You’re sure you know about everything you’ve been paying for, right? If you haven’t looked closely at the bottom of those receipts, you may have overlooked the fine print. In a few unexpected places, the fine print may also include some taxes you didn’t know you were paying.
- Self-Employment Tax – Social Security and Medicare tax for individuals who work for themselves. It is the same as the Social Security and Medicare taxes withheld from the pay of most wage earners.
- Alternative Minimum Tax – A system of ensuring everyone pays a minimum amount of federal income tax, regardless of credits, deductions and exemptions.
- Electricity or Natural Gas Tax – A tax collected by the energy suppliers based on the amount consumed during the billing cycle.
- Cable Tax – A tax imposed on cable television.
- Landline Phone Tax – Federal and state tax charged on fixed phone lines.
- Cell Phone Tax – Federal and state tax imposed on cell phone users.
- State Gasoline Tax – A tax on each gallon of gasoline sold.
- Cigarette Tax – A tax on each purchase of cigarettes.
- State Alcohol Tax – Tax imposed on the purchase of beer, wine and spirits.
It’s difficult to get a grip on your true tax burden, with taxes being scattered through so many different areas. There are tax calculators online that can help you compute a rough idea of this figure. It’s a good idea to try to stay on top of your tax liability throughout the year. Contact your accountant today to find out more.