Dr. Friday Radio Show – January 20, 2024

The Dr. Friday Radio Show
The Dr. Friday Radio Show
Dr. Friday Radio Show - January 20, 2024
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In the January 20th episode of the Dr. Friday Tax Show, Dr. Friday, an experienced financial counselor and tax consultant, delves into crucial topics for the 2024 tax season. This episode highlights important updates including:

  • Beneficial Ownership Information Compliance: Urgent for business owners to comply by January 1, 2025, with significant penalties for non-compliance.
  • IRS E-file Opening Delayed: Now starting January 29th, impacting early filers, especially those with earned income and child tax credits.
  • Social Security and Tax Liabilities: Discusses how income changes affect Medicare costs and child support calculations.
  • Small Business Tax Filings: Critical deadlines for 1120-S and 1065 forms emphasized.
  • Handling Disability Benefits and Trust Incomes: Insight into tax implications for those receiving disability benefits and beneficiaries of trusts.
  • Interactive Listener Queries: Addresses a variety of questions, from personal tax situations to complex issues.

Essential for business owners, retirees, and individual taxpayers, this episode offers a wealth of information to smoothly navigate through the tax season.

Transcript

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No, no, no, she’s not a medical doctor, but she can sure cure your tax
problems or your financial woes.
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She’s the how-to girl. It’s the Dr. Friday Show.
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If you have a question for Dr. Friday, call her now. 737-WWTN. That’s
737-9986.
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So here’s your host, financial counselor and tax consultant, Dr. Friday.
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G’day, I’m Dr. Friday and the doctor is in the house on this very cold
Saturday.
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Many of you may be at the house, not actually out running around, but who
knows?
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When I went out earlier, it looked like it was a bit busy out there.
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So, I will say that many people probably have enjoyed the snow a little bit.
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But, hopefully that will go away so we can get back into some serious
business.
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A little hard for people to get to their tax appointments when there’s snow
coming down.
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So, if you want to join the show today, if you’ve got questions concerning
taxes or things that you may have heard or you’re working on,
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either your 2023 filings or preparing for 2024, something that may be coming
up,
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all you have to do is pick up the phone. 615-737-9986.
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We’re getting a lot of phone calls on the BOI or the Small Business
Compliance Guide that’s put out by the Finance Criminal Enforcement Network.
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This is a true thing, beneficial ownership information, BOI.
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Many of you are getting emails or being told by other individuals that this
needs to be filed.
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It does need to be filed and the rules are kind of interesting.
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So, if you already have a business and it started prior to 2024, you have
until January 1st, 2025.
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If you’ve opened it in this first period, you only have less than 90 days to
actually put this BOI in.
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So, if you’ve just opened up a new LLC or a new corporation, then you need
to make sure if you are required to file the beneficial ownership
information,
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that that is done. Basically, they’re going to have us doing it within 30
days.
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And the penalties, guys, are ridiculous. According to the last thing I read,
the fine is $500 a day if it is not done.
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That is ridiculously high. Again, this has to do, it’s not a tax, it’s the
Finance Crime Enforcement Network, the U.S. Department of Treasury.
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This is kind of like Big Brother watching. They want to know who the
partners of these companies are.
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They are requesting legal names, addresses, Social Security numbers, dates
of birth,
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and you have to have a picture of your driver’s license or passport.
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Each person that is more than a 20% owner of a company.
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So, this is really something we’re going to need to stay on top of because
that can get very expensive very quickly.
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Also, you’re going to want to, obviously, it’s tax time.
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So, now is the time I’m showing that most of the IRS is not going to accept
e-filing until January 29th now, is what we’re being told.
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And if you have earned income credit or child tax credit on the earned
income,
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that could be as late as the first or second week of February before those
funds,
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even if you e-file on January 29th, they may hold that up for a week or two.
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They’re trying to make sure they’re checking to make sure these are your
children, that you are entitled to those fees.
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They find a lot of fraud going in that situation.
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So, they’re going to basically be doing their best to do identity theft and
all that before they send out the refund.
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So, don’t rush and be very careful.
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I know there are organizations, tax companies out there that will give you
your money up front.
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I will say I’m not an advocate for that.
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Personally, most people have lived the whole year without that money, a few
more weeks,
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and not having to pay large fees for your own money just doesn’t make a lot
of sense.
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But I get it.
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Just be careful of what you sign when it comes to that,
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because if the IRS does not give you the amount of refund that they’ve
advanced you,
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or you end up with a situation, keep in mind that is a loan.
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That is not something that they’re giving to you.
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And if the IRS doesn’t give you that money, guess what?
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You’re still responsible for giving that money back, and the interest rates
are pretty high.
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So, again, just if you’re running to get your taxes done because you need
that money to keep things going,
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that’s obviously a situation.
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But just be careful when people are giving you advanced credits on your tax
returns,
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because not everybody is going to get every dollar.
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Sometimes they have found that a large number of people that get the child
credit is one that gets the earned income credit,
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that they’re finding more and more tax fraud in that.
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So just be careful.
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Let’s see.
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What else?
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So we’ve covered that.
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Obviously, it’s tax time.
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We’re working on the 2023 taxes, obviously, as we speak.
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Many of them do not yet have the ability to do the clearance of — you know,
to e-file them,
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but they are and should be getting ready soon.
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That way, then you can have your K-1s and then finish up your personal tax
returns.
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Remember, if you are a small business owner and you do 1120-S or 1065s,
those are due March 15th.
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So you need to make sure those are filed before you file your personals or
at the exact same time,
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because you can’t finish your personal tax return.
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If you have a sub-S corporation or if you’re a member of a 1065, you must
get that first.
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Also, trust.
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If you had a family member that passed away and there was a trust in some
cases,
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there are K-1s that come from those trusts, and therefore, you filing your
personal tax return,
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you may want to check with the executor or whoever handling the taxes.
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We’ve had many cases where people come back and didn’t realize that they
were going to have some taxable income
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that came in from a trust.
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Not everything that comes from when someone passes away is tax-free.
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Sometimes there are taxable situations, and that can pass directly to the
beneficiaries
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and therefore become a tax situation on that.
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So, very important that you have all of your tax documents.
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Don’t just rush to that finish line to make it work.
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If you need help or have some questions on your taxes,
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you can join the show today at 615-737-9986, 615-737-9986,
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taking your calls here in the studio.
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We’re getting a number of people that are working on taxes.
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I had an interesting phone call that came in earlier this week with a person
that had done their own taxes,
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and they called and said, “Hey, I’d really like you to take a look.
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I’ve done my own taxes, but it doesn’t seem quite right.”
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And it really came down to she had married this year,
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and instead of being head of household and claiming her child,
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she was married filing separately.
