8 No Worries Tax Tips | JoesPortico (2024)

If a poll were taken amongst all people religious or atheist and everything in between I am fairly certain all would agree on one thing, we all hate taxes. That is unless you are a tax collector or a dictator benefitting from the unscrupulous collecting of taxes to the detriment of the people. Such was the scenario in the time when Jesus walked the earth. The Roman Empire rulers lived lavishly off taxing everyone from the richest to the poorest.

Having been unsuccessful in trapping Jesus on other subjects the people who hated His popularity set him up more than once on the subject of taxes. His wise responses revealed more than meets the eye.

Scene 1, modernly described for today’s audience by The MSG version in Matthew 22 , reveals a seemingly succinct response of simply, ‘pay your taxes and shut up.’ Btw, interestingly, Matthew the writer was a reformed tax collector hated by all, but invited by Jesus to be one of His first disciples.

‘The Pharisees plotted a way to trap him into saying something damaging. They sent their disciples, with a few of Herod’s followers mixed in, to ask, “Teacher, we know you have integrity, teach the way of God accurately, are indifferent to popular opinion, and don’t pander to your students. So tell us honestly: Is it right to pay taxes to Caesar or not?”

Jesus knew they were up to no good. He said, “Why are you playing these games with me? Why are you trying to trap me? Do you have a coin? Let me see it.” They handed him a silver piece.

“This engraving—who does it look like? And whose name is on it?” They said, “Caesar.”“Then give Caesar what is his, and give God what is his.” The Pharisees were speechless. They went off shaking their heads.’

Scene 2, provides some deep words from Peter on the subject of taxes, to which Jesus reads his mind and provides a deeper revelation. This one in Matthew 17

‘When they came to Capernaum, the collectors of the two-drachma tax went up to Peter and said, “Does your teacher not pay the tax?”

Peter said, “Yes.”

(I find that hilarious, Peter was the loud one arguing about many things and not happy about the state of the world, especially the taxes levied on his former fishing business. Something tells me the ‘Yes’ was filled with some animation.)

‘And when Peter came into the house, Jesus spoke to him first, saying, “What do you think, Simon? From whom do kings of the earth take toll or tax? From their sons or from others?”

And when he said, “From others,” Jesus said to him, “Then the sons are from the taxes.’

However, not to give offense to them, go to the sea and cast a hook and take the first fish that comes up, and when you open its mouth you will find a shekel. Take that and give it to them for me and for yourself.”

Notice in the above that Jesus waited to speak privately with Peter about the tax issue. Jesus was careful to not make government and taxes an arguing point. Despite knowing the people were being cheated and do get abused, it was a side issue and not one to waste a bunch of time and anger on. (note to self, avoid such conversations on FaceBook)

Although it seemed He also made it a point to not pay one additional cent of the tax, and would most likely ‘vote’ when the time comes to have responsible people with integrity in positions where controlling taxes is a necessary part of running a government. It is important for us as good stewards of God’s money to carefully manage our giving records, and I believe wisely use all legal write-offs when completing our Tax forms each year. Be wise with investments, mortgage deductions, property tax payments, donation timing, and other entities that affect your tax rate.

The other key factor perhaps to consider was the coin being in the mouth of a fish. Most of us are aware Jesus performed a miracle twice taking a few pieces of fish and bread and multiplying it to feed crowds larger than 5000. God knows all our needs Worriers-changed-to-Warriors! He knows we have to pay our bills including taxes here in the year 2019. God meets the needs of all His children including providing money to pay our taxes.

I note though, God should not be required to wave a magical miracle wand for every one of our needs. He has provided wisdom and brains to take care of ourselves. Wouldn’t it be ridiculous for God to have to dress us up in our clothes every morning like newborn babies? Thus, we have been given the skills to understand how the money system works.

If you didn’t know it before, now you have 8 Tips for Worry-Free Tax filing. And you have a simple but profound view that God will meet all our needs, even the money to pay taxes!

Your fellow readers would love to hear your comments and perhaps questions. What is your view on taxes, do they stress you out or make you angry? How do you deal with those feelings?

8 No Worries Tax Tips | JoesPortico (2024)

FAQs

What triggers the IRS to audit you? ›

Math errors and empty fields on your tax return can trigger an IRS audit. An unsigned tax return is not valid and will be sent back to you to be signed. Before submitting your return, check all of the details two or three times and make sure the document is signed.

