We always hear about tricks rich people use to not have to pay taxes and get deductibles.
Lets share some of that info on here so we pay less money to the government for them to waste and KEEP OUR HEARD EARNED MONEY.
I'll get it started:
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You can set yourself as a dependent on your taxes. It allows you to set an "allowance" that lowers the amount of money your job takes from your paycheck. It doesn't actually take away from the taxes you owe, but you get more money in your pocket at the moment and have to "pay it back" when you do your taxes.
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If you have student loans, the government provides a deductible for up to a certain amount of your interest payed off on the loan. As long as you pay a certain amount of your loan, all that interest could be payed by the government. You can take years paying off your loans while having the government paying you for all the interest.
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(Not too sure about how this one works but this is what i understand from it) If you do streaming or have some sort of side gig, you can pay to set up a DLL business. This means that part of the expenses you use for your company is treated differently than your income. DLLs are taxed on the profit they make and not the money they earn. The government allows for a company to have a certain amount of years that the company can lose money and therefore not pay taxes on any money earned. You can set a certain amount of your rent/mortgage, Internet bill, utilities as company expenses and all that push you to the negative essentially lowering your tax bracket and paying less taxes overall.
Share any tips you know. The less money we let the government steal from us, the less the crooked politicians can pay themselves and all the people that fund them.
Start a small business, any small business. Set up a S corp or a C corp with your tax guy.
Thanks for the input. Definitely starting a small business is a good idea, but with the economy and BS lockdowns most small businesses would die off. The business would need to be more of an online thing suck as streaming or something local with minimum direct interaction with people to make sure you could stay open even if everything was locked down.
I'll definitely look into S corp and C corp stuff.
I always used to up my dependants to 10 when I worked lots of overtime just have to be careful cause if you forget about it you WILL owe when tax time comes.
What's wrong with owing money? The only reason you have to pay is because you took the money you earned instead of letting the government take it directly from your paycheck... $10 now is better than $10 at the end of the year. Especially now considering how much the Swamp is speeding up inflation. I'd rather owe money than having the government possibly stealing my money.