The rising interest rate can surely control inflation, but won't prevent erosion of the eroding purchasing power of the US dollar. I have learnt my lesson this time. The banks can't be making money off my money, while inflation eats into it. I have set aside 650k to invest in the stock market now, since that keeps up with inflation, but I don't know how to get started.
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
Keeping money in the bank is like paying banks and the Govemment. Here's how it works: The bank gives out your money as loan, and charge interest obviously higher than inflation rate, and then give you, the depositor, interest lower than inflation rate. That means net loss for you. That is why I prefer to invest, and on average, my advisor makes returns that always beats inflation!
To be honest, I've been wary of banks for a while, but I wasn't sure how to speak with an advisor first. Please let me know who your adviser is if it's okay; I need some recommendations.
Vivian Jean Wilhelm a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
That it’s even crazier to think your dollars are becoming less valuable overnight because they print it for every reason under the sun and Steal from the public stock market
@@escopetadoce other countries have something to see for it. We just get to see our government scramble to spend the remainder of their budget on useless stuff at the end of the year or face a budget cut.
Its ridiculous to pay taxes on money you earn then pay taxes for everything you purchase. Then the people who sold you goods get taxed for money earned then get taxed for things they purchase. It never ends!!
And then anything you save is taxed if try to give it to your kids when you pass, and everything you buy that's "too expensive" is taxed every year (houses, cars, etc.)-- the government has gone well beyond their "enumerated powers".
No Joke I bought some sports tix this summer for about 600. got sick this fall could not go to games was going to sell the tix at a loss and ticketmaster was going to report me for taxes decided to just not do anything with them. I bought them and they wanted to tax me on selling them less than I paid for them with my money.... insane world we live in. dont get me wrong had I tried to sell them for a major profit I understand but at a loss just wild.....
With Market tumbling, Inflation Soaring, Is the stock market actually getting better or could this be the regular new year market manipulation to entice new investors? I'm currently sitting on $500k inheritance and just wondering what better assets than stocks to invest in right now
You need a certified financial planner straight up! personally, I would invest in etf and also love investing in individual stocks. yes it’s riskier but am comfortable in my financial environment
No doubt, having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit 100% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take till Q3 2024.
I appreciate the implementation of ideas and strategies that result to unmeasurable progress, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
She goes by ‘’Vivian Jean Wilhelm’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did
Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place.
Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.
I agree. I have pulled in more than $435k since 2020 through my advisor. It pays off more in the long run to just pick quality stocks and ride with those stocks.
I'd like to give significant credit to *Camille Alicia Garcia* who maintains a strong online presence. You can easily find her through a web search. While there are some other individuals worth considering, it may be more challenging to locate them. In addition, Julia has provided excellent guidance throughout the year.
It's crazy that people making under $11k are taxed at all. To the government, 10% of $11k is chump change, but for that individual, it's a boatload of money.
@prettysubliminals2555 What???? If your income is reduced to below zero ($11,000 - $13,000 = -$2,000), your income is considered ZERO. They can tax you at 100% at that point. 100% of zero is still Z-E-R-O.
@Pretty Subliminals I’m sorry that you don’t understand. Or even want to understand. It’s typical.. but this person pays ZERO in fed taxes. Crazy, right?? Ha!
Poor people qualify for social programs such as cheap or free healthcare, food stamps, section 8 etc. So they end up getting more than what they pay "in".
That's because the bracket percentages grow logarithmically, and the rich get huge tax cuts not accessible to the poor. Not to even mention the money the rich *receive* from the government.
Because the working class does not generate enough taxes to pay the debt. The rich folks, and corporations, which could and should help pay, who can afford it, arent.
Because politicians on both side just spend money without accountability. We just sent billions for Ukraine and we are not part of the war, not part of the UN. All funded into ftx and back into the democrats party.
We pay way to many taxes and to much. The reason I say this is cause our taxes are highly miss used and mismanaged by our government. Thank for explaining the tax brackets with good detail
Its a corporation, not government. A bankrupt one at that. Well the UNITED STATES, INC. declared bankruptsy in 2013. Not sure what’s going on with the I*S tax Corporation, employees keep paying in so I guess the bankrupt US is still operating. Not the best retirement solution, contributions too high.
However now they are also trying to pass a bill to tax all small transactions at 600 dollars or above. Meaning all gig work, side money from Ebay, Etsy, etc would be taxed even if it was just a small amount.
🔥Something completely missed and would have taken just 15 seconds to explain: taxable income is progressive throughout the brackets. If you move into the next tax bracket, you don’t pay that rate on all of your income. You pay taxes at each of the tax bracket rates.
You also need to factor in the current 21% corporate tax rate since businesses don't pay taxes they just pass their tax onto consumers. This tax is paid by all taxpayers in all brackets that purchase from corporations.
@@charlesbyrneShowComments4all BS. That is a myth. They price gouge when they think they can get away with it. Corporate tax rates have been cut. By a lot. Yet look at prices now. You are having the tax burden shifted onto you because the corporations aren't paying what they used to. This is just like the Reagan trickle down economics BS. Stop being hoodwinked
@@charlesbyrneShowComments4all 100% agree. When you start thinking of taxes we pay that are embedded into products including gas which is about 30-40%, it’s a lot of taxes. Then add in sales tax, property tax, and flat taxes (permits and documents like DMV fees, fishing license, construction, etc. Our net effective tax is really high when you think of it.
Inflation hits people a lot harder than a crashing stock or housing market as it directly affects people's cost of living that people immediately feel the impact of. It's not surprising negative market sentiment is so high now. We really need help to survive in this Economy.
The amount of Taxes we get charged in Califonia are insane! Regardless though, you get docked on each paycheck for taxes, you go to the grocery store and get charged taxes, you pump gas you pay taxes, at the end of the year when you report your income, if you made more than what your bracket threshold is, you have to pay taxes. Lol 'Merica
Actually if you look at them year over year. Last year if you made over 400k you had to pay 40% now that is down to 35% and the max it caps at is 37% for over half a mil. But yet the 10,500 to 40k mark has increase by 2% from 20 to 22%. So the government is screwing the middle class while helping the upper with a tax brake.
Maybe I'm mistaken, but I thought, if one makes $50,000 a year for example, the first $11,000 is taxed at 10%, the amount between $11,000 and $44,725 is taxed at 12%, and the amount above $44,726 is taxed at 22%.. In other words, each tax payer does not fall into only one tax bracket but in multiple brackets (unless one makes less than $11,000). Am I mistaken?
You're correct. You're taxed that percent for that bracket, and then moved up and taxed on the remaining. So if you're $1 in the 24%, that bracket you'll only pay 24¢, not 24% on every dollar.
If that is your gross income, first deduct the standard deduction to get your AGI (adjusted gross income). Then apply the tax brackets to the AGI and yes, you are correct rates are tiered to income ranges.
It’s absolutely evil than anyone making 15,000. Or less, are taxed at all. When you can’t or barely can afford a roof over your head. They’ve always punished the poor, elderly, and disabled.
@@littlet7556 I hate to say, most people are not middle class that is "paying for everything". The people that pay for everything are the high W2 earners, think about our lawyers, doctors, and such. They all tend to reach the 28-35% brackets. A doctor making say $350K a year is paying tens of thousands just in Federal tax alone. They pay for everything, they don't actually use the city's police or roads more than you do. Not shaming you but trying to put things into perspective. The ones who got away with paying their fair share the ultra wealthy because they don't earn W2 and therefore get away from the high taxes.
Excellent video young man. I’m 64 and I’ve never heard anyone explain taxes as well as you did. Thanks for the video. Keep up the great work. You just got a new subscriber
You pay as you go, meaning your first $11,000 is taxed at 10%, 12% at $11,000-$44,750, and so on and so forth. Your effective tax is a combination of entering each bracket, you don't lose much being at the bottom of a tax bracket. You don't lose money for making more money.... unless you no longer qualify for things aid and whatnot. Also, your taxable income gets deducted by the standard deduction or stuffing money into a tax-deferred account such as 401k or HSA plan, are above the line deduction so you can use that to manipulate your income so that you get to keep the tax breaks you would not qualify for. Look up EITC and Saver's Credit, it's a bit more useful for joint filing but it might be relevant.
This is what people don’t realize and what the video didn’t hit on. I know people that consider working less hours because they think going up a bracket will make it not worth making more income.
@@joesportsfan6326 and you got tools to not be paying 22% like a 401k or a HSA. I was talking to my lead about this, he said working overtime just gets eaten by taxes, and I said the least you could've done is get your full 401k matched, basically leaving 1.5% on the table and you could be getting 3% more headroom before paying 22%. It's also a good idea to buy a 30-year mortgage because interest and property taxes can both be itemized and if your state got income tax that can also be itemized. It's the most common way to surpass the standard deduction and a way to get ahead in life. But your standard deduction might be hard to pass if you're filing jointly so you or your tax preparer should do the math on whether you can benefit by filing separately (like if you both work with similar income). What some people don't understand about houses is that 2.5% of the interest the bank gives you gets eaten by inflation and then you can write off a large portion of the total interest therefore houses are a lot more affordable than they appear especially if you start hitting the 22% mark.
