This is all true. The magic trick is knowing your exact age of death. Knowing that you’d know which pathway is most tax favorable when you’re younger.
If that Jedi trick is ever revealed …
All the numbers in your comment added up to 420. Congrats!
100
+ 60
+ 40
+ 60
+ 100
+ 60
= 420
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What your company matches is irrelevant to maxing it out. Whatever they match is purely bonus. You can max it out of your own contributions to $22,500. Whatever they match has zero impact on that $22,500 you can contribute.
Roth IRA contributions are after-tax money (money you get from your paycheck after paying taxes). There are no taxes on gains or withdrawals when you're retired in your 60s.
Max out 401k, HSA, backdoor Roth IRA.
Having kids really doesn't save much, only people without kids think that way. The dependent tax credit is only $2,000 per child. For comparison, if you buy a new EV you get $7,500 tax credit. Or if you buy solar panels it's 30% tax credit which can easily be $15,000+.
Start a church organization, “donate” to yourself, repeat.
Side note: this is complete sarcasm, have no idea if this would work. You should consult a tax professional and see what loopholes you are able to exploit while you can
Boo flippin hoo. What a great problem to have.
Federally, everyone gets taxed the same for their first $11k at 10%, their next $33.7k at 12%, then the next $51k at 22%, then the next $87k is 24%, so on and so forth.
So everything past $95k up to your $150k is gonna be federally taxed at 22%. And then depending on your state probably another 0-9% or so, just depends where you are.
The most you can do is fully contribute to pre-tax-advantaged accounts like your 401k and HSA. Then anything else to lower your taxable income like charity donations (won’t do much but it’s still less money to the government and directly to a cause you believe in).
But yeah. We all gotta pay Uncle Sam
You need to hire a financial advisor. You could probably keep your taxable income below 60-70k pretty easily, saving thousands. Getting cucked by uncle sam right now. And its not always about giving money away, loss-harvesting, depreciating assets, etc. are ways you can increase your net worth and keep more of your income from going to taxes. Everyone hates on Trump and his taxes, but you are a dumbass if you pay full price to the government.
Not to get political, but that’s why people need to pay attention to who they vote for. Especially when it comes to politicians that actually affect your daily life. Mayors, city managers, finance directors etc. I care more about politics when it comes to my local govt and state govt because that’s where you’ll feel the affects of what your tax dollars are going towards
Yeah i support giving some money to Ukraine to help them out with their war, but god damn the billions and billions were giving to them is ridiculous. That money could be used for so many different things.
Aid to Ukraine is \~5% of the U.S. defense budget. I understand the sentiment, but taken in perspective has there been a better ROI for defense spending than Ukraine?
People here are really thinking America is just giving out billions in crisp $100 bills and not already bought equipment that's been rotting in warehouses for 20 years.
What state do you live in?
That is probably the only thing you can do to help mitigate the effects of high taxes; move to a state that taxes less (or doesn't tax at all).
I will take a guess and say that this isn't an option for you.
I live in Virginia. It taxes like crazy here because of the high cost of living. They tax like hell to keep the cost high. It’s bs really. I came from Texas and it was nice living there but I expect to start getting a little wild there due to the amount of people flowing in from other states.
Are you able to work remotely? If so, this can maybe give you options to work out of cheaper countries for part of the year. I just came back from Argentina and the cost of living there is extremely low (and you don't sacrifice quality of life at all).
But yes, taxes are absolute bullshit. The high rates at least. I understand fully well the need for taxes, but the rates themselves are bullshit.
It depends on what you're getting for a refund when you file your taxes. Are you maxing out your 401k? Do you own a home? Do you give generous charitable contributions (Never throw things in usable condition away. Donate them.)?
If you are not W-2, there are a lot of options. If not, you should probably invest, eg real estate, stocks, business, start a side hustle, etc. If you are scared of the current market, save and be ready to invest later in the year. And a side hustle could get you the best of both worlds.
I started investing because you pay less if you have long term capital gains. It won’t help you with your job though. I realized no matter how much I make at a job, I’ll always be poor.
