Another episode of the Dr. Friday Radio Show is here! Dr. Friday talks about all things taxes, deadlines, and the following topics:
- Make Sure to Have The Right Documentation For Filing Your Taxes
- The third Stimulus Coming March 15- April 15
- When Will I Get My Tax Refund?
- Need Help Preparing Your 2021 Taxes?
- Is My Social Security Taxed?
- Corporations Taxes Due March 15th
- Charitable Contributions Deductibles
- Do You Need Help With Tax Representation?
- Unemployment and 1099 G’s Payment Is Taxable Income
- Do I Claim My College Child As A Dependant of Mine?
and answers other caller’s questions!
No, no, no, she’s not a medical doctor, but she can sure cure your tax 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 morning, I’m Dr. Friday, and I’m living here in the studio. It is all-season taxes that are going everyone is needing to get those taxes filed on time. Remember, if you haven’t filed taxes for 2018 or 2019, you probably haven’t seen the stimulus. You will be able to get that stimulus money if you file your 2020s. So you can go ahead and file 2020, even if you haven’t filed 18/19. So just keep that in mind that you can go in different orders, I’ve done it more than once. Just do what you need to do, make sure you’re filing your taxes get back on track because it’s never easy. Once you get off track to be able to do things you want. If you’ve got questions, and you want to join the show, you can we’re live today at 615-737-9986. The number here in the studio. We’ll take your calls. I’m an enrolled agent licensed with the Internal Revenue Service to do taxes and representation, which basically means that what I do all the time are taxes and representation. And I know that many of you guys have been if you haven’t used our services in the past, you will find right now that we’re kind of full. As far as getting clients in unless you’re willing to file an extension, then we’ll do our best to try and do something for all my returning clients. Of course, we still have more than enough time on the calendar to get you squared away, and taking care of we’ll be working our ways through these weekends as we go.
Dr. Friday 1:58
If you do want to join the show, and you can at 615-737-9986. Time to ask your questions. It looks like the phone lines are lighting up really well. So my big guy over there in the studios is having fun. You want to go hit line one, and I’ll take that while you work. Hey, Lynn, this is Dr. Friday.
Hi, Dr. Friday. We have a rental that we’ve had losses on for a couple or three years due to the fact that we make too much money to claim it. I was wondering if we sell that rental and make a profit, can we offset those losses that we weren’t able to claim?
Dr. Friday 2:42
100%. Yes. So sometimes it’s nice when we’re unable to claim all of our losses, because then when we actually do do the sales, we can offset those losses directly you get 100% of whatever you haven’t been able will automatically come in because obviously that rental is no longer in existence. So they will be able to wash all of that against that at that time.
Okay, and then one other quick question. Is the profit that you gain on that is that taxed the same as capital gains tax or is that taxed as regular income?
Dr. Friday 3:14
So there are two sides to anytime we have rental property, you’re going to have the capital gains, assuming that you owned it over one year, you’ll have long-term capital gains on the difference between your purchase price and the sale price. But then the recapture of depreciation that we’ve been taking all those years will actually come back as ordinary income. And that’s where your losses will offset that particular situation because you didn’t get the advantage of taking those losses during the time when you had it. So recaptured depreciation is ordinary income tax and then the sale price is actually capital gains, assuming it’s over one year.
Okay, so more than likely, all the stuff that the depreciation we get back because we never got to claim that for several years?
Dr. Friday 4:02
Correct. That’s going to be a wash, assuming if it has never been claimed, then it’ll be a complete wash. But maybe there’s a year or two you were able to claim some of it those years, then you’ll have to recapture. But yes.
Is capital gains is that still 15%?
Dr. Friday 4:17
Assuming that you are joint income is less than 250,000. With the gains? Yes. If it isn’t, then there’s an additional 3.8. And then if it’s over like 465, you can be at 20 points eight.
Okay, perfect. Thank you so much.
Dr. Friday 4:32
Thanks, Lynn. Appreciate it. All right. Yeah. Let’s just go to line two. Hey, Matt, what’s happening?
I have two concerns about my tax refund. I filed my 2020 tax return electronically on February 15. And is this coming Monday, that will be four weeks ago. That very day on February 15, I got an email from both the IRS and from Tax Act, we use it to file my return and been accepted by the IRS on February 15. Yet when I go to the IRS website and check my refunds, the IRS says it cannot find the refund.