@@braetonwilson4296 Yes, it's sort of a handwave to say "This is to offset my expense for necessity, no I got no proof". It also has the effect of raising your tax bracket by $13,850, so you pay 22% only after $44,750 + $13,850 + "Above the line deduction" such as 401k or healthcare premiums. It use to be half of that until TCJA came along in effect giving each working individual $1300-1400 (double if joint) but that is set to expire in 2025. The most common way people get a higher deduction than the standard one with itemization was through buying a house, the interest payment + property tax along with income or sales tax would have easily put you well beyond the old 7000 limits and can still do so. And just to clarify just interest and property tax could be written off so further along the mortgage it would taper off, but that would be offset by your mortgage being "real value" being cheaper over time due to it costing the same but you can imagine 15 years in of inflation does to your true cost. The higher standard deduction made itemizing less impactful.
Rich people don't have money, they own everything. They drive a company owned car, live in a company owned house, eat at company functions, fly in a company owned jet. And because they are company owned, there use can be claimed as a business tax write off. There is a reason Elon Musk doesn't own a home or car.
Good video but a bit misleading. Tax brackets are not this simple. In fact, income wage tax is progressive. Meaning, for example, if you make 100k and that amount falls within the 24% tax bracket, only a portion of that 100k would be subject to the higher tax rate. If the 24% tax bracket is for income of 80-100k then only the last 20k of the 100k that you made during the year would be subject to the 24% tax.
Oh wow I was wondering. Because for some brackets-that $1 difference would cost you thousands. You’d be better off asking your employer for a lower wage if that were the case.
This really hits the middle class, hard. If the government used complete data I.E. including food and fuel in their inflation numbers, the results would be higher and more realistic.
Well done mate - I drive for Rideshare and taxes are always scary. You are by far the best channel I found to break things down to a comprehensible way. Thank you, you clearly know your audience. My regular career is engineering and the Tax code in this country is even complex for me lol. Earned a sub and a like. 🙂
Here's my idea of a fare tax plan and in the long run it ends up bringing in 55.5 % in taxes spread out on an equal playing field. Give this a look, Here is a plan that would be the most fair to all tax payers. Taxes would start at 50K and go up from there. People making less then 49.999 would pay nothing. The breakdown is 50K-99.999K pays .5% 100K-199K pays 1% 200K-299K =2% 300K-399K =3% 400K-499K = 4% 500K-599K =5% 600K-699K =6% 700K-799K =7% 800K-899K=8% 900K-999K =9% 1.000.000 and above pay 10%.
Almost positive others have probably mentioned this, but it's important to note that your entire income isn't taxed at one rate. So the person in the 90K example will have portions of their income taxed at 10%, 12%, 22%, and 24%. With the changing bracket thresholds, the 90K (AGI) earner is only seeing a tax relief on the few thousand dollars that use to be in the 24% bracket as opposed to believing that they are receiving a 2% tax relief on their entire 90K as they drop in to the 22% bracket.
That's not quite true. There is more money being taxed at each bracket. So a little more will be taxes at 10% instead of 12, and a little more at 12% instead of 22, etc.
My friend, same age as me decided that he wanted to retire to enjoy life. We have equal use of a everything provided by the government - we use the same roads, have the same military protection etc.. but my tax rate is dramatically higher, so in comparison, I am being penalized for continuing to work. Another friend is essentially lazy, has never had a good work ethic and makes much less than me and also pays less for taxes - so again I am penalized with a higher tax rate due to my higher earnings which have resulted from years of hard work. We should all have the exact same tax obligation regardless of earnings
Thats where its bad having a flat tax %. If every1 had a 10% tax rate the rich will go beyond rich and the poor will still be poor. If we get a high flat tax, middle class and low income class would still be complaining its to high and vice versa. Just me but i think its better if the jump in % gap is from those who make 150+ is at 22% or more id be happier. Jumping from 10-12% to 22% thats a 10% instant increase for the middle class. While the rich is only 3-5% gap between that higher earning bracket, its bullshit, irs /uncle sam stealing from the lower class yet show nothing for it.
@@pokeversexiong6737 ...Just me, but the Federal government shifting percentages to make things more "fair" is a vail for extortion and soft slavery.... You're essentially supporting the continuation of feudalism while the Oligarch steals your labor and redistributes it among themselves while they laugh at your arguments about how much they ought to steal from us "free" citizens.
You say that you are still earning money (which clearly makes you better than your ‘friends’) and you still have to pay taxes on all that money you are ‘earning’? Boo hoo…. If your taxes are ‘dramatically’ higher, you are not doing the same work as your pals. How butt hurt could one person be?….
My daughter recently saw me doing some calculations on my paychecks and asked why we have to pay taxes on money that we earned. She said "The government already has enough money, they don't need anymore" LoL Oh the innocence of "babes"
@@gw5479 Absolutely! I told her she was absolutely correct! I am so blessed that she is so intelligent at such a young age and I so look forward to seeing how she will change the world one day, because I know she will!
I just got a raise and it means absolutely nothing... How many jobs do I need and how many hours a week do I need to work so I can just stay a float?? This is such bs......
It's more like you earn more so you pay more. They honestly don't care how much you work, just how much you earn. That said, you are not getting taxed "more" if you are still within the same bracket. It is still the same percentage. However, it is possible that HR might withhold more of your taxes for overtime. They might not be able to predict ahead which tax bracket you will fall into and proactive withhold more taxes on your behalf. This way at least you won't under pay in taxes and accumulate any penalties. If you end up paying extra, you will get them back after you file your taxes as tax return.
Overtime isnt taxed at a higher rate, more taxes are just withheld. This is due to the amount of taxes being withdraw is an estimate based on how much you make in that period
The reason you get taxed more when you work overtime is that you are taxed per pay period as if that’s how much you make every pay period through out the year. So if you only work overtime occasionally when you file your taxes it will all average out and you will get the excess taxes you paid back.
My taxable income increased 1200 from last year. Since I have already prepared my 22 taxes I now know my refund is 760.00 less than last year due to inflated tax rates.
That's why I stopped and became a homeless vagrant that gets to read my psychology books and sleep with escorts well I eat what ever the store sells as I walk with 3 empty bags and leave with them full and free. If you want to understand that once educated individual stop caring and eating like a king you could too only if you are smart enough to pre plan to get away with it. But that takes book smarts and I'm here to hand them over free of charge! Norman Angell The Great Illusion Robert Greene 48 laws of power Dr. Eric Berne The Games People Play. Beyond Games and Scripts. Sex in Human Loving. Grow up or starve with your morales. I could care about as much as the next Human who's life you don't affect.
I’m working longer and harder these days. Neighborhood, health care, roads and infrastructure not looking good. Grocery stores closing, climates changing and taxes all over garnished by the government for whatever reasons. This is insane.
You don’t just fall into 1 tax bracket, you could be in all 7 depending on how much you make. And you example if you push 5k into the next bracket only that 5k is taxed at the rate not the entire amount. So everyone pays 10% on the first 11k and the from 11-44k of your earnings everyone pays 12% and so on… You don’t pay 12% on say 15k but only on 4k of that. People confuse this point all the time with like a sales tax rate that is the same no matter the amount.
What people typically describe as a tax bracket is a 'flat tax' which is not the case. The government doesn't know how much money you'll make in a given year. Everyone is taxed 10% the first $11,000 they make, even Bill Gates. He obviously makes it much faster than we all do.
Your numbers must be based on Adjusted Gross Income, as no one is paying anything on the first $11,000 of income based on the standard deduction. This would be clearer if stated as tax brackets for AGI’s. Thanks for the information.
@@braetonwilson4296 Everyone qualifies, it is automatic in any tax software or in the tax forms. You either take the standard deduction or you can itemize allowed deductions and use that amount if it exceeds the standard amount. So the standard deduction is the lowest amount deducted to arrive at adjusted gross income--the AGI is the taxable income. Standard deductions for 2022//2023 tax years are: Single (or married filing separately). $12,950 // $13,850 Head of Household. $19,400// $20,800 Married filing jointly. $25,900// $27,700 Age65*+ Single. $13,850// $15,700 Age65*+ Married. $25,900// $30,700 *or Blind of any age. Assuming the standard deduction, for 2022 taxes (filed in 2023) you pay no Federal taxes if single on the first $12,950 of income, or $25,900 if married. The tax brackets kick in above these amounts. Example: single- you earn $20,000: deduct $12,950 = $7,050 AGI taxable income, in the 10% bracket your Federal tax is $705. Most states follow the Federal calculation. You can easily estimate your likely taxes every year to figure out if you are over or under on your payroll withholding and adjust it with your employer. There are many tax calculator software programs you can buy very cheaply for uncomplicated returns (kiplinger, turbo-tax, etc). Pick one and use the same program every year. Things are more complicated if you have children or other dependents as there are tax credits for them. Above is for salaried workers; if you own a business I would hire an accountant or bookkeeper. You may have other sources of income (pensions,investments, side gigs) and these are also taxable if your total income exceeds the standard deduction, At 65 plus, special rules apply to social security and as a rule if you have zero non-social security income, none of the social security amount is taxable. If you have a pension or investment or job income, there is a calculation to determine if part of your social security income is taxable. Typically, if the non-social security income is below the Standard deduction, very little of social security will be taxable. This varies a lot and I always use online calculator at Smart Assets to estimate if any of social security is taxable. Good luck to all!
Start donating as much as possible!!!! I’m so sick of our money being taken to pay for &400 loo seats! Those deductions are bloody insane every year. Makes it harder of itemised deductions unless you’ve been hit by a huge lorry and your hospital bill is insane. The percentages are still far too high. The IRS is not helping anyone but themselves.
I always find it frustrating to pay taxes to the government who really isn’t serving me as their employer normally you’d get fired for this it just doesn’t seem like I’m getting out what I’m putting into the system that I see is fair and worthwhile…
You never will they expect us to die from overworking. Not to mention what is the real reason wall street and government are frauds. I can't save money for how much taxes I have to payout. I hate this system of control
So you pave your own road and build your kids' schools and you build your own hospitals and hire your own police force and firemen and maintain your own children's playgrounds, etc., etc?
