Tax reduction assistance.

[swamp]

Help. DH and I just got our taxes back from the accountant, and we're getting pounded.

I'm self employed, so I run whatever expenses I am allowed to through the business. Both DH and I max out our retirement accounts, a 403(b) for him and an SEP/IRA for me. We have 2 kids.

We make too much for the student loan deduction, we make too much to contribute to regular IRA's. I don't particularly want to be a landlord, so no investment property.

Any ideas to reduce our tax burden?

[phil5185]

Both DH and I max out our retirement accounts, a 403(b) for him and an SEP/IRA for me.

The $49k SEP and the $16.5k 403b contributions give you a great write-off, you're doing great. Rental property probably wouldn't be a big help, the expenses are deductible, but you have to pay them first - ie, why spend $10,000 to save $2000 in taxes? Depreciation is a 'virtual' write-off, ie you don't really spend the money - but later when you sell there is 'recapture' - so the write off is temporary.

I like years when I get hit with a huge tax bill - that means that I made good money.

[swamp]

On one side, I appreciate that we are doing well and as an end result pay a whopping tax bil. However, when I see how many dollars we actually paid to the Feds and NYS, I kinda get queasy. A

And then I have to listen to DH rant about "the gubmint" and it's not fair, blah, blah, blah.

[formerexpat]

I'm self employed, so I run whatever expenses I am allowed to through the business. Both DH and I max out our retirement accounts, a 403(b) for him and an SEP/IRA for me. We have 2 kids.

NYS = NY state, right? Are you contributing the max to the 529s for the state tax deduction [$10k per child for MFJ]? That would save about $1.4k [$20k x 7%]. [/size]

[SVT]

What's your tax bill?