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And in that case, married filing separately, you don’t qualify for all the
same things
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that you would if you were head of household.
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So instead of getting a large refund, which is what she was kind of used to
getting,
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now that she got married and married filing separately, you know, kicked out
a lot of her credit.
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So again, sometimes if you have life changes, sometimes you end up divorced,
you end up married,
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you have a child, all of those things can happen.
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But sometimes, depending on how you file your taxes, sometimes married
couples,
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due to other reasons, be it maybe, I don’t know, educational credits,
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as far as let’s say you have student loans, and sometimes if you file your
own taxes,
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they don’t take into account your husband or your wife’s income,
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so you want to stay married filing separately on those,
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so you keep your student loans at a payment you can afford necessarily,
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that then there’s a child, and then you normally can’t get all the credits
that would come with that.
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So there’s a price to pay when married filing separately, as far as I’m
concerned,
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there’s penalties, and you want to make sure that you’re making the best
choice.
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Sometimes you can’t always get every dollar back because of the benefits you
may be receiving
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in some other fashion.
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So it’s important to make sure you know how you’re filing taxes,
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and what you may or may not be giving up.
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So again, that’s kind of an important question that you have to deal with,
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or make happen for yourself.
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If you’ve got a question, you can certainly join the show.
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Again, 615-737-9986, 615-737-9986,
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taking your phone calls, talking about my favorite subject, it is tax time,
guys.
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2023 is here. Many of you will be getting, if you haven’t already gotten,
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you will be getting your W-2s.
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Keep in mind, everyone has until the last day of January, if that’s on the
weekend,
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the first day of February, to file them as employers, right?
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So if your employer hasn’t given you a W-2 yet, do not freak out.
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They have, theoretically, until January 31st, which does fall in the middle
of the week.
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So they have until January 31st to get them out, and then as long as they
hit the mail by January 31st,
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they’ve met compliance, so it could be first week of February before you
receive it.
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And again, if there’s e-file or e-mails, a lot of them are sending links out
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where you can obtain your W-2 through an e-mail link.
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Then again, that’s something you want to do, and that’s not a big deal.
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But, you know, making sure that you have access, and if you don’t have
access,
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then that would be an interesting conversation, because then you may have to
ask them to mail it,
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or you may have to find someone that can upload it for you,
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because a lot of employers have gotten away from doing any kind of mail at
all.
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All right, let’s see if we can hit Prey line one in Nashville.
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Hey, Prey.
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>> Hello, Dr. Harvey. How are you?
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>> I am doing great.
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First off, I want to say thank you again.
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I talked to you many years ago about a tax situation, and you were able to
set me straight on what I needed to do.
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>> Well, thank you. Appreciate the phone call. I’m glad I was able to help.
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>> Okay. In August of 2023 — excuse me, August of 2020, I became disabled.
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And I had a short-term/long-term policy with my employer.
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I paid for the short-term. They paid for the long-term.
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And they made me file for Social Security Disability.
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>> Right.
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>> In 2022, I paid $4,300 income tax on those benefits.
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>> Right.
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>> And January of ’23, I was approved for my Social Security and started
receiving my benefits.
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I have gotten some — I think it’s a 1099.
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And I’m just curious about what I need to do, and have I already paid taxes
on 2022 or what?
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>> So when they gave you your disability, did they back pay you on Social
Security?
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>> Yeah, I got a lump sum, and everything went to the insurance company and
the lawyers.
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>> Right.
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Unfortunately, you’re not going to get a lot of benefit from any of that.
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But you can go back and theoretically amend 2022.
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I don’t know if that would be beneficial or not without looking at it.
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But you might want to — you know, you may have to do that to see.
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But in 2023, you can either pay all of it — is that the only income you
have, or do you have other income?
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>> I did about — 2022, I did about $9,000 with Lyft.
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And this year, I did approximately $7,000 with Lyft.
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>> Okay.
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So when you take off your cost of running Lyft, you probably will have zero
tax on your Social Security disability or whatever.
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Because it’s not taxable unless there’s enough earnings.
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>> Well, the $7,000 is after all my deductions.
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>> Oh, okay.
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So you still won’t probably pay tax on it.
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Because if you take half of that, you’re not going to probably hit the
provisional tax code.
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You may, because it’s probably a high number in 2023.
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You may have to.
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So there’s two sides.
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You can go back and redo the years in which the Social Security was
reported.
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So if they backed it to ’21 or ’22, you could go back and amend those years,
keeping your provisional income lower in 2023.
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I don’t know if it’s worth it without looking to see what your provisional
income is, meaning half of your Social Security plus your earnings to see if
you’re single or married, what that amount would come to.
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You could end up paying a few dollars in taxes.
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But it may just not be worth opening up 2022 to compensate 2023.
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Without looking, I can’t tell you.
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But that would be not as easy as a fix as maybe your last time.
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But the answer to this is you may have to amend ’22 to get ’23 straight, or
you may just file everything under ’23 and see if it actually creates a
taxable situation.
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Because Social Security itself is not taxable.
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It is based on our earnings that we get outside of Social Security.
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>> Okay, so I’m going to need professional help with this then, obviously.
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>> Probably be easier for just this year.
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After this year, it will be fairly simple.
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You know, I mean, as long as you keep your driving down to a minimal, you
probably won’t have to worry about filing taxes with exception of any tax
that’s due on the lift side.
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>> Okay.
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>> And who — can you recommend — can you handle this, or can you recommend
someone?
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>> You can get my office call on Monday, and we’ll be more than glad to
either recommend someone close to you or we’ll see if we can help.
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>> Okay.
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I really — I greatly appreciate the help.
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>> Thanks, Prey.
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All right.
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We’re going to take a quick break.
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And then when we get back, we’re going to hit Ian in Nashville.
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We’ll be right back with “The Dr. Friday Show.”
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[ Music ]
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All righty.
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We are back here live in studio.
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And we are going to go right to the phone lines because Ian in Nashville is
kind enough to wait through that long break.
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Hey, Ian.
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>> Hi, Beth.
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>> What can I do for you, sweetie?
00:14:54.000 –> 00:15:04.000
>> So I received a financial settlement which was in regards to settling
outstanding medical expenses.
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>> Okay.
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>> And I was told that it should be tax-free because it was relating to
outstanding medical expenses.
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>> Whoever told you that was correct.
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Yes.
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>> Well, good.
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Thank you.
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>> Thanks.
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>> What does — so I’m going to get something like a 1099 from my lawyer.
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What does it need to be specifically to make sure it doesn’t trip me up
tax-wise when it then goes through my tax processor, please?
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>> Honestly, you won’t most likely get a 1099 from your lawyer.
