<prompt> Human: I make 115,000 a year as an engineer. 29m What is the best way to reduce my taxable income? Is there a way to move expenses under a business to save money? Will putting more money into a 401K actually save more than paying the income tax? Pre tax 6 of salary into 401K 6,900 a year Paycheck deduction for insurance 120 a month 1440 a month Take home Paycheck About 2,800 every 2 weeks 73,000 a year File single with no kids. No state income tax in TX Mortgage 650 a month 7,800 a year Property Tax 200 a month 2,400 a year Home Insurance 150 a month 1,800 a year Utilities 150 a month 1,800 a year Internet 35 a month 420 a year Own car paid cash in 2014 Car inspection 40 a year Car insurance 65 a month 780 a year Gas for driving to work 40 a month 480 a year Food 500 a month 6,000 a year Anything else I spend my money on is optional. Total min expenses 21,520 a year Money left after minimum expenses, taxes, etc About 4,000 a month or 48,000 a year. So about 30 lost each year to payroll taxes, health insurance, and income tax. It seems like about 20 in taxes a year or about 23,000 a year lost to income taxes. Just want to see if anyone knows how to reduce tax burden like a boss. You always hear stories of rich people who pay no income tax.  <response>: Max your 401k or at least contribute more. You arent contributing enough anyway. IRA, HSA if applicable, 529. Will putting more money into a 401K actually save more than paying the income tax?Yes...? Thats the whole point of contributing with pre tax money... You always hear stories of rich people who pay no income tax.Thats because they live off of money they invested so they pay long term capital gains. 