yo yo yo CPA strength here back with another video is gonna be my best income
tax video ever income tax tips or whatever's anyways before we get into
this video I'm gonna make this quick but please subscribe to the channel do
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ok let's get into this this is gonna be standard deductions first itemized
deductions I'm going into my 7th season as a tax preparer I've done thousands of
a 1040 S which is where the individual tax returns that's the form but the
individual tax returns called so I've done thousands of these try to explain
the difference between itemized and standard deduction every year let's see
if I if I can explain it and let's just let's just go here let's just do this
real standard deduction versus itemized deduction their deductions or or
and you know those other standard oh yes it's gonna be a one take in a standard
or one or the other one ago you don't get both you one or the other you can
pick one so if you only get one you're gonna take the deduction that is the
higher deduction because that lessens your income let's say you have 20 let's
say you have so anyways you can pick one so whatever's higher standard reduction
or itemized deduction whatever is higher the standard deduction is based on your
filing status there's five filing statuses alright this is a 1040 you can
only say there's five filing statuses and each one each one of the filing
statuses I can go over there in a different video if you'd like but each
filing status depending on what you are single I pick single because I'm forever
alone you know let's say you have 20 20 thousand dollars of income here I don't
say you have twenty thousand of income on this first page 20k on the second
page of 1040 here line lying 40 on the 1040 says itemized deductions or
standard deduction so it's an either/or it says it right here so you say well
what's how do I know what my standard deduction is well you're gonna be one of
the five you're gonna you're gonna be single married filing jointly married
filing separately had a household or qualifying Widow
or it says it right here on the left on the left hand margin over the 1040 and
you can get these 10 40s on the IRS IRS gov if it's if you're single in this
this current year the change every year they might double next year I don't know
but for this current year 6000 says it right here 6350 so you you you know your
standard deduction it's my entire lower well and Seth that's the question that's
the question if it's if it's lower if it's only seeing you get to do and you
get to deduct deduct from your income so if you had 20,000 and let's say you only
have 2000 of itemized deductions let's say you have 2000 itemized deductions so
you have to write to K here 60 350 versus 2k what you're going to take the
higher so that's because this is your income this is what you're gonna pay tax
on your taxable income is your income you're gonna - whatever deduction is so
6350 is what oh let's see see that's the standard deduction let's see if I was
7,000 I'll be 13 650 so that's the sum of your taxable income well then you
have more you have a personal exemption but that's something totally different I
want to do this really fast but I just want you really have to know one
of the other see why would if this was only $2,000 I mean if your itemize is
only $2,000 you would not want to deduct only that because if he did that then
you have 18k instead of 14k whatever so it's whatever is the higher deduction
you want to deduct you want to deduct as much as you can from your income cuz you
want to pay less taxes most the time I've had clients that want to pay more
yeah that does happen it's one of the other this is a this has turned out to
be a little too long of a video I'm sorry what are some what are some of the
itemized deductions some of the itemized deductions are real estate or real
estate taxes mortgage interest if you're on a w-2 and have a lot of employees
spence's like drive your own car charitable contributions medical
deductions there's really a whole list of itemized deductions and that's on it
and that's in a different form called a Schedule A we'll go over to schedule a
in a different one if anybody wants to see that see these would all be on
Schedule A now usually I don't even I don't ask I usually ask hey do you own
do you own your own home do you pay you own Doupe Doupe Doupe intervals real
estate taxes mortgage interests because usually if you don't have those you have
to have extremely high other deductions usually if you don't own a home you're
not itemizing you know usually if you own a home because you have to be higher
than your standard adduction so sometimes you know I've had a household
which is like almost nine ten thousand married filing jointly is like twelve
twelve thirteen thousand so it's always different but you get one or the other
and I guess that's the main the main point I wanted to make in this is you
get one or the other you don't get both this is definitely
long enough I've talked for a long enough hopefully I can cut this down a
little bit I just wanted you to know you get one or the other either get a
standard deduction or an itemized deduction these are some of the itemized
deductions on schedule a you're probably not gonna Ida Mize unless you unless you
own a house if you don't want a house you're probably gonna take the standard
deduction anyways this is that is the video for today
this is CPA strength and I'm out deuces