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They will send you a distribution worksheet normally that explains —
because normally they don’t 1099 because only 1099s generate into an income
source, be it rental, medical, whatever.
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And in your case, they’re basically reimbursing you or paying you for
medical situation.
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So there should not be a 1099 from him.
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There should be just a distribution.
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>> Okay, because the defendants, I guess, paid my lawyer who then took his
part and then paid me.
00:16:19.000 –> 00:16:22.000
So I’m just trying to make sure that I get all the paperwork lined up.
00:16:22.000 –> 00:16:23.000
Thank you.
00:16:23.000 –> 00:16:24.000
>> No problem.
00:16:24.000 –> 00:16:25.000
Yes.
00:16:25.000 –> 00:16:26.000
He would have collected the money.
00:16:26.000 –> 00:16:28.000
The money would have went to the attorney.
00:16:28.000 –> 00:16:30.000
The attorney would do a distribution.
00:16:30.000 –> 00:16:37.000
After everything else that was required to be paid with the money was paid,
you should just get a check from the attorney breaking down the total.
00:16:37.000 –> 00:16:42.000
I got 200,000 and here’s your 50,000 because we paid everybody kind of
situation.
00:16:42.000 –> 00:16:44.000
But that’s all there should be.
00:16:44.000 –> 00:16:46.000
There should not be a 1099.
00:16:46.000 –> 00:16:53.000
>> So if I ask him to make sure I get the distribution worksheet, that’s
exactly what my tax preparer will need?
00:16:53.000 –> 00:16:58.000
>> That’s all they should need because the tax preparer will not be using
any of that on their tax return.
00:16:58.000 –> 00:17:02.000
This is outside the tax window because it is not considered earnings.
00:17:02.000 –> 00:17:05.000
So it will not report on your physical tax return.
00:17:05.000 –> 00:17:06.000
>> Great.
00:17:06.000 –> 00:17:07.000
Thanks a lot.
00:17:07.000 –> 00:17:08.000
That’s really helpful.
00:17:08.000 –> 00:17:09.000
>> No problem.
00:17:09.000 –> 00:17:10.000
All right.
00:17:10.000 –> 00:17:11.000
Thanks, Mike.
00:17:11.000 –> 00:17:12.000
All right.
00:17:12.000 –> 00:17:13.000
Let’s see if we can hit Charlie in Woodbury.
00:17:13.000 –> 00:17:14.000
Hey, Charlie.
00:17:14.000 –> 00:17:15.000
>> How are you doing?
00:17:15.000 –> 00:17:16.000
>> I’m doing awesome.
00:17:16.000 –> 00:17:17.000
How about you?
00:17:17.000 –> 00:17:18.000
>> Oh, great, man.
00:17:18.000 –> 00:17:28.000
Listen, what if you’re used to filing paper, sending in paperwork the
old-fashioned way, you know, your 1040 and your other forms?
00:17:28.000 –> 00:17:31.000
I read somewhere that they’re not going to do that anymore.
00:17:31.000 –> 00:17:33.000
Everything has got to be electronic.
00:17:33.000 –> 00:17:34.000
>> That is correct.
00:17:34.000 –> 00:17:39.000
They are not accepting paper unless there is extenuating circumstances.
00:17:39.000 –> 00:17:49.000
There is still some people that can do some of it through because of
disability and unable to use a computer or, you know, certain things like
that.
00:17:49.000 –> 00:17:55.000
But just because it’s easier, and I know I have some clients that just don’t
do anything on computers.
00:17:55.000 –> 00:17:56.000
You know what I mean?
00:17:56.000 –> 00:17:57.000
They really don’t.
00:17:57.000 –> 00:17:58.000
>> I’m kind of like that.
00:17:58.000 –> 00:17:59.000
I’m kind of like that.
00:17:59.000 –> 00:18:08.000
>> Yeah, and if that’s the case, you may be able to apply for a waiver, but
what they’re basically forcing people to do is to go,
00:18:08.000 –> 00:18:14.000
and even if you complete your own taxes, for you to go in and have somebody
submit them for you.
00:18:14.000 –> 00:18:16.000
>> That would probably be the best way to do it.
00:18:16.000 –> 00:18:20.000
Like, if you’re a farm bureau, they have tax assistance.
00:18:20.000 –> 00:18:26.000
I thought I might drop in there and do my paperwork ahead and let them send
it in for me.
00:18:26.000 –> 00:18:27.000
>> Absolutely.
00:18:27.000 –> 00:18:30.000
>> And there are clients that do — I mean, physically they do their whole
tax return.
00:18:30.000 –> 00:18:35.000
We just re-input it, double check their math, and, you know, and maybe ask a
couple extra questions.
00:18:35.000 –> 00:18:38.000
But all in all, they’ve done the returns because they’re so used to doing
it.
00:18:38.000 –> 00:18:41.000
They still print out the paper every time.
00:18:41.000 –> 00:18:44.000
So, you know, there’s nothing wrong.
00:18:44.000 –> 00:18:48.000
I’m sure your tax person wouldn’t have an issue with — or, you know, farm
bureaus are a great place.
00:18:48.000 –> 00:18:50.000
They help a lot of people do taxes.
00:18:50.000 –> 00:18:53.000
So it’s not a bad idea at all.
00:18:53.000 –> 00:18:56.000
And then that way you can get confirmation it’s been received.
00:18:56.000 –> 00:19:01.000
>> Even if you owe money, pay it electronically or you can still mail in
checks.
00:19:01.000 –> 00:19:06.000
Again, they’re pushing for everything to be done electronic in the next few
years.
00:19:06.000 –> 00:19:10.000
>> Well, how would you send your — I’ll be owing some money, I’m sure.
00:19:10.000 –> 00:19:15.000
How would you send in it electronically if you’re doing it that way?
00:19:15.000 –> 00:19:18.000
>> The way a lot of us do it, we just put in our routing number and account
number,
00:19:18.000 –> 00:19:23.000
kind of like the way you pay your mortgage or your — anything
electronically you may pay.
00:19:23.000 –> 00:19:25.000
You may not pay anything electronically.
00:19:25.000 –> 00:19:30.000
That’s — I mean, again, I do have clients that just will not let anything
like that happen.
00:19:30.000 –> 00:19:32.000
And then, you know, you can still mail it in.
00:19:32.000 –> 00:19:36.000
But otherwise you can use a credit card or your bank account.
00:19:36.000 –> 00:19:39.000
>> Okay. So you probably could use a debit card, couldn’t you?
00:19:39.000 –> 00:19:41.000
>> You could use a debit card, yes.
00:19:41.000 –> 00:19:42.000
>> Okay. Thank you.
00:19:42.000 –> 00:19:43.000
Thank you, Dr. Farhadi.
00:19:43.000 –> 00:19:44.000
I appreciate you.
