As a former tax accountant, please don’t use H&R or any of the other quick prep services.

https://www.leadingedgeplanning.com

I’ve heard good things about this outfit, started by one of our CA out of DEN or something like that. Can’t remember the details. But I’ve heard several people use them and like the return. YMMV

 

Wow another contract comment from you when I noted the SWA pilots were going to get a big retro check and they should seek the advice of a tax pro. I never mentioned this was a positive or a negative. It's just facts.

I notice that you constantly reassure yourself about our contract. It smells a lot like insecurity. It's not a good look. If you're happy with what you got there's no need for this.

 

settling for a flat payout based on seat, not work done, doesn't win the contest either...

 

Possible though if Southwest puts money in your 401k it’s untaxed completely right now.

If you put 23,000 in your 401k then you have to pay SS and Medicare first.

If Southwest starts putting money in your pay check because your 401k is full then you have to pay SS and Medicare on that income.

If your earrings are large enough to max your 401k via the company then 100% of that money pays no SS or Medicare.

 

Roth is only better if you bag the tax savings every year.

Apples to Apples means a Roth is one account tax paid.

Deferred is same account pre tax, plus another account with balance of all the annual tax savings compounded.

23,000 Roth or 23,000 traditional plus second account with tax savings of 7,360.

Progressive means nothing because the cost of the Roth is the very last 23k you made for the year which is always the highest rate for the year.

 

I have just decided to adjust my withholding down (not exempt since I don't want to pay penalties) and then see where I need to go from there in March. I have also decided to hire a tax professional and a money "guy" and stop being a DIY sucker. Seeing how much I paid the government this year (spent the full year as a captain who flies a little extra, not a lot) has made me realize that in looking around for the sucker, he was sitting right here all along. I am paying my marginal rate on my straight income like an idiot when I could be avoiding at least some of this and probably putting it into an investment that is going to net me something later.
I think I am officially in the "first world problems" era of my life.

 

I have went through several “money guys,” and honestly the advice they gave is what I already have been doing. That’s of course unless you have a business and a savy accountant that can help you get the max deductions towards that business. The reality is you will pay taxes and to try to dodge them without a business to help you reduce your tax liability is hard.

 

I can’t beat the standard deduction. Gonna go pretax on the 401k vs Roth this year. If I did my math correct I’ll overpay $6-7k on the 2/20 check. If I go exempt on the 3/5 that should eat most of that. Then I can tweak the withholding so they pull a little less out of the next check or two and should be close enough. I don’t have a business or anything where I can fudge the numbers enough to make any kind of difference. I’m officially to the “pay an assload of taxes” era of life. Lol…First world problems.

 

Yeah I hear you. My wife runs a side business that isn't very profitable. Mainly a hobby (no, not a pyramid scheme). I am thinking about about buying a local rental property and letting someone else manage it.

 

I honestly looked into getting properties until I made an appointment with two different tax professionals who specialize in LLC rental “businesses”. To me it was not worth the hassle as well as liability to save the taxes I would. Anyone who says you are going to pay 0 tax is full of sheet it’s almost impossible being in the tax bracket as a maxed out captain. But don’t take my word for it go make an appointment sit down and talk to them. Talk them about your goals etc etc. It’s really hard to avoid year after year total deductions where you’re saving that much money. There is a reason all these management types get paid in “stock” cause capital gains tax is alot lower than payroll tax for them. But if you have a farm that is a gold mine for deductions but alot of work as well. It really comes down to how much time and effort do you want to spend trying to avoid the taxes you are paying out. In some cases it’s going to be like a second job trying to avoid the tax man.