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Taxes For Teenagers! | Do You Need To File A Tax Return? - YouTube
Channel: unknown
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hello everyone and welcome back in
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today's video we're going to be talking
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about taxes
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more specifically we're going to be
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talking about taxes for teenagers now
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this isn't going to be the most
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entertaining video you ever watched but
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it definitely is important and i applaud
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all of you for watching also i want to
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remind you guys that i am just some
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random kid on the internet i am not a
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professional i'm just passing along the
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information i have researched and
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received for my own personal use and i'm
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passing that along to you guys so after
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watching this video and if you find out
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you might need to file your taxes you're
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gonna want to talk with your parents or
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a financial expert okay now with that
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out of the way let's get right into it
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here so the first thing we're going to
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answer when it comes to taxes and
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especially taxes for teenagers is what
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is a dependent so let's step in your
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parents shoes for example if they're
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filing their taxes they can label you
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their child or another family member as
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a dependent this can allow them to
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reduce their taxable income chances are
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for most you your parents will have you
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as dependents on their taxes but if
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you're not sure you can just ask now
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that is important because in the rest of
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this video i'm gonna be talking about
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taxes for teens that are labeled as a
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dependent on their
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parents tax returns okay so now we're
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going to go into our first section here
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which is earned income so if you're a
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teenager and you're working a part-time
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job during the summer that is earned
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income and if you don't invest at all or
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something like that getting a return
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from your investments maybe in the stock
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market if you don't have any of that
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then chances are you only have earned
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income from a job so if you don't have
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any investments and you only have earned
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income then this would apply to you and
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the minimum amount for earned income is
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twelve thousand four hundred dollars so
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if with your part-time job you make
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twelve thousand three hundred dollars
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then you don't have to file a tax return
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but if you make 12 400
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or more than that then you do so i'm
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gonna read this example for you guys
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that i will throw up on the screen
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william is 16 his mother claims him as a
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dependent on her income tax return he
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worked part-time on weekends during the
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school year and full-time during the
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summer he earned 12 500 in wages he did
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not have any unearned income he must
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file a tax return because he has earned
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income only and his gross income is more
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than twelve thousand four hundred
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dollars so when you get your w-4 form
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from your employer check that total
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gross income number and see if it is
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above or below the twelve thousand four
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hundred dollar mark okay so might a lot
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of you might have fallen into that
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category there now we're going to do
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unearned income only so this would be
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like return on investments in the stock
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market or something like that and the
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number for unearned income only is one
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thousand one hundred dollars
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now keep in mind this is only if you
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sell your position like if you're in the
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stock market and you make money so if
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you have a one thousand one hundred
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dollars of profit but all that profit is
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still held in the stocks and you have
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not cashed out yet then this doesn't
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apply to you now that's probably the
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rarest situation here and now that leads
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us into our last one with last one which
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is both earned and unearned income and
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for this section the irs has a great
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worksheet here that we're gonna look at
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okay so we are gonna be looking at the
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bottom example example 2 to explain this
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so
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enter the dependents earned income plus
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350 and as you can see that number is 3
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100
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which means they earned 2
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hundred fifty dollars in earned income
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okay then line two has the minimum
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amount for unearned income here which is
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one thousand one hundred dollars step
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three you're gonna compare lines one and
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two and enter the larger amount so for
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us in this example the larger amount is
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three thousand one hundred dollars
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you're going to put that in the maximum
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amount for earned income is twelve
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thousand four hundred dollars
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so you compare lines three and four and
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you enter the smaller amount which is
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again the three thousand one hundred
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dollars so that is line five we're gonna
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leave that there for just a second and
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now we're gonna enter the dependents
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gross income so if we come back up here
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for joe he has a total of three thousand
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three hundred fifty dollars in gross
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income 600 bit is interest or unearned
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income plus
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2750 in earned income
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so we put the thousand three hundred
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fifty dollars down here in line six and
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then finally if line six is more than
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line five which in our case it is we
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have three thousand three hundred fifty
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dollars on line six
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and three thousand one hundred dollars
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on line five so if line six is more than
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line five then the dependent must file
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an income tax return so i'm gonna throw
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a screenshot of a blank earned and
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unearned income worksheet here on the
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screen as you can see two and four the
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minimum amount and the maximum amount
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are always going to be the same
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those never change so you can just put
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in your numbers there and see if you
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need to file an income tax return
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if and only if you have both earned and
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unearned income now another thing here
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are some other filing requirements i'll
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throw a screenshot on the screen here so
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for the first part um dependent must
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file tax return if he or she owes any
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other taxes such as
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that's all kind of random stuff it most
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likely doesn't apply to you but just
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read through it to make sure that it
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doesn't what we want to look at is the
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last two bullet points here so if you
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have wages of over a hundred eight
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dollars and 28 cents from a church or a
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qualified church controlled organization
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that is exempt from employer social
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security and medicare taxes so if you've
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worked for a church or something a
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non-profit
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then that might apply for you so just
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look into that if you've worked for a
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church also the last one if you have if
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you are self-employed and you made at
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least four hundred dollars then you have
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to file a tax return as well okay so now
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we know how to file and what you need to
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know to file but like how do you
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actually do it like what is the process
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of going and filling in these sheets to
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actually file your taxes and for this
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you're going to just want to go to
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irs.gov the irs website here and they
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have a ton of information if you just go
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and hover over file here you can get
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information for individuals businesses
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charities uh you can get filing for
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individuals over here how to file when
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where all of that stuff they got pay how
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to pay on how to get a tax refund all
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that stuff honestly it's a lot of
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information so i'm not going to go
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through it all in this video i recommend
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you go and check out this website and
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look at what you need to work out look
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at for your specific situation and again
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as i mentioned in the beginning of the
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video i am not professional this is just
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all of my research that i have done i
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thought i would pass along to you guys
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so make sure you talk with your parents
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or a trusted financial advisor someone
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like that who can help you for your
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specific situation and help you actually
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file if you need to but if you have any
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questions please feel free to drop them
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in the comments i will do my best to
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answer them other than that i think
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that's all for this video i hope you
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enjoyed it i hope i explained it well
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enough for you like i said in the
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beginning it's not the most entertaining
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video but it's been important and i'm
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glad and proud of you for watching it so
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thank you all again for watching and i
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will hopefully see you in the next video
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peace
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