How 6 Things Will Change The Way You Approach Income Tax Slabs
since it's the start of what better topic to start off with then tax reform in today's content I'm gonna be covering in plain English many of the tax law updates that will affect your personal tax return if you are new to our channel I just want to take a moment and say welcome if you're somebody who's interested in learning more about finances more about how taxes work more about investing then I would highly consider subscribe to our channel income tax slabs as we produce new contents every single week surround the subjects and we also produce contents that are gonna help you in your career and your life if you find this content helpful please don't forget to hit that like button before you leave alright let's get started just a reminder that for for this tax season and tooth out that's coming up in April remember you're still gonna follow the rules ok many people are getting it confused which is easy to do these new tax law changes are really gonna impact the return you file in ok so just keep that in mind you were still for on April th we're still gonna follow the tax law all right ladies and gentlemen I thought the easiest way for me to show you this information and talk about the tax cuts in jobs acts tax reform.
bill was actually to show you on screen so that you have a visual of everything we're gonna be talking about so what I did is I made a spreadsheet all right I put together a spreadsheet based off many sources and just so you know here's some links to the sources I use to create this spreadsheet if you want more detail or if you feel there's something hey Mike you didn't cover that well check out those links there's a ton of information in there including including a link to the actual legitimate tax bill itself now if you've never seen a tax bill what it looks like you can actually find them on the Congress gov so but I already have it up so just so you know what a real tax bill looks like oh my goodness it's a real tax bill this is what it looks like so once they've you know battled it out in Congress and it's went through the house the Senate the Ways and Means Committee and all those different places then they get this bill finalized and as you can see if you have trouble sleeping at night then please feel free to read this it's a hundred and eighty five pages of legal jargon about taxes what more could you ask for really ladies and gentlemen I couldn't ask for more myself I have not had trouble sleeping since but this is where the official bill is and this is where you can read it but anyways so let's go to this spreadsheet I put together for you and I have a nice little present for you is the spreadsheet itself so what I'm gonna do is I'm gonna put a drop box link to this spreadsheet so you can download it for yourself and you don't have to recreate the wheel or anything and what I did to create this is I read probably to pages of information and I pulled what I felt to be the most important aspects of this tax bill for your individual taxes now remember we're just talking about individual taxes and put them together in the tables and visual forms in the spreadsheet so all you have to have the Reta is Microsoft Excel if you don't have Microsoft Excel I'll see if I can get it to you in another format but just you know let me know.
and like I said I always do recommend you do your own research on this kind of stuff if you want to learn more so let's go ahead and get started so let's start off we're talking about rates cuz that's one of the biggest changes that has just occurred is the tax rates themselves so revised tax brackets and I've only showing two statuses here if you file single and if you filed married find joint why because those are the most two common filing statuses that are out there as you can see the % is still pretty much the same however overall though the rates have decreased okay on so this like the % bracket I will tell you that that used to be % the percent bracket used to be percent okay so basically the tax bracket rates reduced on average by percent per bracket if you want to know more about brackets work that I highly encourage you to go check out this content I made about how federal income tax brackets work and I tried to make it fun by using a stuffed animal to explain how taxes are calculated so check it out I think you'll find it helpful if you don't quite understand how this actually calculates out and how it impacts your paycheck speaking of paycheck you might want to check with your payroll department of your company or firm wherever you're working at and see what they're doing with your withholdings.
depending on who you are you might have to up with your withholding sleeping on how much you know income you make or you might decrease it a little bit if you know with these new tax savings so it's just depends ok one of the major changes is with the standard deduction what they've done is they've basically took the standard deduction and they're gonna double it for you so you're gonna get a higher standard deduction which means in plain English you pay less tax so it's not a bad thing at all so in you can see that if you were single your standard deduction was if you were married it was , well look at now in if if you're a saint filing single your standard deduction is now , and you're married filing joint standard deduction is now , very nice very nice so that is that is very pretty and with it being twenty four thousand I expect even less people to itemize than before so the next thing let's talk about is personal exemptions so the standard deduction is more favorable for us however what they did in this new tax bills they took away personal exemptions and so when parents said oh we're gonna if you were you know if your remember when you were growing up your parents said well we're gonna claim you on our tax return well when they said we're gonna claim you what they really meant is that we want a deduction for putting it for claiming you on our tax return and that deduction they were talking about is the personal exemption well what they've done in this new tax bill is take it away so before then every exemption or every person you claimed like your spouse your kids etc that for each person you were getting dollars in in an income exemption so it reduced your income so what they've done essentially is for that the whole idea of you know the more kids you have the more higher deduction you can you can get that's not the case anymore they've taken away personal exemptions so you it doesn't matter if you have one kid or ten kids you're not gonna get that personal exemption.
