How To Pay NO TAXES In 2024 (What Nobody Tells You)
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- Опубліковано 8 чер 2024
- Try Rocket Money For Free rocketmoney.com/graham - Enjoy! Here are some strategies you could use to owe less tax in 2024 - Enjoy! (Note: Please check with a professional - every circumstance is different - your situation may change - results will vary) Add me on Instagram: GPStephan
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WAYS TO REDUCE TAXABLE INCOME IN 2024:
1. Traditional 401k Contribution:
This is a tax-advantaged retirement account that allows you to contribute up to $23,000 per year of PRE-TAX money - meaning every $1 you contribute will reduce your taxable income by that very same $1. This way, you show less income, you owe less in tax - and you have more money left over to invest.
2. HSA / Health Savings Account
This account is specifically used to pay for any out-of-pocket medical expenses or charges that you incur throughout your lifetime. You can also invest within the account and potentially grow your tax savings even further - as long as you have a high deductible health plan (you must qualify for this). Contributions are tax-free, and withdrawals are tax-free on medical expenses.
3. Long Term Capital Gains Tax Rate
These tax rates are significantly lower than earned income - In fact, the federal long-term capital gains tax is only 15% if you make between $47,025-$518,000 per year as a single filer…that could lead to MASSIVE SAVINGS for anyone who makes more than $50,000. Some income brackets even pay $0 in long term capital gains!
4. Running income through an S-Corporation or LLC
This is simply a legal entity that you create to run your business through…in essence, all of your “Self-Employed” business income goes into the S-Corp, expenses come out, and then you personally take what’s left over as distribution. Distributions made by an S Corporation are not subject to Social Security or Medicare taxes, which can save you 15.3% on your money.
5. The SALT Cap Workaround
In 2017, the Tax Cuts And Jobs Act limited your deductions on State And Local Taxes. Some states have issued guidance on a “SALT Cap Workaround” to be able to deduct your state taxes in their entirety - saving you a TON of money.
6. Real Estate / Homeowner Tax Benefits:
-The Capital Gains Exclusion.
This allows you to sell your primary residence and pay no tax on the first $250,000 worth of profit if you’re single, or $500,000 worth of profit if you’re married, as long as you’ve lived in that home for at least 2 out of the last 5 years.
-The 1031 Exchange
If you own a rental property, you can indefinitely defer paying taxes when you sell a property, as long as you “exchange” it for another one within a certain time period.
-Depreciation.
According to the IRS, your property has a lifespan of 27.5 years - this means that as the home gets older, it loses value - on paper - that can be deducted from your overall profit. There’s also something called a “cost-segregation analysis” that allows you to take a substantial amount of depreciation upfront.
-Cash Out Refinance
Unfortunately, this one doesn’t make too much sense with mortgage rates as high as they are - but, in the eyes of the IRS, loans you take against assets aren’t “income,” because you technically didn’t sell - and because it’s not “technically income,” you don’t owe any tax.
-Real Estate Professional
In this case, you’d be able to use all of your real estate paper losses to offset your W2 / 1099 income, allowing you to potentially make a lot of money and owe nothing to the IRS. being a “real estate professional” is something that you’d have to be able to back up to the IRS in the event of an audit, and that includes “Spending more time doing real estate activities than all other business activities combined, and spending at least 750 hours per year in real estate.”
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*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice.
Here is a link containing the source material for each piece of research cited. I do my best to make my videos as accurate as I can, and the additional resources should help anyone who wants to look into them further - enjoy! docs.google.com/spreadsheets/d/1xd0I15hFxwiTcqmRYDfXIm1W_wjCEho8rHA9H1W7OQE/edit?usp=sharing
Thank you!!
“Tax evasion is a crime. Tax avoidance is an art.”
I just don't pay my end of year taxes. They take out enough with every paycheck and with what I buy. However I also work for mostly cash and even barter.
@@andrewmagee1666news flash, if you're getting paid under the table, ofc the IRS isn't gonna demand it if you don't report it
@@reyabeja3321 yes believe me I know. Will the government doesn't know.... I'm talking about I haven't filed taxes and I have worked for most paycheck jobs over the last 24 years. 2000 and 2001 I paid heavily into taxes throughout the year, then they said I owed more at the end of the year. That's when I quit filling. They are cool corrupt to citizens it's disgusting.
you work a W2 and dont file? 🤔
@@Brian-cb3ce Yeah. I haven't done a W2 since 2002. I just simply don't see the point. They take enough money.
