Tax Brackets Explained For Beginners in The USA

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  • Опубліковано 24 гру 2024

КОМЕНТАРІ • 520

  • @clearvaluetax9382
    @clearvaluetax9382  Рік тому +1

    Join our EXCLUSIVE Investing Community at: ClearValueInvesting.com
    GET 3 FREE STOCKS when you open up a stock account here: a.webull.com/i/ClearValueTax

    • @dadirmirir4301
      @dadirmirir4301 3 місяці тому

      I have question please if i made 120k how much tax should i pay

  • @clearvaluetax9382
    @clearvaluetax9382  Рік тому +108

    Just to clarify because some people are confused and they're saying that I did not mention "the standard deduction". This video is about how "tax brackets work", not about "how taxes work". The starting point for tax brackets is "taxable income" not gross/total income (total income minus deductions = taxable income). I will make a video about "how taxes work" in addition to this video about "how tax brackets work".

    • @deshawnthompson5592
      @deshawnthompson5592 Рік тому +1

      Hey Brian if you are living in the same house with your wife and no children is it legal to do married filing separately.... can you please make a video on that?

    • @me-necryptops4904
      @me-necryptops4904 Рік тому +1

      Can you explain this. I have a friend whom pays no taxes on her check for 3 months gets all her income earnings and than goes back on deductions on her income

    • @clearvaluetax9382
      @clearvaluetax9382  Рік тому +1

      @@deshawnthompson5592 Yes, you can Deshawn.

    • @franchello1105
      @franchello1105 Рік тому +1

      @@deshawnthompson5592 why would this be better than married filing joint?

    • @marjoriecoleman8280
      @marjoriecoleman8280 Рік тому +1

      Hi Brian, Kristyn Alexis sent me to your channel. Thanks for the break down and explanation. It was very simple and easy to understand! ❤️

  • @yoddy0
    @yoddy0 Рік тому +171

    I as a 22 year old student had to teach my parents that not all the money gets taxed at the same rate. This stuff is so crucial to know.

    • @clearvalue23
      @clearvalue23 Рік тому +2

      ⏫⏫

    • @anthonystone2089
      @anthonystone2089 Рік тому +8

      Now you can just send people this video and save yourself some time and energy.

    • @Mattlott222
      @Mattlott222 11 місяців тому

      It's a huge blow for me getting into that 22%.
      On top of all the other taxes/deductions I get close to 30% total taken from me.

  • @nanbolz2238
    @nanbolz2238 Рік тому +18

    YOU have the BEST and CLEAREST explanation so far.

  • @CaseyBurnsInvesting
    @CaseyBurnsInvesting Рік тому +38

    I have too many people saying they don’t want to work overtime because it will raise their taxes. Thanks for the evergreen breakdown.

    • @Tien1million
      @Tien1million Рік тому +3

      The hours you worked overtime do have a higher tax rate.
      *This statement is wrong, after further research.*

    • @funtechu
      @funtechu Рік тому +4

      @@Tien1million No they don't. They may be withheld at a different rate, but they are still taxed as ordinary income. So if they are withheld at a higher rate you would just get the money back at tax refund time (or you could adjust your W4 witholding if you don't want to wait).

    • @funtechu
      @funtechu Рік тому +6

      I genuinely wonder how much productivity nationwide is being lost because of people not understanding their taxes.

    • @robles100
      @robles100 Рік тому

      Isn't that dumb?
      It is just annoying to hear people always winning about not wanting to work overtime because of the higher taxes they would have to pay.

    • @Tien1million
      @Tien1million Рік тому +3

      @@funtechu Guess I'll need a new tax guy, because I never got any of those tax back. Every time I work overtime my paycheck show I'm at a higher bracket. When I was doing 12-16 hours day my pay was not twice as much as when I was doing 8. Wasn't worth it, I can stay a little frugal and have way more time with family and friends.

