Any Tax advice for just out of college Male Professional

AFAIK, education/home interest & taxes/marriage deductions are the largest. Contributing to a 401K is a good idea too.

I am pretty much in the same position as you are and haven't found anything, really, but maybe some of the more experienced SDers know something.

It's foolish to do something because you want a tax break, because that's all they are, a break. Let's say you have 70k and you do something that costs $1k but is a tax write-off. Now all you do is pay taxes on that 69k, which means if you have a 30% tax rate you're only "saving" $300. If it's something you were going to do already like replace a water heater, yes it might make sense to pay alittle extra if you're getting a better item and that break. Paying into a retirement account is always smart, regardless of the tax break.

Now tax credits is something you should look for, which is a full gimme, like the old 1st time homebuyer's credit. If you just graduated, you may be able to take advantage of some tuition credits, it's been awhile since I did that.

Forgive me if I'm off on terminology, I can do that sometimes. The basics are there. Main thing is don't throw good money after less because the taxman commeth.

Oooh Tell me more about these "tax credits".

I have a quick tip I guess... I use commuter checks -> tax free promotion to encourage use of public transportation.

What else is out there?

Quote from initiative : Oooh Tell me more about these "tax credits". I have a quick tip I guess... I use commuter checks -> tax free promotion to encourage use of public transportation. What else is out there?

We aren't going to know you're whole situation, you got to look it up based on your particulars. Here's a broad-list from my H&R Block Online access:

Quote : Credits reduce the amount of tax you owe dollar-for-dollar. If you don’t owe taxes, they might be refundable. You’ll need: Child and dependent care information, including: Care expenses you paid Care provider's address and Social Security number or employer ID number Tuition receipts and expenses Adoption-related expenses Social Security numbers and birthdates for non-dependents who might qualify you for the Earned Income Credit Retirement plan contribution statements Receipts and manufacturer's certifications for energy-efficient purchases Manufacturer's certifications for hybrid and fuel-efficient vehicles Records of foreign taxes you paid Miscellaneous credits information

Quote from initiative : Are there any government incentives that I can use to get the most out of my hard earned taxes? (Electric vehicle programs? Should I buy property?)

Props for thinking ahead, but you're asking yourself the wrong question. Is there risk your current job will relocate or you will be relocated with a promotion in a year or two? If that's the case, buying property (imo) is an awful idea because it's an anchor. Will an electric vehicle save you money and make you feel warm, fuzzy and green inside? If you already have a perfectly good car that gets you from A to B then don't worry about it, you will be spending a lot of money to get a little tax credit. If you are shopping for a car, want to show off how "green" you are to your buddies and think a Nissan Leaf is just dandy, then take advantage of tax credits.

I would say the best way to "take advantage" in terms of taxes is use any and all "pre-tax" dollars you can (ex. 401k, HSA, commuter passes, etc.) because for every pre-tax dollar you spend (save) you would only ever probably see 60-70 cents of that dollar in your paycheck.

from a tax perspective....there's hardly any credits that you can get for 2011 unless you have some tuition expenses in this year then you will be able to take the lifetime learning credit which maxes out at 2k or something like that.

if you can afford it put the max into your 401k, ira, etc..and if your employer matches that's great!

other than that...there's hardly anything out there that i can think of to help you out.

Quote from a504boi : from a tax perspective....there's hardly any credits that you can get for 2011 unless you have some tuition expenses in this year then you will be able to take the lifetime learning credit which maxes out at 2k or something like that.

And is only $0.20 on the dollar.

No hope for you. Single in California with few deductions is terrible. I feel your pain, I'm in the same situation myself.

Best advice - get out of CA, get married, buy a house, get deductions. That's the only way you'll get any significant tax savings.

Quote from mr_rolla : Best advice - get out of CA . . .

Great advice.

Quote from mr_rolla : That's the only way you'll get any significant tax savings.

Maybe not so great advice.

The best ways to take advantage of the best tax breaks that are out there are through entrepreneurship and real estate investments.

I was in the same position as you 2 years ago. You didn't say if you had any student debt, if you do and its at high interest rates, I would pay that off.

I have matched my 401k contributions with my employer and recently switched to a Roth 401k. I pay taxes now, but I won't have to pay them when I take withdrawals. I have also maxed my Roth IRA and bought two rental properties in Phoenix to lessen my taxes.