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How can you legally escape taxes?
Escaping Taxes: Fact or Fiction? Escaping taxes is a rather taboo subject, and not one that is openly discussed. Just ask Willie Nelson or Wesley Snipes. Chances are you won't hear people secretly whispering about it while riding on the subway and it certainly won't be preached to you in church. So you're left wondering: "Can you legally escape taxes?" And the answer is, "Not really."If you were to attempt it, your best bet would be not to work. If you earn less than the minimum ($3,300) you don't have to file. Note that the $3,300 figure is for money earned as an employee and listed on your W2, not self-employment. If you get married and one of you works, then file separately and only that person will have to file. That will avoid the majority of tax (i.e. income tax). You could also move to a state that doesn't have sales tax. And forgo owning a home.But seriously, taxes pay the salaries of your cities public workers and the folks that bravely defend our nation (i.e. armed forces). Taxes are what we pay to be part of a civilized society. Consider them your dues. Yes, it hurts to give up that hard earned money, but if you have a full-time job you likely have benefits included and those affect your pay even though you don't see them. There are tons of ways to cut down your taxes, but don't drive yourself crazy trying to get out of them all together. Fact is, look at the statistics and you'll see A LARGE percentage of people actually don't pay tax, but get $$ back (through credit features like the EIC), from the Feds. Hence, for many with low incomes it PAYS to file! And even if you avoid income taxes you will still be paying taxes on many purchases as well as other taxes such as real estate, etc. Tax Protestor Arguments You may find a number of different suggestions on how you can accomplish paying no tax. Things like "opting out of...", filing 0 based returns, claiming wages aren't income, taxes are voluntary, Federal tax is only applicable to residents of D.C., etc., etc. These are certainly attractive arguments to escape tax liability/responsibility. These are frivolous, protestor-type arguments and have all been found not only baseless, but have been found so in all courts and proceeding for so many reasons, that there are now even special penalties for anyone that tries to, apparently without bothering to investigate the positions, use them.Below is a link to an agreeably IRS site, that lists many of these arguments and brief reasons why they fail. If you are not comfortable relying on the IRS for advice, do your own research and look at the independent court cases, etc. Maybe even consider that many, many intelligent people, who make substantial incomes, and have devoted their working lives and interest to tax/law and reducing their own or others taxes, wouldn't and don't suggest these arguments. (Generally, someone trying to get $29.95 for their "amazing discovery" that everyone wants to keep secret, or such, is).Finally... wouldn't you be much happier to go down in history as the US citizen that paid the MOST taxes ever! (Lots of people make nothing of their lives (and in financial value), while taking more of everything than they produce...that seems to be easy).The whole subject of taxes is a very legitimate discussion because it involves the whole community and most importantly your money! You worked for it!! Therefore you should at least be aware of what you are getting out of what's being spent. And of course, you will find, this is the crux of the issue. Is the money being spent well? Is it all accounted for? Can the tax issue be reformed to better suit the needs of the general public?So, basically, it's obvious there will much conflict over such an intimate subject. Not only is a percentage of your labor being spent for you, it's being spent in the name of the community or nation as a whole. This may benefit some while not benefiting others. It is a very moral issue. This is why those that favor taxes, especially high taxes, claim it is a citizen's duty to pay taxes. [Remember too that someone who agrees with paying taxes, especially those that want to pay lots of taxes, are generally not going to encourage you to pay less or no taxes. It is against 'their' interest. Just as paying taxes may not be in 'your' interest.]Most importantly, be involved. If you want taxes have a good strong stance on your position. Set a good example and act on your idea of what needs to happen in society and how to accomplish these goals. It's not just the duty of a citizen to adhere to the laws but to uphold and/or repeal them.
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It is recommended that you keep your tax returns at least five years after you file.
Yes, your marriage has to be legally recognized, but some states have common law marriage where you're recognized as legally married without a marriage license. If you became …legally married in a common law state, your marriage is recognized federally. It is also recognized by other states that don't have common law marriage if you move to another state after establishing a common law marriage. As long as your common law marriage remains valid and you haven't separated, you can file jointly for federal and state tax purposes. It appears that the following states have common law marriage laws: Alabama, Colorado, Kansas, Rhode Island, South Carolina, Iowa, Montana, Utah, and Texas (and the District of Columbia). If you established a relationship in one of these jurisdictions, you'll want to see if you have a legal marriage under the area's common laws.
