Summary of Total U.S. Debt & Interest As of May 2020

Every so often the public collectively wonders how much the United States owes in debt. Well, here it is in this TaxAssurances YouTube video. As of 04/30/2020 the United States owes $24,974,171,868,164.35 to various individuals and organizations. That’s trillion with a T.

Here’s a link to the U.S. DEPARTMENT OF THE TREASURY that provides up to date information about the public national debt. https://www.treasurydirect.gov/NP/debt/current

Also, here’s how that debt has grown since September of 2000 as also provided by the U.S. DEPARTMENT OF THE TREASURY. https://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt_histo5.htm

It’s worth noting that with this debt their is interest that the United States pays. Last year the United States spent a total of $4.4 trillion for the full fiscal year. Of that spending, roughly 13% or $573 billion was spent on just the interest we have on that $24.9 trillion in debt.

Here is the U.S. DEPARTMENT OF THE TREASURY report that summarizes our total spending by various categories (page 9 of 40). It’s entitled, “Final Monthly Treasury Statement, Receipts and Outlays of the United States Government for Fiscal Year 2019 Through September 30, 2019 and Other Periods.” https://www.fiscal.treasury.gov/files/reports-statements/mts/mts0919.pdf

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Source: U.S. DEPARTMENT OF THE TREASURY.

Is Social Security Income Taxable?

In this TaxAssurances YouTube video I talk about scenarios were social security is taxable and when it is not.

For further information around social security income being taxable, here is a helpful link to the IRS website: https://www.irs.gov/newsroom/are-social-security-benefits-taxable 

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I Can’t Get Through to the IRS

Employees at the IRS are dealing with the impact of the coronavirus as well. Some people are at work but many are not. Because of that, reaching someone to answer any questions will be difficult. In this TaxAssurances YouTube video, I talk about the challenges taxpayers will facing in trying to reach a representative at the IRS.

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Tax Preparation for 1099 Independent Contractors

1099 Independent Contractors have a unique tax situation. They aren’t employees of the business they do work for but they also aren’t necessarily set up as an LLC or S Corporation. In this TaxAssurances YouTube video, I give a quick overview of the forms they’ll need to file a tax return for the year.

Also, for more help around 1099 independent contractors, here is a helpful IRS link: https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee

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The Different Types of Business Entities

When it comes to setting up a business, the owners of the business have a number of options to choose from. In this TaxAssurances YouTube video I give a brief listing of the different types of entities available to choose from. I also provide the year end tax forms that need to be filed for the business entity.

Along with my video summary here is an IRS summary of the different business entity types to choose from: https://www.irs.gov/businesses/small-businesses-self-employed/business-structures

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FREE REVIEWS!!! That’s Why TaxAssurances Loves Turbotax.

At TaxAssurances we LOVE turbotax by intuit and all of the other self prepare tax software out there! We would give it away for free if we could.

To most people that sounds strange. Why would a professional tax preparer like something that cuts them out completely and is cheaper competition?

I’ll tell you why. FREE REVIEWS!!! That’s why TaxAssurances loves turbotax.

Over the years, in doing FREE REVIEWS of turbotax and other self prepared tax returns that have already been filed with the IRS, TaxAssurances has realized that between 25 – 30% of the returns were wrong. Flat out!

The taxpayer cheated themself out of a bigger tax refund because they didn’t want to “pay someone a lot of money just to put numbers in the computer.” They could “do it themselves and save money.” So when we’ve shown the taxpayer the hundreds or thousands of dollars extra in refunds they were entitled to but missed, they gladly pay the extra $250 or more to fix it and get their bigger refund. And tell friends what we did.

So if you’ve already done your own taxes over the last 3 years (2018, 2017, 2016) and filed it with the IRS, DM or call us today at 914-278-9241. We cover all 50 states and we’ll see if we can get an even bigger refund for you.

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What is My Tax Filing Status?

One of the first things I’ll do as a tax professional is look to determine a client’s filing status. What does that mean? Are they married or not? Do they have any children or parents that depend on them? Do they want to file their tax return with their spouse or not? Why do I ask these and other questions? To see how much of a deduction they can get on their taxes.

In this video I walk through the different filing options and what they translate into as far as tax deductions.

Also, here is a helpful IRS link with more information about the correct filing status for taxpayers: https://www.irs.gov/newsroom/correct-filing-status

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Suspended IRS Installment Agreement Payments

Due to the economic impact of the corona virus, the IRS under the “People First Initiative,” is temporarily suspending payments for any taxpayers on an installment agreement.

Here are the details from the IRS.

Also, here is a TaxAssurances YouTube video I prepared about the suspension.

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Avoid IRS Phone Scams

At least once a month I’ll receive a nervous phone call from someone worried about the IRS. They just got off the phone with someone that said they were an IRS agent and unless they send a few thousand dollars in a day or two, the IRS is going to send the police to their home or job to arrest them. That’s a phone scam. The IRS does not operate that way.

If you have done your taxes in the past and you have a bill, then you’re going to know that you owe. But the IRS does not just out of the blue call and tell a taxpayer that they owe some unexpected amount. They also don’t just send the police to someone’s home or job like that.

Here’s a TaxAssurances YouTube video I did about these IRS phone scams.

Here’s what the IRS says they will never do when it comes to taxes and communicating with the public.

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So if you get a phone call like this, hang up. If you’re still not sure and want peace of mind, call the IRS at 800-829-1040. They can go over your tax history to let you know where you stand with them.

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How Your Tax Dollars Were Spent Last Year

From October 2017 – September 2018, the federal government spent $4.1 Trillion to pay its bills. Here’s how much of it was spent:

Medicare/Medicaid (Dept. of Health & Human Services)  – $1.1 Trillion

Social Security  – $1 Trillion

Dept. of Defense  – $601 Billion

Dept. of Treasury INTEREST ONLY on our Debt – $522 Billion

Those four “items” alone account for roughly $.79 for every $1 spent by the federal government. It’s worth noting that box #4 on your W2 and box #6 on your W2 show how much you paid toward your social security and medicare.

The other roughly $.21 combined spending goes for everything else including Education, Veterans, Homeland Security, Housing & Urban Development, Transportation, Energy, Agriculture, Environmental Protection. Here’s a full breakdown.

 

Income

The federal government collected $3.3 Trillion from taxpayers. Here’s a breakdown.

 

Full Report

Here’s the full Department of Treasury report for both expenses and income.  

 

Debt

It’s also worth keeping in mind, that like last year, over the years the government has borrowed a lot of money to pay its bill. Right now the government owes (national debt) over $21.8 Trillion.

Here is a real time total of what the federal government owes and who it owes it to.

Here’s how much the national debt has grown since 2000:

*Source: Department of Treasury, “The Monthly Treasury Statement of Receipts and Outlays of the United States Government October 15, 2018” report.

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