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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 15176
Experience:  15years with H & R Block. Divisional leader, Instructor
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My AGI will go from 90 to approximately 260 this year and

Customer Question

My AGI will go from 90 to approximately 260 this year and this year only. What can I do to reduce my taxes?
Submitted: 1 year ago.
Category: Tax
Expert:  Robin D. replied 1 year ago.


If your increase is all from earned income (wages) then your best option was to make certain you take advantage of any and all benefits that are removed from income pre-tax. These would be 401k and Flexible Spending accounts (medical and daycare).

If this is going to come from capital gains (selling stocks or bonds) you should look to maybe selling shares that have dropped in value so a loss can be used.

Charitable Contributions are another area. They can be used if you itemize and are a dollar for dollar reduction without worrying about Alternative Minimum Tax problems.

Tell me why the large increase and we can address that specifically.

Please advise if you need more information or rating in a positive way is acceptable.