Dr. Friday 5:23
Well, I mean, normally when you e-file, it will show up within a couple of weeks, I will say that that’s the case that there is. I have had a couple of people that, you know, they looked one time and then like the next day, they found it, but they do tell you 21 days, and those are working days. Normally, you’ve had a couple of weekends in there. So it hasn’t been quite 21 days, I don’t believe. I don’t have my calendar in front of me, Matt. So I don’t know for sure. But it’s getting very, very close. Because like you say the 15th is not this Monday, but next Monday, and that would be a 30 day period. So you’ve got to be getting close. I mean, you can’t even contact them until after the 21st day, because they basically say there’s nothing they can do. But I would just keep looking and seeing if you keep watching that thing. As long as you’ve got confirmation from the company that you use to E-file, I would say that maybe it was just the timing, I do know that the IRS had some problems with some of the E files because there were so many on to 12. Sounds like you did on the few days after that. But if you’ve got confirmation, it should actually be in there. You can try calling but I’ve never found that there’s a lot of accessing and phone calls, because most of the time, they’ll just tell you that, at this time we’re processing. You might want at least to give it another week or two before you start figuring out what the next step is. And then you’ll probably have to call your software company and see if they can track it through their e file services.
Yeah, it concerned me that they couldn’t even find it. If it’s still processing, that’s not the problem. I was concerned that they couldn’t even they could easily find my return.
Dr. Friday 7:01
I mean, they usually either say they don’t have it, or they have it, I’ve never seen anything between. So they either have it sitting in there, or they don’t have it sitting in there. But again, I don’t know for sure in our system, it that’s it’s either an all or nothing in a sense. So when you go on to irs.gov and put in your information to see where your refund is, it’s either gonna say we don’t have your return, or we’ve received it and we’re processing or they’ve already sent out the refund thing. I would say give it a little bit more time because it has been really busy. And then you might want to call your software company, whoever you use to do it, and see if they can track it through E-services. There is a phone number that all of us have E file numbers that we can call and track an E file account.
Okay, one other thing is I may have received a couple of text messages on my cell phone, giving me a TurboTax xx code. And I use Tax Act, but they’ve given me twice now. Supposedly TurboTax access code, which I’m not using.
Dr. Friday 8:10
Yeah, I would say one of two things, either the phone number you have had somebody that actually at one point use TurboTax. And they’re trying to get access to their account. And that number is not obviously theirs any longer or it’s a scam and you should do nothing with it. Either way, it does nothing to do with you. So I would just delete those text messages because you never know what people are going to do with them.
Okay, thanks very much for helping.
Dr. Friday 8:34
Thank you. No problem. I appreciate you listening. All right, let’s go down to Gary. Hey, Gary.
Yeah, I’ve got a defined pension plan. And I’m going to be cashing out of it here soon. And apparently what they do is they return your contributions. Then there’s another portion that’s part of the defined pension plan annuity that they pay you and after-tax money to settle with you. But by contributions, they return those to me which are before tax money. Wait, those were after-tax money.
Dr. Friday 9:11
Yeah, I’d say the contribution would be the after-tax and the settlement would be the growth, therefore, that would be the pre-tax or yet the ones you’d have to pay tax on it because you contributed I’m assuming after-tax dollars for this are pre-tax dollars.
Correct. After-tax dollars and when they return those. My question is, can I put that in a Roth?
Dr. Friday 9:36
No. I mean, well, you can’t roll it over. I mean, a define, and I’m not let me put this little caveat there. I’m not a financial planner. So this is something Hank pear my financial guys should probably answer. You can possibly roll the entire thing over into an IRA. But any, I would say that most of that is not able to be rolled over into a Roth Just the fact that the Roth, there’s only so much per year that you can put in. There are limitations, and you can do conversions. But you’ve already paid tax on this money. So I don’t believe you can move it in there because it’s not a conversion.
Okay. Yeah. Trying to find out figure what to do with it all.
Dr. Friday 10:24
Yeah, hey, do you have a financial guy that you deal with? If not, I can give you the phone number of my guy. He’s been great you might have heard him before on the radio as well. His name’s Hank Parrot. Grab a pen real quick, and I will give you his direct cell phone number because if I’m working on a Saturday, I think he should have to work too.
Alright, I got a pen.
Dr. Friday 10:44
Okay. 615-202-9009. Just tell him Dr. Friday referred and he can answer that question much better than I can.
Very good. Thank you.
Dr. Friday 10:56
Thank you, sir. Bye. Bye. All right, moving right along. Let’s good. Number four, Liz.
