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Posted on March 25, 2024 by Dan Pascone
Tax Deductions vs Tax Credits for High Earners: What You Need to Know
As your earnings increase, the intricate dance between tax credits and deductions becomes crucial to keeping more of your hard-earned money in your pocket. Think of it this way: tax credits and tax deductions are two independent games you play during each tax year. Both can help you optimize your tax scenario, but each has […]
Posted on March 19, 2024 by Dan Pascone
Case Study: The Alternative Minimum Tax (AMT) and Equity Compensation (ISOs & RSUs)
Bob and Julia both work for fictional tech companies. Bob receives $100k worth of ISOs, and Julia gets $100k worth of RSUs. Their situations are identical outside of their ISOs and RSUs—they have the same vesting schedules and company trajectory, and they even have Goldendoodles named Quinn. Bob: The ISO Guy Bob is granted ISOs […]
Posted on March 19, 2024 by Dan Pascone
What is the Alternative Minimum Tax (AMT) and What You Need to Know in 2024
The Alternative Minimum Tax (AMT) is a separate tax system intended as a minimum floor to ensure that high-earners with extensive deductions pay a minimal amount of tax– either 26% or 28% on a calculated amount. Taxpayers with AMT exposure calculate their taxes twice: once under regular federal tax rules and then a second time […]
Posted on March 13, 2024 by Dan Pascone
Tax Implications of Equity Compensation in Tech: Navigating ISOs and RSUs
Equity compensation is the cherry on top tech companies offer to attract brilliant minds like yours and encourage them to stay for at least a few years. It’s like getting a slice of the company pie; if its value skyrockets, your slice gets sweeter, too. Today, roughly one-third of private and 40% of public companies […]
Posted on March 4, 2024 by Dan Pascone
Harvesting Tax Losses to Beat Capital Gains
Tax loss harvesting is a term that sounds like it should be buried deep in a CPA textbook, but it’s actually a very straightforward strategy every tech professional should have in their arsenal. It’s the financial equivalent of turning lemons into lemonade. When the market gives you a downturn, tax loss harvesting allows you to […]
Posted on March 4, 2024 by Dan Pascone
What are Capital Gains?
Capital gains (noun): The profits from your investments when you sell them for more than you paid. For tech high-earners, capital gains matter profoundly due to three primary reasons: Liquidity Events: An IPO or company sale could result in significant capital gains, which, if not managed properly, can lead to a hefty tax bill. Properly […]
Posted on February 27, 2024 by Dan Pascone
How to grow your wealth, not your tax bill
I speak with twenty-plus high-earning tech leaders in the sweet spot of their careers every week: They’re growing professionally, Making more money, And, painfully, paying Uncle Sam his taxes. For example, the average SaaS employee making $225,000 per year is paying over $68,000 every year in a no-state income tax state like Florida or over […]
Posted on November 27, 2023 by Dan Pascone
6 Reasons You Need a Customized Financial Plan
Everyone has financial goals, but many people don’t have a roadmap that lays out how to achieve them. A financial plan that’s customized to your objectives becomes that roadmap—helping you reach your destination, whatever it might be. If you’ve never thought about how financial planning can help you live the life you have in mind, […]