What You Need To Know for Tax Season 2024

[Music] brought to you by the every dooll app start budgeting for free today you know what doesn't help people's mental health what's that taxes o I know that's right it's Upon Us Jade it is tax season they get a whole season it's like there was birthday month but taxes like no tax season yeah I'm not for it matter of fact when I think about taxes there's a very memorable social media video that pops into my mind you may have seen it uh James can we play it where's all your money gone though ta 6 9 10 11 let me fix my houses but it's okay it's part of the game no it's not not fun it's not fun to what it's the worst part of the game of is what tax that's amazing so for context it's like I don't know an a 9-year-old playing Monopoly and he's in tears because he's paying taxes giving away all of his money listen I feel that realizing this is adulthood buddy it feels even worse when it's not Monopoly money well Dave Dave has always said if the tax man showed up at your door and you had to hand over $100 bills every time you got a paycheck there would be a Revolt in this country that tax man would be getting whooped every time Boston Tea Party all over again I'd be dumping some Earl gry in that Harbor ooo well let's try to help people not feel like the young man in that in that video let's let them know kind of what to prepare for in 2024 and what you we're going to help you know what you need to know about taxes uh coming up number one when do you even need to file your taxes guys the deadline is April 15th this year the actual tax date most of us think of April 15th as being the tax it got switched up I think last year but we're back on track we're back on track so you you you need to be sure that you're filing everything all your federal tax returns and payments by that date and just know that you can start filing like you don't have to wait till the last minute go ahead and start now matter of fact you out there that's right listen that's me I try to get it done ASAP I'm already sending the stuff over uh so start filing at the end of January so that you're not putting it off and uh get your paperwork ready I know that we have a great checklist that you can use ramseys solutions.com taxes completely free uh checklist of all the documents you need I print this out every year Jade as I actually did it this weekend my wife's like what are you doing I'm like I'm getting all of our documents ready for job George cuz you know all the stuff just started coming in it's the end of January so you've got all the W2s statements HSA contributions and distributions and charitable giving it's all hidden and so I like what I do I get it all digital even if I take a picture of it scan it in crop it put it in one folder wow George on my computer so I'm ready to go that's good I I'm just pulling it from everywhere and I have a bunch of papers and they're probably like doged corners and I can't live like that too stressful for me okay this is good to note though if you uh request an extension the deadline is October 15th that's right but don't don't request an extension just go on and do it all right income tax brackets guys did go up in 2023 uh for the 2024 tax season they also went up a few hundred to account for inflation so if it goes up it's to account for inflation uh the more the taxpayer earns the more their earnings are subject to higher rates but don't get it twisted it's not to that your whole income is taxed at that higher rate it's just the portion of your income that put you to the next tax bracket that gets taxed at that high thank you for saying that I just explained this on a YouTube video we also have an explainer on that website ramsy solutions.com taxes yes your marginal tax rate versus your effective tax rate not to get too nerdy but they're different even if you're in the 22% tax bracket what you actually ended up paying in taxes is probably closer to 15% that's right your whole income is not taxed at that that's that's good to know St stepped so standard reduction increased this year so it's 13,850 if you're single filer 27,700 for married couples filing jointly right that's good the other option would be to itemize but ain't nobody got time for that I feel like most people now it makes more sense to do the standard deduction as they've kept upping it you just end up uh you know better off if you're a normal everyday person I feel that all right the IRS did bump up our 401K in IRA contribution inv I love that the in the limit did increase um and for Roth I contributions as well I think it went up from 6,500 to 7,000 just on that base limit can they increase the income limits because before if you made over a certain amount that's right you know you were capped you couldn't invest so they increased that as well which is all good we like that part love that all right 99k update George oh this is a juicy one so people were freaking out about this one J because they're like are they going to start tracking my venos and make me pay taxes and here's the deal if you sell goods or services online you may have heard about these these 1099 1099 k extra taxes in 2024 but those policies have been officially delayed so you're off the hook this year this year oo all right so how can people save money this tax season number one look for tax deductions remember tax deductions are things that help lower your amount of taxable income right um these are things like medical charitable uh business things like that but tax credits are actual dollar amounts that are subtracted from your actual tax bill which is nice they're deductible things like child tax credit dependent care credit education credit earned income tax credit I I just like the word credit when it means something's going back into my account that's the only time I like the way I remember is deductions are on the front end and credits are sort of on the back end yeah I like that so you know if you make 200 Grand well the deductions could help lower that to where the government says now you really made 180 yeah and the credits are hey you owe $10,000 on your tax bill but with these credits you owe 2,000 that's right I like it's kind of like your final bill goes down with those credits it's like a coupon yeah good I love a coupon tax coupons this is really important uh a lot of people who are like I wanted to fund my Roth IRA for the year or that health savings account you can actually do that up through April 15th yes so if you missed it in 2023 you're like dang it it's not too late but you got to do it by April 15th yeah and to note if you're investing in a Roth for the first time fund the 2023 one first don't just go oh it's 2024 I'm going to fund that one because you can't go back in time so fund the 2023 one first cuz it'll still show up there asart able to do contributions and then as you get to it because hopefully you can do more than one fund the 2024 one and you'll get double for your trouble this year there we go and lastly uh if you're getting a big refund every year stop celebrating okay you're giving the government an interest free loan all year when that money could have been in your paycheck being added to your every dollar budget to help you accomplish your goals and most people Jade they see this refund as like fund money to go blow on the vacation no don't do that change your withholdings with your HR department or whatever you need to do do to try to get it as close to zero as possible that's the game that is the game well if you find this helpful or if you want more information please go to Ramsey solutions.com taxes or if you want to read a little bit more we've got a tax guide we've got blog articles uh all sorts of things that tax prep list that George and I were uh so delicately and eloquently talking about so delicate um but yeah we've got everything there taxes should not feel like a headache and if they have in the past I promise you if you use these resources we have it's going to feel a lot better y are you doing tax pro this year what are you what are you insan my mother-in-law is our tax Pro that is the best yeah well or she all up in your business literally she's all up in your business listen she's all up in the Kool-Aid she knows the flavor and it's she knows what's in the mix she knows what's in the mix it is what it is and I'm happy to have her that's nice love you I just I just scheduled my tax appointment I'm excited I'm looking forward to it you know what I do this is real talk my wife and I always schedule a fun date post taxes I like that we go to a nice lunch after okay and so that's something that we look forward to so that's a little I'm sure that's in atomic habits right if like you got to dangle a little carrot after you eat your vegetable maybe it's a not a carrot it's like a donut you got dangle that's true to get excited about taxes you know the thing is like I feel like it's one of those things that we've just kind of it's like a self-fulfilling prophecy we've told ourselves I hate tax season tax season's the worst and then therefore we make it the worst like we don't prepare we don't do the things to make it easier let's let this year be different and set the the course for a more enjoyable tax season let's go get the the checklist go use Smart tax if you want to do it on your own yeah like set it set yourself up for Success it doesn't have to be it's like the dentist right get the shot of novacaine so that it doesn't hurt get some laughing gas if you have to there you go but get those teeth cleaned all right we don't want them those Chompers little chick mouth chicklets all nasty mouth chicklets keep them keep it tight that's what you're here for George terms like terms like mouth chicklets that's what people listen to the Ramy show for they're listening to the Ramsey Show to go to ramsy solutions.com taxes so they can get their taxes done right create your free every dollar budget today the simplest way to 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