How to Pay Zero Taxes (2010 Edition) by Jeff Schnepper

By Jeff Schnepper

Not like such a lot different tax publications, tips to Pay 0 Taxes makes a speciality of tax saving, no longer tax practise. Jeff Schnepper stands except the gang of tax-book authors through developing an easy-to-read, easy-to-apply advisor that explains what humans rather care approximately "paying" much less to the IRS!

This up-to-date version covers extra deductions than the other such e-book, together with these relating to baby care and elder care, activity searching costs, mortgages and issues, funding bills.

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If your employer uses your wages to pay your debt, or if wages are attached or garnished, the full amount is still considered received by you and must be included in your income. The same is true of fines or penalties withheld from your pay. How Our Tax System Works 9 Vacation allowances paid to you from a vacation fund are wages and are also included in your income. Severance pay as well is taxable. A lump-sum payment for cancellation of your employment contract is income in the year you receive it.

In the case of lodging (but not meals), you must accept the lodging at your employer’s place of business as a condition of your employment. This means that you must accept the lodging to carry out the duties of your job properly, for example, if you must be available for duty at all times. Lodging includes the cost of heat, electricity, gas, water, sewerage service, and similar items that are necessary to make lodging habitable. 22 Chapter Three With reference to meals, you may exclude from income the value of meals provided to you during working hours so that you can be available for emergency calls, or because the nature of your employer’s business restricts you to a short meal period.

Unfortunately, this does not apply to cash distributions such as bonuses. 7 “Expenses of Your Employer” The law does not tax reimbursement expenses that are true reimbursements for expenses of your employer rather than income amounts truly compensatory in nature. Under this category are such items as reimbursements for cab fares and the payment of supper money. Rather than being excludable on the basis of statutory or constitutional language, these items are truly nontaxable as the result of Internal Revenue Service recognition of the impossible administrative verification problems in auditing such expenses.

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