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The Tax Geek
United States
Приєднався 20 гру 2020
Tax knowledge in a simplified format designed for ordinary humans to understand.
The Tax Geek is an Enrolled Agent with over ten years tax preparation experience. He has also taught continuing education classes for other tax professionals.
Note: This channel is for educational and informational purposes. It is not intended to render tax advice for specific situations. If you have concerns about your individual tax situation, please engage a qualified tax professional.
The Tax Geek is an Enrolled Agent with over ten years tax preparation experience. He has also taught continuing education classes for other tax professionals.
Note: This channel is for educational and informational purposes. It is not intended to render tax advice for specific situations. If you have concerns about your individual tax situation, please engage a qualified tax professional.
Saving for college the tax free way with a 529 plan.
Saving for college can be a challenge with a traditional savings or investment account since a significant portion of the earnings on the account is eaten up in taxes on the investment income. A 529 Plan (known officially as a Qualified Tuition Program), allows you to put money aside and generate tax-free earnings for future education.
This video goes over what a 529 Plan is, how it works, and pitfalls to avoid to get the maximum benefit out of the plan.
0:00 Introduction
0:43 What are 529 Plans?
1:43 How 529 Plans work
3:52 529 Plan distributions
5:44 Plan strategies
6:59 Conclusion
If you'd like a refresher as to how a Roth IRA works, click here: ua-cam.com/video/U7gQBmIu2HA/v-deo.html
To learn more about the American Opportunity Credit, click here: ua-cam.com/video/MCXmPbkgDdI/v-deo.html
Resources and additional information:
IRS Publication 970: "Tax Benefits for Education": www.irs.gov/pub/irs-pdf/p970.pdf
IRS Form 1099Q: "Payments From Qualified Education Programs": www.irs.gov/pub/irs-pdf/f1099q.pdf
finaid.org: "Section 529 Plans": www.finaid.org/savings/529plans/
finaid.org: "State Section 529 Deductions": www.finaid.org/savings/state529deductions/
The Tax Geek on the Site Formerly Known as Twitter: @taxgeekusa
The Tax Geek on Reddit: www.reddit.com/r/askataxgeek
Image and footage credits:
Storyblocks.com
Wikimedia Commons
The images of the "owner" and her "beneficiaries" were generated by thispersondoesnotexist.com (stability.ai) and any resemblance between these images and any person, living or dead, is coincidental and not intentional.
*NO OTHER ARTIFICIAL INTELLIGENCE WAS USED TO WRITE, EDIT, ANIMATE, VOICE, OR EDIT THIS VIDEO*
Intro Music: "Bluesy Vibes" - Doug Maxwell - UA-cam Creator Music
Outro Music: "Modern Attempt" - Track Tribe under license from UA-cam Creator Music
DISCLAIMER: This video is for educational and informational purposes only. It is not intended to render tax advice or financial advice for individual situations. If you have questions regarding your particular situation, please consult with a qualified tax or financial professional.
This video goes over what a 529 Plan is, how it works, and pitfalls to avoid to get the maximum benefit out of the plan.
0:00 Introduction
0:43 What are 529 Plans?
1:43 How 529 Plans work
3:52 529 Plan distributions
5:44 Plan strategies
6:59 Conclusion
If you'd like a refresher as to how a Roth IRA works, click here: ua-cam.com/video/U7gQBmIu2HA/v-deo.html
To learn more about the American Opportunity Credit, click here: ua-cam.com/video/MCXmPbkgDdI/v-deo.html
Resources and additional information:
IRS Publication 970: "Tax Benefits for Education": www.irs.gov/pub/irs-pdf/p970.pdf
IRS Form 1099Q: "Payments From Qualified Education Programs": www.irs.gov/pub/irs-pdf/f1099q.pdf
finaid.org: "Section 529 Plans": www.finaid.org/savings/529plans/
finaid.org: "State Section 529 Deductions": www.finaid.org/savings/state529deductions/
The Tax Geek on the Site Formerly Known as Twitter: @taxgeekusa
The Tax Geek on Reddit: www.reddit.com/r/askataxgeek
Image and footage credits:
Storyblocks.com
Wikimedia Commons
The images of the "owner" and her "beneficiaries" were generated by thispersondoesnotexist.com (stability.ai) and any resemblance between these images and any person, living or dead, is coincidental and not intentional.
