With the arrival of Internal Revenue Service forms in many mailboxes this week, it’s once again everyone’s favorite season – tax season.
Whether you are one of the millions of North Carolinians who look forward to filing taxes and thus getting a tax return, or you are one of the millions who ends up cutting Uncle Sam a check every April, we all can agree that tax season can be complicated.
For those who have questions, Pisgah Legal Services is partnering with The Mountain Retreat and Learning Center to offer a free tax clinic at 4 p.m. on Monday, Feb. 12. The Mountain is located at 3872 Dillard Road in Highlands.
Volunteer tax preparers will share their knowledge of the filing system and help attendees make sure they are filing properly.
Income taxation in the United States has a long and colorful history dating back to the Civil War when a federal income tax was put in place to fund war efforts. That tax was repealed in 1872, and ultimately replaced by the “Tariff Act of 1892.”
In 1913 the US Congress passed the 16th amendment to the Constitution, which allowed for a permanent Federal income tax to be put in place. The tax rate for 1913 was 1 percent for anyone making over $3,000 and 6 percent for anyone making over $500,000.
By 1918 the top tax rate had been raised to 77 percent for anyone with income over $1 million. During World War II, the highest tax rate reached 94 percent in 1944. Tax rates have steadily decreased for high earners since the 1950’s.
Nobody likes paying taxes, but it’s part of life that a famous Founding Father once equated to death in terms of inevitability.
Whether you use your W-2 to file a 1040EZ, a 1099, or any of the other numbered forms provided by the IRS, its time to get your financial affairs in order for another year. Kudos to the volunteers at Pisgah Legal Services for lending their expertise for the tax clinic and to The Mountain for hosting such a worthwhile undertaking.