Dr. Friday Tax Tips

Dr. Friday uses an April Fool’s joke to remind listeners that taxes are still very real. She also points out that Congress makes tax law and encourages filers to handle extensions and tax planning on time.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

Guess what? The IRS just passed the law saying no more taxes. That’s right. We’re not paying taxes anymore. Ha, April Fool’s.

For one, the IRS does not pass laws. It’s Congress and the Senate, people. But that being said, we will be paying taxes. We’ll pay taxes actually after we’re dead, so think about that.

If you need help understanding taxes, maybe you need to file an extension now and you need to be able to get some tax work done and explain it all, you can certainly call us, 615-367-0819, or check us out on the web at drfriday.com.

You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.

Dr. Friday reviews home energy improvement credits and annual limits for items like HVAC and windows. She explains why receipts and manufacturer certificates are critical for claiming the credit.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

Energy credit for home improvements is still on the table. HVAC, windows, insulation, and energy-efficient property improvements are subject to annual limitations, but you still have them on the table.

It’s very important, but you do need the receipt and the manufacturer certificate to prove they meet IRS code. That’s the important part.

A lot of times people come in and say, well I got a new AC unit. Okay, we need the receipt. We need to see, did it really meet the energy credit, or was it just a new unit that was cheaper and not able to meet those criteria?

If you need help with this, just go to the web at drfriday.com.

You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.

Dr. Friday explains how alimony tax treatment differs depending on divorce date. She notes that most post-2018 agreements are no longer deductible to the payer.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

Divorce, alimony, really doesn’t make a big difference to be quite honest, because none of it’s tax deductible anymore.

If you got divorced after 2018, your alimony or your payments of any kind going to your ex are not going to become deductible.

If you divorced prior to 2018, you still have that deduction in play.

So if you’re looking at divorce and you’re the one that’s the breadwinner, you might want to take into account how much you’re gonna be paying in taxes because the other person will be paying zero. Very interesting way to work out a deal.

You need help on taxes? Come to us, drfriday.com.

You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.

Dr. Friday explains documentation thresholds for charitable gifts of cash and property. She warns that larger non-cash donations can be disallowed without proper appraisal support.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

Let’s talk about charitable contributions for a minute. Remember, if you give cash or you give away clothes for $250 or less, really all you need is a basic receipt.

If it goes over that, and this would be a combination thereof, I had a gentleman that gave $40,000 worth of clothing. His father had passed away, they cleaned out the house, they gave it all to Goodwill.

Without an appraisal, he was not allowed to do that. It’s that simple.

So if you’re giving big chunks of things away thinking you’re gonna help them and put some money in your pocket, you need an appraisal done on anything over $500. And that’s if it’s a lump together or not.

You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.

Dr. Friday explains that Social Security benefit taxation remains unchanged, with up to 85% potentially taxable. She also highlights qualified charitable distributions as a way some retirees can lower taxes.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

For all of you that are on Social Security, Social Security taxation has not changed. Up to 85% of your benefits will be taxed.

There is something called a QCD, though, for all of my listeners that are 70 and a half. If you give to charity, remember you can take that directly out of your IRA, your 401(k), any of them where you would normally have a required minimum distribution.

At 70 and a half, you can give it direct, save 100% of taxes on that money, and not worry about itemizing at all.

If you don’t know about that, you need to talk to your financial person. But you can also contact me at drfriday.com.

You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.

Dr. Friday reminds taxpayers they can still fund a traditional or Roth IRA up to tax day. She explains that the best choice depends on long-term planning, not just this year’s deduction.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

You can still put money into a Roth or a traditional IRA until tax day, and it may be something you want to think about.

Now, I am not a financial planner, so I’m not going to tell you it’s going to save you tax dollars or not, because I don’t know.

Every time we can put a few dollars aside and save tax dollars, it might be a good idea. But sometimes it may be better just to do Roth, let the money grow tax-free, and not worry about saving taxes today.

These are decisions you need to make. Your best bet is to contact an actual financial planner. They will then make up a plan and help you figure that out. But if you need help on the tax side of things, just go to my website and send me a note at drfriday.com.

You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.

Dr. Friday discusses a program she describes as Trump Savings for children born during eligible years. She explains the reported $1,000 initial funding and possible annual parent contributions.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

This is for all new parents. Starting as of January 1, 2025, it’s called the Trump Savings.

For each child, he will put $1,000 into an account for children born during these years, and then a parent can put up to $5,000 a year into that account.

It will be a managed fund, and then at the age of 18 they will have access. It will be limited to IRS taxes, as far as an IRA kind of situation.

But hey, it’s a thousand free dollars and you can also put money aside. Why not put more money aside to help for college and other things? If you need help understanding tax law, drfriday.com.

You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.

Dr. Friday explains the Saver’s Credit and how it is expected to transition under SECURE 2.0. She notes the benefit is mainly aimed at lower-income savers, especially workers just getting started.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

The Saver’s Credit, you know, I don’t think a lot of people talk about that.

Under the SECURE Act 2.0, the Saver’s Credit is scheduled to transition into a federal savings match. You heard that right, that they are actually going to be setting up a retirement account within the IRS where they will help match some of your savings.

Now remember, savings credits are really for people in the much lower income bracket, especially young people, because they’re just getting started.

This is a way for them to have some money set aside and a way to start. Every dollar counts. If you need help, all you have to do is go to drfriday.com.

You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.

Dr. Friday explains that qualified student loan interest may still be deductible up to annual limits. She also covers income restrictions and why documentation is required.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

Student loan interest is still deductible, up to $2,500 per year per qualified taxpayer.

There are income limitations, so you have to make sure you understand what those are. You also need Form 1098-E that will tell us exactly how much interest you paid.

You can’t do it on your own without documentation. It needs to have been turned into the IRS, otherwise it will be disallowed.

So if you need help, or you’re filing your own taxes, just make sure you’re looking at what’s being filed and you understand the boxes that you’re saying yes and no to. If you need help, go to drfriday.com.

You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.

Dr. Friday reviews the American Opportunity and Lifetime Learning credits and who they can benefit. She highlights the need for Form 1098-T and notes that rising tuition makes these credits more important.

Transcript

G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.

The American Opportunity Tax Credit and Lifetime Learning Credit continue unchanged under current law to help benefit students and families.

Annual inflation rates have increased, and it’s one of those things where you do need to have a form called a 1098-T from the college or school to see if you qualify. Very important.

Also, with rising tuition prices, you might need that credit to help offset costs.

If you need help doing taxes, or maybe you just have a question, you can try to reach us at 615-367-0819 or send us an email at [email protected].

You can catch the Dr. Friday Call-in Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.