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--- income_tax [2026/02/28 23:36] – [Online Guided Tax Software] jhagstrand
+++ income_tax [2026/03/12 04:11] (current) – [Input Documents] jhagstrand
@@ Line 26: / Line 26: @@
 Inputs and calculations.
+===== Tax Minimization =====
+It is legal to minimize taxes by maximizing expenses.\\
+It is NOT legal to //avoid// taxes by //failure to report// income.\\
+The wealthy can create businesses, organized as LLCs, and write-off most of life's expenses, until their is no tax to be paid.
+The super wealthy can create a charity, a bank, a church, or a nation-state and create money out of thin air, all tax-free.
+This document does not cover any of that.  The author is a sucker who dutifully obeys all the rules to avoid the stress of possibly getting caught.
+===== State Tax =====
+This chapter is about US Federal Income Tax administered by the IRS.  There is only one thing we want to point out about state income tax, and that is, that seven states have no income tax:
+  - Alaska
+  - Florida
+  - Nevada
+  - South Dakota
+  - Texas
+  - Washington
+  - Wyoming
 ===== Input Documents =====
@@ Line 35: / Line 58: @@
     - 1099-MISC - miscellaneous income
     - 1099-B - gain or loss from sales of assets
-  - bank statements - foreign banks do not issue 1099s, obviously, but they sometimes pay interest and sometimes tax withholding and all these transactions are recorded in bank statements and/or your passbook.
+  - bank statements - foreign banks do not issue 1099s, obviously, but they sometimes pay interest and sometimes withhold tax from those payments, and all these transactions are recorded in bank statements and/or your passbook.
 ===== Record Keeping =====