fat_lazy_union
“Are there really that many variables that w-2s wage slaves can really play, beyond just the normal things one does: pretax deductions, maximizing capital gains treatment, home tax and mortgage deductions?”

I am currently assiting a family who have a kid getting ready to go to school. Mom works a part time job and dad has a S corp. Household income is 80 k and they are complianing that there is no financial aid for them.

Problem here is that they uneducated and are not going to make an effort to learn. Mom is eligible to put up to 70% of her income into a 401K yet elected not too because the company doesn’t match in the first year of employment. Ask if they could live without the income and the answer is yes. So her making 20 means the she could have packed away 14K therefore reducing AGI

Husband owns a business. Does he have a SEP or SIMPLE. Of course not. So he could set that up and reduce his income. Not only does this reduce current tax liability but now by both of them contributing to their retirement accounts they now can get their income down to around 50K where all of a sudden they qualify for CAL grants for their daughters education and Subsidized stafford loans that are interest free while the kids are in school.

So I would say that even you everyday worker can do a lot for himself or herself. These people benefit becaseu they are frinds and I am knowledgeable on these area. But they could have been doing a lot of this for themselves.

What I don’t like hearing is when people say they are screwed becasue they are middle class, or becaeu they aree white or all the other excuses.

Why not admit I am screwed because I am uneducaated and I am too lazy to turn the TV off for an hour each evening to do a little self study. Spend 1 hour 4 nights a week studying somthind and at the end of a year you will know it pretty well.