Billionnaire investor Warren Buffett filed his first tax return at age 14 to report income from his newspaper delivery job. He claimed a $35 deduction for use of his bicycle and watch on his paper route.
You might wonder why a 14-year-old would have to file a federal income tax return. Well, Buffett made more than $500, and IRS rules at the time required that a return must be filed by every citizen of the United States, including a minor, who had earned a gross income of $500 or more. Buffett’s income in 1944 was $592.50 and he paid a $7 tax. Translated to 2017 figures, using an inflation calculator, that’s $8,221.18 in income and $97.13 owed in taxes.
Buffett told us that along his route were six senators and one Supreme Court justice. He delivered the Washington Post and the now defunct Washington Times-Herald, both morning and afternoon editions. All of this was meticulously noted in an addendum attached to his 1944 tax return. He also noted two expenses; watch repair at a cost of $10 and miscellaneous bicycle costs adding up to $35.
Credit : PBS
Picture Credit : Google