@@shirleysear7168 paving roads: place a bid out to private and gov. Construction paving companies And see who is willing to pave and do a 4 year maintenance contract on the section/area or road with roadside signs stating who is the company doing it…. Schools: someone else’s kid, why do I need to pay for their kid. They need to pay for their schooling, then maybe they would pay more attention to what money is being spent where and to whom. The government waisted so much money trying to find something on the ex president for years, never found anything.. waisted on sending money to other countries while our citizens doesn’t get services…. I’d gladly pay for better police and better training, along with fire departments. Also like to see both sides of stories when being reported rather then the rush to be first over facts…. Happy new year best wishes..
@@Dpixtion That is literally how government operates... to get bids on construction projects. I'm frankly tired of wasteful spending but also tired of uneducated (not school wise, but uneducated about the actual topic) complaining without actually looking at facts. You say crap like "better police and better training" but what does that even mean? Most people just complain without doing more research or participate more. The complaint about kids is non sense. If you live in a more rural area then why should I pay for your street paving? Without kids who is going to pay for your social security? Or do you not know that SS is funded by next generation?
Karl. But it isn’t the whole 100K being taxed @ 24% it is only the amount made after entering the bracket. I think that is also important to highlight. Or has that changed as well?
That’s what I was wondering, because that would actually be worse. Glad I signed up to prepare taxes this year, so I’m looking forward to learning if that changed.
I feel constantly abused by the government taxing me lol. Jeez man I owe 3k from last year and I was without a job for 4months and barely made 49k which were on a w2 and this year alone I’ve paid 15k from my salary and I barely made it to the 50s like wtf. I can’t even pay me rent next month…
Try Dave Ramseys advice it's biblical and backed up by his finance degrees and 30 year experience. It's been helping me out..I owe $1700 from last year currently on payment plan.
theres gotta be something wrong with your witholding then, that shouldnt happen. If you only got 1 income source and its on a w-2 then if you filed on time I dont get how this happens.
Our taxes have always been out the roof. We have no deductions or not enough so we use the standard. We both have good jobs with no children filing jointly, we are maxed out on 401k contributions and still have to pay even more at the end of the year. Frustrating.
I am retired and have to pay taxes on the social security I collect. The funny thing is I paid taxes on it already during my earnings years. THANKS REAGAN
Yes Reagan signed it into law, but BOTH houses were Democrat majority with Speaker of the House Tip O'Neal, a Democrat so that was a not a purely Reagan action. The in '92 you can thank senator Joe Biden who voted to increase the taxable rate of social security and Democrat vice president Gore who was the tie breaking vote during Clinton era.
Yeah genius why didn't all his successors change it? Why not blame them? Or just do the right thing & blame the current president for this chaotic economy in which only corporates can bode well.
@@paul9874 8 genius. You missed Clinton & Obama were presidents too. And why should Bush change a rule that's put forth by his party. Dems scaremonger about social security, force them to do it. But since they're frauds & you're fools nothing won't happen pal.
@@paul9874 Obama did nothing either AND he had BOTH houses his first term. Clinton had the senate and the house his first term. Both Clinton and Obama had the opportunity to change the law but they didn't.
It's really stupid how the tax brackets work. It needs to be a smoother curve. Net: 44725 would make you 3279 take home per month Net: 44726 would make you 2907 take home per month If you make that 1 dollar difference, you're taking home 372 less than someone who makes 1 dollar less than you per year. You'll go from $756 per week to $632 per week. That's insane.
Karlton, great information and well presented. Late in my career I left a longtime employer and started an IT consulting company. It was then I realized the tax breaks a small business can legally use to offset earnings. I liked your advice about using real estate to offset W2 earnings.
Thank you for this video, you broke it down really well, and I hate taxes and find the information very confusing. This was very easy to understand and follow!
Karlton, Please help people to understand that you are taxed at the lower tax brackets first and as you fill up that "tax bracket/bucket" you then are taxed at the next higher tax bracket. Many people don't understand this. The example you give at 10:00 should state "some of your money will be taxed at the higher level. Thanks
What I don't like about this video is that it perpetuates this rampant myth that if you cross into the next tax bracket ALL of your income gets taxed by that next tax bracket's percent. I know Karlton knows how it actually works, but he never clears that up in the video, which leads to people thinking that if they 'cross the line' their return will be smaller than if they stayed under. To be clear, if you cross from the 12% bracket to the 22% bracket, your income DOES NOT get taxed 22% in its entirety. ONLY the chunk of money above $44,725 gets taxed 22%. The chunk of money between $11,000 and $44,725 gets taxed at 12%. And the chunk of money $11,000 and under gets taxed at 10%. Again, 'crossing the line' WILL NOT result in a lower return, all other things being the same.
I just got a raise this year. I want to give it back now because after barely going to another tax bracket my take home pay will be less that what I made before the raise.
as a middle income worker, I sent them over 20k last year. It's hard to stomach watching those who refuse to work or work part time, pay zero in taxes and even get large returns because of EIC and other bogus programs.
Most of them on welfare, or are in high risk investments. We did a 1031 exchanges some years back where we paid no taxes for the years we were in the investments. In the end, the fed and st come-back for any profits and depreciation used in the form of taxes. Slackers get the free stuff, but I would never want to be any of them. I have never voted Democrat for good reasons as well as keeping a good conscience.
So let's say everyone gets away with not paying any taxes, where is the money going to come from to pay for social security checks, food stamps, SSI, VA Hospital, VA Benefits, maintenance of highways, military, those who work in the various government offices at the Federal level and in DC in addition to the FBI, CIA, DHS, etc?
@@dianad3080 Lol that would never happen. But if you and I and his followers don't pay taxes. That money we all saved would benefit us and our families, way more then the government using it. You having an extra 50k each year, or you giving government 50k to send to a different country, or pay some politicians wallet. lol if they used tax money wisely, there should be not a single pot hole in any road in america….
Please tell me if I'm wrong but from my understanding. If you make say $60,000 yr you are taxes For your 1st 11,000 at 10% then taxed from the 11,000 to 44,726 is taxed at the 12% then from the 44,726 - 95,375 would be taxed at 22% So if you made 60,000 you would only pay the 22% tax only from the 44,726 - 60,000 would only be around 16,000 would be taxed at the 22%
you are right, people keep voting people back in again and again because orange man bad and not what helps themselves, how dumb, a person should vote what makes their life better and not the governmwent
@@butchs2337 me had way more money in me pocket under orange man. Me want orange man back. Me not sensitive. Me not on twitter to see orange man mean tweets.
@@LAAM619 yes the same here, people need to look at the persons re cord and vote that way not on looks and what they say they will do because they all lie to get into office and then do what they want and not what the people who voted them in want, these government people forget they are working for us the US Tax payer, go into government poor and come out million needs rto stop, term limits are a must
@isaacssanderson9926 Yeah!! It would be more beneficial and yield more profit if you actually trade on cryptocurrency, I've been trading since the dip, I've made so much profit trading.
We need to change the way this is explained. Everyone also has to pay FICA taxes (Medicare, Medicaid, Social Security) that adds 7.65% if you’re employed or doubled if you are self employed. That’s a significant impact especially when you factor in all the other taxes (sales tax, gas tax, real estate tax, school tax, etc., etc.)
You said "making" which incorrect. These tax brackets apply to your taxable income and not to the amounts you make. What you make is your salary, W2 amounts plus portfolio income etc. After taking your deductions and credits you will arrive at your taxable income.
Current Inflation is being driven up mostly by fuel prices, If we switch to Nuclear power and give greater incentives to buy electric cars (including subsidising and prioritising lithium battery production) this problem will subside substantially over time. Also, many countries are going for the practical short term measures of taxing fossil fuel company profits to discourage extortionate profiteering! Overall though, Society’s rejection of Nuclear power was a massive mistake, and the environment has payed dearly for it as we continue to rely on fossil fuels for our electricity..
The tax brackets are the same the annual salary amounts have increased. example: (2020) Married 10% tax $0 -19,750 VS (2023) 10% tax $0-22,000. Tax brackets are same, annual salary limits are higher. That's a good thing.
Left out of the income tax brackets is the fact that one automatically paying 7.35% and one‘s employer is paying 7.35% of income into SS and Medicare. Someone more knowledgeable than me knows what the cutoff is, I’ve never reached that threshold so it has never been important to me.
In the USA we only mention Federal taxes, but in Europe, they group all taxes including SSN and medicare and healthcare etc. and say it's too high it's 40%. If you take 32% Federal in USA + 7% state + 8% SSN + 2% medicare + Healthcare, etc. then it's way more than in Europe
In Australia the first $18200 is tax free then 19 cents in the dollar until 45k . 45k to 120k is 32.5 cents. This is before tax offsets such as low income , family etc. there is no State or Local income tax. There is a 2.5 % Medicare levy applied after $18200 which helps pay for universal healthcare and the national disability insurance scheme ( A new scheme that provides support if you become disabled or born with a disability) ( you also get around a 30% rebate on private health insurance coverage, so full hospital etc looking at around $1500 a year in premiums)
I live in Ct I already paid tax on my SS while working and now when I file I still have to pay. My husband still works so we file together and once my SS gets entered, that's it its all over!
