The Dr. Friday Radio Show

By Dr. Friday BurkeBusiness

The Dr. Friday Radio Show episodes

November 02, 2020Dr. Friday Radio Show – October 31, 2020
Another episode of the Dr. Friday Radio Show is here! In this episode, Dr. Friday answers all the caller’s questions:
Check The SBA If You’re Selling A Business That You Received PPP Money On
Cares Acts Deadline
Who You Vote For President Will Affect Your Taxes
Why You Need Help With Tax Representation
If I Gift A House, Do I Pay Taxes On It?
Get Forgiveness For PPP Loan
Can Entrepreneurs’ Taxes Be Forgiven After 10 Years?
and other callers’ questions!
Transcript
Announcer 0:01
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 day, I’m Dr. Friday. It is an awesome Saturday here at two o’clock on this wonderful Saturday and the weather. It’s Halloween people, this is a great time of the year. But you know what, we have to talk about a few different things. One, PPP. I had a situation that came into my office for all of you that may have applied or received PPP money, this may be something you may have to face. This particular person was in the process of wanting to sell the business. But they had received PPP money. So actually the SBA did release and we found out some pretty interesting information. So if you’re in the process of selling a business that you did get PPP money on, very important that you go and you check out the SBA, what you need to do, because it’s not just a matter that you can now sell that business because you want to, there are some rules and even possibly pay back that loan, because it’s not going to be with the same owner. So very, very important that we do that. All right. Well, we’ve already got somebody on the line, and I believe it’s Steve in Cooksville.
Caller 1:44
Yes, I was gonna ask I have a couple of annuity. They use of term qualified nonqualified. Just wondering, about the one that’s not the right base type of annuity. What would be the difference in having an annuity that you could have just a regular life savings account? You know, if it’s one that they talk about free money? On the statement, I could take out so much money, cash before the penalty. And I thought as long as I stay below it Is there much different than withdrawing as far as tax-wise?
Dr. Friday 2:21
As you said, Steve, if it’s not in an IRA situation, but it’s with an after-tax investment, you’re allowed once a year to take the money out a certain dollar amount without penalty from the annuity, you will pay on the tax first, most annuities take out the growth of the annuity first, leaving the original investment in there. So later on, you’ll eventually if you take it all out, we’ll eventually have that. So the biggest difference will be is that if you’ve had, let’s just say you’re taking $5,000 out and it’s and you’ve had 5000 in that year of growth, you’re gonna pay tax on all $5,000.
Caller 3:02
I know I’m sounding stupid here. But, when I get my statement ready to file for IRS, does it show how much or if that’s something totally taxable all the way or?
Dr. Friday 3:14
Right, they’re gonna give you that information, to be honest. You’re gonna receive a form called the 1099 R and in box one, it’s going to show the total distribution and in box two, it’s going to show the taxable amount, doesn’t mean they’re going to match. Theoretically, box five would be the difference. So just as a point of interest, yeah, you’ll find o
48 min
October 20, 2020Dr. Friday Radio Show – October 17, 2020
Welcome to the Dr. Friday radio show! In this episode, Dr. Friday talks with Russ Cook on questions about estate, setting up a trust, including the following topics:
What Is A Trust?
How You People Should Look At Their Estate Planning
How A Trust Works
When Should I Have A Will?
How Much Money Do I Need To Have A Will?
Should I Add My Children To My Bank Account?
Why You Should Have An Estate Plan
Is There An Estate Tax?
Do I Have To Change My Estate Documents Every Time the Law Changes?
Why You Need Help With Tax Representation
and so much more!
Transcript
Announcer 0:01
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 0:44
All kinds of great things. I do have a wonderful guest on and you can just open his line if you want. Russ Cook and Associates will be joining us today. Let’s see if Russ is online. Can you hear me?
Russ Cook 0:59
Yes, I can
Dr. Friday 1:01
Look at you. Technology is working fabulously. Hey, you know what? It is what it is my friend we all live and learn. Alright, so Russ, why don’t you tell my listeners a little bit about who in the heck is Russ Cook? Not that they shouldn’t know you already?
