Somehow we seemed to have blinked and it's already April. Here on the east coast mother nature is playing some sick jokes on us but we can see spring on the horizon. Of course in this industry April doesn't just signal spring, it also signals Tax Day! This year you have a whole 3 extra days to file those taxes. Some fun facts on why are below.
Tax Day 2016
Sure 3 days doesn't seem like a long time but for all of those people who wait until the last minute on their taxes it can feel like a gift! Most people probably don't even know that the date is pushed back this year, after all Tax Day is always on the 15th right? Wrong! Through 2018 Tax Day will not fall on the 15th of April as it usually does.
Emancipation Day- This is a holiday that is celebrated every year in Washington DC on the weekday closest to April 16th. As you've probably already put together, that's April 15th this year. When this happens tax returns are due the following Monday. When April 15th falls on a Saturday or a Sunday (as it will through 2018) tax returns are due the following Tuesday.
Here are some more tax related fun facts!
- Johnstown, Pennsylvania was devastated by a flood that killed nearly 2,000 people in the late 19th century, and in 1936 another flood damaged the town. That led to the state of Pennsylvania passing a tax on alcohol, the proceeds of which would be used to rebuild the city. By 1942, enough money was raised to rebuild Johnstown, yet the tax exists to this day, and brings in around $200 million a year for Pennsylvania.
- Maine has a special tax on blueberries, a valuable state resource.
Related: The Tax Advantages of Life Insurance
- The IRS taxes stolen property. The 1040 instructions say that you should report it as stolen property. However, doing that would be self-incrimination, from which we are protected by the Constitution; therefore, one has the option of reporting it as "other income".
- The federal tax code was 400 pages in 1913. In 2010 it was 70,000 pages.
Make sure your clients know when Tax Day is this year!