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Episode 3604:
Richard Close explains that the smartest way to lower your tax bill is not by breaking the rules, but by understanding them. By looking closely at legitimate deductions and credits that many people overlook, taxpayers can potentially save money while avoiding the costly consequences of tax fraud.
Read along with the original article(s) here: https://www.getrichslowly.org/how-to-cheat-on-your-taxes-legally/
Quotes to ponder:
"Never cheat on your taxes. The risks far outweigh the rewards."
"Be creative, but work within the law. You just might save some money this year on your tax filings."
"You may be surprised by how greatly you can benefit from being a legal tax cheat."
Episode references:
Internal Revenue Service (IRS): https://www.irs.gov
Wealthfront’s high-yield Cash Account: https://wealthfront.com/OFD
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[00:00:00] This episode is brought to you by Google Chrome. You think you know a browser, but Gemini and Chrome? That's new. They can help you with practically anything on the web, like restoring a vintage motorcycle from a 50-page restoration block, or finally break down that long article you've had open for weeks. Gemini and Chrome is here for it. Ready to make anything online make sense? There's no place like Chrome. Check responses set up required, compatibility and availability varies 18+.
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[00:00:56] This is Optimal Finance Daily. How to cheat on your taxes legally by Richard Close with GetRichSlowly.org. Ah, tax season. That time of year where people complain about the greedy government. Some folks are so in need that they start looking for ways to cheat on their taxes. Here's a hint. Never cheat on your taxes. The risks far outweigh the rewards. How do I know? Because I used to work for the IRS.
[00:01:25] And I saw firsthand what happened to tax cheats. When people learn I used to work for the IRS, they want in on the secret. What's the silver bullet that will help you save the most when you file your taxes?
[00:01:39] We all know about tax deductions. But which ones are worth the trouble? In my opinion, you should look at all of them. It may seem like you don't qualify for most at first, but if you look closely for legal tax cheats or loopholes in the IRS rules, you may find new ones to save. How to cheat on your taxes legally.
[00:02:01] As an advocate for the American taxpayer, I in no way condone committing tax fraud. However, there are ways you can make those tax cheats or legal tax deductions work for you without dire IRS consequences. Be creative, but work within the law. You just might save some money this year on your tax filings. Here are some common tax cheats people try and fail at, as well as legal alternatives.
[00:02:28] Pet costs. Your pet is not a dependent, no matter how much you feel FIDO is part of the family. Even if your pets run up expensive medical bills, personal pet costs are not typically tax deductible. Tax Cheat. However, if you have a service animal, you can claim the expenses of maintaining the animal as a medical deduction. Businesses can deduct qualifying pet costs, too. Here's a clever example.
[00:02:56] The owners of a junkyard had to act fast to remove their snake and rat problem. Their solution was to set out bowls of cat food to attract feral cats. The cats made short work of the vermin, and the cat food was considered a legitimate business expense. Attorney Fees. If your legal dispute is personal in nature, the IRS won't allow you to deduct your attorney fees. This includes common issues like divorces, property disputes, and even personal injury cases.
[00:03:26] Tax Cheat. Attorney fees for your business are deductible, subject to a 2% floor. Oddly enough, you can deduct personal legal fees related to contesting, paying, or claiming a refund on your taxes. Charitable Service. You can deduct goods and cash donated, but you can't deduct services you've donated to a charity, even if you measure the value. Tax Cheat.
[00:03:51] One way on how you can cheat on your taxes legally is to deduct costs you paid while performing the service. Telephone Landlines. You can't deduct the cost of your home telephone line, even if you use that line for your business. Tax Cheat. You can, however, deduct the cost of a second telephone landline or a cell phone that is used exclusively for your business. In addition, you can deduct long distance and similar charges on your landline if you prove business use.
[00:04:22] Commuting Costs. You can never deduct the cost of going to and from work, no matter how far you live from the workplace. Even if your commute is expensive, the burden is a non-deductible expense. Tax Cheat. Work-related travel expenses are deductible. This includes costs to visit clients and vendors, going to a business meeting away from where you work, and traveling back and forth during the workday. Home Improvements.
[00:04:49] The IRS considers home improvements personal expenses and will not allow you to claim these expenses as tax deductions. Tax Cheat. However, if you're installing a wheelchair ramp or making a similar health-related home improvement, you can claim the costs as medical expenses. Additionally, you can get a tax credit when you install qualifying energy-efficient home improvements. Gym and Health Club Fees.
[00:05:16] Even if your doctor recommends you lose weight for your health, you can't deduct expenses that are merely beneficial for your health, like gyms and health clubs. The IRS says the same thing about specialty health foods. Tax Cheat. However, if your doctor specifically prescribes a gym or health club membership for a diagnosed medical condition, it will qualify as a medical deduction. Two Top Tax Tips.
[00:05:42] Besides the ideas on how to cheat on your taxes legally, here are two final tips for those who are looking to save on taxes. Number one, itemize. Many taxpayers claim the standard deduction amounts, and I can't blame them. There's less math, less document hunting, and no rules to read. Yet with minimal effort, you can maximize your deductions and save big by itemizing deductions. And number two, pay a pro.
[00:06:11] Working with a tax professional or using tax-filling software is almost always worth the investment. A qualified and reliable tax professional will find the best ways for you to save. Hopefully, these tax tips on how to cheat on your taxes legally will help you save some cash this tax filing season. Remember, examine your taxes closely, and when in doubt, consult with a tax professional to see what you can and can't deduct.
[00:06:37] You may be surprised by how greatly you can benefit from being a legal tax cheat. You just listened to the post titled, How to Cheat on Your Taxes Legally, by Richard Close with GetRichSlowly.org. My philosophy with money? It's a tool for freedom, not a source of anxiety. Wealthfront helps you tune out the noise and earn more on every dollar with a high-yield cash account and sophisticated, easy-to-use investing products.
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[00:07:57] Terms and conditions apply. This is a paid endorsement of Wealthfront. Client experiences will vary. Wealthfront brokerage is not a bank. The base APY is as of January 30th, 2026 and subject to change. For more information, please see the episode description. Right now, get up to 15% off select storage solutions. Put heavy-duty HDX totes to good use, protecting what's important to you. The solid, impact-resistant design prevents cracking.
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[00:08:49] When I had a W-2 job and no real assets, my taxes were super simple, and I used a service like Tax Act or TurboTax. But once I bought a house, started a business, and became self-employed, things got more complicated. The tax code is constantly changing, and I recognize that I don't know what I don't know. So the peace of mind I get from my CPA is such a relief. He also helps me with strategic tax planning, not just with filing.
[00:09:19] While I'm all about self-management when it comes to my finances and investing, I absolutely love working with a CPA. And that will do it for today. I hope you're having a great day. Thank you for being here, and I'll see you on tomorrow's episode, where your optimal life awaits.