Dr. Friday, how are you?
Dr. Friday 11:06
I am good.
I have to give you a quick little shout-out because I’m a CPA. I’m a controller by day, but I do a little bit of tax prep from years and years on the side. And it’s very fun listening to you because you’re very helpful to me when some of the tax law changes I listen in and it really helps me to learn about some of the changes. So I have two questions. I heard that the AI CPA is asking the IRS to write the deadline for June 15th.
Dr. Friday 11:48
I’ve heard the same information. But the IRS has come down and said they have no plans to move the deadline.
Okay, good to know. Thank you. When I’m preparing the 2020 returns, there’s a portion of my software that has both of them, and I keep getting questions from my clients. I don’t know how to answer this. If they did not get their second rebate till 2021, are we listing that, or are not putting it on the 2020 return? Does that make sense?
Dr. Friday 12:22
We are listing them, so even though they’re reconciling it. So yes, we’re listing that it was received, even though that’s very confusing, Liz. And I’ve had the same questions every time because they’re like, “Well I didn’t get until 2021.” But you and I are just reconciling? Did they or did they not get it so that they can get it on the return if they did not receive the money? So yes, we’re reporting is not taxable, but we’re reporting it to make sure people can still get all the funds that they’re entitled to.
Okay. When you’re asking a CPA about a return or enrolled agent, it’s more complicated, usually. So a lot of these people did not get their rebates. So I’m putting, a minus one in my software, which tells us it’s not received, so they’re getting a big chunk. They’re getting a refund from that.
Dr. Friday 13:10
Right, because if their 2020, income was low enough, you know, for them to actually qualify because what’s happening with some of my people is that their 2019 income was higher than their 2020. Therefore, they are getting it on the tax return, but they weren’t getting it from the original mailouts. Right? So I’m with you on that sec, same thing. I hear that the bill just passed the Senate. So we’ll find out what they reconcile for the next one to make our life exciting.
Yes, yes. Yeah. It’s a lot of fun listening to you. I appreciate that you’re doing the show.
Dr. Friday 13:45
Thanks. There you go. Well, I appreciate you listening. Thanks so much, Liz. Thank you.
I take care. Thank you. Bye.
Dr. Friday 13:52
Okay, let’s take a quick break. And then we’ll get back to Michael, Judy, and Gary. As soon as we come back. This is the Dr. Friday show. We’ll be right back.
Dr. Friday 14:09
All righty. We’re back here live in the studio. And thank you, Gary and Judy, for holding to the break while we go ahead and hit Judy real quick. Judy, what’s going on?
I want to talk about Alaska State. My mother passed away on 19-6-2015, and we’re just now settling it. We got from the escrow company 1099. Do I have to pay taxes on that?
Dr. Friday 14:37
Is it a 1099 R?
Dr. Friday 14:43
Oh, okay. Tonight there was an asset sold so this would have been a home or a piece of property was sold? So whoever’s doing the taxes or if you normally don’t, you’re gonna need someone to take a look because there could have been capital gains, depending on when mom passed away and when they sold it, it may have been worth more when they sold them when the day she passed away because real estate here has been increasing quite a bit. So you would need to talk to someone. I think you’re a Manchester someone in that area probably could answer your question. But you definitely need to get a tax professional there if you don’t have one to look at that paperwork can help you work through that capital gains. You may be in a low enough income bracket don’t know you so, but if you don’t normally have to file it may be that there’s not enough profit, but you do need someone to double-check that for you, Judy because a 1099 S just says exactly how much money they sold it for. It doesn’t report basis. So the government’s gonna think that’s all your money.
Okay, so I needed an appraisal?
Dr. Friday 15:43
Were you the only person inheriting was there more than one of you?
There were four.
Dr. Friday 15:48
I would actually yet try to talk to the other ones and see if one of them has already had someone maybe give a basis for it.
Okay. What schedule does it goon?
Dr. Friday 16:00
D as in dog.
Okay. Thank you very much.
Dr. Friday 16:04
No problem. Thanks, Judy. Let’s see Gary, who’s waited a very long time. Gary, thanks for holding.
You bet. Thanks for taking my call. Hey, with all the folks working from home during this covid 19. Does that affect your taxes any? Are there any credits or extra money, you have to pay for that or whatever?
