A-Advantage Investment Services
Can you pay for your medical insurance with pre tax dollars?
Using a section 125 plan or a High Deductible Health Plan you can.
Can you pay for medical expenses with pre tax dollars?
Using A health savings account you can.
Can you save for retirement using pre tax dollars?
Absolutely by using all sorts of tax advantage programs, such as 401(K)'S, 457,and 403(B) plans of the internal revenue code .
You can even pay for a child's education with tax-deferred dollars.
Can you get benefits out of buying property with tax-favored dollars?
Yes-all sorts of government sponsored tax plans are available.
What can't you pay for with tax-advantaged dollars? Unfortunately most of your entertainment dollar, your communication dollar, and your transportation dollar do not have any tax incentive programs available to you. Unless of course you set yourself up in a business where those sorts of expenses become a deductible write off. Then Uncle Sam will subsidize much of what you spend. However, if you look at where the Lions share of your income goes, you would see the highest percentages go to pay for taxes, insurance and housing. Unfortunately food, entertainment, and travel dollars are some of the lowest expenditure items of most people's budgets. Yet they are some of the highest things taxed! Next time you rent a car look at the tax you pay. Want to be disgusted with taxes? Look at the taxes associated with you utility bills. Think that groceries aren't taxed? Check out the 6 to 8% tax paid on your nonconsumable goods. Then look at your total grocery bill compared to the edible items on that bill.