*NO OTHER ARTIFICIAL INTELLIGENCE WAS USED TO WRITE, EDIT, ANIMATE, VOICE, OR EDIT THIS VIDEO*
Intro Music: "Bluesy Vibes" - Doug Maxwell - UA-cam Creator Music
Outro Music: "Modern Attempt" - Track Tribe under license from UA-cam Creator Music
DISCLAIMER: This video is for educational and informational purposes only. It is not intended to render tax advice or financial advice for individual situations. If you have questions regarding your particular situation, please consult with a qualified tax or financial professional.
Переглядів: 288
Відео
SIMPLE Retirement Plans for small business
Переглядів 13021 день тому
In addition to the SEP, small business owners can establish Savings Incentive Match Plans for empLoyees of small Employers, or SIMPLE Plans, to help themselves and their employees save for retirement. Despite the name, these plans are less simple than the SEP, in that they allow employees themselves to contribute to their own retirement accounts, in addition to the employer. 0:00 Introduction 0...
A beginner's guide to Simplified Employee Pension Plans (or SEPs)
Переглядів 194Місяць тому
Many small business owners want to save for retirement for themselves, and help their employees save for retirement as well. Rather than going through the involved (and sometimes quite expensive) task of setting up a 401(K), small business owners can take advantage of one of two different plans the IRS offers that are easy to set up and administer. This video explores one of these plans: The Si...
Underpayment penalties: How to avoid them and how to calculate them.
Переглядів 368Місяць тому
If you have a sufficiently large balance due when you file your return, your balance due may also include a penalty for not having enough taxes withheld or making estimated payments. "Oversimplifying" Underpayment Penalties turned out to be a daunting task. This simple concept is surprisingly complex in execution, and most people let either the IRS or their software or preparer calculate them p...
Tax Geek ALERT: How to spot a FAKE "IRS Letter"
Переглядів 7252 місяці тому
Now that scammers are having far less success with IRS scams involving phone calls, text messages, and e-mails, sophisticated scammers are now sending letters to people that people could easily mistake for actual IRS notices. This video tells you how to spot counterfeit letters, what would happen if you responded to the letter by telephone, and what to do if your receive a notice you believe is...
Claiming Scholarships as Income (to get an Education Credit)
Переглядів 5962 місяці тому
If you're a student, or the parent of a student, you might not think you're eligible for an education credit if the scholarships shown on your 1098-T exceed the tuition payments received by the university. However, with a certain type of unrestricted scholarship, a student can declare some of it as income and claim an education credit after all. This video describes how this is done and gives a...
How to fill out Form W-9
Переглядів 2,2 тис.3 місяці тому
If you've ever worked for someone as an independent contractor, opened a bank or brokerage account, sold real estate, or applied for a mortgage, you've seen Form W-9, which is used by businesses to collected Tax Identification Numbers to either report income (or potential deductions or credits) to the IRS. Despite a recent revision of this form by the IRS, there are still areas of confusion whe...
Royalties: What they are and how they are reported and taxed.
Переглядів 7043 місяці тому
When someone makes money from the use of your tangible or intangible property you receive taxable royalty payments. This video explores the two different ways royalties can be treated for tax purposes, and shows you how to report royalties that are not specifically related to business income. To learn more about Self-Employment Tax, click here: ua-cam.com/video/JQwyHiYR9vs/v-deo.html For more i...
The Basics of Beneficial Ownership Information Reporting
Переглядів 9714 місяці тому
Recent Federal legislation requires all businesses that are organized as corporations or LLCs to file a Beneficial Ownership Information Report, or BOIR, with the Treasury Dept.'s Financial Crimes Enforcement Network, or FinCEN. This video goes into the rationale for the BOIR, who has to file one, the information required, how to file the report online, and the deadlines for filing the report. ...
Is my Settlement Taxable?
Переглядів 7704 місяці тому
If you're on the receiving end of a court awarded judgment or negotiated settlement, you might be wondering if that incoming cash is taxable income. As usual, it's a bit complicated. This video tells you what types of settlements are taxable and which are not. It also goes over how you report taxable settlements on your tax return. 0:00 Introduction 1:22 Non Taxable Settlements 2:32 Taxable Set...
