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Video instructions and help with filling out and completing Irs tax tables 2021-2022
Instructions and Help about Irs tax tables 2021-2022
Today we're going to talk about how to avoid the 2022 tax trap I don't want you to fall into it so stay with us this is your first time at our channel or you haven't subscribed be sure to click on the link at the bottom maybe you've checked out the new tax practice maybe you haven't either way the vast majority of people are going to be in a lower tax bracket but not everybody is going to be in a lower tax bracket there's really two pieces to this trap first you have to know or have to understand where your income is gonna put you at the end of the year what bracket might you be in because if we're gonna get certain tax brackets we might actually pay more in taxes the other side of the trap is much easier to fall into and probably the vast majority of people will actually fall victim to this trap and that is the trap of making more money or having more money in your pocket these taxes could put more money in your pocket like I said before the vast majority of people are going to have more money in their pocket but the problem with that is it's extremely easy to get used to having more money most people when they earn more money they quickly adapt to it the more money earned the more your expenses will rise so here's a big question to avoid falling into this trap you have the opportunity to make the decision to save more for your future to put that money into a retirement account and if you calculate it right it won't even affect how much money is in your pocket from last year if everything is the same it should be the same the only difference you'll be a little bit further ahead but saving these dollars isn't simply just putting money in traditional IRA or increasing your 401k contributions or putting it in the bank all these three things are great ways to save but just reducing your tax liability even further this might not be the maximum benefit that you can get from these lower taxes something to think about is if I am in a lower tax bracket right now what else can I do to maximize my retirement say out feeling the effects of anything today the first thing that you can do is you could put more money into a Roth IRA the second thing that you can do is you could take your traditional IRA money or if you have an old 401k you could think about doing a Roth conversion and that's taking money from your traditional IRA or that 401k and moving it over into a Roth IRA now you'll pay the taxes this year but the benefit is all that future growth that you'll have won't be taxable when we're saving there are really two factors that.