Price increases are not inflation....money creation by the federal reserve is inflation (inflating the money supply)...which then in turn leads to price increases due to higher amounts of money chasing the same amount of goods in the economy. Money creation, which is what funds a huge amount of what the government does, is a hidden tax on the American people. So not only are you paying your taxes...you're then also paying more for everything you buy due to price increases brought on by the government. So basically...they get a ton of money directly from you...and then they get whatever else they want by instructing the federal reserve to create money out of thin air which raises prices for everything you buy. In reality...you're being taxed WAY higher than whatever percentage they tell you you're being taxed at. Add all of the state, city, and county level taxes you're paying...and then any sales tax on top of that...essentially at least half of all the money you make is being stolen from you in one form or another. The US government is the largest criminal enterprise in the history of the world....and unfortunately...most people are too uninformed to even realize that it's happening to them.
Taxes are so confusing and overwhelming for me and I don’t feel like I can afford an accountant but I haven’t really looked into it. I appreciate your videos
I hate that I'm taxed more than the rich. There should be a minimum tax rate for the ultra rich with no way to get around it. No loop holes. No creative accounting. Having these people pay no taxes is absolutely ridiculous.
The comments are much more interesting than the video. It is amazing how many people have absolutely no clue at all about the tax system and what they actually pay in taxes. Especially those that don't pay at all, receiving "refunds" over and above any taxes that may have paid in over the year. Those are the people screaming the loudest for others to "pay their fair share".
I think there is a good video that explains how the brackets work. If you make $120,000 after your deduction that doesn't mean you pay 22% of that. You pay the tax of each bracket until you get to the next one. The first $11K would be taxed at 10%, equaling $1,100. The next bracket $11K to $44,725 ($33,725) at 12%, equaling $4,047. So now the first $44,725 would run a $5,147 tax bill. Repeat at each level. This is why it isn't as bad as it appears at first sight on the %. (Taxes still suck though)
I feel like so many people are talking about how "the government" is taxing you with both income tax and sales tax, when there's more than one "government" (state and federal) and each taxes you separately, with sales taxes only going to the state. Also fascinated by how many people apparently don't want roads, fire, police, clean water, food safety, a military, consumer protections, etc.
The best deal I've ever made, tax-wise, was to set up a contractor side business: my home, security, phone, internet, health insurance, gas, car, real estate taxes, and on and on, are ALL deductable. In addition, a huge portion of my income is tax-sheltered. The tax code GREATLY benefits those receiving 1099 income (yes, that's for contractors AND people running their own small businesses. Even if you make $10,000-whatever you are helped. As I get older I'll be scaling back, but I don't think I ever want to quit working a few days a month, even two days a month---that 1099 income gets the full deduction for most of my expenses. I only work about 6-7 days a month at this time, but can see scaling back to 2-3 days a month in the future.
Not sure if it was explained clearly here. Making sure everyone understands only the amount over each limit is charged at the next tax rate. In other words if you make $10,000 more than whatever limit only the $10,000 over the limit is charged at the next rate and so on Down the Line. It's not like Crossing that threshold and then all of your money is taxed at the new rate. There was a time when I didn't fully understand this.
Keep in mind if you make say $100,000 most of your income is NOT in 24 percent bracket. The First 11,000 is in the 10 percent, the next 31,500 is taxed at 12 percent, the next 47,300 is at 22 percent. Only 10,925 will be taxed at 24 percent. Obviously, this doesn't include the standard deduction. I don't want to complicate things.
CITIZEN TAX would be great! One citizen - one vote. One citizen - pay one citizen's portion of the federal budget. Simple, fair and EQUAL. How fast do you think the federal budget would shrink if each citizen found themself responsible for their fair portion of that budget? How many citizens would revolt at the idea of U.S. government sending money for gender-studies research to Brazil or getting involved in ever more wars if they actually had to foot their portion of the budget each year? I'm one citizen who only gets one vote, I get the same infrastructure, protections, and judiciary as every other citizen. I DON'T receive many of the government handouts that others receive, yet I pay a lot more than most other citizens in taxes. That makes me a lesser citizen than most every other citizen - I'm certainly not treated equally under the law.
This was very helpful. Those who fall into the lower income range of the 22% bracket are going to get creamed. Just $1 over could cost several thousand in additional taxes. This is really wrong. Especially in a year when so many are struggling.
That’s not how it works. If you make $1 over the cutoff, then that extra dollar would be taxed at 22% - not all of the income below the threshold. Hence, you would pay 22 cents more - not several thousand.
![How to Use Rental Losses to OFFSET W2 Taxes! [Part 1]](http://i.ytimg.com/vi/1a38vrvO-ko/mqdefault.jpg)
![How to Use Rental Losses to OFFSET W2 Taxes! [Part 1]](/img/tr.png)
The rising interest rate can surely control inflation, but won't prevent erosion of the eroding purchasing power of the US dollar. I have learnt my lesson this time. The banks can't be making money off my money, while inflation eats into it. I have set aside 650k to invest in the stock market now, since that keeps up with inflation, but I don't know how to get started.
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
Keeping money in the bank is like paying banks and the Govemment. Here's how it works: The bank gives out your money as loan, and charge interest obviously higher than inflation rate, and then give you, the depositor, interest lower than inflation rate. That means net loss for you. That is why I prefer to invest, and on average, my advisor makes returns that always beats inflation!
To be honest, I've been wary of banks for a while, but I wasn't sure how to speak with an advisor first. Please let me know who your adviser is if it's okay; I need some recommendations.
Vivian Jean Wilhelm a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Thank you so much for your helpful tip! I was able to verify the person and book a call session with her. She seems very proficient and I'm really grateful for your guidance
It’s crazy to think I pay 20%+ on taxes for earning money on top of being taxed for spending money.
Is still lower income tax compared to other countries, which can go more than 50%.
TH-cam won’t let us post comments about overthrowing the govment
That it’s even crazier to think your dollars are becoming less valuable overnight because they print it for every reason under the sun and Steal from the public stock market
@@escopetadoce other countries have something to see for it. We just get to see our government scramble to spend the remainder of their budget on useless stuff at the end of the year or face a budget cut.
@@escopetadoce It should be zero. Income tax and debt are the top two obstacles for expanding personal wealth.
Its ridiculous to pay taxes on money you earn then pay taxes for everything you purchase. Then the people who sold you goods get taxed for money earned then get taxed for things they purchase. It never ends!!
And then anything you save is taxed if try to give it to your kids when you pass, and everything you buy that's "too expensive" is taxed every year (houses, cars, etc.)-- the government has gone well beyond their "enumerated powers".
No Joke I bought some sports tix this summer for about 600. got sick this fall could not go to games was going to sell the tix at a loss and ticketmaster was going to report me for taxes decided to just not do anything with them. I bought them and they wanted to tax me on selling them less than I paid for them with my money.... insane world we live in. dont get me wrong had I tried to sell them for a major profit I understand but at a loss just wild.....
Hat Trick taxes. Gotta love it. Who does it benefit? Not you or me. We don't own our Government.
We're so FREEEEEEE
@@morriganfey6079Actslly that is incorrect as far as tax on money saved after you pass. Estate is not taxed on first $12.06 million.
I hate paying over a third of my money to a government that’s constantly making things worse
And giving it all away
@@michaeless658 That's the part that kills me. Giving away out hard earn money to countries like Israel, and Ukraine. SMFH...
Same here.
You are free to move elsewhere.
Go to a different country then
With Market tumbling, Inflation Soaring, Is the stock market actually getting better or could this be the regular new year market manipulation to entice new investors? I'm currently sitting on $500k inheritance and just wondering what better assets than stocks to invest in right now
You need a certified financial planner straight up! personally, I would invest in etf and also love investing in individual stocks. yes it’s riskier but am comfortable in my financial environment
No doubt, having the right plan is invaluable, my portfolio is well-matched for every season of the market and recently hit 100% rise from early last year. I and my CFP are working on a 7 figure ballpark goal, tho this could take till Q3 2024.
I appreciate the implementation of ideas and strategies that result to unmeasurable progress, thus the search for a reputable advisor, mind sharing info of this person guiding you please?
She goes by ‘’Vivian Jean Wilhelm’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
Inflation, bank collapse, severe drought in the agricultural belt, recession, food shortages, diesel fuel and heating oil shortages, baby formula shortages, available automobile shortages and prices, the price of living place.
Government policy has thrown the future under the bus for decades. The day of judgment is near. I predict an 80% drop in the stock market. Investors will abandon stocks in favor of real estate. There will be no money in banks... You must devise a strategy for survival.
I agree. I have pulled in more than $435k since 2020 through my advisor. It pays off more in the long run to just pick quality stocks and ride with those stocks.
@@maryHenokNft Mind if I ask you recommend this particular professional you use their service? i have quite a lot of marketing problems.
I'd like to give significant credit to *Camille Alicia Garcia* who maintains a strong online presence. You can easily find her through a web search. While there are some other individuals worth considering, it may be more challenging to locate them. In addition, Julia has provided excellent guidance throughout the year.
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
It's crazy that people making under $11k are taxed at all. To the government, 10% of $11k is chump change, but for that individual, it's a boatload of money.
The standard deduction is over 13k.. they are paying ZERO taxes! Ha!!!
@prettysubliminals2555 What???? If your income is reduced to below zero ($11,000 - $13,000 = -$2,000), your income is considered ZERO. They can tax you at 100% at that point. 100% of zero is still Z-E-R-O.
@Pretty Subliminals I’m sorry that you don’t understand. Or even want to understand. It’s typical.. but this person pays ZERO in fed taxes. Crazy, right?? Ha!
