1 00:00:00,080 --> 00:00:02,960 Speaker 1: Welcome to how to Money. I'm Joel and I am 2 00:00:03,040 --> 00:00:07,119 Speaker 1: Matt's and today we're discussing tax, tips, credits and deductions. 3 00:00:26,239 --> 00:00:28,280 Speaker 1: Ay Jeel, I wanted to share with you it's speaking 4 00:00:28,280 --> 00:00:33,040 Speaker 1: of the year still sort of. It's January accurate, and 5 00:00:33,400 --> 00:00:35,440 Speaker 1: we kicked it off this year man with some new 6 00:00:35,520 --> 00:00:38,120 Speaker 1: internet service I'm talking about. Did you save some money 7 00:00:38,120 --> 00:00:41,200 Speaker 1: by switching? Dude? Yeah, So I had been totally slack 8 00:00:41,280 --> 00:00:44,199 Speaker 1: and we had been with Exfinity for close to a 9 00:00:44,280 --> 00:00:46,800 Speaker 1: year now at a non promotional rate because you know, 10 00:00:46,800 --> 00:00:49,360 Speaker 1: the promotional rate expired and we've been busy with life 11 00:00:49,520 --> 00:00:51,840 Speaker 1: and dude, I didn't get to that for a whole year. 12 00:00:52,600 --> 00:00:55,840 Speaker 1: That is like the complete opposite of me. So it 13 00:00:55,880 --> 00:00:57,600 Speaker 1: was all my radar. But finally I was I was like, 14 00:00:57,600 --> 00:01:01,440 Speaker 1: I can't keep paying seventy bucks for crappy internet, which 15 00:01:01,440 --> 00:01:03,200 Speaker 1: is what I was doing. Dude, We're paying seventy bucks 16 00:01:03,400 --> 00:01:06,320 Speaker 1: a month for thirty megabits per second and a t 17 00:01:06,480 --> 00:01:08,920 Speaker 1: T had this deal going around and it was forty 18 00:01:08,920 --> 00:01:11,920 Speaker 1: bucks for three d megabits per second. That's a little 19 00:01:11,920 --> 00:01:14,160 Speaker 1: bit faster. It's way more than a little bit faster, 20 00:01:14,240 --> 00:01:16,560 Speaker 1: and a good bit cheaper. Dude, it is amazing and 21 00:01:16,600 --> 00:01:20,240 Speaker 1: what's crazy? And this is a little throwback to the 22 00:01:20,319 --> 00:01:23,680 Speaker 1: episode eighteen where we had talked about the art of 23 00:01:23,720 --> 00:01:27,720 Speaker 1: asking for a discount. But man, I contacted Comcast or 24 00:01:27,720 --> 00:01:31,560 Speaker 1: Exfinity whatever twice to see if I could negotiate, and 25 00:01:31,959 --> 00:01:34,760 Speaker 1: I was willing to walk away, and they wouldn't budge 26 00:01:34,959 --> 00:01:37,200 Speaker 1: at all. Isn't that crazy? You had to do what 27 00:01:37,240 --> 00:01:38,920 Speaker 1: you had to do, man, you gotta move on. Well, 28 00:01:38,959 --> 00:01:40,800 Speaker 1: So the first time I was just expecting them to 29 00:01:41,160 --> 00:01:43,760 Speaker 1: cave a little bit because I thought, okay, fifteen twenty 30 00:01:43,840 --> 00:01:46,360 Speaker 1: megabits per second, it's fine. If I can just get 31 00:01:46,400 --> 00:01:48,960 Speaker 1: the rate lowered down to forty, that's the easiest, and 32 00:01:49,080 --> 00:01:50,160 Speaker 1: I don't I don't have to worry about it. I 33 00:01:50,200 --> 00:01:53,520 Speaker 1: just didn't want my life disrupted. But they were like, no, sorry. 34 00:01:53,760 --> 00:01:55,240 Speaker 1: So then I had to call up a T and 35 00:01:55,280 --> 00:01:57,400 Speaker 1: T and actually get it scheduled and take advantage of 36 00:01:57,400 --> 00:01:59,520 Speaker 1: that deal. And then I call it a Comcast back 37 00:01:59,560 --> 00:02:02,640 Speaker 1: again and again try to get them down and they 38 00:02:02,680 --> 00:02:05,160 Speaker 1: weren't budging. Man, I could not believe it. Word otherwise 39 00:02:05,200 --> 00:02:08,239 Speaker 1: to anybody out there who hasn't shopped their their Internet bill, 40 00:02:08,480 --> 00:02:10,640 Speaker 1: is really honestly like it can be a pain and 41 00:02:10,760 --> 00:02:13,200 Speaker 1: your current provider can't say no, but pit them against 42 00:02:13,240 --> 00:02:16,880 Speaker 1: each other. And also consider using Twitter, because Twitter can 43 00:02:16,880 --> 00:02:19,360 Speaker 1: be a great place to find the customer support person 44 00:02:19,400 --> 00:02:21,440 Speaker 1: who can actually make a difference. Sometimes if you just 45 00:02:21,480 --> 00:02:23,840 Speaker 1: call the regular one eight hundred number, you're getting told 46 00:02:23,840 --> 00:02:26,160 Speaker 1: no constantly. And I think Twitter is just a good 47 00:02:26,160 --> 00:02:28,720 Speaker 1: place for you to go to potentially get some actual 48 00:02:28,720 --> 00:02:30,840 Speaker 1: customer service and someone that can actually give you a 49 00:02:30,840 --> 00:02:34,680 Speaker 1: lower rate. Well, that's true, I didn't do that next time. Well, 50 00:02:34,680 --> 00:02:36,080 Speaker 1: the thing is, dude, I was just fed up with it, 51 00:02:36,120 --> 00:02:37,520 Speaker 1: you know, and so I was like, forget this. I 52 00:02:37,520 --> 00:02:41,680 Speaker 1: feel like twitters for the birds. Gonna call them up, literally, asked, Yeah, asked. 53 00:02:42,600 --> 00:02:45,280 Speaker 1: I asked for the customer retention department. They transferred me over, 54 00:02:46,000 --> 00:02:48,600 Speaker 1: And honestly, I'm just happier now that I'm giving my 55 00:02:48,639 --> 00:02:51,359 Speaker 1: money to a t and t um and dude and 56 00:02:51,400 --> 00:02:53,040 Speaker 1: the dude that came up, and then they'll do something 57 00:02:53,080 --> 00:02:55,320 Speaker 1: to to make you mad and you'll switch back, exactly. 58 00:02:55,400 --> 00:02:57,160 Speaker 1: It's like the circle of life. It never ends, the 59 00:02:57,200 --> 00:02:59,720 Speaker 1: circle of Internet providers. Well, and the guy that came 60 00:02:59,760 --> 00:03:03,040 Speaker 1: out and actually did the install was so incredibly awesome. Man, 61 00:03:03,200 --> 00:03:04,680 Speaker 1: he stood there and talked through it with me and 62 00:03:04,680 --> 00:03:07,640 Speaker 1: explained to me how like the dual band networks were. Okay, 63 00:03:07,680 --> 00:03:10,040 Speaker 1: so here's a little internet primary for everybody. The five 64 00:03:10,040 --> 00:03:13,120 Speaker 1: giga hurst band is faster, like that's a three megabits 65 00:03:13,160 --> 00:03:16,000 Speaker 1: per second band, but it's doesn't have as far of 66 00:03:16,080 --> 00:03:18,079 Speaker 1: a reach. That's how it was explained to me at least. 67 00:03:18,080 --> 00:03:20,240 Speaker 1: So if you're hard wired in, if you're hard wired in, 68 00:03:20,400 --> 00:03:23,760 Speaker 1: or if you're near you're wireless router, it's awesome. However, 69 00:03:23,800 --> 00:03:26,040 Speaker 1: beyond a certain range, it switches to the old school 70 00:03:26,040 --> 00:03:28,840 Speaker 1: two point four, which is the slower Internet that's typically 71 00:03:28,919 --> 00:03:31,400 Speaker 1: like the thirty megabits per second coverage, right, And so 72 00:03:31,520 --> 00:03:33,519 Speaker 1: if you're on the other side of your house, that's 73 00:03:33,560 --> 00:03:35,480 Speaker 1: probably the network that you're getting, right, And it's the 74 00:03:35,520 --> 00:03:39,080 Speaker 1: same network, and it just automatically switches on your modem. Yeah, 75 00:03:39,080 --> 00:03:41,560 Speaker 1: and there. Now you've just got three intern sixty dollars 76 00:03:41,640 --> 00:03:43,880 Speaker 1: extra in your pocket every year. There's so many more 77 00:03:43,880 --> 00:03:45,960 Speaker 1: things that you can either spend that on or you 78 00:03:45,960 --> 00:03:49,320 Speaker 1: can save that money. Yeah, man, that's awesome because actually 79 00:03:49,360 --> 00:03:51,840 Speaker 1: to get something a better service in your life and 80 00:03:51,880 --> 00:03:54,240 Speaker 1: to save money, that's that's awesome. That's to win win, Yeah, 81 00:03:54,240 --> 00:03:55,760 Speaker 1: where I could even take my wife on a fancy 82 00:03:55,760 --> 00:03:59,560 Speaker 1: little trip. There we go like I just did with Emily. 83 00:03:59,720 --> 00:04:01,480 Speaker 1: But so we run at a hotel for a couple 84 00:04:01,520 --> 00:04:03,760 Speaker 1: of nights and just had a great time just connecting. 