you're not gonna get that dollars per child anymore for you will just remember that but for next year when in when you go to filing your tax return you're not gonna have that anymore so that's kind of a downside so they've gave you more deduction on first your standard deduction but they've taken away your personal exemption let's go ahead and move on and as you're watching this guys feel free ask me questions you know leave those in the comment section down below I'll do my best to respond I know a lot of this information is still brand new and there's a lot of work that still needs to be done to sort all this stuff out so I will do my best to answer your question to the best of my ability so the next thing so since they did take away personal exemptions obviously a lot of people are not happy about that so to kind of offset that a little bit they've also increased this child tax credit which is a good thing that means for your for your taxes that's a good thing it's gonna help you save tax so as you can see here in the credit amount was up to $, the refundable amount and that's a the child tax credit is a refundable credit which means if you owe even if you own no tax if you get this credit you'll still get a refund which is great so what they've done for is they said okay well we're gonna up that credit amount to two thousand and if a person ends up owing no tax at all well we're gonna still gonna refund them.
fourteen hundred dollars of that so they've given you a slightly better child tax credit so which is that's pretty cool let's go on to state and local taxes which is if you might have heard the acronym salt well that's what it is that's what they mean when you hear the term salt state and local taxes so this one is big this is one of the biggest changes they made and so what they did is they're gonna limit how much we can deduct our itemized for state local taxes now you would not unless you itemize is that let me just make this clear so there's a lot of because a lot of people don't really and this not there's nothing bad but a lot of people don't understand tax so unless you're able to itemize you would get no benefit from the state tax deductions anyways but if you did itemize these deductions were huge in fact they were crucial and allowing you to itemize in the first place so in as you can see all state tax amounts are deductible your property taxes your state income taxes if you live in a state where you pay income taxes like California New York you know I'm sure there's plenty other is that you guys can you know name up top of your head those are two examples and also included is things like your sales taxes property taxes etc now in as you can see this is limited now at ten thousand so you know up up to ten thousand dollars
bill was actually to show you on screen so that you have a visual of everything we're gonna be talking about so what I did is I made a spreadsheet all right I put together a spreadsheet based off many sources and just so you know here's some links to the sources I use to create this spreadsheet if you want more detail or if you feel there's something hey Mike you didn't cover that well check out those links there's a ton of information in there including including a link to the actual legitimate tax bill itself now if you've never seen a tax bill what it looks like you can actually find them on the Congress gov so but I already have it up so just so you know what a real tax bill looks like oh my goodness it's a real tax bill this is what it looks like so once they've you know battled it out in Congress and it's went through the house the Senate the Ways and Means Committee and all those different places then they get this bill finalized and as you can see if you have trouble sleeping at night then please feel free to read this it's a hundred and eighty five pages of legal jargon about taxes what more could you ask for really ladies and gentlemen I couldn't ask for more myself I have not had trouble sleeping since but this is where the official bill is and this is where you can read it but anyways so let's go to this spreadsheet I put together for you and I have a nice little present for you is the spreadsheet itself so what I'm gonna do is I'm gonna put a drop box link to this spreadsheet so you can download it for yourself and you don't have to recreate the wheel or anything and what I did to create this is I read probably to pages of information and I pulled what I felt to be the most important aspects of this tax bill for your individual taxes now remember we're just talking about individual taxes and put them together in the tables and visual forms in the spreadsheet so all you have to have the Reta is Microsoft Excel if you don't have Microsoft Excel I'll see if I can get it to you in another format but just you know let me know.