Dr. Friday 16:27
There is no tax advantage. The one thing I heard in one of the meetings from a representative from the IRS I thought was funny because they’re saying you don’t get to take off your house, but you didn’t have the wear and tear on your car. So they felt that was a good wash? I don’t know if I totally agree. But I thought it was kind of a humorous approach to it. But no, there is no 2106. So there’s no place to put a home office for anyone that is working with a W 2.
Okay, thank you.
Dr. Friday 16:53
No problem. Thank you. All right, those were great questions, guys. And if you want to join the show, you certainly can at 615-737-9986. I will tell you, Gary, I probably get that question almost every single time I do taxes nowadays. Anyone that’s been reverted to home, a lot of them are thinking that there should have been something out there for them to be able to use their home office because they’re using their own utilities, their own situations. And like I said, one of the IRS people that I was talking to, basically felt that there was a fair trade because you weren’t having to use your car and put as many gas miles or wear and tear on your vehicle. So maybe that’ll make you feel a little better. I don’t really know. It just depends on how much time and how little you had to use your car normally. So if you have questions again, you can join us at 615-737-9986.
Dr. Friday 17:47
We did just hear that the Senate passed the bill. So now we have to merge the Senate and the House bills together, but it does sound like they may have on the Senate Bill, it sounds like they reduced a married couple to 100,000 or less. If you remember on the last stimulus It was 150,000 or less. Or basically it was a phase-out but thereabouts. So it’s going to be interesting to see what we end up with for if you’re married or single what the limitations on income to get the third stimulus. Alright, let’s hit Randy, Randy’s on the line.
Hey Dr. Friday, I really enjoy your show. Got a quick question. When it comes to capital gains and how the capital gain tax and also your income tax, how they relate when it comes to paying in on one versus the other? I guess what I’m saying is, as I’ve heard people say, your capital gains go on your income and your income is taxed on the right of that total. You don’t pay income tax on capital gains. But does that increase your income in a way that it causes you to pay actually a higher percentage on your income tax?
Dr. Friday 18:58
No, it really doesn’t. What it does make is a higher percentage of your capital gains. So basically, they do look at your overall total income, including your capital gains to figure out what your capital gains rate is. Because if you’re single, the first step to first 200,000, thereabouts is roughly or staying in it’s about the 15%. Then when you hit about 200, you have another 3.8 for what I call the Medicare tax that they put in with Obamacare. And then it goes up to like 400,000. So depending on where the overall income is, is what percentage you’re going to pay for your capital gains rates.
Okay, so that’s where it comes in. For example, I guess if you make $60,000 joint income 60 to 70,000 for married filing jointly, and you sell a piece of property for $100,000. Is there a point where you pay zero capital gains?
Dr. Friday 19:55
Under that same exact scenario if you were making 60 to 70. And let’s say you sell the piece of land For 20, if you kept your overall income less than 100,000, you would have been in the 0% capital gains rate.
What if you sold it for more than 100,000? Do you still fall in?
Dr. Friday 20:13
There’s no zero. All or nothing. So if you make 101 with the sale, then everything is taxed at the next rate, which is 15%.
Okay, that answers the question.
Dr. Friday 20:25
Thanks, Randy. Alright. Let’s hit Tom. Hey, Tom, what’s happening?
I went to a tax preparation service, and they did my taxes. And it was just a simple form of 1040 SR. And I ended up owing $400, which was fine. I actually expected that. But after I examined it, I went home and started examining and I see where they had left something off. I have a small dividend on say 1099 DIV on box 11, which was a tax-exempt activity. There was a small amount of $162, which should have been reported online 2 A. Sow it’s my understanding that line 2 A doesn’t really affect my income. But when they went back, I wanted to refile and they refiled, made the change because I wanted to correct it even though it’s just a nominal amount. It increased my tax that I owe by $18. My question is, I said, “Well, how can that happen? If it doesn’t have any bearing on my income?” You know, if I had done this on paper, instead of electronically, I would not be at all I would have not picked up the fact that there was a state tax involved. And that’s what the explanation was that their state tax involved, and I beg to differ that.
Dr. Friday 22:16
Do you live in Tennessee? Well, we have an income tax, but that wouldn’t have kicked in because you have an exclusion of $1200. So that would be there’s no state tax involved.
So why would I owe more?
Dr. Friday 22:40
I don’t know. Put one in one of my returns, and it shows zero, I have a feeling they didn’t put it in, right. Because I just put one in just to see if it would change because I’m like you, I just put it in added $118 to the return I was working on and had a zero effect for tax exemption. So I’m not too sure what they did.
