WHY Tax Deductions Do NOT Always Produce Bigger Refunds (Tax Deductions Explained)

Tax deductions do not always work how you think they should. In this video I'll quickly explain how tax deductions work.

#Taxes #Taxdeduction

📼 Checkout some of our most popular INVESTING and TAX related videos

🎥 My Complete Investing Playlists can be found here:

[MoneyandLifeTV]

📼 Checkout some of our most popular INVESTING and TAX related videos

🎥 My Complete Investing Playlists can be found here:
► Dividend Investing: shorturl.at/gxBFY
► 401(K) Investing: shorturl.at/fwAW8
► Investing in the stock market: shorturl.at/iuyEQ

[DansBlues]

Another great video and taking a simple concept in tax deductions. I often tell clients that are Self employed that tax deductions save in average 30 cents on the dollar, when you take in SE Tax and Income tax. I often say it creates sticker shock for Self employed clients. It’s why we advise our clients to keep track of all their expenses. I often say money is better in your pocket than theIRS.

Especially with new clients I try to explain making certain tax elections to save on taxes. They may have to file another tax return but the tax savings are usually worth it.

Maybe another video you might explain those tax elections if you haven’t already done so. Or even explaining the difference between a tax credit and a tax deduction. Food for thought.

I read your other post and yep that September 15 and October 15 deadlines are coming. I know them well and I know you are busy. On a personal note we are dealing with the aftermath of Hurricane Ida, so life for me is difficult. The joys of having this tax season extend into next tax season.

Thanks again my fellow CPA for your video, it is much appreciated here.

[MoneyandLifeTV]

What would you like to know more about when it comes to taxes or tax deductions?

[jollygreen]

So how about this ev tax credit of 7500$ would I get more money back like my normal tax return plus 7500 if I was asking 130k file joint or would I get less

[lildetroit]

What if you spend about $5000 on your business but it doesn’t even make $100 how much bigger of return could you get back?

[emikami]

Summary: Tax Deduction vs Tax Credit. Non-refundable Tax Credit vs Refundable Tax Credit.

[dmay]

I must always take the standard deduction, get 0 tax breaks

[GoingGreenMom]

I think EIC is probably the biggest credit...

[Triniboi]

Good info. I used to be confused about this myself for a while. Next video suggestion could be about capital gains or losses in terms of crypto currency.

[hangerq]

Yep, take the standard deduction and forget about it.