You don’t want to miss this episode of the Dr. Friday show! She talks about all the latest updates about tax filing, tax forms, as well as the following topics:
- Should I File For the Payment Protection Program?
- New Tax Filing Date
- New Tax Payment Deadline
- “I’m A Non-Filer, Can I Get The Stimulus Check?”
- Need to Update Adress For IRS?
- How To Know If You Qualify For Small Business Loan
- What Is the Best Way to Contact the IRS Now?
- Do I Pay Tax For The Stimulus Check?
- Are You Qualified For The Stimulus Check?
No, no, no, she’s not a medical doctor, but she can share cure your problems or your financial woes. She’s the how-to girl. It’s the Dr. Friday show. If you have a question for Dr. Friday, call her now at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.
Dr. Friday 0:30
Good day I’m Dr. Friday, and the doctor is in the house, and we are here. Hopefully, you can hear me well. We are working on trying to make sure that we can take your calls. There is so much going on. I do want to make sure we’re getting a lot of emails, and I want to make sure that you are actually all understanding that the new filing date is actually July 15. They have now extended both of our estimated tax payments. So the one that would normally be due April 15, as well as the one that is due June 15 to the July 15 deadline. So that is important news because for a while there they had extended the April but not June. So now we have both of those extended through till July 15 for both of the filings. There’s also a lot of questions about individuals who maybe you don’t file a tax return. Maybe you don’t make any income, but you’re not on Social Security or disability. There is now on the irs.gov for non-filers. There is a place where you can fill in the information so that you could still qualify for the stimulus check even if you are not filing taxes. So that is something. Again, on the irs.gov, there is also the ability to update your address and your banking information. I believe that updated just on Friday or Saturday or today’s Saturday. I guess time flies when we’re having fun. So there’s that information as well. If you want to join the show, you can 615-737-9986 taking your calls and questions about business owners. Of course, we have three different types of loans that we can be doing, or possibly receiving money on the 10th. They open the one up, and I will tell you there has been a lot of confusion coming down from who should be filing for the PPP. We call on the PPP (Paycheck Protection Program), who should be filing for the disaster funds for the COVID-19 on just directly on the SBA. I have been told by some of the local people here that they are starting to release funds at least for the ones that did go the ten thousand dollar hardship ones under the COVID-19 economic impact loans. I haven’t heard anything yet. So if anyone’s listening and you have received money from the paycheck protection, it’d be nice to know. So that way, a lot of listeners that are filed for it and we can if you’ve got a question again 615-737-9986. The bottom line is this, the first band of PPP loans or the paycheck protection loans is really for people that had 941-940 W2’s. So for employers, that was the first line they were trying to get money out to people that had payroll, so they could keep those employees still on paychecks and not have to worry about having them all hit the unemployment lines. The second line, which again really just opened up now, is going to be for the entrepreneur. Keep in mind if you have your own Corporation, and maybe you’re your only employee, so you have one paycheck, you would have qualified or will qualify for the PPP loan. Basically, what they’re taking is 12 months, dividing it by, taking the full-year dividing it by 12 months and then take it from there. So if you have 100,000 in any one individual making more than 100,000, the 100,000 is the most that they’re going to be able to claim. So that would be 8,333 roughly times 2.5. And that would be what you would qualify. Now out of those funds, because here’s another part. A lot of people said, “Well, I should be able to add in all of my rent or my mortgage interest plus my taxes in utilities.” No, what the law basically says, “We’re going to give you this much money out of that you can use up to 25% to pay rent and utilities, the other 75 has to go to payroll.” So if you’ve got questions on that, or if you just have questions about what’s going on and how you need to do something, please join the show. Call 615-737-9986. Why don’t we take Gladys or Gladdy in Woodbury?
Let’s see if I’ve got that one. Can’t see it. Oh, there you go. I could see it either. Alright, how you doing, sweetheart?
I’m okay. I was wondering about the hall tax, has it been postponed also?
Dr. Friday 5:40
Yes, the state has chosen to take the extension for the state as well. So the hall income tax, as well as franchise excise taxes, as far as penalties for not filing, are extended through to the 7-15-2020 deadline. Yes, ma’am.
Okay, thank you.
