Sophomore accounting major
This weekend, I finally started my first tax return. After I finished, I think I realized why Albert Einstein said, “The hardest thing in the world to understand is the income tax.” I also was reminded of Benjamin Franklin’s thought-provoking claim that life’s only certainties are death and taxes.
Franklin was right — taxes will be in our lives until we die (and you can be taxed after death, too). And if my experience is any indicator, I will look forward to April a whole lot less than I used to.
When I sat down to do my taxes, I knew I was in a better position than many. First, both my parents graduated from this university with degrees in accounting, so they could probably help me overcome any difficulties I encountered. Second, I am an accounting major and familiar with the general format of a Form 1040 tax return.
Lastly, I did not earn much income at my part-time job and am a dependent of my parents, both of which simplify a tax return. I expected to get back my withheld federal income tax and be done in an hour or two.
I was horribly disappointed. The process took the better part of two days, required major assistance from my parents and was incredibly frustrating. Because a stock in my name was sold for $16, I was required to look up the data for and fill out a Schedule D and a Form 8949. I also had to find which of the stocks had to be reported separately. For these concerns, I resorted to asking my parents for help.
They, too, had some difficulty discerning what to do. (They have spent more than a week on their own taxes and have found it very difficult). The state and local government forms were no better — and they kept more money than the IRS did.
Supposedly, I will receive a full refund of my federal income tax. However, the process gave me some important insights.
First, if you make less than $57,000, you can file online for free through private companies in partnership with the IRS. Also, be sure to have all of your W-2s and other financial paperwork, take breaks and double-check all of your data.
I noticed this process must place serious burdens on the most vulnerable of our society. Their returns are surely more complicated than mine, as they often have children and other deductions. If they cannot afford a tax preparer, they may miss out on essential deductions or even fail to pay the proper tax and end up in debt to the IRS.
After doing my taxes, I researched the tax system. I found the tax code consists of 75,000 pages and thousands of deductions and loopholes. Seventy-five thousand pages? Myriad 1040s and paperwork for all Americans? It is no wonder Dr. Dre said “The only two things that scare me are God and the IRS.”
Having such a complicated, corrupt system fosters mistrust of the government and the IRS; more importantly, it creates an ineffective system that makes it difficult for citizens to claim their own money. A simpler tax code would remove burdens off the shoulders of taxpayers and allow the federal government to collect the money it needs. Instead of having to deduct so many things, people should pay a lower tax rate.
One day, Americans will hopefully have a simple tax return and code. In the meantime, I hope everyone learns how to file their tax returns. It is an important skill, and for college students about to enter the workforce, it is a necessary one.
Matt Dragonette is a sophomore accounting major. He can be reached at mdragonette9@yahoo.com.
