Author Topic: Tax deductions at higher incomes  (Read 2274 times)

yoga mama

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Tax deductions at higher incomes
« on: February 16, 2015, 09:05:46 PM »
I'm working hard to minimize our tax bill for 2015... I have done everything I could come up with so far, and wondering if any tax wizards out there have other ideas?  After all the deductions listed below our MAGI will still be >250K.  Not a bad problem to have, just hoping for help to reduce it further.  We have looked into rental properties (not just for tax purposes) but it looks like we make way too much to benefit from any deductions if we got that started this year.  I am employed full time, my husband contributes minimal income as an independent contractor and we're hoping to take some deductions for business loss for him this year.

Current deductions:
403b (maxed)
457 (maxed)
401a (involuntary)
HSA
medical/dental through work
mortgage interest (we itemize)
charitable donations, etc (itemize)
Dependent care account

GizmoTX

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Re: Tax deductions at higher incomes
« Reply #1 on: February 16, 2015, 09:09:25 PM »
Property tax

yoga mama

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Re: Tax deductions at higher incomes
« Reply #2 on: February 16, 2015, 09:17:44 PM »
Ah yes, we do property tax too, and the tax we pay annually on our vehicles for registration.

yoga mama

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Re: Tax deductions at higher incomes
« Reply #3 on: February 16, 2015, 09:34:28 PM »
Thanks Cathy, this is a very rough estimate and I was just looking for big picture ideas for myself and other mustachians that may have a similar question.  I'm definitely a finance/tax newbie and appreciate any guidance.  I will look into beneficial investment structuring!  Thank you!

ZiziPB

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Re: Tax deductions at higher incomes
« Reply #4 on: February 17, 2015, 06:52:16 AM »
State income tax or state sales tax as well as the property and car tax.   But these probably will make little, if any, difference.  I'm assuming that at your income you are in AMT territory so none of these taxes are deductible.

Investment losses up to $3K (you need to start tax loss harvesting if you have not done it in the past).

Hannah

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Re: Tax deductions at higher incomes
« Reply #5 on: February 17, 2015, 08:07:36 AM »
Energy Savings: Sometimes things like insulating your house, energy saving appliances etc can be tax deductible (of course, don't be stupid, only claim this if you were planning to insulate anyhow).

Rentals: If you rent out a room in your house, 1/2 of utilities and repairs to that portion of the house can be deducted against the income which you received.

Work Expenses: If you pay for internet and cell phones and your "regularly" defined by IRS use those for work, those can be deducted as work related expenses. If you travel more than 50 miles for work, then the difference between the distance from your work, and the travel can be deducted at a standard per mile rate.

Education: Certain Education costs (including the purchase of materials) can be deducted as well, so keep receipts and look into those when the time comes.

Sales Tax: If you bought something really expensive, your sales taxes might be higher than your income tax, so just double check that.

Moving for a job: All moving expenses including mileage on your car are deductible provided you are moving for a job.

Most of my tips are having to with itemized deductions. I got a few thousand dollar refund (when usually I owe) last year, because it so happened that we practically only spent money on tax deductible things last year.