Comments on: Tax Time Always Reminds Me of Those “Mary Kay Deductions”

By: Jacob

Jacob — Mon, 29 Jun 2009 22:32:35 +0000

2 things…
1.- Tax Law Favor Business Owners. THERE SI NO QUESTION ABOUT THAT. Employees get their taxes “PAID” even before they get their paychecks. Business owners spend their profits, deduct expenses and pay taxes on the amount left. Please read previous statement twice.
2.- The only advice you should accept regarding your taxes should come from a certified CPA. There are way too many yearly changes to tax law which disqualify the above people from telling you how it works. All I know is that last year under my W2 filing I should had paid the IRS an extra $ 3,800.00 BUT after I added my 1099 Form Issued by my MLM company and listed my legal deductions I RECEIVED $ 2,224.00 from the government. NOW try to convince me that I made a bad decision joining an MLM company. I actually MADE $ 6,024.00

By: JR

JR — Wed, 06 May 2009 01:09:23 +0000

Haha, deductions . . . directors act like its free money. NOT! I had to make the decision to not include a number of things (postage, fees, etc) in my taxes, because it turned my meager profit into a loss thereby increasing my audit potential. EllenK is right, that money is better spent a number of different ways.

By: ellenk

ellenk — Fri, 01 May 2009 18:59:03 +0000

You are absolutely correct. Although items may be “deductible”, they are deductible from your INCOME not from your INCOME TAX, i.e., they are not tax credits. For example, you may show business mileage on your Schedule C for $1000. Depending on your tax bracket, you may end up with only about $60 in tax savings. You are still out $940 in cash. I think that I could find another way to use that money.