How do we get away from paying so much taxes every year?

Question

My husband and I do not have any children and I'm sick of paying out so much in taxes every year. What can we do to get more deductions? Please forgive me I am tax ignorant. We have no investments and dont own anything. Any ideas? Just sick of paying out so much all of the time.

Answer 1

Paducah billy is right, but your taxes will not be reduced by $1 for every dollar you give to church or charity. The actual amount depends on your tax bracket.

You need to discuss this with a tax accountant. (I believe his fees are tax deductible). He might tell you to learn all you can about real estate and the market for it in your community. Mortgages, repairs,etc. are usually tax deductible. The interest on municipal bonds is tax-free. Limited partnerships might also have some merit. But also some risk.There is a risk involved in any of these investments.

If you find some good ideas, let me know. Like many people, I'm getting whacked hard by the Federal and state governments. Good Luck!

Answer 2

Please leave some actual details about your finances instead of vague references for assistance.

Assuming that both you and you're spouse are wage (W-2) earners, you'd need to check the exemptions of your withholdings and compare it to your tax rate.

Are you not having enough withheld from your paycheck to pay your taxes hence, maybe, the reason why you'd probably owe on your return upon filing.

Other considerations...
1. Do either of you have a retirement plan at work? It's a great way of deferring your income and great at building a retirement fund for either of you. You're employer may even have matching contributions.

2. If neither of you have a retirement plan at work, have you considered an IRA, regular or Roth??

3. Have you considered making charitable donations since those are generally tax deductible.

Now, if either of you are self-employed, then that's a whole area of discussion! Basically, do you or have you paid your share of taxes via estimated tax payments on your net income?

Best thing to do is seek financial advise from either a financial planner and/or a tax professional in your local area to assist you with your finances and taxes.

Their fees are tax deductible!

Answer 3

For one thing, you can adjust your withholdings after seeking advice on tax planning to pay only what you owe during the year.

Also, review your credits and adjustments on the 1040 and spend appropriately. This year, you can deduct up to $44,000 if you invest in a SEP IRA and you are Self-Employed. That will reduce your taxable income. You can deduct $3,000 each by putting it into your IRA accounts. You can give to charity, buy a home and pay mortgage interest, buy a rental home, get an electric car, pay state and local taxes, go to the doctor, buy health insurance, buy assets for your business and depreciate them, and a whole host of other things to get deductions.

Answer 4

Some ideas:
401K
Standard IRAs
Flexible Spending Accounts
Mortgage interest and Real Estate tax deductions
Charitable donations deduction
State personal property tax on cars and boats deduction
and more deduction ideas at http://www.businessknowhow.com/money/50deduct.htm

Answer 5

right here is the drill in the real international: human beings enter the country illegally, start up working and pay no taxes! in accordance to the FBI sixty two% of unlawful aliens artwork for money and pay no taxes! the city of Phoenix, AZ will pay 0.5 one billion to teach the youngsters of unlawful aliens! and that's only a million city! There is going your $9 billion and a heck of so a lot greater! study have shown that if American workers did those jobs they could enter approximately 5 cases greater effective than the unlawful aliens who declare 10 babies and get EIC lower back! (If caught they get deported! so they do no longer care because of the fact in the event that they get caught in the country they get deported anyhow!) You get greater taxes paid only in the style of human beings paying taxes sixty two% of criminals vs a hundred% human beings electorate! It would not take a genius to come to a decision that unlawful aliens are screwing the gadget and the U. S. electorate! FYI: in accordance on your figures unlawful aliens make an standard of $27,000 a year only to pay that for the period of taxes! yet you apart from mght state that they only do th jobs that individuals won't do! So does cleansing lavatories and choosing plant life pay that nicely? you apart from mght state that employers earnings from the unlawful aliens! Now that's it? They make large money for the functionally illiterate or they're exploited? that's what occurs once you save analyzing the shi! from the splc! you detect that their lies make impossible claims! in case you seem at their claims it works out to: US employers earnings from unlawful aliens by using paying them large wages for the functionally illiterate! only would not make experience!

Answer 6

Any money you give to Churches or charity you can write off. I paid over $20,000 in 2006 in tax. So I feel your pain.

Also, you can put money in an IRA, not ROTH, or at work, contribute to a 401k, all this makes your Money be tax deferred.

Answer 7

Here's a list of itemized deductions.

http://www.irs.gov/taxtopics/tc500.html

It might be nice to take a moment and figure out how much of your life is funded by paying taxes--clean water, clean air, clean food, roads, police, fire fighters, safety on your job, etc. etc.

Answer 8

If you think that we have it bad in the US, move to Canada or Europe! When the tax men there finish up with you, you'll be BEGGING to come back here!