@@jimhandler1129 Yes, Your Traditional IRA and HSA contributions are "above the line deductions" also known as adjustments. They reduce your gross income into "adjusted gross income" and then you take your deductions (standard or itemized). I hope this helps! Here is another video of mine explaining "above the line deductions" I think you will find helpful. th-cam.com/video/i2iN0-i7dYg/w-d-xo.html
LOOKING AT THE HIKE ON TAXES ON PROPERTY TAX HOME INS THOSE SHOULD BE PUT ON YOUR TAXES TO HELP OUT FAMILIES PRICE HIKE THE TAX RATE IS GOING THROUGH THE ROOF😮😢
If you have a full time W-2 job and a 1099 side hustle can you take business write offs (ie you do uber, buy a car, write off applicable amount for your uber self employed contractor business) and take a standard deduction for your full time w-2 gig? Or since your taking business write offs for the 1099 work you have to take itemized deductions (if any apply).
You can take the standard deduction regardless of w-2 and/or 1099 so yes. You can take your business expense write offs on your schedule C, which is seperate from the standard deduction. Simplified Example: W-2 Income: $40,000 1099 Income: $20,000 Total Income: $60,000 Standard Deduction: $12,000 (not the right amount, just for math purposes) Business Expenses: $15,000 Other Adjustments: $0 Taxable Income: $33,000 ($60,000 - $12,000 - $15,000) Hope this helps!
Yes! you can, It's called amending your tax return. Generally, you can amend up tax returns as far as 3 years past. You can read about it here on the IRS website: www.irs.gov/taxtopics/tc308 I would seek some help from your tax professional, or if you used a tax filing software you can usually log back in and make your changes right there. Good luck!
For the medical bill deduction, is what you can deduct the amount that exceeds 7.5%? Or can you deduct the whole amount as long as the amount exceeds 7.5%? Ex. If I make 100,000 and medical bill is 10,000 - can I deduct 10,000 or only 2,500?
Unfortunately, "You may deduct only the amount of your total medical expenses that exceed 7.5% of your adjusted gross income." www.irs.gov/taxtopics/tc502 So for your example, you would only deduct $2,500 on your itemized expenses. *Remember that your AGI can be less than your gross income because of "above the line deductions" on your schedule 1.
Perhaps because adjustments aren't standard? If we look at the adjustments they are special circumstances that reduce your taxable income. Everyone is entitled to the standard deduction, but not everyone is entitled to adjustments. That's my guess.
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Can I take the standard deduction AND deduct my Traditional IRA and HSA contributions?
@@jimhandler1129 Yes, Your Traditional IRA and HSA contributions are "above the line deductions" also known as adjustments. They reduce your gross income into "adjusted gross income" and then you take your deductions (standard or itemized). I hope this helps! Here is another video of mine explaining "above the line deductions" I think you will find helpful.
th-cam.com/video/i2iN0-i7dYg/w-d-xo.html
Your video's are great!!
Thank you so much!
Thank you! very clear and easy to understand to put in practice
You are very welcome! Thank you for watching!
Great info, thanks!
I'm always happy to help! I hope you find some of my newer videos just as useful! :)
LOOKING AT THE HIKE ON TAXES ON PROPERTY TAX HOME INS THOSE SHOULD BE PUT ON YOUR TAXES TO HELP OUT FAMILIES PRICE HIKE THE TAX RATE IS GOING THROUGH THE ROOF😮😢
Yes, insurance and property tax rates have increased dramatically with increasing home prices and inflation, it's terrible.
So are saying that people should not get married. If they have kids. One can file for head of household and other can file single? Is this correct
No, I'm not saying that at all haha. I strongly believe you should not base marriage on taxes either way.
If you have a full time W-2 job and a 1099 side hustle can you take business write offs (ie you do uber, buy a car, write off applicable amount for your uber self employed contractor business) and take a standard deduction for your full time w-2 gig? Or since your taking business write offs for the 1099 work you have to take itemized deductions (if any apply).
You can take the standard deduction regardless of w-2 and/or 1099 so yes. You can take your business expense write offs on your schedule C, which is seperate from the standard deduction.
Simplified Example:
W-2 Income: $40,000
1099 Income: $20,000
Total Income: $60,000
Standard Deduction: $12,000 (not the right amount, just for math purposes)
Business Expenses: $15,000
Other Adjustments: $0
Taxable Income: $33,000 ($60,000 - $12,000 - $15,000)
Hope this helps!
Is there any minimum in salary to qualify for standard deduction ei: married salary 30k - 24k SD so I’ll pay taxes only on 6k ????
No minimum salary. Your income is federal Tax-Free up to at least the standard deduction, no matter how much it is.
I suspect I may not have taken advantage of some tax breaks. Are we allowed a "do over" of our taxes? If so...how far back can we go?
Yes! you can, It's called amending your tax return. Generally, you can amend up tax returns as far as 3 years past.
You can read about it here on the IRS website: www.irs.gov/taxtopics/tc308
I would seek some help from your tax professional, or if you used a tax filing software you can usually log back in and make your changes right there. Good luck!
@@OnCashFlow Thank you!
@@neosoul2010 no problem I'm so glad I could help!
For the medical bill deduction, is what you can deduct the amount that exceeds 7.5%? Or can you deduct the whole amount as long as the amount exceeds 7.5%? Ex. If I make 100,000 and medical bill is 10,000 - can I deduct 10,000 or only 2,500?
Unfortunately, "You may deduct only the amount of your total medical expenses that exceed 7.5% of your adjusted gross income."
www.irs.gov/taxtopics/tc502
So for your example, you would only deduct $2,500 on your itemized expenses.
*Remember that your AGI can be less than your gross income because of "above the line deductions" on your schedule 1.
I wonder why it’s called a standard deduction and not called a standard adjustment? 😎
Perhaps because adjustments aren't standard? If we look at the adjustments they are special circumstances that reduce your taxable income. Everyone is entitled to the standard deduction, but not everyone is entitled to adjustments. That's my guess.
+1 for discussing incentives vice loopholes
Loopholes are the definition of why our tax code is so enormous.
This guys keeps repeating himself
Sorry! I was still learning back then! I have gotten better at not doing that, I promise!
I need him to repeat, I’m learning !