what you guys doin wit tax $$
02-13-2007, 03:03 PM
#35
TECH Enthusiast
Originally Posted by 03chevy5.3rcsb
Tax Return: That is what u get when the state and feds screw the guys who work lots of overtime and doubletime and pay alot more throughout the year so they can earn interest on it and still give you a fraction of what you overpayed.
Tax REFUND: What you guys apparently aren't getting.
02-13-2007, 03:21 PM
#36
Must be nice to get a tax return, but then again I have a little different way I pay my taxes. What I do is claim '9' on my W-2 that way the gov't takes very very very little in taxes out of my check, at the same time I pump up my contribution on my 401k (12-14% contribution, which is tax free, thus making my total income less (base pay - 401k Contribution = Taxable income)). Then when tax time comes I take out a tax free loan out of my 401k for one year to pay my taxes that I owe. Pretty sneaky????? By doing this I lower how much I pay in taxes by about $1500, plus it rocks my 401k, so in review:
1. I pay less taxes.
2. I make more interest on my 401k than the loan costs to repay!
3. So I am acutally making money rather than the gov't making money on my money.
4. If you do your precentages correctly your take home pay stays roughly the same......
1. I pay less taxes.
2. I make more interest on my 401k than the loan costs to repay!
3. So I am acutally making money rather than the gov't making money on my money.
4. If you do your precentages correctly your take home pay stays roughly the same......
02-13-2007, 04:06 PM
#37
Import Moderator
Thread Starter
iTrader: (52)
Join Date: Jul 2006
Location: Pittsburgh, PA
Posts: 7,041
Likes: 0
Received 0 Likes
on
0 Posts
Originally Posted by BlackGMC
Must be nice to get a tax return, but then again I have a little different way I pay my taxes. What I do is claim '9' on my W-2 that way the gov't takes very very very little in taxes out of my check, at the same time I pump up my contribution on my 401k (12-14% contribution, which is tax free, thus making my total income less (base pay - 401k Contribution = Taxable income)). Then when tax time comes I take out a tax free loan out of my 401k for one year to pay my taxes that I owe. Pretty sneaky????? By doing this I lower how much I pay in taxes by about $1500, plus it rocks my 401k, so in review:
1. I pay less taxes.
2. I make more interest on my 401k than the loan costs to repay!
3. So I am acutally making money rather than the gov't making money on my money.
4. If you do your precentages correctly your take home pay stays roughly the same......
1. I pay less taxes.
2. I make more interest on my 401k than the loan costs to repay!
3. So I am acutally making money rather than the gov't making money on my money.
4. If you do your precentages correctly your take home pay stays roughly the same......
haha well probably never hear from blackgmc again cause the govts monitoring the internet.
dont you have to pay a pentalty to take that money outta your 401k? unless of course you gotta great company match guess it dont even matter
02-13-2007, 04:11 PM
#38
Originally Posted by beastmode
haha well probably never hear from blackgmc again cause the govts monitoring the internet.
dont you have to pay a pentalty to take that money outta your 401k? unless of course you gotta great company match guess it dont even matter
dont you have to pay a pentalty to take that money outta your 401k? unless of course you gotta great company match guess it dont even matter
It is legal, a
GRAY AREA but legal.....
