The Taxman Leaveth: A No-Tax Early Retirement
During our years of wealth accumulation, a.k.a. working, we pay a pretty penny in taxes. We become accustomed to knowing that after a certain point, we might only see about half of each additional dollar earned.
Adding up federal & state income tax and property taxes, many physicians will have annual tax bills exceeding $100,000..
If you’ve managed to accumulate a sizable nest egg over 20 years or less, you’ve no doubt contributed at least $1 million to the coffers of the taxman. I’ve paid closer to $2 Million in the last 15 years.
$100,000 to Spend. Zero Tax.
The Bensons, having paid well over $1 million in federal income tax alone, don’t want to pay that anymore. Like, not at all. Zero. Zilch. Can we get them $100,000 to spend without incurring federal income tax? Sure, why not?
They owe 0 federal income tax. In fact, with only $61,700 in taxable income, they received a refund of $1,227 despite paying no federal income taxes throughout the year. If the stimulus credit hadn’t been issued, their tax burden would have been a paltry $1,173.
Check out all the examples I have in the full post. Lots of info to be shared.
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