I don’t know. But I think what I’m going to do is just leave it alone.
Dr. Friday 23:03
Yeah, I agree. I think you should, it should have a zero effect the IRS would look at as a zero effect, there should be no reason for it to have a taxable situation if it was high enough where it would have a hall tax or something. That’s a different conversation.
If I just wait long, if they want to give an $18 credit for next year, so be it. But I just wanted to cloud the matter if I go back in and have them corrected again, don’t you?
Dr. Friday 23:37
I agree. I don’t think they correct it the first time. But the IRS could catch that as well. They’re pretty good sometimes on the interest being on the wrong line. But sounds like to me they did not put it in the proper box for the tax purpose. So I think they just made a mistake accidentally, for some reason, but yeah, it should have a zero effect on you. I agree with you 100%.
Yeah, okay. Thank you for your advice.
Dr. Friday 24:02
No problem, buddy. Thanks. I appreciate all the phone calls. We’re gonna get ready to take a second break here if you want to join the show you can because we got to keep our lobbyists very busy in the office there actually has nothing else to do. Haha. You can call us here at 615-737-9986. We’re gonna be right back.
Dr. Friday 24:29
We are back here live in the studio. We’re having a great time. It’s a wonderful Saturday out there perfect day to be working on taxes. If you’ve got questions, this is the show 615-737-9986 taking your calls. We’ve got John on the lines. Let’s go to John from the Boro. Hey John.
Hey, Dr. Friday.
Dr. Friday 24:54
What can I do for you?
Well, I filed my taxes I’ve been doing with TurboTax since They raise the atomize, the standardized deduction, so don’t really have to itemize and don’t get enough stuff for that. But this year, when I filed them. I have one I and my wife I both have won a contest is where you enter your name and your address and everything online. And there was no cost to it. Both of us won a total of $2200. When I did it on there, they bumped me up to their Deluxe, because it had to go, it was on 1099 miscellaneous. Which cost me $40. Then when I printed out my tax return, after I found it. They listed it as gambling winnings. So, is that where it was supposed to wind up?
Dr. Friday 25:48
Yeah, it’s gambling winnings. Now under the current one, you really don’t have any place to write it off. But yes, it is gambling winnings.
Okay. I didn’t realize it would be that without there being any change me losing anything. I wouldn’t gamble on anything. Just my information?
Dr. Friday 26:07
I think they’ve basically considered anytime you enter a contest. It’s in theory based on the rules. It’s basically gambling. Even though I hear it you’re saying it’s not like you went to the casinos and put some money in it had a chance to win or lose, you just put your name and if you won, you won. If you didn’t, there’s no money out of pocket till you didn’t actually have the chance to lose. To answer your question, It’s still perfectly considered other income on your tax return.
Okay, so at what rate was that tax? At the same right is everything else?
Dr. Friday 26:37
Okay. All right. Thank you very much.
Dr. Friday 26:42
Thank you, sir. Appreciate it. Alrighty, again, if you want to join the show, you can at 615-737-9986, taking your calls, talking about my favorite subject, which is taxes. And I thought this year is a bit different than some besides the fact that a lot of people are many people are having do 1099 G’s, which is of course, for unemployment. You also have to be dealing with interest, dividends, stock sales, I have quite a few people that did some stuff in the stock market where they hadn’t done that in the past. So my secret to all this is I think you need to step back, review your taxes because I’ve had probably about six or seven more than normal people having to amend tax returns because they immediately had them done. And we thought they’re finished, and then they get something else in the mail or an email or whatever, and it becomes something much more, and we have to change it and amend it. Now, sometimes it’s not enough to make a difference. Other times, it is enough to make a difference. So we’d like to make sure that we have everything that we have going so that we can make sure we’re on the right track and doing what we need to do. Don’t rush to get it filed that guess is all I’m gonna say make sure you file it and make sure you’ve got it completely done so that we have it ready to go into that situation and move forward with that one. So if you’ve got questions again, you can pick up the phone at 615-737-9986. Let’s go ahead hit Brian at line one when you have a second boss.
Yeah. I just had a question about my taxes that I filed this year. My interest from my mortgage, I got the what is it 1098 form or whatever it is in the mail. And it says my interest was, let’s say $800. But then I was paying my mortgage online and happened to look at the form online. And it says that my interest paid on the same form was $7800. I’ve already got my tax return back.
