31–40 of 107 posts
Holy shit, $500 a year for health insurance? I pay twice that a month and don't even get an HSA option. Seems weird to put so much into retirement funds if your plan is to retire in your 30s, the penalties of touching that before 60 are pretty substantial. I suspect there's some sort of inheritance of property or something they're not disclosing.
The best tax optimization trick you can do is to open an LLC. Costs $800/year to maintain in California, enables you to claim business expenses for a looot of things. Sometimes surprisingly. You don’t even need a whole lot of revenue. Just sell something, anything, and go for it. The penalty for going overboard is to pay back taxes with a bit of interest. As long as you don’t do anything crazy, you should be fine. Re…
Also the extreme headache of an audit
The 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.
The 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!
The best tax optimization trick you can do is to open an LLC. Costs $800/year to maintain in California, enables you to claim business expenses for a looot of things. Sometimes surprisingly. You don’t even need a whole lot of revenue. Just sell something, anything, and go for it. The penalty for going overboard is to pay back taxes with a bit of interest. As long as you don’t do anything crazy, you should be fine. Re…
Yeah, for anyone reading who needs to read this: don’t do this. Unless you’re running a legitimate business, this is blatant tax fraud. Also $800/yr in California? You people are being ripped off. LLCs aren’t laid any fees to maintain annually in Arizona, and they’re perpetual entities.
Afaik you are “running a legitimate business” as soon as you’re selling stuff. Even if it’s github sponsorships for your opensource projects or whatever.
Fraud is what most people (probably) do — not report that income on your taxes.