85 00:04:03,800 --> 00:04:05,960 Speaker 1: And with young kids, it can be hard to get 86 00:04:06,000 --> 00:04:07,880 Speaker 1: that connection time with your wife, and so we had 87 00:04:07,920 --> 00:04:10,520 Speaker 1: a great little trip together. And I wanted to run 88 00:04:10,560 --> 00:04:13,560 Speaker 1: by Matt a frugal verse cheap question for you, because oh, 89 00:04:13,680 --> 00:04:15,680 Speaker 1: let's hear it, we did an episode about are you 90 00:04:15,720 --> 00:04:17,599 Speaker 1: frugal or are you cheap? And kind of how to 91 00:04:17,640 --> 00:04:20,120 Speaker 1: make that decision, and we come up against those decisions 92 00:04:20,120 --> 00:04:22,440 Speaker 1: in our lives all the time. And so we got 93 00:04:22,440 --> 00:04:24,320 Speaker 1: a great deal at this hotel. They had a cyber 94 00:04:24,360 --> 00:04:27,720 Speaker 1: Monday sale that that was still lingering that we took 95 00:04:27,720 --> 00:04:29,800 Speaker 1: advantage of, and we gotta get wait wait was it 96 00:04:29,839 --> 00:04:32,360 Speaker 1: a crappy motel? No, it was a nice place. We 97 00:04:32,360 --> 00:04:34,960 Speaker 1: really enjoyed. Actually yeah, but there was a music venue 98 00:04:35,200 --> 00:04:37,440 Speaker 1: on the property and they had a show the night 99 00:04:37,480 --> 00:04:39,720 Speaker 1: that we checked in, and if you were staying there, 100 00:04:40,120 --> 00:04:43,200 Speaker 1: you could go see the show for free. So we decided, 101 00:04:43,600 --> 00:04:47,520 Speaker 1: being people that like free things and we typically like 102 00:04:47,560 --> 00:04:49,680 Speaker 1: a decent music show to go check this band out. 103 00:04:50,160 --> 00:04:53,280 Speaker 1: Uh it was so it was so guzy, didn't turn 104 00:04:53,320 --> 00:04:55,359 Speaker 1: out so well. Well, it was really funny walking in 105 00:04:55,400 --> 00:04:58,800 Speaker 1: there because we were a good thirty years younger than 106 00:04:58,839 --> 00:05:02,000 Speaker 1: pretty much anybody else in there. Thirty years younger. But 107 00:05:02,000 --> 00:05:04,400 Speaker 1: you're in Athens, Georgia. This is a college town. Yeah, 108 00:05:04,600 --> 00:05:07,520 Speaker 1: oh that's a bad sign. It was. It was a 109 00:05:07,600 --> 00:05:12,680 Speaker 1: bunch of upper fifties early sixties people hanging out lists, 110 00:05:12,680 --> 00:05:15,680 Speaker 1: so obviously it wasn't our genre of music. And and 111 00:05:15,720 --> 00:05:17,359 Speaker 1: there was this one guy that came walking up the 112 00:05:17,400 --> 00:05:20,440 Speaker 1: stairs and with like a hand carved cane that was 113 00:05:20,440 --> 00:05:24,039 Speaker 1: pretty impressive. It caught everyone's attention. I promise you it 114 00:05:24,120 --> 00:05:26,200 Speaker 1: was really cool cane and I hope to have one 115 00:05:26,200 --> 00:05:28,640 Speaker 1: similar to it when I'm older. So the the concert, 116 00:05:28,680 --> 00:05:30,680 Speaker 1: we only stayed for like four songs because it just 117 00:05:30,760 --> 00:05:34,280 Speaker 1: wasn't our style, and obviously it wasn't supposed to be, 118 00:05:34,320 --> 00:05:37,520 Speaker 1: I don't think. But yeah, so we left. Are we 119 00:05:37,600 --> 00:05:39,640 Speaker 1: frugal or cheap for trying to take advantage of the 120 00:05:39,680 --> 00:05:43,039 Speaker 1: free concert but then leaving early? I don't know. That's 121 00:05:43,080 --> 00:05:45,359 Speaker 1: totally a frul. I mean, I guess you can't call 122 00:05:45,400 --> 00:05:48,159 Speaker 1: it a win, but did it cost you any more money? 123 00:05:48,200 --> 00:05:50,720 Speaker 1: It's like, no, right, it maybe cost you a little 124 00:05:50,720 --> 00:05:52,359 Speaker 1: bit of time where you kind of were standing around 125 00:05:52,360 --> 00:05:54,279 Speaker 1: and kind of checking out the scene, but it's not 126 00:05:54,320 --> 00:05:56,480 Speaker 1: like it costs you money, right, And it didn't cost 127 00:05:56,520 --> 00:05:58,719 Speaker 1: you money more money down the road. And it was 128 00:05:58,760 --> 00:06:00,839 Speaker 1: Emily up for it as well. When you guys were 129 00:06:01,040 --> 00:06:02,840 Speaker 1: we're talking about it, was she as for it as 130 00:06:02,839 --> 00:06:05,440 Speaker 1: you were. Yeah, I mean, okay, totally up for checking 131 00:06:05,480 --> 00:06:08,080 Speaker 1: it out. And it was fun for for a little while, 132 00:06:08,200 --> 00:06:11,880 Speaker 1: and then we just realized for us, and I don't 133 00:06:11,920 --> 00:06:14,039 Speaker 1: mind being out of place. I don't mind like rocking 134 00:06:14,040 --> 00:06:16,159 Speaker 1: out with a bunch of sixty year old if we're 135 00:06:16,160 --> 00:06:18,039 Speaker 1: both into the same music. But it just honestly turned 136 00:06:18,040 --> 00:06:20,520 Speaker 1: out it wasn't work. It wasn't our style style of tunes, 137 00:06:20,560 --> 00:06:22,880 Speaker 1: and so we decided to mosey on down the road. Yeah. Well, 138 00:06:22,920 --> 00:06:24,520 Speaker 1: I mean, for me, those are the biggest things that 139 00:06:24,520 --> 00:06:25,839 Speaker 1: I try to keep in mind, right when it comes 140 00:06:25,839 --> 00:06:27,440 Speaker 1: to if you're being frugal or cheap, is this going 141 00:06:27,480 --> 00:06:29,560 Speaker 1: to actually cost me more down the road because I'm 142 00:06:29,560 --> 00:06:32,799 Speaker 1: being too cheap now? Or am I imposing my cheapness 143 00:06:33,160 --> 00:06:36,760 Speaker 1: your frugality on someone else? Forcing my wife. So if 144 00:06:36,800 --> 00:06:38,520 Speaker 1: she was just like Joel, I do not want to 145 00:06:38,520 --> 00:06:40,560 Speaker 1: go to the stupid concert, and I'm like, it's free, 146 00:06:40,560 --> 00:06:43,960 Speaker 1: we're going, then that may have been you being cheap 147 00:06:44,000 --> 00:06:45,400 Speaker 1: and that we had a problem. Yeah, that would have 148 00:06:45,400 --> 00:06:47,000 Speaker 1: been a fail. But as it is, you know, you've 149 00:06:47,000 --> 00:06:49,240 Speaker 1: got to take advantage of those free things. And we 150 00:06:49,279 --> 00:06:50,880 Speaker 1: talked about that on a recent episode, how to take 151 00:06:50,880 --> 00:06:53,760 Speaker 1: advantage of free things, taking advantage of free stuff, and 152 00:06:53,800 --> 00:06:55,800 Speaker 1: I'm glad to hear you guys were had an open 153 00:06:55,800 --> 00:06:58,159 Speaker 1: mind when we're up for it. It had two effects 154 00:06:58,200 --> 00:07:00,400 Speaker 1: on me. One, I hope that when I'm sixty, I'm 155 00:07:00,440 --> 00:07:03,440 Speaker 1: still going to rock and roll concerts. And two, it 156 00:07:03,520 --> 00:07:05,840 Speaker 1: made me wonder if my kids are going to think 157 00:07:05,880 --> 00:07:08,039 Speaker 1: that my music, the music I listened to is super 158 00:07:08,120 --> 00:07:10,200 Speaker 1: lame when I'm that age, because I was like, oh, 159 00:07:10,240 --> 00:07:11,880 Speaker 1: it's not really my style. I don't really like it. 160 00:07:11,920 --> 00:07:13,840 Speaker 1: But are my kids gonna say the same thing about 161 00:07:13,840 --> 00:07:16,680 Speaker 1: the bands I listened to now? Probably and they'll be wrong? 162 00:07:18,120 --> 00:07:21,240 Speaker 1: Yeah's right because we have excellent taste in music, and 163 00:07:21,320 --> 00:07:24,400 Speaker 1: we also have matt excellent taste in beer. And so 164 00:07:24,560 --> 00:07:27,160 Speaker 1: let's tell everyone the beer we're drinking today during the 165 00:07:27,200 --> 00:07:32,040 Speaker 1: show is Morgan Territory Brewing Dark Reckoning Imperial Porter. This 166 00:07:32,080 --> 00:07:35,680 Speaker 1: beer was donated to the show by Brent's out in California. 167 00:07:35,800 --> 00:07:37,480 Speaker 1: He sent us a bunch of beers and this is 168 00:07:37,520 --> 00:07:39,320 Speaker 1: the only one that are having on the show because 169 00:07:39,360 --> 00:07:41,880 Speaker 1: we already enjoyed the other ones. They were delicious, So 170 00:07:42,160 --> 00:07:44,040 Speaker 1: thanks so much, man, We appreciate it, our buddy. We 171 00:07:44,040 --> 00:07:46,520 Speaker 1: already poured the beer. It's a dark black color. Let's 172 00:07:46,560 --> 00:07:48,800 Speaker 1: take a sip, and let's give one word to describe 173 00:07:48,840 --> 00:07:50,920 Speaker 1: the beer that we're drinking. Cheers, all right, I'm gonna 174 00:07:50,920 --> 00:07:53,640 Speaker 1: give you my word first. The word that immediately came 175 00:07:53,680 --> 00:07:56,040 Speaker 1: to my mind. This is a porter. And lots of 176 00:07:56,120 --> 00:07:59,480 Speaker 1: times porters aren't quite as big and and robust as 177 00:07:59,520 --> 00:08:03,080 Speaker 1: a stout. So my word robust. Yeah, that's a good word. 178 00:08:03,760 --> 00:08:06,240 Speaker 1: That's a good beer as well. My word is gonna 179 00:08:06,280 --> 00:08:08,920 Speaker 1: be thick. And as always, we're going to talk more 180 00:08:08,960 --> 00:08:11,000 Speaker 1: about the beer at the end of the show, and 181 00:08:11,160 --> 00:08:14,400 Speaker 1: we'll talk about our one word description at that point. Yeah, 182 00:08:14,480 --> 00:08:16,480 Speaker 1: but for now, Matt, let's get to the topic at hand. 183 00:08:16,560 --> 00:08:19,880 Speaker 1: We're talking tax tips, credits and deductions, and we did 184 00:08:19,880 --> 00:08:22,520 Speaker 1: an episode last week on adjustments that you can make 185 00:08:22,640 --> 00:08:25,120 Speaker 1: to your adjusted gross income to cut your tax bill. 186 00:08:25,360 --> 00:08:28,280 Speaker 1: And we mentioned last week too, we're not tax pros, right, 187 00:08:28,480 --> 00:08:31,680 Speaker 1: So so if you want specific tax advice for your situation, 188 00:08:32,000 --> 00:08:34,360 Speaker 1: it's a really good idea to find an accountant or 189 00:08:34,400 --> 00:08:36,000 Speaker 1: a c p A in your area that can help 190 00:08:36,000 --> 00:08:38,280 Speaker 1: you where you are exactly. But Matt and I have 191 00:08:38,559 --> 00:08:40,880 Speaker 1: you know, we've we've wanted to to give some lessons 192 00:08:40,880 --> 00:08:43,000 Speaker 1: from what we've learned and kind of some of the 193 00:08:43,040 --> 00:08:46,680 Speaker 1: specifics based on the new tax cuts in Jobs Act 194 00:08:46,760 --> 00:08:49,240 Speaker 1: that win to affect last year and how that new 195 00:08:49,320 --> 00:08:53,520 Speaker 1: issue law is going to affect your tax situation. That's right, man. 196 00:08:53,600 --> 00:08:56,000 Speaker 1: And again, so the last episode we talked about those 197 00:08:56,040 --> 00:08:59,520 Speaker 1: above the line deductions, which weren't actually deductions, right. There 198 00:08:59,520 --> 00:09:01,920 Speaker 1: are things that you can do to modify your adjusted 199 00:09:01,960 --> 00:09:05,880 Speaker 1: gross income regardless if you take the standard deduction or 200 00:09:05,920 --> 00:09:08,280 Speaker 1: if you itemize your deduction. And so this week we're 201 00:09:08,280 --> 00:09:10,600 Speaker 1: gonna help you think through whether or not you should 202 00:09:10,760 --> 00:09:13,040 Speaker 1: take the standard deduction or if you should take the 203 00:09:13,080 --> 00:09:16,040 Speaker 1: itemized deduction. Yeah, and that's gonna be a question for 204 00:09:16,080 --> 00:09:18,560 Speaker 1: a lot of folks, especially if you're doing your own taxes. 