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Financial Planning / Tax Strategies


Subject:  Lowering Effective Tax Rate Date:  4/15/2013  12:49 PM
Author:  JLC Number:  118441 of 129521

What strategies are people using to decrease their effective tax rate?

DW & I make high 6 figure income (sometimes more). It is almost all W2. I say we earn our income, every penny. It is a little frustrating when our marginal rate is 35% and our effective rate is 34% and then we hear about people with effective rates of 15-20%. What gives?

I know if the majority of our income was dividends and we didn't work things would be different, but we are not there yet.

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