I would like to thank those of you who have entered this site and made your way to this special gem of an article. To get right down to the meat and potatoes of the post, income shifting is a method of where the income shifter(you the employee worker of whatever company you work for), fills out simple paper work, with their company’s human resources department, in order to receive more income within each paycheck they earn, per pay period.
This process we are speaking of, takes place on IRS tax form W-4. This is the form in that you fill out, usually during your positions orientation, when you are choosing what 401k plan you want or health insurance options.
Fact of the matter is that many American’s, overpay in payroll taxes and in turn, this is why you will always receive a large refund check during income tax return season. The problem is that you need that money now and can’t get it simply because of them filing zero or only 1 for exemptions on their W-4 forms. Many people after filling this out, never adjust it again throughout their career at the job. Our site here have the solutions to helping everyday coupon clippers and online shoppers, on how to place more money in their paycheck, the correct way, and even make themselves properly protected from possible IRS Audits, which are not as evil as people portray them to be.
Here is an example of what is being described within this article. This is an excerpt, of a real documented testimonial, from a former firefighter, who discovered a different way to apply common techniques, to legally shift income from tax deductions, to his own bank account.
“Once I projected how my home-based business would do financially that year, I was able to immediately change my W-4 form with my employer and claim seven allowances (you will understand more of what this means later in this system).
Claiming these additional withholding allowances immediately increased my take-home pay from my regular job by a couple hundred dollars per month!
By the end of the tax year for 1999 I had paid total Federal Income Taxes of just $7,276, which was only 10.88% of my total wages, salaries, tips (line 7 of my Form 1040).
However, it turned out that I was too conservative on my W-4 estimation, because I received a refund check in the amount of $5,141 of the $7,276 I had paid — meaning that, in the end, I paid only $2,135 in Federal Income Taxes. In other words, my legal tax obligation was a mere 3.19% of my total wages.”
The key element that firefighter Blake Warrington, stated was that he was involved in a home based business. This is the core foundation of what the term income shifting, is all about.
There are simple ways for online and retail shoppers who are employed, to add more money to their paycheck every pay period 100% legally!