205 00:09:19,000 --> 00:09:21,400 Speaker 1: You used to be the thirty percent of Americans would 206 00:09:21,400 --> 00:09:25,559 Speaker 1: itemize our deductions. But it's assumed at this point, based 207 00:09:25,600 --> 00:09:27,640 Speaker 1: on the way people have filed their taxes in the past, 208 00:09:27,920 --> 00:09:30,600 Speaker 1: that this new tax law is actually going to cause 209 00:09:30,679 --> 00:09:33,360 Speaker 1: a lot fewer people to end up itemizing their deductions. 210 00:09:33,360 --> 00:09:36,320 Speaker 1: They're gonna be taking typically the standard deduction. So for 211 00:09:36,360 --> 00:09:38,560 Speaker 1: a lot of folks that's likely going to be the case. 212 00:09:39,280 --> 00:09:43,160 Speaker 1: Americans are going to take this much bigger standard deduction. 213 00:09:43,320 --> 00:09:45,800 Speaker 1: But that's not true for everyone. And like you said, Joe, 214 00:09:45,880 --> 00:09:48,360 Speaker 1: the Tax Cuts and Jobs Act, right that was signed 215 00:09:48,360 --> 00:09:51,000 Speaker 1: into law, and what that did is that it basically 216 00:09:51,040 --> 00:09:54,439 Speaker 1: doubled the standard deduction for singles if you're filing jointly, 217 00:09:54,640 --> 00:09:56,440 Speaker 1: as well as for a head of household. So if 218 00:09:56,480 --> 00:09:59,280 Speaker 1: you're filing individually, that bumped that up to twelve thousand, 219 00:09:59,320 --> 00:10:01,560 Speaker 1: and if you're married filing jointly, it bumped that up 220 00:10:01,600 --> 00:10:04,360 Speaker 1: to twenty four thousand. It makes sense that a lot 221 00:10:04,400 --> 00:10:07,040 Speaker 1: of people are going to buy default. They're gonna think, oh, 222 00:10:07,040 --> 00:10:09,440 Speaker 1: I'm just gonna take the standard deduction. That's not gonna 223 00:10:09,480 --> 00:10:12,240 Speaker 1: make sense for me to itemize my taxes. Maybe I've 224 00:10:12,280 --> 00:10:14,240 Speaker 1: never idomized my taxes. I'm definitely not gonna do it 225 00:10:14,240 --> 00:10:16,120 Speaker 1: this year, but like we said, it's not going to 226 00:10:16,200 --> 00:10:18,960 Speaker 1: be the case for everyone though, And you know, we'll 227 00:10:18,960 --> 00:10:22,400 Speaker 1: cover who should consider itemizing deductions right after the break. 228 00:10:30,920 --> 00:10:33,080 Speaker 1: You know what's funny is that we're actually doing a 229 00:10:33,160 --> 00:10:35,560 Speaker 1: second episode on taxes. If you would have told me 230 00:10:35,600 --> 00:10:37,360 Speaker 1: that we're gonna do this, even like a few weeks ago, 231 00:10:38,320 --> 00:10:41,200 Speaker 1: I would have said, no, that sounds totally boring that 232 00:10:41,280 --> 00:10:44,240 Speaker 1: we would spend two full episodes on taxes. But taxes 233 00:10:44,280 --> 00:10:46,080 Speaker 1: are so important, man, there, there's so much of our 234 00:10:46,080 --> 00:10:49,440 Speaker 1: money goes towards taxes, goes towards our government, and it's 235 00:10:49,559 --> 00:10:52,480 Speaker 1: worth covering. It's worth covering in detail to help us 236 00:10:52,480 --> 00:10:54,720 Speaker 1: consider whether or not we should itomize our taxes or not, 237 00:10:54,800 --> 00:10:57,600 Speaker 1: and to talk through the other implications. Yeah, and Matt, 238 00:10:57,679 --> 00:11:00,400 Speaker 1: I think, yeah, taxes when you think about it, generally, 239 00:11:00,440 --> 00:11:03,240 Speaker 1: apart from a cool podcast like this there, it's a 240 00:11:03,240 --> 00:11:06,360 Speaker 1: boring subject. But that's our job. That's what we're into 241 00:11:06,640 --> 00:11:10,360 Speaker 1: is trying to make the potentially boring subject interesting, relevant 242 00:11:10,360 --> 00:11:13,640 Speaker 1: and fun. And speaking of relevance, man, taxes are so 243 00:11:13,800 --> 00:11:16,280 Speaker 1: relevant to every single one of us, and there are 244 00:11:16,360 --> 00:11:18,840 Speaker 1: got to pay them right death and taxes super certain 245 00:11:18,880 --> 00:11:21,760 Speaker 1: and we talked about that in last week's episode, that 246 00:11:21,760 --> 00:11:23,559 Speaker 1: that there are pretty much a certainty, but there are 247 00:11:23,600 --> 00:11:26,560 Speaker 1: so many ways that you can, if you're smart and thoughtful, 248 00:11:26,720 --> 00:11:30,079 Speaker 1: lower your income you're adjusted gross income in order to 249 00:11:30,120 --> 00:11:32,400 Speaker 1: pay fewer taxes. And so that's kind of part of 250 00:11:32,400 --> 00:11:33,920 Speaker 1: the gist of the show as well. It's like, hey, 251 00:11:33,920 --> 00:11:37,880 Speaker 1: how can you take advantage of the existing structure, the 252 00:11:37,920 --> 00:11:40,880 Speaker 1: existing tax structure in this country to maximize you know, 253 00:11:40,920 --> 00:11:43,920 Speaker 1: credits and deductions in order to make sure that you're 254 00:11:43,920 --> 00:11:46,120 Speaker 1: not paying more than you need to be. And so 255 00:11:46,120 --> 00:11:49,880 Speaker 1: now we're gonna talk about who should consider itemizing their taxes. 256 00:11:50,200 --> 00:11:52,480 Speaker 1: The standard deduction is the default. You've always got that, 257 00:11:52,559 --> 00:11:54,160 Speaker 1: but if you want to break it down even more, 258 00:11:54,160 --> 00:11:58,120 Speaker 1: you can itemize, except if you're married, you have to 259 00:11:58,160 --> 00:12:01,040 Speaker 1: do whatever your spouse does. That one instance where you 260 00:12:01,080 --> 00:12:03,160 Speaker 1: don't have a choice. So if you have a spouse 261 00:12:03,520 --> 00:12:06,360 Speaker 1: and they are filing individually, well you're gonna have to 262 00:12:06,440 --> 00:12:09,040 Speaker 1: file individually as well. First off, if you own a 263 00:12:09,080 --> 00:12:12,240 Speaker 1: home with a mortgage, especially if you have rental properties, 264 00:12:12,520 --> 00:12:15,960 Speaker 1: you could easily exceed the standard deduction. And so you know, 265 00:12:16,000 --> 00:12:20,240 Speaker 1: with mortgage interests and with real estate property taxes. That alone, 266 00:12:20,320 --> 00:12:22,679 Speaker 1: right there could get you halfway to that standard deduction. 267 00:12:22,920 --> 00:12:24,800 Speaker 1: That's the first thing that you're gonna want to consider 268 00:12:25,000 --> 00:12:27,640 Speaker 1: this time of year. You've got your t that your 269 00:12:27,679 --> 00:12:30,960 Speaker 1: banks or your mortgage holders are mailing out. Hopefully by 270 00:12:30,960 --> 00:12:33,000 Speaker 1: now you've got yours. But that is the form that 271 00:12:33,000 --> 00:12:35,040 Speaker 1: you're gonna want to look at. That tells you what 272 00:12:35,120 --> 00:12:37,480 Speaker 1: your mortgage interest is as as well as what your 273 00:12:37,480 --> 00:12:40,960 Speaker 1: property taxes as well. Also, you're able to itemize interest 274 00:12:41,000 --> 00:12:43,240 Speaker 1: that you paid on a home equity line of credit 275 00:12:43,440 --> 00:12:46,920 Speaker 1: or a construction loan, but only if you can prove 276 00:12:47,160 --> 00:12:50,439 Speaker 1: that you increased value to your residents. So that is 277 00:12:50,480 --> 00:12:53,080 Speaker 1: a change in this tax law. Before the Tax Cuts 278 00:12:53,120 --> 00:12:56,320 Speaker 1: and Jobs Act was written into law, you could write 279 00:12:56,320 --> 00:12:58,840 Speaker 1: off the interest paid on a home equity line of credit. 280 00:12:58,920 --> 00:13:01,080 Speaker 1: But now you have to be able to prove that 281 00:13:01,160 --> 00:13:03,719 Speaker 1: you didn't just use your home equity line to take 282 00:13:03,720 --> 00:13:06,320 Speaker 1: a vacation and buy some new clothes. You have to 283 00:13:06,600 --> 00:13:09,400 Speaker 1: actually have improved the physical residents that you live in. 284 00:13:09,679 --> 00:13:12,160 Speaker 1: That's one caveat in this new tax law. Yeah, or 285 00:13:12,200 --> 00:13:14,319 Speaker 1: even if you use that loan for something more noble, right, 286 00:13:14,320 --> 00:13:15,920 Speaker 1: like to put your kid through you know, like a 287 00:13:16,000 --> 00:13:18,120 Speaker 1: nice college or something like that. It's kind of a bummer. 