Mark Cuban shocked the internet when he revealed that he paid $275.9 million in taxes last year.
Instead of hunting for loopholes, the billionaire investor and former Dallas Mavericks owner said on BlueSky he was proud to contribute, calling taxes part of his duty to the country.
While your bill won’t come close to nine figures, his approach offers a smart blueprint for everyday taxpayers. Keep reading for more details on Cuban’s tax bill — plus five tips to keep yours much lower.
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File Clean and Pay What You Owe
Cuban has said he simply pays what he owes and is proud to do it, as reported by Benzinga. His straightforward approach shows that accurate filing and avoiding penalties is one of the easiest ways to keep a tax bill lower. For everyday taxpayers, this translates to reducing penalties and interest charges that can inflate a bill and having peace of mind knowing everything is in order with the IRS.
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Use IRS Direct File
According to Benzinga, Cuban has encouraged taxpayers to take advantage of IRS Direct File, the government’s free e-file program. It’s a streamlined way to handle federal returns without paying extra fees for software or services. Filing electronically lowers the risk of errors, trims preparation costs and speeds up refunds. For most taxpayers, e-filing is the simplest way to file cleanly, lower their tax bill and keep money in their pocket.
Plan Around Capital Gains
Cuban’s $275.9 million tax bill wasn’t random. He explained to CNBC that much of his tax burden stems from long-term capital gains, which come from selling assets held over time. His experience illustrated how planning the timing of big transactions can lower one’s tax bill.
For everyday taxpayers, that could mean selling a home, cashing out investments or receiving a large bonus. Planning ahead, by timing the sale, spreading income across years or offsetting gains with losses, can help keep the tax hit manageable.
Shrink Taxes With Smart Savings
On X, Cuban said he has used tools like tax-free bonds to reduce his taxable income. For everyday taxpayers, the equivalent is maximizing contributions to retirement accounts such as a 401(k), IRA or Health Savings Account. These contributions lower taxable income today or provide tax-free withdrawals later, offering both immediate relief and long-term benefits.
Turn Pride Into Purposeful Giving
Benzinga reported that Cuban said he’s “proud to pay” his taxes because they support the country’s services and infrastructure. Taxpayers can embody that same spirit through charitable giving, which not only lowers their tax bill but also channels support to meaningful causes.
If paying taxes is partly about contributing to the greater good, donations allow individuals to decide where some of that impact goes. Those who itemize can deduct gifts to qualified nonprofits and donating appreciated assets, such as stock, can help avoid capital gains taxes entirely.
By pairing Cuban’s civic-minded outlook with charitable strategies, taxpayers can reduce their liability and ensure their money makes a difference in ways that matter to them.
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This article originally appeared on GOBankingRates.com: You Won’t Believe Mark Cuban’s Tax Bill — Here Are 5 Tips To Keep Yours Much Lower
