Splunkwassup1

Lowering Income Tax Strategies

If you are in the 24% tax bracket (married filing joint, 170-325k) income, what strategies do you use to reduce income tax? The only strategy I know is that if I contribute into a traditional 401k, I can deduct that amount (19k) from the taxable income. I also heard contributing into FSA/HSA, you can deduct the contributions from taxable income. What strategies are you guys using to maximize deductions and save on income tax?

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Adobe excusemepl Jan 28, 2020

Billion dollar question

Splunk wassup1 OP Jan 28, 2020

I am asking because my friend invests in real estate and deducts depreciation and pays very little tax. It seems like a lot of work and was wondering if others had some easier strategy.

Goldman Sachs fake engineer Jan 28, 2020

That's because he isn't getting W2 income. W2 income does not escape the tax man. As you found out, there's lots of ways to reduce your tax burden if you have a good investment vehicle and lots of money to start with.

Verizon Media Igpay02 Jan 28, 2020

Answer: stop voting blue Learn about the political policies you are enabling through your vote.

Splunk wassup1 OP Jan 28, 2020

I need something that I can do right now. I will look at some policies for 2020 election, but for now, I need immediate, short-term strategy..

Akamai Technologies pkaboo2967 Jan 28, 2020

Lower your income! More income means more taxes. Good problem to have.

Splunk wassup1 OP Jan 28, 2020

I am barely making it. My spouse on the otherhand.. Wait, are you suggesting filing separate??

Goldman Sachs fake engineer Jan 28, 2020

Lol of course you file separate if it reduces your taxes...

Microsoft 10c5292v Jan 28, 2020

Take out a $750k mortgage and donate to charity

Splunk wassup1 OP Jan 28, 2020

Great plan, for the future. For now, I dont even have a house to myself.

Microsoft 10c5292v Jan 28, 2020

You don't have any short term options, sorry