Read Free on Kindle Unlimited The Race for Money.
READ ABOUT THIS IN MY NEW BOOK THE RACE FOR MONEY.
I asked my CPA accountant, if you have to pay SS tax on all income. She told me something very interesting, that few people know about. There are four major methods to invest your money legally to not pay any FICA tax of 15.3% a year. Refer to the tax code for more information at irs.gov or contact your tax accountant.
You do not pay FICA tax on stock sales, stock dividends, property sales, or property rental. Any income from these four areas is not required to pay the tax. I thought about this and made a plan to have all my income by the age of 60 come from these four areas. I only wish I had done it sooner at age of 50. The power of this savings is incredible. For example if your income is $106,000 per year you are at the taxable maximum amount. This means you are paying in about $16,000 for FICA tax. Over a 10 year period this is $160,000. So if you could derive all or part of your income from the above four sources then you can really benefit.