Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
Knock-Knock-Knock > NetSparsh - Viral Content you Love & Share

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

In The News:


The Denver Post

Cigarette taxes are the best way to cut smoking, scaring Big Tobacco
The Denver Post
For more than a decade, Kristin Page-Nei begged Montana lawmakers to raise cigarette prices. As a health advocate for the American Cancer Society, she watched year after year as other states increased their cigarette taxes and lowered their smoking rates.

and more »

New York Times (blog)

Some Misleading Geometry on Corporate Taxes (Wonkish)
New York Times (blog)
I very much doubt that additional facts or analysis are going to matter much for the fate of the Trump tax cuts. It's obvious to pretty much everyone – I suspect even those pushing the cuts – that they will confer huge benefits on the wealthy, do ...


Wilkes-Barre site with decade of back taxes again removed from auction
Wilkes Barre Times-Leader
Properties are supposed to be listed for auction if taxes are two years past due unless the owners are complying with repayment plans, a judge grants more time or the property is involved in an active bankruptcy. In this case, the property was kept out ...

and more »

Minneapolis Star Tribune

Schafer: Trump should just take a shortcut to saving household ...
Minneapolis Star Tribune
Champions for tax reform in Washington want to help the middle class so much that they have proposed a big income tax cut for the biggest U.S. corporations.
A White House Fairy Tale About the Trump Tax Plan | The New YorkerThe New Yorker
Kevin Hassett & Economic Policymaking for the Future | National ...National Review

all 7 news articles »

Quartz

Yes, Puerto Rico pays federal taxes. Here's how much
Quartz
Aside from knocking down power lines and destroying thousands of homes in Puerto Rico, Hurricane Maria has had another consequence: Giving Americans on the mainland a crash course in the history and political status of the US territory. By now, many ...

and more »

Albany Times Union

'Zombie' event staged at Oklahoma Capitol to support taxes
Albany Times Union
Charles Martin of Together Oklahoma says the group supports increasing gross production taxes on oil and gas from 2 percent to 7 percent, which would raise an estimated $400 million. The increase has been opposed by the oil and gas industry.

and more »

Madison.com

Paul Soglin: Middle-class homeowners could face triple whammy from GOP tax plan
Madison.com
The state and local tax deduction is claimed by 44 million American households on their federal returns, a large percentage of whom are middle-class homeowners. Nonetheless, Washington has this deduction in its crosshairs because eliminating it raises ...
Q&A on the GOP effort to overhaul the nation's tax systemWTOP

all 17 news articles »

The Hill

Trump should cut spending, not taxes — at least not yet
The Hill
President Trump is following in the footsteps of President Reagan and President George W. Bush by proposing massive tax cuts that will dramatically widen the federal budget deficits (the initial GOP plan adds $2.2 trillion to the deficit over a ten ...

and more »

Los Angeles Times

Ryan says tax overhaul will include a bracket aimed at the wealthy
Los Angeles Times
House Speaker Paul D. Ryan said Friday that the Republican tax overhaul will include a fourth bracket for the wealthiest Americans to ensure that high earners don't benefit more than the middle class. The bracket would be “designed to make sure we don ...
Ryan: Tax plan will include higher bracket on the richPolitico
House GOP to Keep Higher Tax Rate on Wealthy, Ryan SaysBloomberg
Hilarious Paul Ryan Forgets to Mention That He's Concealing Trump Tax ReturnsNew York Magazine

all 141 news articles »

The Spokesman-Review

Trump's tax reform: A clarification
The Spokesman-Review
Last week, the Spokesman-Review published a package outlining how President Donald Trump's proposed tax reform might impact Spokane families. The information in the article was accurate, but the accompanying calculator and graphic were misleading ...
Trump pledges biggest tax cuts ever as Senate paves wayPBS NewsHour
Dems: GOP tax cut plan fails Trump's own testThe Hill (blog)
Republicans Consider Sharp Cut in 401(k) Contribution LimitsNew York Times
Bloomberg -RealClearPolitics -New York Post
all 684 news articles »
Google News

Paying Workers ? What Can You Write-Off?

As your business grows, you are going to need help.... Read More

Highlights of IRS List of 2005 Tax Scams

Each year, the IRS lists various scams taxpayers get caught... Read More

Tax Audits: What Signs Make You More Likely to be Audited by the IRS?

It's a major fear for most Americans: A notice from... Read More

Tips and Simple Guidelines on How to Calculate Payroll Taxes

Managing a business small, medium or big requires you to... Read More

What is a Federal Tax Lien?

A Federal Tax Lien (FTL) is a legal instrument that... Read More

Navigating The Internet Sales Tax Laws

QUESTION: I have been contacted by my local city... Read More

Complaince of Tax Return in Electronic Commerce Taxation

Emerging Legal issues of Tax compliance of e-business Self-assessment system... Read More

Tax Tips - Which Tax Form Is Right For Me?

IRS Tax forms can be confusing.Am I a 1099 or... Read More

Small Businesses Filing Amended Federal Tax Returns to Recover Money

Small Businesses Filing Amended Federal Tax Returns to... Read More

How To Claim CHILD TAX CREDIT The Right Way And Add An Extra $2,000 To Your Refund

The U.S. Department of Agriculture estimates that it costs nearly... Read More

Understanding Marketing Tax Deductions

Marketing is a necessary expense in running practically any business... Read More

IRS Certifies 2006 Toyota Hybrid for Clean Fuel Deduction

The Internal Revenue Service has certified the 2006 Toyota Highlander... Read More

The Internet Tax Man Cometh

Q: I was contacted by the city tax collector to... Read More

Taxation of Isle of Man Companies from April 2006

At the present time a company incorporated in the Isle... Read More

Car Donation: An Easy Way to Support Your Favorite Charity and Get a Tax Deduction

Most people look forward to getting their tax return, but... Read More

Tax Trap #5 -- Ignoring The IRS (and the 5 best ways to contact them!)

We all love to criticize the IRS, don't we? And... Read More

Income Tax Returns Your Accountant Should Not File

You've been feeling uneasy (perhaps even guilty) because you've failed... Read More

How to Cut Duty Cost and Increase Profit as an Importer

Import duties continue to be significant elements in the cost... Read More

The Implications of Income Tax Charge on Estate Planning

OverviewIn the Pre-Budget Report of December 2003 the Chancellor Gordon... Read More

Getting A Second Extension to File 2004 Taxes

Millions of people file tax return extensions every year. The... Read More

Gambling Income and Expenses - Tax Requirements

Hit a big one? With more and more gambling establishments,... Read More

Estate Taxes - It Pays to Plan Ahead

Estate taxes. It's not enough to simply know they exist,... Read More

Slash Tax when Buying a Business

When buying a business, how the "purchase price" is made... Read More

Insider Guides to IRS Audits!

Ever wish that, as a business owner, you knew exactly... Read More

Alas! In E-Commerce Taxland

In trying to comply with tax laws for your e-business,... Read More