The Standard Deduction for Dependent taxpayers
Переглядів 1,1 тис.5 місяців тому
The Standard Deduction for most people is relatively straightforward, but for taxpayers who are the dependents of other taxpayers, calculating a Standard Deduction is more involved, and can depend on the nature of the dependent's income. This video presents the rules for calculating a Standard Deduction for a dependent taxpayer, and gives examples of how it's calculated. 0:00 Introduction 0:27 ...
Your taxes: Putting it all together on Form 1040
Переглядів 1,4 тис.5 місяців тому
I've talked a lot on this channel about where things go on your Form 1040, but I've never really discussed the form itself. This video presents the Form as a whole, and reviews how to fill out the Form, and the role the Form has in reporting and computing your taxes. There are also references to several other videos on this channel, giving more information on the items reported on the form. I a...
The Additional Medicare Tax
Переглядів 1,1 тис.6 місяців тому
The Additional Medicare Tax is yet another tax imposed on relatively high income taxpayers. Instead of being levied on investment income, like the Net Investment Income Tax, the Additional Medicare Tax is imposed on wage and self-employment income. This video defines how the Tax works, who is liable for paying the Tax, Additional Medicare Tax Withholding, and how to properly report Additional M...
What's new and what's changed for 2023
Переглядів 1,8 тис.6 місяців тому
For most taxpayers, the tax law won't change much except for amounts that increase annually with inflation. However, if you've purchased an electric vehicle or made energy saving improvements to your home, new provisions of the Inflation Reduction Act could apply to you. This video reviews these changes, and a few more. It also tells you where to find additional information on these and other c...
Claiming the Clean Vehicle Credit Using Form 8936
Переглядів 15 тис.6 місяців тому
If you've purchased a new or used electric vehicle in 2023, you could be eligible to claim the Clean Vehicle Credit. This credit was described in an earlier video, but since that video was published, the IRS has produced a draft version of the revised Form 8936 needed to claim the credit. This video reviews the basics of the Credit, and demonstrates how to claim the credit on Form 8936 using ex...
The Residential Clean Energy Credit
Переглядів 2,3 тис.6 місяців тому
The Residential Clean Energy Credit
The Energy Efficient Home Improvement Credit
Переглядів 8 тис.6 місяців тому
The Energy Efficient Home Improvement Credit
The Student Loan Interest Deduction
Переглядів 1,6 тис.8 місяців тому
The Student Loan Interest Deduction
The Qualifying Surviving Spouse Filing Status
Переглядів 1,6 тис.9 місяців тому
The Qualifying Surviving Spouse Filing Status
Making Estimated Payments (or not!)
Переглядів 1,1 тис.11 місяців тому
Making Estimated Payments (or not!)
State EV Purchase Incentives (2023 Edition!)
Переглядів 1,4 тис.Рік тому
State EV Purchase Incentives (2023 Edition!)
The Clean Vehicle Credit (for 2023 and forward)
Переглядів 1,7 тис.Рік тому
The Clean Vehicle Credit (for 2023 and forward)
Did the IRS take YOUR refund to satisfy your SPOUSE'S debt? (The Injured Spouse Allocation)
Переглядів 1,8 тис.Рік тому
Did the IRS take YOUR refund to satisfy your SPOUSE'S debt? (The Injured Spouse Allocation)
Hi me again😂. Video on backdoor IRA. Estrella -
I presume you mean a "backdoor Roth." I've added it to the list!
@@TheTaxGeek Yes....
As a sole proprietorship with just an EIN would you need to file for a BOIR? Also, if you register for a DBA with the state do you have to file for a BOIR???
Only if you have created an entity, such as an LLC or Corporation, is there a BOIR requirement. There is no requirement for simply having a DBA registered with the state or local government.
perfect explanation
oh, yeah, I know them...Rob and Laura Petrie of New Rochelle, New York...I enjoyed their TV program back in the 60s! 😂
That's what I was looking for. As a foreigner, it's really hard to understand pre-tax deductions and withholding taxes. Thank you very much.
God bless America 🇺🇸
Okay God bless you sir
Thank you I’ll represent myself thank you
Jesus help me please ✝️🕊️
I did this all
It’s been years of torture and no help I’m just leaving things in Gods hands at this point
What if you become a business that gambles for profit, is there such a thing?