  • @TampaTec
    @TampaTec Рік тому +2

    I just watched Brian's latest video. Our social security retirement that we were taxed every year gets taxed too. So we have to literally pay taxes on the same money that we already paid tax on 🤯. These Politicians are sneaky 🤦 Brian, did I sum that up correctly?

    • @fr9714
      @fr9714 29 днів тому

      No. The social security is taken out pre tax from your paycheck. You pay tax on withdrawals which is the first time you’re paying tax on it.
      It’s called social security taxes but the amount is pre tax removal from your paycheck.

  • @christopherc.taylor339
    @christopherc.taylor339 Рік тому +16

    This was unbelievably simple and easy to understand. I just did the numbers on MY own and got the same breakdown. I cannot wait till your "How Taxes Work" video releases! Thank you!

  • @bvu1887
    @bvu1887 Рік тому +4

    Thank you so much Brian, been following you for 2 years now and I have learned so much from you than my 16 years of schooling.

  • @A2Trading777
    @A2Trading777 Рік тому +109

    Thank you sir for your wise choice in teaching the masses about things basic school dosent.

    • @onlyyou200548
      @onlyyou200548 Рік тому +1

      because a decent highschooler knowing how to multiply should be able to look this up. School should not teach everything.

    • @atc562002
      @atc562002 Рік тому +3

      @@onlyyou200548 your wrong, why not teach it in school?

    • @4thgradedropout980
      @4thgradedropout980 Рік тому

      Whichever school each of you attended apparently did not teach basic tax code OR grammar. Poignant remarks marred by poor spelling and shoddy grammar.

    • @bigwilly43729
      @bigwilly43729 Рік тому +1

      @@atc562002 Because learning how percentages work is more important. If they can't do that, then this information is useless.

    • @zackwoodd4606
      @zackwoodd4606 Рік тому +1

      ​@bigwilly43729 I love when people try to justify public schools teaching nonsense rather than useful knowledge simply because "they can't teach everything." But when parents pay hundreds out of pocket every year for school, and most school systems have very generous budgets, they suitor be taking care of everything the kids need to learn but they don't

  • @funtechu
    @funtechu Рік тому +32

    Good breakdown. One other thing that people are often confused about is they think "taxable income" is the same as your income. However, your taxable income is after either your itemized deductions or standard deduction is subtracted. So effectively at least the first $12,500 of your income is taxed at 0% which means your effective tax rate is even lower.

    • @pooh4519
      @pooh4519 Рік тому +1

      Thank you for adding this.

    • @snaxicakes
      @snaxicakes Рік тому +1

      I was wondering about that!

    • @clearvaluetax9382
      @clearvaluetax9382  Рік тому +14

      Hi Caleb, this video is about tax brackets, not "how taxes work". The starting point for tax brackets is "taxable income" not gross income. I will make a video about "how taxes work" in addition to this video about "how tax brackets work".

    • @funtechu
      @funtechu Рік тому +5

      @@clearvaluetax9382 Yeah no worries. Just pointing out that a term like "taxable income" that us CPAs and tax professionals take for granted is opaque to people who don't understand the distinction.
      Keep up the good work!

  • @cherryboo043
    @cherryboo043 Рік тому +7

    Thank you for this. I hope ppl that didn’t understand this before now will. I’ve heard ppl refusing raises or overtime bc they were afraid it would put them in a higher tax bracket.

  • @reread2549
    @reread2549 Рік тому +22

    Thank you for clearly and concisely explaining tax income brackets.

  • @kendraylscott2748
    @kendraylscott2748 Рік тому +26

    Thank you for breaking this info down in layman's terms for us Brian. You really are a God send bro. We need more ppl out here like you that are willing to help all of us lesser guys out. I watch almost every video you put out. Thanks for keeping us informed. We really appreciate it. 🤜🏿💥🤛🏿💯✌🏿

  • @freedomchannel6416
    @freedomchannel6416 Рік тому +2

    Great video... last year, I went to fill out my 2021 taxes, and the person who did it never sent it to the IRS. They played me and charged me $800.00, which was something like the movie boiler room. Be careful with whom you do your taxes.. IRS sent me a letter saying that I old $ 29,000 .. last week I went to another tax guy and he told me why irs is charging me that money, well he filled out my taxes again and I only old $9,000 he explained to me the tax bracket system.... I'm an Uber driver, thanks God, I have the money saved to pay the IRS!

