Being a celebrity does not relieve you from tax responsibilities. That’s the lesson that some in Hollywood have learned the hard way.
Willfully failing to file tax returns and pay taxes (tax evasion) can be a criminal activity that results in jail time, as several celebrities can attest. Examples:
Some celebrities run up big tax tabs that continue to accrue interest and penalties until paid. While they may escape criminal penalties, they can be subject to a variety of civil sanctions, including liens on their homes, frozen bank accounts, and, even worse, bad press! Examples:
The federal child tax credit of up to $1,000 per child under age 17 can only be claimed by those with income below set limits. States showing the biggest average tax savings for in 2008 because of the child tax credit, were Utah, Idaho, Wyoming, Alaska and Nebraska. States showing the lowest average tax savings from the child tax credit were D.C., Florida, New York, Massachusetts and New Jersey.
Source: Tax FoundationView all factoids