Hello, JJ Childers here, and today I want to discuss… Taxes. Just the mention of the word is enough to send chills down the backs of most Americans. In fact, there may be nothing more frustrating than trying to deal with the United States Tax Code. Our tax code is made up of literally thousands of pages of rules, regulations, and laws. And you need to abide by them to stay out of trouble with the IRS.
Tax planning lets you set up your financial situation in a way that LEGALLY allows you to pay the least amount of taxes under the tax laws.
In all my years as an attorney and speaker, no one has ever disagreed that
we should pay the least amount allowed by law. And since taxes often take the biggest chunk of your income, it only makes sense.
So why do so few people do any tax planning at all (and wind up paying far more than they are legally bound to pay?).
Many people who are not wealthy simply don’t realize the tax reduction strategies used by the rich are also available to ordinary citizens. Also,
many who don’t understand tax laws are simply afraid of the IRS. But there is more to it than federal taxes.
In addition to Federal taxes, there are also state income taxes, social security and Medicare taxes and capital gains taxes. To lower your taxes, you have to legally reduce the amount of earned income.
Next, we’ll explore sources of income that are taxed at a lower rate, and some that are not taxed at all.
