taxes without making enough money to really be anywhere near wealthy.
My wife and I both have pretty good incomes, but it seems like we make just enough to be targeted by Uncle Sam on almost everything. We live pretty frugally, in a $200K house with inexpensive cars, etc. However, we get shafted on almost every potential tax advantage because our income is barely over most tax break thresholds.
- We recently had a kid, but don't get any form of tax break for him.
- The aforementioned kid was in the NICU for 3 months (he's doing great), so we paid a lot in medical bills in spite of having good insurance. However, we didn't quite pay enough to be able to write off any of those medical expenses.
- We both have student loans, so we pay a lot of student loan interest, but we don't get to write off any of it.
Our only significant write offs are from tithing and mortgage interest paid. We've considered maybe buying a rental property, or moving into the country and starting a small farm as a tax shield.
We're both pretty new in our professional careers, and we're aggressively trying to pay off our student loans with any extra income.
I'm just wondering what we can do to limit our tax exposure? Has anyone been in, or known people in this situation? Do I just need to accept the fact that I'll be paying an insane amount on taxes for the foreseeable future?
I'd appreciate any advice.