Source: ezinearticles.com
Looking for a way to keep the IRS from messing with your income tax? There are things you can do to protect your wages. There are types of income that old Uncle Sam can't get his hands on. The law keeps the IRS from taxing these incomes and you need to know what they, income tax bracket, are. Keep a little bit more money come tax time.
Municipal bonds issued by your state is income that that can't be taxed. As the value grows so does your benefit. By placing a certain percent in these types of bonds you can save yourself a nice chunk of chance from the tax man. These types of bonds are easy to get and have low risk of losing all your money.
Car-pooling is another type of income that is not taxable. If you receive income from all the members of your car-pool to cover cost of gas and repairs then that income is not included in your income. Since that money was used to cover all expenses of the car-pool that means you have no additional income and there for cannot be taxed. Think about that the next time you are going to work by yourself.
Instead of taking a regular wage increase try to get it a little bit differently. Since health insurance premiums paid by your employer are tax free see if your employer will put the money towards that instead. By paying down your deductible you will not be put in a higher tax bracket plus you get to pay less for insurance. That is you a net boost in wages without the IRS taxing your additional wages. This works the same with life insurance with your employer. They pay more of your premium, you save by paying less and the employer writes it off on there taxes.
You could also talk to your employer about using your raise to send you to school. Your boss can deduct up to $5,250 a year in educational assistance off there taxes which you can use to get an education. As long as you are not going for sports, hobbies, or games you will be fine.
I think now you are starting to see a pattern. These types of income are non-taxable so by converting your taxable income this way you get to keep more of your wages. The IRS as a long list so you have to work it to your advantage. They are not going to do this for you so look for every opportunity you can to convert that income to save you on taxes.
Tax advice is available for all self employed people out there by going to: Filing Taxes. If you are not self employed and would like to be then check out: http://www.allproman.com/nichemarketing/