Been doing my own taxes for a decade. Before owning a house or reporting gains and losses. Already got my return. 7 days from submitting in late February 😊.
Some people hear that you can get all kinds of tax deductions if you are running a side business, but do not realize that the *ONLY* deductions that you can get for a side business are the expenses *OF* that business. If your business is profitable, the expenses will reduce the profits of the business, and you'll pay less tax. If your business is not profitable, you can offset other income with business losses, but if you don't start making money, the IRS will disallow the losses as "hobby losses" instead of business loses. (Your fellow taxpayers are not going to subsidize your hobby.) Nonetheless, some people seem to think that running a business will allow you to have other deductions that are not related to the business.
Most of the deductions you mention are for people with higher incomes but good to know. What is your opinion on using free online services like turbo tax ?
From my experience, filing federal tax through TurboTax is great and they make it super easy, but you have to pay a fee of around $40 to do your state taxes with them. (Kinda scummy marketing ploy 😑) but the good news is there’s other services like freetaxUSA that are actually free. Hope this helps!
Can you please caption everything you’re saying in the video? Deaf viewer here. I watched the video and a lot of times, you will add one word or two words in the caption, but you’re saying A LOT more than just a few words. Please caption everything you’re saying to make it more accessible for the deaf, autistic, and neurodiverse viewers. Your views will probably go up if your content is more accessible to a wider variety of people. Thank you!
Excellent content this is so needed by so many people thank you maybe you could expand on what it means to “write something off “because I think people get the wrong idea about what that means or maybe I have the wrong idea about what that means anyway thank you
All these items you mentioned for deductions add up to be lower than the standard deductions, I’m still stuck paying taxes every time I file. Can’t catch a break.
Can you write off business expenses as an independent contractor ? I don’t own a business, but I’m about to start contracting with an agency that pays me a flat rate (no automatic tax deduction, no benefits) and I cover all of my expenses involved in working with them
I am following your videos and i don't think you "avoid paying taxes", the only thing you explain is where the taxes are and where is your gain. This is so important. This part of adulthood is the hard one 😅 love your channel
I had a question, I was wondering how I could get into investment banking? I have a B.S in accounting and I’m half way through my MBA in finance. What would you recommend?
There's no such thing as legally avoiding taxes. You either owe them or you don't. The amount you owe depends on what rules you are legally eligible to use to reduce the tax amount.
Wonderful video! Now I finally understand marginal taxes - the pizza analogy was brilliant. One question - can we really deduct membership to Soho House? I’d be really tempted to join if it’s tax deductible, and it would be great for work and networking, but I thought it was considered a social club and not tax deductible.
Oh, come on. If everyone wants to benefit from or use stuff paid for by tax dollars, then everyone should pay their FAIR share of taxes for the good of the country. If I were worth like 2 BN, I'd be more than happy to pay hundred of millions in taxes, because I'd still have more money than I or my great, great, great grandkids can spend. I'd probably give most of it to charity and good causes.
Greed is a terrible societal problem and not to mention stupid and evil. Before this old, decrepit 85-year-old troll became Trump's Commerce Secretary, he ripped off his colleagues over a 100 million dollars just for shits and giggles. Because, hey! why the hell not. He was already worth hundreds of millions, if not billions. Pure greed, evil and stupidity. That might or might not be an extreme example but corporate America is run by narcissists and psychopaths, blinded by greed, driven by pure selfishness and don't want to even contribute a dime to the well-being of the country and the hard-working people they rip-off and fleece.
Careful with that line of thinking. I see some people encouraging others to pay extra taxes or not take any of their deductions. This is tax fraud, just as much as NOT paying your tax bill. It makes your income look artificially higher and deceives mortgage lenders, etc. to make them more likely to give you a loan. Which is illegal, even if that wasn't your intention. So you can't skirt the tax code, even if you're trying to be generous. If you dont like it, lobby to have it changed instead, and in the meantime give to charity or make donations to local projects. I'm not saying that's what you were suggesting, but I have seen people get confused over what's fair and think that legal deductions are somehow cheating the system. So consider this a PSA.
Do you know any professions that follow with these categories or that you can turn into your own small business?/ Tips for a successful small business'. - Gaming - VR - Art Also how should it be promoted ? Currently thinking of doing animate story times (an idea I gave for my s/o to do).