Poor people qualify for social programs such as cheap or free healthcare, food stamps, section 8 etc. So they end up getting more than what they pay "in".
@@MrTmenzo Much of these people that make less than $11k a year are most likely students.
It's absurd how much taxes we pay yet the country is always at a deficit.
Deficits are a farce. It’s literally made up.
That's because the bracket percentages grow logarithmically, and the rich get huge tax cuts not accessible to the poor. Not to even mention the money the rich *receive* from the government.
If you want an eye opener, you should look into the unfunded liabilities.
Because the working class does not generate enough taxes to pay the debt. The rich folks, and corporations, which could and should help pay, who can afford it, arent.
Because politicians on both side just spend money without accountability.
We just sent billions for Ukraine and we are not part of the war, not part of the UN. All funded into ftx and back into the democrats party.
We the people need to wake up and put a stop to this over taxation by whatever means necessary
Yes we do. This has to stop.
Why Americans aren’t collectively livid & outwardly resentful of the way the IRS operates is beyond me.
Because congress sets those taxes. The IRS just administers it.
Americans ate too comfortable and too cowardly... this isn't 1776ish..
The irs is a violent, tyrannical gang.
@@Framer_Mike Exactly what I feel when it comes to taxes and firearms. This government will keep infringing because we let it happen.
Most Americans are dumb and don’t know what’s going on 99% of the time
We pay way to many taxes and to much. The reason I say this is cause our taxes are highly miss used and mismanaged by our government. Thank for explaining the tax brackets with good detail
It's ridiculous, honestly!
im down for the Revolution, lets get this party started
Taxes don’t fund the government. First step to understanding the economy is understanding that. Everything else you believe is absolute nonsense.
Geeze, those taxes more than wipe out the kudos of being employed by the US corporation. Why would anyone want to stay in the corp. is beyond me.
Its a corporation, not government. A bankrupt one at that. Well the UNITED STATES, INC. declared bankruptsy in 2013. Not sure what’s going on with the I*S tax Corporation, employees keep paying in so I guess the bankrupt US is still operating. Not the best retirement solution, contributions too high.
However now they are also trying to pass a bill to tax all small transactions at 600 dollars or above. Meaning all gig work, side money from Ebay, Etsy, etc would be taxed even if it was just a small amount.
🔥Something completely missed and would have taken just 15 seconds to explain: taxable income is progressive throughout the brackets. If you move into the next tax bracket, you don’t pay that rate on all of your income. You pay taxes at each of the tax bracket rates.
I was thinking the same thing. This is not a very good explanation without that explained.
You also need to factor in the current 21% corporate tax rate since businesses don't pay taxes they just pass their tax onto consumers. This tax is paid by all taxpayers in all brackets that purchase from corporations.
This is a very important thing to state and I was also surprised Karlton didn't mention it.
@@charlesbyrneShowComments4all BS. That is a myth. They price gouge when they think they can get away with it. Corporate tax rates have been cut. By a lot. Yet look at prices now. You are having the tax burden shifted onto you because the corporations aren't paying what they used to. This is just like the Reagan trickle down economics BS. Stop being hoodwinked
@@charlesbyrneShowComments4all 100% agree. When you start thinking of taxes we pay that are embedded into products including gas which is about 30-40%, it’s a lot of taxes. Then add in sales tax, property tax, and flat taxes (permits and documents like DMV fees, fishing license, construction, etc. Our net effective tax is really high when you think of it.
Inflation hits people a lot harder than a crashing stock or housing market as it directly affects people's cost of living that people immediately feel the impact of. It's not surprising negative market sentiment is so high now. We really need help to survive in this Economy.
People prefer to spend money on liabilities,Rather than investing in assets and be very profitable
You're so correct! Save, invest and spend for necessities and a few luxuries relatives to on's total assets ratio
This must be an investment with Mrs Maureen K carr
Such a wonderful personality, you’re totally a genius with your work and you have the best options.thank you for your help Ms Maureen
The amount of Taxes we get charged in Califonia are insane! Regardless though, you get docked on each paycheck for taxes, you go to the grocery store and get charged taxes, you pump gas you pay taxes, at the end of the year when you report your income, if you made more than what your bracket threshold is, you have to pay taxes. Lol 'Merica
Maryland is right behind you all and NYC as well
I like how the brackets only went up by about half of the actual inflation. It’s like they are rigging the game in their favor.
Actually if you look at them year over year. Last year if you made over 400k you had to pay 40% now that is down to 35% and the max it caps at is 37% for over half a mil. But yet the 10,500 to 40k mark has increase by 2% from 20 to 22%. So the government is screwing the middle class while helping the upper with a tax brake.
Yeah, and like they are trying to squeeze the middle class out into a prince and paupers society.
Revoke consent by refusing to sign W2 and the feeling of being robbed of wages will stop. It's that easy. Taxes are voluntary.
@@fyrbyrd71 Don't sign W2, you don't get hired.
@@mistrfinga What code is that?
Maybe I'm mistaken, but I thought, if one makes $50,000 a year for example, the first $11,000 is taxed at 10%, the amount between $11,000 and $44,725 is taxed at 12%, and the amount above $44,726 is taxed at 22%.. In other words, each tax payer does not fall into only one tax bracket but in multiple brackets (unless one makes less than $11,000). Am I mistaken?
That is correct. The 90k vs 100k example was not the best
You are correct here
You're correct. You're taxed that percent for that bracket, and then moved up and taxed on the remaining. So if you're $1 in the 24%, that bracket you'll only pay 24¢, not 24% on every dollar.
I find it amusing that most people don’t know that taxes are progressive.
If that is your gross income, first deduct the standard deduction to get your AGI (adjusted gross income). Then apply the tax brackets to the AGI and yes, you are correct rates are tiered to income ranges.
It’s absolutely evil than anyone making 15,000. Or less, are taxed at all. When you can’t or barely can afford a roof over your head. They’ve always punished the poor, elderly, and disabled.
They aren't "punishing" you. They're ROBBING you... Stop talking like these scumbags are your parents.
@@K0RP53 You hit the nail on the head.
More like the middle class. We pay for everything!
@@littlet7556 I hate to say, most people are not middle class that is "paying for everything". The people that pay for everything are the high W2 earners, think about our lawyers, doctors, and such. They all tend to reach the 28-35% brackets. A doctor making say $350K a year is paying tens of thousands just in Federal tax alone. They pay for everything, they don't actually use the city's police or roads more than you do. Not shaming you but trying to put things into perspective.
The ones who got away with paying their fair share the ultra wealthy because they don't earn W2 and therefore get away from the high taxes.
Everyone needs to pay their fair share.
Excellent video young man. I’m 64 and I’ve never heard anyone explain taxes as well as you did. Thanks for the video. Keep up the great work. You just got a new subscriber
Same here
You pay as you go, meaning your first $11,000 is taxed at 10%, 12% at $11,000-$44,750, and so on and so forth. Your effective tax is a combination of entering each bracket, you don't lose much being at the bottom of a tax bracket. You don't lose money for making more money.... unless you no longer qualify for things aid and whatnot. Also, your taxable income gets deducted by the standard deduction or stuffing money into a tax-deferred account such as 401k or HSA plan, are above the line deduction so you can use that to manipulate your income so that you get to keep the tax breaks you would not qualify for. Look up EITC and Saver's Credit, it's a bit more useful for joint filing but it might be relevant.
This is what people don’t realize and what the video didn’t hit on. I know people that consider working less hours because they think going up a bracket will make it not worth making more income.
@@joesportsfan6326 and you got tools to not be paying 22% like a 401k or a HSA. I was talking to my lead about this, he said working overtime just gets eaten by taxes, and I said the least you could've done is get your full 401k matched, basically leaving 1.5% on the table and you could be getting 3% more headroom before paying 22%.
It's also a good idea to buy a 30-year mortgage because interest and property taxes can both be itemized and if your state got income tax that can also be itemized. It's the most common way to surpass the standard deduction and a way to get ahead in life. But your standard deduction might be hard to pass if you're filing jointly so you or your tax preparer should do the math on whether you can benefit by filing separately (like if you both work with similar income).
What some people don't understand about houses is that 2.5% of the interest the bank gives you gets eaten by inflation and then you can write off a large portion of the total interest therefore houses are a lot more affordable than they appear especially if you start hitting the 22% mark.
Does everyone qualify for the standard deduction? Do you need to show any proof to get the standard deduction?
@@Ogema-1 but what about interest? Would it be smart to buy now?
@@braetonwilson4296 Yes, it's sort of a handwave to say "This is to offset my expense for necessity, no I got no proof". It also has the effect of raising your tax bracket by $13,850, so you pay 22% only after $44,750 + $13,850 + "Above the line deduction" such as 401k or healthcare premiums. It use to be half of that until TCJA came along in effect giving each working individual $1300-1400 (double if joint) but that is set to expire in 2025.
The most common way people get a higher deduction than the standard one with itemization was through buying a house, the interest payment + property tax along with income or sales tax would have easily put you well beyond the old 7000 limits and can still do so. And just to clarify just interest and property tax could be written off so further along the mortgage it would taper off, but that would be offset by your mortgage being "real value" being cheaper over time due to it costing the same but you can imagine 15 years in of inflation does to your true cost. The higher standard deduction made itemizing less impactful.
The fact that the IRS said they don't audit rich people because it's too hard is another sign of how terrible the IRS really is.
The reason they don't tax the rich, is because the rich don't make taxable income. They create cash flow through debt
Rich people don't have money, they own everything. They drive a company owned car, live in a company owned house, eat at company functions, fly in a company owned jet. And because they are company owned, there use can be claimed as a business tax write off. There is a reason Elon Musk doesn't own a home or car.
