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Avoid Income Tax Without Calling Down the Wrath of the IRS

I don’t want to get political here, but I do want to point out something I came across that is very interesting. There is a group of war protestors who refuse to fund the war through their federal income taxes – so they’ve decided to stop paying those taxes. And they’ve figured out how to do it legally.

The basic idea for this “legal tax refusal” is to get their income below the taxable level – live on $8,450 a year, or less. The group points out that you can raise that number to $12,450 if you contribute to an IRA, but that extra $4,000 isn’t available to be spent.

Anybody, regardless of their political leanings, can glean some important finance concepts from the group:

  • It is possible to live on very little, and the group even provides tips on how to do so. These tips are helpful to anyone trying to reduce their expenses, regardless of income.
  • Even on a minimal income, it’s still possible, and advantageous, to contribute to a retirement fund.

Do you think you could live on less than $1000 a month?

17 responses to “Avoid Income Tax Without Calling Down the Wrath of the IRS”

  1. CultureJammer

    Hell, I manage to do it and live just fine.

    My secret?

    Catpennies.

  2. LJ Cox

    If you can get your income low enough, you can qualify for EIC (earned income credit) and actually drain money from the federal coffers, theoretically reducing the money available for the war effort.

  3. KMull

    Well, considering our apartment is $705/month with water… probably not. But I guess if you divided it in half per person, we get pretty close to $1k or less.

  4. Shadox

    Those guys certainly don’t live in Silicon Valley. That’s all I have to say about that.

  5. AllFinancialMatters » Blog Archive » The 96th Carnival of Personal Finance

    [...] 5. Avoid Income Tax Without Calling Down the Wrath of the IRS [...]

  6. J

    THE WAR ISN’T FUNDED BY INCOME TAX MONEY. CHECK OUT THIS SITE MONEYASDEBT.NET AND BECOME A LITLLE MORE INFORMED ON WHAT IS REALLY GOING ON WITH OUR MONEY.

    1. Gerald Mangold

      You are “right on the money”! The information taught in MONEYASDEBT should be required in school. Of course we would have a revolution…

  7. Darrin Mish

    There isn’t anywhere in the country where a person paying some sort of rent or mortgage can get by on $1000 per month without some sort of subsidy.

  8. bad credit remortgage

    Could I live on less than $1000 a montn? Yes, I could. I’ve done it in the past.

    Would I want to live on less than $1000 a month? No, for me it’s a wretched existence which means I can’t eat the things I like, I can’t live in the place I like, I can’t do any of my hobbies.

    For me, having less than $1000 a month isn’t really living at all.

    - Gary

  9. jean

    Hello? Reality? We have children, and it is illegal for us to rent an apartment, there are “so many of us”. The government hates families, and makes it impossible for them to survive on small incomes.

  10. Dead Body Man

    The federal income tax does not fund war efforts. The federal income tax is paid as interest to the Federal Reserve, which in turn loans money to the Federal Government. This money then funds all the spending that the government attributes to the federal income tax. The Federal Reserve is nothing Federal. It is PRIVATE. There is no law saying that you need to pay a federal income tax. There is literally NO law. IRS officials could not find it and subsequently resigned. You will be wrongfully tried and punished, fined, etc. for a non-existent law, and there is nothing to do about it, but lie about your income as a private business, or make and live off less than 1000$ a month.
    Sad…

  11. Alex

    You could actually earn much more than the number here (I think it’s $9350 now). Dave Gross shows how to do it http://sniggle.net/Experiment/index.php?entry=howto there.

    (Can you tell I’m reading your blog chronologically?)

  12. dan

    By contributing tax to a government that has broken the laws of law, you are committing a crime of conduct ancillary and aiding and obetting your government in war crimes. Therefore YOU are required BY LAW to refuse to pay tax. Or are you going to continue to fund their crimes? WAKE UP PEOPLE!