Tax Strategies For High Income Earners to Help Reduce Taxes

[@Javier_Rodri]

2023 was a challenging year, but I managed to make $250,000 before taxes as the sole breadwinner and head of household. It's a good starting point, but I'm always looking ahead on how to improve.

[@benalfredo]

You might want to consider starting with a a different approach, like the snowball method. Focus on one loan, usually the smallest one, and direct all your resources to pay it off while maintaining payments on the others.

[@clintscott3300]

[] Another option is to work with a money coach or investment advisor. While an investment adviser focuses on the long term, a money coach can help pay off all your debts, maximize cash flow, and create systems for proactive money management.

[@xavier_lucas]

Best option is to geta fianancial adviser like monica mary strigle helps in addressing long and short term goal

[@benalfredo]

That's impressive! Who is Monica , and how can I reach her? I've tried finding a good adviser around me, but it seems impossible without exorbitant fees. Can you share her fee structure as well?

[@clintscott3300]

thanks for this recommendation, googled searched her name and i'm really impressed

[@nicolasbenson009]

Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly.

[@SandraDave.]

Investors should exercise caution with their exposure and exercise caution when considering new investments, particularly during periods of inflation. It is advisable to seek guidance from a professional or trusted advisor in order to navigate this recession and achieve potential high yields.

[@music-jj2pl]

I have to max out my 401k to lower my agi or I get bumped into the next tax bracket. my company doesn't match anything.

[@Bondbeer]

Great video. I do not believe the solo 401k allows 100% of income if you are the owner and/or don’t have any employees. My spouse has a SEP IRA which allows up to 25% of net income after SS tax benefit. We looked at the solo and my recollection was the amount would have been similar. I recently retired and not taking SS so she will be able to offset 100% of her income and keep us in the zero percent dividend and capital gain bracket. Total deductions are $85k ($29k standard $10k family HSA, $3k tax loss, $30k 401k, $6k SEP, and $7k spousal IRA).

[@OroborusFMA]

Starting in 2025 the IRA catch-up amount is going up considerably for earners ages 60-63 (no idea why just those ages). I intend to fully take advantage of that.

[@jjohn662]

Could you do a video about offsetting active income that comes out of 401(k)? What are the options? Starting a business in retirement? Have rental real estate for deduction paper loss purposes?

[@jwillard911]

Are there any tax strategies for people with pensions? I would guess a lot of these would be the same.

[@netllcn]

This video explicitly tells an implicit truth: for high-earning w2 guys, you have no way to reduce (much) tax.

[@Fear.of.the.Dark.]

Agreed. Other than 401k, HSA and dependent care FSA, there is nothing else to be honest.

[@natelammers652]

Can you do a video on Cash Balance Pension plans for self employed. Before I was a partner at our firm we had one and then they got rid of it. We had a good year last year and the taxman pain is making some of us reconsider it. We all take advantage of the 69k 401k, HSA already.

[@topplacetoLive]

Tax insights! What's your go-to strategy for reducing taxes? Share your tips or seek advice below! Let's create a vibrant discussion on smart financial planning.

[@quaternion-pi]

Move out of high state income tax states like CA. The states with the highest income tax for 2023 include California 13.3%, Hawaii 11%, New York 10.9%, New Jersey 10.75%, District of Columbia 10.75%, Oregon 9.9%, and Minnesota 9.85%.

[@OroborusFMA]

Because life in Alabama, Mississippi, Florida, and Texas is so great.

[@dgrove627]

I lived in Texas and moved to Georgia where they do have a state income tax, yet my tax burden went down while my income and property value went up. The problem with tunnel vision if looking at the state income tax is the state still has to bring in the funds to operate so they get it in other ways. My property taxes in Texas were about triple what they are in Georgia. Texas has huge fees for things. My drivers license in ga is $25 for 5 years. In 2005, when I left Texas it was over z$60 for 3 years. Texas has no income tax but fees you to death and property taxes more than make up for the state income tax. By the way, Hawaii has the lowest property taxes in the nation. When you look at states, look at the totality, not the simplistic view of state income tax.

[@quaternion-pi]

TN looks promising - I can only handle so much climate tax in CA@@OroborusFMA

[@quaternion-pi]

True, but CA also is pursuing a net worth tax, and has passed utility rates based on income. I only stay (so far) for the climate. @@dgrove627

[@logicae4096]

Do not come to the Madison WI area. The state income tax tops out around 7% but the property taxes in Dane County (Madison WI) are astronomically high. If I wasn’t bogged down by family, I would have left the county a long time ago. Another to add to the list.