Friday, January 25, 2013

Tax Breaks for the Rich 2012, 2013

While we all can’t agree on who should pay the most taxes, it’s fair to say that as individuals, we appreciate our tax breaks.

If you make more than $250,000 per year, you’re probably feeling a big portion of the tax hikes that have been put into effect over the last couple of years. If you consider yourself rich, you’re probably working to protect your investments and protect your bank account.

While the IRS loves to get a hold of the money that rich people have, there are ways that even you can save. Here are some of the biggest tax breaks for the rich.

Homeowners Tax Breaks

As homeowners, you know that you have a higher mortgage than lower income families. Potentially one of the most appreciated tax breaks for the rich is the home ownership incentive. In the past few years, middle income families have averaged an incentive tax break of just over $500. Rich people on the other hand see well over $5,000 worth of tax breaks or more than ten times as much when it’s time to file for this incentive.

Investments and Capital Gains

Long-term investments are something that only rich people can usually afford. As you know, middle class families pay a good 35 percent on their income taxes. Investors on the other hand are seeing only about 15% of their long-term investments get turned over to Uncle Sam. For those that are making enough to afford these investments, the savings is absolutely astonishing, and this is one of those things that upset the middle class workers.

Retirement Plans and Taxes

If it seems like a sneaky way to get around paying the government, you’re right. Unfortunately, rich people can take advantage of tax-deferred plans such as 401k’s, pension plans and other retirement funds that can be set up. This allows them to save much more than they normally would. Essentially, the protection that’s necessary for middle-income people is being used by the rich to keep their money.

In the end, the rich get richer, and there isn’t much the middle class can do about it. But the tax breaks for the rich are often also loopholes through laws that are in effect to protect the middle class.

If you should chose to use online tax software such as, TurboTax, they may be able to even more tax deductions you’re not aware of.

You can have the peace of mind knowing your income tax return is filed correctly, and with the guarantee of the biggest tax refund, or least tax owed!

Please visit to file your tax return today!

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