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?
Pay Taxes on Imaginary Money!
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Taxes: Done!
Hell, I manage to do it and live just fine.
My secret?
Catpennies.
Comment by CultureJammer — April 9, 2007 @ 8:30 pm
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.
Comment by LJ Cox — April 10, 2007 @ 8:43 am
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.
Comment by KMull — April 10, 2007 @ 10:08 pm
Those guys certainly don’t live in Silicon Valley. That’s all I have to say about that.
Comment by Shadox — April 16, 2007 @ 2:31 am
[...] 5. Avoid Income Tax Without Calling Down the Wrath of the IRS [...]
Pingback by AllFinancialMatters » Blog Archive » The 96th Carnival of Personal Finance — April 16, 2007 @ 7:39 am
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.
Comment by J — December 12, 2007 @ 11:04 pm
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.
Comment by Darrin Mish — January 18, 2008 @ 8:50 pm
@Darrin Mish -
I don’t find that to be true at all. I have a friend out here in a small town that pays $500 a month for a two bedroom apartment. If he got a roommate, he could knock that down to $300 a month, with utilities. Using the tips on the site in the article, you could get by spending about $100 on groceries a month.
There are places within walking distance of my friend’s apartment to work at, so a car is not required. That leaves $600 a month for any other expenses you might have - I think it’s completely doable, perhaps even with a car.
This is just an example - I’m just saying that there are definitely places in the US where you can live on less than $1000 a month.
Comment by Stephanie — January 19, 2008 @ 1:44 pm
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
Comment by bad credit remortgage — February 10, 2008 @ 8:23 am