  • @allyeee
    @allyeee Рік тому +1

    Thank you, I am currently doing math business and crying because I could not understand :(
    Your video is the easiest explanation... and wow do people have it so wrong. THIS NEEDS TO BE TAUGHT TO EVERYONE.

  • @lrobbins4720
    @lrobbins4720 Рік тому +12

    Awesome job explaining to people that didn’t have this information! Have a great day Everyone!!!

  • @VoquonCarter
    @VoquonCarter День тому

    This was very helpful; I was doing a tax problem and got confused on how they made their numbers. This made better sense to me.

  • @mangoelvis1032
    @mangoelvis1032 Рік тому +13

    These short and basic videos are awesome! Make more please

  • @alishad2666
    @alishad2666 Рік тому +5

    You’re such a great teacher. I swear whenever you say have a nice day it warms my heart 💛 thank you for all of the content that you push out on a regular basis. It’s much appreciated!

    • @thesam7665
      @thesam7665 Рік тому

      Yep he could definitely rock it as university professor👍

    • @dontbeahypocrit
      @dontbeahypocrit 11 місяців тому

      Someone's looking for after school credit 😂😂

  • @shaunlapointe5089
    @shaunlapointe5089 Рік тому

    I love how you explain things. I don't care if I didn't get it before for whatever ignorance I have, like Tony Little YOU break down the steps and I just get it..Cheers boss

  • @rlg222
    @rlg222 Рік тому +3

    I just got educated. Makes me think at one time I thought the flat tax was a good idea...Thanks Brian

  • @Chrispitos
    @Chrispitos Рік тому +18

    Wow thanks for this, I was taught that the wrong way you mentioned…. Thinking I didn’t want to go to the next tax bracket 😓

  • @marcoshuerta7255
    @marcoshuerta7255 Рік тому +12

    Brian, thank you for always delivering clear and concise overviews of our current economy and other personal financial talking points.

  • @IamtheGL
    @IamtheGL Рік тому +11

    Thank you for the upload Brian, you're always making sure we're well informed!

  • @g.pimentel1195
    @g.pimentel1195 Рік тому +3

    I am no expert, but "to be fair" the flat-tax system without deductions and loopholes should be the way to go. But, politicians will never go there. Great stuff like always!

  • @wesjay7780
    @wesjay7780 Рік тому +6

    This video was awesome! Well-crafted, and thought-out; it was cool that you added in the animations to display the information.

  • @mathebulamkhize876
    @mathebulamkhize876 Рік тому +94

    Is this a good time to buy stocks? I know everyone is saying stocks are at a discount and all, but just how long will It take for us to recover, obviously there are strategies to manoeuvre in this present market but these strategies doesn't come common to the average folk, or am I better off putting my money elsewhere?

    • @stjepanhauser7595
      @stjepanhauser7595 Рік тому

      @Scott Johnson Think you could recommend this coach that guides you, I've been looking intoo advisors myself and I'd really need guidance to scale through

    • @stjepanhauser7595
      @stjepanhauser7595 Рік тому

      Thank you for sharing; I just Googled his name and his website came up right away. It looks interesting so far. I'm going to book a call with him and let you know how it goes.

    • @joseheredia9275
      @joseheredia9275 Рік тому

      @@stjepanhauser7595 be careful with youtube comments suggesting advisors. Most of them are bots leading you into scam sites...

    • @sonney8899
      @sonney8899 Рік тому

      @Belinda Rupp how much does it cost to hire someone like this?

  • @OneJuanWon
    @OneJuanWon Рік тому +5

    Best explanation of how tax brackets are structured - easy to understand and concise.

  • @traviswilkes6995
    @traviswilkes6995 Рік тому +1

    Great video man so many people are wrong about this!