Dr. Friday 5:56
No problem. Thank you for calling. All right. I know my poor guy in the studio is just really working very hard. Why don’t we go to Milton? Hey, Milton.
How are you today? Yes, this is your Milton.
Dr. Friday 6:08
Oh, it’s my boy, Milton. I had hoped it was. What can I do for you?
Okay, hey, got a hypothetical for you. I understand married couples up to 150 can get a stimulus check if they didn’t go over the 150,000. If they did go over it, some people could get up to I think you can go up to 198,000. Is that correct?
Dr. Friday 6:29
Right they will start taking 5% from the 150 up to the 198-99 to get you to zero. So they’re gonna slowly means test them out of it, but they will get a percentage anywhere between those numbers. Yes.
Okay. Here’s my hypothetical. You can use your 2018 tax if you have not filed already, is that correct?
Dr. Friday 6:51
Yeah, they’re going to use it, but here’s the problem with that. They’re using 19 as the guide year, and we’re reporting the amount of stimulus on your 2020 tax returns. So 18 only using it too because a lot of people haven’t filed, you need to have at least file. But if your 19 is going to be high enough to kick you out, then theoretically, there could be a payback. They haven’t said that yet, Melton. That’s the concern.
You nailed it. That’s what I was gonna say. What if a person all of a sudden this year on their 2019, they made, let’s say, 200,000. But the year before it was 100, I’m speaking America, it was 150 or less. But this year, they made 200,000, but since they have not filed already, and they’re using 2018, then they technically don’t qualify, but by using 2018, they do.
Dr. Friday 7:49
Right. The question is going to be, is there going to be a payback that has not been actually stipulated yet? There’s going to be a lot of issues because you have people that their children were 16 in 2018? Is the IRS going to catch every child that turns 17? You know, one parent claims every even year, every odd year, the other person if the person hasn’t claimed is that person going to get the money? I get divorced in 2019, but the IRS doesn’t know yet. So I can see a lot of issues with reconciling this in 2020. At the moment, let’s be honest. Those people that know they may not qualify are not going to file their 2019 in hopes that they will get the money.
I think you’re right. Well, hey, you answered my question and kept yourself safe.
Dr. Friday 8:39
Thanks, you too. Thank you. All right. Bye. Bye. All right, we’re moving right on while we just go to the next one. Yes, Jim is next. Hey, Jim, what can I do for you?
Hey, good afternoon. Quick question. [Inaudible] Is that gonna qualify for the small business loan? And, the rain utility stuff like that, because obviously we’re getting killed right now?
Dr. Friday 9:06
That’s a great question because right now, on the current PPP, at least, it requires a Schedule Cline 31. Because they’re looking for people that are paying income tax on self-employed income. Airbnb people, most of them are filing on schedule E’s, and they’re only paying ordinary income tax. So I haven’t yet seen, and again, I’m far from probably being the total expert because every time I think I’ve got it handled, they come out with a change in this PPP thing. But at the moment, I do not see where we can add in Schedule E profits.
Oh, that’s scary, because there’s a lot of us out there running businesses.
Dr. Friday 9:46
I’ve heard, and I have actually quite a few clients, and I have seen quite a few blogs and different things, telling people that they can. But in all honesty, so far, I’ve only seen 1099 and schedule C. Again, I haven’t seen. Airbnb individuals don’t really receive it. They do receive a 1099 a lot of time from management companies or whatever. But it rules to a Schedule E., So I haven’t seen anything that gives me the ability for the justification that it’s going to be free money. That’s an important part of that conversation than just being able to get money. I know most people are not willing to pay it back. Right? They wouldn’t have everybody elsewhere. It’s going to be possible if free money for the first eight weeks or whatever. So, yes, keep listening. And if anyone is listening, that is an expert on Airbnb or that estimate. Please call in the show one other place to look.
Real quick. This is something that’s been coming up a lot. People have just been discussing this issue with Is dependent kids that are in college that has been working? How is that going to impact because it seems like they can’t get any relief, nor can they be considered dependents, obviously?
Dr. Friday 11:05
If they’re non-filers, there is a place now on the irs.gov. So meaning if the parents are not claiming them, yet they did not work. There is a place where they can list themselves as a nonfiler on the irs.gov. The website, they have taken that into consideration. The biggest thing Jim, my clients at least, is, many times the parents claim them because the children are in college and they’re able to get up to $2500 for educational credit, were in $500 for dependents. So it’s like $3,000 versus the child not getting anything in the child when he gets $1200. It is much better for us to still claim them as dependent and get the full educational credit versus getting the stimulus check. You can’t have both, though.
