Who knew that there was a loophole to the saying that the only certain things in life are death and taxes?

The average American pays about $10,800 in taxes every year depending on their tax bracket.

Most Americans pay a tax rate between 17% to 26% based on their tax bracket.

Contrary to popular belief, wealthy people pay about a 27% income tax rate. It is the large corporations, like Amazon or Facebook that really get away with Paying Taxes legally.

Now, you can’t legally get away with not paying taxes. But there are numerous ways you can technically get away with not paying federal taxes.

You just need to understand how the system works.

Now keep in mind that I am not suggesting that you should avoid paying taxes. Unless you hide hundreds of thousands or millions of dollars from the IRS, you wouldn’t necessarily go to prison.

You can’t pay the IRS back or pay penalty fees from prison. So, what would happen is that you would spend a long time getting your pay garnished to pay back taxes.

What I am talking about is legal ways that you can get away with not paying taxes.

In fact, about 47% of Americans never pay federal income taxes.

However, the reason so many people don’t pay taxes is that they just don’t make enough money to qualify to Pay Federal Taxes.

And there are a couple of other legal ways to get out of paying taxes.

Make an Entry Level Salary

Many people who don’t pay federal taxes make a salary that is less than the requisite baseline required to pay taxes.

If you make less than $25,000 annually, you are not required to pay federal taxes.

Take Advantage of Tax Credits

A tax credit is essentially free money if you can find one that can mitigate your tax obligations. You just subtract the tax credit amount from your income to determine your lowered tax bracket.

Tax credits can efficiently reduce the amount of taxes you legally owe. Often, if you claim the appropriate tax credits, you can receive an ample tax refund.

If you carefully examine all of the purchases you have made throughout the year, you may be able to learn that you are owed money back via tax credits.

There are five overall IRS tax credit categories, and 17 tax credits, that you can take advantage of to help you reduce the taxes you pay. If you qualify for enough, you may not pay any federal taxes for a given year.

Deductions

If you make enough legal, itemized deductions, especially relative to family, business expenses, or education, then you may pay nothing in taxes.

Become a College Student

Go back to college. The IRS offers numerous tax deductions and credits relative to education which would reduce your taxes significantly.

No One Escapes Taxes

Please remember that I started out writing this article saying that “technically,” you could get away with paying no taxes.

Even if you make less than $25,000 annually and are exempt from federal taxes, you will still pay local and/or state taxes via payroll and sales taxes.

Read More

WHAT ARE THE JOBS THAT MAKE $1000 A WEEK

HOW TO GET PAID FOR ADVERTISEMENT ON YOUR CAR

5 MONEY LEAKS TO PLUG FOR MORE SAVINGS

What Are The Best Classic Cars for Investment?

How to Trade a Car You Still Owe Money On

The post How to Technically Get Away With Not Paying Taxes appeared first on Fine-Tuned Finances.