How to Fill Out the New W4 Tax Form in 2021 a simple passive casual listeners today we're gonna break down the new w-4 form in 2020 now this is replacing the older. Form in the past where there was this worksheet that you did you had the essentially it just left. A big gap and you had to sort of guess how many dependents equated to meet deductions you would guess and the way I would do it again not giving any legal or tax advice. Here is I always like to give the government a less interest-free loan and therefore I think I put away to.
19 or 20 that was how many deductions I claimed it often led to having to pay a, tax boat in a year but I thought that was better than having to give me a.
Free alone and once I started to get a bunch of passive investments and especially wants the bonus depreciation paid in in, 2018 I think I paid like fourteen percent effective tax rate and then in, 2019 I paid four percent which sounds crazy AGI combined with me and my.
Spouse was like about $135,000 I paid around five thousand dollar taxes which is about four percent this is the new.
W-4 tax form and of course there's a lot of common forms there here that what they do is. They sort of make it a little bit easier in terms of forms to figure out how many dependents you have and that's a big factor and how much you should be cleaning but.
You could read this or you could just kind of do what I do and just put, the maximum you have so that you know you probably gonna have to pay a tax both in a year and that's it they.
Have some charts here showing, you how much you should be picking out but there's really no penalty to paid the lease as long as.
You keep up with your estimated tax payments and this is from the IRS website IRS come from the newsroom then you probably find this by googling 20/20. W-4 but it has a big FAQ on this section another quick tip for you guys is most of my investors and myself. Included we extend always to October never file in April I mean we file extensions but a few reasons why number one.
I don't want to give the IRS an extra. Six months to look for some reason to audit me or give them another six months to do it number two I want to be able to, see what tax changes are coming down the pipeline in the next six months. And I won't be able to change what I did in this past year but if there might be things that I might want to change that returns me what. I want to do to your so now so that's the reason why I do it and number three I mean when you're in a couple, of dozen it syndication. Deals and you're waiting back for 24k one forms you sure one was gonna be late and there's just really no sense of rushing it and going, in when everybody else is trying to file their taxes you're not giving any legal, advice but if you guys are needing a referral to the same legal team that I use you're.