Where do y’all invest to lower tax rates, I really never thought about it until my annual income exceeded my comfortable return, basically my annual income, including my SS is around 300 a year, I started to invest in local schools, and schools in out of states districts, I know I will be shafted because I have no dependents other than my wife, she has no SS card as she is Brazilian, I do need advise on this
Your wife can be issued an ITIN Individual Tax Identification Number and be claimed as a dependent.
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My wife and I are in a similar boat. High double income, (~500k) and no kids. We max out our 401ks and are getting killed in taxes.
We are looking at buying a house/condo (currently renters). The mortgage interest will be a pretty good tax write off, higher than our standard deduction and reduce our taxes a good bit. At least on paper, buying a place will result in us keeping more of our money at the end of the day.
Do the math on the tax deduction for the mortgage vs just paying the house off really early. The amount of interest on a 30 year mortgage is staggering.
If you invest the money you would use to purchase outright (or pay down principal) while carrying a mortgage, it is fairly common to come out way ahead by keeping a loan. It may not be right decision for everyone, but if you are doing the math, you need to account for investment income.
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