Taxpayers Strategize About How to Avoid $250K Tax Bracket

Obama proposals raise taxes on high incomes

Some taxpayers say they will try to hold on to more of their money by making less.

President Barack Obama’s budget proposals have drawn the line: $250,000. Many tax hikes and phased out credits will apply to households with annual incomes that cross that line.

A pretty small group of people fall into this category: incomes so close to $250,000 that they could manipulate them to be just lower than the quarter-of-a-million mark.

Always seeking opportunities

Not all people who make this approximate income are opposed to paying the higher taxes. Many people are perfectly happy just having enough money to be comfortable and live without needing payday loans.

However, I can’t say that I was surprised today when I came across an article from ABC News that reports on ways people are trying to skirt taxes.

It’s true, people who make just more than $250,000 could stand to lose more money than they would if they pull in $249,000 instead.

Scaling back business

People with incomes in this range generally are not paid hourly and have plenty of vacation days. So avoiding the extra taxes is more complicated than just skipping work for a few days.

An attorney in Louisiana says she will scale back her business if the Obama tax increases pass. She says she will take on fewer clients to ensure her income falls below the $250,000 mark. ... click here to read the rest of the article titled "Taxpayers Strategize About How to Avoid $250K Tax Bracket"