Video Outline and Time Stamps so you can quickly jump to any topic: • Critical updates for 2024 - 4:26 • The 2024 Federal Income Tax Bracket Rates - 4:26 • 2024 capital gain rates for stocks and dividends -5:17 • Changes to the 2024 standard deduction - 6:10 • Child tax credit rules for 2024- 7:55 • • 2024 Education Credits and Student loan interest- 11:11 • 2024 401(K) Contribution Limits IRA Contribution Limits- 12:20 • 2024 Social Security Cost of living adjustment 13:52 • 2024 Gift tax exclusion 14:10 • Health Savings - 16:04 • 2024 Standard Mileage rate: 17:52 • 2024 QBI (199A Deduction) 18:10
Because ROTH IRAs are tax-free, you'll be able to keep more of the money you've worked so hard to earn.I want to invest more than $300k, but I'm not sure how to go.
Holding fixed-income assets in tax-deferred retirement funds as opposed to taxable accounts has additional advantages. If you don't know how to invest in the market, get some advice from a financial counselor.
I have maintained contact with a financial analyst since the inception of my business. In today's dynamic market, the challenge lies in determining the opportune moment to purchase or sell when investing in trending stocks, a task that may seem straightforward but can prove to be quite challenging. With a portfolio that has increased by over $900k in a relatively short span of one year, I have delegated the responsibility of selecting entry and exit orders to my advisor.
4 months working in a CPA firm doing taxes, I’ve been watching tax education videos to keep up with my work. Your content is perfect for real tax professionals. Subscribed 🎉
Thank you that means a lot! Clearview is great, but it has become an economic update channel where as I try to focus on pure educational content even though it doesn't always get many views. As a CPA I suspect he makes more money posting his videos now than he does working as a CPA, but good for him.
Thank you everyone for all the support on the video! Please continue to share with others. I made a few updates to the spreadsheet. I corrected the 2023 mileage # and made a few other small adjustments. Thanks!
Mike, thanks for the update. I’m using your old spdsht to do my estimated taxes. I’ve added federal and state tax columns at the bottom by quarter. Also an IRA RMD calculation. Have you ever done a vlog on QCD out of your IRA? That is how I do all of my charitable contributions. I also pay all of my estimated tax due for investment accounts that don’t have withholding. Dave P in OH.
Happy New Year, Mike. I did aggressive Roth conversions in my smallish IRA in 23. In New York State, the first $20k IRA distribution is tax free. In 2023 I sold the last of my tax inefficient mutual funds that I could. 2024 is more of the same and will go on until the end of 2025. It can pay people to understand the tax codes as it applies to them. 12% forever! (until they raise it back to 15%)
Happy New Year Everyone! I hope you enjoy this update! Thank you for all of your support over the years. If you are a business owner or investor seeking professional accounting, consulting, or tax services you can find my website at www.mikekellycpa.com
Thanks for the clear explanation. Please correct me if I'm wrong but at 12:24, those limits are not for all of 401, 403, and 457 combined. I believe 401 and 457 limits are combined but 403 has its own separate limit. So, e.g., you can have both 457 and 403 and contribute to each up to its max. for a total of $46000 or $61000.
Haha, thanks! Since I have clients all around the US I would hate to alienate some of those other clients since I am not able to do a video for each state. Although at times I have thought doing a video only for CA.
You can follow the links here to download the spreadsheet: www.dropbox.com/scl/fi/59nlxu434w35xzzd73fke/2024-tax-updates.xlsx?rlkey=nj9rmha35tv7lnkfdmiru1poe&dl=0
Happy new year! Thank for watching. As long as people still value this information I will likely continue to post videos like this on my channel every year. Regardless of how few videos I am able to post throughout the year.