Dr. Friday 28:58
I don’t know how much you have Brian and charity if you’re single or you’re married, but it’s still very hard to itemize.
Dr. Friday 29:05
So you would have to have 12,400 even itemize so even if it was 78 plus your current property taxes unless you have quite a bit in charity, which you could I’m just I don’t know you, but it may not have made any difference anyway.
Dr. Friday 29:21
Does that make sense? Because you still exceed the $12,400, which you took.
Okay, so ultimately it would make not really any difference. I don’t need to refile or anything like that.
Dr. Friday 29:36
That’s correct. I mean, you can certainly take a look. I mean, if you did your taxes yourself, I don’t know. But you can just look and see what does your property taxes and your mortgage interest if you add those two together along with any charitable contributions, if those don’t add up to $12,400 it’s not going to make a difference. You would still have the exact same return you have today.
Thank you. No problem. Thanks,
Dr. Friday 29:59
Brian. Appreciate it. All right, let’s take Greg. Hey Greg, what’s happening?
Hey, there. I am 66 years old. Last April, I started receiving my Social Security benefits. But I’m still working full time. So my question is, when I’m doing my taxes, I take my Social Security benefits and add them to my work income. Then, my wife who’s filing jointly with me’s been retired. So I have her Social Security, and that’s all the income she has. Do I add all those up, and then whatever the total is, they’re gonna attack me, or do I get taxed on my Social Security?
Dr. Friday 30:46
So the most they can tax your Social Security is 85% of it. So you would never have 100% taxed, but it would depend on how much your paycheck is since you’re working a real job, Greg, still, you know, you’d have to take basically, what you do is take 100% of your W 2 and half of your Social Security. If that adds up to more than like $35,000 as a married couple, then you’re going to have a 50 to 85% of your Social Security tax, there is a provisional tax code that works with that. Do you know what your W 2 is? How much did you have in your W 2?
My W 2 is around 43,000.
Dr. Friday 31:25
Okay, so you’re gonna have 85% of your Social Security tax. Because if you take half of your Social Security plus the 44, you’re gonna be in the top bracket for taxation.
Okay, so I’m still not sure.
Dr. Friday 31:42
So you’ll take 85% of your Social Security, you’re gonna take 85% of your wife’s social security, and the total of your W 2, that’s going to be your taxable income. Well, then you’ll take off your standard deduction. And from there on, yes.
All right. All right. Okay.
Dr. Friday 31:59
No problem. Thanks, Greg. All right, let’s hit Rose. I like that name. Hey, Rose.
I do my own taxes. I was used to be an accountant in my prior life. So she called me and she does TurboTax. Her husband died this year. And so when she did TurboTax, this year, it kept on telling her that it wasn’t acceptable for a couple of days, it was not accepted. And they told her to get her AGI didn’t match last year’s.
Dr. Friday 32:40
That seems to be common. A lot of people run into I don’t really know why she may have to paper file, because the 1310 form, where if there’s a refund, the spouse is going to get in sometimes they require us to mail those returns in, but has nothing to do with the adjusted gross. So she’s trying to hit the E file. And they’re saying it doesn’t match that it’s not able to accept?
Yes. And she called TurboTax and TurboTax tell her to paper file to. But why does she have to paper file?
Dr. Friday 33:13
Because of the year in which someone passes away, if there’s a refund, there’s a separate form that we have to attach. I think it’s 1310. And that one requires to say is the court-appointed her? Is she the spouse that’s receiving? They can’t just release money just to anyone, right? I mean, because the person has passed away. Yeah, it’s a 1310 form. And that usually has to be hand submitted or mailed in.
Does she needs to, she needs to like print that 1310 off the irs.gov?
Dr. Friday 33:46
No, it should be on her tax return. Because when there’s a refund, they should automatically kick it in. At least that I use a professional version of TurboTax. So it should do the same thing, I would think. But you might want to make sure she attaches it because it can be sent separately as well. But the 1310 form is going to say whose name, how they’re going to refund it, etc, etc. It is usually required in the year someone passes away or if we’re dealing with an estate tax return where the person passed away and the money needs to go to the estate.
So I need to make sure the paper returns she printed out from the TurboTax have that?
Dr. Friday 34:18
Yes. Make sure there’s 1310 involved. Yes,
I said Just go to irs.gov and e file through the free file form. Can she do that?
Dr. Friday 34:35
She can certainly try. I think it’s gonna kick it out both ways because of the fact of her husband’s passing.
