If you don't understand taxes... You'll spend a third of your life...

14 views Jan 26, 2026 ~2 min read

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If you don't understand taxes...

You'll spend a third of your life working for free.

Here's 13 steps to (legally) avoid 30%+ of taxes:

(from a former Deloitte CPA)

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1. Adjust your W-4 so you "break even" at tax time. A big refund just means you gave the IRS a 0% interest loan.

2. Contribute to your 401k up to the employer match. It's literally part of your salary.

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3. After the match, max a Roth IRA ($7.5k in 2026). You pay taxes now, but withdrawals in retirement are 100% tax free.

4. Then go back and max your 401k ($24,500 in 2026). Every dollar you contribute reduces your taxable income.

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5. If you're 50+, add $8k in "catch up contributions." If you're 60-63, add $11,250.

6. If you have a high deductible health plan, open and max an HSA ($4,400 individual or $8,750 family) for the "triple tax advantage."

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7. Pay medical bills out of pocket while you let your HSA grow.

8. If your income is too high for Roth IRA contributions ($168k+ single or $252k+ married), use the Backdoor Roth:

-> Contribute $7.5k to an IRA
-> Convert it to a Roth IRA

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9. If your plan allows after tax contributions...

You can use a "Mega Backdoor Roth."

This lets you contribute up to $72k/yr...

And withdraw every dollar tax free in retirement.

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10. Use tax loss harvesting:

-> Sell investments that are down
-> Reinvest in similar funds
-> Use losses to offset capital gains
-> Deduct up to $3k against ordinary income.

Losses you don't use carry forward forever...

So a "bad" year can cut taxes for decades.

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11. Donate appreciated stock instead of cash. This lets you skip capital gains tax on appreciation & get a deduction on market value.

12. Consider T-Bills over high yield savings accounts to save on state taxes.

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Example (CA, 13.3% state tax):

-> 4.5% HYSA = 3.9% after state tax
-> 4.3% T-Bill = 4.3% (no state tax)

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13. Bonus deductions for 2026:

- Deduct up to $25k in qualified tips.

- Deduct up to $12.5k in overtime pay ($25k if married).

- Deduct $6k if you're 65+ (phases out at $75k+ single & $150k+ married).

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The tax code wasn't written for W-2 employees.

It was written for people who take the time to learn it.

Everything here is legal.

Everything here is available to you.

The only difference between paying 35% and 15% is education 🤝🏻

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If you want to save on taxes in 2026...

I'm running a FREE event to optimize your taxes.

You'll learn:

✅ How 1% earners reduce taxes without loopholes
✅ Why bad tax strategy makes high earners FEEL broke
✅ How to turn new savings into generational wealth

Free ticket here 👉🏼 budgetdogtax.com/inner-circle-o…

If you don't understand taxes... You'll spend a third of your life...

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