In today's episode, we welcome back our friend Joe DeFazio, an enrolled agent and financial advisor, as we continue part two of our journey into understanding the tax code. We're on a mission to demystify taxes and show how the system can work for you, not against you. In this episode, we focus on the individual employee and families, laying the groundwork for how the tax code impacts everyday life. We dive into how taxes are used as incentives by the government and explore the key deductions, adjustments, and credits available to help you save as well as 529 plans. Whether you're an employee raising a family or simply navigating your finances, this episode will shed light on the tax strategies you can use to your advantage

Highlights
00:21 - Demystifying the Tax Code
02:16 - Role of the Tax Code in Incentivizing Behavior
05:46 - Key Tax Benefits for Employees and Families
11:13 - Understanding Tax Credits, Deductions, and Adjustments
18:32 - Importance of Itemizing Deductions
22:19 - Identifying Common Tax Benefits for Individuals
32:00 - The Complexity of Traditional vs. Roth 401(k)
35:50 - Historical Context of 401(k) Plans
38:02 - The Risk of Future Tax Rates
41:20 - Provisional Income and Social Security Tax Implications
52:25 - Introduction to 529 Plans for College Savings
56:25 - Potential State Tax Deductions for 529 Contributions
1:00:29 - Documenting Expenses for Tax Benefits

Episode Resources

• Connect with Tom Suvansri
• https://perennialpride.com/
• https://www.facebook.com/perennialpride/
• https://twitter.com/perennialpride
• https://www.youtube.com/channel/UC6N7YVoDx7BSRdiYRRb1BiA
• Connect with Joseph DeFazio
• https://www.10thstreetcapital.com/

Call to Action
Schedule a Call with Tom

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