Correct Tax Withholding

According to IRS.gov, over 80% of Americans overpay the Federal Government in taxes by an average of $2,100. This equates to almost $40 a week. This money should be working for you, not the government.

The IRS states that, although this may be a "forced savings" for you, the Federal Government will earn interest on your money and you will not. The IRS recommends adjusting your W4 annually or when your status changes, such as marriage, child, etc. The IRS also recommends using this money to place in a savings account or investing so that you and your family earn the interest.

You should bring the tax you pay to the tax you owe. In other words, as close to zero owed or they owe you as possible.

Recommendations are to start a home based business in order to take advantage of the tax laws for you and your families benefit.

The following IRS publications will open your eyes to the over 475 tax deductions you may take as a home based business owner.

• IRS 2020 Withholding Calculator

• Form W-4 (2020)

• Pub. 15 (Employer's Tax Guide)

• Pub. 463 (Travel, Entertainment, Gift, and Car Expenses)

• Pub. 501 (Dependents, Standard Deduction, and Filing Information)

• Pub. 503 (Child and Dependent Care Expenses)

• Pub. 505 (Tax Withholding & Estimated Tax)

• Pub. 535 (Business Deductions)

• Pub. 583 (Starting a Business & Record Keeping)

• Pub. 587 (Business Use of Your Home)

• Pub. 946 (How to Depreciate Property)

See Internal Revenue Service (IRS) for all forms and publications.