Hi all,
I am currently in the process of planning out my tax strategy for 2015, as I know many of you are. I've done some research into the types of deductions/credits I can take advantage of, but would love some more input:
EDIT: I've edited my projected numbers to include some of the suggestions from below:
W2 Income:Job 1: 42,500 + 6,750 bonus (can be as high as 9,000)
Job 2: 8000 (estimate)
Total Income: 57,250Deferred Income:401k: 18,000 (max for 2015)
Total Deferred Income: 18,000Deductions:IRA: 5,500 (max for 2015; traditional, but looking into Roth)
HSA: 0 (need to check with HR to see if we offer a HDHP. If so, 3,350)
Tuition and Fees: ~750
Total Deductions: 6,250 (w/ HSA, 9,600)Adjusted Gross Income: 33,000 (goal: increase deductions to reduce this number to below 30,500)Post-AGI Deductions:Standard Deduction: 6,400
Personal Exemption: 4,000
Total Post-AGI Deductions: 10,400Taxable Income: 22,600Projected Tax Obligation:10% Bracket: 9225 x 10% = $922.50
15% Bracket: (22,150-9225) x 15% = $2,006.25
Total Projected Tax Obligation: $2,928.75Assuming I can reduce AGI by another $2,500+ to be eligible for the retirement saver's credit, this would be $2,354 (922.50 + (20,100-9225)*.15 - 200.) That's literally a $500 tax savings...
About Me:
- I am 21 years old, filing single independent. No children.
- Finishing up my final semester as an undergrad (nights/weekends, part time. I heavy-loaded courses in the first three years.) I'll spend roughly $750 in fees in 2015 for college before I graduate.
- Living in NYC, projected spending (you can check out my journal here http://forum.mrmoneymustache.com/journals/moe%27s-journal-starting-from-zero/) is ~$15k.
Can someone check my math on this? Am I missing any deductions/credits that I can take advantage of?
Thanks so much in advance for your help.
Last Edit: 7:41, 1/2/2015