Yes, it is fun to optimize one’s Federal tax position. I have always found state tax optimization a drag. Thanks for emphasizing that ATL deductions are actually adjustments to income.
OnCashFlow yeah, push all possible government services down to the states and let them figure it out. At Federal level use good ole war bonds to fund the US Armed Forces. Guess it’s too late to lose FICA though. 😎
Outstanding job! We need to get people to have at least 3-4 different LLCs for their side hustles, cars, businesses, at least 1 Corp, Self Directed Roth 401k, HSA, 501C3, and a Trust. Every home in America needs that now. Pay No Taxes legally..
I agree John everyone should have a business (or businesses). The tax code is so complicated that only a few can afford the time, energy, and cost to understand all of it! Uncle Sam doesn't want everyone knowing the tricks!
That’s why I’m here, I need to learn this but I’m overwhelmed because it’s over my head 😏 I lost my job as an RN and not sure I can go back to the immoral corrupt healthcare system. Im single, 56 yr old woman and I’m burning through my savings, I need to find something that I can do and not work myself to death to have the government take most of it !!! What advice can you give me on where to start ? Thank you and God bless !
This vid bummed me out. I never knew I could be setting money aside for retirement for “free”. But I’m so glad I found out now and not when I’m at retirement age lol
I'm sorry that it bummed you out! I would hope that it would spark joy in knowing that you can make a change now that greatly benefits you in the future! :)
Awesome content! Thank you so much. Question: If I have a net operating loss from my business but file jointly with my spouse who is an employee making money, can we still claim the standardized deduction? Basically, does reporting an NOL on our 1040 prevent us from claiming a standardized deduction? Thanks in advance!
Hello Jeff! Thank you for the positive comment, I really appreciate it! You certainly can take the standard deduction even if you have a business that has an operating loss. Unless you're incorporated, you should be reporting business earnings/losses on Schedule C, then placing your profit/loss on Schedule 1 (adjustments to income) Schedule A is your itemized deductions, but you don't need it if you enter the standard deduction on form 1040. Here is an oversimplified example: $100,000 Gross W-2 Income -$20,000 (Business Loss) $80,000 (Adjusted Gross Income) -$24,800 (2020 Standard Deduction) =$55,200 (Taxable Income) I hope this helps! Thank you again for the kind words!
If you are in a situation where your total income is less than the standard deduction, then it appears that above the line deductions do not help because they will be cancelled out by the standard deduction. Either way your taxable income is zero. Am I understanding this correctly?
You should watch my Complete Guide To Optimizing Your Income Taxes!
th-cam.com/video/WlAbAg07LH8/w-d-xo.html
Love your channel. Great stuff!👍🏽
Thank you so much!
Yes, it is fun to optimize one’s Federal tax position. I have always found state tax optimization a drag. Thanks for emphasizing that ATL deductions are actually adjustments to income.
Maybe we should just abolish the tax code and then I wouldn't have to emphasize anything haha!
OnCashFlow yeah, push all possible government services down to the states and let them figure it out. At Federal level use good ole war bonds to fund the US Armed Forces. Guess it’s too late to lose FICA though. 😎
Outstanding job! We need to get people to have at least 3-4 different LLCs for their side hustles, cars, businesses, at least 1 Corp, Self Directed Roth 401k, HSA, 501C3, and a Trust. Every home in America needs that now. Pay No Taxes legally..
I agree John everyone should have a business (or businesses). The tax code is so complicated that only a few can afford the time, energy, and cost to understand all of it! Uncle Sam doesn't want everyone knowing the tricks!
That’s why I’m here, I need to learn this but I’m overwhelmed because it’s over my head 😏
I lost my job as an RN and not sure I can go back to the immoral corrupt healthcare system. Im single, 56 yr old woman and I’m burning through my savings, I need to find something that I can do and not work myself to death to have the government take most of it !!!
What advice can you give me on where to start ?
Thank you and God bless !
thank you! what a great marterials
Wonderful! I'm so glad it was helpful for you!
This vid bummed me out. I never knew I could be setting money aside for retirement for “free”. But I’m so glad I found out now and not when I’m at retirement age lol
I'm sorry that it bummed you out! I would hope that it would spark joy in knowing that you can make a change now that greatly benefits you in the future! :)
Thank you!
No problem!
Thanks for these infos
A question can we take both standards and itemized deduction together or just take the bigger number ?
Only one or the other, whichever is higher. For 9/10 people it is standard deduction.
subbed!!
Thank you!
Awesome content! Thank you so much. Question: If I have a net operating loss from my business but file jointly with my spouse who is an employee making money, can we still claim the standardized deduction? Basically, does reporting an NOL on our 1040 prevent us from claiming a standardized deduction? Thanks in advance!
Hello Jeff! Thank you for the positive comment, I really appreciate it! You certainly can take the standard deduction even if you have a business that has an operating loss. Unless you're incorporated, you should be reporting business earnings/losses on Schedule C, then placing your profit/loss on Schedule 1 (adjustments to income) Schedule A is your itemized deductions, but you don't need it if you enter the standard deduction on form 1040.
Here is an oversimplified example:
$100,000 Gross W-2 Income
-$20,000 (Business Loss)
$80,000 (Adjusted Gross Income)
-$24,800 (2020 Standard Deduction)
=$55,200 (Taxable Income)
I hope this helps! Thank you again for the kind words!
@@OnCashFlow Yes that's perfect. You totally answered my question! Thank you for taking the time to reply
@@Jeffsingleton100 I'm more than happy to help anytime , Jeff!
Hi . This is a great video. Any suggestions for me in how to study taxes ....??
@@OnCashFlow yes that's perfect
If you are in a situation where your total income is less than the standard deduction, then it appears that above the line deductions do not help because they will be cancelled out by the standard deduction. Either way your taxable income is zero. Am I understanding this correctly?
Your total income would be adjusted, then your adjsted gross income would be less than the standard deduction, meaning no tax bill.