288 00:13:18,440 --> 00:13:20,600 Speaker 1: But yeah, fact is they want to see that you've 289 00:13:20,720 --> 00:13:23,880 Speaker 1: taken that loan out specifically for the increase to your residence. 290 00:13:24,400 --> 00:13:26,760 Speaker 1: Something else to mention that happened as well with the 291 00:13:26,840 --> 00:13:29,840 Speaker 1: Tax Cuts and Jobs Act. Doesn't that just roll off 292 00:13:29,840 --> 00:13:33,320 Speaker 1: the tongue, Joel, It's so easy to say. But there's 293 00:13:33,360 --> 00:13:36,800 Speaker 1: a new ten thousand dollar cap on property tax due 294 00:13:36,840 --> 00:13:39,160 Speaker 1: to the new federal law. So if you get that 295 00:13:39,160 --> 00:13:42,040 Speaker 1: to ninety eight and it has your mortgage interests and 296 00:13:42,559 --> 00:13:45,040 Speaker 1: buy a chance your property taxes are more than ten 297 00:13:45,040 --> 00:13:47,760 Speaker 1: thousand dollars, well it doesn't matter because there's a cap 298 00:13:47,760 --> 00:13:49,920 Speaker 1: at ten thousand. And the other thing too, man, is 299 00:13:49,960 --> 00:13:53,440 Speaker 1: that that's the total between your state, local and property 300 00:13:53,480 --> 00:13:57,640 Speaker 1: taxes collectively. And so that's sort of a downside to 301 00:13:57,720 --> 00:13:59,640 Speaker 1: the new law is that you'll be able to itemize 302 00:13:59,760 --> 00:14:03,439 Speaker 1: less of that. It's called salt rights, state and local 303 00:14:03,480 --> 00:14:05,640 Speaker 1: tax Yeah, that's something to be aware of when you're 304 00:14:05,640 --> 00:14:07,440 Speaker 1: doing the quick math here to to figure out if 305 00:14:07,480 --> 00:14:10,360 Speaker 1: you should automize your deductions and so, in particular for 306 00:14:10,480 --> 00:14:13,480 Speaker 1: real estate investors, it's likely that you have loans associated 307 00:14:13,520 --> 00:14:15,880 Speaker 1: with your properties and potentially a line of credit or 308 00:14:15,880 --> 00:14:19,080 Speaker 1: something like that as well. And in addition to that 309 00:14:19,480 --> 00:14:24,280 Speaker 1: interest that you're paying, you can also deduct depreciation, operating expenses, 310 00:14:24,360 --> 00:14:27,560 Speaker 1: and repairs. So real estate investors really do, honestly have 311 00:14:27,600 --> 00:14:29,200 Speaker 1: it have it good. They've had it good for a 312 00:14:29,200 --> 00:14:31,600 Speaker 1: long time under the tax code, and that continues to 313 00:14:31,600 --> 00:14:33,960 Speaker 1: be the case. So if you own a home with 314 00:14:34,000 --> 00:14:37,520 Speaker 1: a mortgage, consider atomizing your taxes. Also, if you have 315 00:14:37,600 --> 00:14:42,200 Speaker 1: paid some huge medical bills, and consider itemizing your taxes. 316 00:14:42,600 --> 00:14:44,520 Speaker 1: The only downside to this, though, is that you can 317 00:14:44,560 --> 00:14:48,400 Speaker 1: only deduct your medical bills once they've exceeded seven and 318 00:14:48,440 --> 00:14:53,240 Speaker 1: a half percent of your adjusted gross income foren For example, 319 00:14:53,360 --> 00:14:56,520 Speaker 1: if you had an adjusted gross income of fifty thousand, 320 00:14:56,920 --> 00:15:00,280 Speaker 1: that means the first three thousand, seven hundred fifty ours 321 00:15:00,920 --> 00:15:04,200 Speaker 1: that you've paid towards medical bills effectively don't count. And 322 00:15:04,240 --> 00:15:06,880 Speaker 1: so once you get past that threshold, anything that you 323 00:15:06,920 --> 00:15:10,880 Speaker 1: pay beyond fifty you can deduct every single dollar of that. 324 00:15:11,680 --> 00:15:13,840 Speaker 1: But before you go through all your doctor's bills and 325 00:15:13,840 --> 00:15:16,800 Speaker 1: prescription receipts, you know, do the quick math, make sure 326 00:15:16,840 --> 00:15:19,080 Speaker 1: it's worth it, yeah, Matt. And also you can deduct 327 00:15:19,120 --> 00:15:21,680 Speaker 1: your health insurance premiums, but only if they were paid 328 00:15:21,680 --> 00:15:24,160 Speaker 1: with after tax money. So it's really important for people 329 00:15:24,160 --> 00:15:27,320 Speaker 1: to consider if they did have a more expensive health 330 00:15:27,360 --> 00:15:29,800 Speaker 1: care policy, even if they got it through the exchange. 331 00:15:30,000 --> 00:15:32,240 Speaker 1: That could be one quick check mark in the column 332 00:15:32,320 --> 00:15:35,280 Speaker 1: of it being much more likely that it's better for 333 00:15:35,320 --> 00:15:37,960 Speaker 1: you to itemize as opposed to taking the new standard deduction. 334 00:15:38,200 --> 00:15:41,960 Speaker 1: And another huge potential deduction is charitable giving. Just keep 335 00:15:42,000 --> 00:15:44,040 Speaker 1: in mind that this has to be to an actual 336 00:15:44,200 --> 00:15:47,680 Speaker 1: five oh one c three, not just some organization or 337 00:15:47,760 --> 00:15:50,480 Speaker 1: political party or an individual that you decide to give 338 00:15:50,520 --> 00:15:53,560 Speaker 1: money to. That does not count to me, giving you 339 00:15:53,640 --> 00:15:55,520 Speaker 1: like all that money last week, that doesn't count. I 340 00:15:55,560 --> 00:15:58,760 Speaker 1: think that falls under the category of one time annual gift, 341 00:15:59,400 --> 00:16:01,400 Speaker 1: which I believe it is that fourteen thousand. That's true 342 00:16:01,440 --> 00:16:03,080 Speaker 1: where it used to be. But yeah, so keep that 343 00:16:03,120 --> 00:16:06,600 Speaker 1: in mind. You can do either cash contributions or even 344 00:16:06,640 --> 00:16:10,000 Speaker 1: non cash contributions like cars, you know, different things like that. 345 00:16:10,120 --> 00:16:12,560 Speaker 1: Have you ever donated something big like a car or 346 00:16:12,560 --> 00:16:16,520 Speaker 1: a boat? It's a goodwill. No no boats, no boats, 347 00:16:16,720 --> 00:16:18,840 Speaker 1: no cars either. And actually, just on that note, if 348 00:16:18,880 --> 00:16:21,960 Speaker 1: someone is thinking about donating a car for tax purposes, 349 00:16:22,160 --> 00:16:23,960 Speaker 1: the I R. S is really cracked down on recent 350 00:16:24,000 --> 00:16:27,800 Speaker 1: in recent years on on car contributions, and so it's 351 00:16:27,840 --> 00:16:30,600 Speaker 1: actually would in all likelihood be better for you to 352 00:16:30,720 --> 00:16:33,040 Speaker 1: sell the car, take the money from that, and then 353 00:16:33,080 --> 00:16:35,960 Speaker 1: donate that money to a charity of your choice as 354 00:16:35,960 --> 00:16:38,880 Speaker 1: opposed to donating the car. And actually many times it's 355 00:16:38,880 --> 00:16:41,600 Speaker 1: better for the charity as well, because a car that's 356 00:16:41,640 --> 00:16:44,400 Speaker 1: not working on whatever that there's so many logistics involved 357 00:16:44,440 --> 00:16:45,920 Speaker 1: in that, like what do we do with this? Yeah, 358 00:16:45,960 --> 00:16:47,840 Speaker 1: I don't want this old Nissan. But the the i 359 00:16:47,920 --> 00:16:50,960 Speaker 1: RS is really cracked down on what they're allowing you 360 00:16:51,080 --> 00:16:53,080 Speaker 1: to write off when it comes to a car donation. 361 00:16:53,400 --> 00:16:56,280 Speaker 1: And so those are the three biggest things to consider 362 00:16:56,640 --> 00:16:58,800 Speaker 1: if you have a mortgage on a house, big old 363 00:16:58,800 --> 00:17:02,600 Speaker 1: medical bills, and charitable giving. Quickly do the math on 364 00:17:02,760 --> 00:17:05,679 Speaker 1: those three categories, and if you exceeded your threshold, you 365 00:17:05,680 --> 00:17:08,040 Speaker 1: know on what you would receive with a standard deduction. 366 00:17:08,520 --> 00:17:11,679 Speaker 1: You want to seriously consider itemizing your taxes because chances 367 00:17:11,720 --> 00:17:14,560 Speaker 1: are you're gonna be able to find some additional deductions 368 00:17:15,040 --> 00:17:17,760 Speaker 1: that we're not mentioning here. There's there's lots more. These 369 00:17:17,800 --> 00:17:20,280 Speaker 1: are the three that you should consider when you're kind 370 00:17:20,280 --> 00:17:22,480 Speaker 1: of weighing the options as to whether you should take 371 00:17:22,520 --> 00:17:25,480 Speaker 1: the standard deduction or if you should itemize your taxes. Yeah, 372 00:17:25,520 --> 00:17:27,960 Speaker 1: do the quick general back of the envelope math to 373 00:17:27,960 --> 00:17:30,440 Speaker 1: see if you're anywhere close, and then if you are, 374 00:17:30,800 --> 00:17:32,920 Speaker 1: if you are close to that either twelve thousand or 375 00:17:32,920 --> 00:17:36,359 Speaker 1: twenty four thousand dollar number, whether you're filing single or 376 00:17:36,720 --> 00:17:38,879 Speaker 1: or filing as a married couple, if you find yourself 377 00:17:38,880 --> 00:17:40,520 Speaker 1: in that ballpark, that's when you're gonna want to do 378 00:17:40,560 --> 00:17:43,119 Speaker 1: the specific math in order to make sure that you 379 00:17:43,160 --> 00:17:46,439 Speaker 1: are filing taxes the best way for you. Honestly, to 380 00:17:46,480 --> 00:17:47,960 Speaker 1: a lot of folks, that