Knock-Knock-Knock
Knock-Knock-Knock
Who's there?
The IRS!
The next quarterly payment of estimated income tax for the self-employed is not far off. Network marketers who receive a form 1099 at the end of the year, and/or who are expected to owe $1,000 or more in taxes, must file a form 1040-ES Payment Voucher quarterly to avoid paying a penalty.
When it comes to paying income tax, I'm like Arthur Godfrey who said, "I am proud to pay my taxes. I'd be just as proud to pay half as much.
Like most network marketers, I work hard for what I earn and do not savor sending the government any more money than what I legally owe. So you can imagine how I felt four years ago, when I learned I had overpaid my income tax by some $9,800 over three years.
I had trusted the guy who did my tax returns. After all, preparing tax returns was big part of his business.
But guess what, I fired him.
Once I learned what the law provides home-based business owners to deduct, I went back through three most recent years of returns, revising my 1040 to claim deductions my tax guy didn't have the foggiest notion existed. Or if he did know, he failed to ask me about them.
For instance, my tax guy failed to ask me if I had any dogs. Did you know your dog (or three dogs in my case) qualifies as a "security system" for your home-based business? 100% of all dog food, Vet bills, license fees and medication is tax deductible! I have the IRS tax code to prove it. My tax guy didn't know that. I called him on it and told him to look it up for himself.
You see, I did something worthwhile. I invested in a well-known and respected home-based business tax-reduction book. I learned that with some 43,000 tax codes on the books, a typical CPA could not possibly know them all. How could they?
CPA's typically specialize in corporate tax code, and are often short sighted when it comes to tax deductions for home-based business owners. But I now have my home business tax-guide that lays out exactly what deductions I can take and cites the tax code for each one.
Thankfully, the law allows me to revise previous tax returns, so I was able to save a bundle of money, money I thought was gone. My point to you is this: The likelihood is great that you, too, have overpaid your taxes and are not even aware of it. How much?
According to what I read, the average home-based business owner overpays $1,000 to $2,000 in taxes every year. But the IRS is not about to refund what we overpay without us asking for it through an amended tax return. When you add in the interest
that tax money is earning and refunded with your overpayment, the average refund is more like $3,000 to $6,000.
From my experience, do not trust anyone doing tax preparation who is not intimately familiar with home- based business tax deductions and tax strategies. They could cost you thousands of dollars if they are not up on home-based business tax law, no matter how many initials they carry after their name.
Congress knows that small business is the engine that runs our nation's economy. To encourage small business, Congress has passed legislation giving huge tax breaks to people who invest in a small business. Your network marketing enterprise places you squarely into that small business category.
That fact presents another problem for many part- time network marketers, because they do not think they have earned enough money from their business to qualify for tax deductions. This erroneous thinking is costing them literally thousands of tax dollars.
When I do business seminars, I hold up a Distributor Application and romance it. Why, because just the act of signing that piece of paper qualifies us as a home-based business owner; one who is now eligible to claim thousands of dollars in legally authorized tax deductions; deductions we could not claim before signing that piece of paper.
Profit or loss is not the criteria, it is our intent to make a profit that allows us to claim deductions year after year.
No matter how you view your business, this is your money. So it should behoove you to learn what you can about minimizing your tax liability.
You should do so for yourself, and then for others. How much more good could we do if learned how to keep tax dollars at home? How much more could we do for others if we taught them the same?
Jim Lynn is the author of, "Real World Secrets Behind America's Most Successful (And Profitable) People Who Network." Website: http://peoplewhonetwork.net
Warning: include(inc/ads-body.inc) [function.include]: failed to open stream: No such file or directory in /home/accounta/public_html/5728_business_personal_taxes.php on line 130
Warning: include(inc/ads-body.inc) [function.include]: failed to open stream: No such file or directory in /home/accounta/public_html/5728_business_personal_taxes.php on line 130
Warning: include() [function.include]: Failed opening 'inc/ads-body.inc' for inclusion (include_path='.:/usr/lib/php:/usr/local/lib/php') in /home/accounta/public_html/5728_business_personal_taxes.php on line 130
MORE RESOURCES:
 Globe and Mail | Tax staff to be paid $25M in severance, rehired National Post An agreement signed by the Liberals and the Canada Revenue Agency will see the provincial tax workers become employees of the federal government, ... Ont. tax collectors looking at $45000 severance but won't lose jobs |
NB increases property tax rebate CBC.ca The New Brunswick government is going to offer more money to more low-income people who are hit hard by property tax increases, says the finance minister. ... Province to tackle tax hikes New Brunswick government helping low-income earners with rising property taxes New property tax formula coming: Minister |
 Globe and Mail | 10% soda pop tax, 7% fewer calories Globe and Mail Based on the US study, an 18-per-cent tax on pop would result in a decline of 56 calories per person per day. Published on Friday, Mar. ... |
 Washington Post | Friday News Roundup: Week of March 8-12 New America Foundation (blog) Legislators are less eager to increase taxes, especially in an election year, and fear that increased corporate taxes would discourage businesses from ... In Ill., choice is higher taxes or education cuts Quinn Defends Plan to Fund Schools with Tax Hike Green Party's Whitney calls for income tax hike, legalized pot |
 NewsOXY | Free printable federal income tax form 1040 for filing 2009 income tax returns ... Healthy Financial Habits Almost one month from today, millions of Americans will be scrambling to file their 2009 federal income taxes. If you need free printable federal income tax ... Tax breaks can help when you lose your job Tax Tip: 4 places to find free tax help Record number of tax filers paid no federal income taxes in 2008 |
 CBC.ca | WALT COBB: Taxes a necessary evil Williams Lake Tribune NDP energy critic John Horgan has said that the tax will be eliminated, “but we have to find revenue to offset that from other taxes.” None of us like taxes ... Doubts remain after HST report The BC government sneaks another tax hike in through the back door |
Gov. Lingle signs state law reducing large business tax increase for Hawaii ... CanadianBusiness.com HONOLULU (AP) - Businesses in Hawaii are getting immediate relief from the nation's largest increase in unemployment taxes after Gov. ... Lingle signs bill lowering unemployment tax increase |
 CBC.ca | 'Soda tax' movement gains steam Vancouver Sun New York state is the latest American jurisdiction eyeing a "soda tax" to curb the obesity ... Editorial: Nickels and dimes of new taxes just add to the toll Soda Tax: Is New York Soaking the Poor? Study: Taxing junk food could alleviate obesity |
Vodafone Sends Final Submission To India Tax Body Wall Street Journal "Vodafone is confident that no tax is payable on this transaction. All of the taxation and legal advice we have received remains consistent with this view," ... |
 TopNews United States | Tax fallout Pueblo Chieftain DEMOCRATS DIDN'T know there would be fallout from their dozen tax increase bills this year? Gov. Bill Ritter and his fellow Democrats who control the ... The Tax War Goes Online Local affiliates here axed by Amazon.com Colorado's feud with Amazon puts focus on national online tax efforts |
Highlights of IRS List of 2005 Tax Scams
Each year, the IRS lists various scams taxpayers get caught up in. The top 2005 scams include several that manipulate laws governing charitable groups, abuse credit counseling services or rely on refuted arguments to claim tax exemptions.
