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Taxes!!!  

 

( OF COURSE CONSULT AN ACCOUNTANT FOR DETAILS;  I am not a tax adviser.)

 

I am NOT here to tell you to go get an offshore bank account so you can hide your income from the Government.
 
Taxes are necessary and we as Christians NEED to pay our taxes.   However, as good stewards of God's Money, we also should not OVERPAY for our taxes either. 
 
Here are a few tips to save $$$ on your taxes:
 

CHANGE YOUR EXEMPTIONS ON YOUR W-4.   

This is not your dependents but your exemptions!

 
If you are getting a BIG tax refund, you may love getting that check but you are actually giving the Government your money interest free for a year.
 

The IRS stated back in 2004 that the Average tax refund check was almost $2300!!! That is almost $200 per month ($200 X 12 Months) given to the IRS INTEREST FREE!!! If you are getting a tax refund check of more than $300 you need to consider changing your exemptions. Or feel free to send me any extra money you may have and I will keep it for you until next year and NOT pay you any interest.
 
 
 
* PLEASE PLEASE PLEASE. If you are getting a U.S. Tax Refund this year of more than $300-$400, PLEASE HAVE YOUR EXEMPTIONS CHANGED. You are giving the Government interest free money.
 
For example if you got a $600 Tax refund (or plan on getting one), that is $50 a month extra in taxes you paid last year. You earned no interest on it.  If you want to, you can  send me that $50 and I will keep it for you and a year from now send you the $50 back. That $50 could save you $100's of dollars in interest NOT paid if you applied it to your Mortgage.
 
Consider a person who has a 30 year mortgage on a $150,000 mortgage x 6%. If they made just 1 extra payment of $300, they would save over $1400 in interest! Talk about return on your money!! That $300 could easily be paid by saving $50 a month for 6 months.  $300 payments vs $1400 NOT HAVING TO PAY IN FUTURE INTEREST. THAT IS OVER 460% RETURN ON YOUR MONEY!!!
 
Change your Exemptions at your job. Exemptions and Dependents are NOT THE SAME THING! That same person who is getting a $600 tax refund is earning No interest from the Government. However they could save $2-3,000 in interest on that same money!! This is how the middle class person gets AHEAD by USING THEIR MONEY CORRECTLY.
 

Giving is a great Tax Write off in the U.S.  
 
* Another great tax write off is charitable giving. BE A GIVER! For it is better to give than to Receive. Be a giver all the time. Remember it is a tax deduction (in the U.S.) for charitable giving. So not only will you help your favorite Church/Charity, you can have a nice tax deduction.
 
 
 
Having your own Home Business
 
Whether you want to sell things on eBay, market Pampered Chef stuff, sell a mail order product, or turn your hobby into a part time business, you can get great Tax deductions working from home (There are THOUSANDS OF THINGS TO DO. Check out the Home Business section of this website).
 
This could save you Thousands of dollars each year.
 
Here are some of the things that you can deduct for your home business (OF COURSE CONSULT AN ACCOUNTANT FOR DETAILS.  I am not a tax adviser).
 
* Business travel
* Mileage- this can be big!!  It is roughly $1 per 3 miles you drive. Just think of throwing a $1 out of your car window every time you drive 3 miles!
 
* Medical expenses
* You can pay your kids to do some of the work. Instead of an allowance, pay them to help you in your business and get the tax deduction of Up to $4,000!
 
* You can deduct the office space for your home business.
* Phone bill if used for business.
* Internet costs
 
* If you get a post office box, that is deductible and you can deduct the mileage going back and forth.
 
I am sure there are 100's of other items and issues to deduct. I am by no means an expert on Taxes; However, I do know that I shouldn't overpay them.
 

All of these are LEGITIMATE deductions that the IRS allows.    DO PAY YOUR TAXES. JUST DON'T OVERPAY FOR THEM.
 
Your business doesn't have to even make money in order to get these deductions. You do have to try to make money with the business of course, but even if your business loses money you can still use these deductions.
 
I don't have TurboTax or anything like that so I am not sure if they include that type of information in their  software.  However, if you want some more help on this issue you can find some good information at
 
http://www.internettaxhelper.com

 

The reduction in Taxes you pay from having a home business can add up to $2,000-$3,000 or MORE each and every year.  That is like an extra $170 in your pocket each an every month just off that ALONE!

If you are looking for a Home Business to start even Part Time, check out the "Home Business" section of this site.

 


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