I am single and currently paying $1200/per month in State and Federal taxes.. I am just wondering how can I cut that # down so i wont pay that much per month.. End of the year I only get about $1000 back.. I don't want to open a 401K or IRA account because I dont want to wait another 45 years before i have access to that moeny.. so any other suggestions??
2006-06-13 04:55:50 · 8 answers · asked by fmtjatt 3 in Business & Finance ➔ Taxes ➔ United States
My suggestion is to reconsider the 401K or IRA.
I opened an IRA 15 years ago. I never missed the money. I'm now retired with more than a million $ to play with. I'm in my 50s. I should have started a lot sooner. What your buying with that money is a pile of cash. It feels great to watch the pile grow faster than you can feed it.
The only other way to lower taxes without investing is to get a lower paying job.
If your taxes are $1200 a month you should have more than enough money left to invest and still live good.
2006-06-13 05:18:55 · answer #1 · answered by Anonymous · 3⤊ 1⤋
I am an accountant and unfortunately if your not willing to open up a traditional IRA or any other vehicle you will be in this tax situation being in the single tax bracket is the highest taxed bracket for obvious reasons. You have no children normally no house so its a higher tax. Do you have a child any dependents? What state are you in, how much do you make? This question cant be answered until you talk to an accountant or your HR department and answer those 2 questions. If you have extra money buy a home you will get to itemize your deductions home mortgage interest, real estate taxes.... Do you go to school College? You could be getting the life time learning credit, or hope credit? This question has many different answers it depends on your specific situation
2006-06-13 12:05:07 · answer #2 · answered by n e 1 · 0⤊ 0⤋
You can claim 1 or more during the year and cut that back to 0 around August or earlier. Talk to a local accountant. They can suggest what allowances you can claim and when to claim them.
2006-06-13 11:57:53 · answer #3 · answered by Donkey 4 · 0⤊ 0⤋
Emigrate to Botswana - there is no income tax in Botswana.
2006-06-13 11:59:44 · answer #4 · answered by Smiddy 5 · 0⤊ 0⤋
claim zero on your w4 form then at tax time, claim one exemption.
2006-06-13 12:02:29 · answer #5 · answered by shortymaciam 3 · 0⤊ 0⤋
buy a house
2006-06-13 11:59:38 · answer #6 · answered by Jack Kerouac 6 · 0⤊ 0⤋
LIE
2006-06-13 12:01:07 · answer #7 · answered by wildbillh 1 · 0⤊ 0⤋
buy more stuff!!!
2006-06-13 11:58:49 · answer #8 · answered by mr.need_help_with_homework999999 2 · 0⤊ 0⤋