tax question
 

me and mooma will avg around 280k this year,accountant says will
have 2 pay around 36k in fed,soc,state tax we dont own a house
does that sound fair 2 u?

What does owning a house have to do with it? :?

I will assume that is $280,000 gross before expenses. I imagine that you may have $180,000 in business expenses or so, leaving $100,000 in personal income.

Just off the top of my head:
15% self employment tax for social security and medicare = $15,000
Federal income tax at about 25% tax bracket (estimated) = $25,000
State income tax = I don't know

So I come up with $40,000 in taxes so far. When you make money the government always has their hand out.

Now you could discuss tax management strategies with your accountant, or you can take a vacation for the rest of the year so you don't earn as much. :lol:

You can also set up a pension plan for yourself and write some of it off.

thanks, just checking to make sure that my accountant is right. I thought she might have been related to George when she threw them figures out at me. If you know what I mean. :lol:

If you own a house and have it financed, you can deduct the interest expense and taxes. It can really help your tax bite. :wink:

Rev.Vassago; is glad he owns a house.

Are you incorperated? That will help with some of the social security tax. It's not expensive to open a S Corp.

You need to set up a regular IRA or even a ROTH IRA, This year we put $15,000 in ours. That comes straight off your income BEFORE taxes and you don't pay taxes on it until you withdraw funds. If you wait until you are 72, you do not have to pay ANY taxes on it, and you can even earn interest on it, tax defered.

Don't give it away to Uncle Sam. Talk to a investment banker, or financial advisor. Ask your regular bank, they can point you in the right direction. Most bankers will be thrilled to sit down and explain it to you step by step, and it won't cost you a dime for the info.

Hey, I'm in on this one. I still haven't settled on a tax service/tax advisor and I don't want to miss out.

I know of only about three major personal deductions, an IRA, mortgage interest deductions and charitable contributions. I know there is all kinds of off the wall stuff but are there any other biggies of this kind any of you are taking!?

Beach Bum, you mean my credit union will square me away on the IRA even before I find a tax advisor!? And, $15K!!! I thought they were much lower.

Help me out, here!!! :shock:

Social security and Medicare get the same amount either way, so it makes no difference.

You can contribute any amount that you want, starting with $1.00 if you want. Your bank or credit union is a good place to start.