December 18, 2020

IRS Refund Schedule 2024

IRS Refund Schedule 2024 it is that time again for the free tax video update of the year I am so grateful and so thankful, to have you guys here today this is a third year I have done this where I come on camera and try to give you the most comprehensive. Free tax summary available on the Internet at least that’s my goal. Considering I’m a one-man show one-man show not a huge corporation let’s get into the 2020 tax updates for your personal your individual taxes that’s what this video is about because of the massive amounts. Of requests I have one ready to go for the tax updates for business owners as well I am working on filming that. And as soon as I have that ready I, will post it to the channel so make sure you subscribe so you don’t miss that when it launches each year the revised hack rockets incomes levels or change just a little bit, as you guys can see that these amounts, have gone up a little bit since 2019 so this is definitely new and has been updated and if you’re new to. Taxes and don’t know how any of this stuff works the rates on the left-hand side they’re often referred to as your marginal tax rate begins because this is. The.

Highest amount of tax you’ll pay on each dollar you earn and that is you know would would be whatever tax bracket, you fall within and of course not every dollar is taxed at that rate it’s like a ladder the first portion of your income is taxed at 10% the next portion, of your income is at 12 and. Then 22 24 etc you don’t pay a flat 24 percent for example on all of your income that’s not how it works now who. Loves investing I absolutely do you guys know that if you follow the videos on my channel talking about the long term individual capital gain rates as. You guys can see these numbers are relatively the same as what, they were but what I wanted to point out is that if your incomes low enough if you file single you can actually make $40,000 in long-term capital. Gains or qualified dividends and pay zero dollars in tax it’s quite, amazing if you’re married check it out you can actually make $80,000 your first $80,000 in dividend income if your income is, low enough in total you will pay zero in tax so some pretty cool tax advantages if you’re selling investments you’ve held for a long term which means for more than a, year in one day or if you’re receiving qualified dividends from companies like Coca Cola Pepsi things like that tax. At a much.

Much lower rate than your wages real quick before we go further into the spreadsheet if you guys want to, support the work I do on this channel you can do so simply by dropping a like or leave a comment, below or even consider sharing this video with others if you do those things what that does is. It basically boosts the YouTube algorithm and YouTube is more likely to share this information with other people thank you so much in advance and I really, appreciate you guys being here moving on down the line let’s talk about that standard deduction and, standard deduction if you don’t know what that is it’s basically a free tax deduction everybody gets to take every single year to help offset your income free free free free free free.

Free free free. So in 2019 that was twelve thousand dollars if your final single or married fine separates head of household was eighteen thousand and married filing jointly was twenty four. Thousand but in 2020 these amounts are slightly higher which is good which means we pay less tax right so twelve. Thousand four hundred if you file single or married filing separate and up to twenty almost twenty five thousand. Or close to twenty five thousand if you do married filing joint for those of you out there who are new, to taxes and just learning how this works the standard deduction is awesome because it helps offset your total income and it’s simply the, way that works is if you let’s just say you have a hundred thousand dollars in.

Income is what you’ve made from your job and you file single well and for 2020 we just looked at the, standard deduction is twelve thousand four hundred dollars so your standard deduction subtract takes away from that, income and now you are taxed not on a hundred thousand dollars about eighty seven thousand six hundred dollars and that’s that works I. Like the sound of that moving down the line real quick to medical expenses now this is pretty cool. So we didn’t think that the 10% eight of AGI threshold was going to stay in place but.

It has so for your medical expenses if your total medical expenses for the year, exceed ten percent of your adjusted gross income at that point they become deductible and you actually get a tax benefit from that and that’s at any age you no, longer have to be you know like a senior or you know over the age of sixty-five in order to, receive that treatment now people of any age as long as your medical expenses are 10% of your, AGI greater you those are now deductible expenses and I’ve put a little note here just to clarify is that expenses must exceed 10% of AGI. Before they, become deductible so in other words when you’re virtually on your deathbed that is when the IRS says okay we’ll give. Them a tax deduction some of the numbers are still in the process of being updated by the IRS but in terms of your medical mileage deduction rate it’s about 20 cents per mile is, what to expect in 2018 and I’m sure in 2019 we’re seeing more people than ever, before able to claim the child tax credit which is huge it’s this is a wonderful credit it’s up to $2,000 per, qualifying child and it’.

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