Hey Graham, I love your videos and have been watching since about 2018. I work in tax and accounting. I am an EA which is an Enrolled Agent. An EA is someone who is enrolled to practice before the IRS. A CPA is licensed at the state level, whereas an EA is at the federal level. I think it is important to not use CPA and tax preparer interchangeably as you don't need to be a CPA to be a good tax preparer. Thank you for posting this video as so many people don't know anything about how to save money with the IRS.
Need to give our EAs more credit
Thanks so much for the clarification!
Riley same! Been watching since 2018 also. Yes totally agree. An EA is someone who specializes in taxes. We spEAk tax. Where a CPA is generally a general practitioner. Might not specialized in tax. I could have sat for CPA but choose to be an EA. I ❤ taxes.
That's super interesting. My mom runs a personal tax business and has her cpa and also paralegal certificate, but she spends a lot of her time advocating tax law to support personal business and spends a lot of time on the phone with the IRS and has talked many times how she should really be an EA but I never understood what that ment until now. Her specialty is taking on clients with personal businesses that did their taxes using turbo tax or other similar services and had to pay a lot in tax usually around 15k. Through itemizing or helping them form an LLC or S-Corp she can often flip it and make it so that they end up getting a small amount of money back. I've asked her why she goes through so much tireless effort considering some of her clients she barters with and doesn't charge nearly what she could. She said that winning against the IRS and seeing the look of relief on a clients face pays for itself and makes her feel like the effort is worth while. I honestly would love to know how many businesses she's single handedly saved in our small town! CPA's and EA's DO NOT GET ENOUGH credit for what they do!
This is what a comment section is for😊
AMS38T will replace Eith in few years. AMS38T the sleeping Giant. its the fastest L1 high-tech PoW Zero Gas-fee chain with 100X potential
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One thing to note with HSAs, the caveat to using it as a retirement account is that it is not protected against bankruptcy like other retirement accounts. Not that one plans on going bankrupt, but its just something to keep in mind for weighing risks. Other than that, its basically the best tax advantaged retirement adjacent account you can get for pre-tax dollars.
One of the biggest problems with an HSA is that people tend to use less healthcare when they have it which results in worse health outcomes.
Thanks, Graham!!! Excellent point AND timing.
Your videos are always so educational and interesting!! Appreciate all the time you put into your videos!
Thanks for the info gram ….always give good information. Hope your having a good day!! Rob from WV
Great video! Some key points were highlighted that I hadn't heard anyone else discuss. Thank you!
I opened up my Roth IRA at 26…turning 27 next month. I know I’m late but it should be 1.4 to 1.7 million by the time I retire!!! Ik I’ll need more to retire BUT one day I’ll get a 401k from work too!!!
man we shouldnt have to work for 45 years just to make that.
I love your analysis, always on the point. And yes, Xeventy is a game changer. Great project!
This video made me subscribe- good stuff Graham🎉 I’ve been watching for a while but this was without a doubt your most informative yet. It seems like most videos today only talk about getting out of pay check to pay check - there’s nothing out there for us who are actually making a substantial amount of money - this one did however so I’m happy
My AMS38T shorts are doing pretty well and I plan to hold much longer.
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stupid bots
I’ve learned the most from this video. Thank you!
Awesome video thanks for sharing these strategies!
the HSA was a game changer for me and is beneficial when having kids. Looking forward to one day starting an LLC
My mission this year is to learn the game of keeping more money in my pocket, thank you for this Graham!
Great Video man, a lot of knowledge
Great high level video, while providing enough nuance. I’m a CPA, and it drives me crazy how much bad tax advice there is on UA-cam.
This was very helpful, Graham. Thank you for your amazing profit. I love watching your videos 🤓
doing all of these, this is good advice!
Great video, informative as always for the youngsters. Tax sheltering is a necessity.
What's up guys have a great day! ❤😊
Thank you for your videos and powerful words! You've helped me a lot! I have already watched every one of your videos and I will gladly watch every your next video!