Russ Cook 1:20
Well, I’m a board-certified estate planning attorney. I’ve been doing it for over 30 years, my father and grandfather did as well. So it couldn’t escape generationally. Went to law school in DC and came here.
Dr. Friday 1:33
Lucky us. I’ve known you for good, I don’t know, 15 years, at least I guess. Russ handles all of my stuff and I refer him to my clients. I’ve got all kinds of noises going on over here. So today I want to have Russ on because it’s getting close to the end of the year. I always love having you on to talk about some of the things not even really necessarily the end of the year situation. But this year, gosh, it’s been a crazy year. But a lot of times, things happen every year. Dealing with estates, it seems to me that would be one of the things that we need to consider. How often should we look at our estate planning? Are there certain times when something major obviously people may be thinking of getting married or getting divorced? So is there a certain time period people should do it is every time there’s a major event? How should people look at their estate planning?
Russ Cook 2:28
Well, we’re sending letters out to our clients every two years, asking them to look over their estate planning documents, and if certain events have happened in their lives, then, of course, it’d be a good time to come in and review what they have. Because the estate planning documents are not only wills but also power attorney for financial matters, power attorney for health care matters, and living wills. You want to make sure that the people you have in place are the ones that you think will do the job.
Dr. Friday 2:57
Yeah, I have one that will pull the plug. I’m very happy with that theory. Okay, so one of the big things, and I learned this years ago from you, and I didn’t even know it. And I have people to this day that whenever I hear this, I’m like no, no, no. But how important it is to have like a joint bank account with your kids. A lot of times, especially as we get older, we want to make sure that our children have access to help pay for bills and things. So they add them to the bank account. Is that a good idea or not?
47 min
October 13, 2020Dr. Friday Radio Show – October 10, 2020
Welcome to the Dr. Friday radio show! In this episode, Dr. Friday gives all the new tax updates and deadlines, including the following topics:
October 15, 2020 Tax Deadline
Pay Into Your SEP
New Grant Program – Tennesee Department of Revenue
Apply For PPP Loan Forgiveness
All About The Cares Act
Tax Advantages To Giving To Charity
Need Help Getting Caught Up On Taxes?
Quarterly Payments For Entrepreneurs
Why You Need Help With Tax Representation
and other caller’s questions!
Transcript
Dr. Friday 0:01
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 day, I’m Dr. Friday and the doctor is in the house. We are here talking to you live. So if you’ve got questions, all you have to do is pick up the phone at 615-737-9986. We are taking your calls. Talking about taxes. I’m an enrolled agent licensed with the Internal Revenue Service to do taxes and representation which is pretty much what I do. So that means if you’ve got questions, maybe you’re getting ready to finish up those tax returns. I know I’m working most of the weekend, we have an October 15 deadline for filing your taxes assuming that you filed an extension. If you did not file an extension, then you are late. But if you did, then you have until 10/15/20 to file the actual paperwork. Now, remember, that does not and has not extended the amount due. So you could or will be getting hit with a penalty if you owe additional funds. If you’ve waited until the last minute. You also need to pay into your SEP, its one of the reasons many people delay is because they have extra time to pay into their self-employed retirement programs. So remember that deposit has to be done on or before 10/15.
Dr. Friday 1:43
So what’s new in the world of taxes and things? One of the newest things, there was a new program introduced by the Tennessee Department of Revenue the state of Tennessee has a new grant program available to reimburse small business and nonprofit organizations up to $30,000 in costs related to COVID. As recipients of the funds under the Tennessee business Relief Program, you can apply for this under tncareact.tn.gov/serg. If you need more information, I can send you a link to that. All applications have to be in before December 29, 2020. This is supposed to help cover costs to create social distancing measures, purchasing personal protective equipment for employees or customers contactless equipment, payroll expenses, and mortgage interest. So they are trying to help take the money that was given to them from the federal government during all of the cares act and moving that back through to the small business owner. So if you are still barely making ends meet, there is a criterion on this one, they are matching May through August of 2019 to May and August of 2020 to see if you have been affected by the COVID. If you have not been affected if you’re still making money still profiting doesn’t mean you can’t have a profit just means you’re not making the same amount of profits, then you may be able to apply. My suggestion is everybody should apply. If it doesn’t work well then fine. Most small businesses are having to do whatever it takes to survive. So again, if you are a small business owner, or working with a nonprofit, there’s up to $30,000 grant available, which means that you will not be paying that back It is a grant.
