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One of the many facets of how to become rich, is controlling your taxes.
Controlling taxes involves maximizing the value of expenditures you would otherwise make. Spending money for the sake of getting a percentage of those dollars back in taxes is foolhardy.
Controlling taxes involves maximizing the value of expenditures you would otherwise make. Spending money for the sake of getting a percentage of those dollars back in taxes is foolhardy.
The last time I paid income taxes was in 1985. I file taxes every year, and I have been audited by the IRS three times, yet it has been many years since I actually paid money to the IRS.
So go ahead and act like you are teaching me something.
When was the last time that you paid income taxes?
Paying zero taxes without knowing the economic situation isn't impressive, in fact it may not be smart as it potentially misses out on having some income taxed at the lowest bracket.
I've paid taxes every year for the last 35 I've been working and have no complaints about it. I've made a good living and have been able to save a fairly sizable amount for retirement.
That's a load of crap. My husband is a high earner and makes 100% in salary, bonus and stock options. It is taxed at ordinary income tax rates and there is NOTHING.....N-O-T-H-I-N-G you can do to mitigate it. It's on a W-2.
You can contribute to 401k or ira. He can probably put money in hsa or flexible spending account. He can time exercising his stock options and selling to offset loses. Many more options if you start a side business, decide to invest in real estate, begin gifting to heirs earlier. You could also have more children or take in a grandchild(but probably not!).
"Your deduction of state and local income, sales, and property taxes is limited to a combined, total deduction of $10,000 ($5,000 if married filing separately"
"Your deduction of state and local income, sales, and property taxes is limited to a combined, total deduction of $10,000 ($5,000 if married filing separately"
Thanks - but what if not married, but joint tenants?
W2 earners are not typically what is meant by "wealthy" on this forum. Your husband is just another poor sucker making other people rich.
W-2 earners can make a lot of money in professional positions. What is your definition of wealthy?
Quote:
Originally Posted by Submariner
W-2 earning can be lessened by charity giving, medical expenses, educational expenses and by business losses.
Nope, not necessarily. Medical expenses need to be 10% of your AGI. We could never come close to that. With the doubling of the standard deduction, we would have to be giving a lot of $$ to make the charitable deductions anymore. You are going to see a big decrease in the charitable giving next year. We do not have a business and we do not have educational expenses that are deductible. It's just a myth that high earners can deduct everything. I know all of you people want to think high earners pay no taxes, but it's just flat out wrong.
Quote:
Originally Posted by charlygal
How will most people do well? A TEMPORARY 2% isn't going to change much. Studies show that among regular people (not wealthy), those making over $75k will benefit the most. The average US worker makes about $35k.
The truly wealthy will make out even better.
Well, let's just start with the fact that the people who are paying the taxes in the first place are higher earners. Sooooo...it's seems logical they would get a tax cut. But many in blue states won't get a tax cut at all. 43 percent of the people pay ZERO federal income taxes. It's not high earners. It's the bottom of the scale.
Quote:
Originally Posted by Submariner
One of the many facets of how to become rich, is controlling your taxes.
Wrong again. See above.
Quote:
Originally Posted by foodyum
You can contribute to 401k or ira. He can probably put money in hsa or flexible spending account. He can time exercising his stock options and selling to offset loses. Many more options if you start a side business, decide to invest in real estate, begin gifting to heirs earlier. You could also have more children or take in a grandchild(but probably not!).
We can do all the things that everyone else does with regard to 401k and HSA. Most deductions phase out over certain income levels. If you don't believe me, google 'tax deductions phaseouts on high earners'. The left in this country has successfully convinced your that wealthy people are all tax cheats. There is no way to cheat if your income is all on a W-2. (Not that I would try anyway). I don't cheat.
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SALT deduction
, $5000 each.
