 Income tax 2021-2022, standard deduction using income tax software. Get ready to get refunds to the max, diving into income tax 2021-2022. Here we are in our LASERT tax software. If you don't have access to it or any tax software, that's okay. You can still follow along. You might want to get a PDF file of the Form 1040, which you can find on the IRS website at irs.gov. The tax software helping us to do the data input a little bit more quickly, run different scenarios, being able to then jump on over here to the forms to the 1040 and see what the impact is. Now in a prior presentation, we looked at the different filing statuses of single, married filing joint, married filing separate, head of household, qualified widow, widow where we went through them in a bit of detail. And one of the major implications is the impact on what we're looking at now. That's the standard deduction down below. So we won't go through that whole scenario again. If you want to look at the impact on the standard deduction from the changes of the filing standard statuses, then you can take a look at that prior presentation. We're going to go into some of the more kind of unusual items we talked about with regards to the standard deduction last time or in the prior presentation. So for example, we've got the standard deduction here, someone can claim you. So if someone else could claim you as a dependent, then you want to be checking off this box. If it was your spouse, your spouse, that would mean you'd be filing married filing joint than the second box. So if I was to check that off, for example, I can jump back over and say, I'm going to be saying that I could be claimed as a dependent and then jump back on over to the tax return. And we could see that that box would then be checked off here. Then we have this box to be checked if you were a dual status alien spouse itemizes on a separate return or you were a dual status alien here. If you were a dual status alien and you file a joint return with your spouse, who was a US citizen or resident alien at the end of 2021, and you and your spouse agree to be taxed on your combined worldwide income, then you don't check the box. So that's going to be that box here. If you are your spouse, if you were married and filing a joint return were born before January 2nd, 1957, or were blind at the end of 2021, you've got these boxes here, blind and born before. So those are going to be the requirements that or those are going to be items that are going to increase the standard deduction. So let's take a look at those. So now we've got Adam and Eve being married here, married, filing joint. And then down here, we're going to say box being checked. We're born before January 2nd, 1957. And we've got the second one checking the blind status. That's going to have an impact primarily on the standard deduction down below, which before, if you were married, filing joint would be the 25,100. But now it has been adjusted upwards. One place you can find that this kind of bounces us over to the 1040 SR, if you would like to file that instead of, although it's a little bit different format, but it has that age four with the calculation. Now we've got married and two of these conditions are met. And that's where you get the 278, which if I go back to the 1040 is going to be that 278. If I was to double check that in my worksheet, I would do something like this. There's the 100,000. This is going to be equal to the standard deduction for married, which was 25,1 plus you've got two of these conditions being met. One being one spouse was over the age limit and we have a blind condition. So I'm going to add those in twice. And that's where we're going to get the 278 getting us to the 72,2. So the 72,2 then is going to be our line item down here on the taxable income. So another kind of unusual situation we want to take a look at is, what if you're married? So now you've got the components of being able to file married filing joint or married filing separate. You decide to file married filing separate. Well, then the IRS is going to be skeptical that you're going to try to take advantage of both the standard deduction and the itemized deduction, which are kind of limiting. So if you file married filing separate, now we're going to say Adam here married filing separate. What if his spouse is claiming an itemized deduction? We got to mark that off down here. You got to say, okay, now spouse is itemizes on a separate return or you were a dual status alien that is checked off. And that's going to have an impact on the standard deduction here. So now it's taking basically the itemized deductions because you're required to itemize because you can't split up the tax return of one entity, which is basically a married entity. They're thinking here and then take advantage of both the itemized components and then the standard deduction by filing married filing separate would be kind of the general idea, at least as I interpret it. So the next thing, we're going to go back to the original scenario where we're single this time, Adam Smith's regular scenario, 100,000 here and the standard deduction at 12,550. Now we're going to say, well, what if we check this box off, the president election campaign, check here if you or your spouse is filing jointly, want $3 to go to this fund, checking a box will not change your tax or refund. So let's kind of just double check that. Let's take a look at what our tax or refund is at this point in time and punch it into the trustee calculator. We're currently at the amount of 152. Well, let's go to the tax up top. Total tax is at the 15015. And now let's say we're going to take that $3 and send it in. So we're going to say $3 is going to the fund here. Let's jump to that data input and say one. And I'm going to check that box off, checked it off. And then if I go back to my summary, if I go to the tax summary, we're still at the tax of the 1515. And I believe the total amount still the same, 15285. And if I bring it back on the other way and say, let's take this off, boom. And then go back on over. We're at the 15285. And now we've unchecked the box for the $3 there. Now, the other one they've been stressing here is this item. At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency? So they're concerned with that whole virtual currency type of thing, which can be confusing to a lot of people. And so the question is, what's your dealing with virtual currency? Did you have virtual currency transactions? If yes, then you got to put yes here. And then you got to determine if there's any kind of income related to the virtual currency. So obviously we could check that off if we wanted to. And have the virtual currency. Now, if you check off yes here on the virtual currency, you would think that the IRS would be expecting to have some kind of transaction related to virtual currency gains or losses or something like that. So you might, in some cases, you might need to do more research on what is virtual currency, what kind of things might qualify that you've done transactions in for virtual currency and so on and so forth. And make sure that you're in alignment with your income tax reporting with regards to any kind of virtual currency exchanges.