100k, single - how to save on taxes?
I don't have a mortgage, so it doesn't make sense for me to itemize deductions.
Is there anything else I can do?
Answer:
Even if you don't want to purchase a home for your own use, have you considered owning rental properties? Also, make sure that you are contributing the most you can into a tax free 401K plan, especially if your employer matches. Have you finished schooling? You could consider going towards a Masters or Doctorate degree and take educational credits. Are you in a flex spending account for medical expenses? They are tax free as well. Do you own your own business? It would be worth itemizing for business expenses also. Because you can write off the costs of professional fees for advising and tax prep, I would suggest a good CPA or tax accountant that can help set you up with a financial plan for tax cutting. Two books that I have enjoyed reading, both by Suze Orman, were "Road to Wealth," and "You've Earned It, Don't Lose It."
get a good accountant - he will know ALL the loop-hole's, mine;s saved me tens of thousands
If you didn't know the more you make the more money you have to pay back at the end of the year. The less you make the less you have to pay back.
you can still itemize, all the expenses that you had during the year: medical bills(prescriptions..doctor visits) business mileage,
donations, and your work expenses (but that would be under form 2106 Employee Business Expenses)
All that can add up and lower your taxable income.
Well, depending on what state you live in, making 100K a year should allow you to itemize based solely on state income taxes paid.
Doing the 401(k) to the max will definitely help ($15K off your income right there), but of course then you'll have less money to live off of. Unfortunately, wealthy single people are taxed more then anyone else, apparently no one feels bad for them and gives them breaks (not that they should, but of course, they shouldn't give anyone breaks, but that's off-point). Try to do as much as you can with pre-tax dollars. A traditional IRA is another way to go (but I prefer the Roth). I'd definitely talk to a CFP, they'll be able to help you out the most.
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