What’s new this tax season? These changes can ease inflation's sting

The video discusses recent changes in tax provisions due to inflation, including updates to tax brackets, deductions, and capital gains. It highlights the introduction of the IRS's direct file platform and the costs associated with popular tax filing platforms. The video explains how tax brackets and deductions affect taxable income and provides advice on staying informed about tax laws and seeking financial advice.

What is the purpose of the IRS's new direct file tax filing platform?

• To test a new tax filing system in 12 states

• To replace existing tax filing platforms like TurboTax

• To provide a free tax filing option for all Americans

• To increase tax revenue by simplifying the filing process

How do tax brackets affect your income?

• They provide deductions for specific expenses

• They determine the total amount of tax you owe

• They decide the percentage of income taxed at different rates

• They are used to calculate capital gains tax

What is a deduction in the context of taxes?

• A penalty for late tax filing

• An expense that reduces your taxable income

• An amount added to your taxable income

• An expense that increases your tax liability

What is the standard deduction for single filers in 2024?

• $13,850

• $14,600

• $15,000

• $14,000

How are long-term capital gains taxed?

• At the same rate as ordinary income

• At rates of 0%, 15%, or 20% depending on income

• At a flat rate of 10%

• At a rate of 25% for all taxpayers