Oh wow. Standard mileage is completely useless then because the commute can a huge portion of the mileage. If I’m already paying around 30 cents per mile to drive my truck, then add insurance, repairs, etc., I’m at 40 -50 cents per mile. I’ll just keep it simple and deduct my expenses. Thank you for the video.
Even if you claim actual expenses for the vehicle, you still have to track business v. personal mileage. That creates the fraction of your actual expenses you can deduct.
@@TheTaxGeek hey there. Thank you for responding. My question would be is the “commute” portion always to be accounted for as personal travel? Even when you’re not using the standard mileage rate?
Is it different in AZ because they have not honored my form for 11 years.
Arizona is a community property state and your income, deductions, withholdings, and credits (except EIC) are shared 50-50. IRS rulings and procedures are very complex, as are the community property laws of each of the nine states that are community property states. It's usually best to consult with a qualified Tax Professional in your community to make sure everything is submitted properly.
Great Video! THANK YOU!
You're very welcome!
Leave it to the government to make retirement as complicated as humanly possible.
Thank you for the earned income
Hey awesome! Will give you more suggestions 😉😉. Estrella-
Thanks!
Hooray for Secure Act and The Tax Geek! Best tax videos on earth!
*blush*
Good video. What do you do regarding receiving a partial distribution from a will of a deceased sister? The amount is 50k. Is it taxable on both Massachusetts state tax and IRS also. Thanks in advance. Love your show and just subscribed with Like.
Well, it depends. If the estate is passing through to you income that would have been taxable to the decedent then it would be taxable to you.. If it's taxable, the income will be reported to you on either a Schedule K-1 or a 1099R. A straight money or property inheritance is not taxable to you. If it's taxable to the Federal government, it most likely is taxable to Massachusetts. Although I don't know the detailed ins and outs of Massachusetts income tax. For more information on how death affects taxes, you might want to check out this video: ua-cam.com/video/pIi_kohV8uI/v-deo.html
I didnt know you could convert the balance of a QTIP to a Roth IRA. I really love these pockets of info you through into the mix! Another video well worth the wait
Being able to convert a 529 account into a Roth IRA is new for this year so it's not widely disseminated. Thanks as always for your support of the channel.
❤
I plan to install mini split system in my home, but now I’m thinking of spreading out the installation across two years to claim the credit twice. I would install one now (heat pump + air handler) and the other (air handler only) in 2025. Is that allowed?
It certainly is allowed, and can be a good strategy, especially since heat pumps have a higher annual limit.
@@TheTaxGeekthanks for the info! This is great news! I wasn’t sure if adding the additional air handler (wall unit) only, connected to the existing heat pump condenser, in 2025 qualified for the tax break again.
Can you deduct something that was purchased 5 years ago but not put in service until current year?
You can. If the asset has never been used for any purpose (business or personal), you should be able to use the original purchase price as the basis. If the asset has been used and converted from personal use, the basis is either the original cost of the asset or its Fair Market Value, whichever is lower.
Top of the morning coach and happy father's day
I'm not a dad, but I appreciate the sentiment.
❤
Thanks as always for your continued support
Exactly how to opt in section 179 on the tax form? Thanks!
The property is listed in part I of form 4562.
Car depreciation also use both Mid Year and Mid Quater timing? The day the car is put to service. Gees so complicated, thank you.
Mid-quarter depreciation is used when 40% of the value of assets are placed into service are placed in service curing the last three months of the year. It can apply to automobiles, just like most other assets. When mid-quarter convention is required, all assets with the recovery period of the assets placed in service late in the year must use the convention. Yes, it is confusing, but a video will be forthcoming.
Really appreciate you show various situations. Thank you! Please share more examples for learning purpose?
I have been considering making supplemental videos for certain concepts with additional examples, so thanks for the suggestion.
Gotta love BiggFatt Brokerage!
What happens if you sell rental property where you end up with a loss for the year (and there are carried through losses from prior years)? Can it be used to offset other income or factored into calculating the capital gains on the sale?
Yes. Whenever you dispose of a passive activity with accumulated losses, you get to take all the losses and use them to offset other income. It reduces your taxable income, but it is not directly offset against the capital gains.
I see thank you.