Is it better to claim 1 or 0 on your taxes? ›

Claiming 1 on your tax return reduces withholdings with each paycheck, which means you make more money on a week-to-week basis. When you claim 0 allowances, the IRS withholds more money each paycheck but you get a larger tax return.

What is the IRS rule on tips? ›

All tips you receive are income and are subject to federal income tax. You must include in gross income all tips you receive directly, charged tips paid to you by your employer, and your share of any tips you receive under a tip-splitting or tip-pooling arrangement.

What are the biggest tax loopholes for the rich? ›

12 Tax Breaks That Allow The Rich To Avoid Paying Taxes
  1. Claim Depreciation. Depreciation is one way the wealthy save on taxes. ...
  2. Deduct Business Expenses. ...
  3. Hire Your Kids. ...
  4. Roll Forward Business Losses. ...
  5. Earn Income From Investments, Not Your Job. ...
  6. Sell Real Estate You Inherit. ...
  7. Buy Whole Life Insurance. ...
  8. Buy a Yacht or Second Home.
Jan 24, 2024

What throws red flags to the IRS? ›

Not reporting all of your income is an easy-to-avoid red flag that can lead to an audit. Taking excessive business tax deductions and mixing business and personal expenses can lead to an audit. The IRS mostly audits tax returns of those earning more than $200,000 and corporations with more than $10 million in assets.

What looks suspicious to the IRS? ›

Too many deductions taken are the most common self-employed audit red flags. The IRS will examine whether you are running a legitimate business and making a profit or just making a bit of money from your hobby.

Why do I always owe taxes when I claim 0? ›

If you claimed 0 and still owe taxes, chances are you added “married” to your W4 form. When you claim 0 in allowances, it seems as if you are the only one who earns and that your spouse does not. Then, when both of you earn, and the amount reaches the 25% tax bracket, the amount of tax sent is not enough.

Why are my taxes so high when I claim 0? ›

Claiming more allowances will lower the amount of income tax that's taken out of your check. Conversely, if the total number of allowances you're claiming is zero, that means you'll have the most income tax withheld from your take-home pay.

What state doesn't pay taxes? ›

As of 2023, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming are the only states that do not levy a state income tax.

What tips are not taxable? ›

If you don't earn at least $20 in tips during the month, you don't have to report the tips to your employer. But you still need to include these tips in taxable income when you prepare your income tax return.

Will the IRS know if I don't report tips? ›

If it is determined in an examination that you underreported your tip income, the IRS will assess the taxes you owe based on the best available records of your employer. Tip income adds up. Underreporting could result in you owing substantial Federal Income, Social Security and Medicare penalties, and interest.

Can the IRS track cash tips? ›

You must report tips you received (including both cash and noncash tips) on your income tax return. Any tips you reported to your employer are included in the wages shown in box 1 of your Form W-2, Wage and Tax Statement.

How do wealthy pay no taxes? ›

Billionaires (usually) don't sell valuable stock. So how do they afford the daily expenses of life, whether it's a new pleasure boat or a social media company? They borrow against their stock. This revolving door of credit allows them to buy what they want without incurring a capital gains tax.

How to pay zero taxes? ›

Be Super-Rich. Finally, it's quite easy to pay no income taxes if you're extremely rich. In our tax system, money is only subject to income tax when it is earned or when an asset is sold at a profit. You don't have to pay income taxes on the appreciation of assets like real estate or stocks until you sell them.

How do billionaires pay so little in taxes? ›

While giant companies enjoyed record profits in recent years, many still pay lower tax rates than most working families. That's in part because many take advantage of generous tax breaks and stash profits in tax havens around the world.

Who is most likely to get IRS audit? ›

The taxpayers most likely to be audited are those with annual incomes exceeding $10 million — about 2.4% of those returns were audited in 2020. But the second most likely group to get audited are low- and moderate-income taxpayers who claim the Earned Income Tax Credit, or EITC.

How do you know if the IRS wants to audit you? ›

The IRS performs audits by mail or in person. The notice you receive will have specific information about why your return is being examined, what documents if any they need from you, and how you should proceed.

Is it common for the IRS to audit you? ›

2. Making a lot of money. While the overall individual audit rates are extremely low, the odds increase significantly as your income goes up (especially if you have business income).

How to avoid an IRS audit? ›

You can't always avoid an audit, but thorough records that support your deductions can quickly appease most auditors. Have supporting documentation for any deduction on your tax return, especially those that are significant or subject to special rules, such as rental losses.

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