Set up some of your income as deferred income. Or you can buy a house, get a mortgage and become part of mainstream America. You can donate to lots of good causes including a local church. When you get over 11K in deductions that will reduce your taxable income. Get in an IRA or 401K - that will reduce your taxable income. Adopt a child - that will reduce your taxable income. It depends on what you are willing to obligate yourself to. If nothing, then you will just have to pay your taxes - like it or not.

Quit being so greedy and pay your effing taxes. You think you deserve special privileges because you're rich? Quite the opposite. Why don't you give it to charity? They need your money, you won't have to "hide" it, and you should catch a tax break. Plus, they deserve the money more than you.

Haha no hun I went through 8 years of medical school and lived in a library for the majority of my adult life. And now I have 170,000 in student loans I need to pay back, no one deserves the money I earn more then me I assure you. I wasn't asking for your skewed opinion, I was asking for help, if you can't think of anyway to help then please don't respond.

I don't care if you "want" my opinion, you have it. I don't care what you went through to become rich, the point is you ARE, and you're trying to dodge paying taxes? So who is supposed to pay then, the poor people? You are not above the rest of us. Pay your taxes and play fair.

Yea like i said im not rich, im still 90k in debt and need to save every penny i can

The tax code does not favor single people with no children and no house. That is a reality ... even for folks who aren't above the phase-out ranges.

Your income is high enough that you already itemize your deductions, just from your state income taxes withheld or paid (presuming you live in one of the 44 states that has an income tax), but not yet so high that the Schedule A begins phasing out. So, let's look there first. Income tax, already mentioned. Property tax on vehicles. Do you own any investments? Investment interest (usually margin interest from brokerage accounts) is deductible up to the amount of investment income. Charitable contributions. These will all help from the first dollar. Continuing education, unreimbursed business expenses, tax preparation costs are all miscellaneous deductions that would have to exceed 2% of your AGI to help.

Maximize the retirement plan contributions at work, since neither tradition nor Roth IRAs are a good fit for you.

I'd suggest investing in rental property, but you don't want to go further into debt.

Your choices really are limited ...

I wouldn't really characterize someone with debt exceeding his annual income as "rich." Wealth is income that's been saved - someone with a relatively high income but also debt service and expenses that eat up much of that income isn't "rich" until they start saving a good amount of their income.

And depending on where Undynamic lives, $130k in annual income is actually insufficient to live well - Manhattan's upper east side, for example (or upper west side, come to think of it!) would chew up that income and spit him out in a heartbeat.

Finally, while Undynamic makes almost 3 times the average American's salary, he pays way more than three times the average American's taxes, thanks to the progressive income tax. I don't disagree that those who benefit from our system should pay a greater percentage of their income in taxes, but In a nation where the bottom 50% of taxpayers pay only a fraction of total taxes paid, I don't blame him for trying to improve his situation.

As to what Undynamic can do - as a couple of others have said, there's not really a lot. Look at tax-deferred investments like annuities, but use them only for saving over the long term, because they can carry significant penalties for early withdrawal of your money. You'll still buy these using after-tax dollars, but at least you'll be able to defer taxes on the interest.

Avoid like the plague any "investments" tht are designed simply to give you a tax break - the IRS investigates these schemes aggressively.

And use some of your money to help campaign for the Fair Tax, a revolutionary idea that might actually bring some sense to our tax system.

Take good care and have a glorious Christmas!

If you can afford to do beyond putting money in a retirement account, you might consider investments such as rental housing where you can deduct all your expenses, claim depreciation, eventually rack up a big capital gain when you sell.

As a doctor, if you are not an employee, you can have your own small business with plenty of ways to diminish your income with deductible expenses. Furthermore you can put a ton of money away in a KEOGH retirement plan or a SEP.

Right now the interest expense on your loans is deductible.

Well to add specifics to my situation, I live in Albany, NY. I am employed, no small buisness here and I basically just max out my 401k each year, after I saw how little an IRA would help me. I donate a little but its under 1% of my income. And Im just getting on my feet for a year or 2 then moving, so home ownership or apartment renting doesnt seem a viable option for me yet. I guess I'll just have to bite and be taxed rediculously, last year I paid out 49,000 in income tax, cant wait til next month :(

Funny, I can't see any responses howling about you paying your fair share . . .

Anyway, two years is a long time and if you've got some cash available, the current recession means that there are plenty of bargains out there, especially in real estate. Don't turn your back on buying rental units just because you think you're going to move out in a couple of years - what that translates to is time lost. Hook up with a reputable real estate lawyer and a good foreclosure expert and get yourself a couple of bread & butter - type houses - working class houses, not mansions - you know, 3 bedrooms, 2 or 2.5 baths, yellow paint, green trim . . . $150k or so in a normal market, you might be able to snatch a couple of these for between 50k and 75k if you pay cash, a little more if you finance.

If you move, you can sell or hire a professional property manager to manage the property and send you the rent.

Here's something cool - even if you buy with cash, once the recession's over and credit's loosened up a bit, assuming you have decent credit, you can mortgage (or refi) your houses and use the rent collected to pay off the mortgages . . . and the money you got from the mortgages is tax-free (loan proceeds) - put them into more houses or into tax-free investments.

Whatvever - don't lose this time, because wisely invested, the money you invest now will build a large foundation for your retirement earnings.

Good luck!

Undynamic, don't forget your moving expenses and cost of finding your new job will be tax deductible, if you move more than 100 miles. Get out of New York, it is no place to practice medicine. Your salary is pretty low, so I guess you are in family medicine.

Although your taxes are high, and maybe that isn't all that fair, especially when the truly wealthy have all sorts of loopholes to avoid taxes, you are lucky to be able to pay them.

I know, I am single with no kids and before I bought my house I had virtually no tax deductions! I didn't make as much as you though, I was more around the $65-70k bracket. Of course now I am laid off so none of that matters.

The best thing I know of is the maximize your 401k and IRAs and also you may get to deduct your student loan interest, and sometimes also job hunting expenses. I think someone else mentioned deferring some of your income as well. You should see a tax professional to properly claim as much as you can.

Here is a list from the IRS. Maybe you have something.
http://www.irs.gov/taxtopics/tc500.html