00:19:44.000 –> 00:19:45.000
>> Thanks for listening, Charlie.
00:19:45.000 –> 00:19:46.000
I appreciate it.
00:19:46.000 –> 00:19:47.000
All right.
00:19:47.000 –> 00:19:49.000
Let’s hit George in Fayetteville.
00:19:49.000 –> 00:19:52.000
Hey, Georgie, what’s happening?
00:19:52.000 –> 00:19:55.000
>> Hello. Pretty good.
00:19:55.000 –> 00:20:02.000
I’m church — left the Methodist church.
00:20:02.000 –> 00:20:10.000
And I was wondering, should I do a W-2 for the preacher or a 1099?
00:20:10.000 –> 00:20:15.000
>> Well, you’re going to want to do — are you paying housing allowance as
well?
00:20:15.000 –> 00:20:16.000
>> No. No.
00:20:16.000 –> 00:20:18.000
>> Okay.
00:20:18.000 –> 00:20:23.000
>> I would just — I mean, I would say at this point I would probably just
do a 1099
00:20:23.000 –> 00:20:28.000
because you guys haven’t filed any of the other reports that would be
required with the W-2,
00:20:28.000 –> 00:20:31.000
be that 941s or 944s.
00:20:31.000 –> 00:20:36.000
You didn’t withhold anything from him as far as Social Security or Medicare.
00:20:36.000 –> 00:20:40.000
So I would just 1099 him.
00:20:40.000 –> 00:20:42.000
>> Should I use — okay.
00:20:42.000 –> 00:20:50.000
Should I use the old federal number or the new one?
00:20:50.000 –> 00:20:53.000
>> I would use whatever you have as the most current one.
00:20:53.000 –> 00:20:58.000
So if you have a new one versus an old one, I’m not too sure how long you’ve
been around.
00:20:58.000 –> 00:21:03.000
But if you have anything from the IRS currently, I would use that federal ID
number,
00:21:03.000 –> 00:21:07.000
the name of the church, as well as the church address.
00:21:07.000 –> 00:21:08.000
>> Okay.
00:21:08.000 –> 00:21:09.000
Okay.
00:21:09.000 –> 00:21:10.000
Thank you.
00:21:10.000 –> 00:21:12.000
Thanks, George.
00:21:12.000 –> 00:21:14.000
Appreciate it.
00:21:14.000 –> 00:21:21.000
So, again, if you have questions, you can certainly join the show,
615-737-9986.
00:21:21.000 –> 00:21:26.000
615-737-9986.
00:21:26.000 –> 00:21:30.000
You can also e-mail us, Friday@DRFriday.com if you’re a little shy,
00:21:30.000 –> 00:21:35.000
and that would be another way for you to get through the lines,
Friday@DRFriday.com.
00:21:35.000 –> 00:21:41.000
You can also go to our website, DRFriday.com and click in, send us a message
right through the website.
00:21:41.000 –> 00:21:46.000
I will tell you, if you are an existing client of mine, which many of you
guys that are listening,
00:21:46.000 –> 00:21:51.000
since we’ve been doing this for, what, 13, 14 years now, if you haven’t
already booked your appointment,
00:21:51.000 –> 00:21:56.000
please call our office on Monday or Tuesday and go ahead and get yourself on
the calendar.
00:21:56.000 –> 00:22:04.000
The calendar is full for any new clients, but we are still open always for
our existing clients.
00:22:04.000 –> 00:22:07.000
Always thankful for having you return every year.
00:22:07.000 –> 00:22:12.000
So if you don’t see anything on the calendar, just give our office a call
and we will get you booked in.
00:22:12.000 –> 00:22:17.000
So, again, you know what? It’s tax season, so don’t rush.
00:22:17.000 –> 00:22:21.000
If I can tell anyone anything, I know it is the 20th, and many of you are
sitting there going,
00:22:21.000 –> 00:22:28.000
“I need to get my taxes done,” but don’t rush because sometimes if you have
any kind of investment accounts,
00:22:28.000 –> 00:22:33.000
those aren’t going to be out. At least my company told me not until February
15th.
00:22:33.000 –> 00:22:39.000
W-2s may not all be out, and if you work more than one job, 1099s aren’t
going to be out.
00:22:39.000 –> 00:22:42.000
None of those until almost the first week of February.
00:22:42.000 –> 00:22:47.000
So don’t rush to get things filed. You’re not going to get your refund that
much faster,
00:22:47.000 –> 00:22:52.000
and if there’s a mistake, then they’re going to do a matching, and then
you’re going to find out that you have more issue
00:22:52.000 –> 00:22:56.000
than what you want because that’s going to hold it up even longer.
00:22:56.000 –> 00:23:00.000
So if you’re not sure, you know, you have everything, or maybe you did some
work and you’re like,
00:23:00.000 –> 00:23:06.000
“Well, I don’t know if anyone’s going to 1099.” Oh, and may I point out,
that is not the answer.
00:23:06.000 –> 00:23:12.000
If you’ve done something and you received money, tax law says you’re
supposed to report that as income.
00:23:12.000 –> 00:23:17.000
It doesn’t mean if someone doesn’t 1099 you don’t report it. That’s not the
way it works.
00:23:17.000 –> 00:23:25.000
You want to report it only if you’ve earned it. If it was deposited in your
bank, if you used it for your lifestyle,
00:23:25.000 –> 00:23:35.000
IRS is saying that is taxable income. That’s one of the reasons they’re
really pushing the 1099s onto the 1099ks
00:23:35.000 –> 00:23:41.000
from all the merchant places because the same thing. Many people are selling
things through Facebook and Marketplace
00:23:41.000 –> 00:23:46.000
and all that, and not just doing one or two, but they’re selling many, many
things.
00:23:46.000 –> 00:23:54.000
So they’re creating a lifestyle with it, and therefore the IRS is saying,
“Wait, people are underreporting their information.”
00:23:54.000 –> 00:24:02.000
So that way you have the situation. So if you want to join the show, you
can. 615-737-9986.
00:24:02.000 –> 00:24:10.000
615-737-9986. We’re going to take a quick break. When we get back, we’ll get
to more of your phone calls and emails.
00:24:10.000 –> 00:24:16.000
And again, if you’re not too sure who I am, just go to drfriday.com, and
we’ll tell you a lot more about who Dr. Friday is.
00:24:16.000 –> 00:24:19.000
We’ll be right back with The Dr. Friday Show.
00:24:19.000 –> 00:24:25.000
[Music]
00:24:25.000 –> 00:24:33.000
All righty, we are back here live in studio. And if you want to join us
here, you can always ask questions concerning taxes,
00:24:33.000 –> 00:24:38.000
or maybe you’re in the process of, maybe there’s an inheritance, or you’re
dealing with something along those lines.
