I've heard through several reliable sources that one actually does not have to pay taxes if they do or follow something in the tax code. That something is what I do not know and they couldn't recall it either but it's in writing. Is this true or false?
2007-01-31 17:39:31 · 14 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
The 16th amendment to the US constitution gives the government the right to collect income tax. You sources are NOT reliable.
2007-01-31 17:49:15 · answer #1 · answered by Anonymous · 1⤊ 0⤋
I'm going to say false. There are several reasons why someone might not have to pay taxes, but for the average person whom just earns wages there's no magic loophole, at least not in the tax code. It's not impossible that something else exists (along the lines of welfare or a government grant) that has the same effect though!
2007-02-01 01:44:49 · answer #2 · answered by Treyot 2 · 1⤊ 0⤋
Yes, it is true...if you don't make very much money. When you receive what is called "Earned Income Credit", (EIC) you can receive not just all the tax dollars you paid in during the year, but additional "credit" dollars, that actually pays you back more than you paid in. So, if you qualify for EIC you will not actually be paying taxes, and in addition, you will get more dollars back than you paid in. But be sure and don't cheat... EIC gets audited more than the big corporations because the IRS doesn't like to give poor people any money, unless all the proper hoops have been successfully jumped through. EIC forms are rather complicated for people earning so little that they would qualify. I'm not going to look up the figures, but if you are single, you can't earn more than about $18,000 to get EIC and up to two children I think it is about $25,000 - so if you make more than that, you will be paying tax.
EIC is what is called "regressive taxation" because it puts tax dollars into the hands of the working poor. Belive it or not, Richard Nixon was the first pres to suggest it or he signed it into law. Don't quote me on the figures, but the idea can be verified in the tax law. You can get the specific at irs.gov and look up EIC.
2007-02-01 04:10:53 · answer #3 · answered by LuvDylan 5 · 0⤊ 0⤋
If you earned ordinary wages the only way to avoid the Tax Man is to earn LESS than $8,450 if you are a single taxpayer and are not the dependent of another tax payer.
If you heard otherwise, your source is NOT reliable and therefore should be ignored.
2007-02-01 07:16:19 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
There are two things you MUST do in this world: die and pay taxes. There have been people claiming that paying taxes has not been legally spelled out well enough and that technically it's not "against the law" not to pay ... but regardles of their philosophic motivations in not paying their taxes, the tax bill is going to immediately become a priority debt to the government and, after a period of time, Good Old Uncle Sam could destroy your finandial life. I've seen it happen.
2007-02-01 02:54:32 · answer #5 · answered by Terissa R 2 · 0⤊ 1⤋
Correct you do NOT need to file a tax return if your income and fileing status are under the IRS limits. Read the filing requirments in the 1040 booklet or go to www.irs.gov for more info.
2007-02-01 08:00:54 · answer #6 · answered by mrfoxhorn 5 · 1⤊ 0⤋
Non-profit organizations (churches etc.) are not taxed. Some people "create" their own entity in order to avoid taxes. The IRS is pretty savy to the tricks though.
2007-02-01 01:46:51 · answer #7 · answered by dreamgirl 5 · 0⤊ 0⤋
Read the tax code.
2007-02-01 01:42:54 · answer #8 · answered by ♥ jolie ♥ 2 · 0⤊ 0⤋
False. There are people who claim it's true - those who have followed it end up in prison, with their assets confiscated.
2007-02-01 02:21:07 · answer #9 · answered by Judy 7 · 0⤊ 0⤋
false. nobody can avoid paying taxes.
2007-02-01 02:31:25 · answer #10 · answered by Iceman҂ 5 · 0⤊ 0⤋