Thanks for the spreadsheet. I noticed the sections on 401k/IRA/Roth limits have overlap in the age groups (you listed 50 and younger and 50 and up). This would be confusing for someone exactly 50 y/o.
on 199a deduction it depends if business specified trade of business or non specified trade of business, by STSB eliminated over the upper limit, but by non SSTB will be applied wage and property limitation, for example uber driver is non SSTB and will fully eligible
Thanks for a great video. One thing I wanted to understand is the personal deduction + the tax rate. Say you make dividends up to the max of the 48k 0% threshold. Can you add thr personal exemption on top of that? So total income at 0% is the 48k + personal exemption? If it goes over by $1 does the whole thing go up to 15%? Thanks in advance
Great question! I received so many questions regarding this I am going to film a short separate video on this topic so people can visually see how it works.
Hi Cheryl, for new mortgages purchased after 2017 the mortgage debt limit is $750,000. So if you have a $970,000 mortgage this means approximately 77% of the mortgage interest you pay for your personal residence is tax deductible.
@@SuzanneU darling. Trump did not win in 2020, please return from another dimension, and also if Trump would won, we would not have any war, any immigration crisis, any outrageous inflation and less uneducated people would live in America 😂
Hello Mike...thanks for your 2024 update which I found interesting. You touched on estate taxes and explained why it would only pertain to the Uber wealthy, but I was hoping to hear about the elimination of the "step-up" provision, according to an H.R. _____ representative. According to her, if I Inherited a house through a trust the basis would be the decedent's cost basis as if she/he were still alive, but if through a will and probate the basis would be the FMValue at the time of the decedent's death. I believe I'm getting the wrong information...can you clarify this for me?
Hi, yes I believe you have been getting the wrong information. Stepped up basis has not gone away, fortunately. If you inherit a property from someone who has passed away your cost basis is generally the FMV at their date of passing. Not what they paid for it originally. If they gift you the property or put you on title than that creates issues, because you would receive no stepped up basis at that point and your cost basis would be same as theres regardless if they are alive or deceased. Hope that helps!
Hi there, I suspect not. I do not think there is any reason for you to file unless taxes were withheld and you want to get a refund, but based on what you are saying above none of your SSI would be taxable and the other income is taxexempt.
@@MoneyandLifeTV Thank you for the reply! I dont think you misspoke, and not sure of the source of what is on screen around 2:04 (time stamp). What does overpayments mean in that context. Sorry, still confused
@@MoneyandLifeTV Sorry for my ignorance. I'm someone who's been paying either interest or penalties for the past 4 years... found out last month that apparently the 'penalties' have something like tripled or quadrupled over the past 3 years. If there's a penalty for overpayments(which seems like you said no), then I'd like to avoid swinging the pendulum in the other direction(in addition to just wanting to not overpay) Thank you and Happy New Year!
Hello : I love your videos. I have a condo that I rented out since 1999. I purchased it for $85,000 and its now worth $400,000. I have depreciated the property almost every year appx $3000 per year. Can I move into it for 2 years after selling my primary home, then sell it and won't pay tax on $250,000 of the gain (single filer) ? If I just sell it how much Federal and State tax will I pay on it ?
Thanks Jimmy! You have a few very specific technical questions here that I would not be able to address over CZcams. Please consult with your accountant. I do one on consultations. My hourly rate is $160 per hour. To figure out the tax we would need to do tax planning because there are numerous factors that come into play. You can find me at www.mikekellycpa.com or as I mentioned please contact your current cpa or accountant
If I missed the mark on my estimated taxes for 2023 (will likely owe over $1,000) but I still contributed 125% of my last fed taxes owed, would I still get penalized or am I protected by the safe harbor rule?
Can you cover inherited IRA? I heard the IRS changed the MRD taxable distribution AGAIN! If you were 10 years younger than the deceased person and the deceased was under 70, you could take distributions for the rest of your life. Instead of being forced to take it within 10 years.
2:012:04 ... can anyone explain the (written) bullet point "8% for overpayments (payments made in excess for the amount owed), 7% for corporations Two bullet points under that "8% for underpayments (taxes owed but not fully paid)." It seems like a fine line to metaphorically walk?
