By reading the topic of our blog, you may probably wonder: “there can not be anything funny when it comes to taxes.” Of course, you are right, since fun and taxes can rarely go together in the same blog; however, believe us, that there are lots of interesting facts concerning taxes which you will have a lot of fun while learning!

We are completely sure that even in your state there are lots of funny tax rules you are not even aware of. Prestige Auditors have collected several fun tax facts from different states. Believe it or not, these are actually true!

Fun Fact # 1


Let’s be honest, we can hardly find a person who doesn’t love a cup of coffee. However, if you want to enjoy it in Colorado, you have to be ready for several interesting facts. Obviously, you should not pay taxes for getting a cup of coffee. But, if you decide to get coffee lids from this state, you should be ready that you are going to overpay for your purchase.

Fun Fact # 2

New Jersey!

If you are a big fan of Halloween, and live in New Jersey, you should keep in mind that the pumpkins that you are going to eat are tax free. But if you decide that the pumpkin is a better fit for a decoration, then it will be taxable. Why? We don’t know!

Fun Fact # 3

Rhode Island

Seems like Rhode Island is a really funny place, since there are emojis on its income tax forms. For example, if you have a refund, you can expect a happy face. It’s not that big of a deal, but we think it’s nice!

Fun Fact # 4


Keep in mind that you can get tax credits for maintaining each exceptional tree in Hawaii. The hardest part is finding the actual trees!

By continuing our fun tax blog, we suggest that you learn about some commonly met tax scenarios that you can face in different states.

Fun Scenario # 1

If you have cosmetic surgery, you can confidently claim it as a medical expense. We recommend not having cosmetic surgery unless you absolutely need it, however!

Fun Scenario # 2

If your child finishes high school in May or June of 2021, they will be still considered a full-time student under age 24 and claimed as a dependent on your return.

Fun Scenario # 3

If your personal grooming has a living purpose, then you can deduct these costs as a business expense.

Fun Scenario # 4

If you are self-employed and use your car in your business, you can deduct your car costs such as gas and car payment.

Fun Scenario # 5

If you are a happy owner of a dog or a cat which is an influencer on Instagram, the IRS considers it as your own self-employed business. Moreover, you can deduct pet-related costs as business expenses and save money on your taxes.  We are sure that you also want to read this blog about animals and deductions.

Fun Scenario # 6

If you were pregnant during 2020 and your baby was born in early January 2021, there are several tricky points that you should be aware of. If your baby was not born by 11:59 PM on December 31, you cannot claim them as a dependent on 2020 taxes, since you will be able to claim them only for 2022 or 2021. We also suggest you read this blog. You won’t regret it!

Fun Scenario # 7

If you are a side-gig worker, and are paid through the electronically paid apps, you will still have to report your income, since you are considered to be self-employed.

Fun Scenario # 8

If you are a big fun of cryptocurrency, keep in mind that you have to report the virtual transactions that you fulfil during the year. Additionally, you have to report sales of cryptocurrency during the tax year.

Fun Scenario # 9

If you are a lucky winner of lottery, then you have to report your winning to the IRS. You will be provided with a FormW2-G to report your winnings if they are more than $600.

Fun Scenario # 10

If your health condition requires pool exercises to improve your health, then you can build a pool and deduct the cost as medical expense.

We are hope that both the facts and the scenarios which we have included in this blog brought you a chuckle here and there. However, the main mission of this blog is to teach you that there are lots of ways to reduce your taxes by deducting costs on lots of expenses. If you still have lots of unanswered questions, contact Prestige Auditors and we will gladly provide you with information that you are interested in. Or you can visit our website where you can find different blogs referring to taxes and more.