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100 Years of the Tax Return

100 YEARS OF THE TAX RETURN With Tax Day looming in the near future, Liberty Tax® brings you a brief history of the Federal Income Tax and Tax Return. 147,891,000 110,471,000 $2,803 Average refund 25,000 119,589,000 Total individual Total refunds 2012 income tax returns processed in 2012 Total e-filings processed in 2012 HISTORY OF INCOME TAX 1862 President Abraham Lincoln and Congress creates the office of Commissioner of the IRS, creating a temporary income to pay for the Civil War. Initial rate in 1862: 3% on income over $800. 1864 Income tax rate increased to: 710% on $10,000+ F0-=$1,000 7.5% on $5,000 - $10,000 AMERICAN HISTORY 5% on $600 - $5,000 1913 The start of the tax return 1900 U.S. population reaches 75 million The Sixteenth Amendment establishes the federal First Form 1040 income tax system we know today was four pages 1903 First World Series $15,000 $50,502 .... Average household income in 1913 Average household income in 2012 1914 World War I begins 1915 Congressmen complain about the complexity of the Form 1040 1917 The shorter, 1-page Form 1040A is U.S. enters war created for individuals with a taxable income less than $100,000 1920 1920 19th Amendment is passed, granting women the right to vote Multiple states adopt income taxes on both individuals and corporations 1929 Wall Street crashes, triggering the Great Depression 1921 Congress nearly replaces the federal income tax with a national sales tax 1932 Amelia Earhart flies across Atlantic Ocean 1941 President Roosevelt signs the Revenue Act of 1941, increasing the highest estate tax rate to 77% 1939 World War II begins 1969 Tax Reform Act of 1969 Nearly eliminates taxes for the impoverished 1941 Japan attacks Pearl Harbor U.S. enters World War || Nixon also reduces tax rates for the richest Americans from 70% to 50% 1981 1945 Atomic bomb dropped on Hiroshima and Nagasaki The first computerized tax software was invented by John Hewitt and his father, Dan 1954 Brown v. Board of Education 1958 NASA formed NASA President Nixon's Economic Recovery Tax Act seeks the nation's reliance on income tax reduce tax rates and reduce 1982 1961 Vietnam War officially begins Form 1040EZ, the simplest tax form yet, is created for single and joint filers with no dependents 1963 Martin Luther King, Jr. delivers his "I have a dream' speech Limited to taxpayers with less than $100.000 in taxable income 1963 President Kennedy assassinated 1997 1964 Civil Rights Act of 1964 is passed Liberty Tax Service® officially begins operations in Canada. 1967 First Super Bowl 2001 1969 President Bush signs the Economic Neil Armstrong walks on the Moon Growth and Tax Reconciliation Act Reduces taxes by $1.3 TRILLION 1975 Bill Gates founds Microsoft over the following 10 years The Act is extended in 2011 1989 Fall of the Berlin Wall in Germany 2010 Income tax rates have changed 34 = 97 IN 1991 Cold War ends TIMES YEARS 2012 2001 September 11th terrorist attacks; Invasion of Afghanistan and Iraq Liberty Tax Service becomes a publicly traded company, ringing the opening bell at NASDAQ in New York 2005 Hurricane Katrina devastates the Southeast Income tax rate on taxable income: 2008 $388,350+ Global financial crisis begins 2009 33% $178,650 - $388,350 $787 billion stimulus package approved 2012 World's Highest Skydive! Daredevil makes $85,650 - $178,650 record-breaking supersonic jump $35,350 - $85,650 $8,700 - $35,350 $0 - $8,700 SOURCES: timeline.htm %20Present.htm 2013 IRS delays tax return processing to start on Jan. 30th LIBERTY TAX SERVICE

100 Years of the Tax Return

shared by lizmcmedia on Apr 01
Did you know there were 110,471,000 tax returns filed in 2012? Check out these tax return stats via Liberty Tax!


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