00:24:38.000 –> 00:24:48.000
You can give us a call. 615-737-9986. 615-737-9986. Taking your calls.
00:24:48.000 –> 00:24:52.000
Talking about my favorite subject. First, we’re going to be getting ready
for taxes.
00:24:52.000 –> 00:24:57.000
So that also means all my entrepreneurs, or small business, or people that
have multiple rentals.
00:24:57.000 –> 00:24:59.000
I say multiple, you can have one rental.
00:24:59.000 –> 00:25:07.000
Keep in mind, 1099s do need to be issued to anyone that we have paid for
services over $600.
00:25:07.000 –> 00:25:16.000
So if you’ve got a lawn man, a handyman, a repair company that is not a
corporation, and most companies out here are actually LLCs.
00:25:16.000 –> 00:25:23.000
So if you’ve got a heating and air conditioning company that’s come out and
done some repairs, it’s over $600.
00:25:23.000 –> 00:25:30.000
You need to be 1099ing them for your rental properties. You need to be doing
that for, especially in businesses.
00:25:30.000 –> 00:25:37.000
So if you have a service, you run a business of any sort, and you have some
sort of outside service,
00:25:37.000 –> 00:25:44.000
maybe you pay professional fees, and they’re not a corporation, then you
need to be 1099ing them.
00:25:44.000 –> 00:25:48.000
And those 1099s need to be out by January 31st.
00:25:48.000 –> 00:25:54.000
There are fines that you will pay, or a possibility of paying, if you do not
do 1099s.
00:25:54.000 –> 00:26:02.000
And again, even if you do not receive a 1099, does not mean that you should
not be reporting it as income.
00:26:02.000 –> 00:26:07.000
I have some industries, some different places that they don’t get 1099s.
00:26:07.000 –> 00:26:13.000
It doesn’t mean that it wasn’t income and that you didn’t earn it just
because somebody else did not 1099 you.
00:26:13.000 –> 00:26:19.000
I had a situation not too long ago where we actually had somebody that was
being audited,
00:26:19.000 –> 00:26:26.000
and the IRS came back and they had a large number of subcontractors, this is
in the construction business,
00:26:26.000 –> 00:26:30.000
and they required us to actually issue 1099s.
00:26:30.000 –> 00:26:33.000
At that point, obviously, some people didn’t have any issue.
00:26:33.000 –> 00:26:37.000
They picked it up as income because they were running a business and it was
income.
00:26:37.000 –> 00:26:43.000
But then there was a large number of people, and kind of funnily, I think a
number of them ended up being audited
00:26:43.000 –> 00:26:46.000
because of the one person being audited.
00:26:46.000 –> 00:26:52.000
So very important that if you end up in a situation, make sure whatever is
running through your bank,
00:26:52.000 –> 00:26:58.000
whatever is creating your lifestyle, and I always say that because some
people are kind of anti-bank.
00:26:58.000 –> 00:27:04.000
So you could be living one, then you say, “Well, I’ve only put $20,000
through my bank.”
00:27:04.000 –> 00:27:06.000
But your rent is more than $20,000 a year.
00:27:06.000 –> 00:27:09.000
So obviously, you’re making more than that.
00:27:09.000 –> 00:27:15.000
So simple math, it doesn’t take a genius if they’re auditing you to figure
out how much money do you have to pay in rent.
00:27:15.000 –> 00:27:21.000
If you have auto notes, if you’re wearing clothes, anything, they can even
take–
00:27:21.000 –> 00:27:27.000
they can put together a pretty quick idea of what it takes as a minimum
income to take care of you.
00:27:27.000 –> 00:27:33.000
And if that is not showing up on your tax return or you’re not growing a
credit card every year by the difference,
00:27:33.000 –> 00:27:37.000
then you know what? Sooner or later, that could come and catch you.
00:27:37.000 –> 00:27:39.000
So just important to think about.
00:27:39.000 –> 00:27:43.000
I have people often come in and they say, “I didn’t make any money this
year.”
00:27:43.000 –> 00:27:47.000
Because entrepreneurs, let’s be honest, we hate tax time.
00:27:47.000 –> 00:27:52.000
Because even if you’ve made all your quarterly’s, it always feels like
they’re draining more and more money out.
00:27:52.000 –> 00:27:54.000
But we have a partner in business.
00:27:54.000 –> 00:27:58.000
And if you look at it that way, you may not like that partner.
00:27:58.000 –> 00:28:01.000
I mean, there’s a lot of people that have partners that they don’t like
anyways.
00:28:01.000 –> 00:28:05.000
But the IRS or the U.S. Treasury is a partner in our business.
00:28:05.000 –> 00:28:06.000
It’s that simple.
00:28:06.000 –> 00:28:11.000
Every dollar I make, every dollar I profit, they have a percentage of.
00:28:11.000 –> 00:28:16.000
25, 30 percent, depending on your situation and how much profit you’re
making.
00:28:16.000 –> 00:28:18.000
So you have choices.
00:28:18.000 –> 00:28:23.000
There are some ways you can kind of reduce their percentage by putting money
into retirement accounts,
00:28:23.000 –> 00:28:28.000
maybe issuing W-2s to yourself, different things that may control some of
that.
00:28:28.000 –> 00:28:33.000
But all in all, if you look at it that you’re not a 100 percent owner of
this business,
00:28:33.000 –> 00:28:40.000
you’re going to find out you’re going to be in a better situation because
you have set aside that share to your partner.
00:28:40.000 –> 00:28:45.000
And a bank or you’ve paid it out quarterly or even monthly to them.
00:28:45.000 –> 00:28:49.000
So that way, at the end of the year, you don’t dread tax season.
00:28:49.000 –> 00:28:53.000
And I know some people say, I need every dollar I make to just survive.
00:28:53.000 –> 00:28:55.000
I am barely making it right now.
00:28:55.000 –> 00:28:59.000
I can’t possibly pay 25 percent.
00:28:59.000 –> 00:29:04.000
Well, then in the big picture, guys, that you’re not going to make it.
00:29:04.000 –> 00:29:05.000
I mean, you may have a bad year.
00:29:05.000 –> 00:29:13.000
We’ve all had bad years and we’ve had to borrow or we’ve had to get family
to loan us money or whatever it might have taken to make it through that
year.
00:29:13.000 –> 00:29:20.000
But in the big picture, you can’t do that very long because sooner or later
you’re going to end up upside down.
00:29:20.000 –> 00:29:28.000
And so you have to be critical with your business, especially entrepreneurs,
because we have to eventually say, here’s the line in the sand.
00:29:28.000 –> 00:29:39.000
If I keep it going and I can’t make this much money at this point and I’m
still going, are you just trying to keep something alive that really isn’t
funding itself?
