There is a season for everything, and this season is Tax Season! The IRC is over 80,000 pages long. So, here are some of my favorite and weirdest things found in the tax code.
Federal Tax Deductions and Loopholes
The IRS Will Give You a Tax Break for Being Blind—But Not Deaf
If you’re legally blind, you qualify for a higher standard deduction—about $1,850 extra for singles. But not if you are deaf. Why? I have two guesses…
The IRS believes that being blind is more expensive but hearing loss is free?
Maybe the government just likes blind people more than deaf people?
Want to Pay $0 in Taxes? Just Donate Your Entire Paycheck to the National Debt1
If you are tired of paying taxes. There is a completely legal way to no longer pay any. You just donate your entire paycheck to the U.S. government. It is used to pay down the national debt. Will it make a difference? Probably not. But at least you’ll have zero taxable income!
The Social Security Tax Boomerang2
You paid taxes on your income for decades. Then you retire. Now, depending on your income, the IRS taxes up to 85% of your Social Security benefits. So, you are paying taxes on taxes. It’s like compounding interest in reverse.
Leverage your kids so you don't have to pay taxes3
You are probably aware of the Child Tax Credit? It’s worth up to $2,000 per child, assuming your income isn’t too high. If your income is too high, you don’t get this tax credit. The IRS assumes you can afford full-price kids. If you qualify for this tax credit, you could also leverage it to not pay any taxes. Just keep having kids until you have enough credits to offset your tax liability! For example, if your tax bill is $20,000 you just need to have 10 kids (20000/2000=10) and you won’t have to pay any taxes!
Clarinet Lessons as a Medical Expense4
This one was new to me. The IRS has permitted clarinet lessons as a deductible medical expense. Why? If recommended by a doctor to correct a child's overbite, it has qualified as medical treatment. So, if your kid’s dental health depends on jazz, you might get a tax break.
Whaling Boat Repair Deduction5
If you own a whaling boat, you can deduct $10,000 per year for repairs. Be careful with this one though. Even though the deduction is legal, whaling is not. It is banned in the U.S., except for certain Indigenous American tribes.
Hot Air Balloon Taxation Nuance6
This one is specific to Kansas. If you ever climb in a hot air balloon in Kansas, make sure it goes somewhere. Why? Tethered hot air balloon rides are taxed as an amusement activity at 6.5% sales tax. But untethered, free-flying hot air balloons are classified as transportation and exempt from sales tax.
Final Thoughts
Federal tax rules sometimes make no sense—why whaling boats and clarinets? Who knows!
Kansas tax laws prove that even something as simple as hot air ballooning can become a tax headache.
Whether you're looking for tax loopholes or just trying to survive tax season, always read the fine print.
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