Dr. Friday 3:35
Then the next thing is PPP money. Now I know there’s no more PPP co
47 min
October 06, 2020Dr. Friday Radio Show – October 3, 2020
Welcome to Dr. Friday’s show! In this show, Dr. Friday and Nathan Wright talk about taxes, medicare, and so much more:
What Does Medicare Not Cover?
Do I want A Medicare Advantage Plan or A Medicare Supplement Plan?
Medicare Open Enrollment
Does Medicare Cover Everything?
Will I Get A Penalty If I Don’t Take Medicare?
Why You Should Be On Credible Coverage
Is Medicare Part B Optional?
Why You Need Help With Tax Representation
Transcript
Caller 0:01
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
All right, I am Dr. Friday here live. It’s a wonderful Saturday, October 3. I have a wonderful guest with us. If you want to join the show, today, you can at 615-737-9986. You guys have heard this gentleman’s name on my show before and his voice. We have Nathan right who is a specialist in insurance, especially specializing with people on Medicare. Hey, Nathan, can you hear me?
Nathan Wright 1:03
Hey, Dr. Friday, I can hear you.
Dr. Friday 1:06
I love it when technology actually works. I’m sure the guy in the studio is excited about that, too. All right. So today, we’re gonna cover a couple of different things. Are we getting to a point or a time where people should be looking at the types of insurance that they have? I know, there are certain times of the years that that’s more important than others?
Nathan Wright 1:26
You’re exactly right. So October 15-December 7 is what we call Medicare Open Enrollment. Actually right now through the 14th, it’s called the pre-shopping season.
Dr. Friday 1:38
It’s kind of like Christmas, you know, we have black Friday, a little pre-shopping and then rolls around. Eventually, we have Christmas. That makes life easy. Okay, so what does someone that is on Medicare need to know? If they think “Hey, I’ve got Medicare covers everything.” Maybe not?
Nathan Wright 1:58
It definitely does not cover everything. So in general, you’ve got deductibles, you’ve got expenses that are not going to be covered with Medicare, especially like vision, dental, and hearing that is something that is actually not covered by Medicare.
Dr. Friday 2:16
Wow. So I think we’re talking about Part B is probably standard Medicare, is that correct? And I’m not an expert at all.
Nathan Wright 2:25
So part B is actually the doctor portion of Medicare. Part A is going to be your hospital portion of Medicare.
Dr. Friday 2:32
Alright, so everyone gets standard, part A then?
Nathan Wright 2:36
So what happens is, when you first get onto Medicare, you’re gonna get Part A. Then Part B, they actually automatically sign you up for part B, unless you opt-out of Part B.
Dr. Friday 2:51
Right, which most of us won’t even know if we should or shouldn’t. So, if somebody is on Medicare right now, we’re getting ready to go into what you called the open enrollment. So they’ll be wanting to revisit the vision, the dental, those kinds, is that something they can control and still have their part A for doctors? Is each one of these pots is individual?
Nathan Wright 3:18
Well, Part A or Part B does not cover the vision, dental, and hearing. So these things called Medicare Advantage plans that many of those have those built-in, that you can get, in addition to M
48 min
September 30, 2020Dr. Friday Radio Show – September 26, 2020
Another episode of the Dr. Friday show is here! In this show, Dr. Friday talks about the new tax updates and deadlines, including the following topic:
Will I Still Get My Stimulus Check?
All About The Cares Act
The Tennessee Business Relief Program
Is The Stimulus Money Taxable?
PPP Money & Forgiveness
Why You Need Help With Tax Representation
EIDL Information
and other caller’s questions!