Got it. I’m gonna go call her. Thank you so so much, Dr. Friday.
Dr. Friday 34:42
No problem, Rosie. Thanks. Bye-bye. All right, let’s hit Mill real quick before the break. Mill what’s happening.
I’m a truck driver and I had all of my 2020 records at home. I had a fire in October, and my fireproof file cabinet wasn’t fireproof.
Dr. Friday 35:07
Now funny but sort of funny.
What I have done? Alright, I’m old school, I carry a ledger in my truck. Cool, that has the loads, the mileage, what I was paid, and my expenses on the road. Okay, can we build a tax return from that? With no supporting documents?
Dr. Friday 35:37
Yes, I would definitely keep the fire or proof that there had been a fire or some sort of disaster, right? So you can prove the tax law allows you to recreate it to the best of your abilities, this would be your best of your ability. So the answer is yes.
Okay. Yeah, because my ledger would have notes in it that I may not have receipts for.
Dr. Friday 36:02
Right. They would have an understanding of that. I mean, if it’s completely different from other years and completely wonky, but I mean, I’m assuming you’ve been a truck driver for a number of years, and you file taxes on that there is certain statistics and certain things, but as long as you’ve got an idea, and you’ve got a ledger that was maintained in the, during the time that you were doing it. Because a lot of times people try have to recreate the same pin, go back, create a whole new ledger. And then they’re like, “Well, how do you know this is right?” You maintain that the whole time. So they are going to accept that ledger over other types of documents. Obviously, if we can’t produce the receipts because of a fire, that’s not something you could have helped.
Okay. All right. Thank you very much.
Dr. Friday 36:43
No problem. Thanks for calling, Mel. Appreciate it. Alright, guys, we’re gonna take our last break here. So if you’ve been waiting anxiously to try to ask a question, now is the time to call 615-737-9986. And we’ll be right back.
Dr. Friday 37:13
All right, we are back here live in the studio, you need some help with taxes, you pick up the phone 615-737-9986, taking your call talking about my favorite subject, which is taxes. So if you’ve got something, it’s the season, it’s time for us to get things going, make sure everything is moving forward, getting all the things happening. We only have a little time before you know the season’s gonna be over. Don’t forget, this is a big reminder to anyone that has a partnership, a corporation, basically, any business that has more than one person in it, you remember those tax returns are due March 15. That is not this Monday, but next Monday, those returns are due and or filing an extension. So that’s very important to see you’ve got that taken care of and you’re moving in the right direction. Penalties on those can be extremely high. So you don’t want to be the person that’s just waiting for that or doing something. So again, make sure you file an extension on any business that has more than one person. That’s probably the easiest way to remember those are due on March 15. So if you have questions on those, make sure when you’re doing your taxes, I know I keep saying this.
Dr. Friday 38:27
Don’t forget on a lot of people, and I’ve had one that makes a pretty big difference. So as a tax person last year, too, we really haven’t been asking questions as far as charitable contributions, right? We have really haven’t done much and said, “oh, do you have charitable contributions?” Because there wasn’t a lot of hope for it. But guess what? This year there is. So make sure if you have given $300 or less, you can add that to above the line deduction above the itemizing. So make sure people are getting that on there. Because I’ve reviewed a couple of tax returns already and people are not seeing that. So it is an above-the-line deduction you can have on there. So just make sure that you have that if you did file if you don’t have any trouble, no big deal, You’re no better, no worse. You still get your standard deduction. So it doesn’t have any effect on you that way. But I just want to make sure that you’re doing your taxes, you see that and you can put that in there as an addition to what you have going on.
Dr. Friday 39:26
If you have college kids, children that are on their own kind of but not necessarily totally on their own. Remember, you basically have the child credit and under this new tax. why they call it stimulus check that’s coming out. I’m not exactly sure but it sounds like they were trying to add. If you have children under the age of six, there’s going to be some additional tax benefits next year on the tax return there’s going to be some extra money coming in one direction or the other. So we just need to make sure that you’re filing your taxes making sure you’re in line to be able to do what you need to do to get your stimulus money because I know a lot of people are having a hard time and can’t really take care of it. Alright, let’s see what James has to say. I know a little ahead of you there, James, what’s happening?
Hey, how you doing today? Well, what it is I file the taxes submitted them the first day I could. I had the little one, Where’s My Refund, I had the indicator. About a week or so ago, it just disappeared. And it doesn’t give me any sort of like a reason code. Because I know this has happened before in and out and taxes in a different state. But I don’t have a reason code this time. And I was just wondering if I needed to be concerned?
