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Old 08-24-2016, 04:25 PM
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Tax shelter for back salary settlement

Hello,
I have been awarded a settlement from my pervious employer in the amount equivalent to two years salary. I am looking for advice on decreasing our tax burden.
Stephanie



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Old 08-24-2016, 07:24 PM
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Quote:
Originally Posted by shandrews View Post
Hello,
I have been awarded a settlement from my pervious employer in the amount equivalent to two years salary. I am looking for advice on decreasing our tax burden.
Stephanie
in my opinion, really hard to find appropriate /strategic way to cut your tax liability.
In general there are several routine ways
to lower your taxes; for example,yo may contribute to your pre tax retirement plan,i.e., 401K or etc to lower your taxable income and tax liability on your return; you may choose FSA as Contributions to a flexible spending account avoid income tax and Social Security tax, which can save you 35% or more compared with spending after-tax money. Or you may maximize your tax credits and deductions, i.e. child tax credit or education loan interest expenses or etc Tax credits can lower your tax bill dollar for dollar.sounds funny and less feasible but incurring big medical expenses can result in a lower tax bill. But it can be tough to get much of a break for medical costs. If you're planning a wedding near year-end, put the romance aside for a moment to consider the tax consequences. The tax law still includes a "marriage penalty" that forces some pairs to pay more combined tax as a married couple than as singles.



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