Everything Old Is New Again
comprised of the following taxes:
The Federal Insurance Contributions Act (FICA)
Famous for acting
Tax bill: $7million
Penalty: 3 years in prison
Wesley Snipes
allowed taxpayers to subtract $4,050 from their taxable income for each dependent they claimed
Personal exemptions
Offers up to $2,000 per qualifying dependent child 16 or younger at the end of the calendar year.
Child tax credit
One portion of the FICA taxes withheld from employee wages. In 2018, employees were required to pay a 6.2% (with their employer matching that payment) on income up to $128,400.
Social Security tax
Famous for country music
Tax Bill: $16.7million
Penalty: avoided prison by blaming his accounting firm and paying off the IRS by releasing a double album titled “The IRS Tapes”
Willie Nelson
If you relocated for a new job last year, forget about this for your 2018 taxes. The deduction has been eliminated for virtually all workers. only applies (now) to military members who are required to move.
Moving expenses
Tax credit specifically designed to benefit working people with low incomes.
Earned income credit
One portion of the FICA taxes withheld from employee wages. 1.45% of every dollar of wages earned.
Medicare
Famous for business
Tax Bill: $7.1 million
Penalty: the Queen of mean served 21 months of a 4 year sentence. She famously stated “We don’t pay taxes. Only the little people pay taxes.”
Leona Helmsley
On this year's tax forms, capped at $10,000.
State and local tax deductions
Maximum credit equals 100% of the first $2,000 of qualified post-secondary education expenses plus 25% of the next $2,000
Qualified expenses include tuition, mandatory enrollment fees, and course materials including books for the first 4 years of undergraduate college
American Opportunity Credit
One portion of the FICA taxes withheld from employee wages. Levied at .9 percent when the employee earns over $200K.
Medicare Surtax
Famous for reality TV
Tax Bill: $2million
Penalty: first ever winner of survivor spent more than 4 years in prison split between two stints (the second of which happened when he failed to pay the IRS after serving his first term)
Richard Hatch
Unreimbursed work expenses, Tax preparation fees, hobby losses and a variety of other expenses...
Miscellaneous itemized deductions
Equals 20% of up to $10,000 of qualified education expenses, with a maximum credit amount of $2,000. You can use this credit to help offset costs for undergraduate study when you’re carrying a limited course load or after the first four, or for graduate school or miscellaneous courses.
Lifetime Learning Credit
a multitude of taxes that are paid by the employer, and in some cases, withheld from an employee's paycheck. The employer then remits these taxes to the appropriate tax authority.
Payroll taxes
Famous for Baseball
Tax Bill: $410 K
Penalty: base balls’ career hits leader served 5 months in prison in Illinois.
Pete Rose
Only interest on loans used to make home improvements
Deduction for home equity loan interest
Can get you 20% to 35% of up to $3,000 of child care and similar costs for a child under 13, an incapacitated spouse or parent, or another dependent so that you can work (and up to $6,000 of expenses for two or more dependents).
Child and Dependent Care Credit