02/10/2022
🥱TAX SEASON 2022 KEY TAKEAWAYS
since it seems to have some of y'all in a chokehold
2021 HAS SOME YEAR SPECIFIC TAX LAWS -let’s start there!!!
⛔️For Tax Year 2021 only, the min age to claim EIC has been lowered from age 25 to age 19. However, full-time students must be age 24.
⛔️For Tax Year 2021 only, childcare credit is fully refundable up to 50% and the phaseout level has been increased from $15k to $125K.
⛔️For Tax Year 2021 only, Child tax credit increased, is fully refundable and expanded to include 17 yr olds.
This means you guys WILL NOT see these large refunds anymore after this tax season unless Biden's BBB plan is passed.
🛑There's this pesky Federal law that states Americans have to pay taxes on any money they make aka INCOME TAX. Uncle Sam will get it during the year or at the end of the tax year. The choice is yours!
🛑If you forced Uncle Sam to get it at the end of the tax year by claiming exempt or not having enough federal taxes withheld during the year, don't scratch your head when you find out you owe or you're not getting the refund you got last year!
🛑A refund is one or a combination of two things people. It's an overpayment (you had more taxes withheld than you owe) and or refundable credits (EITC, CTC, AOTC).
And just in case no one is reading...
🛑A refund is NOT FREE MONEY 🗣🗣🗣🗣
🛑A refund is NOT FREE MONEY 🗣🗣🗣🗣
🛑A refund is NOT FREE MONEY 🗣🗣🗣🗣
If you did not overpay your income tax, don't have kids, didn't have college expenses... you won't get a refund. Flat out!
🛑Which brings me to this.... It is NOT your employers fault. Stop saying they didn't take enough out. You are the one who filled out the W4 and told them what take out. Nor is it their responsibility to educate you on how to complete your W4. Get with a TaxPro!
🛑Social security and medicare taken out of your check (which is mandatory by the way) has NOTHING to do with FEDERAL TAXES taken out on box 2 of the W2. Box 2 is just as important as Box 1.
🛑A 1099 Misc is not the same as a W2. 1099's have no federal taxes withheld. So your return is not going to be the same as your friends, co workers, cousins etc if you have a 1099 and they have a W2.
🛑‼️‼️9 times out of 10 the more money you make the less your refund will be. Ex: If you worked half the year in 2020 and only made $15,000 with 2 dependents and then made $30,000 working the full year in 2021 you will NOT get that SAME refund.
🤷🏼♀️The song "Mo Money, Mo Problems" is real. As you become more successful and make more money you need to understand the days of getting big refunds are OVER! In fact, you should prepare to break even or put money aside to pay the IRS money you may owe.
🛑Stop hiding your hustle! If you did something on the side, got paid cash, etc let your TaxPro know! You don't know what we know and it could end up saving you money while you're busy thinking the opposite!
🛑If you own a business. Have your paperwork, receipts and tax id in order. And don't forget to pay your income tax during the year 🤷🏼♀️
❌‼️‼️Just because you you know how to type data into TurboTax or any other Done For You tax software doesn't mean you know tax rules or tax laws. It's gonna let you put in anything 🤷🏼♀️ And it's going to calculate based on your answers. It's not a human and it can't ask you more questions to get to the bottom of things.
Just because you can input any numbers you want, that does not mean they are the correct numbers.
✅The IRS can go back as far as 3 years to audit your returns and if they do find something they WILL charge you interest!
❌Asking a Tax Professional how much they charge before even presenting them with your tax situation is an insult to the accountant/CPA/Tax professional's knowledge, work and experience. We understand everyone is looking for a deal but remember the saying, "You get what you pay for!" You damn sure don't negotiate about the price of Gucci or those Jordan's on your feet do you?
❌And lastly let me just say, some of y'all are leaving thousands and I do mean THOUSANDS on the table by rushing to file and or being stubborn... but go awf, it's your money🤷🏼♀️