I've never been one who threads the needle well unless it's something that's been repeated at least 50+ times... always that one that rides the bike slightly wobbly
Hi Mike thanks for creating good quality content I live in India and I was preparing for CPA exams. But when I see people saying that due to AI, CPA'S would be the first to lose their job. I sit back and think is it worth it?? What would you say about this? Thanks
Great question. I do not fear AI one bit. CPAs are needed more than ever before. If anything CPAs will need to learn to work with AI and not fear it. Tax laws and finances are continuing to become more complex...not less complex. AI will help handle some of the workload but humans need humans to consult with...........consulting with a robot over your finances isn't something most people want to do.
Study and take Exams! Once you have a diploma you can use it for better things than being scared of AI. 😂 CPAs are not just for people but for companies. AI is never going to know all the tricks of the trade and advice clients on Financial Planning matters for Entire Lifetime Tax and Inheritance and Investments Planning. Also no one can bring AI to the Tax Court or to speak to Tax Authority to explain Deductions and things. No AI is going to think through scenarios like being divorced or married or getting healthcare for Free in Retirement when you are very ill and can't afford to spend your savings just on yourself... 😂
I believe so, because the 401(K) contributions would lower your taxable income enough to qualify you for the credit. Its hard to say for sure without running #'s, but I think it would.
@@MoneyandLifeTV so if I wanted to, I can work part time, max my 401k, get healthcare subsidy….hmmmm….. I like the idea. Part timers have more flexibility in shifts.
Hi Sarah great question. Honestly, it could be either year at this point, but if they change it for 2023 they are going to have to do it very very soon to not disrupt tax filings. I suspect it will not impact 2023 but rather 2024 if anything. If you do not hear any news updates by end of this month probably nothing will change for 2023.
Mike, If I am listed as a co-trustee on my moms Irrovacable trust, does that remove step up in basis. I've asked the lawyer and they stated I'm not an owner but listed on the deed as a co-trustee with my sister.
I am over 65 and contributing for HSA. I am full time employed I just heard you said once you are 65 cannot contribute to HSA. I was told by my HR I can contribute and I have been doing it for 3 years. What should I do now. I will appreciate for your reply. Thanks
Are you also enrolled in Medicare at this point? If over 65 and enrolled in Medicare you will not be eligible for health savings account. You will need to call the health savings provider and withdraw contributions that were in ineligible. If you don’t have Medicare you might be ok but you would need to double check
I was enrolled in Medicare already but in 2020 at the time of Covid I closed my practice and got the opportunity of full time employment with all the benefits. They are also providing health benefits I informed Medicare and social security, ask for advice and they said as far as you have heath coverage you don’t need part b for now. Last year I asked all of them but I think I was misunderstood with unique situation. I am going to call my HSA provider and see if they help me I. This. Thanks a lot.
I had a very complicated tax return in 2022 and I paid my CPA $8000 for that filing and an amendment for 2021. Can I write off the $8000 CPA fee when I file my 2023 taxes?
Hi and yes, if you own a business or have rentals. If you do not own a business or have rentals than you can look at itemizing that expense for your state taxes.
Thank you so much for the great update. Please note, You didn’t talk about the Premium Tax Credit for 2021 and 2022 update shown below. For tax years 2021 and 2022, the American Rescue Plan Act of 2021 (ARPA) temporarily expanded eligibility for the premium tax credit by eliminating the rule that a taxpayer with household income above 400% of the federal poverty line cannot qualify for a premium tax credit.
Sooo if someone nets $31k from their job and makes $4k in dividends in 2024, the dividends aren't taxed? If someone nets $50k from their job and makes $5k in dividends in 2024 are those dividends taxed? Is that $47k include your job income?
Great question. Other income sources will affect the taxability of your dividend income. I should do a separate video showing how it works. Would be a fun topic. In the spreadsheet if your only income was qualified dividends and /or capital gains none of it would be taxable. Even with wages though some of it may be still be at 0% while a portion is taxed at 15% so it wouldn't be fully tax exempt, but it would still be a very low tax bill.
"For 2023 if taxable income falls below $44,625 then qualified dividends are taxed at 0% for Single or MFJ" [from intuit website] I dont know that much though, there may be other loopholes to our advantage with dividends. In my opinion qualified dividends are extremely tax efficient, and if Mike could share some thoughts that would be great! Best wishes all!
