Four huge ways to minimize your tax burden as an American remote worker

I began getting paid for remote web development work when I was just fourteen years old. While my classmates were reading Wuthering Heights in English Literature, I was in the bathroom selling websites. While my friends were in the lunch room, I was in the library building them. Anyway, I was introduced to self employment tax far earlier than most.

I have read the IRS website many times over and have searched under practically every stone in order to find ways to legally minimize my tax burden. In fifteen years of practice, I’ve learned about the things that make the “big” impact. If you use the following strategies, as a remote worker earning $200k/yr you can save yourself millions over the course of your career.

Self employed 401k

This was the first option I pursued that really allows you to save a lot of cash that would otherwise be immediately taxable. The 401k in particular I believe is better than the IRA because the contribution limit is higher and it’s available to high earners where the IRA is capped. Some features of the self employed 401k:

• The contribution limit is over $50k/yr
• You can give yourself loans of up to 50k (allowing you to use your non-taxed income in the real world)