Good video but a bit misleading. Tax brackets are not this simple. In fact, income wage tax is progressive. Meaning, for example, if you make 100k and that amount falls within the 24% tax bracket, only a portion of that 100k would be subject to the higher tax rate. If the 24% tax bracket is for income of 80-100k then only the last 20k of the 100k that you made during the year would be subject to the 24% tax.
yes, thank you. I was scanning the comments hoping someone would mention this.
Yep! I thought the same!
Same, has that changed?
He explained that
Oh wow I was wondering. Because for some brackets-that $1 difference would cost you thousands. You’d be better off asking your employer for a lower wage if that were the case.
"It would be a hard government that should tax its people one-tenth part of their income."
-Ben Franklin
We're long past hard and into utter tyranny now.
Ya get what you vote for and you deserve what you get.
@@karensides6616 So you deserve high taxes too?
@@fredrick443 No, but I didn't vote for Dims neither. Hence "ya get what you vote for"
Revoke consent by refusing to sign W2 and the feeling of being robbed of wages will stop. It's that easy. Taxes are voluntary.
over the life of someone's career, how are you supposed to keep up with 8.2% inflation? How many side hustles can you have before getting burnt out?
This really hits the middle class, hard. If the government used complete data I.E. including food and fuel in their inflation numbers, the results would be higher and more realistic.
it seems like unless you're going to push very hard to get up to $100,000 theres no point in trying to get raises
Well done mate - I drive for Rideshare and taxes are always scary. You are by far the best channel I found to break things down to a comprehensible way. Thank you, you clearly know your audience. My regular career is engineering and the Tax code in this country is even complex for me lol. Earned a sub and a like. 🙂
Here's my idea of a fare tax plan and in the long run it ends up bringing in 55.5 % in taxes spread out on an equal playing field. Give this a look, Here is a plan that would be the most fair to all tax payers. Taxes would start at 50K and go up from there. People making less then 49.999 would pay nothing. The breakdown is 50K-99.999K pays .5% 100K-199K pays 1% 200K-299K =2% 300K-399K =3% 400K-499K = 4% 500K-599K =5% 600K-699K =6% 700K-799K =7% 800K-899K=8% 900K-999K =9% 1.000.000 and above pay 10%.
Almost positive others have probably mentioned this, but it's important to note that your entire income isn't taxed at one rate. So the person in the 90K example will have portions of their income taxed at 10%, 12%, 22%, and 24%. With the changing bracket thresholds, the 90K (AGI) earner is only seeing a tax relief on the few thousand dollars that use to be in the 24% bracket as opposed to believing that they are receiving a 2% tax relief on their entire 90K as they drop in to the 22% bracket.
That's not quite true. There is more money being taxed at each bracket. So a little more will be taxes at 10% instead of 12, and a little more at 12% instead of 22, etc.
@@stevefl7175 You're right, didn't mean to overlook that part. I had mentioned that to someone else as well but forgot to do so in this reply.
My friend, same age as me decided that he wanted to retire to enjoy life. We have equal use of a everything provided by the government - we use the same roads, have the same military protection etc.. but my tax rate is dramatically higher, so in comparison, I am being penalized for continuing to work. Another friend is essentially lazy, has never had a good work ethic and makes much less than me and also pays less for taxes - so again I am penalized with a higher tax rate due to my higher earnings which have resulted from years of hard work. We should all have the exact same tax obligation regardless of earnings
A flat tax rate would be great for all and no loopholes for the rich or companies.
Thats where its bad having a flat tax %. If every1 had a 10% tax rate the rich will go beyond rich and the poor will still be poor. If we get a high flat tax, middle class and low income class would still be complaining its to high and vice versa. Just me but i think its better if the jump in % gap is from those who make 150+ is at 22% or more id be happier. Jumping from 10-12% to 22% thats a 10% instant increase for the middle class. While the rich is only 3-5% gap between that higher earning bracket, its bullshit, irs /uncle sam stealing from the lower class yet show nothing for it.
@@pokeversexiong6737 ...Just me, but the Federal government shifting percentages to make things more "fair" is a vail for extortion and soft slavery.... You're essentially supporting the continuation of feudalism while the Oligarch steals your labor and redistributes it among themselves while they laugh at your arguments about how much they ought to steal from us "free" citizens.
@@robertwilson2007 --- Agreed👍🏽
You say that you are still earning money (which clearly makes you better than your ‘friends’) and you still have to pay taxes on all that money you are ‘earning’? Boo hoo…. If your taxes are ‘dramatically’ higher, you are not doing the same work as your pals. How butt hurt could one person be?….
Hel we’re pretty much working at a 50/50 split . Between us and the government. Unbelievable.
My daughter recently saw me doing some calculations on my paychecks and asked why we have to pay taxes on money that we earned. She said "The government already has enough money, they don't need anymore" LoL Oh the innocence of "babes"
Keep her thinking that way. The government doesn't deserve more.
@@gw5479 Absolutely! I told her she was absolutely correct! I am so blessed that she is so intelligent at such a young age and I so look forward to seeing how she will change the world one day, because I know she will!
I've done taxes since 2009. You did a great job explaining all this....
Hey Steve!
I just got a raise and it means absolutely nothing... How many jobs do I need and how many hours a week do I need to work so I can just stay a float?? This is such bs......
Non-clickbait and very informative! Thanks, just subscribed 🙂
This goes right with over time being taxed. I’ve work with therefore I pay more… then they wonder why soooo many people don’t want to work .
Needs to be a law that over time does not get taxed
It's more like you earn more so you pay more.
They honestly don't care how much you work, just how much you earn.
That said, you are not getting taxed "more" if you are still within the same bracket. It is still the same percentage.
However, it is possible that HR might withhold more of your taxes for overtime.
They might not be able to predict ahead which tax bracket you will fall into and proactive withhold more taxes on your behalf.
This way at least you won't under pay in taxes and accumulate any penalties. If you end up paying extra, you will get them back after you file your taxes as tax return.
The government can't have you escaping the "wage slave" bracket...Get back to work.
Overtime isnt taxed at a higher rate, more taxes are just withheld. This is due to the amount of taxes being withdraw is an estimate based on how much you make in that period
The reason you get taxed more when you work overtime is that you are taxed per pay period as if that’s how much you make every pay period through out the year. So if you only work overtime occasionally when you file your taxes it will all average out and you will get the excess taxes you paid back.
My taxable income increased 1200 from last year. Since I have already prepared my 22 taxes I now know my refund is 760.00 less than last year due to inflated tax rates.
When you add self-employment tax, as well as state, county, and city income taxes, what incentive is there to work?
That's why I stopped and became a homeless vagrant that gets to read my psychology books and sleep with escorts well I eat what ever the store sells as I walk with 3 empty bags and leave with them full and free.
If you want to understand that once educated individual stop caring and eating like a king you could too only if you are smart enough to pre plan to get away with it. But that takes book smarts and I'm here to hand them over free of charge!
Norman Angell
The Great Illusion
Robert Greene
48 laws of power
Dr. Eric Berne
The Games People Play.
Beyond Games and Scripts.
Sex in Human Loving.
Grow up or starve with your morales. I could care about as much as the next Human who's life you don't affect.
Umm… eating? Having a roof over your head?
@@SpamSucker and die to overwork :D
@@yunoyukki7344 I suspect that the risk of the new generation "overworking" is quite minimal. Certainly not at fatal levels, anyway. 😉
They are killing the middle class
I’m working longer and harder these days. Neighborhood, health care, roads and infrastructure not looking good. Grocery stores closing, climates changing and taxes all over garnished by the government for whatever reasons. This is insane.
You don’t just fall into 1 tax bracket, you could be in all 7 depending on how much you make. And you example if you push 5k into the next bracket only that 5k is taxed at the rate not the entire amount. So everyone pays 10% on the first 11k and the from 11-44k of your earnings everyone pays 12% and so on… You don’t pay 12% on say 15k but only on 4k of that. People confuse this point all the time with like a sales tax rate that is the same no matter the amount.
What people typically describe as a tax bracket is a 'flat tax' which is not the case. The government doesn't know how much money you'll make in a given year. Everyone is taxed 10% the first $11,000 they make, even Bill Gates. He obviously makes it much faster than we all do.
he clearly explained it in the video.
Your numbers must be based on Adjusted Gross Income, as no one is paying anything on the first $11,000 of income based on the standard deduction. This would be clearer if stated as tax brackets for AGI’s. Thanks for the information.
Does everyone qualify for the standard deduction? Do you need to show any proof to get the standard deduction?
@@braetonwilson4296 Everyone qualifies, it is automatic in any tax software or in the tax forms. You either take the standard deduction or you can itemize allowed deductions and use that amount if it exceeds the standard amount. So the standard deduction is the lowest amount deducted to arrive at adjusted gross income--the AGI is the taxable income. Standard deductions for 2022//2023 tax years are:
Single (or married filing separately). $12,950 // $13,850
Head of Household. $19,400// $20,800
Married filing jointly. $25,900// $27,700
Age65*+ Single. $13,850// $15,700
Age65*+ Married. $25,900// $30,700
*or Blind of any age.
Assuming the standard deduction, for 2022 taxes (filed in 2023) you pay no Federal taxes if single on the first $12,950 of income, or $25,900 if married. The tax brackets kick in above these amounts. Example: single- you earn $20,000: deduct $12,950 = $7,050 AGI taxable income, in the 10% bracket your Federal tax is $705. Most states follow the Federal calculation.