sounds like a lot of work. 381 00:17:48,040 --> 00:17:49,440 Speaker 1: They're like, well, how am I supposed to do quick 382 00:17:49,480 --> 00:17:51,920 Speaker 1: math and figure out these things? And Man, what I 383 00:17:51,960 --> 00:17:54,920 Speaker 1: would say to that is, this is a huge argument 384 00:17:55,240 --> 00:17:57,520 Speaker 1: for tracking your spending because at the end of the year, 385 00:17:57,560 --> 00:18:00,000 Speaker 1: if you've been tracking your spending, you can quickly see 386 00:18:00,240 --> 00:18:03,880 Speaker 1: how much you've paid towards your insurance premiums as well 387 00:18:03,920 --> 00:18:06,240 Speaker 1: as to your medical payments. When it comes to your 388 00:18:06,280 --> 00:18:08,160 Speaker 1: house or your mortgage, you'll receive it to ninety eight, 389 00:18:08,200 --> 00:18:10,919 Speaker 1: so you'll easily be able to see what your interest 390 00:18:10,920 --> 00:18:13,520 Speaker 1: payments were and you'll also see what your s grow 391 00:18:13,560 --> 00:18:15,840 Speaker 1: paid towards your property taxes. And then the same thing 392 00:18:15,840 --> 00:18:18,000 Speaker 1: with the charitable giving. If you have been tracking your spending, 393 00:18:18,080 --> 00:18:20,119 Speaker 1: you should be able to easily add up at the 394 00:18:20,200 --> 00:18:22,160 Speaker 1: end of the year and see how much you've given 395 00:18:22,200 --> 00:18:24,520 Speaker 1: away and those three or four numbers. I guess the 396 00:18:24,520 --> 00:18:27,040 Speaker 1: mortgage has two numbers. You can add those together and yeah, 397 00:18:27,080 --> 00:18:30,200 Speaker 1: and quickly see how close you are to that standard deduction. Yeah, Matt, 398 00:18:30,240 --> 00:18:33,600 Speaker 1: and I think one important tip that actually really changed 399 00:18:33,640 --> 00:18:36,080 Speaker 1: for people the way that their behavior is, especially the 400 00:18:36,080 --> 00:18:38,760 Speaker 1: way that they consider their charitable giving, is if you're 401 00:18:38,760 --> 00:18:41,080 Speaker 1: anywhere close to that threshold but you're not over it, 402 00:18:41,280 --> 00:18:44,959 Speaker 1: consider bunching your deductions and itemizing that year. And then 403 00:18:45,000 --> 00:18:47,639 Speaker 1: the next year you have fewer itemized deductions, and so 404 00:18:47,760 --> 00:18:49,879 Speaker 1: you just take the standard deduction. And the way that 405 00:18:49,920 --> 00:18:51,600 Speaker 1: most people are going to be able to accomplish that, 406 00:18:51,640 --> 00:18:54,080 Speaker 1: because you can't usually change the amount of interest you're 407 00:18:54,080 --> 00:18:57,359 Speaker 1: paying on your mortgage, right, is to bunch your charitable giving. 408 00:18:57,600 --> 00:19:00,880 Speaker 1: And so let's say you're at roughly turs in deductions 409 00:19:00,880 --> 00:19:03,760 Speaker 1: as a married couple, will consider taking the standard deduction 410 00:19:03,920 --> 00:19:07,439 Speaker 1: this year and giving less to charity in nineteen and 411 00:19:07,480 --> 00:19:11,240 Speaker 1: in give two years worth at the same time and itemized. 412 00:19:11,400 --> 00:19:13,399 Speaker 1: So that's one way that people are approaching this new 413 00:19:13,440 --> 00:19:15,960 Speaker 1: tax law is kind of by bunching their giving. And 414 00:19:16,000 --> 00:19:17,959 Speaker 1: you and I were huge fans of generosity. We think 415 00:19:18,000 --> 00:19:21,080 Speaker 1: it's really important. It's really important for us psychologically as 416 00:19:21,119 --> 00:19:23,360 Speaker 1: we think about our money. And we did an episode 417 00:19:23,359 --> 00:19:25,320 Speaker 1: on that back in the day, and so you know, 418 00:19:25,480 --> 00:19:28,120 Speaker 1: we're not encouraging people not to give or not generously, 419 00:19:28,440 --> 00:19:31,000 Speaker 1: but we are saying it might make sense. And I 420 00:19:31,040 --> 00:19:33,159 Speaker 1: did this right when the tax law was signed. I 421 00:19:33,200 --> 00:19:35,639 Speaker 1: gave an extra lump sum of what I knew I 422 00:19:35,680 --> 00:19:38,159 Speaker 1: was going to give that following year, uh to to 423 00:19:38,160 --> 00:19:40,840 Speaker 1: to a nonprofit organization. I gave it in one fell 424 00:19:40,880 --> 00:19:43,639 Speaker 1: swoop that December because I just wasn't sure whether I 425 00:19:43,680 --> 00:19:45,760 Speaker 1: was gonna be able to itemize or take the standard 426 00:19:45,800 --> 00:19:47,639 Speaker 1: deduction the following year, and I just wanted to make 427 00:19:47,680 --> 00:19:49,440 Speaker 1: sure that I got it in there before that tax 428 00:19:49,520 --> 00:19:51,720 Speaker 1: law changed. Yeah, And so another example of that, Joel, 429 00:19:51,840 --> 00:19:53,680 Speaker 1: is that you know, say, you know that you are 430 00:19:53,680 --> 00:19:56,320 Speaker 1: going to itemize this tax twenty nineteen, so you're gonna 431 00:19:56,359 --> 00:19:58,840 Speaker 1: give like you normally would in twenty nineteen, but then 432 00:19:59,040 --> 00:20:02,600 Speaker 1: you're gonna give your why twenty contributions to charitable giving, 433 00:20:02,800 --> 00:20:05,760 Speaker 1: say in December, right right before the year ends, And 434 00:20:05,800 --> 00:20:08,080 Speaker 1: so that way it impacts the organization less as well, 435 00:20:08,080 --> 00:20:09,600 Speaker 1: because it's you know, closer to the end of the year, 436 00:20:09,680 --> 00:20:13,640 Speaker 1: is closer tow but it still falls on the nineteen 437 00:20:13,640 --> 00:20:16,760 Speaker 1: tax year, um. And so yeah, bunching it's great. It's 438 00:20:16,760 --> 00:20:19,000 Speaker 1: great for a charitable giving. Another way that you can 439 00:20:19,000 --> 00:20:22,600 Speaker 1: consider bunching as well as with medical expenses. If you 440 00:20:22,640 --> 00:20:26,320 Speaker 1: have some flexibility when it comes to an expensive procedure, 441 00:20:26,760 --> 00:20:29,680 Speaker 1: say dental work, or maybe you have like a partially 442 00:20:29,680 --> 00:20:31,439 Speaker 1: torn a c L or something like that, Well, we 443 00:20:31,480 --> 00:20:33,720 Speaker 1: know you would never get them to work done. So 444 00:20:34,320 --> 00:20:36,359 Speaker 1: I'm just gonna live with that partially torn a c 445 00:20:36,480 --> 00:20:38,720 Speaker 1: L for the rest of my life and jacked up too. 446 00:20:39,880 --> 00:20:41,840 Speaker 1: But you know a lot of times some of those 447 00:20:41,880 --> 00:20:45,119 Speaker 1: procedures and surgeries you can put off. I know guys 448 00:20:45,400 --> 00:20:47,520 Speaker 1: that play sports and they've got a jacked up shoulder 449 00:20:47,520 --> 00:20:48,920 Speaker 1: and they're living with that for a couple of years. 450 00:20:48,960 --> 00:20:50,800 Speaker 1: So there's some flexibility when it comes to when am 451 00:20:50,800 --> 00:20:53,439 Speaker 1: I actually gonna have this procedure finally done? And so 452 00:20:53,480 --> 00:20:55,800 Speaker 1: if you know that there's gonna be a specific year 453 00:20:56,119 --> 00:20:58,800 Speaker 1: that you probably are going to have some more medical expenses, 454 00:20:58,840 --> 00:21:01,040 Speaker 1: that you might have some more charitable living well. Like 455 00:21:01,040 --> 00:21:03,840 Speaker 1: like we said, bunch all that that that one year, right, 456 00:21:04,080 --> 00:21:07,160 Speaker 1: So let's say so it's nine. Now, let's say, okay, 457 00:21:07,240 --> 00:21:10,600 Speaker 1: let's try to put off that procedure, that medical procedure. 458 00:21:11,000 --> 00:21:14,560 Speaker 1: If you can last until man, make twenty the year 459 00:21:14,560 --> 00:21:16,800 Speaker 1: that you get all the work done, you get your 460 00:21:16,800 --> 00:21:19,240 Speaker 1: teeth fixed, you do the medical procedures, that's when you 461 00:21:19,280 --> 00:21:21,920 Speaker 1: double up on your charitable giving. I mean, it sounds 462 00:21:21,920 --> 00:21:23,919 Speaker 1: funny to talk about this, right, that we would be 463 00:21:23,960 --> 00:21:26,680 Speaker 1: strategic about our giving and that we would be strategic 464 00:21:26,720 --> 00:21:29,719 Speaker 1: about our medical expenses. But these are all things to consider. 465 00:21:29,760 --> 00:21:32,080 Speaker 1: And if it honestly, if it doesn't really hurt, literally, 466 00:21:32,640 --> 00:21:34,159 Speaker 1: if it doesn't hurt that much for you to to 467 00:21:34,320 --> 00:21:37,199 Speaker 1: to put off, consider doing that. Because you might one 468 00:21:37,280 --> 00:21:39,720 Speaker 1: year take the standard deduction, get that twenty four thousand 469 00:21:39,760 --> 00:21:42,480 Speaker 1: as a married couple or twelve thousand, say as an individual. 