Dr. Friday 40:47
So you went into Where’s My Refund, and the basically says your refund is no longer available?
Right. It’s saying they’re processing it. And they would give me a date. I guess when they got one?
Dr. Friday 41:00
Right. Well, I will tell you this, if you have back student loans, if you have other state tax returns if you’re behind on child support. And I’m not saying any of that applies to you, James, but they will hold refunds for those reasons. So if any of those apply, they may have actually and you’ll get a letter. I’m sure it’s happened in the past, at least for some of my clients that have, they usually send a letter saying “your refund has now been applied to” and they’ll give a reason of whatever went apply to so but they can apply any of those different reasons for your refund, even with the stimulus checks. This is kind of funny because they initially said that the stimulus checks mark of applying to things but I have not yet seen where it hasn’t been offset to back taxes.
Okay. All right. Well, thank you so much for your time.
Dr. Friday 41:47
Thanks, James. Sorry, I wish I had a better answer.
Thank you. Yes.
Dr. Friday 41:53
That’s a tough one, guys. And I know sometimes that if you want to know where your refund is, the easiest place we send everyone to go to irs.gov and click on it. And then you’ll say Where’s My Refund? And for 80% of people, it will give you a basic answer saying your refund should be expected in your bank or it will mail on this date. And that makes life so nice and simple. Then there’s sometimes it will say “still processing” and we’ve had some of those, they’ll say that for 6-10 weeks. Now we have found out from the IRS in some cases, the process is taking longer because some of the employers had not filed W 2’s and so they’re having to go back to the employee and asking for you to attach a copy of your W 2 or to fax that into them. So they have proof that you actually had the earnings because they don’t have the Social Security match. It’s not posted properly in there. So that is one reason where you could have it held up for nothing that you did wrong. But the government can’t release refunds if they don’t have the matching W 2 that goes into the system. So that’s kind of an important thing to deal with. So again, I would keep an eye on it. And if it’s been like the first call or one of the first ones we have where it had been four weeks, I would give it about six weeks. And then I would try to fight my way through the phone lines to see if I could get a representative and see if they could tell you what’s holding up the possibility of the tax refund. Because at that point they there are missing documentation or have something else to do with their situation. All right, let’s hit Dave. What’s happening, Dave?
I’ve got a question about I did TurboTax. I got a traditional IRA and a Roth and I don’t see any place on there to list those. Am I missing something?
Dr. Friday 43:42
It should be on schedule one that you would have the ability to go in let’s see what line number that would be it is on line 19 of schedule one IRA deductions and they’re in that same when you will click that and you should take you to a form that would then allow you to enter your Roth total value of your it’s an IRA contribution worksheet should come up.
Okay, so not just the contribution for this year, but it should have my overall total?
Dr. Friday 44:16
Yes, there is actually a place where you can put your total in there as well as your Roth because as you know, Roth is not deductible on the tax return but still trackable. If you can find the IRA contribution worksheet and I use the professional version, but it’s probably pretty much the same thing. At the very top, it will give you Sep simples, Roth IRAs, and Cordell savings accounts all there. So you should be able to find all of those in there because you are going to want to track them and if you contributed both to a standard IRA and a Roth IRA, you want to put them both in there. Just make sure that you didn’t over contribute contributor, whatever.
Okay. Thank you very much.
Dr. Friday 45:01
Appreciate it. All right guys, we’re getting down to the end of the show. So if you have questions, you can certainly email those to firstname.lastname@example.org. I will tell you that it’s probably going to take us a few days to answer some of those questions. We are getting a little busy here is the season and no complaints but just be patient. And you can also leave us a message Monday morning at 615-367-0819. Even if you haven’t filed taxes in a number of years. This is the year you want to go ahead and file for one. If you haven’t received the stimulus checks they will be refundable on the tax return. So at least it would give you something you don’t want to lose those stimulus checks or those refund checks for any reason just for not filing. So it’d be important to go ahead and get those files, get them done move them forward. That way you know you can do what you need to do again if you need help. You can call us at 615-367-0819 or email email@example.com. If you want to know more about me You can also check us out on the web at Drfriday.com. Hope you guys are having an awesome Saturday. I know I get to go back to work here and get some work done. But if you hope you guys will enjoy your Saturday and have a great time. I hope you catch us again next Saturday at 2 pm on the Dr. Friday show. Call you later.