Free Lecture 5: Individual Taxation 🤔📚 U.S. Tax Preparer Course 2024-2025 |

👋 Hello everyone, welcome to our U.S. Tax Preparer Course! I'm your instructor, Muhammad Ahsan Elahi. Today, we'll cover Individual Taxation. 📝

Section 1: Gross Income (0:30 - 5:00)

💸 Definition: Total income earned during the tax year
👉 Includes:
Wages, salaries, and tips 💼
Interest and dividends 📈
Capital gains/losses 📊
Business income 💼
Rental income/loss 🏠
Unemployment compensation 🤝
Social Security benefits 👴
Other income 💸
Section 2: Adjustments (5:00 - 8:00)

📊 Adjustments:

Educator expenses 📚
Student loan interest 📈
Alimony payments 💔
Moving expenses (for military only) 🏠
Self-employment tax (50% deduction) 💼
Retirement contributions 🏃‍♂️
Section 3: Deductions (8:00 - 12:00)

💸 Deductions:

Standard Deduction:
Single: $13,850 (2024) 👫
Married filing jointly: $27,700 (2024) 👫
Head of household: $20,800 (2024) 👪
Itemized Deductions:
Medical expenses (above 10% of AGI) 🏥
Mortgage interest 🏠
Charitable donations ❤️
State and local taxes (up to $10,000) 🏛️
Property taxes 🏠
Other itemized deductions 📝
Section 4: Qualified Business Income (QBI) Deduction (12:00 - 15:00)

📈 QBI Deduction:

Up to 20% deduction for e
ligible self-employment income 💼
Applies to qualified business income from pass-through entities 📊
Section 5: Federal Income Tax (15:00 - 18:00)
🤔 Federal Income Tax:
Federal Income Tax = Taxable Income x Tax Rate 📊
Tax rates: 10% to 37% (2024) 📈
Section 6: Tax Credits (18:00 - 25:00)

💸 Tax Credits:

Definition: Direct reduction of tax liability 📊
Goals:
Increase employment and workforce participation 👩‍💼
Support education and training 📚
Foster homeownership and affordable housing 🏠
Promote healthcare and wellness 🏥
Encourage retirement savings 🏃‍♂️
Support families and childcare 👪
Incentivize environmental sustainability 🌎
Stimulate entrepreneurship and small business growth 💼
Examples:
Earned Income Tax Credit (EITC) 🎉
Child Tax Credit ($2,000 per child) 👧
Education credits ($2,500) 📚
Retirement savings contribution credit ($2,000) 🏃‍♂️
Disability credits ($5,000) 🏥
Homebuyer credits 🏠
Renewable energy credits (30% of cost) 🌎
Child and dependent care credit (Maximum credit: $3,000) 👪
Adoption credit ($14,080) 👶
Section 7: Tax Credit vs. Deduction (25:00 - 30:00)
🤔 Tax Credit vs. Deduction:
Tax credit: direct reduction, fixed dollar amount, potentially refundable 💸
Tax deduction: indirect reduction, varies with tax bracket, non-refundable 📊
Conclusion (30:00 - 31:00)

👏 Thank you for watching! For questions and study materials, contact us via WhatsApp (+92-300-2278493) or email at [email protected]. 📲
Outro (31:00 - 32:00)

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