Hi great question. If I have time before tax season hits me I will, but I would really like to start doing an update each for small businesses. Thank you for the feedback.
Many videos are worthless for my family. Standard deduction over 27,000.. Which made things so much easier than itemizing and keeping track of paper.... so we don't donate as much since we'll never reach that.. Down to one kid for 1 more yr.., minimal mortgage left etc. No business, no Reality or anything. Simple. My wife and I make about 160 combined (nurses). Contribute about 20% to retirement. so.....Not much you can do with that.. And we pay so much taxes it seems... When we used to get a decent return despite 3 kids versus 1 now. Sad. Been a sad 3 or 4 years.. Guess we Pay our dues to buffer goverments paychecks/benefits, wars, border crisis, homeless, etc.. Obviously we're fine, we work hard for being fine... And we're part of the upper middle class. Despite what our current great leader is saying most days, it kind of stinks.
You don’t explain the capital gains rate well enough. If I make $46,000 at my job and $6,000 in qualified dividends do I pay no tax on the $6,000 in qualified dividends?
Sounds like I need to do a video specifically on this topic to clear things up. Thanks for the feedback. It is too difficult to explain in chat, but I will add this to my video list.
@@MoneyandLifeTVThank You so much. My goal is to have every penny from investments either be in qualified dividends or long term capital gains to avoid taxes
Video Outline and Time Stamps so you can quickly jump to any topic:
• Critical updates for 2024 - 4:26
• The 2024 Federal Income Tax Bracket Rates - 4:26
• 2024 capital gain rates for stocks and dividends -5:17
• Changes to the 2024 standard deduction - 6:10
• Child tax credit rules for 2024- 7:55
•
• 2024 Education Credits and Student loan interest- 11:11
• 2024 401(K) Contribution Limits IRA Contribution Limits- 12:20
• 2024 Social Security Cost of living adjustment 13:52
• 2024 Gift tax exclusion 14:10
• Health Savings - 16:04
• 2024 Standard Mileage rate: 17:52
• 2024 QBI (199A Deduction) 18:10
The RMD penalty was reduced to 25 percent as part of secure act 2.0
Because ROTH IRAs are tax-free, you'll be able to keep more of the money you've worked so hard to earn.I want to invest more than $300k, but I'm not sure how to go.
Holding fixed-income assets in tax-deferred retirement funds as opposed to taxable accounts has additional advantages. If you don't know how to invest in the market, get some advice from a financial counselor.
I have maintained contact with a financial analyst since the inception of my business. In today's dynamic market, the challenge lies in determining the opportune moment to purchase or sell when investing in trending stocks, a task that may seem straightforward but can prove to be quite challenging. With a portfolio that has increased by over $900k in a relatively short span of one year, I have delegated the responsibility of selecting entry and exit orders to my advisor.
@@LucasBenjamin-hv7sk Could you kindly elaborate on the advisor's background and qualifications?
The advisor that guides me is Vivian Carol Gioia, most likely the internet is where to find her basic info, just search her name. She's established.
Thanks a lot for this recommendation. I just looked her website up, and I have sent her an email. I hope she gets back to me soon.
4 months working in a CPA firm doing taxes, I’ve been watching tax education videos to keep up with my work. Your content is perfect for real tax professionals. Subscribed 🎉
3rd year tax preparer here. I always watch your updates and find them very helpful. Thank you for doing them each year.
I think this channel has provided me more info that any other tax channel (clearview, the asian dude). thank you for the tips. this is helpful.
Thank you that means a lot! Clearview is great, but it has become an economic update channel where as I try to focus on pure educational content even though it doesn't always get many views. As a CPA I suspect he makes more money posting his videos now than he does working as a CPA, but good for him.
Glad I have smart tax professional doing all this for me! Look forward to talking soon, have a great New Year!
Happy new year! Sounds good sir :) Looking forward to it as well.
Thank you everyone for all the support on the video! Please continue to share with others. I made a few updates to the spreadsheet. I corrected the 2023 mileage # and made a few other small adjustments. Thanks!
