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What can I get into or do this year to reduce my tax burden?
Posted on 4/16/18 at 12:44 am
Posted on 4/16/18 at 12:44 am
Just had a baby two months ago so check that box!
What else can I do to quit paying so much in taxes. My wife and I do fairly well so this year’s taxes sucked. Owed 4K after getting our checks raped each month. We itemized and did the best we could. Hopefully the baby and the new tax codes will help us out next year?
What else can I do to quit paying so much in taxes. My wife and I do fairly well so this year’s taxes sucked. Owed 4K after getting our checks raped each month. We itemized and did the best we could. Hopefully the baby and the new tax codes will help us out next year?
11
Posted on 4/16/18 at 1:04 am to BengalBlood81
The more you make, the more Uncle Sam takes
Posted on 4/16/18 at 6:18 am to BengalBlood81
4K?
WahahahhHhhHh. That’s nothing.
You are still in minor leagues.
Wait until you hit the big league son
WahahahhHhhHh. That’s nothing.
You are still in minor leagues.
Wait until you hit the big league son
Posted on 4/16/18 at 6:21 am to BengalBlood81
You are a W2. That’s problem number 1. You can’t
Expect many deductions as an employee. Now if you were a 1099 whether sole proprietor or s Corp or llc you’d have so many more options.
Expect many deductions as an employee. Now if you were a 1099 whether sole proprietor or s Corp or llc you’d have so many more options.
Posted on 4/16/18 at 6:44 am to BengalBlood81
I believe $13K tax credit for adoptions.
Posted on 4/16/18 at 7:55 am to BengalBlood81
Your salary range would dictate some options...without knowing that, here are some options for most folks:
1) Increase what you are putting into a traditional 401k to the max. I think the max for this is around $18k? Not sure.
2) Max out HSA if you have one. Max would be around $6500 for a family.
3) Change from Roth IRA to Traditional IRA (assuming you currently have a Roth IRA). Max would be $11.5k or so.
Sorry for being generic but more info would be needed to do better.
1) Increase what you are putting into a traditional 401k to the max. I think the max for this is around $18k? Not sure.
2) Max out HSA if you have one. Max would be around $6500 for a family.
3) Change from Roth IRA to Traditional IRA (assuming you currently have a Roth IRA). Max would be $11.5k or so.
Sorry for being generic but more info would be needed to do better.
Posted on 4/16/18 at 8:19 am to notsince98
Or he could have put in 18.5k Into his 401k if he has one as a w2. YOU CAN only choose a TIRA OR RIRA. He can’t do both. He can do one for his wife and himself though.
ETA. CANT MAX OUT A TIRA AND RIRA for one person. same
Cap applies.
ETA. CANT MAX OUT A TIRA AND RIRA for one person. same
Cap applies.
This post was edited on 4/16/18 at 8:29 am
Posted on 4/16/18 at 8:22 am to lsu xman
He never said he wanted to adopt. But yes that tax credit is marvelous. Like i stated above 4K in taxes is nothing. He is limited as an employee but he has some options.
Posted on 4/16/18 at 8:23 am to Fat Bastard
quote:
YOU CAN only choose a TIRA OR RIRA. He can’t do both.
Yes, you can do both a Traditional IRA and a Roth IRA in the same year but that wasn't even recommended.
The IRA cap is the same regardless of whether you do all TIRA, RIRA or a combo of both.....one cap number applies to the combination of both, per person.
Posted on 4/16/18 at 8:27 am to notsince98
That’s my point. Same cap. There’s no reason to split it in his situation. Now a traditional would be good if he had no 401k to lower taxable income. Then it’s tira and no Rira since his goal is either deductions or credits.
Posted on 4/16/18 at 12:19 pm to BengalBlood81
Don't plan on gettzing a baby credit if y'all make a good amount. Your income will probably disqualify you
Posted on 4/16/18 at 1:28 pm to Bonjourno
quote:
Don't plan on gettzing a baby credit if y'all make a good amount. Your income will probably disqualify you
The phaseout for child tax credit this year jumps to 400K. Plus it doubles from 1K to 2K per kid.
A lot more people will be eligible.
Posted on 4/16/18 at 8:37 pm to BengalBlood81
With the 2018 tax reform, it, should be significantly less if all else remains the same for you.
Posted on 4/17/18 at 11:20 am to BengalBlood81
Start a side business- something legit that will allow business deductions. Consult a CPA, get educated on the subject
or you could just have 10 more kids
or you could just have 10 more kids
Posted on 4/18/18 at 8:58 am to BengalBlood81
quote:
What else can I do to quit paying so much in taxes.
Oh look at this $10k charitable deduction I just found!!
Isn't that what most folks do?
Posted on 4/18/18 at 10:26 pm to BengalBlood81
Get you and your wife to claim 0 on your W-2
Posted on 4/20/18 at 8:55 am to BengalBlood81
"Invest" in a conservation easement.
Posted on 4/20/18 at 9:21 am to DaBeerz
Sometimes that still doesn't matter. When you start making more, you need to start withholding more and you need to manually do that. I had that issue with Federal. Other than that 401k, HSA, Traditional IRAs are the best to do to lower your taxable income. After that, its donating money.
Posted on 4/20/18 at 1:46 pm to AUtigerNOLA
I'm in a similar boat as the OP. I max out 401k, HSA, and Roth. But I have a question about traditional IRA: If my wife is a stay at home mother (and thus doesnt work), can I open a traditional IRA in her name and contribute money to that pre-tax?
2nd question: She is thinking of going back to work part-time once the kids are in school. If she does that, can she then open a traditional IRA and fund it pre-tax up to the $18k maximum with her wages to lower our overall taxable income?
2nd question: She is thinking of going back to work part-time once the kids are in school. If she does that, can she then open a traditional IRA and fund it pre-tax up to the $18k maximum with her wages to lower our overall taxable income?
Posted on 4/21/18 at 4:37 am to Htown Tiger
quote:
If my wife is a stay at home mother (and thus doesnt work), can I open a traditional IRA in her name and contribute money to that pre-tax?
Yes you can.
quote:
If she does that, can she then open a traditional IRA and fund it pre-tax up to the $18k maximum with her wages to lower our overall taxable income?
The maximum for a traditional IRA is $5,500. 401k offered by an employer are $18k max.
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