You paid too much tax last year (and the year before that,
and the year before that . . .) because you have probably
been an innocent victim of many popular myths about taxes.
Here they are. Get rid Income tax calculator of them or you’ll be stuck paying
too much tax forever!
Tax Myth #1: “I don’t make enough money to worry about
reducing my taxes.”
Nothing could be further from the truth. People at all
levels of income can pay less tax.
Tax reduction strategies are not just for the rich and
famous. No matter how much money you make, you can pay less
tax than you currently pay.
In fact, even if your business (or part-time entrepreneurial
venture) has a loss, you can use that loss to offset other
sources of income, such as wages from a “regular” job, your
spouse’s wages, investment income, rental income, other
And if your business loss is so great that it more than
offsets all your other income, you can take advantage of a
special rule that lets you: a) Carry back that excess loss
to the 2 prior years, thereby entitling you to a refund of
taxes you already paid for either (or both) of those 2 prior
years; and/or b) Carry forward that excess loss to the next
20 future years, so that any income you earn in the future
will be reduced by that excess loss.
Tax Myth #2: “Tax reduction strategies are too complicated
for me to use.”
Again, total and complete hogwash. There are plenty of ways
for you, the average American, to lower your taxes.
Tax reduction is not just for the wealthy who pay high-
priced attorneys to finagle their way out of paying taxes
with sophisticated tax-avoidance schemes, like off-shore
trusts and foreign bank accounts.
The average Small Business Owner has plenty of tax reduction
strategies at his/her disposal. You just have to know what
they are and how to use them.