Many plans allow employees to take http://www.answers.com/topic/loan from their 401(k) to be repaid with after-tax funds at pre-defined http://www.answers.com/topic/interest. …The interest proceeds then become part of the 401(k) balance. The loan itself is not taxable income nor subject to the 10% penalty as long as it is paid back in accordance with section 72(p) of the Internal Revenue Code. This section requires, among other things, that the loan be for a term no longer than 5 years (except for the purchase of a primary residence), that a "reasonable" rate of interest be charged, and that substantially equal payments (with payments made at least every calendar quarter) be made over the life of the loan. Employers, of course, have the option to make their plan's loan http://www.answers.com/topic/provisioning-disambiguation more restrictive. When an employee does not make payments in accordance with the plan or IRS regulations, the outstanding loan balance will be declared in "default". A defaulted loan, and possibly accrued interest on the loan balance, becomes a taxable distribution to the employee in the year of default with all the same tax penalties and implications of a withdrawal. Loans are paid back by post-tax monies, so there are substantial tax implications in taking a loan from pre-tax monies. Virtually all employers impose severe restrictions on withdrawals while a person remains in service with the company and is under age 59½. Any withdrawal that is permitted before age 59½ is subject to an http://www.answers.com/topic/excise-1 equal to ten percent of the amount distributed, including withdrawals to pay expenses due to a hardship, except to the extent the distribution does not exceed the amount allowable as a deduction under Internal Revenue Code section 213 to the employee for amounts paid during the taxable year for medical care (determined without regard to whether the employee itemizes deductions for such taxable year). The tax code legally defines hardship as: # Purchase of a primary residence (specifically excludes mortgage payments) # To avoid foreclosure of, or eviction from, primary residence # Payment of post-secondary education expenses for the next 12 months for the employee, his/her spouse, or dependent(s) or beneficiaries # Medical expenses not covered by insurance for employee, their spouse, or dependent(s), or beneficiaries which would be deductible on a federal tax return (e.g. non-essential cosmetic surgery would not be acceptable) # Funeral expenses for the employee's deceased parent(s), spouse, child(ren), or dependent(s) or beneficiaries (as of http://www.answers.com/topic/december-31-1, http://www.answers.com/topic/2005) # Home repairs due to a deductible casualty loss (as of http://www.answers.com/topic/december-31-1, http://www.answers.com/topic/2005) In any event any amounts are subject to normal taxation as ordinary income. Some employers may disallow one, several, or all of the previous hardship causes. Someone wishing to withdraw from such a 401(k) plan would have to resign from their employer. To maintain the tax advantage for income deferred into a 401(k), the law stipulates the restriction that unless an exception applies, money must be kept in the plan or an equivalent tax deferred plan until the employee reaches 59 ½ years of age. Money that is withdrawn prior to 59 ½ typically incurs a 10% penalty tax unless a further exception applies.  This penalty is of course on top of the "ordinary income" tax that has to be paid on such a withdrawal. The exceptions to the 10% penalty include: the employee's death, the employee's total and permanent disability, separation from service in or after the year the employee reached age 55, substantially equal periodic payments under section 72(t), a http://www.answers.com/topic/qualified-domestic-relations-order, and for deductible medical expenses (exceeding the 7.5% floor). This does not apply to the similar http://www.answers.com/topic/457-plan.
If you gave any one person gifts that are valued at more than $15,000 (in 2012), you must report the total gifts to the Internal Revenue Service and may have to pay tax on the… gifts. The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value. Gifts include money and property, including the use of property without expecting to receive something of equal value in return. If you sell something at less than its value or make an interest-free or reduced-interest loan, you may be making a gift. There are some exceptions to the tax rules on gifts. The following gifts generally are not taxable and do not count against the annual limit:Tuition or Medical Expenses that you pay directly to an educational or medical institution for someone's benefitGifts to your SpouseGifts to a Political Organization for its useGifts to Charities If you are married, both you and your spouse can give separate gifts of up to the annual limit of $15,000 to the same person without making a taxable gift. Alternatively, with consent from your spouse, you can make a gift of up to $30,000 ($15,000 x 2) to the same person without making a taxable gift. This is commonly known as splitting gifts between spouses. Essentially, it means a gift by you or your spouse to a third person can be considered as made one-half by each of you provided there is consent by both spouses.
The colonists believed that each colony could be an individual nation. Therefore, they believed that solely their individual nation's government could tax them. Once states we…re formed, they believed that state government had authority over taxation.
I believe the 16th Amendment details the Income Tax, though there is controversy as to whether or not it was passed legally.
If you are an American, then here's one way: Find a job with a compay that sends you overseas, or be self-employed as a consultant working overseas. The first 80,000 bucks are… tax free as far as the IRS is concerned.Other than that.... Good luck, and let us know what else you discover, because a lot of us would like to stop paying taxes. ;-(
In Canada, GST (Goods and Services Tax, a value added consumption tax) is added to most postal products, including stamps. The exception: No GST is charged on packages being s…hipped outside of Canada that require over $5 postage. Yes, Canada Post is a "Crown Corporation", which is a company owned by the federal government, as opposed to a federal department, or federal ministry. The price of the stamp is the cost of shipping, and the GST is the tax revenue from the service provided. No, Provincial sales tax (PST or HST) should not be added to the service provided by a federal crown corporation.
Only a government actually bills you for property tax...and I can't imagine they ever would charge sales tax on that, anyplace. If your paying the bill through someone el…se, say through your landlord or a lender, well you really aren't paying the tax...your paying rent or such, with some itemization of charges (he pays the tax), and if the item being rented (the primary bill) is actually taxable, this part of it is too.....makes no difference what it's called on the bill. Just like his salary isn't slaes taxable...if he charged you less rent and identifed/included an amount as his salary on it to total the same, it wouldn't be any less taxable.
If they have tax exempt income for items such as a Roth IRA, then they do not have a tax burden. Also, it possible with low income and tax credits such as the child tax cr…edit, Hope credit, and earned income credit, so have your total income tax reduced to zero.
Income tax is the only legal direct tax.
In US Civil War
A poll tax is illegal because it prevents minorities from voting.
http://www.youtube.com/watch?v=bd0FjEWHnRg now if you are just talking about income...If a foreigner is not working for a foreign government assigned to the U.S. or is not w…orking for a non-profit religious organization, then the foreigner would have to pay taxes on all U.S. based income as a non-resident, and if in the U.S. for 183 days or longer, as a resident on all earnings.