00:29:39.000 –> 00:29:43.000
It’s a very hard and sometimes it’s management. Sometimes it’s lifestyle.
00:29:43.000 –> 00:29:46.000
Sometimes people are living way above what they’re actually earning.
00:29:46.000 –> 00:29:50.000
I mean, come on, that doesn’t have to be an entrepreneur. That’s an everyday
life story.
00:29:50.000 –> 00:29:54.000
And those are the kinds of things you have to have a hard look at.
00:29:54.000 –> 00:30:00.000
But if you actually do and you can succeed and you can actually have your
own style of life.
00:30:00.000 –> 00:30:05.000
I mean, being an entrepreneur is one of the best things in the world because
you can do certain things.
00:30:05.000 –> 00:30:09.000
You can control certain aspects that maybe you can’t if you were employed
with somebody else.
00:30:09.000 –> 00:30:12.000
But it doesn’t mean you’re going to avoid taxation.
00:30:12.000 –> 00:30:16.000
I’m just saying. And a lot of times people think, oh, I can write off.
00:30:16.000 –> 00:30:23.000
And yes, if you’re a sole proprietorship or a small business, you can
probably write off a portion of your house that you’re actually working in.
00:30:23.000 –> 00:30:28.000
It’s an office. I mean, my my home office is an extension of our own home.
00:30:28.000 –> 00:30:33.000
And therefore it is a big chunk of space that is being used for the
business.
00:30:33.000 –> 00:30:39.000
And there’s no question you walk in. You can’t question that it is a
business and that there is an office.
00:30:39.000 –> 00:30:49.000
But if it’s a guest bedroom and you’ve got a laptop sitting on a bed because
there’s no desk in there, even that is not an office space.
00:30:49.000 –> 00:30:54.000
And I have many people that run businesses off of laptops. They don’t have
to have an office space.
00:30:54.000 –> 00:31:00.000
They don’t even set up an office space. They like to set up in the front
room and their sofa and they do their work.
00:31:00.000 –> 00:31:04.000
They’re very good at it. And that’s all they need to do. That’s great.
00:31:04.000 –> 00:31:08.000
And that works perfectly. But don’t think you’re going to qualify for a home
office.
00:31:08.000 –> 00:31:11.000
That’s the kind of things you need to understand.
00:31:11.000 –> 00:31:20.000
Would it be beneficial for you to set up a home office space that allows you
to have the square footage to take off a part of your home expense?
00:31:20.000 –> 00:31:28.000
Because you’re working in that home and a part of the utilities and all that
is legitimate if you have true office space.
00:31:28.000 –> 00:31:36.000
Understanding tax law puts more money in your pocket. Also makes you
understand why or where the money is going.
00:31:36.000 –> 00:31:42.000
Now, as far as the IRS and their spending, well, let’s be honest, the IRS
doesn’t spend the money. It’s Congress and the Senate.
00:31:42.000 –> 00:31:49.000
So all they are is really the collection agency. If you look at them as what
they are, they collect the money and they put it into the treasury.
00:31:49.000 –> 00:31:56.000
And that’s about the extent of their power. But that being said, it is going
to get more interesting in the next couple of years.
00:31:56.000 –> 00:32:01.000
We already have the beneficial ownership information. I talked about that
during the first part of the show.
00:32:01.000 –> 00:32:07.000
I want to keep saying that I’m going to keep saying that for the next part
of the year because it’s a huge change.
00:32:07.000 –> 00:32:16.000
If you’ve got a brand new business that you’ve just opened up, you better be
Googling beneficial ownership information, BOI, because you have about 30
days.
00:32:16.000 –> 00:32:22.000
And the fines are ridiculous. I’m not sure why they want this information. I
have an idea.
00:32:22.000 –> 00:32:34.000
Again, what you need to fill out for anybody that has 25 percent or more
legal name, address, Social Security number, date of birth and a picture,
license or passport.
00:32:34.000 –> 00:32:41.000
They are trying to find something just either clarifying that the partners
in these businesses truly are the partners in these businesses.
00:32:41.000 –> 00:32:47.000
It does have to do with the money laundering. Most of us, you know, we’re
not worried about it. It’s not a big deal.
00:32:47.000 –> 00:32:52.000
It’s just another thing. But it’s the fine that I worry about because that
is a huge fine.
00:32:52.000 –> 00:32:57.000
And many people are sitting back going, I don’t really want to fill out
this. I don’t really want to do that.
00:32:57.000 –> 00:33:00.000
It’s not really an option. There’s surveys out there that they can find you.
00:33:00.000 –> 00:33:04.000
But normally the fine is five or six hundred dollars if you choose not to
complete it.
00:33:04.000 –> 00:33:08.000
This is per a day. Five hundred dollars a day.
00:33:08.000 –> 00:33:14.000
If you don’t do this right, unless that gets overrode or considered highway
robbery.
00:33:14.000 –> 00:33:23.000
That’s what says in the pamphlet that we have in our office that was done
version one point one December of twenty twenty three.
00:33:23.000 –> 00:33:26.000
They may be updating that and that may be some more clarification as we go.
00:33:26.000 –> 00:33:31.000
I also want to clarify. Someone asked me about the business license. We have
been filing them now.
00:33:31.000 –> 00:33:36.000
So just so you know, if you have less than three thousand or less than one
hundred thousand,
00:33:36.000 –> 00:33:42.000
the only fine you are only fee you’re going to pay is the twenty two dollars
city and then twenty two dollars county.
00:33:42.000 –> 00:33:47.000
If you’re in the county in the city, if you have less than one hundred
thousand in sales, you will only be paying those fees,
00:33:47.000 –> 00:33:52.000
which is the annual renewal fee. Just as a point, I wasn’t sure how that was
going to work.
00:33:52.000 –> 00:33:58.000
Hadn’t done it before. Now we filed several of them. So, again, all you have
to go on to your Tintin file it.
00:33:58.000 –> 00:34:02.000
If you make less than one hundred thousand dollars, you’re going to pay
twenty two to the city.
00:34:02.000 –> 00:34:08.000
And if you’re city and county, then twenty two county or if you’re county
and city, whichever way.
00:34:08.000 –> 00:34:13.000
So that will be all you’ll have to pay. And it walks through. There’s no
other questions that are being asked or anything else.
00:34:13.000 –> 00:34:18.000
You just click in a box saying you made less or more than one hundred
thousand dollars.
00:34:18.000 –> 00:34:26.000
So keep that in mind. And there’s no reason not to go online as soon as you
know what your gross sales, gross business receipts,
00:34:26.000 –> 00:34:32.000
business tax returns. Those are due by April. First, go on the Tintin app.