  • @GoGeoGo
    @GoGeoGo Рік тому +3

    Teaching me more than high school did. Thank you.

  • @bonnirose7479
    @bonnirose7479 Рік тому +3

    Very helpful! I thought all income is taxed on the highest bracket within my total income. Thank you so much. 🙂

  • @onefixitman
    @onefixitman Рік тому +1

    I never understood this. Great video. Thank you for taking the time to make all these videos to help us make smart decisions.

  • @donnaolson5717
    @donnaolson5717 Рік тому +1

    Another great video that simplifies financial information. The kids ask me and I try to explain and I think I just make it too complicated and they walk away more confused than when they asked the question. Awesome job!

  • @320mkg
    @320mkg Рік тому +1

    You are doing the lord's work! I gave up trying to explain this to people years ago.

    • @pooh4519
      @pooh4519 Рік тому

      God doesn't pay taxes.

  • @sallykayekaufman5119
    @sallykayekaufman5119 11 місяців тому

    Thank you! Using your video for my personal finance unit on taxation. Then we will go to the IRS "Understanding Taxes" simulations (even though they are old and could use an update).

  • @MT_454
    @MT_454 Рік тому +4

    I was confused about this year about filing jointly or separate, but this mostly explains everything, you’re the man 🅱️rian!

  • @michellejackson7293
    @michellejackson7293 Рік тому

    Brian the info you give the world is priceless

  • @deborahdapo3210
    @deborahdapo3210 Рік тому +2

    Thank you Brian for all the great info.

  • @happystar2058
    @happystar2058 Рік тому +2

    Thanks Brian, I'll share the info to my brother 🙂
    Have a nice weekend everyone

  • @opinionguyopinionguylast3104
    @opinionguyopinionguylast3104 Рік тому +2

    Now I get it. Thanks Brian. You’re da man

  • @daveswish6934
    @daveswish6934 Рік тому +1

    Great video and yeah I agree with someone below suggesting you make a video filing single ,married or head of household within these brackets. Thanks for the content.

  • @kdefensemartialarts8097
    @kdefensemartialarts8097 Рік тому +2

    Thank you for your videos.

  • @toddwerther188
    @toddwerther188 Рік тому

    Which is exactly why for most people traditional TSP/IRA is better than Roth. For most people, Roth only makes sense if you plan to earn/withdraw >$80K in retirement. Otherwise you're paying an extra 10% (22% in taxes instead of 12% in taxes). Tax deferred means everything that would be taxed at 22% will instead be taxed at 12%

  • @yup95yearsago20
    @yup95yearsago20 Рік тому +2

    Easy to understand. Thank you Brian

  • @laureenefurnari1609
    @laureenefurnari1609 Рік тому +7

    I still love your honesty with everything I generally wish we had more legitimate tax accountants out there to help us out. My daughter is 22 years old or she’s going to be 22 this month the end of the month and her tax lady has taken freaking a year and a half, and she still has not gotten her stimulus or her money, I save these videos for her to watch but as a 22-year-old she’s never home from her 45 year-old boyfriends house so it’s kind of hard to explain these things to her but they are so important. I love everything about your videos. ❤

    • @clearvaluetax9382
      @clearvaluetax9382  Рік тому +1

      That’s so kind of you and you are a very good mother!

    • @calvinma9493
      @calvinma9493 Рік тому +3

      45-y/o? They should teach her taxes their age lol

    • @adobedobedo409
      @adobedobedo409 Рік тому

      @@calvinma9493 lmao. She doesn't even know how old her daughter is. Than proceeds to tell us that her daughter has a 45 year old boyfriend, why?

    • @elibankz4355
      @elibankz4355 Рік тому

      Don't worry your daughter is a sugar baby. Sugar babies don't need to worry about tax brackets or taxes in general. Just know that her ass is getting taxed every night.

    • @daveulrich4623
      @daveulrich4623 Рік тому

      I see why your daughter struggles.

  • @JCTVPRO
    @JCTVPRO Рік тому

    I am always learning something new when I watch your videos.

