Gaging your level of Screwedness from the IRS
We do tax presentations from time to time to groups of 1099 contractors and business owners. We share some free tax advice and strategies that they should be implementing right now to save anywhere from $5,000-$15,000 +
We love doing these presentation because of two reasons:
- Seeing people save as much money as possible
- Stickin it to the IRS
We have presented more than 35 times and every single person has been missing a crucial component to their tax situation. At least one button is always undone.
It makes me cringe when people tell me about their situations and how screwed their getting (which they don’t know the level in which they are being screwed). It’s not their fault though. They’ve either received advice from their brother’s father-in-law’s longtime accountant who is getting old, but has been doing it for years, or they just try and research themselves what is best.
The problem with this is they don’t know what they don’t know. It’s been “working” so far so they assume it is just how the tax world works.
Now, we live taxes. We breathe them every day and it’s sometimes sad how excited we do get about them, but mainly because we know the rules to help you SAVE more money. Before I take you further, I did want to quickly mention this just in case you fall under this category, and it’s kind of a big deal so learn this:
**If you receive 1099 income and you’re not an Incite Tax client you’re more than likely getting screwed. We can help you set things up properly so you’re getting unscrewed.**
With these presentations, we get to hear about a lot of different situations. Some crappy and some super crappy because of the tax bills that people have been paying. More times than not they’ve been doing it wrong for multiple years too.
The part of this whole conundrum that I wish I could impress on people is how simple it is to have things set up properly to start avoiding a chunk of their taxes and keep more money. To solidify what I’ve been ranting about I thought we should get real with some numbers.
Talking tax definitely isn’t the most exciting, but looking at the tax savings dollar amounts through numbers can turn up the excitement a bit. So, let’s go there.
Two examples of 1099 contractors who got screwed:
- A real estate agent came to one of our presentations and wanted help during tax season. We explained how she should be set up moving forward but weren’t able to do as much to help with her tax bill because it was the new year. She ended up owing $7,000 this year. However, we talked it over with her and explained how if a couple things would have been set up previously that year and nothing else changed THEN she would have received about a $3,000 refund! That’s a $10,000 swing!
- Another small business owner has been paying around $20,000 every year for several years. After one of our presentations and NOW setting up a S-corp and doing a few awesome strategies he will pay close to $2,000 or less this year. That’s $18,000 back in his pocket!
The first step you always need to ask yourself, is “Do I have the right business structure for taxes?”
As you can see from the two examples of our clients they paid a ton of tax because they were operating their business under a less advantageous entity. I won’t get technical as to why you can save so much by setting up the right structure, but I just want to emphasize how important it is. If you don’t have a business and receive 1099 income then you should first set up a business. If you do have a business already, make sure it is giving you greatest benefit for liability and tax savings. I want to bring this up now because these things really need to be in place this year. You can’t file your taxes next year and decide to make these changes. It all needs to be set up now for you to start taking advantage of more money in your pocket.
Now, I totally am aware that this post has had an unusual amount of self promoting chatter. However, I do sometimes feel obligated to be blunt and tell it how it is.
If you’re on the edge of joining our crew, it’s time to take the plunge!
And my purpose is definitely NOT to convince you to make a switch, but rather compel you to take action into a much better financial situation.
We know we can help you save THOUSANDS, we just need you to give it a chance and quickly start reaping the positive results that are in store.
We help our clients treat their business more like a business and help them strategize their situation proactively so they can relieve stress or the unknown, stay on track of expenses, and save a lot of money!
What most people don’t realize is that now is the time to plan out what you have going on so it can take effect this year. Taxes are a game and we are here to help you know the rules and where you can take advantage of them.
If you have a group of contractors, MLMers, small business owners, shoot us an email to get something set up either in person or via webinar so we can show them how to make over $6,000 in an hour!