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?
Answer: stop voting blue Learn about the political policies you are enabling through your vote.
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..
Don’t forget about charitable donations. https://www.irs.gov/charities-non-profits/charitable-organizations/charitable-contribution-deductions
Lower your income! More income means more taxes. Good problem to have.
I am barely making it. My spouse on the otherhand.. Wait, are you suggesting filing separate??
Lol of course you file separate if it reduces your taxes...
Billion dollar question
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.
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.