Transcript
Announcer 0:01
No, no, no, she’s not a medical doctor, but she can sure cure your problems or your financial woes. She’s the how-to girl. It’s the Dr. Friday show. If you have a question for Dr. Friday, call her now at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.
Dr. Friday 0:31
All righty, we are live here. It’s a wonderful Saturday, whether it’s fairly nice, I guess you’d say fall is coming in, and tax season is upon us. October 15 is a major deadline for all of us that like to procrastinate or just the reason we like to extend it. So we can actually put more money into our SEPs or our 401 Ks, which can be extended to make payments if you’re self-employed. So there’s a couple of strategies we need to think about. We all know, it seems like I’m always talking a year behind, obviously, October 15 is for everyone that hasn’t filed an extension, but basically, we’re talking 2019. Meanwhile, 2020 is going to be probably one of the most unusual tax seasons I’ve seen in 25 years, which is how long I’ve been doing taxes. With the Cares Act, and all those different things happening, there’s been some changes, something I haven’t talked a lot about is during the Cares Act, they authorized an above the line deduction of $300 to donations. So you do not have to itemize to take $300 of donation. So you’ll take your standard deduction plus 300. So if you haven’t given to charity this year, because you’re always like, “Well, it doesn’t change, I can’t give enough to make a difference as far as itemizing.” It’s part of the conversation. If it’s not a tax deduction, maybe I don’t do anything with it. Well, it comes down to it, it’s going to be this simple, it’s going to be that you can give up to $300. Do not itemize, furthermore, increase your charitable contributions or monetary gifts up in 2020. So you might want to think about giving, but the $300 is going to be above the line. So that is a kind of an important thing that happened during the Cares Act.
Dr. Friday 2:24
Again, it’s a 2020 situation, 90% of my clients give more than $300 in a year no matter what, but if it’s a year in which you haven’t, and I realized, for many people, this has been a very difficult year. Keep in mind that sometimes doing this as far as giving charity, this is going to be an additional $300. So if you’re at the 10% tax bracket, it will save you $30 right 10% of 300 if you read the 15 or 2020 will save you $60. So, depending on your tax bracket, it’s going to put a few more dollars in your pocket. Small businesses are facing extremely unusual days, right? And we need to probably do more tax strategizing than we ever have. PPP money is coming in. I do want to make sure we talk about the Tennessee business Relief Program. There are quite a few people that I keep getting information on that there isn’t anything going that direction. I mean, they did not know it existed. They’re getting some letters, and they’re not really sure. So keep in mind, you have to have had a 25% drop in income and you have to be within certain types of industries.
Dr. Friday 3:39
Most of them are tourism or restaurants, florists, and those kinds of the one
46 min
September 22, 2020Dr. Friday Radio Show – September 19, 2020
Welcome to another episode of the Dr. Friday radio show! In this show, Dr. Friday shares all the latest tax updates, including the following topics:
The IRS Is Hiring
Why Have I Not Received My Stimulus Check?
Will There Be A Second Stimulus Coming?
Why Haven’t I Received My Tax Refund Yet?
The IRS Is Hiring
PPP Money: Forgiveness
Why You Need Help With Tax Representation
Is The Stimulus Money Taxable?
and other caller’s questions!
Transcript
Announcer 0:01
No, no, no, she’s not a medical doctor, but she can sure cure your problems or your financial woes. She’s the how-to girl. It’s the Dr. Friday show. If you have a question for Dr. Friday, call her now at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.
Dr. Friday 0:30
Good morning, I’m Dr. Friday and the doctor is in the house. If you’ve got questions concerning taxes, if you haven’t filed your taxes for 2019, it is coming quickly. We only have until October 15. If you have a business, an LLC that is multi-member or corporation 1065, 1120, 1120-S, those were due on 9/15. So you may be late at this point, that’s assuming you filed an extension in the first place. Otherwise, you are just a late period. It’s time to talk taxes. If you want to join the show you can I am live here 615-737-9986. So we have a lot of things going on lately. Many questions coming from some of my listeners and clients concerning payments. Many people mailed in a check. And then obviously, it’s been months and they hadn’t cleared the bank. So in some cases, we have people that we told them to go ahead and make a payment. Because we had no proof in those cases that they had actually mailed the payment, besides their word, but there was no secured tracking. Then the checks are clearing the bank, and in some cases, they’re getting double payments, some cases that people made stop payments. The IRS is bouncing payments are getting returned payments, I should say.