Okay, thank you very much.
Dr. Friday 11:53
Thank you so much. Those are great questions. So that’s the kind of thing this year I’ll be honest. In many cases, we’re actually amending returns for some people because of that. So either way. All right when you’re ready, we can hit Ron if you want. I think we’ve got time. Hey, Ron.
Dr. Friday 12:11
How are you doing, bud?
I’m fine. There is a provision beginning in the second quarter of 941.
Dr. Friday 12:23
Is that the 7200 Advance payment for employer’s credit?
There is a 50% credit for qualified wages. I haven’t been able to find anyone who could tell me what qualified wages are. Can you help?
Dr. Friday 12:41
Well, I did get several notices directly. We belong to the IRS website, right? So they continuously are sending us out, and daily we are getting changes and the biggest thing we had, there was a qualification for a couple of the new changes, but all of that applied. So qualified employers who would meet certain categories of employer’s gross receipts are below 50% of the quarter of 2019 to 2020 would qualify for a discount. But I don’t know this one is unqualified wages up to $10,000. That’s a form that we’re going to be hitting on for a lot of our people, but I don’t know anything about 50%. Is it 50% what? Do you get a discount of 50%? Or is it payroll taxes, or what is 50% for?
After taxes are calculated, then there is a 50% dollar for 50% credit off of your payroll tax liability for 50% of qualified wages.
Dr. Friday 13:55
That has not come across my desk yet. As I said, they did just make the advanced payment for the employer’s credit. There’s a new form for the COVID. But this is only applying to, and it applies to payroll taxes only. But it’s only talking about $10,000. It says the amount of credit is 50% of qualified wages paid up to $10,000. So maybe this is the same thing. But it’s only up to $10,000 of the qualified wages maximum. So you might want to look up the 7200 form 7200 Advance Payment because it does say 50% but up to $10,000. So there is a maximum not on 100% of 50% of your wages.
Well, thank you for taking my call. I get new stuff every day on this, and it’s hard to sort it all out.
Dr. Friday 14:44
I am with you. 100% You should see my desk right now because every time it’s just seems like every time we turn around, they change the qualifications. But if you do pull up that form, you will find out there is what’s called a qualified employer, and it’s pretty straightforward. The employer is either a full time or partially been suspended because of the COVID like my tanning salons and places like that. Or the employers’ grocery seats were below 50% of the prior quarter in 2019. So if 2019 second quarter was 50,000. In 2020, it was $25,000 then they would qualify. So you might want to look it up and just see if it helps you. Alright, and I do appreciate the phone call.
Thank you so much.
Dr. Friday 15:29
Thanks, sir. All right, why don’t we take a quick break and when we come back we’ll go to more of your guys’ questions, and you can join the show at 615-737-9986, and we’re gonna be right back.
We’re here, live in-studio. I guess the new life in-studio concept, and we’re gonna go right to the phone lines as well because they are burning up, which is the way I love it. Unfortunately, my guy in the studio is probably not loving so much, but he is doing awesome. So let’s go to Larry, how about that. He’s been on hold the longest. Let’s go to Larry. Larry, what can I do for you?
I’m retired, and I have a small trailer park with 11 units. In a small town, a lot of factory workers. As of yesterday, nine of them have been laid off. Is there anything after because their rent is part of the rent includes the water and electric which I have to pay. If I don’t have rent coming in, that’s not good for me.
Dr. Friday 16:40
Right. So I’m going to assume that you file that and again, this is a lot like the Airbnb question. I’m not too sure which way you file, but you might want to consider the payroll protection. It’s called the PPP loan that would help to keep you qualified. If you had to do that, Larry, you need to contact your bank because they’re handling the paperwork.
Okay, for a PPP loan?
Dr. Friday 17:08
Yes, and just see what they say as far as requirements, but I think under the new one I’m hoping for the gentleman like called earlier, but I think that you guys might fit into that at least I’m really hoping you would just like any other self-employed person.
One more question. My son has already found his income tax and everything. Does he need to go online and do anything?