Identity Theft - Impacting Your Taxes?
If your identity is stolen, your finances can quickly become a nightmare. A less obvious problem is the effect identity theft can have on your taxes.
10 Thoughts on Tax Offer in Compromise
Beware of advertisements that claim to settle tax debts for "pennies on the dollar". Check the Offer In Compromise requirements to see if it is right for you.
Small Business Tax Issues for Self-Employed Individuals
The United States is a nation of entrepreneurs. There are literally tens of millions of self-employed individuals that enjoy pursuing their dream business.
How To Get An Instant Pay Raise
As a gentleman was leaving my class recently, he wanted me to clarify something I had said. He was making sure that he should take his four or five thousand dollar tax refund and pay off debt.
Correspondence From The IRS - Yikes!
It's a moment every person dreads. You pick up the mail and there is an envelope from the IRS.
Save Money on Taxes - Is the Only Way to Get Your Tax Savings is to Sleep With an IRS Agent?
Tilting the Tax Laws in Your Favor.In order to accelerate your movement along the wealth building curve, you absolutely MUST have your own business.
Employment Taxes - What Are They?
If you have employees, you are responsible for paying a variety of taxes at the federal, state, and local levels. You must also withhold certain taxes from the paychecks of your employees.
Section 179 - Tax Relief From Depreciation Rules
"Depreciation." For business owners, this word is the one most likely to inspire headaches and fits of cussing.
Your IRS Tax Appeal Rights
Are you in the middle of a disagreement with the IRS? One of the guaranteed rights for all taxpayers is the right to appeal. If you disagree with the IRS about the amount of your tax liability or about proposed collection actions, you have the right to ask the IRS Appeals Office to review your case.
Small Businesses Filing Amended Federal Tax Returns to Recover Money
Small Businesses Filing Amended Federal Tax Returns to Recover Money By Darren Oliver April 15th may be gone but, but certainly not forgotten - especially if you, like millions of small businesses, unknowingly overpaid your federal taxes and can recover money by filing an amended return. According to the IRS tax code, you have three years from the filing date for the tax year in question to file an amended return.
What to Do If You Can't Pay Your Taxes
The end of tax filing extensions is quickly approaching. What do you do if you can't pay the amounts you owe? You should still file your return by the due date and pay as much as you can.
Fraudulent Tax Shelters - KMPG Goes Down Hard
In the largest criminal tax case ever filed, KMPG has copped a plea to using fraudulent tax shelters to bilk the government out of 2.5 billion dollars.
Paying Workers - What Can You Write-Off?
As your business grows, you are going to need help. This help comes in the form of employees and independent contractors.
Tax Time Tune Up
Excerpted from the new book, "How to Do Space Age Work with a Stone Age Brain" TMThe complete article with pictures and sample Auto Log is available at www.organize.
Rental Property Tax Deductions
Own residential rental properties? This article discusses how income from those properties impacts your taxes.What Constitutes Revenue?Generally, rental income is defined as any revenue you receive from the occupancy or use of residential property.
Keeping Your Own Money - NOT Handing It Over To The Taxman
Most people trying to make a crust online (or offline for that matter) are so focused on doing just that, they ignore taking simple steps to ensure that they hang on to just as much of it as they can. Instead, they hand over large lumps of their hard-earned money in tax, usually in one of two mistaken beliefs.
How Likely Are You To Be Audited?
Statistics for IndividualsUnfortunately, the IRS increased its rate of auditing individuals in 2003 when compared to 2002. The increase was approximately 14%, but still constituted only 6.
How Home-Based Businesses Can Avoid Giving Uncle Sam More than His Share
How Home-Based Businesses Can Avoid Giving Uncle Sam More than His Share By Darren Oliver With the rush to file your taxes by April 15th, you probably did not consider the possibility that you overpaid. According to the General Accounting Office, in 1998 alone, there was $311 million paid unnecessarily to the IRS.
IRS Offer-in-Compromise, Hype or Hope?
"Settle for Pennies on the Dollar! IRS debts settled for $20 Wipe out the Penalties with an Offer"-such is the language of Offer-in-Compromise promoters. What they fail to tell you is that one has to qualify for an Offer and few taxpayers will be able to meet the tough standards for an OIC.