This last year I made some money, not a lot by many standards, but enough to be comfortable to a certain degree and then some. Looking at it in retrospect, I’m almost embarrassed that I didn’t save more. Really. I am and that’s one of the things I’m working on for this year. To be a better saver.
But, I digress. Sorry.
Last year I made enough money that I got nailed on taxes. According to my part time job, I don’t work enough hours to regularly take out that much in taxes. Combine it with what I make at my full time job, I make more than enough to get taxed. (I had asked them to take out some anyway, but it wasn’t enough.)
It was enough of a hit that ends up costing me about $700 in the end. Yes, if you’re saying, “Grrrrr.” I’m with you.
I started doing research and talking to people who know far more about this than I do and to sum it up, I basically have three options (legally):
- Quit the job and not have that income for playing/saving or my free gym membership.
- Buy a house or condo/ get married/ have a kid (Basically a major life change that will affect my income levels and deductions.)
- Go back to school and take loans to do it. (I can get income credit for part of my tuition and school fees and deduct the interest for any loans.)
OK first things first, I won’t quit that job until it’s not fun anymore. I like my gym and love my kiddos even when they’re totally being difficult. Not going to happen and as a side note, I get way more out of working with them than they do.
Secondly, I’m not in a position to buy a house or condo right now…getting married and having kids will be wonderful life changes when they happen, but rushing them for tax purposes isn’t my idea of a good plan.
The last option is feasible and I’m looking into it. I do want to go back to school and possibly this is the kick in the pants I need to make it happen. I don’t mind taking loans out for school because I believe the pay off is more than financial.
Do you know of any other LEGAL options? Right now, I’d prefer to take above the line deductions where possible because I don’t have enough to over come the Standard Deduction. I don’t think at least.