Dr. Friday 17:35
No. If he’s filed if you filed his 18th and or 19th, they’re already entered. They’re already qualified. The check should be coming within the next few weeks if they have their way.
Okay, can I ask one more question?
Dr. Friday 17:51
My girlfriend, she is self-employed. She’s been self-implies most of her life. She’s been having a hard time trying to figure out what she needs to do. Do you have any ideas on that?
Dr. Friday 18:04
She would also qualify or at least, so she needs to also go to her bank because she would have a schedule C if she’s self-employed, and the current PPP does allow them to start filing for those loans.
Okay. Thank you very much.
Dr. Friday 18:19
You got it. Thanks, sir. I appreciate you very much. And good luck with that, because that’s not gonna be easy. Next person. I guess that would be Shane. Hey, Shane, what can we do for you?
Oh, I have a two-part question. If you answered it early, I apologize. The one if you filed in 2018 and if your banking has changed since then, I understand there may be a separate tool called Get My Payment. But I’ve also heard that you’re not allowed to change the banking information had on file because of fraud reasons. Do you know anything about that?
Dr. Friday 18:55
Well, I did get a thing yesterday or the day before from the IRS saying that they were supposed to be released on irs.gov, a place where people could update that information. I will tell you I am right now on irs.gov and I have found where if you’re a non-filer, a person that may be just doesn’t require they make $10,000 or less than a W2 and just don’t file, might want to go in there and put their information. They have to Get Your Payment in here, check your payment status, confirm your payment information for direct deposit, but it’s not active. I mean, it’s in here, but there’s no button to push. If you move since the last one, they say that it’s going to come through the mail no matter what and using get my payment application coming mid-April to let you know your bank account information. So I guess it’s just a matter of a little bit more time, and hopefully, they’ll have that online here so that you can go into get my payment application and correct any direct deposit information. So, I would keep looking at irs.gov.
The second part of the hand is if I had an installment agreement repaying the IRS, I heard that maybe the debt was temporarily suspended. And will I still qualify for that $1200 dollar payment if I am on an installment repayment?
Dr. Friday 20:17
Right, so the good news is you would definitely qualify still. The money that they’re giving for the stimulus will not go to any back tax issue. Only people that will have any issue would be back child support. Other than that student loans, other states whatever, you’ll still get your stimulus. I have not yet I have heard this a couple of different times, but I will tell you hands-on phone calls I’ve had none of them are telling me that there’s anything directly. Now, if you’ve lost your job, or if you know your household has lost, maybe one of you has lost the job, whatever. I would suggest contacting the IRS, and this is where the problem comes. The IRS is not open. I mean you cannot get through any of their phone numbers that I keep calling, I’ll hold for three hours either get hung up on and a lot of them. Even the one we usually have, which is a preparers number is closed. They don’t even have anyone manning those lines. So for me to tell you that, you know, the problem is how do you contact the IRS if you’ve lost your job and you need to put a hold on your account? At this moment, your best bet is the certifier letter telling them exactly what’s going on. And pay as much as you can when you can. But if you can’t, just don’t. I mean, you’ll have to deal with it when the IRS reopens. But I haven’t heard that they’ve stopped direct collections and answer to your question.
Dr. Friday 21:38
No problem. Thank you for calling. Appreciate it. Alright, let’s move right on to looks like David and then Kevin. Hey, David. Yeah. Can I help?
Yes, I’m wondering I’ve got custody of a child, and I draw Social Security. But not to not only am I draw 14,000 and something a year. Am I file income taxes?
Dr. Friday 22:03
No. And you’re one of those individuals that if you have access to a computer, they’re suggesting you go online and to put that information. Now I’m assuming the child is not collecting Social Security benefits?
Dr. Friday 22:18
Okay, I didn’t know if it’s from a spouse that had passed away or something. So you automatically get the stimulus because you have social security. The difference is they don’t know about the child because you haven’t filed a tax return with that child on it. So you’re going to want to go on to the IRS and click on where it says non-filer, the very first page has it on the home page, and just fill in the information about that child so that you would qualify for the additional $500. Is this child under the age of 16?
