Finanical Advice for a [Single w/ no children, property, not married] claiming 1 on taxes?

Question

I would like to minimize the taxes the government takes out of my checks. Any book on this matter?

Answer 1

The single largest deduction one can have, that would kick you over the standard deduction, would be a house. Once you take into account mortgage interest and property taxes, it is more likely than not you will pay less income taxes since the sum of both mortgage interest and property taxes will be larger than the standard deduction.

Outside of that, with no kids, no house, single, you're pretty much stuck owing the amount of taxes you do. The only way you have of minimizing your taxes is to maximize your 401(k) contributions. Since the contributions are made pre-tax, the money you earn and put into your 401(k) is tax deferred (not taxed now, but taxed when you take the money out). If your employer does not offer a 401(k) plan, then contribute to a traditional IRA. You can contribute up to $4,000 a year, which is then deducted from your gross taxable income.

Or you can earn less money......the less money you earn, the less taxes you pay.

Answer 2

As a tax professional, I have been asked that question. The best answer I can give you is to start a small business in your home. It does not matter if you make any money the first year or two, you can get great tax benefits using a schedule C

Answer 3

If you claim one, you might owe a little bit in taxes every year.
Why not claim zero and get a slightly larger refund.
Not really sure of anyway to minimize taxes.
The taxes are a set rate based on the amount of money you make and the dependants you have.
The deductions are what changes the amount you owe or get back