How many of these hidden taxes have you paid without paying attention?
The American Institute of CPAs compiled a list of common taxes most people aren’t aware of, which factor into a tax calculator tool they’re featuring. Here’s their list…
1. Medicare Tax
The amount withheld by your employer from your paycheck that helps cover the cost of running the Medicare program, the federal system of health insurance for people over the age of 65.
2. Self-Employment Tax
A Social Security and Medicare tax for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners.
3. Alternative Minimum Tax
A mechanism created to ensure that individuals pay at least some minimum amount of federal income tax, regardless of deductions, credits or exemptions.
4. Electricity or Natural Gas Tax
A tax collected by energy suppliers based on consumption during the billing period.
5. Cable Tax
Tax imposed on cable television subscribers.
6. Landline Phone Tax
Federal and state tax associated with use of a fixed phone line.
7. Cell Phone Tax
Federal and state tax imposed on mobile telephone users.
8. State Gasoline Tax
A tax on every gallon of gasoline sold.
9. Cigarette Tax
Tax on cigarette use.
10. State Alcohol Tax
Tax imposed on the purchase of beer, wine and spirits.
There’s not much you can do about these, since they’re part of the work, services, or products you’re taxed on. But on the bright side, there are also some deductions you probably don’t know about. Check out Tax Hacks 2012: 8 Easy-to-Miss Deductions.