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Revision as of 18:39, 25 August 2026


Note: This writer is actually a CPA or tax specialized. This article is for general information purposes, and really should not be construed as tax details. Readers are strongly inspired to consult their tax professional regarding their personal tax situation.

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Contributing an insurance deductible $1,000 will lower the taxable income of your $30,000 per year person from $20,650 to $19,650 and save taxes of $150 (=15% of $1000). For the $100,000 12 months person, his taxable income decreases from $90,650 to $89,650 and saves him $280 (=28% of $1000) - almost double the amount!

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Back in 2008 I received an unscheduled visit from girls teacher who had got her tax assessment results. She had also chosen early retirement in November 2007. Yes, you guessed right. she'd taken the D-I-Y option to save money for her retirement.

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