Over $1,000,000.00 Income

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bstuart01
bstuart01 Member Newcomer
edited January 15 in Income

Hello, in the year of 2023 due to some synthetic stock liquidation from my company sale, my income is over a million. I was hoping to get some advice on things I may be able to do to help with the tax burden this will cause.

The only thing I've done so far is to max out my 401k.

Quick background, married with two kids. My wife is a teacher with about $70,000 in student loans. Single home, no rentals.

Thank you for your time in advance.

-Brandon

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Answers

  • BenjaminS
    BenjaminS FreeTaxUSA Agent
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    BStuart, great question! To lower the tax burden that you are likely to incur, you will need to report as many credits, deductions, and losses as possible. All of our credits/deductions are listed in our Deductions/Credits tab. Some that could potentially offer an immediate benefit would be ones such as Charitable Donations, Traditional IRA contributions, purchasing Energy Efficient improvements, purchasing qualifying Electric Vehicles (this credit can go off of your 2022 income), along with all of the deductions you already will get for student loan interest and taxes paid for example. Another option to consider would be selling any stock losses before year end. This would take any capital losses against capital gains income.