Four Tax Myths that Are Real Wealth Suckers

Overpaying taxes is a preventable wealth destroyer that many Americans fall prey to. Asking only what our country can do for us has caught up with the American public, and we are now taxed excessively to compensate.  Here are four tax myths that work to perpetuate this never-ending over-taxation of which you need to be aware. As you become better educated about the way taxation really works, you can learn how to legally and ethically reduce your tax burden by up to half.
 
Tax Myth #1: A huge tax bill is inevitable and inescapable.
Due to a lack of education and literacy in tax matters, the IRS gets away with collecting more than is their due. Submission to overly excessive taxes is not necessary. By learning and applying the Money Mastery principles you can learn how to pay only what you owe, when you owe it, and nothing more.
 
Tax Myth #2: A large and complex government is necessary.
This mindset fuels the flames of needless government expansion and spending. Consumerism and entitlement have led to an ever-increasing expectation of what the role of the government is, and what it needs to provide. This false assumption is what leads many to roll over and be taxed more than what they owe. Instead, were we to adopt the attitudes of self-reliance and responsibility upon which the principles of Money Mastery are founded, government spending could be reduced drastically, thus reducing tax bills.
 
Tax Myth #3: Questioning the system increases my chances of an IRS audit.
Again, this is a false assumption that leads many to remain in financial and tax ignorance, all the while losing money that is rightfully theirs. A deeper understanding of tax laws and regulations will help be more confident in applying tax laws, and paying an appropriate tax.
 
Tax Myth #4:  My accountant takes care of my taxes.
This is probably the most expensive myth to believe in of them all. To entrust the allocation of your funds solely to anyone else is usually risky business, and in this case even doubly so. You cannot bring a box full of receipts to your accountant at the end of the year and expect that he or she will be able to save you tax money or help you take all the tax deductions you are legally entitled to. It is your job to know basic tax rules and to document and keep organized all your activities  so that your accountant can take deductions with confidence. Accountants are motivated to err on the side of caution in the IRS’s favor when faced with a decision. Becoming more familiar with basic tax requirements is the best way to save money, increase freedom and self reliance, and still legally meet all your financial obligations. Applying simple principles and “knowing the rules of the game” are invaluable when it comes to taxes.
To learn more about why taxes are such a key part of the financial puzzle and must be understood in order to create wealth on ANY income, contact us today.