Good 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 Tax Cuts and Jobs Act of 2017 eliminated the deduction of child support and alimony. Alimony being the main one, child support hasn’t been a deduction for a while. So anyone that was divorced after the date of December 31, 2018, now, if you’re receiving alimony, it is not taxable. If you are paying alimony, you cannot deduct it from your tax return. Which I can be honest with you and tell you that has totally changed the way divorce has come down. Because it used to be we’d work out the numbers to make it best tax advantage. Now, we’re looking at how we can save the most for the person paying.

You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 pm to 3 pm on 99.7 WTN.

Good 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.

People are always asking me what’s the difference between a tax credit and a tax deduction? And one can be a lot more effective than the other. For example, if you take a tax credit that is $1 for dollar deduction on your income, so if we say your tax liability is a tax credit of $1,000, you will reduce your taxes by $1,000. Whereas if I say you have a tax deduction of $1,000, that would be pinned on your tax bracket, which could mean that if you’re in the 22% tax bracket, you may say $220 Big difference. If you need help with taxes, call me at 615-367-0819.

You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 pm to 3 pm on 99.7 WTN.

Good 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.

If you were in an installment agreement prior to the whole COVID and you haven’t been able to get it to reset, make sure that you have all the tax returns that you were supposed to have filed filed. They’re rejecting a lot of them because they’re saying people are not in compliance. I found one that actually had nothing to do with their tax ID, but she had some back 941 and 940 situations that we have to deal with. So that way, she was still out of compliance because she hadn’t filed all the forms actually hadn’t closed the business properly to handle that. So if you’re not sure why you’re not able to set up your payment plan or you just need help get in dealing with the IRS. I’m your girl. 615-367-0819.

You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 pm to 3 pm on 99.7 WTN.

Good 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.

Home equity loans. The Tax Cuts and Jobs Act of 2017 suspended from 2018 to 2025 the deduction of interest paid on a home equity loan or line of credit unless it was used to buy, build or substantially improve the taxpayer’s homes that secured the loan. Under the new Act, for example, interest on a home equity line used to build an addition to your home is typically deducted but was part of the interest on that. But if you use it to pay off personal loans, and credit cards or maybe even use it to buy a second property, it is not a tax deduction under your personal loan interest. If you need help, give me a call at 615-367-0819.

You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 pm to 3 pm on 99.7 WTN.

Good 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.

Federal Tax Code encourages charitable contributions after the age of 70. You may be able to make this directly from your RMD or the Required Minimum Distribution of your IRA. Up to $100,000 or 30% of your AGI. Come on guys, if you’re over 70 and a half, and many of you I know I do a lot of your taxes, actually are incredibly giving individuals. It is so much better to be able to give pre-tax than after-tax. If you don’t know what I’m talking about. You need to be calling me at 615-367-0819.

You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 pm to 3 pm on 99.7 WTN.

Good 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.

Injured or innocent spouses. Married couples typically file joint returns. The good news is that they usually get a better tax rate and qualify for nicer credits. The bad news is, is that the taxpayer can find themselves significantly impacted by their spouse’s financial problems, meaning maybe you’re married to someone that has, guess what? IRS debt or back child support. Those are the huge ones that we run into. And the question is, do you or should you be filing separate returns? Or can you file for an injured or innocent spouse? These are big questions, and they put a lot of money in your pocket. If you need help, all you have to do is give me a call at 615-367-0819.

You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 pm to 3 pm on 99.7 WTN.

Good 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.

Interest expense. Keep in mind that back on the Tax Cut and Jobs Act of 2017, they reduced the amount of mortgage interest that you can have. Many people basically sold their homes and then they turn around and purchase a new home. Prior to that change, you could have up to a million dollars but as of 2018, any home you’ve purchased moving forward or refinance $750,000 is the maximum mortgage you can have on your home. So if you have a mortgage for more than that, you cannot write off 100% of your mortgage interest. Call me at 615-367-0819.

You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 pm to 3 pm on 99.7 WTN.

Good 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.

Again for my entrepreneurs, remember that health insurance premiums for the self-employed are 100% deductible for your insurance premiums on an above-the-line deduction. Meaning, guys, it’s going to reduce your income. I have reviewed many schedule C’s, and I have found that a lot of people think that they have to put that on Schedule A. They do not itemize it off of Schedule C. It will not reduce your self-employment tax, but it does reduce your ordinary income tax. Also, think about health savings accounts because those accounts actually reduce your income, and you’re spending money that is not taxed yet. If you need help, give me a call.

You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 pm to 3 pm on 99.7 WTN.

Good 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. This can be a tricky thing because a lot of times, parents have actually gotten the loans for the kids because they wanted to help them out. But the parent’s income is too high to truly qualify for the $2,500 interest that you can deduct from your student loan. Did you know you could gift that money to your child, and they can deduct it from their tax returns? This may be a little loophole that you haven’t maximized. We don’t want to leave any money on the table. So if you’re not sure if you’re maximizing your taxes, you need to call me, Dr. Friday at 615-367-0819.

You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 pm to 3 pm on 99.7 WTN.

Good 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.

We all know that the tax law changed back in 2017 when they pretty much eliminated, starting in 2018, the 2106 or Expenses for Employees. But if you are a self-employed individual or you receive a 1099, remember that mileage is still out there for all of you, and you may be able to deduct your auto from what you do to make your income. So, for example, if you basically driving miles back and forth, you have the ability to write off those miles at 56 cents a mile and 2021 charity miles will be 14 cents a mile, and moving or medical is 16 cents a mile if you need help? Call 615-367-0819.

You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 pm to 3 pm on 99.7 WTN.