Dr. Friday 1:52
This is a bit more confusing than our normal situation, and that’s all because the mailroom was months behind. Obviously, they’re getting caught up because they’re finding cheques and they’re starting to deposit them. The downside to that conversation is, is that if you already paid the bill once, you could end up either paying it twice. So I would double-check and make sure you made a stop payment. If you do bounce a check on the IRS, there are fees that they can charge you. So you need to make sure you’ve documented that the payment cleared. And the reason why you made the stop payment, etc. so that there is a chance of getting that penalty waived, most importantly, is tracking. So whenever you send something to the IRS a check, communication of any sort, you need to make sure that there’s tracking on it. So we have documentation showing that you filed this and that they received it. That way, you know, if you’ve got proof that they’ve received your cheque, but they just never cashed it, I would wait it out, especially in this year where we know that the mailroom was months behind in doing everything they need to do. Most importantly, you need to make sure that your communication is tracked because otherwise there’s no guarantee the IRS received it. Therefore, you may be waiting and accumulating penalties and interest on money that you assume they would get, and they didn’t. So very important for you to be able to track your information. The first lesson in dealing with the IRS, always make sure that you have a paper trail,l that is just common sense.
Dr. Friday 3:19
If you want to join the show, you can at 615-737-9986. Maybe you’re dealing with an IRS issue at th
47 min
September 15, 2020Dr. Friday Radio Show – September 12, 2020
Dr. Friday is back with another incredible Radio Show! In this episode, Dr. Friday talks all you need to know about taxes, including the following topics:
The IRS Is Hiring
PPP Money: Forgiveness
What Do I Do If I Haven’t Received My Stimulus Check Yet?
How Much Money Can I Gift My Child Per Year?
Selling Your Home & Capital Gains
Why You Need Help With Tax Representation
Will There Be A Second Stimulus Check?
Is The Stimulus Money Taxable?
and so much more!
Transcript
Announcer 0:01
No, no, no, she’s not a medical doctor, but she can sure cure your problems or your financial woes. She’s the how-to girl. It’s the Dr. Friday show. If you have a question for Dr. Friday, call her now at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.
Dr. Friday 0:30
Good day. I’m Dr. Friday and this is the Dr. Friday show. We are here to talk about my favorite subject, taxes. If you want to join the show, you can 615-737-9986. We’re taking your calls talking about again, my favorite subject taxes. Maybe you haven’t filed taxes in a number of years. Now maybe the time to think about making a deal with the IRS getting caught up getting everything filed. Very difficult to move forward with purchasing houses going to college. A lot of times college kids need to have parents tax returns. If you haven’t filed those, it’s very difficult to get funding. Or you’re wanting to start over and you’ve got a lot of things in the past that just happen. We can’t change the past. But what we can do is get it taken care of. So it’s not continuously coming back. So if you’ve got questions on that, or remember, coming Tuesday, if you have a business that would be people that are operating as a corporation, a partnership, a trust, in most cases, unless you’re on a fiscal year, all of those are due September 15. So that is next Tuesday. So if you haven’t filed, I would suggest that at this point, you probably better figure out something to get into a tax program because I doubt you’re going to find a tax person Monday to do your taxes. Otherwise, you’re going to have some serious late fees. Now that’s assuming that you actually filed an extension. If you didn’t file an extension, you are already late as individuals You have until October 15. And those deadlines are coming very quickly. If you don’t have someone to do your taxes and you’re still looking for help, you can go to my website, Drfriday.com. Click on appointments and set up an appointment, I’d be more than glad to still help you. I believe there are still some appointments open for us to help you get filed. Again, this is for individuals that filed an extension. If you haven’t filed an extension, then you’re late already on your individual tax returns.
