It’s possible to pay $150 in taxes on an income of $150K
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It’s possible to pay $150 in taxes on an income of $150K
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Re: It’s possible to pay $150 in taxes on an income of $150K
#2Yup.. you don't really start to get hit by federal taxes bad until after that 150k mark. You'd still be getting wrecked by property taxes or rent and sales tax in my state though.
Re: It’s possible to pay $150 in taxes on an income of $150K
#3Their after tax is $70K. What’s their rent or mortgage? 3 kids, what do they pay for childcare?
Re: It’s possible to pay $150 in taxes on an income of $150K
#4The author has 3 children, and that's a _household_ income of $150000. 150 grand is not a huge family income to support 2 adults and 3 kids; as a country, we give people tax breaks to encourage having children and to help support people who make that choice.
Calling this "Houdini-like" (author's words) tax hacking seems like a bit of a misunderstanding of deliberate social policy!
Re: It’s possible to pay $150 in taxes on an income of $150K
#5This is for a couple with kids, so both can max-out 401(k)s, IRAs are still a thing wen you make The other giant caveat is they merely deferred taxes on $46,000.
Re: It’s possible to pay $150 in taxes on an income of $150K
#6Their after tax is $70K. What’s their rent or mortgage? 3 kids, what do they pay for childcare?
and watch it come out that their parents take care of their kids and their house is paid off :D
Re: It’s possible to pay $150 in taxes on an income of $150K
#7[deleted]
Re: It’s possible to pay $150 in taxes on an income of $150K
#8Good on the author for making use of these tax benefits. I don't see anything out of the ordinary here. For govt workers, the 457 benefit seems really nice. Having kids in an LCOL area seems to be very doable. I imagine the same article but for 10x the income would be "interesting".
As a side note, it's worth indicating that if you work at FAANGs and other types of companies, you can use the mega backdoor Roth IRA method [1] to put up to $38k away in retirement accounts a year.
[1] https://www.nerdwallet.com/article/investing/mega-backdoor-r...
Re: It’s possible to pay $150 in taxes on an income of $150K
#9The author has 3 children, and that's a _household_ income of $150000. 150 grand is not a huge family income to support 2 adults and 3 kids; as a country, we give people tax breaks to encourage having children and to help support people who make that choice. Calling this "Houdini-like" (author's words) tax hacking seems like a bit of a misunderstanding of deliberate social policy!
>>150 grand is not a huge family income to support 2 adults and 3 kids
An awful lot of families are doing this on 1/3 of that amount.
Re: It’s possible to pay $150 in taxes on an income of $150K
#10I mean why is this that surprising? Almost half the country doesn't even pay federal income tax.
Contrary to a lot of narratives at-least at the federal level it is almost completely funded by the "rich".
Now at the local level we can have a different discussion about regressive taxes like sales, gas, etc.