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Greetings fellow fools. Please bear with a brief description of my current situation before I pose my question.

I live in Florida with my wife and two children. We purchased our first home in May ($145K @ 8.5%) and have no other significant deductions.

I have been offered a job that will start this month which will increase my income by $30K to a total of $68K ($55K salary, $13K annual bonus). My wife earns another $22K bringing us to a total of $90K.

We are paying down $45K in consumer debt (not including home mortgage) and have no investments.

How do I avoid getting killed in taxes? What is the balance between tax reducing investments and debt reduction?

Thanks for the assist.

Mike
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