470 00:21:42,880 --> 00:21:44,439 Speaker 1: But then the next year you might be able to 471 00:21:44,480 --> 00:21:47,480 Speaker 1: blow that standard deduction out of the water and drastically 472 00:21:47,560 --> 00:21:51,640 Speaker 1: decrease your adjusted gross income, which effectively reduces how much 473 00:21:51,720 --> 00:21:54,879 Speaker 1: taxes you're gonna pay. Yeah, So bunching is just a 474 00:21:54,960 --> 00:21:57,720 Speaker 1: great way to consider your taxes and and just start 475 00:21:57,760 --> 00:22:00,200 Speaker 1: thinking to planning ahead, planning for the future. Am I 476 00:22:00,240 --> 00:22:01,800 Speaker 1: gonna get that surgery? How much do I want to 477 00:22:01,800 --> 00:22:03,359 Speaker 1: give this year? How much do I want to give 478 00:22:03,400 --> 00:22:05,000 Speaker 1: over the next three years? And then how am I 479 00:22:05,000 --> 00:22:07,000 Speaker 1: going to spread it out? Did all this talk about 480 00:22:07,280 --> 00:22:10,639 Speaker 1: bunching makes me think of honey bunches of Votes? Did 481 00:22:10,680 --> 00:22:13,800 Speaker 1: you ever eat that? Now? It's pourable right now? That 482 00:22:13,960 --> 00:22:16,720 Speaker 1: was like my all time favorite cereal in college? That's 483 00:22:16,760 --> 00:22:19,320 Speaker 1: your all time favorite cereal? Yes? Did you live in 484 00:22:19,400 --> 00:22:21,720 Speaker 1: deprived childhood? Now? I would I would much rather take 485 00:22:21,760 --> 00:22:25,160 Speaker 1: honey bunch of Votes over cinnamon toastcrunch because as a child, 486 00:22:25,240 --> 00:22:27,239 Speaker 1: that's what I grew up eating. Are you kidding me this? 487 00:22:28,040 --> 00:22:29,320 Speaker 1: I feel like I need to walk away from this 488 00:22:29,320 --> 00:22:32,480 Speaker 1: podcast episode right now? What do you eat as a kid? Well, okay, 489 00:22:32,480 --> 00:22:36,200 Speaker 1: so we weren't able to have the terrible cereals often, 490 00:22:36,320 --> 00:22:38,159 Speaker 1: but I love me some cocoa puffs, I love me 491 00:22:38,200 --> 00:22:41,560 Speaker 1: some tricks obviously, cinnamon toast crunch, yeah, that's that's all 492 00:22:41,560 --> 00:22:45,159 Speaker 1: sugar though, and occasionally cookie crisp. Okay, yeah, wait, we 493 00:22:45,200 --> 00:22:49,560 Speaker 1: did the cookie Crisp. They had the good commercials, cool Crisp. 494 00:22:50,800 --> 00:22:53,240 Speaker 1: I still remember that giant but honey bunch of votes. Man, 495 00:22:53,280 --> 00:22:55,400 Speaker 1: I rock that so hard. In college, you would have 496 00:22:55,480 --> 00:22:58,639 Speaker 1: your favorite cereal would be a healthy one. It's not healthy. 497 00:22:58,640 --> 00:23:01,160 Speaker 1: It's super sugary. It has the flip favor of like oats, 498 00:23:01,200 --> 00:23:03,399 Speaker 1: but it's sweet. Oh, it's kind of like beer. Honestly, 499 00:23:03,400 --> 00:23:05,400 Speaker 1: it's kind of like ODI and kind of grainy and 500 00:23:05,600 --> 00:23:09,199 Speaker 1: multi good stuff. I'll take that under consideration. All right, 501 00:23:09,240 --> 00:23:11,720 Speaker 1: So after the break, Matt, let's get to my favorite 502 00:23:11,720 --> 00:23:14,560 Speaker 1: part of this episode. The tax credits. And tax credits 503 00:23:14,600 --> 00:23:17,800 Speaker 1: can make a major impact on the final amount that 504 00:23:17,800 --> 00:23:19,880 Speaker 1: you pay every year to the federal government. So we'll 505 00:23:19,880 --> 00:23:30,399 Speaker 1: get to that right after this, all right, Joel, like 506 00:23:30,440 --> 00:23:34,480 Speaker 1: you mentioned, let's dive now into tax credits. So far 507 00:23:34,680 --> 00:23:37,560 Speaker 1: this episode, we've been talking about itemizing, We've been talking 508 00:23:37,600 --> 00:23:41,160 Speaker 1: about actual deductions. Now we're gonna talk about tax credits. 509 00:23:41,440 --> 00:23:44,040 Speaker 1: These are credits that you can take regardless if you 510 00:23:44,080 --> 00:23:47,280 Speaker 1: itemize your taxes or if you take the standard deduction. 511 00:23:47,600 --> 00:23:49,960 Speaker 1: And so the biggest difference between a tax deduction though 512 00:23:50,320 --> 00:23:53,800 Speaker 1: versus a tax credit, is that deductions reduced the income 513 00:23:53,880 --> 00:23:57,320 Speaker 1: that you pay taxes on, which you know, then reduces 514 00:23:57,320 --> 00:24:01,040 Speaker 1: the amount of taxes that you owe, while credits themselves 515 00:24:01,320 --> 00:24:04,439 Speaker 1: directly reduced the amount of taxes you owe. And so 516 00:24:04,560 --> 00:24:08,240 Speaker 1: this is a literal dollar for dollar reduction on your 517 00:24:08,240 --> 00:24:11,240 Speaker 1: tax bill, which has a much larger impact. Yeah, And 518 00:24:11,240 --> 00:24:14,280 Speaker 1: tax credits change over time. Right. They They are often 519 00:24:14,480 --> 00:24:17,240 Speaker 1: incentives at the federal government or your local and state 520 00:24:17,280 --> 00:24:21,719 Speaker 1: government put into place to incentivize certain behavior. So, for instance, 521 00:24:21,760 --> 00:24:24,240 Speaker 1: there was the there was an eight thousand dollar tax 522 00:24:24,240 --> 00:24:26,760 Speaker 1: credit to people that bought a home back in two 523 00:24:26,760 --> 00:24:29,560 Speaker 1: thousand and nine. And there's an electric vehicle tax credit 524 00:24:29,600 --> 00:24:31,800 Speaker 1: for people to buy e v s, but that just 525 00:24:31,920 --> 00:24:34,440 Speaker 1: got reduced recently. Right. There are tax credits for people 526 00:24:34,440 --> 00:24:37,560 Speaker 1: to buy solar panels. They're all sorts of tax credits, 527 00:24:37,760 --> 00:24:40,159 Speaker 1: and they change over time, and sometimes the amount that 528 00:24:40,160 --> 00:24:42,240 Speaker 1: they pay out gets reduced over time based on how 529 00:24:42,240 --> 00:24:44,840 Speaker 1: many people will have qualified for that tax credit. Will 530 00:24:44,880 --> 00:24:46,760 Speaker 1: go through some of the most common ones that kind 531 00:24:46,760 --> 00:24:48,800 Speaker 1: of have hung around through the years and help you 532 00:24:48,840 --> 00:24:51,000 Speaker 1: kind of understand them and get an idea as to 533 00:24:51,000 --> 00:24:53,040 Speaker 1: whether or not you might qualify. Ye man, and real quick, 534 00:24:53,040 --> 00:24:55,199 Speaker 1: I wanted to mention. How So, tax credits they can 535 00:24:55,200 --> 00:24:58,800 Speaker 1: either be nonrefundable or refundable, right, and so if they're 536 00:24:58,840 --> 00:25:02,320 Speaker 1: only nonrefundable, that means they only will decrease the amount 537 00:25:02,320 --> 00:25:06,280 Speaker 1: of the tax that you owe. Versus refundable tax credits, 538 00:25:06,640 --> 00:25:09,160 Speaker 1: they actually add to the amount that you get back. 539 00:25:09,640 --> 00:25:12,320 Speaker 1: And so an example of that one is the earned 540 00:25:12,320 --> 00:25:14,720 Speaker 1: Income tax Credit, and this is a tax credit that 541 00:25:14,760 --> 00:25:16,760 Speaker 1: you can take advantage of if you have a job, 542 00:25:16,800 --> 00:25:19,240 Speaker 1: but maybe you are only earning a you know, a 543 00:25:19,320 --> 00:25:22,240 Speaker 1: low to mid income salary. An example of this though, 544 00:25:22,280 --> 00:25:24,760 Speaker 1: is that say you're single and you've got one kid, 545 00:25:25,359 --> 00:25:28,080 Speaker 1: and then as if you make less than forty dollars, 546 00:25:28,680 --> 00:25:32,119 Speaker 1: you can get up to thirty dollars in credits. And 547 00:25:32,160 --> 00:25:35,080 Speaker 1: again this is a refundable tax credit. So say you 548 00:25:35,160 --> 00:25:37,919 Speaker 1: owe actually zero dollars on your tax bill and you 549 00:25:38,000 --> 00:25:41,119 Speaker 1: qualify for this specific version of this credit, that means 550 00:25:41,160 --> 00:25:43,600 Speaker 1: you're gonna get a check for thirty four hundred dollars, 551 00:25:43,640 --> 00:25:46,280 Speaker 1: which is huge. It's I mean, it's free money. It's 552 00:25:46,280 --> 00:25:49,439 Speaker 1: it's amazing. Another example is the Lifetime Learning Credit, and 553 00:25:49,440 --> 00:25:52,119 Speaker 1: this is available to pretty much anybody that's going to 554 00:25:52,920 --> 00:25:55,960 Speaker 1: like higher education, and you can get credit for of 555 00:25:56,040 --> 00:25:59,000 Speaker 1: the first ten thousand dollars that you spend on higher education. 556 00:25:59,240 --> 00:26:02,080 Speaker 1: So in that example, you get two thousand dollars credited. 557 00:26:02,240 --> 00:26:04,480 Speaker 1: And keep in mind this is to your final tax bill, 558 00:26:04,680 --> 00:26:07,760 Speaker 1: and so it doesn't reduce your adjusted gross income down 559 00:26:07,840 --> 00:26:11,440 Speaker 1: two thousand dollars. This has an impact on the amount 560 00:26:11,480 --> 00:26:14,280 Speaker 1: that you oh in the end, which is so much better. Yeah. 561 00:26:14,320 --> 00:26:16,600 Speaker 1: So if you owe three thousand dollars and you qualify 562 00:26:16,760 --> 00:26:20,080 Speaker 1: for this lifetime learning tax credit and you max that out, boom, 563 00:26:20,080 --> 00:26:22,600 Speaker 1: your tax bill just went from three thousand dollars down 564 00:26:22,600 --> 00:26:25,600 Speaker 1: to one Like that is huge. That is huge. Yeah, 565 00:26:25,640 --> 00:26:28,480 Speaker 1: and let's cover my favorite tax credit map, the retirement 566 00:26:28,520 --> 00:26:30,680 Speaker 1: Savers tax credit. I figured that was gonna be your favorite. 