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WDHA Morning Jolt

WDHA Morning Jolt

WDHA Morning Jolt

Jeff Bezos Has A Really Good Reason We Should All Be Florida Man

Author Jim Monaghan

The phrase “Florida Man” usually means really strange behavior. Jeff Bezos is turning into Florida Man and if we’re money-smart, we may all want to do the same.

FLORIDA MAN STRIKES AGAIN!

DATELINE – the Sunshine State and the Saga of Florida man Jeff Bezos and maybe the rest of us as well.

Now, you know who Jeff Bezos is.

Yes, that guy, the billionaire.

Well, he saved around $288,000,000 in taxes after he sold 24 million Amazon shares over the last week. He used his brand new Florida address instead of his former address in Washington state.

Now, he had announced back in November of last year that he was moving to Florida because, well, he wanted to be closer to family.

And he also wanted better proximity to the company Blue Origin. That is, the space technologies company that he founded. Well, the financial records of Bezos may hint at some other possible reasons, and it may be why so many are joining him.

Bezos has been slowly selling off company stock since 1998, but he stopped two years ago. Why? Well, that’s when the state of Washington’s 7% capital gains tax went into effect.

Thus, Bezos became Florida Man.

Florida does not have capital gains taxes, nor, for that matter, do they have state income tax.

Bezos says he plans to offload about 50 million Amazon shares over the next year. That’s worth nearly $9 billion.

With a Florida ZIP Code, he could be saving, well, at least $10 million when he does.

That’s a lot of money.

Remember the scene in Field of Dreams – “If you build it, he will come.” Well, this is kind of the version of “If you lower taxes, they will come,” because Bezos is among a bunch of mega rich people who are heading to Florida and have done so in recent years.

But they’re not alone.

We’re all becoming Florida Man

It’s not just those who can afford private islands. Between 2021 and 2022, nearly three quarters of a million Americans moved to the state of Florida, according to Census Bureau data.

That’s the most of any state in the country.

We’re all becoming Florida man.

MORE EPISODES OF FLORIDA MAN STRIKES AGAIN

Tax Deductions and Credits That Could Save You Big

Tax season is truly in full swing. Tax deductions and credits are there to help people, so why not take the help? It might seem like a headache having to go through a long list of possible deductions, but it’s really not so bad. I’ve gathered some information directly from the IRS to help you save this tax season. So, let’s get into the dollars and cents.

Before we get into the savings, let’s look at how credits and deductions work. According to the IRS, “You can claim credits and deductions when you file your tax return to lower your tax. Make sure you get all the credits and deductions you qualify for.”

The definition of a credit, according to the IRS, is “an amount you subtract from the tax you owe. This can lower your tax payment or increase your refund.” They note that some credits are refundable. That means “they can give you money back even if you don’t owe any tax.” If you want to claim credits, you must answer questions in your tax filing software. Or, if you’re doing taxes the old-fashioned way, you’ll have to fill out a form and attach it.

The definition of a deduction, according to the IRS, is “an amount you subtract from your income when you file so you don’t pay tax on it. By lowering your income, deductions lower your tax.” In order to do this, you have to have documents to show expenses or losses you want to deduct. You can do this via tax software or, if you’re filing a paper return, your deductions go on Form 1040 and you may need to attach extra forms.

Now, the fun part. Read on for tax deductions and credits that could save you cash this season. Here’s hoping that Uncle Sam treats you well.

  • Standard deduction amounts

    The standard deduction for 2023 is $13,850 for single or married filing separately; $27,700 for married couples filing jointly or qualifying surviving spouse; and $20,800 for head of household. “If you’re married filing separately, you can’t take the standard deduction if your spouse itemizes. You must both choose the same method,” the IRS says.

    To find the standard deduction if you’re over 65 or blind, go here. To find the standard deduction if you’re a dependent on someone else’s tax return, go here.

    Investors are calculating profits and costs with calculators, growth and investment chart analysis, business planning and strategies to maximize sales profits. Long term business plan.

    Getty Images / Thapana Onphalai

  • Deductible expenses whether you take the standard deduction or itemize

    According to the IRS, you can deduct these expenses whether you take the standard deduction or itemize:

    Alimony payments
    Business use of your car
    Business use of your home
    Money you put in an IRA
    Money you put in health savings accounts
    Penalties on early withdrawals from savings
    Student loan interest
    Teacher expenses
    For some military, government, self-employed and people with disabilities: work-related education expenses
    For military servicemembers: moving expenses

    Tax deduction planning concept. Businessman calculating business balance prepare tax reduction. taxes paid by individuals and corporations such as VAT, income tax and property tax.

    Getty Images / Shutthiphong Chandaeng

  • Deductible expenses if you itemize

    According to the IRS, you can deduct these expenses if you itemize:

    Bad debts
    Canceled debt on home
    Capital losses
    Donations to charity
    Gains from sale of your home
    Gambling losses
    Home mortgage interest
    Income, sales, real estate and personal property taxes
    Losses from disasters and theft
    Medical and dental expenses over 7.5% of your adjusted gross income
    Miscellaneous itemized deductions
    Opportunity zone investment

    Amount you owe line on income tax return forms, cash money and calculator. Federal tax return, income tax, tax refund and payment concept.

    Getty Images / JJ Gouin

  • Frequently asked questions

    Tax season can be a confusing time. There are lots of bits and piece that you have to put together. That said, the IRS has a very helpful page with frequently asked questions. Find the list of questions and answers here. As always, it’s also a good idea to get a professional to help with any questions.

    Young woman working with tax form.

    Getty Images / alfexe

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Author Jim Monaghan
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