4 Tax-Reduction Tips from 6-Figure Earners Secretly Juggling Multiple Jobs
Some Americans are secretly balancing multiple remote jobs and leveraging tax strategies to minimize their tax burdens. Here are four effective strategies used by these high-earners:
- 401(k) Contributions: By contributing to a 401(k), workers can reduce their taxable income, which can lead to significant tax savings. This is a powerful tool for anyone looking to decrease their overall tax liability.
- S-Corporations: Many six-figure earners are opting to form S-Corps. This allows them to pay themselves a reasonable salary while taking additional income as distributions, which are often taxed at a lower rate.
- Deductions for Home Office: With the rise of remote work, claiming deductions for a home office has become more accessible. This can include expenses like internet, utilities, and even a portion of rent or mortgage payments.
- Expense Tracking: Keeping meticulous records of work-related expenses can lead to substantial deductions. This includes everything from software subscriptions to office supplies that are necessary for remote work.
These strategies are essential for maximizing earnings while minimizing tax liabilities, ensuring that those juggling multiple remote jobs can keep more of their hard-earned income.
Image Source: 10'000 Hours/Getty Images
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