How do you top earners of $500k tc save paying taxes? My yearly TC is in low $100s and last year in Dec I sold some stock(NQSO stocks from an older employer and not Apple RSU which is arrested as W2 income), hoping to buy a home but didn’t. This moved my wages to upwards close to $500k which put my tax rate high. Is there anyway I can save on taxes now, as a 30yr old am I eligible to fund IRA/Roth IRA before the tax filing deadline to minimize this tax bill?
Software Engineering Career
Yesterday
1922
Cleared Amazon onsite, but lowballed.
Tech Industry
Yesterday
2799
I am starting to think Chinese interviewers currently fail non-Chinese candidates on purpose.
Tech Industry
Yesterday
761
Relocating to India from USA
Tech Industry
Yesterday
3705
Crossed a line with my boss
World Conflicts
Yesterday
500
American police seem to work only when Israel is challenged
The damage is done. No way to fix this now. Welcome to progressive taxation.
For future reference, what else I could’ve done differently to avoid this tax bill except maximizing 401k deductions and buying a house? 😕
Spreading the selling over multiple years. Of course, that subjects you to market risk.
If stonks were held longer than 1 year, they shouldn’t affect your AGI. Flat 16% long term capital gains. Buying a house is a great tax dodge. Not sure what else for average high earner. I paid 100k in federal taxes last year, TC about 350k. Ugh.
NQSO proceeds.. not considered capital gains 😕
How is buying house is a great tax dodge? Please explain
Your considered rich, you are so blessed to be making so much that frankly you don’t pay enough. This is why I’ll vote for Bernie so he can have the gov confiscate at least 70% of your income and distribute it to the less fortunate. That would be fair for everyone else. At least Biden only wants 40%. Lol
Lol. You missed the part my TC is low 100s. I am not where near rich 😀
Lol never understood why should rich folks pay more than what they've already doing. We live under the same system, if you're poor it's because of your own choices! 80% of millionaires are self made first gen ...
Exercise some of your options throughout (Ie right when they vest) when the gain is smaller and diversify. Or simply exercise and hold (> 1 year) if you believe in the company that much. Can hedge by say just exercising 50% and diversifying while keeping the remaining.
so you had a gain in income of 400k and you’re worried about 35k in taxes?
How can buying the house save capital gains?
It does not. Buying a house gives you a higher deduction and can offset wages and short term capital gains. Holding longer than a year makes it long term and is only taxed at 16%.
this ^^
Own a business.
This is the way. I write off 50k in taxes every year. Plus I have two kids and my wife doesn't work.
@netflix king p what kind of business?
Hi, Uncle Sam here. Can you send $35k to my BTC address? Thank you.
Lmao
..and here I thought there would be cake 🍰😑
Just pay them and be proud that you've contributed back to a society that made your success possible. You made 15x the median income.
That works until you look at what that money is spent on.
Like the military?
The stock sold should be capital gains
Not this one, the proceeds are from NQSO sale which is treated as W2 income.
brutal