The U.S is a TAX haven, don't forget.
 

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For 32 years, I lived in the highest-taxed country on earth - Denmark.

...boy do I know what 57% income tax and 25% VAT feel like 🤢

The U.S is far more friendly - but you have to dig in a bit.

Now, I love saving money in my budget.

But the 800-lb gorilla is when I save on taxes.

Here are a few things to consider:

SELF EMPLOYED:
Consider filing taxes as an S-Corp. This may save you considerably on FICA taxes. Once combined with a Solo 401K, you can continue deferring tax and lowering your W2. In addition, the S-corp can contribute 25% of your W2 to your Solo 401K - another deduction on the business side.

For more details on the S-Corp and Solo 401k

 

SALARIED:
If your company has a 401K plan, you want to contribute up to any match, not to leave free money on the table. But why not contribute even more? for 2025 the limit is $23,500 (+ $7,500 if over 50).

EITHER WAY:
1) You are saving taxes you otherwise would have paid.

2) Those saved taxes + your actual contributions can begin compounding tax-free.

But there is more....

If you have access to a High Deductible Health Plan (through Obama care or your workplace) you can contribute to a Health Savings Account (HSA). For 2025 that is another $4,300 (individual) or $8,550 (couple/family), which will lower your taxes.

For more details on the Health Savings Account

Whenever you lower your taxable income through tax-deferred contributions the benefits can compound into:

- Qualifying for Obama care subsidies
- Lower capital gains.
- Higher child tax credits.
- And more.....

As always - Get professional advice from a tax professional.