I'm literally sick to my stomach. My husband makes $290,000 a year and we are taxed at 39% federal, another 5% for IL state tax and another 6.2% for FICA and Medicare. This, of course, does not include health and life insurance deductions. WE ARE NOT RICH by an means.
We do need the money to pay for our mortgage, taxes, food, gas (only 2 cars) and 3 animals, but we do help our adult children on occasion with some of their needs in this crappy economy. Our home is NOT lavish, and at best, worth about $290,000. And we are unable to save aggressively.
What on earth do people do in this situation to try and reduce taxes bracket? 401K's have their max and deferred comp is not really an option for us at this point.
Thanks.
Added (1). Thanks everyone for your input! I didn't say we broke, poor or couldn't save at all, so I don't understand the harshness from everyone. Sign o the times, I suppose.
Read more: We are not rich, why are we taxed like we are?
