Tax Day – April 15, 2024

U.S.

Timeline
Importance
Observe
Insights

Still rifling through a pile of the past year’s receipts? Welcome to America’s annual financial headache. It’s Tax Day, April 15 — and the Internal Revenue Service’s patience has just run out. Unless you’re due for a hefty refund (or working as a highly-paid accountant), Tax Day doesn’t usually spark much joy. Although Form 1040 appears shorter nowadays, filing taxes remains way too complicated for most Americans to do alone. It wasn’t always this way. The IRS didn’t appear on the scene until 1862. That’s when the federal government began “to assess, levy, and collect taxes through its power to seize property and income.” Still struggling? You can always look into filing an extension to get some extra time.

Tax Day timeline

1797

First Estate Tax

The first estate tax is enacted to fund the U.S. Navy.

1861

When It All Started

Abraham Lincoln signs into law the first-ever income tax during the ongoing Civil War.

1921

Taxes on Goods

Sales taxes are first enacted in West Virginia.

1950s

United States Treasury

Individual income taxes become the primary source of revenue for the U.S. government.

Tax Day Media Coverage

Tax Day — KUTV (Salt Lake City, UT)

Tax Day — WRIC (Richmond, VA)

Tax Day — WTVD (Raleigh, NC)

Tax Day - Survey Results

Info sourced from a top Washington DC PR Firm:

SOME AMERICANS *ACTUALLY* ENJOY FILING THEIR TAXES

7% of Americans claim they enjoy filing their taxes. 9% say they absolutely hate filing their taxes, and 11% say filing their taxes stresses them out.

1 IN 5 AMERICANS USE TECHNOLOGY TO FILE THEIR TAXES

19% of Americans use a tax preparation program (such as TurboTax) to help them file their taxes. 6% of Americans say their spouse takes care of filing the taxes, and 11% hire an accountant to file their taxes.

HERE ARE THE WAYS AMERICANS SPEND THEIR TAX REFUNDS

#1: Pay off debt (27%)

#2: Save (24%)

#3: Treat myself (e.g. new shoes, clothes, dinner, etc.) (13%)

#4: Spend on necessities like toiletries, school lunches for children, etc. (11%)

#5: Spend on big purchases I really need, like a car repair (10%)

#6: Vacation (8%)

#7: Buy someone a gift (3%)

How to Observe Tax Day

Break out the 'income tax' cocktail
This is a real drink — basically a Bronx cocktail (gin, sweet vermouth, dry vermouth, and orange juice) with a splash of bitters, as a nod to the bittersweet nature of the day.
Host a tax potluck party
Friends don't let friends do taxes alone. Why not make a party of it instead? And as you work through all the forms, you can give awards for the most creative deductions or person with the biggest return coming their way.
Make a vow to start earlier next year
That way you'll have more time to spend the day doing laundry, watching TV, or hanging out with friends.

Why Tax Day is Important

It's a forced financial check-up
W-2s and 1099s. Banking statements and donation receipts. There's a lot of paperwork you need to pull together to be able to do your taxes (even if you have help). But once it's all there, you can see how much you made last year and where the money went.
One word: deductions
You start to see the different ways you can get money back — like mortgage interest, donations, and even unreimbursed job-related education. Once you figure out a strategy, you can start planning for the next tax year.
Money back
If you overpaid last year, you're due for a tax refund. If not, perhaps it's time to adjust your withholding (or estimated tax payments).