Between the mortgages on the home and the rental, repairs to the rental, the kids, and my husband's 59K, + 13K rental, we have 0 federal liability.
We have 1900 in state, plus 5K in property taxes. BUT we bought a hybrid car last year, so 1500 of the state went away.
Also, the year before that, we did a solar water heater... again about 2K in state, 1500 went away.
This year, we are purchasing a battery and electric motor for my husband's MR2, and that should reduce our tax liability in the state by 1500 again.
Are we really saving money by doing this??? I don't think so, but we are saving energy.
I have no problem paying state/local/property taxes.. usually they are used for the better good of society...not 400.00 toilet seats.