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Author: TBosh Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121572  
Subject: Running the Numbers Date: 9/18/2000 9:16 PM
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Due to our combined household income of $150K+ ( this is not a complaint- just the facts) my husband and I pay a lot of taxes. Alot more than we each used to pay when we were single.

It seems at this income level, we are losing out in several ways:

1) limits on itemized deductions (especially important now that I have a home office)
2) marriage penalty
3) Roth eligibility phases out
4) limits on otherwise deductible losses generated by our rental property
5) educational IRAs, etc. etc. etc.

We live in the high-tech, high-stress, high-traffic, HIGH cost of living suburbs.The federal income tax code appears to be blind to geographic location. Like, if we were bringing in this income in a small town - now that would be REAL money. Subsequently, we also lose out in that the cost of services that would make our lives easier are also quite expensive. (eg. housecleaners, lawn care, etc.)
Ok - to my point-

my employer has recently introduced a program, which on a case by case, allows certain employees to cut back their working hours - and related salary and benefits - in increments of 20%.
I'm thinking of asking my boss to let me cut back to 80% of 40 hours and 80% of salary and benefits - or perhaps even cut back to 60%.

I have a hunch that this will net us the same income since theoretically we would then qualify for the above mentioned tax benefits.

In order to analyze this - I need to run the numbers.
Would I do that by getting out last years Turbo Tax software and running model scenarios? Any suggestions?
I might be better off getting a tax advisor - but at this point - I'd have to go through the yellow pages - since none of my friends or acquaintenances utilizes a tax advisor. I didn't see any related topics on the Tax FAQ index.

Thanks, all

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