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Author: sanb Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120807  
Subject: how do i lower taxes Date: 3/6/2001 4:03 PM
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I am on H1 visa in US. Me and my wife make approx 125,000 a year.

I do not own a house but stay in a apt and pay a monthly rent.

Both of us drive to work from home which is approx 10 miles.

medical insurance premium is deducted from the salary as pre tax

What all can I take in deduction to lower my taxes ?
can I claim gas milegae driven to work
can i claim parking amount paid as deduction
can I claim auto inurance,dental insurance in a way s deductions

thks in advance
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Author: silco Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 47810 of 120807
Subject: Re: how do i lower taxes Date: 3/6/2001 5:47 PM
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If your "household" total income is approx. $125,000.00 and you are here on a visa (maybe having to pay taxes in your "home" country ?) you should consult a Tax Advisor.

You certainly can afford the fees on a T.A. and I don't think, based on the info you provided, that you can avoid lowering your "tax bite" in that you PROBABLY will have to take the "standard deduction" rather than the "itemized deductions".

Gas / parking / auto ins. are usually (99.9999 %) NOT deductible --- unless you have your own business, if your visa allows you to file Sch. C.

Wish I was in your position --- my wife and I live on less than half of your income but own (with a small mortgage / home equity loan) our home and, therefore, can "itemize" our "deductions" due to the interest paid being above the "threshold" for itemizing.

Why don't you buy a home with a small downpayment and minimal costs --- with the income you have you can easily afford it ! !



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Author: BigBunkler Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 47811 of 120807
Subject: Re: how do i lower taxes Date: 3/6/2001 5:47 PM
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sanb asks:

I am on H1 visa in US. Me and my wife make approx 125,000 a year.

I do not own a house but stay in a apt and pay a monthly rent.

Both of us drive to work from home which is approx 10 miles.

medical insurance premium is deducted from the salary as pre tax

What all can I take in deduction to lower my taxes ?

can I claim gas mileage driven to work =No

can i claim parking amount paid as deduction =No

can I claim auto insurance, dental insurance in a way s deductions =Just dental insurance if paid with after-tax money, but subject to the medical deductible of 7.5% of AGI (Adjusted Gross Income).

==
HTH
--BigBunk



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Author: CdSlc Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 47865 of 120807
Subject: Re: how do i lower taxes Date: 3/7/2001 9:39 AM
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I am in the same boat as you are.
Not much can be done to lower your tax bite.
As BigBunkler mentioned, you don't have much deductions to take out.

Contribute the maximum amount possible to your 401(k) or whatever retirement plan your employers offer to you and your wife.

When I had contacted my tax preparer and asked him on ways to lower my taxes, he told me that there are only couple of ways to lower taxes:
- Contribute max. possible to retirement plan.
- Buy a home so that you can itemize your deductions.
- If you have children, you can take additional deductions,credits, etc., and if nothing else can be done then,
- Lower your income.

The last option is not feasible so we are left with the initial three options to work on.

Hope this helps you.
CdSlc.


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