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Re:13 States join the IRS direct-file test after tax prep fi... by poiop on Thursday October 19, 2023 @01:08PM (#37945540)
I am simplifying a bit. I would have to change from employment to invoicing my employer. That would be somewhat beneficial. The real move is to get a new contract with someone else which is very much doable and not as hard as consulting or contracting in other countries can sometimes be. Then you get paid a bit of a premium and can really use the tax benefits of controlling your personal income tax and give out dividends[0].

The things for me is if I go through the trouble I might just do it properly. But that I want to do even less. So then there are a lot more options on the table. If I'm really going to change things up maybe I change careers, location, study, travel or whatever. Which is probably a fallacy.

But I guess the point is that when I file those easy taxes and even tough I don't really dislike taxes or the Swedish tax system I don't think that is the whole story. If you have decent income, and mostly only income, and can't use those personal income tax deductions your tax rate is high enough (50-60% marginal) that it is quite beneficial to hire yourself through a company and get access to those other tax breaks. And if you do then you do complicated taxes (compared to personal taxes).

[0] Basically this. (It's translated to consulting but it isn't really and true for any small company). https://github-com.translate.goog/tomasbjerre/starta-eget-ko...

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