing creative studio MSCHF created a dating simulation game that helped taxpayers prepare their income taxes. In “Tax Heaven 3000,” players interact with anime love interest Iris (it’s like IRS), and run through a series of questions that complete their taxes. Iris also warns the player to stay away from tax-preparation companies like TurboTax. Learn about the tax dating game in this article.
While wages and salaries are taxed progressively at rates up to 37%, long-term investments are taxed at lower rates: 0%, 15%, or 20%. For wealthy individuals like Buffett, whose income mainly comes from investments, this means paying a lower effective tax rate than someone earning a salary.
The IRS arrested top mob bosses during Prohibition after the Supreme Court ruled illegally-made income could be taxed. The IRS’s biggest catch was Al Capone, who was charged with tax evasion and sentenced to 11 years in prison. But Capone wasn’t the only bootlegger the IRS nabbed for tax evasion during this era. This resource details an interesting moment in the IRS’s history.
A tax deductible is an expense that a taxpayer or business can subtract from adjusted gross income, reducing their taxable income and therefore reducing the amount of taxes owed. Most Americans take what’s called the standard deduction. Understand how they work, the pros and cons, and more details in this comprehensive overview article.
One of the Internal Revenue Service’s jobs is enforcing the Internal Revenue Code. The Internal Revenue Code is Title 26 of the US Code, which is the official codification of federal statutes in the US. Title 26, also known as the IRS code or IRS tax code, lists the federal tax laws of the United States. Learn more about the Internal Revenue Code here.
The Commissioner of Internal Revenue was created in 1862 to take over federal tax collection after the President enacted a temporary income tax. That agency eventually became today’s Internal Revenue Service. This timeline highlights the IRS’s history, including the introduction of standard deductions and the digitization of the filing process. Brush up on the IRS’ history with this resource.
This podcast episode takes a lighthearted dive into the history of the IRS, from when the agency was founded and called the Bureau of Internal Revenue, to that one time it had to enforce a national ban on alcohol. Want to learn more? Listen to the podcast episode.
This video takes a deep dive into what happens if you never pay your taxes. Hint: it's nothing good. To learn about each step after you miss tax day, watch the video.
While some people cheat on their taxes, others evade paying them altogether. This article details methods the Internal Revenue Service uses to catch these people in the act, such as scanning social media, computer data analysis, and whistleblowers. Read it here.
Tax laws are catching up to modern freelancers. Starting with income made in 2024, gig workers will have to report the earnings they receive via apps like Venmo and PayPal differently. The main change: workers will have to detail all app earnings above $5,000 (previously, it was $20,000), and that’ll eventually drop to $600. This guide explains what that’ll mean and answers common questions about the new rule.
The United States is home to more than 33 million businesses, the vast majority of which are small businesses, with millions being created (and others closing shop) every year. These businesses often rely on loans, provide the goods and services that keep the economy flowing, and sometimes even grow large enough to enter public markets or provide private investment opportunities. Explore key topics central to business and finance, from the role of the Federal Reserve to how initial public offerings work, how millions of American students finance higher education, and more.