“Nothing is certain except death and taxes” – Benjamin Franklin
Pay your taxes or get locked up. It’s simple… right?
Unfortunately not. It’s a bit tricky sometimes knowing what you owe. The tax code is thousands of pages.
Still, it’s worth learning the basics and what applies to you. Doing so can save you thousands.
Tax evasion is illegal. It’s not paying the taxes you owe. But tax avoidance on the other hand is not. It’s the legal use of the tax code to one’s own advantage. It reduces the amount of tax that is payable by means that are within the law.
You should have no remorse for paying as little as legally required. The tax code is a mess. And all loopholes should be taken advantage of… If more people used them, the government would close them (unless companies sponsoring the politicians want them open).
Investment advisors can easily be replaced with a few hours of your time each year… and you’ll likely be better off. But a tax planner on the other hand is worth their weight in gold.
The tax code is a mess and tax professionals can help you navigate it. You can find the rules here.
If you need help with your taxes this year, there are lots of free sources available. The IRS.gov is a good place to start… And Volunteer Income Tax Assistance (VITA) offers free tax preparation services if you make $54,000 or less. It’s a great free service and can be found in lots of locations.
There are easy steps you can take each year to save thousands from the government. There’s no need to pay more than you have to.
For larger estates, a tax professional can keep more of your cash out of Uncle Sam’s pocket.