Income Tax Time

Well, it is nearing the dreaded date of April 15th. For most people in the United States, this date brings dread, fear, anxiety, and other nasty emotions. This is the date when the personal income tax filings are due.

Over the last six months, I called attention to a number of strategies to reduce your taxable income legally and lawfully. Tax avoidance is very legal. It is described as the legal utilization of the tax regime to one's own advantage, in order to reduce the amount of tax that is payable by means that are within the law. Or a more practical example, you choose a different route (probably slower, though) to go home which has no tolls as opposed to one that has tolls. This is tax avoidance. And it is very prudent to avoid any unnecessary taxes.

Tax evasion on the other hand, is the general term for efforts to not pay taxes by illegal means. This is using tactics that are not within the law to get out of paying taxes that are due. Notice in each description, there is the reference to the law. Knowing the many volumes that contain the tax code is very difficult to say the least. However, it does have many obvious benefits.

If you are not inclined to take the time to get familiar with the tax code, one of the best alternatives is to have an expert prepare your tax return. There are many tax return businesses available in most parts of the country, so choose one that is highly recommended and one that is not likely to cut corners too much to risk a tax audit. These are never fun.

If an expert tax preparer is not an option, another option is to buy some tax return software such as Turbo Tax from the company Intuit Inc. (there are others as well). It will walk you through your return electronically by asking you pertinent questions. Your answers are used to fill in the appropriate space on the actual forms. In this way, you do not have to be familiar with the forms, and not a tax expert either, for the software program is up to date on all the latest tax law changes.

The point is that you should use all available tax avoidance strategies as possible. If you read my series on the History of Money (beginning January 28th) and heard of the Grace Commission (February 7, 2008 post), you'll know why.

Then the Pharisees went out and laid plans to trap him in his words. They sent their disciples to him along with the Herodians. "Teacher," they said, "we know you are a man of integrity and that you teach the way of God in accordance with the truth. You aren't swayed by men, because you pay no attention to who they are. Tell us then, what is your opinion? Is it right to pay taxes to Caesar or not?"

But Jesus, knowing their evil intent, said, "You hypocrites, why are you trying to trap me? Show me the coin used for paying the tax." They brought him a denarius, and he asked them, "Whose portrait is this? And whose inscription?"

"Caesar's," they replied.
Then he said to them, "Give to Caesar what is Caesar's, and to God what is God's."

When they heard this, they were amazed. So they left him and went away. Matthew 22:15-22 (NIV)

If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com