Mike, thanks for the update. I’m using your old spdsht to do my estimated taxes. I’ve added federal and state tax columns at the bottom by quarter. Also an IRA RMD calculation.
Have you ever done a vlog on QCD out of your IRA? That is how I do all of my charitable contributions.
I also pay all of my estimated tax due for investment accounts that don’t have withholding. Dave P in OH.
Happy New Year, Mike.
I did aggressive Roth conversions in my smallish IRA in 23. In New York State, the first $20k IRA distribution is tax free.
In 2023 I sold the last of my tax inefficient mutual funds that I could.
2024 is more of the same and will go on until the end of 2025. It can pay people to understand the tax codes as it applies to them.
12% forever! (until they raise it back to 15%)
Way to go Dave, nice work
Happy New Year Everyone! I hope you enjoy this update! Thank you for all of your support over the years.
If you are a business owner or investor seeking professional accounting, consulting, or tax services you can find my website at www.mikekellycpa.com
I look forward to this every year. I love the fact that you summarize this in a spreadsheet format. So appreciate you.
Thank you Kimberly I enjoy making :)
Thanks for the clear explanation. Please correct me if I'm wrong but at 12:24, those limits are not for all of 401, 403, and 457 combined. I believe 401 and 457 limits are combined but 403 has its own separate limit. So, e.g., you can have both 457 and 403 and contribute to each up to its max. for a total of $46000 or $61000.
I noticed the information on Family HSA limits for 2024 is incorrect on spreadsheet. Limits for 2024 are $8300 however sheet lists $8050.
Woops you are correct. I grabbed the wrong number. I will get that updated. Thanks!
Since you're in CA and an expert, it would be great for a short video on CA changes. For example, SDI no longer is capped. Give my best to Chipper!!!
Haha, thanks! Since I have clients all around the US I would hate to alienate some of those other clients since I am not able to do a video for each state. Although at times I have thought doing a video only for CA.
First time listening to you. Thank you for sharing your spreadsheet you shared with your listeners. It is very helpful.
Val Palmer
You can follow the links here to download the spreadsheet: www.dropbox.com/scl/fi/59nlxu434w35xzzd73fke/2024-tax-updates.xlsx?rlkey=nj9rmha35tv7lnkfdmiru1poe&dl=0
Been waiting anxiously for this, thank you so much Mike!!! Happy new year! 🥳 🥂
Happy new year! Thank for watching. As long as people still value this information I will likely continue to post videos like this on my channel every year. Regardless of how few videos I am able to post throughout the year.
@@MoneyandLifeTV thank you Mike!
Wow, it’s already been a year. I remember watching the last one for a quick update as a first year staff
Time flies when having fun haha
Thanks for the spreadsheet. I noticed the sections on 401k/IRA/Roth limits have overlap in the age groups (you listed 50 and younger and 50 and up). This would be confusing for someone exactly 50 y/o.
Great point, thanks for the feedback. I will get that adjusted on my end.
on 199a deduction it depends if business specified trade of business or non specified trade of business, by STSB eliminated over the upper limit, but by non SSTB will be applied wage and property limitation, for example uber driver is non SSTB and will fully eligible
Thanks for a great video. One thing I wanted to understand is the personal deduction + the tax rate.
Say you make dividends up to the max of the 48k 0% threshold. Can you add thr personal exemption on top of that? So total income at 0% is the 48k + personal exemption? If it goes over by $1 does the whole thing go up to 15%?
Thanks in advance
Great question! I received so many questions regarding this I am going to film a short separate video on this topic so people can visually see how it works.
Thanks!@@MoneyandLifeTV
Thank you, Mike😊 This will be helpful. Have a wonderful Tax Season!
Same to you! Thanks so much.
Thanks for keeping me up to date what’s going on!
Any time!
What is the limit on mortgage interest? Purchased a house for which have a 970K mtg. Interest paid was 47K.
Hi Cheryl, for new mortgages purchased after 2017 the mortgage debt limit is $750,000. So if you have a $970,000 mortgage this means approximately 77% of the mortgage interest you pay for your personal residence is tax deductible.