567 00:26:31,440 --> 00:26:35,320 Speaker 1: So again, often these tax credits are mostly created for 568 00:26:35,640 --> 00:26:39,000 Speaker 1: low to low to middle income folks, and the retirement 569 00:26:39,000 --> 00:26:41,879 Speaker 1: Savers tax credit, depending on the amount of dependence that 570 00:26:41,960 --> 00:26:44,680 Speaker 1: you have, is also typically targeted towards those folks as well. 571 00:26:44,760 --> 00:26:47,120 Speaker 1: And you can earn a tax credit based on ten 572 00:26:47,240 --> 00:26:50,320 Speaker 1: to fifty percent of the amount that you contributed towards 573 00:26:50,520 --> 00:26:52,920 Speaker 1: your retirement accounts at the end of the year from 574 00:26:52,960 --> 00:26:55,600 Speaker 1: the federal government. And so I think even a family 575 00:26:55,600 --> 00:26:59,199 Speaker 1: of four with a moderate income can qualify for this 576 00:26:59,280 --> 00:27:02,040 Speaker 1: savers tax credit and can potentially essentially get free money 577 00:27:02,080 --> 00:27:05,200 Speaker 1: from the government to incentivize their retirement savings, which is 578 00:27:05,240 --> 00:27:07,639 Speaker 1: super cool. Yeah, man, like get that tim percent bonus 579 00:27:07,720 --> 00:27:10,800 Speaker 1: on your on your taxes, right, and so yeah, some 580 00:27:10,840 --> 00:27:13,600 Speaker 1: specific numbers for that, right. So let's pretend you're married, 581 00:27:14,080 --> 00:27:16,399 Speaker 1: and if you have an adjusted gross income less than 582 00:27:16,480 --> 00:27:19,200 Speaker 1: thirty eight thousand dollars, which isn't a ton in that instance, 583 00:27:19,600 --> 00:27:21,960 Speaker 1: you can get a tax credit of fifty percent of 584 00:27:22,000 --> 00:27:25,679 Speaker 1: your contributions fifty percent, which is huge, right, So you 585 00:27:25,720 --> 00:27:30,520 Speaker 1: contribute five thousand dollars, you're getting a tax credits at 586 00:27:30,520 --> 00:27:32,840 Speaker 1: the end of the year, and it's there to to 587 00:27:32,880 --> 00:27:35,840 Speaker 1: modify behavior, like you mentioned, Joel, to incentivize and it's 588 00:27:35,840 --> 00:27:37,959 Speaker 1: there to help folks out. Yeah, And so there are 589 00:27:38,040 --> 00:27:39,840 Speaker 1: lots of other tax credits. We can't go into all 590 00:27:39,880 --> 00:27:42,639 Speaker 1: of them, but there's one four people that adopt. There 591 00:27:42,640 --> 00:27:45,679 Speaker 1: are other tax credits for people pursuing education. And there 592 00:27:45,680 --> 00:27:47,600 Speaker 1: are also a lot of different tax credits for people 593 00:27:47,680 --> 00:27:52,359 Speaker 1: pursuing home energy efficiency. And I believe twenty nineteen is 594 00:27:52,400 --> 00:27:54,560 Speaker 1: the last year to get the full tax credit for 595 00:27:54,640 --> 00:27:57,200 Speaker 1: putting solar panels on your home. Every year from here 596 00:27:57,240 --> 00:27:59,840 Speaker 1: on out, the tax credit for solar panels is going 597 00:27:59,880 --> 00:28:01,840 Speaker 1: to down, And like I said, that's kind of the 598 00:28:01,880 --> 00:28:04,560 Speaker 1: way some of these tax credits work. The retirement savers 599 00:28:04,560 --> 00:28:06,359 Speaker 1: tax credit has been around for a little while, but 600 00:28:06,520 --> 00:28:09,000 Speaker 1: many of them shift over time, and it's best to 601 00:28:09,080 --> 00:28:11,959 Speaker 1: kind of stay up to speed on what tax credits 602 00:28:11,960 --> 00:28:14,359 Speaker 1: are currently in existence. We just covered kind of some 603 00:28:14,400 --> 00:28:16,360 Speaker 1: of the highlights here. Yeah, man, that's right. Yeah, they're 604 00:28:16,359 --> 00:28:18,000 Speaker 1: the highlights. Uh. And there are ones that you want 605 00:28:18,000 --> 00:28:20,920 Speaker 1: to consider because they can apply to a lot uh 606 00:28:20,920 --> 00:28:23,280 Speaker 1: of folks, potentially a lot of our listeners right now. 607 00:28:23,520 --> 00:28:25,879 Speaker 1: All right, Matt, So let's quickly get to where people 608 00:28:25,880 --> 00:28:28,520 Speaker 1: should file their taxes because that becomes a question for 609 00:28:28,560 --> 00:28:31,159 Speaker 1: a lot of people. And like we said last weekend 610 00:28:31,160 --> 00:28:33,440 Speaker 1: a little bit this week, we're more than okay with 611 00:28:33,480 --> 00:28:35,639 Speaker 1: you finding an accountant or cp A that does tax 612 00:28:35,800 --> 00:28:39,240 Speaker 1: to help you with your taxes, because it can be crucial, 613 00:28:39,360 --> 00:28:41,560 Speaker 1: right and potentially save you more than you're paying that 614 00:28:41,600 --> 00:28:45,040 Speaker 1: individual because of their expertise. But if you feel especially 615 00:28:45,080 --> 00:28:47,360 Speaker 1: if you have a basic return, something that's easy and 616 00:28:47,400 --> 00:28:49,960 Speaker 1: you feel comfortable doing it yourself, we would say i 617 00:28:50,080 --> 00:28:52,400 Speaker 1: r S Free File is a great place to go. 618 00:28:52,480 --> 00:28:55,000 Speaker 1: We'll put the link to the free file website in 619 00:28:55,080 --> 00:28:57,640 Speaker 1: the show notes and free File. Essentially, the i r 620 00:28:57,720 --> 00:29:00,719 Speaker 1: S compiles a list of companies that will give you 621 00:29:00,760 --> 00:29:04,560 Speaker 1: access to file your federal return for free, although it 622 00:29:04,640 --> 00:29:07,960 Speaker 1: is based partially on your income. And another great resource 623 00:29:08,080 --> 00:29:11,240 Speaker 1: is Credit Karma Tax and now we love credit Karma 624 00:29:11,280 --> 00:29:14,080 Speaker 1: for following your credit score and kind of keeping up 625 00:29:14,160 --> 00:29:16,400 Speaker 1: speed on that. But Credit Carma recently a few years 626 00:29:16,400 --> 00:29:19,480 Speaker 1: ago came out with Credit Carm Attacks and that's a 627 00:29:19,520 --> 00:29:22,800 Speaker 1: free tax filing resource for people of all incomes, which 628 00:29:22,920 --> 00:29:25,400 Speaker 1: I love. And another option too is that this is 629 00:29:25,440 --> 00:29:29,040 Speaker 1: the first year that we are getting the simplified tax 630 00:29:29,080 --> 00:29:32,560 Speaker 1: filing set up right, the new ten forty is this 631 00:29:32,640 --> 00:29:37,000 Speaker 1: postcard size sheet front and back, and that's supposed to 632 00:29:37,040 --> 00:29:40,560 Speaker 1: simplify the tax filing process make it much easier for 633 00:29:40,600 --> 00:29:43,120 Speaker 1: a lot of folks. So consider that. I mean, the 634 00:29:43,160 --> 00:29:45,400 Speaker 1: idea is literally you can get that card at either 635 00:29:45,480 --> 00:29:48,560 Speaker 1: a local post office or library by the way, dude, 636 00:29:48,560 --> 00:29:51,840 Speaker 1: libraries for the win yet again, right always, But you 637 00:29:51,880 --> 00:29:53,280 Speaker 1: take that card and you can fill it out front 638 00:29:53,280 --> 00:29:55,560 Speaker 1: and back and then your boom, You're done, right, like, 639 00:29:55,600 --> 00:29:58,479 Speaker 1: that's amazing, and so this is the first year that 640 00:29:58,520 --> 00:30:02,240 Speaker 1: they've implemented this new in forty So consider that, and 641 00:30:02,360 --> 00:30:05,280 Speaker 1: especially if you're in the n of folks that are 642 00:30:05,360 --> 00:30:08,360 Speaker 1: in all likelihood gonna take the standard deduction and your 643 00:30:08,440 --> 00:30:12,200 Speaker 1: taxes are pretty simple, then really considered hopping over to 644 00:30:12,240 --> 00:30:14,440 Speaker 1: your library, grabbing that form and sending it in. It 645 00:30:14,480 --> 00:30:16,560 Speaker 1: should be just really simple and not taking much time. 646 00:30:17,000 --> 00:30:18,840 Speaker 1: Not only time, right, but it can save you some 647 00:30:18,880 --> 00:30:21,800 Speaker 1: money if you're looking to actually have your your taxes 648 00:30:21,800 --> 00:30:24,720 Speaker 1: filed professionally. Hopefully we're able to sort of simplify that 649 00:30:24,800 --> 00:30:26,960 Speaker 1: the tax filing process, right and how you go to 650 00:30:27,120 --> 00:30:29,320 Speaker 1: go and think about it. And you know, once you 651 00:30:29,360 --> 00:30:31,760 Speaker 1: kind of understand some of the larger concepts in the 652 00:30:31,760 --> 00:30:34,320 Speaker 1: different ways that you can reduce the amount that you 653 00:30:34,320 --> 00:30:36,800 Speaker 1: are going to pay towards taxes, then it just it 654 00:30:36,880 --> 00:30:38,640 Speaker 1: kind of makes it easier, kind of makes it easier 655 00:30:38,680 --> 00:30:39,959 Speaker 1: for me to wrap my head around it, and it 656 00:30:39,960 --> 00:30:42,640 Speaker 1: makes it easier to plan ahead to make sure that 657 00:30:42,720 --> 00:30:45,880 Speaker 1: over the next few years you're kind of optimizing. And again, 658 00:30:45,960 --> 00:30:48,080 Speaker 1: like we said in last week's episode, you don't want 659 00:30:48,120 --> 00:30:50,680 Speaker 1: taxes to kind of be the tail waggoning the dog. 660 00:30:51,000 --> 00:30:53,560 Speaker 1: But you do want to take that into consideration because 661 00:30:53,840 --> 00:30:56,360 Speaker 1: tax taxes are one of the biggest expenses in your life. 662 00:30:56,360 --> 00:30:58,720 Speaker 1: And