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.
Wisconsin was the first US state to impose a state income tax, close in time to when the federal income tax went into effect. Many states followed suit, but nine states to this day still don’t levy wage-related taxes. Now, more states are considering switching to a flat tax, a single percentage that isn’t adjusted based on taxpayer’s income. Read more about state taxes in this explainer.
The Internal Revenue Service has audited less than 1% of all individual tax returns. If you’re still worried about being audited, know that some people are more likely to be audited than others, such as people who make a lot of money and those who take large charitable deductions. To learn more, check out this list of 18 audit red flags.
The Internal Revenue Service is responsible for determining, assessing, and collecting internal revenue in the US. This article not only outlines how the IRS gets it all done, but also details the history of the IRS and answers frequently asked questions about the agency. Read it here.
Tax avoidance isn’t the same as tax evasion. The tax code is full of legal loopholes accountants can use to lighten their clients’ tax burden. NPR shares their (and listeners’) favorite sections of the tax code in this podcast. For instance, large estates can be counted as farms and some cars count as heavy machinery. Listen to this podcast to learn about tax loopholes that range from surprising to legitimately useful.
From Al Capone’s tax evasion to corruption and bribery within the IRS, the government agency has had its fair share of scandals. This article details many of them, outlining corruption that reveals this seemingly boring agency as anything but. To learn more, read the full article here.
From July 1 to July 7, 2024, Pew Research Center conducted a survey of 9,424 adults to gauge the public’s attitudes about the federal government, including government agencies and departments. To see the survey’s findings, including a ranking of 16 well-known federal agencies by popularity, click here.
First published in 1926, the US Code is the official codification of federal statutes in the US. Title 26 of the US Code, for instance, lists all of the federal tax laws of the United States. A new edition is published every six years. Learn why the United States Code matters with this explainer.
The US government made nearly half of its total revenue last year from individual income taxes, and this year is shaping up to be similar. The US makes money from a variety of other sources, including Medicare taxes and corporate income taxes. But the deficit continues to grow: The US spent $1.82T more than it made in fiscal 2024. To learn more, check out the federal government’s revenue counter.
In the US, many people think of the IRS as the “taxman”—but the Beatles song is actually about the tax structure in the UK at the time. George Harrison wrote the song when he realized that even though the Beatles had started earning money, “we were actually giving most of it away in taxes,” as he wrote in his autobiography. Learn more about the song here.
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.