Can I claim Ukraine on my taxes? 🤪
Right!! 😂
Under dependents
Claim as a Dependent or something vacuuming your $$$alary out of your pocket? 😂😂😂😂😂
And Trump's wall??
@@SuzanneU darling. Trump did not win in 2020, please return from another dimension, and also if Trump would won, we would not have any war, any immigration crisis, any outrageous inflation and less uneducated people would live in America 😂
Hello Mike...thanks for your 2024 update which I found interesting. You touched on estate taxes and explained why it would only pertain to the Uber wealthy, but I was hoping to hear about the elimination of the "step-up" provision, according to an H.R. _____ representative. According to her, if I Inherited a house through a trust the basis would be the decedent's cost basis as if she/he were still alive, but if through a will and probate the basis would be the FMValue at the time of the decedent's death. I believe I'm getting the wrong information...can you clarify this for me?
Hi, yes I believe you have been getting the wrong information. Stepped up basis has not gone away, fortunately. If you inherit a property from someone who has passed away your cost basis is generally the FMV at their date of passing. Not what they paid for it originally.
If they gift you the property or put you on title than that creates issues, because you would receive no stepped up basis at that point and your cost basis would be same as theres regardless if they are alive or deceased. Hope that helps!
Thank you so much, Mike....that makes more sense, as I couldn't find anything to indicate otherwise, in a trust or not.
This video is my go to every year so thanks!
Great video! I really enjoyed watching!
Morning Mike. Happy New Year to you and Family, and a healthy and prosperous year.
Thank you Peter!! You as well sir. Talk to you soon.
Please show the Updated standard deduction for Seniors over 65 and the blind.
Hi Larry, Sorry forgot to show in video, but if you download spreadsheet you will find it.
Hi I am 76 years old and my income is SSI which is $3,2229.00 and get Roth and Veterans which is about $9,500 ,So do I have to file ?
Hi there, I suspect not. I do not think there is any reason for you to file unless taxes were withheld and you want to get a refund, but based on what you are saying above none of your SSI would be taxable and the other income is taxexempt.
Thanks , my Daughter will claim me as a dependent
I'm at 4:30 minute mark. I believe your 35% bracket is incorrect for single/mfs, and mfj (upper bounding values). The head of household is correct.
What is the reason of penalty for overpayments??... The underpayments penalty is stiff but somewhat makes sense at least... overpayments though?
No penalty for overpayments, just underpayments. Sorry if I misspoke.
@@MoneyandLifeTV Thank you for the reply! I dont think you misspoke, and not sure of the source of what is on screen around 2:04 (time stamp). What does overpayments mean in that context. Sorry, still confused
@@MoneyandLifeTV Sorry for my ignorance. I'm someone who's been paying either interest or penalties for the past 4 years... found out last month that apparently the 'penalties' have something like tripled or quadrupled over the past 3 years. If there's a penalty for overpayments(which seems like you said no), then I'd like to avoid swinging the pendulum in the other direction(in addition to just wanting to not overpay)
Thank you and Happy New Year!
Hello : I love your videos. I have a condo that I rented out since 1999. I purchased it for $85,000 and its now worth $400,000. I have depreciated the property almost every year appx $3000 per year. Can I move into it for 2 years after selling my primary home, then sell it and won't pay tax on $250,000 of the gain (single filer) ? If I just sell it how much Federal and State tax will I pay on it ?
Thanks Jimmy! You have a few very specific technical questions here that I would not be able to address over CZcams. Please consult with your accountant. I do one on consultations. My hourly rate is $160 per hour. To figure out the tax we would need to do tax planning because there are numerous factors that come into play. You can find me at www.mikekellycpa.com or as I mentioned please contact your current cpa or accountant
Thanks, dude. nice and simple. straight forward here, which I think applies to many or most of us.
If I missed the mark on my estimated taxes for 2023 (will likely owe over $1,000) but I still contributed 125% of my last fed taxes owed, would I still get penalized or am I protected by the safe harbor rule?
Yay, finally uploaded your most viewed video of the year!!
