I was talking with Jared one day, he’s a successful Mortgage Broker and he was complaining about how much he was paying in taxes. I quickly learned that he’s paid as a W2, but is 100% commission with a draw as a base...after getting over the shock that he’s paid as a W2, he showed me his pay stub and seeing how much was being taken out of his check monthly
As a W2 earner there are very few options for reducing your taxes.
I remember back talking to my CFP (Certified Financial Planner) that he briefly shared a strategy with me on how W2 earners can pay significantly less in taxes. I shared this strategy with my friend and also set a call with my CFP and CPA so he could explain the details of this plan and execute them immediately.
I thought this type of knowledge was commonplace, but I was greatly mistaken. 95% of Commission based employees have never heard of this strategy let alone are doing it. I thought to myself that everyone needs to be educated on how the IRS has set up the tax code to help you keep more of your own money AND possibly make more and pay less in taxes. They actually encourage you to do this because the more successful you are the more they think you’re going to pay in the future.
I started sharing this insight this past year with a few close friends and associates. They couldn’t believe what I was telling them, the first thing out of their mouth was, “Is this Legal?’ LOL...YES! This is very legal.
Last year Jared would’ve had to pay more than $29,000 in federal taxes and instead paid $6,250… He saved over $22,000 in federal taxes and instead he’s able to take that money and re-invest it into making more sales and his commissions are up more than 20%
Today, I am passionate about helping hard-working W2 wage earners maximize their money so they keep their hard earned money, instead of forking it over to Uncle Sam. I’ve committed to helping individuals from all walks of life work smarter, save more, and reach their financial and professional goals. I want the same for you.
