What are the biggest tax loopholes?

What is the 80% rule Zuckerberg?

Mark Zuckerberg's 80% rule is a productivity strategy where you intentionally schedule only 80% of your time, leaving the remaining 20% open for unexpected tasks, deep thinking, innovation, and handling crises, preventing burnout from overfilled calendars and allowing for flexibility and strategic focus, a concept similar to Google's productivity coaching and advocated by other high-achievers. 

Can you legally refuse to pay taxes?

No, you generally cannot legally choose not to pay taxes if you meet the filing requirements, as the obligation to pay is mandatory under U.S. law, but you can legally reduce your tax burden through deductions, credits, and living below the filing threshold; however, intentionally evading taxes is a crime with severe penalties, including fines and imprisonment, while making frivolous legal arguments against paying taxes is also prosecuted. 

What expenses are 100% tax-deductible?

Common 100% deductible expenses include advertising, salaries, rent, utilities, insurance, legal/professional fees, interest, repairs, and supplies, while for meals, it's typically company parties, snacks for employees, and meals provided for employer convenience (like overtime), with client meals usually being 50% deductible, notes CPA WFY, Bench Accounting, and TurboTax. 

How much an hour is $70,000 a year after taxes?

$70,000 a year is about $33.65 per hour before taxes, but after federal, state (varies), FICA, and potential deductions (like 401k, insurance), your take-home hourly pay could be closer to $21-$27 per hour, depending heavily on your location and withholdings, with estimates suggesting annual take-home of $43,500 to $52,000. 

What is the $2500 expense rule?

The $2,500 expense rule refers to the IRS's De Minimis Safe Harbor Election, allowing businesses (without a formal financial statement) to immediately deduct the full cost of tangible property costing up to $2,500 per item or invoice, rather than depreciating it over years. This simplifies taxes for small businesses, letting them expense items like computers or small furniture in one year if they follow consistent accounting practices and make the annual election by attaching a statement to their tax return. 

What is the most overlooked tax break?

The most overlooked tax breaks often include the Saver's Credit (Retirement Savings Contributions Credit) for low-to-moderate income individuals, out-of-pocket charitable expenses, student loan interest deduction, and state and local taxes (SALT), especially if you itemize. Other common ones are deductions for unreimbursed medical costs (over AGI threshold), jury duty pay remitted to an employer, and even reinvested dividends in taxable accounts. 

How to beat the tax man?

Pensions - Articles - Eight tips to beat the taxman this April

1. Stuff your ISA and pension. ...
2. Use your Capital Gains Tax allowance. ...
3. Protect your income investments from the tax grab. ...
4. Claim your free Government money. ...
5. Automate your investing. ...
6. Work out your inflation battleplan. ...
7. Don't forget the kids. ...
8. Avoid a tax trap.

How to pay no taxes?

One easy way to pay no income tax is to have little or no taxable income. For tax year 2025, taxpayers receive a standard deduction of $15,750 (singles or married persons filing separately) or $31,500 (marrieds filing jointly). For heads of households, the standard deduction is $23,625 for tax year 2025.

How do CEOs avoid taxes?

First, they acquire appreciating assets like stocks or real estate. Instead of selling these assets when they need cash (which would trigger capital gains tax), they borrow against them at favorable interest rates. Since loans aren't considered income, no tax is owed.

What is the IRS 7 year rule?

The IRS 7-year rule generally refers to the extended time you need to keep tax records if you file a claim for a loss from worthless securities or a bad debt deduction, giving you up to 7 years from the due date of the return to claim a refund or credit for those specific issues. While the standard record retention is usually 3 years, this 7-year period ensures you have documentation for these specific, potentially complex, financial losses. 

What are common tax loopholes?

Backdoor IRAs, carried interest, and life insurance are just some of the loopholes you can use to reduce your tax bills. It's important to plan correctly and use the right loopholes, credits, and deductions for your unique situation.

What is $90,000 a year hourly?

$90,000 a year is approximately $43.27 per hour, assuming a standard 40-hour work week for 52 weeks (2,080 hours total). This is calculated by dividing the annual salary by the total working hours in a year ($90,000 / 2080 hours). 

Is a 70K salary rich?

No, $70k a year generally isn't considered "rich" in the U.S., but it's a solid, above-average income that allows for a comfortable middle-class lifestyle in most areas, though it can be tight in high-cost cities like San Francisco or NYC, requiring careful budgeting. "Rich" is subjective, but $70k is well above the national median income, allowing for savings and a decent quality of life, especially for a single person or a household with two incomes. 

What salary do I need to buy a house?

To buy a house, you generally need to make around $100,000 to $120,000+ annually for the typical U.S. home, but it varies wildly by location and expenses, with affordability rules like the 28/36 rule suggesting housing costs shouldn't exceed 28% of your gross monthly income, and total debt staying under 36%. Key factors are mortgage rates, property taxes, insurance, down payment size, credit score, and other debts, making some areas (like Hawaii) much pricier than others (like West Virginia). 

What are common tax deduction mistakes?

Math mistakes.

Math errors are some of the most common mistakes. They range from simple addition and subtraction to more complex calculations. Taxpayers should always double check their math. Better yet, tax prep software does it automatically.

Is a cell phone bill a tax deduction?

You can qualify for a cell phone tax deduction from cell phone charges incurred when the mobile phone is being used exclusively for business. There is not an IRS cell phone deduction for self employed people, exclusively. However, you can also deduct additional business expenses that you incur.

What expenses reduce taxable income?

Some of the most common federal tax deductions include:

• Retirement contributions (IRA, 401(k), SEP IRA)
• Student loan interest.
• Charitable donations.
• Mortgage interest.
• State and local taxes (SALT)
• Medical expenses over 7.5% of your AGI.
• Home office expenses for self-employed taxpayers.
• Health Savings Account contributions.

What are common tax mistakes to avoid?

Not Adhering to Filing Deadlines or Not Filing at All

File too early and you may not have received all the documents you need to submit an accurate tax return, potentially missing out on getting your full refund, if you are due one.

What are legal ways to lower your taxes?

In this article

• Plan throughout the year for taxes.
• Contribute to your retirement accounts.
• Contribute to your HSA.
• If you're older than 70.5 years, consider a QCD.
• If you're itemizing, maximize deductions.
• Look for opportunities to leverage available tax credits.
• Consider tax-loss harvesting.
• Consider tax-gains harvesting.

What happens if you just never pay taxes?

If you don't pay taxes, the IRS charges interest and penalties that significantly increase your debt, leading to aggressive collection actions like levies on wages/bank accounts, liens on property, property seizure, and even passport revocation, though filing a return (even if you can't pay) minimizes penalties. It's crucial to file on time and pay what you can, then contact the IRS to arrange payment plans or explore relief options.