Reducing my Taxes?

Question

My Anual income is 75K. I have only 48K left on my Condo mortage. I put an aditional 15K into a 401K plus 2K into IRA. I claim 1 for the standard deduction. At the end of the year I end up owing the Federal Goverment 2k. What would be the best course of action to reduce the ammount owed. At this point should I continue to try and pay off my condo early? I am also working a lot of overtime.

I work 2 hours of overtime a day and 6 on Saturday. If I was to cut off the 6 hours on Saturday would that be enough to break even and not owe a large sum of taxes at the end of the year. I Itemize all my deductions and it seems the only one I have is the mortgage deduction. Is their anything I could do to the condo that I can write off?

Answer 1

Paying off your condo early won't help your tax situation, and might even make it slightly worse since you wouldn't have the mortgage interest to deduct - not sure why you are taking standard deduction now, I'd think you would be able to itemize.

One way to not owe at the end of the year would be to have an extra $40 a week withheld - put that on your W-4.

Answer 2

You could incorporate yourselves a company do some odd jobs. The tiny work space in your condo could qualify as office which go tax deductible as well as phone, stationaries, business lunch. traveling cost etc. Those would add up may save you more than 2K per an to offset what you are currently in deficit owe to IRA. In the event, if you're lucky, your company take off...you will end with extra millions. If your company is a failure losing you money, that's tax deductible and could claim as capital lost.

Answer 3

First of all you should know that there is no law that requires you to pay a personal income tax. Let me repeat that. There is no law. If there was, the IRS would have shown The We The People Foundation in their lawsuit requesting that law be provided in writing.

So, let's assume you are, like most Americans, content with paying a tax that you are not legally bound to pay. Start a business. I own nine different businesses. Obviously, I have employees/managers who look out for my interests beyond what I would be capable of doing alone.

My home is owned by one of my businesses. It is paid for entirely. The company pays for my mortgage (because it is their mortgage) and so forth. Same for my vehicles. Those are the two biggest expenses most people face.

They are essentially non-expenses to me. The point being, hardly to brag about my lifestyle, is that you can use legitimate business expenses to reduce your taxable income.

Let's say you travel. You're going to take a vacation somewhere sometime right? I hope so because I might make more money if you do:)

You can write off all your travel expenses (airfare, cruises, hotels, food, etc.) by simply starting an import business. Wherever you go you take some pre-orders for certain items to sell to people who live near you. Or use E-bay and ship the stuff to them.

You buy cheap overseas and sell high to Americans with too much cash on their hands. Your intention is hardly to make a profit but to be able to legitimately show the Infernal Revenue Stinkers that you conducted business and that you had to personally inspect the products before having them shipped to America. Voila!

If you'd like more information on the farce of the income tax I refer you to the following links. There are plenty of people out there who will tell you that you must pay your income taxes. The personal income tax only pays for two things in the Federal Budget: Undocumented Adjustments (which is a fancy accounting term for theft or lost money) and the Interest on the National Debt. Everything else is paid for by the other 40-something taxes in existence.

It's a farce. I personally don't give a hoot if you want to pay your income taxes. If you want to be a fool there is nothing I can do to stop you from being foolish. But I think you ought to know the truth just the same.

Answer 4

Get married, have children, those that make nothing and pay nothing but are married and have children get big breaks, and returns more than what they pay in.