You can easily estimate your likely taxes every year to figure out if you are over or under on your payroll withholding and adjust it with your employer. There are many tax calculator software programs you can buy very cheaply for uncomplicated returns (kiplinger, turbo-tax, etc). Pick one and use the same program every year.
Things are more complicated if you have children or other dependents as there are tax credits for them. Above is for salaried workers; if you own a business I would hire an accountant or bookkeeper. You may have other sources of income (pensions,investments, side gigs) and these are also taxable if your total income exceeds the standard deduction,
At 65 plus, special rules apply to social security and as a rule if you have zero non-social security income, none of the social security amount is taxable. If you have a pension or investment or job income, there is a calculation to determine if part of your social security income is taxable. Typically, if the non-social security income is below the Standard deduction, very little of social security will be taxable. This varies a lot and I always use online calculator at Smart Assets to estimate if any of social security is taxable.
Good luck to all!
@@maryrenaud6732 Thank you Mary! Very helpful!
Obviously it's adjusted since you don't pay on gross. Derp.
Do I get the Standard Deduction if I am claimed as a dependent on somebody else's 1040?
Start donating as much as possible!!!! I’m so sick of our money being taken to pay for &400 loo seats! Those deductions are bloody insane every year. Makes it harder of itemised deductions unless you’ve been hit by a huge lorry and your hospital bill is insane. The percentages are still far too high. The IRS is not helping anyone but themselves.
I always find it frustrating to pay taxes to the government who really isn’t serving me as their employer normally you’d get fired for this it just doesn’t seem like I’m getting out what I’m putting into the system that I see is fair and worthwhile…
You never will they expect us to die from overworking. Not to mention what is the real reason wall street and government are frauds. I can't save money for how much taxes I have to payout. I hate this system of control
So you pave your own road and build your kids' schools and you build your own hospitals and hire your own police force and firemen and maintain your own children's playgrounds, etc., etc?
@@shirleysear7168 paving roads: place a bid out to private and gov. Construction paving companies And see who is willing to pave and do a 4 year maintenance contract on the section/area or road with roadside signs stating who is the company doing it…. Schools: someone else’s kid, why do I need to pay for their kid. They need to pay for their schooling, then maybe they would pay more attention to what money is being spent where and to whom. The government waisted so much money trying to find something on the ex president for years, never found anything.. waisted on sending money to other countries while our citizens doesn’t get services…. I’d gladly pay for better police and better training, along with fire departments. Also like to see both sides of stories when being reported rather then the rush to be first over facts…. Happy new year best wishes..
@@Dpixtion correct thank you for setting the record straight. Shirley got me messed up.
@@Dpixtion That is literally how government operates... to get bids on construction projects.
I'm frankly tired of wasteful spending but also tired of uneducated (not school wise, but uneducated about the actual topic) complaining without actually looking at facts.
You say crap like "better police and better training" but what does that even mean? Most people just complain without doing more research or participate more.
The complaint about kids is non sense. If you live in a more rural area then why should I pay for your street paving? Without kids who is going to pay for your social security? Or do you not know that SS is funded by next generation?
I watch all your videos. I appreciate the content that you teach us. Thanks for the knowledge
Did you leave out a very important part that those figures are AGI, not gross income?
Karl. But it isn’t the whole 100K being taxed @ 24% it is only the amount made after entering the bracket. I think that is also important to highlight. Or has that changed as well?
That’s what I was wondering, because that would actually be worse. Glad I signed up to prepare taxes this year, so I’m looking forward to learning if that changed.
correct. what he's explaining is MARGINAL tax rate. you will be taxed incrementally.
Everyone pays an effective tax rate. My marginal tax rate is 22%, while my effective tax rate is ~17%.
I feel constantly abused by the government taxing me lol. Jeez man I owe 3k from last year and I was without a job for 4months and barely made 49k which were on a w2 and this year alone I’ve paid 15k from my salary and I barely made it to the 50s like wtf. I can’t even pay me rent next month…
it is an organized crime.
Try Dave Ramseys advice it's biblical and backed up by his finance degrees and 30 year experience. It's been helping me out..I owe $1700 from last year currently on payment plan.
theres gotta be something wrong with your witholding then, that shouldnt happen. If you only got 1 income source and its on a w-2 then if you filed on time I dont get how this happens.
Revoke consent by refusing to sign W4 and the feeling of being robbed of wages will stop. It's that easy. Taxes are voluntary.
@@fyrbyrd71 Yeah, don't sign the W2 and the employer is at risk of getting a $500 fine.... they won't take that risk.
They just won't hire you.
Our taxes have always been out the roof. We have no deductions or not enough so we use the standard. We both have good jobs with no children filing jointly, we are maxed out on 401k contributions and still have to pay even more at the end of the year. Frustrating.
Wild that it stops before the millions...
I am retired and have to pay taxes on the social security I collect. The funny thing is I paid taxes on it already during my earnings years. THANKS REAGAN
Yes Reagan signed it into law, but BOTH houses were Democrat majority with Speaker of the House Tip O'Neal, a Democrat so that was a not a purely Reagan action. The in '92 you can thank senator Joe Biden who voted to increase the taxable rate of social security and Democrat vice president Gore who was the tie breaking vote during Clinton era.
Yeah genius why didn't all his successors change it? Why not blame them? Or just do the right thing & blame the current president for this chaotic economy in which only corporates can bode well.
@@GokulOnFire - You are correct we had 12 years of bush rule and they did nothing to correct this double taxation.
@@paul9874 8 genius. You missed Clinton & Obama were presidents too. And why should Bush change a rule that's put forth by his party. Dems scaremonger about social security, force them to do it. But since they're frauds & you're fools nothing won't happen pal.
@@paul9874 Obama did nothing either AND he had BOTH houses his first term. Clinton had the senate and the house his first term. Both Clinton and Obama had the opportunity to change the law but they didn't.
It's really stupid how the tax brackets work. It needs to be a smoother curve.
Net: 44725 would make you 3279 take home per month
Net: 44726 would make you 2907 take home per month
If you make that 1 dollar difference, you're taking home 372 less than someone who makes 1 dollar less than you per year. You'll go from $756 per week to $632 per week. That's insane.
Karlton, great information and well presented. Late in my career I left a longtime employer and started an IT consulting company. It was then I realized the tax breaks a small business can legally use to offset earnings. I liked your advice about using real estate to offset W2 earnings.
Thank you for this video, you broke it down really well, and I hate taxes and find the information very confusing. This was very easy to understand and follow!
Karlton, Please help people to understand that you are taxed at the lower tax brackets first and as you fill up that "tax bracket/bucket" you then are taxed at the next higher tax bracket. Many people don't understand this. The example you give at 10:00 should state "some of your money will be taxed at the higher level. Thanks
Excellent information. I was unaware of the bracket adjustments. Thank you for the video.
Karlton, I have hopped back on with you and you still bring the best tax info thus far! Happy Holidays to you and your family.
What I don't like about this video is that it perpetuates this rampant myth that if you cross into the next tax bracket ALL of your income gets taxed by that next tax bracket's percent. I know Karlton knows how it actually works, but he never clears that up in the video, which leads to people thinking that if they 'cross the line' their return will be smaller than if they stayed under.
To be clear, if you cross from the 12% bracket to the 22% bracket, your income DOES NOT get taxed 22% in its entirety. ONLY the chunk of money above $44,725 gets taxed 22%. The chunk of money between $11,000 and $44,725 gets taxed at 12%. And the chunk of money $11,000 and under gets taxed at 10%.
Again, 'crossing the line' WILL NOT result in a lower return, all other things being the same.
Thank you Karlton, your explanation of the upcoming tax bracket changes was simple, to the point and easily understandable. Keep up the good work.
Excellent information! So clear and easy to understand. Thank you for your work on pulling the info together and presenting it.
For whom?
I just got a raise this year. I want to give it back now because after barely going to another tax bracket my take home pay will be less that what I made before the raise.
yknow this helps but im still gonna be broke next year XD
as a middle income worker, I sent them over 20k last year. It's hard to stomach watching those who refuse to work or work part time, pay zero in taxes and even get large returns because of EIC and other bogus programs.
Umm, taxation without representation. They take your money and you have no say where it goes?
Thank you for making it plain. Much appreciated 👍🏽
Clear and concise takes you places thanks for the info
There is no law saying you have to pay federal taxes, That's why less then 45% of Americans paid federal taxes in 2021
Most of them on welfare, or are in high risk investments. We did a 1031 exchanges some years back where we paid no taxes for the years we were in the investments. In the end, the fed and st come-back for any profits and depreciation used in the form of taxes. Slackers get the free stuff, but I would never want to be any of them. I have never voted Democrat for good reasons as well as keeping a good conscience.
The fact that I have to pay 32% in taxes is insane
People making 182K have been paying 32% in taxes since 2018.
@@jpfly66 Whats your point sped
We need a video of exactly how to get away with not paying taxes lol specially knowing that the government just blows all the tax money carelessly.
So let's say everyone gets away with not paying any taxes, where is the money going to come from to pay for social security checks, food stamps, SSI, VA Hospital, VA Benefits, maintenance of highways, military, those who work in the various government offices at the Federal level and in DC in addition to the FBI, CIA, DHS, etc?
@@dianad3080 Lol that would never happen. But if you and I and his followers don't pay taxes. That money we all saved would benefit us and our families, way more then the government using it. You having an extra 50k each year, or you giving government 50k to send to a different country, or pay some politicians wallet. lol if they used tax money wisely, there should be not a single pot hole in any road in america….
