Blog | Personal Finance

The Ultimate Rich Dad Tax Day Roundup

Seven must-read articles on paying less in taxes and maximizing your return

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Tax Day is here. For some, it’s a time of dread. For others, a time to look forward to. It all depends on how you’ve planned, how much money you make, and what kind of money you make.

Since this is the first time that a Tax Day and my publishing deadline have been on the same day, I thought I’d do a roundup of some of the best posts Rich Dad has to offer on you and your taxes.

P.S. - If you find these helpful, pay it forward by sharing with your friends and family. We can all use any help we can get when it comes to the tax man.

What to do with your tax returns

According to CNN Money in 2015, “Nearly 8 out of 10 US taxpayers get refunds,” with the average return being $2,800. For most, this is a good chunk of change that can be put to good work…or squandered.

If you want to know the Rich Dad way to spend your tax return, read my following articles: “Five Rich Dad Ways To Spend Your Tax Return” and “3 Steps to Maximizing Your Tax Return”.

Reducing your tax bill

Looking to get to the point where you owe little-to-nothing in taxes come this time of year? I wrote “5 Things You Can Do To Reduce Your Tax Bill Next Year,” for you. I get into the CASHFLOW Quadrant, showing you why employees and self-employed pay the most in taxes, and then share some strategies you can use to move from the left side of the quadrant, the employee and self-employed side, to the right side of the quadrant, the business owner and investor side—those who pay the least in taxes.

Thinking differently about taxes

Perhaps one of the most important things to understand is that taxes can either make you poor or they can make you rich. I prefer to use taxes to make myself rich, and doing that tax a different type of mindset.

Read my article, “The Two Tax Mindsets,” in order to understand the difference between how the rich and the poor approach taxes. While you’re at it, read “Think Rich to Lower Your Taxes,” where I share how Kim and I were able to turn $100,000 into $1.2 million—without paying a single penny in taxes.

Learn why the tax code is written the way it is

If you’ve been around the Rich Dad community for a while, it’s probably no secret to you that the IRS writes the tax code to encourage—and reward—specific behaviors.

I detail the advantages the IRS gives you in my post, “Are You Doing What the Tax Code Wants?” and in what might be the most controversial post I wrote in 2016, “Why I Hope Donald Trump Paid $0 in Taxes.” (I still stand by it).

When you understand the tax code and know what it rewards you for, you have powerful knowledge that 90% of people in the US don’t possess, and you can use it to make yourself rich.

Knowledge is power. Knowledge is the new money.

When I wrote “The Conspiracy of the Rich,” I made the assertion that knowledge was the new money. Why would I say something like that? Because in the information age—where most people have access to the same kinds of tools—knowledge is the competitive advantage.

This is why every post I’ve shared here has to do with either increasing your financial knowledge or putting that knowledge to work.

I don’t know what Tax Day brings you this year, if it’s a time of celebration or frustration, but one thing I do know—if you invest a little bit of time to read the articles I shared, and put the knowledge you gain to work—you’ll have a Tax Day to remember next year.

Original publish date: April 17, 2018

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