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Where your federal taxes went, are going

February 5, 2010

As you fill out your tax return this filing season, you might find yourself wondering just where is that money you forwarded to Uncle Sam via payroll withholding going?

If you end up owing even more once your Form 1040 calculations are complete, the question is even more pressing. 

Well, USA Today has developed an interactive tax tracking tool.

The screen shot below gives you an idea of what the graphic will indicate. Essentially, it lets you enter your salary and see how tax rates and spending priorities have changed over time, from 1940 through 2010.

Usatoday_where-your-taxes-go

For example, for the $100,000 salary I entered (which, by the way, I chose because it's a nice round number, not because that's what I make), the calculator says in 2010 I'll owe the IRS  $26,766.

Most of those taxes, $6,692, will go to national defense programs. Social Security is a close second at $6,200. The Agriculture Department received the smallest portion of the taxes, only $248.

By comparison, 10 years ago $4,907 of the overall $17,209 tax bill went to national defense. But second back then was $3,284 toward net interest. Social Security was third, with $3,181 going toward that retirement fund. Again, agriculture brought up the rear, receiving only $194.

Give the tax tracker a shot and see where your tax dollars went decades ago and where they likely will end up this year.

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • Very cool. Clever on USA Today’s part.
    It’s amazing to see how much defense and social security get allocated.
    Thanks for sharing.

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