🎉 Thanks! Happy New Year :)
Can you cover inherited IRA?
I heard the IRS changed the MRD taxable distribution AGAIN!
If you were 10 years younger than the deceased person and the deceased was under 70, you could take distributions for the rest of your life. Instead of being forced to take it within 10 years.
2:01 2:04 ... can anyone explain the (written) bullet point "8% for overpayments (payments made in excess for the amount owed), 7% for corporations
Two bullet points under that "8% for underpayments (taxes owed but not fully paid)."
It seems like a fine line to metaphorically walk?
I've never been one who threads the needle well unless it's something that's been repeated at least 50+ times... always that one that rides the bike slightly wobbly
Hi Mike thanks for creating good quality content
I live in India and I was preparing for CPA exams.
But when I see people saying that due to AI, CPA'S would be the first to lose their job. I sit back and think is it worth it??
What would you say about this?
Thanks
Great question. I do not fear AI one bit. CPAs are needed more than ever before. If anything CPAs will need to learn to work with AI and not fear it. Tax laws and finances are continuing to become more complex...not less complex. AI will help handle some of the workload but humans need humans to consult with...........consulting with a robot over your finances isn't something most people want to do.
Study and take Exams! Once you have a diploma you can use it for better things than being scared of AI. 😂 CPAs are not just for people but for companies. AI is never going to know all the tricks of the trade and advice clients on Financial Planning matters for Entire Lifetime Tax and Inheritance and Investments Planning. Also no one can bring AI to the Tax Court or to speak to Tax Authority to explain Deductions and things. No AI is going to think through scenarios like being divorced or married or getting healthcare for Free in Retirement when you are very ill and can't afford to spend your savings just on yourself... 😂
If you make, say, $50k single. Can you max out 401k and get the savers credit?
I believe so, because the 401(K) contributions would lower your taxable income enough to qualify you for the credit. Its hard to say for sure without running #'s, but I think it would.
@@MoneyandLifeTV so if I wanted to, I can work part time, max my 401k, get healthcare subsidy….hmmmm…..
I like the idea. Part timers have more flexibility in shifts.
The talks in congress right now about the CTC getting raised to $3600...is that for 2023 or 2024?
Hi Sarah great question. Honestly, it could be either year at this point, but if they change it for 2023 they are going to have to do it very very soon to not disrupt tax filings. I suspect it will not impact 2023 but rather 2024 if anything. If you do not hear any news updates by end of this month probably nothing will change for 2023.
Mike, If I am listed as a co-trustee on my moms Irrovacable trust, does that remove step up in basis. I've asked the lawyer and they stated I'm not an owner but listed on the deed as a co-trustee with my sister.
Hi, Nope, as long as you are not on title already you should eventually receive step up once property is inherited.
Great explanation. Easy going through and understanding
Glad it was helpful! Thank you Adriana :)
I read the max contribution limit for family was $8300 not $8050
Thanks! It is outdated in video but spreadsheet reflects correct amount
The 2023 business mileage rate is 65.5 cents per mile not 62.5 cents that you have in the spreadsheet.
Thanks for the feedback. I will get that updated.
I am over 65 and contributing for HSA. I am full time employed I just heard you said once you are 65 cannot contribute to HSA. I was told by my HR I can contribute and I have been doing it for 3 years. What should I do now. I will appreciate for your reply. Thanks
Are you also enrolled in Medicare at this point? If over 65 and enrolled in Medicare you will not be eligible for health savings account. You will need to call the health savings provider and withdraw contributions that were in ineligible. If you don’t have Medicare you might be ok but you would need to double check
I was enrolled in Medicare already but in 2020 at the time of Covid I closed my practice and got the opportunity of full time employment with all the benefits. They are also providing health benefits I informed Medicare and social security, ask for advice and they said as far as you have heath coverage you don’t need part b for now. Last year I asked all of them but I think I was misunderstood with unique situation. I am going to call my HSA provider and see if they help me I. This. Thanks a lot.
You didnt mention additional for blind or elderly. Lots of out here.
Hi - thanks for mentioning. It is on the spreadsheet.
