Congress has told the IRS to reimburse you for your sign-up
fees, product purchases, marketing materials, and even
out-of-pocket costs! Details in this Special Report.
Are you like me? Do you hate it when someone offers to give
you some really valuable information, but then they make
you wade through 12-15 pages of "preliminaries" before
finally getting to the point? Once you get to "the point,"
it usually does deliver on the promise of incredible value,
but why should we have to wade through so much verbiage
before getting there?
Do you hate that? Me to, so, in this Special Report, I'll
get right to the point, and then I'll fill you in on the
background.
So here's… "The Point"
The point is, when you have a qualifying home-business, you
can reduce the amount withheld from your pay for taxes,
which will increase the amount of your take-home pay from
your "day job."
Here's why: Congress told the IRS to give huge tax
deductions to people who have a small or home-based
business. When you can claim more deductions, you'll pay
less in taxes. When the amount of taxes you're required to
pay decreases, the amount of money withheld from your
paycheck should also decrease. When your paycheck
withholding decreases, your take-home pay increases.
Usually by hundreds of dollars per month!
The net increase in take-home pay usually is more than
enough to cover the costs of running your small or
home-based business - costs like sign-up fees, product
purchases, marketing materials, and even out-of-pocket
costs.
Say, What? That's the bottom line. Now here's a brief
explanation… Congress wants to encourage as many of us as
possible to have a small or home-based business. It's good
for the overall U.S. economy and good for economic
stability.
Money is a great motivator for the vast majority of us, so
Congress passed legislation to give huge tax breaks to
those of us who recently had, currently have, or are
willing to start, a home-based business.
Most of those "breaks" have come in the form of a long list
of legal tax deductions ranging from Rent and Utilities, to
Furniture and Furnishings, to Vacations and Entertainment,
to use of your Car and Truck, to the Kids' Allowance and
even sometimes Pet Food! The list goes on and on.
For the right kind of home business, these deductions can
literally slash your taxes in half or more!
You may be thinking, "I don't want to wail until next April
15th to have Uncle Sam "pay for" the home business I'm
running right now!" You say… "Gimme My Money NOW!"
At the top of this Special Report, we said you can get
Uncle Sam to 'pick-up' the costs of running your small or
home-based business - costs like sign-up fees, product
purchases, marketing materials, and even out-of-pocket
costs.
Tax deductions are great, but does that mean you have to
"carry" all of the expenses of running your home-based
business all year long on your own, and then get repaid in
the form of a Tax Refund the following spring?
NO. As mentioned earlier, you can begin getting hundreds of
dollars per month in cash payments starting almost
immediately.
Here's how that works… Out of every paycheck, before you
even see it, your employer has withheld money, mostly for
taxes. Most people do not understand the purpose of
withholding taxes. If you've ever owned a home, you
probably understand the term "escrow." It means that, with
each month's house payment, the mortgage company is also
collecting and "holding onto" 1/12th of your annual
Property Taxes. That way, when the tax bill comes in, your
mortgage company has the money "saved up" to pay it for
you. Assuming your property tax amount does not change
mid-year, when the bill comes in the mortgage company will
have "in your escrow account," exactly the amount needed to
pay it off.
Withholding taxes work exactly the same way. The number of
Allowances you put on your W-4, a form you filled out your
first day on the job, tells your employer how much you
expect to owe in Income Taxes during the course of the
year. The employer, then deducts a pro rata amount from
each paycheck.
To use round numbers, let's say you expect to pay $12,000
in Income Taxes this year (about the amount someone making
$40,000 would normally pay). If you get paid once a month,
your employer will withhold $1,000 from each of your 12
monthly paychecks. If you get paid twice a month, your
employer will withhold $500 out of each of your 24
paychecks. So by year-end, they will have withheld exactly
$12,000 to cover your taxes.
In theory, just like "escrow," the amount withheld during
the course of the entire year, should come out to exactly
what you owe in taxes. If your number of Allowances was
computed accurately, at the end of the year you will owe no
additional taxes, and you will get no tax refund. That's
the way is should be.
