November 22, 2020

IRS Refund Schedule 2020

IRS Refund Schedule 2020 internet how's it going it's so good to see all of your smiling faces my name is Mike the CPA thanks for joining me once again here. On money and life TV this channel is all about teaching people finances investing taxes. And more when I first started out as I think I got my first job when I was about 17 when I got my paycheck I didn't understand most of, what was on it I certainly didn't understand anything about. Taxes have you guys have ever had somebody tell you you got to see the bigger picture well I'm. In this video I'm gonna show you the bigger picture of how your paycheck affects your tax return and how that originates and where that all goes and how it works so that you can have a, better understanding of taxes in general and how your tax form. Works there's a special reason I'm showing you this stuff ladies and gentlemen so please stick around to the end of the video to find out what that reason. Is if you guys liked the video today please don't forget to drop a like and leave. A comment down below I love, hearing your thoughts to start off I want to ask you guys a question is what is the first form or one of the first. Forms you usually have to fill out when starting a new job anybody that need four is it that before right on chipper it is a w-4 when, you first start off as an employer when you first you know come on board with.

A company usually the w-4 is one of the first things, they have you fill out now I remember when I was 17 I didn't know what any of this stuff meant not a clue the first thing. You're gonna do is gonna fill out your name address information and social security number and all that but what you're really doing the greater purpose of, this is the information you put on the w-4 is ultimately going to impact how much tax federal income taxes they withhold from each and. Every one of your paychecks so based on. The number of allowances you put on this thing if you want to have. Additional money withheld from each check that's gonna impact your net check whenever you get paid whether it's every two weeks once a month or every week we start with. The w-4 we fill it out and that whatever. We filled out is going to impact our pay stub as we're about to see on screen here I've actually included so this is actually one of my pastes okay I've had for confidentiality reasons because I, got a lot of people I work with who. Watch these videos I had to make sure I crossed off any information that would reveal how much I make per pay period or whatever so that's why you're gonna. See a lot of stuff cross now however that stuff doesn't really. Matter because the main focus of this video is the federal withholdings part now there's a bunch. Of taxes listed on our pay stub and I'm just gonna focus on federal withholdings now federal withholdings if you don't know this it means income taxes, only income taxes that's what federal withholdings are all about Medicare tax is different your Social Security deductions, are different that that's a whole different kind of tax or a whole different deduction now what I need you guys to do is I, need you to put on your imagination cap your are. Your your special make-belief do you guys have one of those I hope you do so put it on make sure it's. Nice and snug and what I want you guys to imagine is that pretend this is my last paycheck for the year so pretend this is like my December 31st pay. Stub are the last pay period and I'm not gonna receive any. More checks or any more pay stubs the rest of the year what's common about pay stubs as you, guys will notice is there's usually a current column which is right here which records or reports the current activity. For that pay period and I here today call them the year-to-date column is the one that I'm most, concerned about especially when it comes to taxes so as you guys can see per pay period, so every two weeks in this case I have 198 buckaroos withheld from my paycheck and, ladies and gentlemen of course the best part about opening your paycheck every week is to see how much you've been robbed we see this year-to-date number now okay so on my pay, stub roughly thirty two hundred dollars right here has been. Withheld for federal income taxes right so now what how does that number eventually get to our tax turn well assuming this is, the last pace of the year this data this year to date number should now move over to another tax form you guys know what tax form that, is I guarantee you you get if you're working you'll get it every January or towards the end of, every January what form is that w-2 it is your w-2 on the, w-2 in box two what I should expect to see now is my total federal income taxes withheld for the year and what were they they were three thousand, two hundred and twenty three dollars and they should, show up right here now this w-2 form you'll usually receive this about mid-january towards the end of every January and this is the form now with, so now we started with a w-4 we've gotten our pace checks throughout the year and our pay stubs the final numbers.

From our pay stub should transfer to this thing called the w-2 which is our tax, form that tax for the w2 now should report our total. Federal income taxes withheld and obviously it's gonna report your total wages the amounts you put to your 401 K and so on and so forth but since we're. Only talking about federal income taxes now what's the next step now the next step is is we need to. Prepare a tax return so using our w-2 we can take this tax form and use it as to assist us. In preparing our actual tax return on page 2. Of the new 1040 what we should expect to see now is our total withholdings from the w-2 so this is page 2 of the 1040 the income tax return, on line 16 is where we're gonna report our total federal income taxes withheld as you can see it says right. Here federal income tax withheld from.

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