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  • Articles by: Lena Hanna, CPA
Lena Hanna, CPA
Lena Hanna, CPA

Lena Hanna, CPA

Lena Hanna is a Certified Public Accountant licensed in both New York and California, as well as an Enrolled Agent and a Certified Internal Auditor. Currently, Lena serves as a Lead in the TurboTax community and she assists in updating content for the TurboTax Blog team. With experience in public accounting and private industry, Lena possesses knowledge in the areas of tax and audit. Her goal is to support the TurboTax community by providing accurate and up-to-date tax guidance.

family with baby and dog spending time together

Confession: I Almost Forgot to Add My Newborn to My Taxes. Don’t Make My Mistake.

My W-2 Arrived. Now What?

Key Takeaways: In some states, candy with flour is exempt from sales tax. Prepared foods, such as a cut bagel or scooped ice cream, will cost more in some states. States with no income tax could mean higher-than-average sales or property taxes. Tax codes can get weird. Depending on where you live, everyday choices — even how you order lunch — can change your tax bill. Some rules save you money; others add unexpected costs. Carving a pumpkin in New Jersey? That’ll cost you extra. Some of these quirks still exist. Others sound too strange to be true (but were). Either way, they show just how quickly the tax system can be. 10 unexpected tax loopholes you wish you knew sooner Pennsylvania: no tax on clothing In Pennsylvania, most clothing is tax exempt — with a few oddly specific exceptions. But, PA is unique in that it has a few oddly specific exceptions. Items that are taxable include: Tuxedos and other evening wear Sporting goods, such as cleats Clothing with real or synthetic fur when the fur is worth more than three times the value of the rest of the garment So, if you were hoping to save sales tax by buying a tux or fur coat in Pennsylvania, you’re probably out of luck. Minnesota: no sales tax on baby diapers In 1981, Minnesota became the first state to eliminate sales on baby diapers. Since then, 22 other states have followed suit. This exemption is only available for baby diapers though. In Minnesota, adult diapers are still taxable. Kids get a break. Adults — not so much. New Jersey: no tax on edible pumpkins Buying a pumpkin for baking? You won’t pay state sales tax in New Jersey. However, if the pumpkin is intended for decorative use, like a jack-o-lantern or gourd display, it’s taxable. New York: a sliced bagel comes at a premium In New York City, an unsliced bagel with no toppings is tax free. Slice it, toast it, or add toppings and sales tax enters the chat. This bagel tax dates back to 1934, when it was introduced to help fund unemployment relief. It still applies today, taxing other prepared food like sandwiches. Colorado: no sales tax on candy with flour Colorado changes a ‘sin tax’ on sugary treats like candy, but this tax comes with a loophole. If the candy contains flour, it’s exempt. That means a Snickers (no flour) is taxed, while a Twix (with flour) is tax-free. Texas: belt buckle tax Shopping for a statement belt buckle to go with your cowboy boots? In Texas, you’ll pay extra. Texas is the only state with a belt buckle tax. Belt buckles are considered accessories, not necessities, and are subject to the state’s 6.25% sales tax — even during tax-free holidays. Wisconsin: scooped ice cream is taxable If you pick up ice cream at a grocery store in Wisconsin, it’s tax-free. Order a scoop or soft-serve from a shop, though, and it’s taxable because it’s classified as prepared food. Other U.S. tax oddities It “pays” to live in Alaska The Alaska Permanent Fund Dividend (PFD) is an annual payment to eligible state residents. Alaska sets aside a portion of its oil and gas revenue in the PFD fund. Each year part of the fund’s earnings is paid out to residents and is not subject to state income tax — federal income, however, still wants their share. Digital download taxes States define digital downloads differently. Because you can’t physically hold, touch, or possess them, these purchases often fall into a tax gray area. Renting a movie online, for example, isn’t always taxed the same way as renting one from the store. In some states, you’ll pay sales tax on purchases like: Streaming services Digital rentals Ebooks In others, these items are tax-free. Generally, states that belong to the Streamlined Sales and Use Tax Agreement (SSUTA) tax digital items, while states outside the agreement may not. Nine states are income tax-free In 9 U.S. states, you don’t pay a state income tax. These include: Alaska Florida Nevada New Hampshire South Dakota Tennessee Texas Washington Wyoming While paying no state income tax is a major perk, these states often have higher-than-average sales, property, or excise tax rates. Learn more about loopholes with TurboTax Navigate loopholes — the surprising and the nuanced — with TurboTax. TurboTax Experts can help you understand how these quirks apply to your situation — and make sure you don’t miss a potential tax break.

