Another $econd Opinion on Paying Less Tax
This is a huge topic and people dedicate their entire careers to learning this field. I will not try to outsmart a professional tax account, but encourage you to seek someone specializing in tax accounting for wealthy individuals when it comes time to do your taxes. While a personal finance professional might be able to get you a few extra percent in investment growth, an experienced tax accountant can save you up to fifty percent (in the top tax bracket) by find ways to (legally) shelter as much of your income as possible.
Maximize your Retirement Contributions
This is probably the best way to minimize your tax bill since your money is being placed into an account to grow tax free until you’re ready to retire. There are many different retirement accounts out there, don’t get too bogged down in the details of each one, chances are there are only a few options to you anyway.
It’s important to “max out contributions” right away- it gives them more time to grow and you’ll also not have the issue of getting used to a certain lifestyle then need to cut back so you can fund your retirement.
Contribute to a Health Savings Account (HSA)
Some consider this the “triple tax break.” Basically you can put pre-tax money into an investment account specifically dedicated to health care expenses. While in this fund, the money will grow tax-free. When it’s time to use this money for health care expenses, you can withdraw the funds tax-free.
Deduct mortgage interest and taxes
While student loan interest in not deductible once you’re earning an attending salary, you can write off mortgage interest and property taxes. This is a no-brainer, but needed to be listed as it is often a substantial tax deduction for those in the higher tax brackets.