P.S. Some of your videos I have probably watched more than a 100 times.
My three favorite channels: Graham Stephan, Stock Brotha, & How Money Works. Make my week complete! 🔥 🔥 🔥
bump
Graham, could you do an episode on IUL's? The pros and cons and even how one can use their property(ies) against an IUL? Thanks
Love your videos man, super helpful and motivating
I appreciate that!
You da man Graham
Thank you Graham!
Thanks for the rich infos about tax advices, good to know about all of that,
Love it!!!! Thank you !
Thank you for this video!!!
This is the year we all collectively stop paying taxes. Who’s in 👀
Nah man, i dont need irs to make my life more difficult
@@ji94games that would be the point of all of us stopping at the same time
One of my friends has been on that train for years 😂😂 I ain't messing with uncle Sam.
@@cjhawks1991 we’re not gonna win with this mentality my brethren 🤦♂️
✊🐸
Thank you very much for your work
Great timing Graham! I'd love a video on the right questions to ask a CPA. I've never used one before but this might be the first year that might be worth it for my situation
Second this one!
I am a CPA, and I endorse Graham’s video
Sounds good to me!
My first year getting rid of the HSA, i have maxed it out every year and my wife's health is terrible so there are more visits and stays than i have hoped for.
My previous boss is Mr. Stephan from RHE.
Happy New Year Sir Graham.
Great info ❤
What I’ve never understood is why not everyone will retire in a lower tax bracket. If you’re retired and lose that income, aren’t you in a lower tax bracket? Or are some people going to retire withdraw investments in greater amounts than they used to earn from their jobs?
That is a really good point that I’ve never thought of. I suppose I’ve always assumed that people will take out the money while they’re still working.
When you manage to reach a certain level of wealth, your investments may generate returns which can greatly surpass your job income.
This becomes especially relevant if you’re on the Save Plan for student loans and you have to spend 10% of income after discretionary on student loan payments
Children move out, college tuition is paid for, loans are paid off, house is paid off, … don’t need that large taxable income anymore. Thus move to lower tax bracket
Its based on the potential that taxes may increase in the future.
Another wonderful video!! Great advice! Wish I would have learned this a lot earlier in my financial life! Loved Ms. Stephan!!!!!!! 😆🤣😆🤣
Thank you, I hate taxes.
CPA here! Graham, you’re the man!
Passing this video over to my mother. Thank you
Now we just need to see the AMS38T price also move in the same direction as these charts. Up. Very Up.
Great video
Appreciate your videos Graham. Just started watching Iced Coffee Hour, some of your best work. I've learned a lot from it and actually think it's a unique combination of good entertainment and education.
Hey Graham, I know you've just said on the iced coffee hour about making videos that you think people want to watch and they end up being the videos you make that get way less views... but I think a lot of people could use a guide on how to actually use points and flier miles from credit cards.. I've saved a bunch and never use them because I really don't understand the best way to use them. I feel like I'm not going to get the best deal or gonna use them foolishly. It'd be super helpful to people that have taken your cc hacks advice religiously and now need help using those accumulated points. Thanks Graham!
An awesome idea for a video!
Hi Graham, I really enjoy your videos, you share a lot of great tips and wisdom! However, it is all purely US related, I was wondering if you know anyone who has similar videos with such great content that is Canadian based?
You left in the stumble at the end, best part👍
Great content and great contributing comments! e.g. Had no idea as to what an Enrollment Agent (EA) was until I reviewed the comments section 👍🏼💯
Impressed by Xeventy's commitment to user control and privacy! The decentralized KYC and personal data vault set a new standard for security.
i hate taxes, graham!
My apologies I've watched so many videos I assumed I was subscribed so that request to hit the button actually worked today
Great video Graham! Any professional (CPA, Tax preparer, tax advisor) you would recommend?
Awesome video! You used the term “rental property” for 1031 exchange. I think a better term is “commercial property” since you can do this with a restaurant property or store
As an expert one of the key details I disagree with is the “as soon as possible” with regards to setting up an S Corp. if you set one up and aren’t making enough money it will cost you. I’ve seen it countless times where someone sets one up too soon
I second this! If you’re not making money, you don’t need an S Corp. Plus, most people botch the higher administrative burden and the salary requirements.
