Reply to 200k threshold: taxes?

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[quote=Anonymous][quote=Anonymous]Max out retirement, use flex accounts if available
At some level the AMT hits you, so....[/quote]

AMT only hits you depending one what deductions you take. We make $240k and have never had to pay it. (Of course that just means we pay enough in taxes anyway).

To OP-some deductions (student loan interest for example) phase out at higher incomes. But it's not a bright line when you cross $200k gross because it will be based on your adjusted income after factoring in deductions. Other deductions (mortgage, charitable, etc) do not phase out. If you're crossing the 200 mark after having made a slightly smaller amount last year, you probably won't see major differences. If your income increased dramatically you may notice some things changing.

If you want to avoid owing at tax time, I suggest using the IRS's withholding calculator. You'll need copies of your pay stubs and an idea of what you'll pay in mortgage interest, property taxes, etc.  they'll tell you how to set your withholding so that you neither owe a lot nor get a huge deduction.

If you want to reduce your tax burden, then maxing out retirement is the easiest option. In the future dependent care anD health care FSAs can help as well.
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