Dr. Friday 22:48
Okay, so that you would be a prime example of what they’re they’re looking for because, by law, you’re not required to file. You’ve done nothing wrong, but for this particular situation, they have no idea that you’re raising that child because, all in all, there are no tax documents showing it.
If I file taxes, would I draw a child credit on him on taxes?
Dr. Friday 23:12
No, child credits only provided when you have earned income.
Oh, well, I was wondering about that. So I am okay, not filing?
Dr. Friday 23:22
Yeah, you’ve done everything correctly, but this is an unusual situation.
Okay, now, what would they do if his mom has already filed him?
Dr. Friday 23:31
That’s a whole different conversation, and you might want to have a conversation with her or whatever. Because at this point, she’ll get the $500 and she’s claiming him, so the IRS will say that’s not our issue. That’s kind of your problem. They don’t get in the middle of that, okay?
But if I show them that I have custody, then I will get $500. Right?
Dr. Friday 23:53
Correct. And then she will actually have to return any child support or any child credits that she has. Because she’s been illegally claiming the child.
Okay. Thank you.
Dr. Friday 24:05
All right. Thank you, buddy. Appreciate you. Thank you, Kevin, how can I help you, sir?
You may have answered this already, but I have not been able to listen to the show. Two questions. I’m assuming that when we get these stimulus checks, taxes are going to already be taken out.
Dr. Friday 24:30
It’s actually free. It’s not taxable income at this point. So there will be no taxes coming out, and only people that have to do any kind of payback would be people that maybe don’t qualify for it in 2019, but they use the 2018 information in which they look like they did qualify.
Okay, the second question is, will we have to pay taxes on it? I know what you said the right. It’s not taxable income. If we go out and spend it all is likely that we’ll have to pay taxes on it on this on the next year’s return.\?
Dr. Friday 25:11
So again, I think the only people that are going to have any question on that would be if, let’s say, Kevin, you’re a married guy, and you made $200,000 in the year of 2019, and you would then not be entitled to basically any of the money. As long as your income is basically the same, so if you’re single and you make less than 75, or you’re married, and you make 150 or less, you will not have any questions in the future. I mean, you’re gonna be within the criteria, it’ll be people that are between the 75 and 95, and the 150 and 198. That will have a possibility of a repayment coming back.
My wife has lost a job. Did I hear you say that before we pay the taxes that the IRS is due this year that we could send off a registered letter to them? Telling them that she’s lost her job?
Dr. Friday 26:17
Are you in a payment plan with the IRS? Do you owe money to the IRS?
Dr. Friday 26:26
You owe $2,000?
Yes, we do. She lost her job about three weeks ago.
Dr. Friday 26:34
Okay. So I would actually certify a letter to the IRS notifying them of a change of income in the household in which you’re asking for a delay in collections. Again, I have not seen anything from the IRS saying that payment plans have been put on hold. That would be great, but I haven’t seen that. So I would definitely do that so that you could, delay the collections right now while you’re household is on a smaller income.
I appreciate all the help. Thank you very much for the show.
Dr. Friday 27:07
Thank you, sir. I appreciate you. Alright, let’s go to Steve before the break. Hey, Steve.
Hello. I received Social Security. I don’t file income tax because, as you said, I’m not required. My question is, my Social Security comes automatically into my bank account. For someone like me that doesn’t file income tax, will I get a paper check? Or will it come into my automatic bank account?
Dr. Friday 27:41
My understanding is the bank account that you receive your Social Security benefits. Of course, the IRS makes those payments, you know, Social Security’s tied in and so they have that information and your stimulus check will go into that same exact account.
When they first start sending them out?
Dr. Friday 27:58
Well, I don’t know. I’m not sure When they’re doing the Social Security versus who they’re choosing to be the first secon. I did get notice here that they’ve already started issuing. So they’re supposed to be coming out next week with some. I don’t know who’s first, second, or third, but you will see it sometime. I’m gonna tell people in the next 30 days if they’re on schedule.
Yeah. So since I’m already on my social security, going into my bank account, I don’t have to do anything?
Dr. Friday 28:26
That is correct.
Yes, thank you very much.
Dr. Friday 28:29
Thank you. I appreciate you. We will take another break here, and we come back we can go to more of the phone calls if you want to join the show. And these are great questions, guys. I really appreciate it. 615-737-9986 is the number here in the studio, and we’ll be right back.
