December 18, 2020

2020 Tax Return Calculator

2020 Tax Return Calculator we not pay in taxes in 2020 at all legally though after watching this video you are going to learn how to reduce your taxable income so you can get the money back that you deserve income tax is. Unconstitutional anyway but my business stick around because I am going to, show you all the deductions that you need to know about so that you can get your taxable income produced and make sure you sit till the end so you, can figure, out how to not pay any federal income taxes at all period all that and more so keep it lockedthis crystal with the cash compass all right so welcome welcome back I am here to, teach you all. The things that you should have learned about money in school but I guess it teaches filing a tax lien be sure to subscribe because you talk about everything. From personal finance of the economy to investing and I get right into it so first things, first I am a CPA but I am NOT your CPA I'm just a girl sitting on a microfiber couch so please feel free to confirm. Anything I am saying on the Internet all right so your taxes are based off of your taxable income right so let's say if you made 50k. This year not all 50 of those. Caves are taxable and then this video you won't break that number down to get some more money back in your pocket so let's first talk about itemized deductions versus standard, deductions the standard deduction is what most Americans will take and they give it. To you because basically you know people will have the argument well yes I made $50,000 but like I had. Medical bills and I gave to charity and I did all of that so, to make it easy for the IRS and to make it easier for everybody really they just give you a flat twelve cakes just.

The government's way of telling you no off the numbers vary depending on what your filing status is but for single filers you, get twelve thousand two hundred dollars just off the taxable income so going back to that example if, you made fifty thousand dollars this year they're gonna take twelve thousand two hundred dollars off of that and that's your taxable income but, if you still feel like listen I spent even more than twelve thousand dollars this year then you can, look into itemize your deductions and there is a specific list and it's complicated it's not necessarily. Dollar for dollar but if you do feel you spent more than twelve thousand dollars on these items that I'm about to list then it might. Be worthwhile to itemize so the best way to get the biggest tax deduction, I mean like massive it's to make sure you hit that like button for the YouTube algorithm so for 2019 what you can deduct are, medical bills and again it's. Not a one to one relationship there are some rules to get into details um but you can deduct your medical expenses donations to charity state and local taxes and again there's a cap this year but it will apply. To the average Joe your property taxes your interest paying on your. Mortgage which is this is important if you have bought your house in the 2019 tax year maybe towards the, beginning of the year depending on how expensive your house was you might be able to choose the itemized deductions, route and actually get more than the twelve thousand dollars back there are, a couple of others those are the most important ones if you want to know the whole list then you can go to the link in my description for the IRS website alright so if. You are a w-2 worker which is basically you work for the man you will get something called, w-2 which I'm sure everybody knows about you've seen the means going around about, harassing the postman via w-2 forms the Bucks we're gonna focus on is box number two now this is your federal income tax.

That they've deducted from your wages and this in most cases is the most you can get back now there are certain situations, where you can get back even more than what's in that box but. You have to pretty much be a very low income earner your Social Security and your Medicaid, you ain't never getting that back okay that's not refundable I'm sorry and if you're in here 20-somethings like me we may never see Social Security but that's a.

Different video for another day I stopped you two already. You don't get the most tax advantages because you aren't really giving back to the economy right so business owners they're providing jobs they might have even greater doing.

Such a charity so they have more incentives than the average job is kind of collecting a check sorry if you want. To get the most money back you will have to have your own business or do some sort of, investing so let's talk about the business owners and stable people who are over drivers or things like that, you can still get some pretty good tax breaks also as a business owner please keep all, your receipts in life to keep the receipts honey because you will, want to deduct every single thing that $1 pencil you bought from the dollar store deductible everything you use for. Your business even things you might not think about like your phone bill you're in to net access those things are deductible, depreciations and other big things for uber drivers you can deduct appreciation there is a caveat with that and it's a little bit.

Easier for uber and lyft drivers to just take the IRS standard mileage deduction because. That is literally it's 58 cents per mile you drive that you can deduct from your income also as we read over you can deduct all the money uber it takes from you, and their fees so make sure you're doing that but for those who don't have, their own business for those who aren't / drivers what can you do if you're into your 401, K in your IRA try to match those as much as you can depend on.

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