Start a LLC you will pay less
National sales tax would pay for all that. Except the government would shrink with only the necessities.
Please tell me if I'm wrong but from my understanding.
If you make say $60,000 yr you are taxes
For your 1st 11,000 at 10% then taxed from the 11,000 to 44,726 is taxed at the 12% then from the 44,726 - 95,375 would be taxed at 22%
So if you made 60,000 you would only pay the 22% tax only from the 44,726 - 60,000 would only be around 16,000 would be taxed at the 22%
Why voting for people who keeps making our lives more difficult everyday 😢 - this is not fair at all to the middle class
BECAUSE YALL ARE ZOMBIES
you are right, people keep voting people back in again and again because orange man bad and not what helps themselves, how dumb, a person should vote what makes their life better and not the governmwent
@@butchs2337 me had way more money in me pocket under orange man. Me want orange man back. Me not sensitive. Me not on twitter to see orange man mean tweets.
@@LAAM619 yes the same here, people need to look at the persons re cord and vote that way not on looks and what they say they will do because they all lie to get into office and then do what they want and not what the people who voted them in want, these government people forget they are working for us the US Tax payer, go into government poor and come out million needs rto stop, term limits are a must
@@LAAM619 exactly. The demoncrats are siphoning money from people left and right.
New Zealand has this type of income Tax. They call it a "Progressive Tax" Totally Not fair & out to screw the Middle Class
Being retired it’s important to stay below the 12%.
This is why we all should’ve been voting for President Trump.
To obtain financial freedom one needs to be a business owner, an investor or both, generating passive income, particularly on a monthly basis.
@isaacssanderson9926 Yeah!! It would be more beneficial and yield more profit if you actually trade on cryptocurrency, I've been trading since the dip, I've made so much profit trading.
Oh please,,, how can someone get to speak with Mrs Camille ,,, I really have poor stream of income😓
@Robin Vanessa Thanks for sharing, I will definitely ensure to do that 🙏
Well a trial will do. Thanks for sharing 🙏
I'm from Los Angeles, I and two other of my friends tried her immediately we tried her, her performance also worked for us.
No matter what, it's still way too much to have to pay. Especially if you live in a state that has high state taxes.
It’s absurd to think someone making $45,000 is taxed 2% less than someone making $182,100
We need to change the way this is explained. Everyone also has to pay FICA taxes (Medicare, Medicaid, Social Security) that adds 7.65% if you’re employed or doubled if you are self employed. That’s a significant impact especially when you factor in all the other taxes (sales tax, gas tax, real estate tax, school tax, etc., etc.)
You said "making" which incorrect. These tax brackets apply to your taxable income and not to the amounts you make. What you make is your salary, W2 amounts plus portfolio income etc. After taking your deductions and credits you will arrive at your taxable income.
Current Inflation is being driven up mostly by fuel prices,
If we switch to Nuclear power and give greater incentives to buy electric cars (including subsidising and prioritising lithium battery production) this problem will subside substantially over time.
Also, many countries are going for the practical short term measures of taxing fossil fuel company profits to discourage extortionate profiteering!
Overall though, Society’s rejection of Nuclear power was a massive mistake, and the environment has payed dearly for it as we continue to rely on fossil fuels for our electricity..
Thanks, but would have been better to have slides not handwritten and have comparison to what it was vs the new brackets.
The tax brackets are the same the annual salary amounts have increased. example: (2020) Married 10% tax $0 -19,750 VS (2023) 10% tax $0-22,000. Tax brackets are same, annual salary limits are higher. That's a good thing.
Left out of the income tax brackets is the fact that one automatically paying 7.35% and one‘s employer is paying 7.35% of income into SS and Medicare. Someone more knowledgeable than me knows what the cutoff is, I’ve never reached that threshold so it has never been important to me.
In the USA we only mention Federal taxes, but in Europe, they group all taxes including SSN and medicare and healthcare etc. and say it's too high it's 40%.
If you take 32% Federal in USA + 7% state + 8% SSN + 2% medicare + Healthcare, etc. then it's way more than in Europe
In Australia the first $18200 is tax free then 19 cents in the dollar until 45k . 45k to 120k is 32.5 cents. This is before tax offsets such as low income , family etc. there is no State or Local income tax.
There is a 2.5 % Medicare levy applied after $18200 which helps pay for universal healthcare and the national disability insurance scheme ( A new scheme that provides support if you become disabled or born with a disability) ( you also get around a 30% rebate on private health insurance coverage, so full hospital etc looking at around $1500 a year in premiums)
I live in Ct I already paid tax on my SS while working and now when I file I still have to pay. My husband still works so we file together and once my SS gets entered, that's it its all over!
Price increases are not inflation....money creation by the federal reserve is inflation (inflating the money supply)...which then in turn leads to price increases due to higher amounts of money chasing the same amount of goods in the economy. Money creation, which is what funds a huge amount of what the government does, is a hidden tax on the American people. So not only are you paying your taxes...you're then also paying more for everything you buy due to price increases brought on by the government. So basically...they get a ton of money directly from you...and then they get whatever else they want by instructing the federal reserve to create money out of thin air which raises prices for everything you buy. In reality...you're being taxed WAY higher than whatever percentage they tell you you're being taxed at. Add all of the state, city, and county level taxes you're paying...and then any sales tax on top of that...essentially at least half of all the money you make is being stolen from you in one form or another. The US government is the largest criminal enterprise in the history of the world....and unfortunately...most people are too uninformed to even realize that it's happening to them.
Bingo.
Taxes are so confusing and overwhelming for me and I don’t feel like I can afford an accountant but I haven’t really looked into it. I appreciate your videos
Thank you. You're a great host and teacher.
Would have been nice to post the old tax brackets for comparison.
I hate that I'm taxed more than the rich. There should be a minimum tax rate for the ultra rich with no way to get around it. No loop holes. No creative accounting. Having these people pay no taxes is absolutely ridiculous.
The comments are much more interesting than the video. It is amazing how many people have absolutely no clue at all about the tax system and what they actually pay in taxes. Especially those that don't pay at all, receiving "refunds" over and above any taxes that may have paid in over the year. Those are the people screaming the loudest for others to "pay their fair share".
I think there is a good video that explains how the brackets work. If you make $120,000 after your deduction that doesn't mean you pay 22% of that. You pay the tax of each bracket until you get to the next one. The first $11K would be taxed at 10%, equaling $1,100. The next bracket $11K to $44,725 ($33,725) at 12%, equaling $4,047. So now the first $44,725 would run a $5,147 tax bill. Repeat at each level. This is why it isn't as bad as it appears at first sight on the %. (Taxes still suck though)
No, it is as bad. In fact, it's so much worse than presented here.
@@thisismyname2936 I don't actually like the way it is done. btw I would rather have the Fairtax
I feel like so many people are talking about how "the government" is taxing you with both income tax and sales tax, when there's more than one "government" (state and federal) and each taxes you separately, with sales taxes only going to the state. Also fascinated by how many people apparently don't want roads, fire, police, clean water, food safety, a military, consumer protections, etc.
I am so tired of being screwed for living the American dream! Eff the tax bracket! I can no longer afford to live in the US!!!
The best deal I've ever made, tax-wise, was to set up a contractor side business: my home, security, phone, internet, health insurance, gas, car, real estate taxes, and on and on, are ALL deductable. In addition, a huge portion of my income is tax-sheltered. The tax code GREATLY benefits those receiving 1099 income (yes, that's for contractors AND people running their own small businesses. Even if you make $10,000-whatever you are helped. As I get older I'll be scaling back, but I don't think I ever want to quit working a few days a month, even two days a month---that 1099 income gets the full deduction for most of my expenses. I only work about 6-7 days a month at this time, but can see scaling back to 2-3 days a month in the future.
Not sure if it was explained clearly here. Making sure everyone understands only the amount over each limit is charged at the next tax rate. In other words if you make $10,000 more than whatever limit only the $10,000 over the limit is charged at the next rate and so on Down the Line. It's not like Crossing that threshold and then all of your money is taxed at the new rate. There was a time when I didn't fully understand this.
Probably should have been clearer that the brackets are based on TAXABLE INCOME which is what you make MINUS any deductions
Keep in mind if you make say $100,000 most of your income is NOT in 24 percent bracket. The First 11,000 is in the 10 percent, the next 31,500 is taxed at 12 percent, the next 47,300 is at 22 percent. Only 10,925 will be taxed at 24 percent. Obviously, this doesn't include the standard deduction. I don't want to complicate things.
CITIZEN TAX would be great! One citizen - one vote. One citizen - pay one citizen's portion of the federal budget. Simple, fair and EQUAL.
How fast do you think the federal budget would shrink if each citizen found themself responsible for their fair portion of that budget?
How many citizens would revolt at the idea of U.S. government sending money for gender-studies research to Brazil or getting involved in ever more wars if they actually had to foot their portion of the budget each year?
I'm one citizen who only gets one vote, I get the same infrastructure, protections, and judiciary as every other citizen. I DON'T receive many of the government handouts that others receive, yet I pay a lot more than most other citizens in taxes. That makes me a lesser citizen than most every other citizen - I'm certainly not treated equally under the law.
This was very helpful. Those who fall into the lower income range of the 22% bracket are going to get creamed. Just $1 over could cost several thousand in additional taxes. This is really wrong. Especially in a year when so many are struggling.
That’s not how it works. If you make $1 over the cutoff, then that extra dollar would be taxed at 22% - not all of the income below the threshold. Hence, you would pay 22 cents more - not several thousand.