I had a very complicated tax return in 2022 and I paid my CPA $8000 for that filing and an amendment for 2021. Can I write off the $8000 CPA fee when I file my 2023 taxes?
Hi and yes, if you own a business or have rentals. If you do not own a business or have rentals than you can look at itemizing that expense for your state taxes.
Question: What is the Standard Deduction for a 77 yr old widow in 2024?
Thank you for this video 😊
My pleasure 😊
VERY INFORMATIVE
Glad it was helpful!
Thank you so much for the great update. Please note, You didn’t talk about the Premium Tax Credit for 2021 and 2022 update shown below.
For tax years 2021 and 2022, the American Rescue Plan Act of 2021 (ARPA) temporarily expanded eligibility for the premium tax credit by eliminating the rule that a taxpayer with household income above 400% of the federal poverty line cannot qualify for a premium tax credit.
This is a great point thanks so much for mentioning this! I will need to add this to the spreadsheet next year.
Sooo if someone nets $31k from their job and makes $4k in dividends in 2024, the dividends aren't taxed? If someone nets $50k from their job and makes $5k in dividends in 2024 are those dividends taxed? Is that $47k include your job income?
Great question. Other income sources will affect the taxability of your dividend income. I should do a separate video showing how it works. Would be a fun topic. In the spreadsheet if your only income was qualified dividends and /or capital gains none of it would be taxable. Even with wages though some of it may be still be at 0% while a portion is taxed at 15% so it wouldn't be fully tax exempt, but it would still be a very low tax bill.
"For 2023 if taxable income falls below $44,625 then qualified dividends are taxed at 0% for Single or MFJ" [from intuit website] I dont know that much though, there may be other loopholes to our advantage with dividends. In my opinion qualified dividends are extremely tax efficient, and if Mike could share some thoughts that would be great! Best wishes all!
@@MoneyandLifeTV thank you
@@baritono81 thanks
Great teaching! Thanks so much!💯💥💫
What about business credit card rewards?
Business credit rewards are non-taxable. In most cases, they are not considered income unless you receive some type of sign-up bonus.
@@MoneyandLifeTV thank you sir! Happy new year!
Great video, thanks Mike🎉
Thank you Raj! Happy New Year!
Thank you this is very informative!!
Well articulated. Good job.
Thank you kindly!
Thank you
Always appreciate the info, my friend!
Always! Thank you!
Great information 🙏
Thanks!
You bet! Thank you!
will you be doing the same video for small businesses??
Hi great question. If I have time before tax season hits me I will, but I would really like to start doing an update each for small businesses. Thank you for the feedback.
Many videos are worthless for my family. Standard deduction over 27,000.. Which made things so much easier than itemizing and keeping track of paper.... so we don't donate as much since we'll never reach that.. Down to one kid for 1 more yr.., minimal mortgage left etc. No business, no Reality or anything. Simple. My wife and I make about 160 combined (nurses). Contribute about 20% to retirement. so.....Not much you can do with that.. And we pay so much taxes it seems... When we used to get a decent return despite 3 kids versus 1 now. Sad. Been a sad 3 or 4 years.. Guess we Pay our dues to buffer goverments paychecks/benefits, wars, border crisis, homeless, etc.. Obviously we're fine, we work hard for being fine... And we're part of the upper middle class. Despite what our current great leader is saying most days, it kind of stinks.
You don’t explain the capital gains rate well enough. If I make $46,000 at my job and $6,000 in qualified dividends do I pay no tax on the $6,000 in qualified dividends?
You are correct
I was wondering the same thing
Sounds like I need to do a video specifically on this topic to clear things up. Thanks for the feedback. It is too difficult to explain in chat, but I will add this to my video list.
@@MoneyandLifeTVThank You so much. My goal is to have every penny from investments either be in qualified dividends or long term capital gains to avoid taxes
Looks like you left off the single elderly (you posted Elderly and blind).
🙌🙌🙌🔥🔥
Thank you!
💵 💵 💵 💵 💵
Thank you Ken Happy New Year!
Just squeezing money from the people