Tax Law (Questions About Taxes)/Income tax deductions


Hi Richard,

I just had two sort of related questions:

1) Can you briefly advise (or point to resources) that illustrate how higher income individuals can save on the amount of income taxes paid?

I'm considering taking an engineering job in California that pays $250k/year, but my estimations show that half of that is going to state/federal income tax!

Are there any methods that people in that tax bracket use to save on income taxes (aside from 401K)

2) My second question is: My fiancee and I are considering getting married. Rather than her working, I am considering advising her not to work, and instead claim her as a dependent on my taxes. Can you please advise if this would result in any significant savings? Or is there a method I can use to calculate an approximate amount?

Thank you!

Your calculations are correct, Half of more goes to taxes. Did you calculate in Social Security and Medicare? That is an additional 7.65% of the first $106,800, and 1.45% of everything else. And your employer has to pay an additional matching amount.

Sadly, if you are going to be an employee, there is little that can be done to reduce your taxes. When all the hype and hoopla is over, it is simply paying huge taxes and scrapping for a few dollars of deductions.

As your income goes up your deductions go down.

The only real opportunity to lower taxes comes at the business level.

If you were going to be in business then there is real potential to reduce taxes.

I don't know what your ability would be to negotiate a non-employee relationship.

Call me and we can discuss some paths of discussion that you might take with your employer to be mutually beneficial.

If that is not an option then it doesn't matter how good tax savings might be they are not available to you and would just frustrate you.

Richard Fritzler

Tax Law (Questions About Taxes)

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Richard Fritzler


Specializing in Business and Corporate taxation. Comparing the advantages and requirements of different business entities, such as Sub-S Corporations, LLC`s, Partnerships (Both Limited and General), Doing Business as a Sole Proprietor, or Using a C-Corporation. Issues regarding K-1 distributions, 1040, schedule C, 1120, 1120s. Are you considering domiciling a Corporation in a low tax state? I can review the benefits and misinformation that exists.


I have been in the business of assisting business owners in reducing their taxes and liability since 1986.

National Small Business Owners Association.
Contributing author to "The Corporate Standard Newsletter".

Contributing author to "The Corporate Standard Newsletter".

I have been in the business of assisting business owners in reducing their taxes and liability since 1986.

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