  • @davidruiz4139
    @davidruiz4139 Рік тому

    EVERY video you make is so clearly articulated... I always learn something when you post--

  • @tiffanyap007
    @tiffanyap007 Рік тому

    Wow thanks for these nuggets. I had no idea. Over 30 yrs paying taxes and never knew. 😊💥👍🏾

  • @_f_6957
    @_f_6957 Рік тому +3

    Your explanations are greatly appreciated! Thank you!

  • @awolsniper
    @awolsniper Рік тому +3

    im 23 yrs old and getting ready to start a software engineering job and i am so glad i found this page because not only does it educate me on everything financial, but it will help me stay disciplined in terms of how i should be spending my money, thank you so much for your work !

  • @POMAH_MOHISH
    @POMAH_MOHISH Рік тому

    As always a pleasure to hearing from you 🙂

  • @bruiz5240
    @bruiz5240 Рік тому +2

    Thank you again Brian for another informative video🙋‍♀️🥰❤🙏

  • @BatmanBoss
    @BatmanBoss Рік тому +3

    Thanks Brian

  • @ContrarianExpatriate
    @ContrarianExpatriate Рік тому +1

    I have had so many idiots over the years tell me they didn’t want to make more money so as to avoid getting into a higher tax bracket.

  • @michaelminauro4180
    @michaelminauro4180 Рік тому +2

    Very well explained

  • @TheRandomHandyman
    @TheRandomHandyman Рік тому

    One of the most informative videos I have watched in my life thanks for the breakdown bro

  • @nicoleh8979
    @nicoleh8979 5 місяців тому

    Fantastic video, easy to understand and expertly delivered

  • @fr9714
    @fr9714 29 днів тому

    Great intro. Next is to explain deductions and exemptions etc.
    so if you have an income of say $100,000 and have 24% marginal tax rate, deductions might change that

  • @deeh7366
    @deeh7366 Рік тому +1

    You're the man Brian!

  • @deannekroeger3178
    @deannekroeger3178 Рік тому

    Thanks, Brian for the update 😃 ❤️ and Have a very nice day too 👋

  • @GSR978
    @GSR978 Рік тому

    You explain this incredibly well! Thank you.
    You can lower your taxable income by contributing to your 401k/retirement accounts.

  • @woodzy883
    @woodzy883 Рік тому +4

    Honestly makes me want to learn a lot more on this subject. My situation has several layers I honestly need to understand better

    • @Lookin4LoveInAllTheWrongPlaces
      @Lookin4LoveInAllTheWrongPlaces Рік тому +3

      @@HappyCamper870 My situation is kind of like an onion. The more the government chops up my paycheck the more it makes my eyes water.😅

  • @joshhoward1289
    @joshhoward1289 Рік тому +3

    Are you going to cover the Fair Tax Act? It would be really interesting to compare to the current tax code, flat tax and VAT tax systems (and whatever others may exist).
    A US history of fed taxes would be very interesting as well.
    Thanks for the great instructional videos.

  • @PeteJDunn78
    @PeteJDunn78 Рік тому +4

    Brian is at it again! I am inspired by his channel. Brian inspires me to continue my own channel on investing.

  • @nononsense4035
    @nononsense4035 Рік тому +1

    Thanks for keep us informed!!

  • @oldbear6813
    @oldbear6813 Рік тому +12

    Absurd that they're taxing us at absolutely every turn and not by small amounts.

    • @FragmentOfInfinity
      @FragmentOfInfinity 8 місяців тому

      Just make more money and use legal tax avoidance loopholes

    • @MaxSnowDude
      @MaxSnowDude 5 місяців тому

      These are small amounts compared to historical rates wdym

  • @curie3938
    @curie3938 Рік тому +1

    As usual, excellent !

  • @SeldimSeen1
    @SeldimSeen1 Рік тому

    Thank you so much for making these videos. No one has ever explained this to me. You are a doll.

  • @RONV673
    @RONV673 Рік тому +1

    thanks for another great video Brian!