Unexpected Tax Loopholes You Wish You Knew Sooner

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Q&A: I Worked Overtime This Year — My W-2 Pay Doesn’t Show it. A Tax Expert Explains

man and woman shopping for a car

I Bought My First Car This Year, Turns Out I Might Get Money Back for It.

two happy women smiling and laughing

I Worked Overtime Every Week. Here’s What It Did to My Tax Bill

Woman smiling and journaling outdoors in a sunny, quiet, desert environment appearing relaxed and thoughtful.

I Used to Spend My Weekend on Taxes. This Year, I Got My Saturday Back

Before the Ball Drops: The Money Worries People Carry Into Year-End (That Usually Work Out)

Compliance Check: Preparing Your Payroll for the Tax Law Shifts

The TL;DR on Tips and Overtime for 2025 Tax Year

Expert Assist vs. Expert Full Service: How to Choose the Right TurboTax Expert Service

See How Tax Changes Impact You with the Tax Reform Calculator

5 Ways to Strengthen Your Financial Foundation 

Badlands at Theodore Roosevelt National Park in Western North Dakota

North Dakota State Income Tax in 2025: A Guide

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Mortgage Interest Deduction: How It Works and Who Can Claim It

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New York State Income Tax in 2025: A Guide

Juneau, Alaska Mendenhall Glacier Viewpoint

Alaska State Income Tax in 2025: A Guide

Smoky Mountains Tennessee

Tennessee state income tax in 2025: A guide

Valley Fire State Park Nevada

Nevada State Income Tax in 2025: A Guide

Miami skyline

Florida State Income Tax in 2025: A Guide

Saint Paul Minnesota cityscape

Minnesota State Income Tax in 2025: A Guide

Colorado State Income Tax in 2025: A Guide

Starting a Business? (How to Start a Business Guide)

5 Popular Tax Myths, Busted (411 x 600 px)

5 Popular Tax Myths, Busted

How To Manage Your Self-Employment Deductions Year Round

4 Ways to Save for Retirement When You Work in the Gig Economy

10 Commonly Overlooked Tax Deductions (411 x 600)

10 Commonly Missed Tax Deductions and Credits

How to File Taxes as a College Student

Tax Tips for Coaches

How to Start a Side Hustle (411 x 600 px)

How to Start a Side Hustle

Roth IRA Conversions (Converting IRA to Roth IRA) (1440 x 600 px)(411 x 600 px)

Roth IRA Conversions (Converting IRA to Roth IRA)

Solo 401(k) Guide to Self-Employed Retirement Plans (411 x 600 px)

Solo 401(k): Guide to Self-Employed Retirement Plans

Tax Guide for the Self-Employed Everything You Need to Know

How to File Self-Employment Taxes

Student Loan Options When You’re Self-Employed

Should You Contribute to a Roth IRA, Traditional IRA or 401(k)?

Estate Planning 101: A Step-By-Step Guide

What Are the Standard Mileage Rates (411 x 600 px)

What Are the Standard Mileage Rates?

Happy National Children’s Day! Here’s What Having a Child Means For Your Taxes

6 Money Saving Tax Tips for the Self-Employed (411 x 600)

Tax Benefits for the Self-Employed: How to Maximize Your Deductions

What is the Child and Dependent Care Credit (411 x 600 px)

Travel Write-offs for the Self Employed (What Can I Write-Off)

If I Moved, How Do I File Taxes in Multiple States (411 x 600 px)

Filing Taxes in Two States: Why This Happens and Who It Applies To

Self-Employed Tax Tips & Summer Jobs

Self-Employed Tax Tips & Summer Jobs

401k Contribution Limits for 2024: Everything You Need to Know (411 x 600 px)

What Are the 401(k) Contribution Limits for 2024?

