Strategic Use of Tax Credits
Tax Credits are an extremely powerful tax savings tool. Tax Credits reduce your tax liability on a dollar for dollar basis. In other words, $1,000 of tax credits reduce the amount of tax you owe by $1,000. In comparison a tax deduction only reduces your tax liability by the income tax bracket you are in. For instance, if you are in the 15% tax bracket, $1,000 in deductions only reduces the tax you owe by $150.00 ($1,000x 15%).
Tax Credits are enacted by Congress to encourage certain behavior by rewarding that behavior with reduced taxes. Many people are aware of popular credits like the Earned Income Credit (EIC). This credit was enacted to encourage lower income tax payers to enter the workforce and “earn income”, Congress rationalized that getting into the workforce, even at an entry level job, will lead to higher earning jobs down the road. Another credit many people are familiar with is the home energy credit. In this instance Congress has encouraged homeowners to make energy efficient improvements to their homes by providing a tax credit of up to $1,500.00.
Our tax credit program is even more powerful. Tax Warrior, Inc. in conjunction with Cleaning Up America, LLC has access to clean energy credits at a SUBSTANTIAL DISCOUNT. Congress has enacted these credits to encourage people to support clean energy.
These credits are even more powerful because they can reduce your taxes by more than 100%.
You can obtain these credits, depending on dollar amount, for as low as 60 cents on the dollar. That means for illustrative purposes, you can reduce your taxes $10,000 while paying only $6,000. Another HUGE ADVANTAGE of these tax credits is that you can carry them back one year. Simply put, you can obtain enough clean energy credits to not only eliminate your taxes this year but also for last year.
Let’s look at some real life examples: Your tax liability is $3,000. Your employer withheld $4,000 from your wages so you are due a tax refund of $1,000. For $2,100 you can purchase $3,000 of tax credits and instead of getting a $1,000 refund you can increase your refund to $4,000. If you were in a similar tax situation last year, you could purchase $3,900 and obtain $6,000 worth of tax credits. Then you could get a $4,000 tax refund this year and an ADDITIONAL $3,000 tax refund for last year. That’s a total of $7,000 in tax refunds for only $3,900.00.
What’s more, under our unique strategy you can parlay this savings by using your tax refund to purchase the tax credits. This means that qualified clients do not have to come up with any out of pocket costs in order to realize these tremendous tax savings.
What’s more, you do not need to be one of our tax return clients to take advantage of this tremendous opportunity. If you are happy with your current tax preparer we will work with you and your tax preparer to make sure you claim these credits correctly on your tax returns.
THIS IS YOUR OPPORTUNITY TO TAKE ADVANTAGE OF THE SAME TAX BREAKS THE WEALTHY PEOPLE GET
When Warren Buffet says his assistant pays higher taxes than he does, this is one of the reasons why.
