Steady plodding brings prosperity; hasty speculation brings poverty. Proverbs 21:5 – Speaking of plodding, I have never seen a field get plowed by just thinking about it. How To Reduce Taxes While Increasing Your Cash Flow The following information is from one of my mentors, who has been so valuable since about 2006. His name is Van Mueller, and he is one of the most dynamic educators of finance I have met in my career. I am going to share with you Van's 4 rules that can save you a lot of money in taxes each year. The four rules are the rules of 48-0, and 10-0 and 20-0 and 24-0, and finally, the rules of 80s-24. To understand these rules, it is vital that you have a small amount of knowledge about income taxes or your financial future. For 2024 tax returns, the 10, 22, and 24 percent tax bracket. Also, for the purpose of this presentation, we will only review married couples filing joint tax returns. At the end of this presentation, I will show you how to approximate single people. (Based on 2024 tax brackets) The standard deduction for a married couple is as follows: Both under Age 65 - $29,200; One over Age 65 - $30,700; Both Over Age 65 - $32,300. The difference for each category is $1,500. So, if one person in the married couple is over age 65, you add that $1,500 to the standard deduction of $29,200 for both people being under age 65. So, one person in the married couple is over age 65, you add $1,500 to the standard deduction of $29,200 for both people being under age 65. The standard deduction means the first taxable income over the standard deduction of $29,200 or $30,700 or $32,700, depending on the age of the married couple. The first tax bracket is the 10 percent tax bracket. This means the next $23,050 of taxable income over the standard deduction is taxed at 10 percent. 10 percent of $23,050 is $2,305.
51
Made with FlippingBook. PDF to flipbook with ease