Finishing the end of the year and looking at the 2025 tax year, I have 1099 income from my business and seeing there’s a possible tax amount owed of $50,000 what is the best thing for me to do in an investment or something else to reduce the amount of money paid to the IRS and what options do I have to reduce my tax liability? Are CDs a good option or stocks and bonds? This 1099 income is in addition to W2 income.
Based on what Mark & Matt always explain, the solo 401K would be a huge investment move to offset taxes, I would defer to them but I believe you should be an LLC instead of a sole prop 1099. If you already max out a 401k, you are left with a possible HSA if you have a high deductible medical plan or back door ROTH..
It’s a llc s corp and my 401k is maxed out. The W2 income is my main job and the 1099 income is my side hustle business. is back door Roth my only option? @Muggs338
Sounds like it…only investment vehicle left and there’s no tax deductions. Curious if Mark or Matt have any input here. I watch their podcasts. The 529 plan if you have kids, HSA if you have high deductible health plan…real estate investment? Become a landlord, the left side of the Trifecta?
Kids are all over 18 now, can I still use that? @Muggs338
I’d defer that to Mark & Matt…