  • @Cupcakemountian55
    @Cupcakemountian55 Рік тому

    I was just trying to figure this out last night.. had no clue your awesome thanks

  • @Sly_Mango
    @Sly_Mango Рік тому

    Good presentation! Easy to understand. Thank you!

  • @fongcha4933
    @fongcha4933 Рік тому +1

    Very informative! Learned something new!

  • @hq200
    @hq200 Рік тому

    Thanks, saving this video to reference later.

  • @erikaxchristine
    @erikaxchristine Рік тому

    Thank you Brian! 🙏🏻

  • @judazprime3281
    @judazprime3281 Рік тому

    Thanks for all the years of advice , especially during covid

  • @alicehill4999
    @alicehill4999 Рік тому +2

    Thanks for explaining 🙂

  • @feefee2
    @feefee2 Рік тому

    Omg thank you so much for this explanation video!

  • @j.tradeforexinc.2819
    @j.tradeforexinc.2819 Рік тому +1

    Hey Brian 👍🏾thanks for this ...

  • @amauryMW3
    @amauryMW3 Рік тому

    Amazing video! Very simple and easy to understand. Hope you do more.

  • @garry1214
    @garry1214 27 днів тому

    Excellent video, I wish all were this good. Thank you

  • @crystalowens9742
    @crystalowens9742 Рік тому

    Thank you so much!! This video was very helpful!!

  • @jtsra7
    @jtsra7 Рік тому +2

    Thanks Brian! This is a good one for educational reference. Keep up the excellent content!

  • @Because4545
    @Because4545 Рік тому

    Love your content. No fluff. Thank you!

  • @utkbyuca89
    @utkbyuca89 Рік тому

    Thanks Brian for your clear explanation.

  • @CoolestRedHead
    @CoolestRedHead Рік тому +1

    This was great information! Thank you Brian ❤❤

  • @djpookie2000
    @djpookie2000 10 місяців тому

    Thank you, great explanation!

  • @24kGanksta
    @24kGanksta Рік тому +2

    I did not know this thank you

  • @kikiday5250
    @kikiday5250 Рік тому

    Thank u Brian. You always make informative videos. Have a great day🌻

  • @DavidJ245
    @DavidJ245 Рік тому +15

    I’m under the $400,000 tax bracket so I am a part of the “loser” bracket. 🥲

  • @perrymattiso3772
    @perrymattiso3772 Рік тому

    Thanks Brian you are one of the Best. We Appreciate you🙏✌️

  • @jessefletcher9116
    @jessefletcher9116 Рік тому

    simple and to the point, thank you!

  • @preetisantana5639
    @preetisantana5639 11 місяців тому

    This was helpful. Thank you so much!!

  • @garyhirtz4392
    @garyhirtz4392 Рік тому +1

    Taught me something today.

  • @larrysabo799
    @larrysabo799 Рік тому +1

    Brian can you do a video on taxes for the military especially for us that are deployed oversees

  • @humbertotalavera3414
    @humbertotalavera3414 Рік тому +1

    Thanks for the info

  • @Caligrown213
    @Caligrown213 Рік тому +2

    Thank you 🙏🏿 very much for the information.

  • @TechOutAdam
    @TechOutAdam Рік тому +1

    Abolish the IRS. Get rid of the Federal Income Tax. Until we actually audit the IRS that money for sure is not going to anything that benefits us. This whole country was founded on a revolution because of a 2% increased tax on tea. The founders of this country would be so ashamed at how we tolerated this since 1913.

  • @PepeInvest
    @PepeInvest Рік тому

    I learned something new today. Thanks Brian.

  • @lygiabird6988
    @lygiabird6988 Рік тому

    Wow taxes really are lower in the US! In the UK we are at 40 from £37,700 upwards! And 45% from £150,000 upwards.

  • @halo2bullseye922
    @halo2bullseye922 Рік тому

    This was an incredible video and was very helpful. 37 percent of someone making over 500k goes to the government? My God that's a lot.