Lowering Taxable Income?

[undisclosed]

I recently met with an Air Force base firefighter who got a pay raise last year that bumped his family into a higher tax bracket. As such, any means of lowering his taxes is one of the things that he is interested in. My tax knowledge is mostly limited to the taxation of life insurance products and the various types of retirement accounts, so without getting into all of his financial details are there any basic methods that may allow him to lower his taxable income? He could of course contribute more to his TSP, but it had a negative ROR last year and he’s already putting in enough to get the maximum match.

Thanks!

 

[senior-advisor-indiana]

Have him donate all his money to charities or he could just quit his job....I got tired of paying taxes a few years back so I just quit working so much.

 

[Norwayguy]

I recently met with an Air Force base firefighter who got a pay raise last year that bumped his family into a higher tax bracket. As such, any means of lowering his taxes is one of the things that he is interested in. My tax knowledge is mostly limited to the taxation of life insurance products and the various types of retirement accounts, so without getting into all of his financial details are there any basic methods that may allow him to lower his taxable income? He could of course contribute more to his TSP, but it had a negative ROR last year and he’s already putting in enough to get the maximum match.

Thanks!

You hit the nail on the head...He can contribute more to his TSP...Max match is only 5% of his income. Negative return then he may want to change his allocations.

His other options would be to contribute to a Traditional IRA for himself or spouse.

 

[arnguy]

As previously stated, he could quit and take a lower paying job. It's a simple solution.

 

[waynelw]

As previously stated, he could quit and take a lower paying job.

Maybe it's right,if I were him,I will have a try.