2007-09-25 02:51:04 · 8 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
No way to eliminate taxes. Try to maximize your itemized deductions.
If this is a one-time bonus, you can ask that it be divided over 2007 and 2008.
If you have children and want to save for their higher education (or for yourself or your spouse), you could invest in your state's 529 plan after investigating whether there is any state tax reduction for contribution (many states do give tax breaks).
If you switch to a High Dedutible Health Plan, even late in the year, you are allowed a deduction for your contribution. Check with your HR department or your insurance carrier.
You can prepay any real estate taxes due. You could purchase an expensive vehicle (or boat, motorcycle) and deduct the sales taxes on that vehicle if that gives you a higher deduction than your state and local taxes.
If you have investments that you have lost money on, you could sell and take your losses and have a net loss of up to $3,000 reduce your taxable income.
2007-09-25 03:59:04 · answer #1 · answered by ninasgramma 7 · 1⤊ 1⤋
1) Give it away.
2) Lose it all in a bad investment
3) Get hurt really bad and spend it all on medical bills.
Seriously, when all is said and done there is just not much you can do to reduce or eliminate the tax byte.
Look at the bright side. Having to pay taxes on $38k is better than not having the $38k at all.
2007-09-25 09:56:20 · answer #2 · answered by Wayne Z 7 · 0⤊ 1⤋
Nice bonus. You'll have to pay the taxes, but will still have a very nice amount left. Enjoy, and kwitcherbellyakin.
2007-09-25 10:43:39 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
If you've maxed out your 401(k) you've pretty much done all you can to minimize any tax. Anything else that would cut your tax liability would cost more than the tax savings so would not be worthwhile. Sorry.
2007-09-25 09:54:45 · answer #4 · answered by Bostonian In MO 7 · 3⤊ 0⤋
You can't avoid it, your employer will take out federal withholding, social security (unless you hit the social security limit of $97,500 for 2007), medicare, and state withholding (if you have a state income tax).
2007-09-25 09:57:58 · answer #5 · answered by Anonymous · 1⤊ 0⤋
Nada - you deserve to pay taxes just like everyone else.
2007-09-25 09:53:25 · answer #6 · answered by Roland'sMommy 6 · 1⤊ 0⤋
wow...you remind me of those enron dudes
2007-09-25 09:55:27 · answer #7 · answered by Anonymous · 1⤊ 2⤋
sweet christ, what do you do?
2007-09-25 09:58:11 · answer #8 · answered by Anonymous · 2⤊ 2⤋