All righty, back here in the studio. So if you want to join us 615-737-9986. I just want to make sure you guys are understanding there are so many changes so many things happening. Again, probably the number one thing to understand is that the filing date is now not next Wednesday, April the 15th, but July 15. Everybody’s tax returns have been extended to July 15. This includes the state Hall and franchise excise tax. And if you file in other states like California, they have extended theirs to that date. And many other states have followed suits, pretty much most of them, I believe, have followed to everybody moving the date to that. This also applies to estimated payments again, up until about two or three days ago, they had the April 15, extended to July 15. But they had not done the June. Now, April and June 15. So you’re really going to make to estimated payments on July 15, as well as pay for any opening or any money that is due for your 2019. Again, just the point of interest here, you might want to consider. I will tell you that in many of my cases, some of our clients have not had a huge change of income situation. And so they are filing their estimates in April and filing again in June. So that way when the taxes are due in July, they may be sending that money in, but instead of having everything due on one day, sometimes it’s a bit easier to control than if again, you haven’t had a hardship of filing taxes or knowing what you’re going to do. If you run a small business, I’m going to tell you right now, and you really do need to sit down and take a look at some of the different things available. When I say small business, I do mean Airbnb’s, schedule C’s, LLC, partnerships, corporations, make sure you’re not leaving any money on the table. Alright, so let’s go ahead and go back to the phones. We have Pat on the line, and we’ll start with Pat. Hey, Pat, what can I do for you?
Yes, ma’am. This is Pat. I have filed my tax three years in a row now since I was divorced. For the third year, they have told me that my social security number was assigned to a deceased person. I contacted them, and they told me they could not speak with me, that I would have had to have my CPA or my tax preparer to contact them. So I’ve had any luck with that, especially with you know the current situation.
Dr. Friday 32:06
Once the situation has passed what you need to really do is you need to make an appointment downtown and either get a tax advocate to make an appointment with them when you can actually sit down with someone again or just make an appointment downtown and bring proof of who you are, you know your birth certificate, your driver’s license, social security card all the things that we can use to show that you are. They need to go in the file and make you alive again. There’s somehow they’ve had, but you need to because this is going to continue. So what you’ll have to do is mail-in those returns, but that may not stop them from that. They’ll hold your refund, possibly because they still don’t believe you are who you are. And I’ve actually had a similar thing they actually made me dead for a while. So I feel for you it is very frustrating because you’re like, “I’m alive. Hello?” But you know, something as simple as hitting the wrong button apparently on a keyboard can do that to us. So my suggestion is unfortunately at the moment, nothing you can really do. If it, for some reason, holds up your stimulus because you haven’t been able to get. Now, were you mailing in the returns? Have you gotten any refunds or have they held all those back? Or have you owed money every year?
I haven’t owed any money at all for three years. My mother did pass away the previous year, and I know my CPA did her tax return as well. So that’s the only thing I can figure is maybe somehow it got mixed up or something I really don’t know.
Dr. Friday 33:41
That’s possible. If you have a CPA, again, they’re not going to have much success until we’re able to actually get ahold of people that are working that actually can do something. So hopefully in the next 30 days, you can get back at it, but until then, the good news is for some reason if somebody hasn’t filed the last three years taxes because it’s something bizarre like this and the IRS is holding you up, the stimulus is still available in your filing for 2020 or getting later in the year.
Stille gets my security check, and I did contact security for the four years,s and they sent me a form that has all the information on it, and I was going to go ahead and mail in that plus a paper copy of my return.
Dr. Friday 34:33
Right is social security all you have? Or do you have other income?
I have just a small amount of some interest from some investments, but not enough to put me. It’s still the adjusted gross incomes $1300 or something.
Dr. Friday 34:54
Gotcha. So it’s not enough. So theoretically, you are not required to have to file. If you’re that low, so you may still get the stimulus because you’re really only under so security. You know, I’m saying? And they have you already on the rolls, but yeah, I wouldn’t let it lie because you never know when that’s gonna come back and bite you. So once things are able to move forward again, you really do need a tax advocate to help you, and you probably have to go in and prove you are who you are.
Okay, all right. All right. Hopefully, all this will be over pretty soon.
Dr. Friday 35:25
I hope so.
Oh, me too. I appreciate you helping me today.
