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Old 02-08-2014, 08:35 PM   #81
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There are lots of higher income taxpayers with lower rates, I don't see their advantage as my bad fortune, and don't see marriage as a penalty.
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Old 02-09-2014, 09:48 AM   #82
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We didn't have as high of quality problem as you do but it seemed painful. DW finally opened her own FT business(legit), got lots of write offs. She did take a cut, and was responsible for all her SS, it was a good move for her.

Given your income level, not too bad of rate, like that's any concelation. Hey I got to pay an extra 1% every year in city earnings tax. Not to mention the sales tax, had that built into it.

There's been some good suggestions, think thats as good as it gets.
MRG
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Old 02-09-2014, 12:39 PM   #83
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Depending on your employer offerings, consider deferring a portion of your annual compensation. For many years, the DW and I deferred 30% - 50% of gross income (salary and bonuses) while working at a mega corp. Though funds are unsecured in the event of corporate bankruptcy, assets are invested in an S&P 500 index and grow tax-deferred. We FIREd in 2012, and now these balances are paying out over the next 10 - 20 years.
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Old 02-10-2014, 11:52 AM   #84
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Originally Posted by 523HRR View Post
Depending on your employer offerings, consider deferring a portion of your annual compensation. For many years, the DW and I deferred 30% - 50% of gross income (salary and bonuses) while working at a mega corp. Though funds are unsecured in the event of corporate bankruptcy, assets are invested in an S&P 500 index and grow tax-deferred. We FIREd in 2012, and now these balances are paying out over the next 10 - 20 years.
We also took the deferred comp way. We had a lump, 5 yr or 10 yr payout option when DW "retired". Working out well for us. We opted for the 5 yr payout. Should have taken the 10 yr in hindsight.
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Old 02-10-2014, 03:06 PM   #85
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In 1971, I was a Captain in the USAF, my DW had a clerical job. Our federal tax rate was considerably higher than 20%. I don't think you are getting "hosed" on taxes. I offer the following link so that you can see what taxes you could have paid over the last 100 years:
U.S. Federal Individual Income Tax Rates History, 1862-2013 (Nominal and Inflation-Adjusted Brackets) | Tax Foundation
Wow, marginal rates in the 90%+ range in the 40s, 50s and 60s and the 70% range in the 70s !
I should think about converting more to Roth at the current rates.

OP, Tax-loss harvesting, tax-efficient placement of your investments (see bogleheads wiki), HSA are the main ones. You should be glad you are not earning in CA or some other high income tax states. Could be 30K addtl tax.
Also note, you are not paying FICA of 6.2% above about 110K salary each, so your marginal tax rate could actually be lower than a couple making ~110K each.

Business income (schedule C) is unlikely to be of much help. You will need revenue to write-off some expenses to not get flagged by IRS. The tracking, time and energy you put into saving a bit in taxes setting up a business is better put in increasing your salary at your jobs. The goal of more $ in your pocket, not less $ in govt pockets is better for you personally.
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