In today’s Back to Basics Episode, we chat with Dr. Victor Mangona, from 39Point6.com, about 7 Common Tax Terms and how they can help you this tax season. Pay close attention as he shares his best tips with you for tax season and all the updates to the tax code for 2018 and how they will affect you.
In this episode, you will learn:
- Tax Term #1- Withholding- Taxes the government takes out of your paycheck throughout the year towards your annual tax payment. This also prevents you from paying a penalty at the end of the year.
- Tax Term #2- Gross Income- All of the money you get paid by your employer before all of your deductions are taken out by your employer.
- Tax Term #3- Exemptions- All of the money you earn that you are not obligated to pay taxes on.
- Tax Term #4- Standard Deduction- The amount of money you are not obligated to pay tax on that is set by the government based on the size of your household. This has gone up significantly in 2018.
- Tax Term #5- Itemized Deductions- These include: mortgage interest, state tax, charitable deductions, sales tax, and property taxes. These have to equal more than the standard deduction for you to claim these on your taxes. You can also use a Donor Advised Fund for charitable giving to optimize your deductions too.
- Tax Term #6- Taxable Income- Income that is eligible to be taxed after you take out all of your exemptions and deductions.
- Tax Term #7- Tax Credits- These credits give you actual dollars back towards your tax obligation. An example of this would be purchasing an electric car, child tax credit, education, solar panels, and some home improvements.
Dr. Victor Mangona practices radiation oncology in Dallas, Texas and he produces 39Point6.com, a website and Youtube channel, that provides educational content on personal finance, investing and real estate.
Links we discussed in the show:
- Check out 39Point6.com for amazing advice on all things related to investing, personal finance, real estate and taxes.
Special thank you to this week’s show sponsor: Set for Life Insurance! If you are in need of life or disability insurance, or if you need a second opinion to be sure you are insured appropriately, call Jamie Fleischner at Set for Life!
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