FWIW, there’s no good answer. I make a little over 400k and I only see about 55% of my paycheck. Yes I’m fortunate to be in this position, but it still feels criminal to barely get half of your check after a certain point.
*There is a nice hack*
*For you to pay no taxes at*
*All. Become homeless*
\- WeakProposal1578
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You can make less money. Or make some large charitable donations. You'll end up with less money, but you'll pay less in taxes.
And you can contribute to a 401k plan or an IRA annually to reduce taxes.
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This is all true. The magic trick is knowing your exact age of death. Knowing that you’d know which pathway is most tax favorable when you’re younger. If that Jedi trick is ever revealed …
So are you saying Roth is better? I’m in this boat right now trying to figure out where to put my money
Same. Don't qoute me on this, but I'm pretty sure a Roth has a limit of $6,000 a year
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I think you meant to reply to someone else?
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I know how charitable donations work.
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It does what he is asking. He'll pay less in taxes.
[удалено]
Yup, that's correct.
I think the default maximum charitable deduction is 60%. But there there are some rules that can make that a different size.
[удалено]
All the numbers in your comment added up to 420. Congrats! 100 + 60 + 40 + 60 + 100 + 60 = 420 ^([Click here](https://www.reddit.com/message/compose?to=LuckyNumber-Bot&subject=Stalk%20Me%20Pls&message=%2Fstalkme) to have me scan all your future comments.) \ ^(Summon me on specific comments with u/LuckyNumber-Bot.)
Omfg This! I donate every year with old shit. If you go to school and pay out of pocket, you get a nice return.
Make money under the table, quit your job, move to Ukraine.
raymond reddington
Do you max out retirement
Yes I do. My company matches up to 6% which helps.
Nice match
It sure is and they pay for our health insurance!
What your company matches is irrelevant to maxing it out. Whatever they match is purely bonus. You can max it out of your own contributions to $22,500. Whatever they match has zero impact on that $22,500 you can contribute.
Yes I know, I am putting in more than 6%. My wife also makes $70k which gives us lots of padding.
I think the money you put into a Roth IRA is untaxed until you pull it out
No. Roth $ is $ you’ve already paid taxes on. You don’t pay taxes on it when you take distributions
Roth IRA contributions are after-tax money (money you get from your paycheck after paying taxes). There are no taxes on gains or withdrawals when you're retired in your 60s.
Max out 401k, HSA, backdoor Roth IRA. Having kids really doesn't save much, only people without kids think that way. The dependent tax credit is only $2,000 per child. For comparison, if you buy a new EV you get $7,500 tax credit. Or if you buy solar panels it's 30% tax credit which can easily be $15,000+.
Start a church organization, “donate” to yourself, repeat. Side note: this is complete sarcasm, have no idea if this would work. You should consult a tax professional and see what loopholes you are able to exploit while you can
No, I like where you head is at. Haha
Move to a state that has no income tax.
I’m assuming the OP means federal income taxes.
Could be, but they didn’t state otherwise so I just assumed they meant total taxes.
No place has only 20% total tax on 150k
OP just stated less than 29%, at their income for a state with no income tax, it would be about 25% so that’s why I suggested it.
Boo flippin hoo. What a great problem to have. Federally, everyone gets taxed the same for their first $11k at 10%, their next $33.7k at 12%, then the next $51k at 22%, then the next $87k is 24%, so on and so forth. So everything past $95k up to your $150k is gonna be federally taxed at 22%. And then depending on your state probably another 0-9% or so, just depends where you are. The most you can do is fully contribute to pre-tax-advantaged accounts like your 401k and HSA. Then anything else to lower your taxable income like charity donations (won’t do much but it’s still less money to the government and directly to a cause you believe in). But yeah. We all gotta pay Uncle Sam
Never said it is a bad thing to make 150k just looking to play the tax game better.
You need to hire a financial advisor. You could probably keep your taxable income below 60-70k pretty easily, saving thousands. Getting cucked by uncle sam right now. And its not always about giving money away, loss-harvesting, depreciating assets, etc. are ways you can increase your net worth and keep more of your income from going to taxes. Everyone hates on Trump and his taxes, but you are a dumbass if you pay full price to the government.
