What Does It Take To Pay Zero Taxes

How often have you heard someone say, "I don't pay any taxes. My accountant does a really good job doing my taxes... I haven't paid a dime in taxes in years."

Does that outrageous statement sound familiar?  Perhaps it's your brother in law, or a fellow soccer mom, or maybe a friend or even a co-worker at your workplace.  And then you start thinking "What am I doing wrong? Why do I pay so much in taxes?  Why am I paying taxes and so-and-so says he/she pays no taxes?  

So how do they do it?  How can someone pay no taxes?  Is it possible to pay zero taxes?  Is there really a secret to pay zero taxes? 

Well the fact is that these people you hear say that are not doing something you or anybody should be doing.  Don’t worry!  You may not be doing anything wrong with your taxes.  Do not be envious of someone when you hear them brag about this absurdity and this is why… 

First of all, If you really want to pay no taxes, you may want to invent a time machine and travel back in time because, as of today, there isn’t really a way to pay no taxes, unless you lie about it when you do your taxes and lying on your taxes will get you in a whole lot of trouble with the IRS. 

It seems as if the saying: “if it sounds too good to be true, then it probably is” can apply to many things in life and this includes taxes.  So when you hear those people making those over exaggerated remarks about not paying any tax and getting huge refunds on their income tax, they are doing something that is wrong.  They may get away with it for some time, but there is a very good chance that they will get caught by the IRS.  When this happens, they will regret they ever did this because once the IRS finds out about all the lying, they are going to be charged so much money in tax penalties and interest that they are going to wish they never did this.  And what’s worse, they will most probably end up in jail for years because lying and cheating on your income tax is considered a crime. 

Sometimes a person may be in need of more money and he/she may be tempted to exaggerate on their taxes for better financial benefits, but lying in your taxes will not only get you in trouble; it will cause other people to pay more in taxes and many of these people may be in as much financial need as you. 

While there is no way to beat the tax system and pay no taxes unless you are lying on your tax return, there are many ways to get bigger refunds on your taxes or owe less if you made more profit. If you want to get a higher tax refund, or pay less on your taxes, then the combination of knowledge along with honesty is the key!  Try to be as knowledgeable as possible about all the tax deductions you can benefit from and honestly claim them on your income tax.  You can consult with a tax professional to help you get the most out of your taxes.  If you hire someone to do your taxes, you will have to make sure the tax preparer is not going to be fabricating anything on your taxes.