June 15th marks the first day that you receive your first paycheck for you to keep. Since the first of January, your paycheck went to the government to pay your yearly income taxes! Take a moment to think about that. That’s six month and 15 days to pay your biggest bill: Your federal income tax. Between the state and federal, most pay about 48% on each dollar you make. That’s 48 cents per dollar!
So, how can you lower your tax bill? Especially, if you are in the blue or white collar pay range? ($30,000 to $70,000 yearly salary). The first is to find yourself a good accountant who knows the laws and the loop holes. Two, find yourself something to invest in business-wise so that you can garner some nice tax deductions and possibly make more money (for the government to tax you on). Next, get good at it and grow it. Be sure on the way to doing this side business that you incorporate yourself and that business. When you do this you give yourself legal protection and you get better tax breaks.
Don’t believe me? Read a book called “How to Pay No Taxes.” By the time you get to page 30, you will be trying to find someone to help you incorporate into a C-corp and taking all the tax advantages you can to lower your tax bill.