The SALT deduction limit has been a hot topic recently.
Some say it makes federal tax burden more uniform across states and makes the tax code cleaner / simpler / more fair. Others say it unfairly burdens those in states with high income taxes and high property taxes – Or that it even hurts the middle class especially in those high tax states.
Does the SALT deduction limit impact middle-class households? Should it be increased or repealed, or is it fine as is?
2020 was an interesting year in many ways including all things taxes… I mean, we paid $0 in income tax (again) on ~$143k income.
This was in part because dividends and blog revenue were lower due to COVID-19, which is a bummer. But it is also because we welcomed another child tax credit into the family, which is nice. Plus, he’s kinda cute.
But that’s not all… for all of you tax aficionados, this year’s tax return offers some good examples of both short and long term tax minimization, including use of the Foreign Earned Income Exclusion, the Child Tax Credit (with phase out), capital gain harvesting, Roth conversions, the Foreign Tax Credit (on International equities), and more.
Here it is folks, the post exactly 3 of you have been waiting for… our 2017 tax return. Just in time for the October 15th deadline.
It’s an interesting one this year; 2017 is the first time we claimed the Foreign Earned Income Exclusion (FEIE) which allowed us to once again have income in excess of $100,000 and pay $0 in income tax.
Details on the FEIE were difficult to come by, and examples either lacking or confusing, so this FEIE example is for posterity.
At FinCon 2016 (read my review) Jr was a shrewd negotiator in several business meetings, and an immaculate host for our guests on the houseboat. Clearly he is ready to step out of the shadow of his parents and build a place for himself in this world.
We discussed at length what opportunities would be the best fit for his skill set and experience. It has always been my goal that we coach him to be a problem solver and risk taker. Rather than asking what he wants to be when he grows up, we might ask “What improvements to the world would be most exciting for you to pursue?”
That must have been a little deep, because he just smiled and tried to look cute. And then it dawned on us…
