Ways to lower Taxable Income | TigerDroppings.com

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Kingwood Tiger
LSU Fan
Katy, TX
Member since Jul 2005
12245 posts

Ways to lower Taxable Income


Wife just went to CPA...basically getting screwed because we make to much money. We just had a daughter in January, and he told her that we wouldn't even get the full child credit next year because we make to much.

I know there really isn't anything we can do to quit being railed by the great Obama, but do any of you have suggestions?

The CPA said only thing we could do would be to increase 401Ks and do a dependent flex account.







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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
80165 posts

re: Ways to lower Taxable Income


White people's problems.....







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Tmacelroy12
LSU Fan
Houston
Member since Aug 2012
5489 posts

re: Ways to lower Taxable Income


Donate to charities?





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SLafourche07
New Orleans Pelicans Fan
Member since Feb 2008
1307 posts

re: Ways to lower Taxable Income


quote:

we make to much money




I'll trade my income problems with your tax problems.



This post was edited on 2/27 at 11:00 am


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Chris4x4gill2
Alabama Fan
North Alabama
Member since Nov 2008
1924 posts

re: Ways to lower Taxable Income


increase charitable giving and take advantage of any tax sheltered account you can.

Increase 401K. would it be worth it to do a traditional IRA? Start an education savings account/ 529? Dependant care/ flex spending account. Do you qualify for a Health Savings Account?






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geauxnc0308
LSU Fan
pineywoods of ET
Member since May 2008
185 posts

re: Ways to lower Taxable Income


I'm by no means a tax expert but being a W-2 employee what you have listed is about it. But, should you form an LLC and buy a rent house, there are lots of things to depreciate and write-off. Like mileage, portion of your electricity and insurance, etc. Oh yea, the home builder show in Vegas, that’s a business trip. I also looked at real estate investment potential in Hawaii, that’s another business trip. You get the idea. If real estate is not your thing, there are many other home type side business’ to create. That is what opens the door to itemized deductions.





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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
10556 posts

re: Ways to lower Taxable Income


quote:

Oh yea, the home builder show in Vegas, that’s a business trip. I also looked at real estate investment potential in Hawaii, that’s another business trip.


Iffy at best.






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Meauxjeaux
Memphis Fan
I have 89,275 posts with my alters
Member since Jun 2005
16332 posts

re: Ways to lower Taxable Income


Have you looked at buying tax credits in the state's software development program?





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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
80165 posts

re: Ways to lower Taxable Income


quote:

Ways to lower Taxable Income

Quit your job?






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fontell
Auburn Fan
Montgomery
Member since Sep 2006
2428 posts

re: Ways to lower Taxable Income


Schedule A is your friend





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elposter
Alabama Fan
South Carolina
Member since Dec 2010
7751 posts

re: Ways to lower Taxable Income


quote:

Ways to lower Taxable Income


Quit your job, take a lower paying job.







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Queen
LSU Fan
383 miles from Death Valley
Member since Nov 2009
2757 posts

re: Ways to lower Taxable Income


Paper divorce your wife, whoever makes less gets custody.

Or just itemize - if you can for any business expenses or charitable donations.






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geauxnc0308
LSU Fan
pineywoods of ET
Member since May 2008
185 posts

re: Ways to lower Taxable Income


quote:

Iffy at best.


I enjoy the gray areas. But let me rephrase, annual stockholders meeting in Hawaii.

I should also disclose that I buiild a few spec homes each year so that helps with the iffy.

Point is you have to be a small business owner to fully utilize the tax laws to your advantage. W-2 employees are limited.






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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
10556 posts

re: Ways to lower Taxable Income


quote:

Point is you have to be a small business owner to fully utilize the tax laws to your advantage. W-2 employees are limited.


You can be both. I own an LLC but we are treated as an S-Corp for tax purposes. I draw a regular paycheck and receive a W-2 but I can also do disbursements.

I'm leaving for Turks & Caicos tomorrow morning for 5 days. Perhaps it should be my annual Board of Directors meeting?






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BACONisMEATcandy
LSU Fan
Delta, Amex, & Über Threads
Member since Dec 2007
40963 posts

re: Ways to lower Taxable Income


Let me know if you need someone to sit on your board





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CajunFootball
USA Fan
Jackson, Mississippi
Member since Oct 2010
19432 posts

re: Ways to lower Taxable Income


If you don't have a IRA I would go get two of them. Do each of you work, and if so who is the higher income earner?





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ryan985
Member since Nov 2011
1793 posts

re: Ways to lower Taxable Income


Flex spending is great. I put the max in child care and then another grand in medical. I always use every bit of it. Between that and my retirement it looks like I make a good bit less.





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tigers win2
LSU Fan
Baton Rouge
Member since Oct 2009
1918 posts

re: Ways to lower Taxable Income


The AMT has gotten me the last 4 years. Lose all deductions except mortgage interest, charitable contributions and qualified retirement plan contributions. Not much you can do.

Looking at more realestate as an option.






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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
21107 posts

re: Ways to lower Taxable Income


Open a farm.





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