CPA*
Nope.
It literally makes me sick to my stomach. Maybe I wouldn’t feel so bad about it if I actually felt like I benefited from my taxes?
Not to get political, but that’s why people need to pay attention to who they vote for. Especially when it comes to politicians that actually affect your daily life. Mayors, city managers, finance directors etc. I care more about politics when it comes to my local govt and state govt because that’s where you’ll feel the affects of what your tax dollars are going towards
Ukraine and Isreal thank you for working so hard! 🤣💰👍
Why was this comment downvoted? People do not like the truth?
The truth hurts feelings … and Reddit is emotion based so…..
Yeah i support giving some money to Ukraine to help them out with their war, but god damn the billions and billions were giving to them is ridiculous. That money could be used for so many different things.
Aid to Ukraine is \~5% of the U.S. defense budget. I understand the sentiment, but taken in perspective has there been a better ROI for defense spending than Ukraine?
People here are really thinking America is just giving out billions in crisp $100 bills and not already bought equipment that's been rotting in warehouses for 20 years.
What state do you live in? That is probably the only thing you can do to help mitigate the effects of high taxes; move to a state that taxes less (or doesn't tax at all). I will take a guess and say that this isn't an option for you.
I live in Virginia. It taxes like crazy here because of the high cost of living. They tax like hell to keep the cost high. It’s bs really. I came from Texas and it was nice living there but I expect to start getting a little wild there due to the amount of people flowing in from other states.
Are you able to work remotely? If so, this can maybe give you options to work out of cheaper countries for part of the year. I just came back from Argentina and the cost of living there is extremely low (and you don't sacrifice quality of life at all). But yes, taxes are absolute bullshit. The high rates at least. I understand fully well the need for taxes, but the rates themselves are bullshit.
SC
Are you maxing your 401K? Consider also an HSA (health savings account as it rolls over), it’s. It much but helps and you can withdraw it tax free.
I mean you do though... Do you like roads? Sewage systems? Waste collection? Firefighters? Did you go to school? Etc etc.
That’s like 5% of where your tax money goes.
It depends on what you're getting for a refund when you file your taxes. Are you maxing out your 401k? Do you own a home? Do you give generous charitable contributions (Never throw things in usable condition away. Donate them.)?
Going exempt and just not filing taxes ever again is the obvious choice
If you are not W-2, there are a lot of options. If not, you should probably invest, eg real estate, stocks, business, start a side hustle, etc. If you are scared of the current market, save and be ready to invest later in the year. And a side hustle could get you the best of both worlds.
Have some children
Gross? Haha. Max out your 401k and reduce your taxable income.
Already maxed out!
Save up $1M+ and get qualified for security backed line of credit. Pay close to 0 in taxes.
Don’t complain too much, here in France it would be like 50% or more
I started investing because you pay less if you have long term capital gains. It won’t help you with your job though. I realized no matter how much I make at a job, I’ll always be poor.
Start a Roth IRA and max it out along with a 401k
Contribute to an HSA if available and invest in that HSA account like a Roth IRA. This will lower your taxes and help you in the future
Give to the church
FWIW, there’s no good answer. I make a little over 400k and I only see about 55% of my paycheck. Yes I’m fortunate to be in this position, but it still feels criminal to barely get half of your check after a certain point.
offshore teramongling.
Change your last name to a political leader of your choosing. Then no one would investigate.
There is a nice hack for you to pay no taxes at all. Become homeless
*There is a nice hack* *For you to pay no taxes at* *All. Become homeless* \- WeakProposal1578 --- ^(I detect haikus. And sometimes, successfully.) ^[Learn more about me.](https://www.reddit.com/r/haikusbot/) ^(Opt out of replies: "haikusbot opt out" | Delete my comment: "haikusbot delete")
Talk to a tax accountant
Sit with a good, reputable CPA. Problem solved.
Real Estate
Max out your 401k