Ask Terry Questions How to lower tax rate

How to lower tax rate

By Terry Savage on January 31, 2024 | Taxes & Economy

My son made approx $65k last year but paid $15.6k in taxes. We live in Illinois. He’s single, no dependents. He’s enrolled in the program at work where the employer matches what he invests. So far after 4-1/2 years he has about $48k in that.
What can he do to lower how much tax he pays? He doesn’t get much back at tax time, about $500, so I know his withholding isn’t bad.
Also, he got involved in a side business as a seller on Amazon this past year. Need to find a tax person for that-is it wise to look for someone who is small business focused or online business focused? Any recommendations?

Terry Says

Unfortunately, for a single person with no home ownership, there are few places to hide from the tax collector! He’s doing the right thing by maximizing contributions to his retirement plan. Those are tax deductible. Probably he is stuck taking the “standard deduction” which will be $14,600 for the 2024 taxable year.

Almost every tax service can help him with those seller transactions. The rules have been postponed for another year,so he likely won’t have an issue for 2023.

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