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Believing These 5 Myths about Taxes Keeps You from Prospering

Taxes bug everyone, but they could bug you a whole lot less if you took the time to truly understand how the tax system works and that it is your responsibility to legally and ethically reduce your own taxes. It is possible, by up to 50%, if you stop believing these 5 tax myths that keep you yoked to a government machine unnecessarily:
Myth #1: A huge tax bill is inevitable and inescapable. This pernicious myth has evolved over the years due to the continued expansion of government, which has required more taxes to sustain its girth. Taxes have become the largest expense for many people, exceeding what they pay for food, clothing, housing, and transportation combined.
The truth is, the IRS gets away with taking far more money from you than even it requires simply because you don’t know any better. Learn more about how to pay the correct amount ofBookCover taxes by visiting www.taxreductioninstitute.com and by reading the book MONEY: What Financial “Experts” Will Never Tell

Myth #2:  A large and complex government supported by citizen tax dollars is necessary. Through an attitude of entitlement many Americans are unknowingly subjecting themselves to larger and larger tax burdens. Tax-supported social programs are getting harder to fund as more people sag under the financial burden of such programs. Now is the time to ask yourself if you can really afford to continue believing the myth that a large and complex government is necessary, especially when it is getting increasingly more difficult to support. Abandoning an attitude of “entitlement” and embracing the Money Mastery Principles that promote self-reliance and self-control will go a long way to reducing overall tax burdens.
Myth #3:  Questioning the system and trying to take the most advantage of it increases my chances of getting audited. This is absolutely untrue. The people who believe this myth only do so because they don’t know about all the “good” tax laws they could take advantage of and are therefore living in fear. Remaining in the dark about tax law and just paying what you think you must without learning what is really expected might seem like the “safe” path to take but it’s actually a foolish one. Learn the rules here.
Myth #4:  My tax refund gives me extra cash I can use to purchase things I’ve been waiting for all year. Because automatic payroll tax withdrawal has become so commonplace, most people don’t ever think to question the way they are taxed at this level, defaulting to the notion that it’s acceptable to have a large amount of income tax withdrawn from their paycheck each month. “After all,” they reason, “I’m going to get most of it back at the end of the year.” Many people look forward to their tax refund as some sor of “rebate” or “gift” the IRS is giving back to them without considering that the government has had use of their money all year! This prevents them from using that cash to pay off debt, make more money, etc.
Instead of waiting on the IRS for use of your own money, it’s always best to have access to as much of it as possible throughout the entire year by ensuring that you do not have too much income tax withheld from your pay. Paying only as much income tax as you are required to by law throughout the year, even if that means being prepared to pay little more on April 15 is the smart way to manage your finances. Go to www.irs.gov to use their W-4 withholding calculator to be sure you are having the right amount of money withheld each month.
Myth #5:  My accountant takes care of my taxes.  This is the worst myth of them all and makes more money for the IRS than anything else. Believing such a myth is like eating nothing but fat-fried foods, ignoring the symptoms of heart disease, and then going to your doctor and expecting him to make you well. Likewise, if you don’t know the rules for good tax health you can’t go to your accountant at the end of the year and expect him or her to save you thousands of dollars in taxes. If you don’t know what to tell your accountant he/she will usually err on the side of conservatism with regards to deductions and you will pay LOTS more than you need to! Learn the rules so you can work with your accountant to take the most deductions you can with confidence.

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