Summary of "The IRS Just Gave You $25,000 in FREE Money (But Only Until 2028)"
Summary of "The IRS Just Gave You $25,000 in FREE Money (But Only Until 2028)"
Main Financial Strategies and Tax Benefits Presented:
The video discusses new IRS tax provisions effective starting with 2025 tax returns, offering up to $25,000 in deductions aimed at helping working-class Americans, especially service workers, hourly employees, and seniors. These deductions are temporary and expire in 2028. The presenter emphasizes the importance of legally, ethically, and morally using tax codes to build wealth, highlighting that wealth is not just about income but about managing money flow and tax benefits effectively.
Key Tax Deductions and Benefits Explained:
- Tip Deductions (Up to $25,000)
- Applicable to workers receiving tips (e.g., restaurant servers, bartenders, delivery drivers like Uber Eats, DoorDash).
- You can deduct reported tips up to $25,000.
- Must be officially reported to the IRS (no unreported cash tips).
- Phases out at $150,000 income for singles, $300,000 for married couples.
- Potential savings: $3,000 to $6,000 per year in taxes for eligible workers.
- Action step: Check pay stubs for reported tips.
- Overtime Deductions (Up to $12,500 for singles, $15,000 for married)
- Only the premium portion of overtime pay (the amount above regular hourly rate) is deductible.
- Applies to hourly workers (manufacturing, retail, healthcare).
- Must be clearly shown on pay stubs.
- Does not apply to salaried employees.
- Action step: Review pay stubs to verify overtime premium is listed separately.
- Car Loan Interest Deduction (Up to $10,000)
- Deduct interest paid on loans for brand-new, American-made vehicles.
- Vehicle must be used for work purposes (e.g., Uber, DoorDash), not just commuting or personal use.
- Leased vehicles and used cars do not qualify.
- Caution: Buying new cars is a depreciating asset; the deduction might not offset overall costs.
- Action step: Gather loan documents and bill of sale; verify vehicle qualifies.
- Senior Citizen Deduction
- Individuals 65+ get an additional $6,000 deduction ($12,000 if married and both qualify).
- Income limits: $75,000 single, $150,000 married.
- Stacks with other deductions.
- No extra paperwork required.
Important Considerations:
- Documentation: Perfect, detailed paperwork is essential. This includes pay stubs, tip reports, loan documents, and bill of sale.
- IRS Audits: The IRS will increase audits on these new deductions, so accuracy and honesty are crucial.
- Income Limits: These deductions phase out quickly for higher earners.
- Temporary Nature: These benefits expire in 2028 and could be changed or eliminated by future Congress or administrations.
- Ethical Use: The presenter stresses using these tax benefits legally and ethically, aligning with his Christian and spiritual values.
Additional Financial Tips and Tools Shared:
- Car Insurance Savings: The presenter promotes a tool at anthony.com/carinsurance that can save users $50-$600 per month by comparing car insurance quotes quickly.
- Investment Opportunity: Viewers are encouraged to open a Moomu investment account (Moomu" target="_blank" rel="noopener noreferrer">anthony.com/Moomu) with a minimum $100 deposit to receive $1,000 in free Nvidia stock (offer expires soon).
- Investing While in Debt: Generally, focus on paying off debt first unless your employer offers a 401(k) match, which should be taken advantage of to get “free money.” After debt is paid off, increase investment contributions to 12-15% of income.
- Organizational Advice: Start organizing all tax-related documents now to prepare for 2025 tax filing.
Methodology / Step-by-Step Action Plan:
- For Tax Deductions:
- Review 2025 pay stubs for reported tips and overtime premium.
- Collect and organize tip reports.
- Obtain loan documents and bill of sale for qualifying new American-made work vehicles.
- Confirm eligibility based on income limits.
- Maintain perfect and detailed records.
- Consult a CPA or tax preparer with these documents for accurate filing.
- For Car Insurance Savings:
- Visit anthony.com/carinsurance.
- Enter zip code, age, and other quick questions.
- Compare quotes and switch if savings are found.
- Remember insurance companies refund unused premiums if you switch mid-policy.
- For Investment:
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