ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Taxes, Tips and the Taxpayer

Updated on August 17, 2012

How to avoid owing taxes each year

The number one tip to getting out of tax debt: pay your taxes! The entire year you're receiving income you can control the outcome of how much you're paying into taxes-whether you are under paying or over paying you have that control.

Wage Earners

Adjust your W4 certificate-the number of allowances you're withholding has everything to do with how you file your return. The number of deductions, exemptions you will claim needs to match up to how many allowances you are claiming on your W4 certificate with your employer.

Utilize the withholding calculator on This tool assists you with determining how many allowances you should be withholding.

Call the IRS 1-800-829-1040 to speak with a representative trained in the area of withholding compliance. These trained professionals will assist you with how to prepare/fill out your W4 certificate.

*The IRS has the authority to enforce withholding compliance to the maximum amount by sending a 'lock in' letter to your employer.

Self Employed/Commission Income Earners

You are required to pay estimated tax payments. Pay your quarterly estimated tax payments to avoid those additional penalties that will be assessed against your tax liability when reporting your earned income.

Fill out the 1040 ES form to become more knowledgeable on how much in quarterly taxes 'based on your earned income' you should be paying each year.

*Estimated tax payments are required if you are self employed/contractor.

Large Dollar Wage Earners

Withhold the maximum amount of allowances-you may have to request an additional amount to be deducted each pay period. Seek assistance with the help of the 1040 publication and worksheet to determine your tax rate if your income is higher than 100k. Pay the taxes you owe in the year you receive your income to avoid paying high penalties and interest fees-after the fact.

Offer in Compromise

The www. site offers great assistance if you are willing to become more knowledgeable about what you can do to get out of tax debt. The 656B booklet will give you insightful help on what you can do to get your 'back taxes' reduced. "Pennies on the dollar" is the phrase if you are seeking a way to get out of debt by paying a reduced amount of the taxes you currently owe.

If you are having financial difficulties paying back the taxes you owe- an Offer in Compromise is the best solution for you. The application fee is $150.00 and you may qualify to have that fee waived if you fall within the 'low income' wage earner criteria. Call the IRS 1-800-829-1040 to speak with a trained representative for more assistance.

You don't have to pay additional monies on top of the back taxes you owe to a tax professional. Gain the knowledge you need by referencing the materials and site referenced here for assistance.

Fees and services stated here may change due to constant changes in tax law and regulations, please reference the site and call the IRS directly for assistance to your questions and inquiries.

I am a taxpayer with experience in tax law and knowledge of how to gain help without paying out of pocket expenses that are available to the public at no cost.


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)