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Fantasy
2006th
Markee
12/5/2018 6:14am
12/5/2018 6:14am
Edited Date/Time
12/8/2018 5:20pm
Me and my wife are in a unique situation this year. We both work for the same company in the steel industry. My pay is performance based bonus, so if we produce more tons, we make more money. Well last year I passed my last technical evaluation for top pay in my department (maintenance mechanic). This has been a record year for the company, so I've made more money in tons and more by evaluation increase leading into the problem...
The problem is being pushed just nearly over into a 2% increase in federal income tax. As of next year, we can max out 401k contributions at 11% a piece from our standard 5% we did this year to help, but that doesn't help me now.
Other than that can you guys think of anything else we can do?
We have no children.
The problem is being pushed just nearly over into a 2% increase in federal income tax. As of next year, we can max out 401k contributions at 11% a piece from our standard 5% we did this year to help, but that doesn't help me now.
Other than that can you guys think of anything else we can do?
We have no children.
You might see if your employer can do deferred comp. you pay with pre-tax money, then pay upon withdrawal. The theory is that you lower your taxable income now, then when you draw, you’re retired so your taxable income is less, ie less net taxes in the end. Doesn’t help this year but it would for future.
Might also look at buying a car if you need one anyway, and/or energy efficient home improvements (not sure if that program is still going).
Semi-flat tax 0-200k @10%, 200k-1mil @17%, 1 mil + @25%
No deductions on income tax.
The Shop
That puts you in control on how much you want to pay in taxes. Want to pay less, then consume less. Consume more, then pay more. Simple. No deductions, no income taxes. Just a straight consumption tax.
But I assume it works like most other countries, if you get bumped into that extra 2%, you are only paying the extra 2% on every dollar in that tax bracket.
So it’s not like you need to sacrifice to get back below that bracket.
Or am I missing the point?
How about a .5% tax on every stock trade?
The current system is so complex and confusing that most people don’t realize how much they’re paying at the end of the day when you take into account all of the various taxes we’re hit with.
But that Escalade would be taxable as that is not needed to survive. If you want to be taxed less on your vehicle then get a Corolla. It's totally up to you.
Want a 5,000 sqft house, then pay more tax on it. Want to pay less taxes, then get a smaller house. Want a vacation home, then pay tax on it. Don't want to pay the consumption tax then don't get the second home.
Generally speaking, those with more money consume more, so they would pay more in taxes. Those that have less money consume less so would pay less in taxes.
The great part is that 1. it's fair to all, and 2. It puts the decision making in your hands about how much you want to pay in taxes. How liberating.
The rich folks with their multiple vacation homes, first glass airfare, BMW's etc would be paying tax on all those items.
Again, it's fair to all and puts the decision in your hand on how much you want to pay in taxes.
Why do higher earners need to spend more 'to survive'?
What you are describing is the reason Paris was on fire last weekend.
Charitable donations. Calculate if giving the church $2000 can save you $2500. If so. Do it. (Example only)
If you plan on having kids consider a college savings If your state allows. In Ohio we can put away before tax money into a college savings. That lowers your rate even more. And seriously you should do this anyway because a college education is probably going to be 250,000+ in 18 years. Or it’s gonna fall flat on its face. Who knows. But might as well get the tax savings now.
Spend the money and see a CPA/financial consultant.
Calculate what you spend in healthcare put it in a HSA.
Can you put money in a Roth IRA if you’ve met your maximum 18,500 contribution in a 401k (if
You can max that out too. I’m not sure about the Roth. Considering starting one of those this year)
Pit Row
I am able to avoid a lot of taxes as a travel nurse. The bad part is that I can't use my non taxed money to qualify for a loan, so I'm kind of screwed. But luckily my wife has a full time non traveling job.
The more you make, the more you'll pay to support all the couch potato leaches.
It boggles my mind how few people know what they are voting for.
I guess Roth IRA is after tax. So can’t see the benefit in that besides saving long term and knowing your getting exactly what’s in that account in the end....I think I’m gonna have another sit down with financial guy see what my options are now. It’s been a few years.
BTW, if it's 10 to 12 I wouldn't be advertising it.
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