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.
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Thank you so much for this! Your are a blessing!
Can a tax payer able to claim qualifying relatives if they are younger (under the age of 19 to 24)?
Yes, you can, but they cannot be the qualifying child of another taxpayer. My video on claiming dependents kzread.info/dash/bejne/nYyYta1pfKvOoZs.html helps to clarify this.
@@TheTaxGeek thank you, I have one more question, if a TP has taken loan for qualifying children or relative for a student education in a bank can he able to claim deduction for the loan (1098-E) or taxpayer only can able to claim for his own children,spouse and him/herself alone?
CORRECTION: At 5:32 "Marvin's" Retirement Benefit at age 62 should be $2,189.
In your example Marvin collects ss benefit at 62, he should receive $2,189.
Thanks for pointing it out. It will be noted in the description and a pinned comment.
In your professional experience with individuals that have receive a form 1099-SSA, are they well informed about the taxable consequences of the benefits? If not than who should be better at informing them, the SSA or tax prefessionals generally? Awesome video as usual!
No, the vast majority of taxpayers have no idea why and how their Social Security benefits are taxed. In fact, a lot of Tax Professionals don't know a sufficient amount about it to properly explain it to their clients. It's really not the job of the SSA to explain this; only note that some benefits may be subject to taxation. It's actually up to the IRS and Tax Professionals to provide this education, BUT, because the computation is complex and involved, such education is hard to do.
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If they have it, the what the hell am I paying to file?
But if Roth is after tax...how do you know how much tax was taken out? I am so confused by all this
If you're asking what the income tax withholding in based on, it's your gross pay less the pre-tax deductions, including the Roth 401(k).
@@TheTaxGeek but roth is listed as after tax. Lol. I give up
If one of the owners is a Trust then what happens ??
The trust is not included in the BOI reporting for the corporation/LLC. However, if the trust owns more than 25% of the entity, the trust itself has a BOIR.
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: kzread.info/dash/bejne/on2dwc2omLmepaw.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.
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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.
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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