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Thank you Jeo123, I understand what you wrote now.
My goal is not to get a bigger refund, but to get no refund at all. I do not want to have a negative refund (for example like now, my refund is -$4000). This is what I am trying to prevent. I would like to top owing tax every year.
I would like to know if option 2 and 3 above will help me with this problem.
Yes, if your goal is to decrease how much you owe come 4/15, then increasing your withholding via W4 will accomplish that.
I would suggest looking into increasing 401(k) contributions or 529 contributions (college savings accounts) though because those will actually reduce how much you pay in taxes, rather than just the difference between withholding and your tax bill.
just think of the amount you had withheld each week as paying in estimated taxes. your total tax bill will be the same , you are just paying it with higher or lower installments.
but if you do not pay in enough over the course of the year and you owe to much you will have to pay penalty's and interest.
Driller's take on all tax bills is simply to create a small business even if it really does nothing and write off all your expenses. It's not something most would recommend with the same free candy strategy driller takes it as
Can I use the -$4000 for the business as on the turbo tax as loss? I think I can.
Maybe.
If your business continues to lose money, then the IRS will declare that it is a hobby and no expenses are deductible.
You are likely to have the expenses allowed for the first year as the business was starting up.
Going forward, it will be problematic and you likely to get audited.
I personally think you should not use TurboTax and should instead hire a professional to prepare your taxes as it appears to me that you are not a tax expert.
Maybe.
If your business continues to lose money, then the IRS will declare that it is a hobby and no expenses are deductible.
You are likely to have the expenses allowed for the first year as the business was starting up.
Going forward, it will be problematic and you likely to get audited.
I personally think you should not use TurboTax and should instead hire a professional to prepare your taxes as it appears to me that you are not a tax expert.
I have NEVER shown a profit and never will.
I was audited twice......they found no problems.
What they are looking for is the intent to make a profit.
So, the more I spend and write off.........the more they like it.
I personally think you should not use TurboTax and should instead hire a professional to prepare your taxes as it appears to me that you are not a tax expert.
Driller's take on all tax bills is simply to create a small business even if it really does nothing and write off all your expenses. It's not something most would recommend with the same free candy strategy driller takes it as
That is how people with money get their wealth.
By using the tax code to their advantage.
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It depends
