- Operation the Hustle Newsletter
- Posts
- How Smart Tax Moves can Help Build Wealth
How Smart Tax Moves can Help Build Wealth
Last newsletter we broke down the coffee shop example - how your refund or tax due at tax time works just like paying for your lattes. If you handed the cashier too little, you owed (pay). If you handed too much, you got change back (refund). But here's the thing... that back and forth with the IRS doesn't actually change the tax bill. Using our coffee shop example, it doesn't actually change the total for your order. So what actually lowers your tax bill? Thats what we're talking about today!
Neyra OperationtheHustle
September 29, 2025 • Estimated Reading Time: 4 minutes
When to Actually Save on Taxes?Most people only think about taxes once a year, when they go see their tax preparer to file. Then they get happy they got a refund, or upset and anxious they have to pay and then… they don’t think about taxes again until next year. I’ve worked with A LOT of very wealthy individuals and large businesses, and I’ll you what - they think about taxes WAY more than just once a year. You see, the wealthy see taxes as another tool. The difference isn’t luck… it’s knowledge. Most of us don’t get financial literacy at home or in school. Because of that, most of us just fear taxes - and that’s what holds us back! |  |
As you’ll see below, a lot of actual tax savings options for you will come from investing. If you want to learn more about investing, and potentially also lower your tax bill, i’m having a free beginner class TONIGHT.
I’ve been hosting these every quarter for the last 3 years, this will be our last free beginner class for 2025. We have a packed class tonight, but there are still a few spots left. If you want to learn from a CPA and a Licensed Financial Advisor, reserve a seat!
How to Actually Lower your Tax Bill
If you’re a non business owner, you got a few options on ways to lower what you’re taxed on: above the line deductions, and, itemized deductions or the standard deduction.
Generally it looks like this, you start with income (from all sources) and you can subtract the above the line deductions. From there, you subtract either the standard or itemized deductions (generally whichever is bigger) and calculate your tax due after those deductions. Tax credits are then applied to the tax due.
Above the line deductions
Student loan interest
Health savings account deduction
Educator expenses (teacher expenses)
Traditional IRA contributions (subject to income limitations)
Alimony payments (subject to restriction on timing of divorce agreement)
One half self employment taxes
Self employed retirement
Military moving expenses
Standard deductions (2025)
Single and married filing separately - $15,750
Married filing joint - $31,500
Head of household - $23,650
Itemized tax deductions can include (subject to limitations):
Medical & dental expenses
Taxes - state & local taxes, property taxes, sales taxes, and real estate taxes
Home mortgage interest
Charitable contributions
Casualty & theft losses - from a federally declared disaster area
Other - casualty & theft losses of certain income-producing property, certain unrecovered investment in a pension, and more.
The Mindset Shift
The point of this all isn’t to get a large refund or to dread tax time. It’s simply to learn to play the game! It’s to understand that you can lower your tax bill by investing for your future. It’s knowing what you can deduct, so you can track it during the year and have the correct documentation in place. It’s the peace of mind of knowing even if have to pay a little bit of tax when you file, its not the end of the world.
I hope this has helped you see that taxes aren’t this big scary thing. See you next week :)
Also, I hope to see you all at my free beginner class tonight. Here’s the sign up link again if you want to come!
-Neyra