Dr. Friday 2:30
Here is some good news for individuals who haven’t received their stimulus checks or were paid too little. The IRS will be able to correct amounts in certain cases in creating processes that help some people who are due to an economic impact payment but never got it or received at the correct amount. But you know, for people like identity theft, innocent spouses, or just people that made a mathematical error on their tax returns, they’re hiring about 5000 new employees. So again, if you don’t have work, might well look on the irs.gov website then look and see if there’s a job opportunity. They are looking for people to help them with the backlog of emails, calls, and obviously stimulus checks. So it’s not over if you haven’t received your stimulus check, to be quite honest, if you haven’t received it, and we’re by the end of the year, you will be
47 min
September 02, 2020Dr. Friday Radio Show – August 29, 2020
This week’s Dr. Friday Show is here! In this episode, Dr. Friday talks all about tax updates, and the following topics:
Will There Be A Second Stimulus Check?
What Do I Do If I Haven’t Received My Stimulus Check Yet?
Is The Stimulus Money Taxable?
Is There A Way To Deffer My Social Security Tax?
Should I Pay The IRS Electronically Or Through Mail?
Why You Need Help With Tax Representation
PPP Money: Forgiveness Or Pay Loan Back?
Help If You Haven’t Filed Your Taxes
and so much more!
Transcript
Announcer 0:01
No, no, no, she’s not a medical doctor, but she can sure cure your problems or your financial woes. She’s the how-to girl. It’s the Dr. Friday show. If you have a question for Dr. Friday, call her now at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.
Dr. Friday 0:30
Good day, I’m Dr. Friday and the doctor is in the house. So if you’re thinking about taxes, maybe you’ve had something come up in your tax situation, buying, selling, changing any of those kinds of things, then you might need to ask a question. Because once you do something, it’s really, really hard. In fact, in some cases, totally impossible to correct where we might have been able to save you tax dollars. You can’t do it if you change things. So if you go without I mean, you go sell a large piece of property and maybe had the ability to tote the note or do something where you may have been able to save some taxes. Sometimes it’s not a good idea. Sometimes it is, but you need to know what your options are. So you can move forward and make sure you’re doing what you need to do and when you need to do it. If you want to join the show, all you have to do is call 615-737-9986 is the number here in the studio. We are live in-studio and as you guys know, we are working nowadays via Skype through our home offices. So if you’re hearing a little bit of a whine, I have a nine-week-old Great Dane puppy in the office with me here. He’s not totally happy because he’s no longer the center of attention for a bit of time. So just the background noise maybe a little bit scratchy from time to time, and that’s alright, you know what, they’re great and I love my baby. So if you have a call or you want to join the show again 615-737-9986.
Dr. Friday 2:00
Okay, so one of the biggest questions that I keep getting asked, Do I think there’s going to be another stimulus? So I went out there to take a look not just on my own opinions, but what other people what other companies and individuals are saying and it really sounds like individuals are probably not going to get another package. There may be because there was still leftover PPP money that may be able to do but basically, they’re now saying that what was going to be a possibly fairly decent size bill is probably not going to pass again, Republicans are feeling the pain of the first bill. Democrats are wanting to have more money put towards the post office and other situations before they’re willing to either come back to the table. So for all of us that kind of sit a little bit in the middle saying, “Why can’t we make things work? Why can’t we do things?” Well, that is why it’s a little bit more difficult. So most of us are looking at the right now PPP money. We’ve received it hopefully since it’s no longer available out there. But taking the PPP money and making sure you have a couple of options. Obviously you also have the employee credits that you can take. But remember, you can’t take both in some of these cases. The same thing with the self-employed, you can’t take both. If you’re self-employed and you’ve got Unemployment and you got P
46 min
August 26, 2020Dr. Friday Radio Show – August 22, 2020
Welcome to another episode of the Dr. Friday Show! In this episode, Dr. Friday talks all about filing taxes, tax updates, and the following topics:
PPP Loan Is Forgivable
Should I Pay The IRS Electronically Or Through Mail?