00:34:32.000 –> 00:34:36.000
You probably have a couple of different things. You may have sales tax,
which is due by Monday.
00:34:36.000 –> 00:34:41.000
You may have your business tax and you have your franchise excise. That’s at
least the three that could be in there.
00:34:41.000 –> 00:34:46.000
Some of you may not have franchise excise if you’re not an entity, but all
of them are due.
00:34:46.000 –> 00:34:53.000
So go ahead and start filing these sales tax. Obviously, you can file the
business gross receipts once you have the year in sales.
00:34:53.000 –> 00:34:59.000
You know what you’re putting in there. And if it’s already if you already
know, I didn’t have nearly one hundred thousand dollars,
00:34:59.000 –> 00:35:03.000
then you can go ahead and file that, pay the money. And that way you’re in
good standing.
00:35:03.000 –> 00:35:09.000
You want to stay in good standing. It’s always a pain because if you do your
annual report, they can request that.
00:35:09.000 –> 00:35:14.000
And if you don’t get it, they can freeze or make inactive your your name.
00:35:14.000 –> 00:35:18.000
And that could be a problem for insurance or loans or anything else that
you’re doing.
00:35:18.000 –> 00:35:22.000
So you want to keep that active. All right. So we’re going to take one more
break.
00:35:22.000 –> 00:35:26.000
And if you want, I know it’s cold out there and it’s probably just sitting
around thinking,
00:35:26.000 –> 00:35:31.000
I don’t really have a whole bunch to think about today on taxes. It’s a
little early for some of us.
00:35:31.000 –> 00:35:34.000
But if you have a tax question, maybe who you should be 1099.
00:35:34.000 –> 00:35:41.000
What the due dates or something is, you can call the show 615-737-9986.
00:35:41.000 –> 00:35:51.000
615-737-9986 is the number here in the studio. When we get back, we’re going
to talk more about what we can expect for this tax season.
00:35:51.000 –> 00:35:57.000
Also take more of your calls and check out the email bag just to see, you
know, if anyone sent over anything new.
00:35:57.000 –> 00:36:00.000
Always some fun and interesting questions that come out.
00:36:00.000 –> 00:36:04.000
But again, you’re listening to The Dr. Friday Show and we’re going to be
right back.
00:36:04.000 –> 00:36:13.000
[Music]
00:36:13.000 –> 00:36:20.000
All right, we are back. Back here in studio in this nice little warm, cozy
little studio.
00:36:20.000 –> 00:36:25.000
It is so nice not to have to be out in that snow. Had to go out earlier.
00:36:25.000 –> 00:36:29.000
As you guys all know, I have some beautiful dogs and you know what?
00:36:29.000 –> 00:36:31.000
They love the snow. Crazy, but they do.
00:36:31.000 –> 00:36:34.000
So we’re out playing with them and enjoying it.
00:36:34.000 –> 00:36:41.000
So anyways, which we’ll probably do a little bit more of this afternoon, but
until then we have about 10 minutes left of this show.
00:36:41.000 –> 00:36:48.000
So if you want to join the show, you can at 615-737-9986.
00:36:48.000 –> 00:36:59.000
615-737-9986 is the number you want to call here in studio, which will be
for, like I said, the next eight, nine minutes.
00:36:59.000 –> 00:37:04.000
And then we have it from there. If you want to go ask some questions, you
can always go to email.
00:37:04.000 –> 00:37:08.000
But let’s hit Bob in Franklin really quick and then we’ll let you go from
there.
00:37:08.000 –> 00:37:10.000
Hey, Bob, what’s happening?
00:37:10.000 –> 00:37:12.000
I’m doing great. How are you doing, Doc?
00:37:12.000 –> 00:37:15.000
I am doing awesome, my love.
00:37:15.000 –> 00:37:19.000
Good. So look, I’m a small business owner. We have a restaurant here in
Franklin.
00:37:19.000 –> 00:37:22.000
And the question I have is I’m new to Tennessee.
00:37:22.000 –> 00:37:28.000
And the question I have is regarding my children, my dependents who are also
employees of mine.
00:37:28.000 –> 00:37:38.000
Is there, I heard somewhere there’s like, is it 14 grand or something that I
can, I can give to my children or something along those lines without having
them having to pay taxes?
00:37:38.000 –> 00:37:48.000
So it’s statutory employees. If they’re under the age of 17 and they’re
working for a family held sole proprietorship or partnership.
00:37:48.000 –> 00:37:53.000
So, or LLC in essence, they cannot be a corporation.
00:37:53.000 –> 00:37:58.000
Then you can actually making sure that they actually are working.
00:37:58.000 –> 00:38:04.000
I believe tax law basically says 6,500, but theoretically another 6,000
could be if they’ve earned the hours.
00:38:04.000 –> 00:38:06.000
This has to be a legitimate job, right?
00:38:06.000 –> 00:38:13.000
If they’ve earned it, you could put another 6,000 into, I would suggest a
Roth IRA, but I’m not a financial planner.
00:38:13.000 –> 00:38:21.000
So theoretically, $12,500 could be paid to them without them paying any tax
as a statutory employee.
00:38:21.000 –> 00:38:24.000
Okay. That’s great. And then if you have time, one more quick question.
00:38:24.000 –> 00:38:25.000
Sure.
00:38:25.000 –> 00:38:40.000
It’s regarding our vehicles, our, our, our, now we’re, we’re a restaurant,
like I said, so, and we do not use our vehicles for delivery or restaurant
services, but are we able to deduct, let’s say fuel or mileage for our
commute?
00:38:40.000 –> 00:38:46.000
No, because just like you said, it’d be no different than if you were going
to work at somebody else’s restaurant, right? As an employee.
00:38:46.000 –> 00:39:01.000
So your commuting, no, but if you had to run out to the grocery store
because you ran out of, I don’t know, tomatoes or something, and you had to
run and buy some, the fuel back and forth to do that would be required,
would be allowed, or coming to see your tax person or any going to the bank.
00:39:01.000 –> 00:39:11.000
Any of those miles would be actual business miles, but going from home to
work and work to home for all of us is still commuting and therefore not a
tax deduction.
00:39:11.000 –> 00:39:15.000
Okay, great. Well, listen, I appreciate your advice and your input. Thank
you.
00:39:15.000 –> 00:39:21.000
Thanks. Appreciate you listening. All right, let’s hit Matt in Nashville.
Hey, Matt, what’s happening, my friend?
00:39:21.000 –> 00:39:43.000
Yeah, I just started my own LLC and I’m contracting with a company
currently, and I’m under 1099, but I also do side work with a few different
apps. So would I have to open a 1099 on each of those apps and the company
I’m working for, or can I just combine it?