anyway that you can reduce those taxes at whether 663 00:30:58,760 --> 00:31:01,880 Speaker 1: that means bunching or taking advantage of tax credits that 664 00:31:01,880 --> 00:31:03,360 Speaker 1: you didn't know existed, that those are things that you 665 00:31:03,360 --> 00:31:06,360 Speaker 1: should take advantage of. That's right, man, most deaf. And 666 00:31:06,440 --> 00:31:08,840 Speaker 1: let's talk about the beer. What do you think? So? Yeah, 667 00:31:08,920 --> 00:31:12,480 Speaker 1: we're drinking Dark Reckoning by Morgan Territory Brewing and this 668 00:31:12,520 --> 00:31:15,760 Speaker 1: was an Imperial Porter. Yeah, donated by Brents from out 669 00:31:15,760 --> 00:31:18,360 Speaker 1: in California. Brent, thank you so much for this beer. Man, 670 00:31:18,440 --> 00:31:20,480 Speaker 1: it is fantastic. And dude, this is like an award 671 00:31:20,520 --> 00:31:22,600 Speaker 1: winning beer as well. To be honest, man, this is 672 00:31:22,760 --> 00:31:25,240 Speaker 1: one of the best porters I've had. It's really really good. 673 00:31:25,600 --> 00:31:28,360 Speaker 1: The word I used to describe it was robust, and 674 00:31:28,520 --> 00:31:30,640 Speaker 1: it is. It's just full flavored. It's a big beer, 675 00:31:31,040 --> 00:31:34,720 Speaker 1: and oftentimes porters can be a little thin. Yeah, and 676 00:31:34,760 --> 00:31:37,880 Speaker 1: this one had this really nice, beautiful mouth feel. I 677 00:31:38,440 --> 00:31:40,600 Speaker 1: really enjoyed this one. Mouth Field is correct. Yeah, I 678 00:31:40,640 --> 00:31:43,760 Speaker 1: said thick because not because it's a thick beer, because 679 00:31:43,760 --> 00:31:47,120 Speaker 1: porters are thinner than stouts, but it had a thick flavor. 680 00:31:47,280 --> 00:31:48,600 Speaker 1: This kind of goes back to the one time where 681 00:31:48,600 --> 00:31:50,680 Speaker 1: I said, jacket has my word, but it kind of 682 00:31:50,720 --> 00:31:52,960 Speaker 1: I felt like my tongue was wrapped up in flavor, which, 683 00:31:53,000 --> 00:31:56,280 Speaker 1: by the way, most awkward episode moment yet, I think, 684 00:31:56,640 --> 00:31:59,720 Speaker 1: not awkward. You're making an awkward jowl. But there's just 685 00:31:59,760 --> 00:32:01,440 Speaker 1: some flavor in this, and a lot of times you 686 00:32:01,440 --> 00:32:03,760 Speaker 1: don't get a lot of flavor out of a porter. Uh. 687 00:32:03,760 --> 00:32:07,160 Speaker 1: And so if you like a drinkable, flavorful, dark beer, 688 00:32:07,680 --> 00:32:10,000 Speaker 1: porters man, they are for you. And this porter in 689 00:32:10,000 --> 00:32:13,880 Speaker 1: particular is a Baltic style porter and nice and toasted 690 00:32:13,960 --> 00:32:16,479 Speaker 1: chocolate e get some smoky notes there as well. This 691 00:32:16,560 --> 00:32:18,520 Speaker 1: is fantastic. This is a great beer to have here 692 00:32:18,520 --> 00:32:21,960 Speaker 1: in uh in cold January. All right, Matt, let's tackle 693 00:32:22,000 --> 00:32:24,560 Speaker 1: our final thoughts. And there's three main things that you 694 00:32:24,640 --> 00:32:27,200 Speaker 1: really need to consider as we finished this episode on 695 00:32:27,320 --> 00:32:30,719 Speaker 1: tax tips, credits and deductions, and particularly if you are 696 00:32:30,760 --> 00:32:33,600 Speaker 1: a homeowner, if you have a mortgage, and especially if 697 00:32:33,600 --> 00:32:36,520 Speaker 1: it's a recently taken out mortgage and you're paying higher 698 00:32:36,560 --> 00:32:39,400 Speaker 1: amounts of interest, or if you're a real estate investor 699 00:32:39,440 --> 00:32:42,120 Speaker 1: with multiple mortgages, you are more than likely going to 700 00:32:42,240 --> 00:32:45,440 Speaker 1: be better off itemizing as opposed to taking the standard deduction. 701 00:32:45,720 --> 00:32:47,960 Speaker 1: That's a really important thing for you to consider before 702 00:32:47,960 --> 00:32:50,440 Speaker 1: you make that choice, that's right, man. And something else 703 00:32:50,440 --> 00:32:53,520 Speaker 1: to consider is if you've paid some very large medical bills, 704 00:32:53,760 --> 00:32:57,200 Speaker 1: not only direct bills to a doctor or a hospital, 705 00:32:57,560 --> 00:33:00,680 Speaker 1: but your insurance premiums as well. The third piece of 706 00:33:00,720 --> 00:33:03,760 Speaker 1: the puzzle is charitable giving, and the more that you've 707 00:33:03,760 --> 00:33:06,440 Speaker 1: given to charity, the more likely it is that you'll 708 00:33:06,480 --> 00:33:09,800 Speaker 1: be itemizing your deductions as opposed to taking the standard deduction. 709 00:33:10,040 --> 00:33:12,520 Speaker 1: And remember, it's kind of a pie. It's all three 710 00:33:12,520 --> 00:33:15,240 Speaker 1: of these things fitting together. And however they get you 711 00:33:15,320 --> 00:33:18,440 Speaker 1: over that dollar mark as a married couple, or twelve 712 00:33:18,480 --> 00:33:21,880 Speaker 1: thousand dollars as a single individual, or eighteen thousand dollars 713 00:33:21,920 --> 00:33:25,479 Speaker 1: as a head of household. Don't leave those folks out too. Yes, uh, 714 00:33:25,520 --> 00:33:27,720 Speaker 1: that will get you to the point where you want 715 00:33:27,720 --> 00:33:30,520 Speaker 1: to itemize as opposed to taking the new standard deduction, 716 00:33:30,960 --> 00:33:33,760 Speaker 1: and a quick back of the envelope math session will 717 00:33:33,800 --> 00:33:36,840 Speaker 1: help you at least realize whether it's worth considering or not. 718 00:33:37,120 --> 00:33:39,440 Speaker 1: And if you're really close to that threshold we mentioned 719 00:33:39,480 --> 00:33:42,280 Speaker 1: bunching man, consider that as a tactic, right, as a 720 00:33:42,320 --> 00:33:45,920 Speaker 1: strategy that you can employ to maybe hold off one 721 00:33:46,000 --> 00:33:48,680 Speaker 1: year and go ahead and take advantage of the standard deduction. 722 00:33:48,920 --> 00:33:50,880 Speaker 1: And then the next year, when you know that you're 723 00:33:50,880 --> 00:33:53,320 Speaker 1: going to have maybe some big charitable giving, some big 724 00:33:53,320 --> 00:33:55,840 Speaker 1: medical expenses, that can be the year that you decide 725 00:33:55,840 --> 00:33:58,200 Speaker 1: to itemize your deductions. That's when you're gonna want to 726 00:33:58,240 --> 00:34:00,920 Speaker 1: bunch all those expenses. And say, Matt and I covered 727 00:34:00,960 --> 00:34:02,680 Speaker 1: some tax credits that you need to be aware of, 728 00:34:03,000 --> 00:34:04,840 Speaker 1: and will put links to the I R S page 729 00:34:04,880 --> 00:34:07,200 Speaker 1: for some of those tax credits in the show notes. 730 00:34:07,440 --> 00:34:11,279 Speaker 1: It's just really important to consider them. Some simple modifications 731 00:34:11,280 --> 00:34:14,719 Speaker 1: to your behavior can mean big money back on your taxes. Yeah, man, 732 00:34:14,800 --> 00:34:17,239 Speaker 1: And keep in mind that these tax credits have a 733 00:34:17,400 --> 00:34:20,320 Speaker 1: dollar for dollar effects on your tax bill. This doesn't 734 00:34:20,360 --> 00:34:23,560 Speaker 1: just lower your adjusted gross income, but it actually reduces 735 00:34:23,640 --> 00:34:26,200 Speaker 1: your tax bill by that amount, which makes them so 736 00:34:26,280 --> 00:34:29,440 Speaker 1: much more valuable. Yeah. I know, taxes can be confusing. 737 00:34:29,480 --> 00:34:32,080 Speaker 1: I mean I get confused by the tax code, the 738 00:34:32,160 --> 00:34:34,960 Speaker 1: ever changing tax credits, the new tax law. I mean, 739 00:34:34,960 --> 00:34:37,160 Speaker 1: there's so many things to consider. But hopefully we gave 740 00:34:37,200 --> 00:34:40,920 Speaker 1: you enough of an overview to help you understand a 741 00:34:40,920 --> 00:34:43,360 Speaker 1: little bit more about how the tax system is structured, 742 00:34:43,600 --> 00:34:45,640 Speaker 1: how you can take advantage of the way it is 743 00:34:45,920 --> 00:34:48,560 Speaker 1: currently constructed, so you get to keep more of the 744 00:34:48,600 --> 00:34:51,080 Speaker 1: money that you make. That's our goal. Yeah, man, that's right, 745 00:34:51,120 --> 00:34:52,840 Speaker 1: and so I think that is going to be it 746 00:34:52,920 --> 00:34:55,879 Speaker 1: for today. Be sure to check out our website, how 747 00:34:56,000 --> 00:34:58,400 Speaker 1: Some Money dot com. We'll have our show notes up 748 00:34:58,400 --> 00:35:01,080 Speaker 1: there for you. Yeah. And if you you like this podcast, 749 00:35:01,120 --> 00:35:03,400 Speaker 1: if you found it helpful, if you found this episode helpful, 750 00:35:03,440 --> 00:35:05,640 Speaker 1: share it with a friend, or please leave a review 751 00:35:05,840 --> 00:35:09,360 Speaker 1: on Apple Podcasts or wherever you listen to your podcast. 752 00:35:09,920 --> 00:35:11,600 Speaker 1: Matt and I would really appreciate it. It It helps get 753 00:35:11,640 --> 00:35:14,800 Speaker 1: the word out to potential listeners. Until next time, Buddy, 754 00:35:15,080 --> 00:35:32,640 Speaker 1: best friends out, Best friends out due to the Tax 755 00:35:32,840 --> 00:35:36,080 Speaker 1: Cuts Jobs Act. Say that three times fast,