Dr. Friday 35:30
You too. Thank you very much. Appreciate you. Alright, let’s see what Mike has. Mike from Dixon. Hey, Mike. What can I do?
Yes. In 18, I made $86,000. I’m single, but I have a dependent. 19 I only made 73,000, but I haven’t filed my 19 taxes yet. So are they gonna give me the stimulus based on the 18, and it’s so if I file right now, can I go ahead and get the full amount?
Dr. Friday 36:08
Okay, so I’m not too sure what they’re using for a cutoff date. I know a lot of my clients are asking the same thing, but they’ve not given that. So what’s going to happen worst scenario, they’re going to use it based on 18, give you a percentage, because you’re not going to get zero, but you’ll get a percentage. Then when you file your 20, they’re going to give you the difference. If assuming that 19 was like you said, 73, which is below, they will then give you credit on your 2020. So you won’t lose it, you just won’t get it as fast as you might like it.
Oh, thank you very much.
Dr. Friday 36:41
No worries. Thanks. So when it comes to these kinds of questions, guys, I don’t really know I keep looking on here, but they’re not even telling us who’s going to get the checks first. You know, I don’t know if they’re looking at typical income levels if they’re just starting with the alphabet if they’re going to the social security on one side Railroad Retirement and giving them the first checks, not sure. I have people that every day are having me make sure I hit the send button to make sure that the information is going out. But I don’t know if it wasn’t filed before February 15? Is that what they’re using? Because of the IRS, even though we send them off, we all know it could take up to 21 days for them to actually get it in the system. And if they’re already moving that information up, are they really just moving it around? So it’s gonna be a little questionable on how and when, but I will tell you, as frustrating as it might be, you’re not likely to lose it. If you meet the criteria based on your 2019 when you fall your 2020s, but it’s, it’s going to be a little bit challenging. As I said, there’s no perfect science to this. They just had to draw a line in the sand and say this is the criteria. Anyone that’s on this side or that side is going to win or lose, but that’s about the best that they have. All right before the break, let’s hit Ginger real quick. And then we’ll hit the next break. Hey, Ginger. Hey, sweetheart, what can I do?
Hey, how are you?
Dr. Friday 38:15
I am good.
I have a question about the rental situation. I understand that it’s all right. It’s been mandated or whatever for people to not pay their rent for a period of months. And my question is if you’re a landlord, is there going to be any assistance or what can you do to collect the back-rent? When is this over?
Dr. Friday 38:41
That’s a great question. I have not actually heard that people cannot pay their rent. Now I do know that if you have a note with a bank, they have given permission, or the banks are basically furloughing your mortgage note for 90 days for people that have lost jobs or have been affected by this. I have not yet, and I’m hoping none of my renters are listening to this show, thinking there is something. I have not heard people cannot pay rent.
We have three that have stopped. That even bringing them back about the mortgage payments, when this is over, and people are liable for three or four back mortgage payments they didn’t make. I mean, is there going to be a lot of foreclosures because they won’t be able to afford it?
Dr. Friday 39:31
Well, my understanding is this and again, a friend of mine that’s in the mortgage business, I was talking to him because that’s what I’ve been trying to tell clients. Be careful, right? Because what sounds good right now is all furlough everything for 90 days. Are they then going to turn around and say you have to pay it all back within 90 days or something? I mean, in the banks are basically saying, “We’re going to furlough you, but we haven’t made a decision on how we’re going to treat the furlough.” Well, are they going to increase your interest rates? Now he was saying that the part of the stimulus that was released is giving money to banks for the fact of the furlough. So the bank will be being somewhat compensated. This is my understanding. And so I think they’re looking at adding it to the end of merging it into a recalculation re-amortizing the loan based on the 90-day break, adding in the additional interest and re amortizing that over the remaining years or something. That’s my understanding. It’s a lot of work for banks. I’m not too sure. So hopefully, but the problem is this not just like the gentleman called earlier, not all landlords have just mortgage interest. I mean, some include rent, some include utilities, insurance, lawn care, repairs, and maintenance. If we don’t have money coming in to cover those expenses. What are we supposed to do? Do we turn off the utilities because we may not be able to evict, but are we going to do? And I know not one landlord listening wants to do anything like that doesn’t benefit anyone for them not to have it. But I haven’t heard anything about the fact that people, they’re probably not paying rent because they’ve lost their jobs. But if they haven’t lost their jobs, there is absolutely nothing on the books that say you should not pay rent, and there’s nothing stopping you from doing evictions. Again, no one wants to evict someone that just lost their job. I get it. But there has to be something somewhere in the middle of that because you don’t want to lose the house because you have someone in there that’s going to be in there for 90 days without paying rent.
