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Subject:
How can I keep more of my income?
Category: Business and Money > Finance Asked by: dorko-ga List Price: $3.00 |
Posted:
16 Nov 2004 11:24 PST
Expires: 16 Dec 2004 11:24 PST Question ID: 429779 |
I am a salaried employee in technology. I am married and we have no kids. Wife is an artist (painter). We do not own a home. Obviously, the standard tax shelters/hacks (mortgage interest deduction, child tax credit) do not work for us. Is there any other way we can minimize our taxes paid beyond a 401k & IRA contribution (really only 401k since it's maxed out)? |
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There is no answer at this time. |
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Subject:
Re: How can I keep more of my income?
From: alexwcovington-ga on 16 Nov 2004 12:09 PST |
Without knowing more about your situation, it would be difficult to suggest a course of action. If buying a home and/or having children is out of the question, there are still a great many ways to take deductions. Buying a hybrid car can get you a $2000 deduction, for example. You can also choose to donate to charity; the reduction in AGI could put you in a lower tax bracket. You can also look at other ways of keeping more of you income, such as cutting uneccesary expenditures from your budget. |
Subject:
Re: How can I keep more of my income?
From: jack_of_few_trades-ga on 16 Nov 2004 12:32 PST |
Even while maxing out a 401k you may still put money into an IRA. The contribution limit in 2004 is $3,000 per individual, so that is $6,000 total for you and your wife (assuming you each individually have an income of atleast $3,000). In 2005 the limit will be raised to $4,000 each. Alex brought up some good points as well, but frankly death and taxes are unavoidable. If you make enough money to max out your 401k and 2 IRAs and still have enough money left that you want to avoid taxes with then I envy your earnings :) Best of luck in your search to avoid Uncle Sam (I avoid him all that I can as well), but do keep in mind everything that he provides for us as well. |
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