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Ask HN: High income salaried employees – How do you reduce your taxes?

15 pointsby yangikan7 months ago
If you are a W2 wage earner who earn a lot of money through salary, RSUs, etc, could you please share your favorite tax saving strategies? What are some legal ways to save on tax and build wealth? Any references to articles, videos, podcasts?

8 comments

JohnFen7 months ago
I do a 401k (and investing in my businesses, but that&#x27;s neither here nor there) plus whatever my accountant recommends.<p>I don&#x27;t have any problem with the idea of paying taxes, so I don&#x27;t put a large amount of effort into reducing my tax bill. There are more beneficial uses for my time and energy.
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roland357 months ago
Just fund your 401k and pay your taxes! Count yourself lucky!
hiAndrewQuinn7 months ago
I&#x27;m not a W2 wage earner, but for more general investment advice, <a href="https:&#x2F;&#x2F;www.bogleheads.org&#x2F;" rel="nofollow">https:&#x2F;&#x2F;www.bogleheads.org&#x2F;</a> and <a href="https:&#x2F;&#x2F;www.reddit.com&#x2F;r&#x2F;Bogleheads&#x2F;" rel="nofollow">https:&#x2F;&#x2F;www.reddit.com&#x2F;r&#x2F;Bogleheads&#x2F;</a> are always my first recommendation to anyone starting to get into this.<p>And max out that Roth IRA! Its growth potential is unreal, it&#x27;s the best investment vehicle most salaried workers have in their lives and if it wasn&#x27;t capped at $6500 a year or whatever it would be the financial equivalent of a game breaker.
dyingkneepad7 months ago
Choose 3 countries. Live 121.6 days of the year in each. Don&#x27;t pay any taxes because you&#x27;re not a fiscal resident anywhere.
simantel7 months ago
I haven&#x27;t done it, but am genuinely curious about the tax savings of moving to Puerto Rico. From what I understand, you only need to spend 183 days a year there, so you could leave for hurricane season.
nothercastle7 months ago
Max out 401k HSA and all other tax deferred accounts. After that it’s really complicated game playing
idontwantthis7 months ago
I lived outside of the US for five years and claimed the FEIE. That’s about $120k deduction each year. Obviously comes with its own complications and I didn’t do it just for the deduction.
aristofun7 months ago
maximize all your tax defer accounts (pension etc.), postpone cashing out stocks to lower income periods<p>What else there todo (within legal domain)?
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