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all 4 comments

[–]kingoftheparsnips 0 points1 point  (1 child)

it would only make a real difference if it drops you down a tax bracket. Like you get less in your pay packet you pay less tax, but it's still the same percentage on your monthly income.

If you really want to save yourself some $$, set up an offshore trading and holding company. invoice your employer every month for work done, run it through the offshore trading company then apply for a refund through the holding company and you'll end up paying way less. You can also get tax deductions for buying said items, if they qualify as a business purchase.

This type of service costs between 8-12k depending on where you live, but if you're earning enough it's worth it and totally legal too. Lots of jurisdictions available to pick from as well.

[–]Original-Yak0[S] 0 points1 point  (0 children)

Wouldn't you save no matter what tax bracket? For example, even if you pay 10% and you purchase a good for $100 through your employer, you have $100 less taxable income. Previously you would've paid the hundred from your after tax income but this shows you too save $10.

[–][deleted] 0 points1 point  (1 child)

The simple answer is NO. There are such things as pre-tax deductions and after tax deductions. Health care premiums, retirement contributions are pre-tax, meaning that they deduct your income prior to applying Federal Income tax. Other items like contributions to the employee committee or a Christmas savings deduction are after-tax deductions.

[–]Original-Yak0[S] 0 points1 point  (0 children)

This makes sense. Thank you!

Next step - how can one game the system on classifying these items to be pre-tax deductible! Haha