5 Tax Strategies the Top 1% Use—and You Can Too

The wealthiest individuals don’t just make more money—they know how to keep more of it by using smart tax strategies. These aren’t shady loopholes. They’re legal, widely available tools that anyone can use with the right support and planning.

At Walker Tax Relief, I help everyday people and small business owners apply these same principles to reduce their tax liability and protect their financial future. Here are five strategies the top 1% use—and how they might work for you too.

1. Work With a Tax Professional Year-Round
The wealthy don’t wait until April to think about taxes. They work with experienced professionals year-round to stay ahead of changes, plan smarter, and avoid surprises.

As an enrolled agent in Northville, MI, I help clients just like you stay compliant and take advantage of every available tax deduction and credit. From IRS representation to year-round tax services, you don’t need to navigate it alone.

2. Form an LLC to Protect Income
Many high-income individuals create LLCs for their businesses to take advantage of pass-through taxation. This structure can reduce overall taxes while offering personal liability protection.

If you’re self-employed or thinking about launching a side business, I’ll help you understand whether forming an LLC makes sense for your financial goals.

3. Invest in Dividend-Paying Stocks or Bonds
Wealthy individuals often prioritize investment income from qualified dividends, which are usually taxed at a lower rate than regular wages. This strategy creates long-term wealth while minimizing income tax.

Looking to grow your income beyond the paycheck? I can help you see how these investment types impact your overall tax picture.

4. Pay Off High-Interest Debt Strategically
Before tax season, many high-income earners work to pay down high-interest debt, especially if the interest may be tax-deductible in certain cases (like qualified student loans or business debt). This move reduces overall liability and increases cash flow.

Together, we can review your financials and organize your business finances to make sure you’re optimizing every line item.

5. Make Charitable Contributions
Giving to charity is not only meaningful—it’s also tax-savvy. The 1% often donate to causes they care about while claiming those donations as itemized deductions. With proper documentation, it’s a win-win strategy that supports the community and lowers your taxable income.

These Aren’t Just Tricks—They’re Tools
These five strategies are completely legal and used by more than just the ultra-wealthy. With the right planning and support from a northville accountant who knows the tax code inside and out, they can work for you too.

Need help applying smart tax strategies to your situation?
At Walker Tax Relief, I provide tax preparation services, personalized support for small business owners, and guidance for those who need help with back taxes or IRS letters.

Let’s talk. I’ll help you move from overwhelmed to organized—and keep more of your hard-earned money where it belongs: with you.