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Defenders for this IRS position would say it pops up to Section 61. The waitress provided a service for me, and I paid for. Compensation for services is taxable. End of post.

I was paid $78,064, which I am taxed on for Social Security and Healthcare. I put $6,645.72 (8.5% of salary) in a 401k, making my federal income taxable earnings $64,744.

The great part may be the county is receiving their tax money provide us with roads, fire and police departments, and so forth. Whether they use domestic or foreign investor dollars, everyone win!

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The IRS has set many tax deductions and benefits secure for tax payers. Unfortunately, some taxpayers who bring home a higher level of income can see these benefits phased out as their income increases.

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For my wife, she was paid $54,187, which she isn't taxed on for Social Security or Healthcare. This wounderful woman has to put 14.82% towards her pension by law, making her federal taxable earnings $46,157.

Bottom Line: The IRS doesn't value your social status. The government only loves one thing- getting their cash. You might have dodged the irs for now, but the same as they wedged to Wesley Snipes- they will catch anywhere up to you. Don't be afraid in settling your Tax Debts!

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