So I just finished filing my 2010 Tax Return, and am due to get a significant return on my taxes. There's not really anything I can do to reduce my tax liability during the year because in sales, your commissions are withheld at the highest tax rate. I've never heard a sufficient answer from any company where I've worked as to why this must be the case, but I suppose it is one way that the IRS can use your money for up to a year until you file your return to get it back.
One of the main reasons why I'm trying to get out of the Rat Race and retire is so I don't have to pay as much taxes. Percentage wise, the rich have a much smaller tax liability than the poor, and that's because they literally wrote the book on tax law. I've included a link here to an article that compares 4 of the most common tax prep solutions available, so for those who haven't started filing their taxes and plan to do it themselves, it would be worth a look.
Good luck to everyone getting your hard earned money back from the IRS this tax season! If you're one of the few that actually gets close to even on their tax return, or winds up owing less than $500, I tip my hat to you.
Jacob
