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Author Topic: Blessed Pension, but how to avoid taxes  (Read 1387 times)

The Fishing Colonel

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Blessed Pension, but how to avoid taxes
« on: November 08, 2016, 09:50:18 AM »
I'm blessed with a great pension, but uncertain how to avoid paying unnecessary taxes.  To help, I'm considering starting a small business.  If I make, for example, $5K in the business, can I use money from my pension to fund an IRA over the $5K I made in the business?  Trying to learn ways to reduce my AGI.
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Spitfire

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Re: Blessed Pension, but how to avoid taxes
« Reply #1 on: November 08, 2016, 02:58:03 PM »
Unfortunately your pension will not count as earned income, so your IRA contribution will be limited to your business income.
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Recliner

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Re: Blessed Pension, but how to avoid taxes
« Reply #2 on: November 13, 2016, 03:02:37 PM »
How are pension payments taxed? I thought they were taxed as income
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SnackDog

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Re: Blessed Pension, but how to avoid taxes
« Reply #3 on: November 14, 2016, 01:49:21 AM »
Consider donations, gifts, selling underwater stocks, etc.And don't forget the child credit.

What if you donated your entire pension to your church then happened to volunteer there and get free meals, use of a car, and rent paid?
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