00:39:43.000 –> 00:40:02.000
No, it’s the opposite. They’re paying you, Matt, so they’re going to 1099
your LLC, theoretically you, but through the name of the LLC. If, let’s say
I worked for you, Matt, as a subcontractor to do something, then you would
1099 me for those services I did for you.
00:40:02.000 –> 00:40:03.000
Does that make sense?
00:40:03.000 –> 00:40:07.000
So for me to file my taxes, what would I need to open?
00:40:07.000 –> 00:40:31.000
You need to, well, you need to just track all the money everyone’s paid you.
Theoretically, they should all 1099 you, but if they don’t, whatever was
paid to you, that would be what you need as far as gross. And then you’ll
write off all of your expenses, be that miles, I don’t know, whatever it
takes to do the job you’re doing. And then you’ll get to your net, which is
the taxable amount.
00:40:31.000 –> 00:40:37.000
Okay. And I would open up a 1099 on myself. Is that what you’re saying?
00:40:37.000 –> 00:40:58.000
Nope. You don’t need to worry about the 1099s. You’re going to do a Schedule
C since you’re a single member LLC on your 1040. So you’re going to file a
regular tax return like you normally would. And then under that, you’re
going to do a Schedule C, which is for the self-employed, which single
member LLCs fall under. So that’s where you’ll report all of the income and
expenses on that form.
00:40:58.000 –> 00:41:01.000
And that’s due at January 31st?
00:41:01.000 –> 00:41:24.000
No, that you don’t, again, that’s 1099. That’s due April 15th. So don’t want
to confuse you. You’re 1040 and all that. You’re, you’re cool. You don’t
have to worry about anything. Only if you paid anyone to do services for
you. That’s the only person we’re trying to track down right now, Matt,
would be as if you had someone that did work, then, then you would 1099
them. Otherwise you’re good for a while.
00:41:24.000 –> 00:41:26.000
Okay.
00:41:26.000 –> 00:41:28.000
All right. Thank you.
00:41:28.000 –> 00:41:34.000
No worries. That was a great question. Thanks. All right. Let’s hit Steve
real quick. Steven. Hey, he’s in Tennessee.
00:41:34.000 –> 00:41:46.000
Yeah. Thank you. Just a quick question. Since Trump took all deductions away
from the company truck driver, I’m an employee. Are we getting any
deductions back this year?
00:41:46.000 –> 00:42:07.000
Nope. None of that is going to happen until January of 2026 where that will
potentially, right. We don’t know if it will, but it potentially expires at
that point. So at that point, the 2106 or the employee deduction, I doubt
it’s going to come back, Steve, based on all the audits they did. Most
people were misusing that form.
00:42:07.000 –> 00:42:34.000
So I’m pretty sure that that’s probably never going to come back under the
same pretense it was. And I did a number of legitimate truck drivers that
did overnight long hauls and they were, you know, they were able to take per
diems. And we lost that under the, under the Trump administration. So that I
don’t see that coming back no matter what, but no, you did not get any of it
back. Good question though.
00:42:34.000 –> 00:42:36.000
Okay. Thank you.
00:42:36.000 –> 00:42:54.000
Sorry, bud. Yep. All right. So again, you are listening to Dr. Friday and
those were great questions and I do appreciate the phone calls. It makes
this show so much more exciting than me just sitting here talking about
taxes, which for me is very exciting. But for most of you that’s sitting at
home, probably not quite so exciting.
00:42:54.000 –> 00:43:13.000
So if you have questions again, the we’re pretty much at the end here, but
you can always join us every Saturday from two to three. If you have tax
questions outside of that time period, you can usually set up an appointment
or you can try emailing. I will be honest, it’s going to get very crazy in
our office for the next few months.
00:43:13.000 –> 00:43:32.000
But if you can email, I will do my best to get back with you on any
questions that you might have, or at least be able to send you hopefully in
the right direction as far as making sure that you file everything on time.
We’re going to make sure that we’re still concentrating on all the tax laws
and things that are going to apply to most of us.
00:43:32.000 –> 00:43:52.000
Hopefully I don’t confuse any of you out there of when things are done or
what they’re doing, but I’d much rather you ask than think that you
understand me and I’ve completely misled you. So, you know, again, for any
of you that have people that work for you and you’ve wrote checks to them,
just reiterating those are who we’re going to 1099.
00:43:52.000 –> 00:44:12.000
So, and if you have rental property, our lawn people, our handyman, if you
had someone repair a roof, any of those services that went to a company that
is not a corporation is required to have a 1099.
00:44:12.000 –> 00:44:34.000
So, not only a lot of people just think of 1099s as business to business,
but it is because a rental property is considered a business based on the
IRS. So again, just keeping that out there, making sure that we aren’t going
to get hit later with a penalty or fine, because we didn’t really know that
we were required to do that kind of situation.
00:44:34.000 –> 00:44:54.000
So again, so if you have anyone that has worked for you that made more than
$600, that person should be 1099 and or W-2, but W-2s are pretty much set
up, right? We know we’re taking money out every week, bi-weekly, once a
month, whatever you’re paying. And that money goes then on a W-2 and it
automatically kind of goes to the system.
00:44:54.000 –> 00:45:15.000
The 1099 side, not so much. And I will suggest also, it’s a fresh brand new
year. And sometimes people are like, I don’t have their address. I don’t
have the social security or EIN number for this vendor because I can’t find
them now. They’re not answering my phone calls. Get that up front before you
write the very first check to anyone, make sure you have that information.
00:45:15.000 –> 00:45:38.000
So that way, if you do keep using them and they exceed past $600, you have
it. If you don’t, then you don’t need it, but you still had it just in case.
All right. So if you need to reach my office on Monday morning, you can at
615-367-0819, 615-367-0819.
00:45:38.000 –> 00:45:57.000
You can also email Friday@drfriday.com. Again, Friday, F-R-I-D-A-Y
@drfriday, like the day of the week. Or you can check me out on the web,
which is drfriday.com. Again, D-R-F-R-I-D-A-Y. It’s pretty easy.
00:45:57.000 –> 00:46:18.000
So if you have questions or you need help in doing anything that deals with
taxes, maybe you haven’t filed taxes in a number of years, or you need help
because you know what, you relocated five times. You haven’t, can’t find all
your paperwork. There are ways that we can help you get that information so
that you can file your taxes on time. That’s the important part of all of
this is staying in compliance.
00:46:18.000 –> 00:46:39.000
Again, you can reach me at 615-367-0819. I hope you guys are going to stay
nice and warm. Don’t do anything crazy. I mean, some people that drive on
these roads, I’ll tell you, I drive a big truck and it can be crazy out
there, but I want you guys to enjoy this Saturday. Hope you enjoy it. Talk
to you later.