December 18, 2020

Federal Inheritance Tax 2020

Federal Inheritance Tax 2020 in 2019 tax law continues to evolve butguess what we're gonna evolve right along with it to help you conquer yourtaxes in 2019! I've put together a free downloadable spreadsheet for you, packedwith more information than ever before not only do I think this spreadsheetwill help you plan your taxes better for 2019. And beyond but I think it also mayhelp you with financial planning as well I released the video on the 2018 taxupdates last year and. Had an overwhelmingly positive response thanksto all of you guys. So I wanted to make a follow-up video to that and I willcontinue to make a tax update video every single year as long as you guyswould like.

Me to with that being said I don't want to waste any. More time I wantto just dive right into the information but I do have a quick favor to ask ifyou guys enjoy the video please let me know by crushing that, like button orjust let me know down in the comment section below, what do you think of allthese new tax laws how is it impacting you is, it impacting you in a good waybad way or whichever I would love to hear your thoughts down below by doingthat it's gonna help this information reach more and more. People thank youvery much and let's get started. Now when I think of tax one of the things everysingle year I like to look at first because these numbers. Change everysingle year is the tax brackets themselves I'm always wondering what taxbracket am I in now or what is my highest tax rate so on screen what youguys are seeing is you're seeing the tax, brackets are the tax tables and you'regonna see I.

Have listed it now for if your file single married filing separatehead of household and married filing joint now you can, feel free to pause thevideo as we go through this worksheet I'm not gonna read all these numbers toyou off on screen however if you look over to. The left-hand column you'regonna see some percentages those percentages are tax, rates and they'renot just any tax rates they're marginal tax rates which means when you see thatpercentage let's take a. Look at the 22 percent for example what that means isif you fall into the 22 percent tax brackets based on. Your income and filingstatus that means 22 percent is the highest amount, of tax you'll pay on eachadditional dollar earned that's what marginal tax is it's thehighest of tax you and, I pay on each dollar weearn now in case you don't know this is different from your effective tax ratethat's very different it's very important to learn the differencebetween your marginal. Tax rate and your effective tax rate if you don't knowwhat that is, don't worry I've actually made a video on that I'm gonna post alink to the video down in the description section below so make sureto check it, out if you want to learn more about that, moving on down the linenow let's talk about investments and long-term capital gain rates in thespreadsheet this year what I've done is I've included the actual long-termcapital gain rates on the spreadsheet itself so you guys can see. What they arewhat's great about long-term capital gain rates is it's one of the mostadvantageous tax rates you. Can get Nixa taxes. Emp'd income there's really notmuch that's better as you can see here from the graph or from the from thespreadsheet is that if your income is low enough when you go to sell assetsnow typically we're talking about stock. Sales that's the, most common thingpeople sell on a regular basis but you can see if your income is low enoughwhen you go to sell your stocks first for example you'll pay 0% tax, on thatincome the important thing to remember about long term capital gains is thatyou have to hold the investment for longer than a. Year before you sell itthe next thing we're seeing is that in 2018 the standard deduction has gone upa, little bit and this is this is very typical it usually increases. Everysingle year so in 2018 if you were single for example your your standarddeduction was $12,000 but, in 2019 it has gone up to twelve thousand two hundredand remember your standard deduction what it, does is it it's a set amount ofthe deduction you get automatically when you go to file your taxes that's. Gonnareduce your taxable income by that amount so if you made a hundred grand in2019 you would subtract in your filed single you would subtract the standarddeduction from.

It of twelve thousand two hundred dollars and what is left over isyour, taxable income for the year I have a whole video that explains how thestandard deduction works and itemized deduction works that I'll link up, in thedescription section of the video personal exemptions this one I still geta lot of questions about even in. 2019 people are still very very on athey're that personal exemptions are no longer applicable so just keep that inmind now the the dependency rules of the, rules to claim a qualifying child are aqualifying relative those are still in place and you it's. Really important youknow those rules to help you claim things like credits so it's justeducation credits the child tax credits, the Earned Income Credit and so on andso forth so knowing all those rules.

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