Days like this (seeing a new Tax Geek Video) remind me what life is all about😅
I'm glad I made your day better!
OMG, this is on my CPA TCP exam!
It was my understanding that the secure act 2.0 allows for SEP ROTh IRA contribtuions, I know that the employer isn't required to offer it, but I thought it was now an option. Please correct me if I'm wrong. Thank you.
It took a bit of research, but yes, an employee can designate the employer contributions to a SEP- or SIMPLE-IRA go to a Roth Account. However, since the employer still deducts the contributions as a business expense, the IRA administrator will send a 1099-R for the amount of the contribution to the employee, who then reports it as income.
@TheTaxGeek Thank you for the clarification! Awesome content, and thanks for providing it.
This shows how much trouble this country is in when you have to pay taxes before you get the actual income. "Estimates" stink. Does anyone even know how much money the IRS collects each year from interest and penalities because most people can't figure out how much they owe in estimates?
Certainly not me. But what I really find astonishing is the insane number of calculations it takes to arrive at the penalty.
Hi have another suggestion 😊 529 plan!
Good suggestion. Added it to the list. Look for it soon!
Does your employer have control over the amount of deduction from each pay period...
Something doesn't add up
Thank you for clearly explaining deductions... Could you explain how deductions are determined based on the gross amount of each pay period . Does the deduction increase if the gross amount has increased Or should the deduction be consistent from each pay period? Ex.) Hrs wrk: 143hrs worked pay period x $24 per hr. = $3432 Should the YTD match the current deductions Thank you
Your employer deducts Federal (and State) income tax from your pay based on the information you provide when you fill out your W-4. Your employer has no say in these deductions--they (or more likely, their computers) calculate the deductions based on formulas or tables the IRS provides. If you have the same gross pay each pay period, your tax deductions of all sorts (Federal and state income tax, and Social Security and Medicare taxes) should be the same.
Great video
Thanks!
A taxpayer acquires a $30,000 passenger car in 2018 for use in their trade or business. The car is bonus eligible and the taxpayer does not elect out of bonus depreciation. The applicable convention is half-year and the automobile is used 80% for business. What is the 2018 depreciation deduction?
It would be the bonus depreciation limit for 2018 of $18,000 x .80, or $14,400
Type in ex irs agent tells it like it is.
Love you over simplified videos - Tax Geek . Hats off !
Thanks!
❤
Hi tax geek. Do you have a socials that I can communicate directly if i have some question?
You can e-mail me at taxesoversimplified@gmail.com. I am also on "X" @taxgeekusa and on Reddit /r/askataxgeek, but I don't check them as often as I should.
Sooo 100k people dont get it
Your video was very helpful in better understanding the confusing shifts from line to line and how they apply to the various long-term capital gain tax rates. Thanks!
If I rent my house but I've done work to my home. Can I qualify for energy credit
No. You must own the home.
If you want to make quarterly payments based on 100% of your previous year (to avoid a penalty), is it 100% of what you owed (line 37)?
You can do that if you believe that your withholdings are going to be similar to last year. You must prepay what is on line 24 of last year's 1040, whether it's through withholding or estimated payments.
@@TheTaxGeek - Thank you very much!
Hello. Great video BTW. Why did you use dependent child? In you example: Janet is not a Qualifying Child because of age (she is not a full time student). So she is a Qualifying Relative in this case. That is why we have to look at her income. Is it correct to use Qualifying person definition? To be a Qualifying Surviving Spouse, you need to have Qualifying person except income test? I ask, because instruction for 1040 uses dependent child as well. It's confusing.
The only relationship that you can use to claim Qualifying Surviving Spouse is that of child. This can be your dependent child, or a child that would have been your dependent, except the child didn't meet the income test to be a Qualifying Relative.
@@TheTaxGeek you mean child as child/ stepchild/adopted child? My logic: 1. Is the person is a child/ stepchild/adopted child. Yes in your example 1. Test for Qualifying Child. Your example Janet didn't pass the age test so next to test her on Qualifying Relative 2. She could be a Qualifying Relative but she didn't pass the income test 3. Income test is an exeption for Qualifying Surviving Spouse 4. Check her if she a dependent (SSN/resident). Yes, because income test is an exception and she can file join return. So in you example Janet is a Qualifying Relative and dependent. Is it correct?