Can I Claim My Girlfriend or Boyfriend as a Dependent?

W-4 Withholding and Tax Reform (411 x 600 px)

Understanding Your Withholding Allowance on Your Form W-4

The Beginners Guide to 401(k) Rollovers (411 x 600 px)

The Beginners Guide to 401(k) Rollovers

Do I Need a Social Security Number to File My Taxes (411 x 600 px)

Do I Need a Social Security Number to File My Taxes?

How to Lower Your Property Taxes

Tax-Exempt Forms What You Need to Apply for Tax-Exempt Status (411 x 600 px)

Tax-Exempt Forms: What You Need to Apply for Tax-Exempt Status

Fun in the Sun: Summer Day Camp Expenses May Qualify for a Tax Credit

Tax Implications of Having a Nanny or Housekeeper (411 × 600 px)

Nanny and Housekeeper Tax Rules

How Long Do You Have to Pay Taxes (411 x 600 px)

How Long Do You Have to Pay Taxes?

First Time Taxpayers Your Go-to Guide For Filing Your Taxes

How To Do Your Taxes for the First Time: A Go-To Guide for First-Time Filers

Self-Employed Babysitter Taxes: When You Have to Pay

Are Overnight Camps Tax Deductible?

Are Overnight Camps Tax Deductible?

What is the Inheritance Tax?

Real Estate Employment Taxes Explained (411 x 600 px)

Real Estate Employment Taxes Explained

What Does My New Health Insurance Mean for My Taxes (411 x 600 px)

What Does My New Health Insurance Mean for My Taxes?

Use Form 8832 to Choose Your Business’s Tax Status (411 x 600 px)

Use Form 8832 to Choose Your Business’s Tax Status

What Income is Taxable and Non-Taxable (411 x 600 px)

What Income is Taxable and Non-Taxable?

What Is Form 2553 & Which Businesses Use It (411 x 600 px)

What Is Form 2553 & Which Businesses Use It?

3 Ways to Look Up Your EIN Number (411 x 600 px)

3 Ways to Look Up Your EIN Number

Solar Tax Credit 101: A Comprehensive Guide

Basics of Health Savings Accounts

What Is An FSA & How Does It Impact Your Taxes?

Should Married Couples File Jointly or Separately (411 × 600 px)

Married Filing Jointly vs Separately: Which Should I Choose?

The Retirement Saver’s Credit

What is a Tax Write-Off (Tax Deductions Explained) (411 × 600 px)

What is a Tax Write-Off? (Tax Deductions Explained)

How to Amend Your Tax Return Update Income & Correct Mistakes (411 x 600 px)

Amend Your Tax Return for Income Changes & Revisions

5 Caregiver Tax Credits + Benefits to Help You Save

Can I Deduct My Summer-Time Moving Expenses?

Don’t Miss the Tax Deadline! File for a Tax Extension Before the Deadline Hits

Capital Gains Tax Explained (What Is It and How Much It Is) (411 × 600 px)

What is Capital Gains Tax? Capital Gains Explained & How to Avoid Capital Gains Tax

Donate Your Wedding Dress for a Tax Deduction

7 Wedding Expenses That Are Tax Deductible

How to Get a Tax Break for Summer Child Care (411 × 600 px)

How to Get a Tax Break for Summer Child Care

What is a Tax Bracket?

6 Ways to Reduce Your Taxable Income (411 x 600 px)

5 Ways to Reduce Your Taxable Income

Exploring the Tax Implications of Ozempic and Wegovy What You Should Consider (411 × 600 px)

The Tax Implications of Ozempic and Wegovy

Filing Taxes After Losing a Spouse: Qualifying Surviving Spouse Status

capital gains tax calculator

Capital Gains Tax Calculator

FTB2_Blog_411x600

Podcast: Can I Deduct That? Tax Tricks for Influencers

FTB2_Blog_411x600

Podcast: Giving and Getting Back (at Tax Time)

turn-your-tax-refund-turn-into-more-money

How to Turn Money Into More Money

Are Work Clothes Tax Deductible If You’re Self-Employed?

Two young people, couple in relationship, working together at home office

How to Report Cash Income With and Without a 1099