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As a software developer, have you considered incorporating and being paid as an independent contractor? There are a lot of things you do now that could be written off as an independent contractor such as commuting to an office, purchasing a computer, software licenses, and other office supplies. If you have a home office, you can write off the portion of ...


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Get married Get divorced A huge chunk of your income will be allocated to "spousal support", which is tax deductible for you (taxable for your ex-spouse). This will significantly reduce your tax burden.


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This is what I do. This sounds crazy but it is a lot of fun. I put a lot in HSA and I have a lot of kids (like more than 5). this decreases my tax liability. You end up spending a lot on food, love, music lessons, and Doctor bills (that is why we have HSA) instead of giving to govt. We also have 401k and RothIRA. Watch your debt and you can do it.


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You're probably better off having an accountant or tax lawyer going over your finances than having people on the internet try to come up with ideas that might apply to you, but one small thing is that if you use public transit and your employer has a transit program set up, you can put $265 a month of pre-tax money on a Clipper Card or towards other public ...


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What are the ways I can pay less taxes? Daniel already noted that you can reduce your taxes by making charitable contributions; note that these lower your taxable income and not your taxes. That is, it is a deduction, not a credit. If you give your last earned dollar to charity, it lowers your taxes by the 32 cents that you would have paid on that dollar ...


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your income is personal and will be taxed accordingly. However, if you have different sources of income all accumulated on a sole proprietorship, then is the business getting taxed. If the business reinvested the income on stock market, then a loss is written as debt while a profit is taxed zero. I believe you may reinvest the low-risk income into high-risk ...


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Buy a copy of Lasser, and their 1001 tips books. They pretty much list all the legal ways to pay less in taxes and explain pub 17 much better than the IRS version. See a lawyer if you want to risk some creative ways to avoid taxes. What you could do is to move to a place with NO income tax as you can not avoid Federal taxes but states vary all over ...


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In addition to the other excellent answers, consider doing a "Backdoor Roth IRA." Assuming that your income is too high to fund a traditional IRA with pre-tax dollars, fund it to the max with after-tax dollars, then immediately do a Roth IRA conversion. There is no immediate tax cost or benefit the first year, but as soon as the Roth IRA begins earning ...


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Generally speaking, you cannot lower your expenses related to taxes. You can lower your taxes, but not in a way that will make sense. For example, if you qualify for itemized deductions, then a $1 deductible expense will save you up to $0.32 in taxes. While you did cut your taxes, it cost you $0.68 to reduce your taxes. There are exceptions to the above ...


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One way to pay less taxes is with the mortgage deduction. The mortgage payment replaces a rent payment but the interest on the mortgage is deductible. Then hopefully the property also increases in value by more than the interest cost of the mortgage. Also, consider the property taxes.


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Assuming the bulk of your income comes from "earned income," your best bets are moves that lower your taxable income. You say that some of your salary goes into a 401(k). The more you contribute to your 401(k), the less taxable income you have. In 2019 the maximum amount you can contribute is $19,000. In 2020 that number will go up to $19,500. Other tax-...


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If -- with your existing resources -- you can repair/replace the car after a collision, or non-collision incident (fire, vandalism or falling tree or hail, etc) then by all means cancel comp & collision. If, on the other hand, you can't repair or replace it with your existing resources then definitely keep comp & collision until the car loses enough ...


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If you don't have a loan on your car, you are not obligated to buy comprehensive or collision coverage. But if you drop the coverage, you risk having to pay for any damage that occurs (or replace your vehicle) out of pocket. An added benefit of buying insurance is that if someone else damages your car when you have insurance, the insurance company will do ...


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A few things come to mind: Gifts above $15,000 (raised from $14,000 in 2018) are not necessarily taxable. Gifted amounts over the $15,000 annual exclusion are applied toward the lifetime maximum of $11.4 Million. Only after that maximum has been reached do gifts become taxable. Also, the tax is applied to the giver, not the receiver. Be very careful about ...


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