As 23 year old software engineer, what can I do this year to lower my tax return OUTSIDE of purchasing a home?

Question

All advice is welcome as long as it does take advantage of any legal loopholes (I don't want to get in trouble). All I did this year is take the standard deduction with my 1 personal exemption. I wrote off my student loan interest and took the 30 dollar phone credit.

Answer 1

Open an IRA (you can still do this for 2006)

For 2007:
Max out your 401k

Go to school, you can get up to $2000 with the lifetime learning credit (if you spend more than $10000 on school)

Answer 2

dump the maximum amount you can into a 401k & ira. get married and father a child. hope for twins.don't waste time , it's all ready march and they have to be born before dec. 31st. how about starting a part time business ?


as i look up and re-read your question, are you sure you want to lower your tax return ? do you mean tax liability ? lol.

Answer 3

23 years isn't mandatory. 10 isn't mandatory. If he can launch say 5 years well worth it would be adequate to close maximum human beings up approximately it. I say that not because of the fact i'm a Romney supporter, i'm not. i'm in basic terms sick of listening to approximately it.

Answer 4

hmm - does you employer offer a 401-K or 457-B. If not try donating to a charity of your choice. Buying a house is a good investment but it really won't help you on your taxes (not much anyway)

Answer 5

Purchasing a home is your best bet. It will be your biggest tax write off because of the interest you will have as a tax write off for next years taxes. The first so many years you own your home , the payments you make are almost all interest payments.

Answer 6

Give money to worthy causes.

Answer 7

pay yourself ..... IRA !!!!! you'll be glad you did later in life.
I wish I had sooner.