Why You Shouldn’t Feel Bad About Using Tax Deductions
If you’re a business owner or professional, then one of the best ways to mitigate the taxes that you pay to the government is by making use of deductions where you can find them.
However, a lot of people experience an odd sense of guilt, thinking they’re not paying their “fair share.”
However, there are good reasons to make use of your tax deductions without having to worry about it.
You’re legally entitled to them
Tax evasion, i.e. using means to hide your taxable income so that you do not have to pay on it, is illegal.
Tax avoidance, i.e. mitigating how many taxes you have to pay by using the laws set up the IRS, is not illegal.
It’s a practice everyone takes part in, to one degree or another.
Just make sure that you are doing so with the help of a licensed accountant, so that you are not inadvertently doing anything that can get you flagged for a costly and time-consuming audit.
Do you know what your taxes are funding?
You may have a desire to see your money being used for the public good, but if you knew how your money was actually used, then you might not be as swift to jump to the defense of taxes.
Your business taxes go in a lot of directions: some of it to entirely worthwhile causes such as disaster relief, land management, education, housing, and health care.
However, some may be less happy about how much of their taxes go to fossil fuel industries, defense contractors, and less-than-efficient government agencies.
You don’t have a say in where your taxes go and you need to pay them, but it’s worth knowing what you’re paying for.
Could your taxes be paying for the government’s own past mistakes?
The history of the US and, in particular, the Bureau of Internal Revenue, is a lot muddier than some might think.
There is some speculation that the second constitution (out of the four that we have had) was signed with the intent of pushing national Conferedate Government’s bankruptcy onto the public at large. Whether or not this is strictly true, a lot of people look at the close connection of these events with understandable skepticism.
You could be missing out on a lot of money
There are a lot of tax deductions that many individuals and business owners tend to miss out on.
As mentioned, you are legally entitled to claim deductions on a range of things such as unreimbursed job and moving expenses, investment expenses, tax preparation fees, and even hobby expenses.
Take a good look at the most overlooked tax deductions and see if you could be saving even more money.
You’re not always going to necessarily get a refund on tax deductions that you miss, so it will pay to be thorough.
When you’re making tax deductions, always be sure to do so within reason.
The help of a chartered accountant is always recommended since you don’t want to leave any red flags that could inadvertently set you up for an audit.