Do more content on making videos! And UA-cam in general!!!! Please :D
I’m still interested in what Amazon will do with the AMS38T now .
It raises progressively as you earn in my country, Part of last year I was paying 45% tax, Never going to let it happen again
I would love to have my dividends tax free! Do you have ETFs that follow the dividend strategy with only "qualified" dividends? I can see that REITS are treated as ordinary, but what exactly is qualified other than the companies in the home market?
How do I not get taxed 40% of every paycheck?? All of your tips are for people who have money looking to avoid taxes, how about a tip for someone trying to keep the money they work hard for being stolen by the government?? Investing doesnt help anyone in the present day, sure future self will thank you but thats only if you make it to see your future….Just stirring the pot 👍
Hey Graham, could you go over how to find a good CPA to work with?
Hi graham! How’s your day going?
I wanna make sure i understand. Is a CPA a certified public accountant?
Great info! Real estate has helped me in a big way with reducing my taxable income. The wealthy know how to do this and one of my goals with my channel is, like you, to educate others in the same way! Keep providing valuable content.
Basically be Donald Trump :)
Wage income is earned income and falls within the category of ordinary income. The IRS does not allow us to mix passive losses with ordinary income. So, it is not possible to offset ordinary income with rental property losses.
Part of a very important coin been talked about in the BCL
Been a fan for years and have learned a lot. is it possible for you to do a video on how to invest in the stock market if you dont live in the US?
muito bom o video!!
I enjoyed the solar video
I’d love to see more of an explanation of that tax wedge stat
Do you have any tips for those retired living on SS, pension, and IRA payments?
My top pics for this bull run: Trias, Verasity and Xeventy
Hey Graham, Can we use the losses as a real estate professional against the W2 even if those losses are coming from long term rentals?
First off, if you have rental losses, I would really suggest working with a qualified tax preparer. Second, if you qualify as a real estate professional, the losses from your long term rental are no longer limited per se, assuming you materially participate. These rules are quite complex and easily messed up. Short term rentals negate the need for “real estate professional status”.
You should do a series of shows on how to find a good CPA.
Word of mouth is amazing!
Hi graham, how would one provide you info on the worlds best affiliate program? FYI, I’m local here in Vegas (If that matters at all😁)
Capital gains (short-term) is considered earned income - is that right? I mean, it's taxed at the same rate as earned income but is it considered earned income?
Good info Graham. Btw, the visual on depreciation shows 250k. It should show 275k.
Still liking!
Thanks!!
I'm still confused about the S-corps but I'll ask my CPA about it thanks
Just pay u a income
I hate taxes. Avoid it as much as possible! 30% on taxes is crazy
What about writing off your interest on your home mortgage?
SAVE YOUR MONEY
Hey, this is off-topic, but as an 18-year-old should I invest in an index or mutual fund?
Great video, Graham!
I just noticed that your graphic shows $250,000 but pretty sure you meant $275,000 since you verbally mentioned it. 😀
Does TurboTax automatically recognize the 401(k)? And the HSA hacks mentioned in the video?
What is the best strategy for a W2 employee to reduce their taxable income?
Hey Gram I’m a big fan and I love the videos. How can I find a good CPA? In Fresno Ca. Please
REVIEW ON THE NEW ACORNS DEBIT CARD ?
@graham Stephan - You said you will answer comments so here we go.
How about a video on how to find a good CPA regardless of what state you live in.
Depreciation - does it apply to primary residence?
The spam is crazy at this point. UA-cam really needs to do something, every single comment section is terrible with bots
Where is the credit cards of the year video at❗️
Hey Graham, just a heads up. There's an error in the video under the depreciation section. You stated $275k but the graphic shows $250k/27.5 yet still equaling $10k/year. Just figured I would flag this in the event you'd want it corrected.
Some companies offer HSA options as well
Talk about curing age please
For high income individuals, like say a surgeon who is paid by a university, how would you structure that into a business?
Is the surgeon employed by the university, and is being a surgeon for the university the only source of income. If that’s the case I don’t think that’s possible.
When's the next portfolio review?
What about interest on CD's?
Do you have, or can you do a video on the self directed or solo 401k's for us self employed folks?