“The hardest thing in the world to understand is the income tax.” - Albert Einstein, physicist. Well! It may be connected to his theory of relativity but, being a physicist that he was, he didn't think of the U.S. tax system in reverse. It would have been a lot easier for him if he understood two things:
- The more you make, the less you pay - ever heard of loopholes?
- The less you make, the more you pay - never heard of loopholes?
Filing tax returns, for some, is like going to the dentist. If you have flossed once a day and brushed twice a day regularly, then going to the dentist should be a breeze and not something to dread upon.
So keep records of all your income and expenses. Figuring out your tax returns should be a breeze as well.
Always remember this golden rule:
You earn your money in pre-tax dollars but you spend them in post-tax dollars.
Don't try to fool IRS
Al Capone was not sent to jail by Eliot Ness
Al Capone was sent to jail by IRS
Australian tax calculator