April 15th is once again upon us. If you pay a lot in taxes it might feel like Uncle Sam is upon you too. This time of year people always complain about how much they owe the government in taxes. Clearly the complainers don’t know how easy it is to dramatically lower your tax burden.
Before I share my surefire tax lowering technique I should acknowledge that I am not a licensed tax professional. So anything I share here should be verified by your tax consultant, or by actually reading the IRS publications. But I am pretty sure this is not the same tax lowering strategies used by Wesley Snipes, Martha Stewart or Willie Nelson.
Tax Paying Experience
While I am not a certified tax professional, I own my own business and file taxes in 3 different states. I have been paying taxes since I was 14 years old. I have calculated my taxes on my own and I’ve used Turbo Tax. Today, I use a team of professional tax accountants. All 3 of these tax preparing approaches have confirmed my bulletproof tax reduction strategy.
My Tax Reduction Technique
My surefire technique for lowering your tax burden is so easy anyone can use it. Even better, it is legal in all 50 states and the District of Columbia.
If you want to pay far less in taxes next year simply make far less income.
The Ultimate Tax Hack
If a lower tax bill is a high priority, simply throttle back your effort and contribution at work. Unless a family member owns the company, or you are really, really good-looking (#Zoolander), you will certainly feel an equal drop in both your compensation and your tax liability. It’s that easy to do. In fact, it is much easier to lower your taxes significantly than it is to raise them.
My Tax History
When I was in high school and college, I typically made between $3000 and $5000 working during the summer. As a result my taxes were tiny. In fact, I am pretty sure the government lost money on the time they spent reviewing my taxes.
In the first year after I graduated from college I made $21,000. My taxes were still really low. In fact, the government gave me almost all of the money I paid in taxes back to me. When I received my refund check from the IRS that year it was accompanied by a note that said, ‘Thanks for the laugh!’
My Taxes Today.
Now I make a lot more money. And I pay a lot more in taxes. In 2016 I started my own advertising and idea agency called The Weaponry. Clearly I didn’t listen to those who told me that if my income goes up, my tax bill will too. In fact, this year I will pay more in taxes than I made in gross salary during the 7th year of my career. And I love it.
Reinterpreting Those Damn Taxes
Taxes are a sign of success. To pay a lot in taxes you have to make a lot of money. If you are paying a lot more now than you did a few years ago, congratulations! You must be making a lot more. If your total tax bill is obscene, even better! You must be making an obscene amount of money!
The Tax Reminder
Remember, taxes enable us to pay for things together. If it weren’t for taxes, you would have to build your own roads, your own schools, and your own parks. But thanks to the tax system, we all give a little and get a whole lot in return. Which means that taxes help us save money overall, and increase our quality of life. If you are not paying taxes it is like going to a pot luck dinner and not bringing any pot or any luck to share. That makes you a mooch. Or a free loader. Don’t be that kid.
To pay a lot in taxes you have to make a lot of money. Never lose that perspective. Be proud of that money you contribute to benefit us all. I hope you make a boatload of money next year. Then I hope you ship a life raft’s worth of tax payments to the IRS to help save us all. Be proud to pay a larger tax bill each year. It’s a sign of success. Sure, it’s easy to slash your tax bill by lowering your income. But after you’ve done that once you will realize it feels a lot better to pay a lot more.
*If you know someone who could benefit from this message, please share with them.