Right. I’d like to see some kind of guidelines.
Dr. Friday 41:39
Yes, I’ll look a little bit more into that ginger as well. If you want to email me, I’d be more than glad to share with you what I find if there is anything out there. Again, there may be some sort of guidelines for Schedule E. You’re talking like a lot, the others. The problem is also on the fact that many people on a Schedule E don’t show profits. Because they actually invest as much back into the properties is between depreciation and everything. They’re looking at people with profits to get loans. Well, Schedule E people don’t always have profit. I’d be more than glad if again, I’ll get my email address out, but if you want to email me, I’d be more than glad to share what I can find. You’re the first that’s ever said that. I mean, I have been very blessed so far that everyone that has a rental on me has not yet come with me that situation, but I’m waiting for it because well, longer, this lasts longer and harder. It’s going to be for individuals. So we’ll see what comes up/
I’m original, right? [laughter]
Dr. Friday 42:41
I like it. Yeah, you’ve come up with a problem that I’m sure there are other listeners, and that’s what the Airbnb people are very running into their houses are not renting, yet. They have mortgages do how do we cover these things? Even if you were to furlough, the mortgage, what does that really mean for you and me? We still have other expenses that are not covered. We can’t do anything about it because we can’t rent or do anything until all this is has ended, so it’s going to be interesting to see what comes of it, Ginger. Hopefully, you can hold out till it’s over. Okay?
All right, I’ll send an email. Thank you so much.
Dr. Friday 43:16
I appreciate you. Thank you very much. All right guys, why don’t we take one more break if you want to join the show we have a few minutes after we come back 615-737-9986. And if you want to email me, It’s Friday@dr.friday.com, and we’ll be right back.
If you want to join the show, you can do that. 615-737-9986. I do want to jump in I had one of my wonderful listeners did send over I’m not sure exactly which looks like it’s out of an accountant magazine. Still, it says here that the IRS has suspended payments due or existing installment agreements from April 1 to July 15. Interest continues to accrue on the balance new installment agreements for people who cannot pay the balance continue to be available on IRS.web. Not always because that is not working. This is the Journal of Accountancy. So thank you, Shayne, very much for that. Appreciate it. So again, if you’re in a payment plan, an existing payment plan payments that you would normally make from April 1 to July 15 have been suspended, but the interest is still accruing. So my answer to that would be if you can make the payments and you’re still in a place where not everybody is out of work, then I might suggest you continue to do that. All right, thank you very much again, let’s go right to the phones. We got Bill in Colombia right down the block. Hello, Bill.
Hi, ma’am. I am on social security, and I’m still working. My wife is working and on social security. Will we be able to qualify for the stimulus chapter if we’re under 97,000?
Dr. Friday 45:27
Yeah, you’re married. Sorry. So yes, if you’re making 90, it’d be 150,000. As long as you’re under 150, you guys would qualify for the $2400.
Okay. And I have a sister that is retired. That’s 80 years old. They don’t pay taxes. All they get is a small Social Security check. Will they be anybody in Suspiria like that get tests?
Dr. Friday 45:54
Yes, any individual who receives Social Security is going to get a stimulus check. Yes.
If they are getting a security check, they’re not. I don’t think they have their checks deposited.
Dr. Friday 46:08
They’ll receive it by mail. However, they won the Social Security will be the same way they received the stimulus.
Okay, and my daughter’s a disabled veteran.
Dr. Friday 46:18
The same thing that’s going to get them as well.
Okay, great. Thank you, Dr. Friday,
Dr. Friday 46:23
Uh-huh. All right. It sounds like the music is coming on. And that means I am getting close to the end of the show. So I want to make sure if you’ve got questions, the easiest way to get to me is either, most likely email: email@example.com. You can also check me out of the web. Drfriday.com. You can reach me via phone 615-367-0819.