Now, let's say that, thanks to your home-based business and
the tax breaks you are just starting to learn about, you
compute that your taxes are going to be reduced by 50%
(which is realistic for many, many people).
Guess what? Your employer now will only have to withhold
half as much taxes from each of your paychecks. Borrowing
from the previous example, if your employer was withholding
$1,000 per month for taxes, they now will only have to
withhold $500!
Any idea what happens to the other $500?
It shows up in your paycheck, putting an extra $250 cash in
your pocket per month, every month for the rest of your
working life!
It's almost like giving yourself an "automatic pay raise!"
That's "The Point" For most people that "automatic pay
raise" is more than enough to pay for your home-business
start-up fees, product purchases, marketing materials, and
even out-of-pocket costs.
Now you know how you can get Uncle Sam to 'pick-up' the
costs of running your small or home-based business. BUT
WAIT!
It doesn't happen automatically! In order to get your
employer to withhold a different amount (i.e., less!) from
your paychecks, you must go to your company's payroll
office and fill out a revised W-4 Form, claiming additional
Allowances. The more Allowances you claim, the less money
withheld from your pay; the fewer Allowances, the more
money withheld.
By the way, the term "Allowances" has absolutely nothing to
do with the number of people in your household. Allowances
are not in any way related to the terms "Dependents" or
"Exemptions." Many people with a home-based business claim
6 or 8 or 10 or even more Allowances, because they know
they will qualify for a large number of the tax deductions
passed into law by Congress for home-business owners.
It is important to accurately determine the value of the
tax breaks that you will qualify for, which is information
you will need in order to accurately determine how any
Allowances to claim on your revised W-4, so that you don't
end up owing the IRS money at the end of the year.
How Quickly Can I Get My "Pay Increase?"
How soon will your "automatic pay raise" take effect? The
answer will pleasantly surprise many people. By law, any
employee may submit a revised W-4 at any time. And, by law,
the changes in withholding must be reflected in the
employee's very next paycheck (or the next one after that,
if payroll is already being processed at the time your new
W-4 is submitted).
Depending on how often you are paid, the "extra cash"
should begin showing up in your paycheck within a week or
two! That should put a few hundred extra dollars in your
pocket every month.
A few HUNDRED dollars extra cash every month is fabulous,
but what would you say if I could ALSO show you a one-time
opportunity to ALSO put a few THOUSAND dollars ADDITIONAL
extra cash in your pocket, courtesy of Uncle Sam?
Could You Use an EXTRA
Few Thousand Dollars?
Almost all of the home-business tax breaks we have been
discussing, also apply retroactively to the past three tax
years. That means if you had a home-based business in any
or all of the past three years, you may be eligible to file
a Form 1040X, Amended Tax Return, for those years, and
claim thousands of dollars in retroactive refunds, and the
IRS will even pay you Interest on the money they refund to
you.
How much is it worth to file Amended Returns?
Most people who had a qualifying small or home-based
business in 1998, 1999 or 2000, can get Refunds of at least
$1,000-$2,000 for each of those three years - plus
interest! So, your total refunds could be in the range of
$3,000 to $6,000, and often the total is far more!
This is not like the "automatic" refund of up to $300 (or
$600 for taxpayers who file a joint return) which the IRS
mailed out to most taxpayers in 2001.
YOUR refund for filing Amended Tax Returns (which is worth
ten-times more than the $300-$600 "tax-windfall," as the
media called it) is a Refund you will only get if you file
a claim for it.
Filing the claim is not difficult, but if you don't file
your claim, Uncle Sam gets to keep the money that could
have been Your Refund!
We all have a legal, moral and ethical obligation to each
pay our fair share in taxes. But none of us is required to
pay more than our fair share.
How Much Would You Pay for Step-by-Step, Authoritative
Guidance Regarding Everything in this Report?