56) Income Tax Reporting
- Your Patriotic Duty
ncome taxes are your patriotic duty. It's just a shame it's so complicated. And there's so much waste, and everybody tries to rip off the system rather than feeling they're supporting a government that provides valuable services to them.
Other countries, such as Sweden, see millionaires returning out of patriotism, because they feel the way I want to feel.
Nevertheless, we have to settle up on April 15th.
A tax return is built from the bottom, up. Information on lower pages, feeds information to middle pages, and eventually, everything gets summarized on the top two pages, of some version of the IRS Form 1040.
You want to become familiar enough with ‘constructing’ a Return to take advantage of every tax saving tactic you can.
On average, we all pay between 15 and 50% of our income in taxes. You can't consistently earn that much on investments, so your first, best investment should be in tax management.
Learn about what you can deduct (i.e. Adjustments, Deductions); learn about Credits.
If you can't or don't want to do it yourself, then hire someone who knows. Make that someone, someone who's patient, explains things clearly and repetitively and who will take the time to teach you to manage your custom taxes - not just someone to prepare them (which is what too many tax preparers do).
Become empowered, save tax, file early and easily.
Who's your Trusted Family Advisor®?