and like I said I always do recommend you do your own research on this kind of stuff if you want to learn more so let's go ahead and get started so let's start off we're talking about rates cuz that's one of the biggest changes that has just occurred is the tax rates themselves so revised tax brackets and I've only showing two statuses here if you file single and if you filed married find joint why because those are the most two common filing statuses that are out there as you can see the % is still pretty much the same however overall though the rates have decreased okay on so this like the % bracket I will tell you that that used to be % the percent bracket used to be percent okay so basically the tax bracket rates reduced on average by percent per bracket if you want to know more about brackets work that I highly encourage you to go check out this content I made about how federal income tax brackets work and I tried to make it fun by using a stuffed animal to explain how taxes are calculated so check it out I think you'll find it helpful if you don't quite understand how this actually calculates out and how it impacts your paycheck speaking of paycheck you might want to check with your payroll department of your company or firm wherever you're working at and see what they're doing with your withholdings.
depending on who you are you might have to up with your withholding sleeping on how much you know income you make or you might decrease it a little bit if you know with these new tax savings so it's just depends ok one of the major changes is with the standard deduction what they've done is they've basically took the standard deduction and they're gonna double it for you so you're gonna get a higher standard deduction which means in plain English you pay less tax so it's not a bad thing at all so in you can see that if you were single your standard deduction was if you were married it was , well look at now in if if you're a saint filing single your standard deduction is now , and you're married filing joint standard deduction is now , very nice very nice so that is that is very pretty and with it being twenty four thousand I expect even less people to itemize than before so the next thing let's talk about is personal exemptions so the standard deduction is more favorable for us however what they did in this new tax bills they took away personal exemptions and so when parents said oh we're gonna if you were you know if your remember when you were growing up your parents said well we're gonna claim you on our tax return well when they said we're gonna claim you what they really meant is that we want a deduction for putting it for claiming you on our tax return and that deduction they were talking about is the personal exemption well what they've done in this new tax bill is take it away so before then every exemption or every person you claimed like your spouse your kids etc that for each person you were getting dollars in in an income exemption so it reduced your income so what they've done essentially is for that the whole idea of you know the more kids you have the more higher deduction you can you can get that's not the case anymore they've taken away personal exemptions so you it doesn't matter if you have one kid or ten kids you're not gonna get that personal exemption.
you're not gonna get that dollars per child anymore for you will just remember that but for next year when in when you go to filing your tax return you're not gonna have that anymore so that's kind of a downside so they've gave you more deduction on first your standard deduction but they've taken away your personal exemption let's go ahead and move on and as you're watching this guys feel free ask me questions you know leave those in the comment section down below I'll do my best to respond I know a lot of this information is still brand new and there's a lot of work that still needs to be done to sort all this stuff out so I will do my best to answer your question to the best of my ability so the next thing so since they did take away personal exemptions obviously a lot of people are not happy about that so to kind of offset that a little bit they've also increased this child tax credit which is a good thing that means for your for your taxes that's a good thing it's gonna help you save tax so as you can see here in the credit amount was up to $, the refundable amount and that's a the child tax credit is a refundable credit which means if you owe even if you own no tax if you get this credit you'll still get a refund which is great so what they've done for is they said okay well we're gonna up that credit amount to two thousand and if a person ends up owing no tax at all well we're gonna still gonna refund them.
fourteen hundred dollars of that so they've given you a slightly better child tax credit so which is that's pretty cool let's go on to state and local taxes which is if you might have heard the acronym salt well that's what it is that's what they mean when you hear the term salt state and local taxes so this one is big this is one of the biggest changes they made and so what they did is they're gonna limit how much we can deduct our itemized for state local taxes now you would not unless you itemize is that let me just make this clear so there's a lot of because a lot of people don't really and this not there's nothing bad but a lot of people don't understand tax so unless you're able to itemize you would get no benefit from the state tax deductions anyways but if you did itemize these deductions were huge in fact they were crucial and allowing you to itemize in the first place so in as you can see all state tax amounts are deductible your property taxes your state income taxes if you live in a state where you pay income taxes like California New York you know I'm sure there's plenty other is that you guys can you know name up top of your head those are two examples and also included is things like your sales taxes property taxes etc now in as you can see this is limited now at ten thousand so you know up up to ten thousand dollars
| moneyplang |
Comments
Post a Comment