Why You Need Help With Tax Representation
PPP Money: Forgiveness Or Pay Loan Back?
Will There Be A Second Stimulus Check Coming?
Help If You Haven’t Filed Your Taxes
Does My Filing Status Change Immediately If I Just Got Divorced?
and so much more!
Transcript
Announcer 0:01
No, no, no, she’s not a medical doctor, but she can share cure your problems or your financial woes. She’s the how-to girl. It’s the Dr. Friday show. If you have a question for Dr. Friday, call her now at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.
Dr. Friday 0:30
Good day, I’m Dr. Friday and the doctor is in the house at least the new house the way we’re doing it nowadays. So if you’d like to join the show you can at 615-737-9986, which is the number here in the studio. You can join the show if you got questions concerning taxes or money issues, maybe you’ve received one of those love letters. We have gotten quite a few phone calls this week about people getting love letters as I like to refer them letters from the Internal Revenue Service. Showing additional penalties due. In some cases, they’re not even showing the money that was paid at the time of filing. So they’re showing how much was paid throughout the year. Most of these are for equal payments. They’re talking about estimated taxes a large number of my listeners and people I do taxes are self-employed. The IRS has definitely jumped on it this year. Keep in mind all that money that has gone out the door to help people survive the COVID situation. I think the IRS is definitely on top of their collections. Now we have seen several letters, little things I mean, $200-300 ones, I have one as low as $15.
Dr. Friday 1:40
They are definitely I think it’s computer-generated so it’s not like an individual sitting there but they’re basically looking at your prior-year tax payments. So if you are an entrepreneur, self-employed person, someone that receives 1099 you are required to make four equal payments. So even though you might have by the end of the year had no money do in fact, you may have had refunds in several cases we have had refunds, they are still charging you the failure to pay quarterly estimates and failure to pay in penalties on those. It’s not necessarily a high penalty. I believe it’s .5%. But it’s still a percentage and it’s still a penalty. So if you got one of those love loaders, and you’re not too sure what it’s saying because you’re like, “Wait for a second, I paid on my taxes by July 15. Why do I owe taxes.” You might want to read the fine print a bit and find out that you may have paid it all on time as far as by the July 15 deadline, but you didn’t pay it in the way the IRS is expecting it which is in four equal payments. When you prepared your taxes, for example, your 2019, you should have also received four estimated vouchers, depending on what time of the year you prepared them. If you provided them before the April the July 15 deadline. You may have seen where it said 415 615 915 and 115 Now ours all showed 715 for the first two, and then 915 and 115. But either way, you had to make your first two quarterly. So if you have not paid your first two quarterlies for the year 2020, and you are receiving 1099’s, that will be something you might want to consider. It is supposed to be paid, and therefore there’s a penalty. So that hopefully answers many of the questions that we had come in.
Dr. Friday 3:2
47 min
August 19, 2020Dr. Friday Radio Show – August 15, 2020
Welcome to the Dr. Friday Show! In this episode, Dr. Friday talks all about tax filing, tax updates, and the following topics:
PPP Money: Forgiveness Or Pay Loan Back?
How Who You Elect As President Will Affect Your Taxes
Why You Need Help With Tax Representation
When Do Business Tax Returns Have To Be Filed?
The Extention For Unemployment
Should I Pay The IRS Electronically Or Through Mail?
Can I Take Money Out Of My 401K?
Will There Be A Second Stimulus Check Coming?
and so much more!
Transcript
Announcer 0:01
No, no, no, she’s not a medical doctor, but she can share cure your problems or your financial woes. She’s the how-to girl. It’s the Dr. Friday show. If you have a question for Dr. Friday, call her now at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.
Dr. Friday 0:30
Hey, this is Dr. Friday and I’m living here in the studio and we’ve got quite a show to do. And if you’ve got questions, I would say now’s the time to pick up the phone. It’s gonna be a great show. Call the number 615-737-9986. We’re going to talk about several emails that came in this week. We want to start the show out strong because many companies small business owners received PPP money. That was the payroll protection money. In some cases, it was needed you were going to keep your doors closed. But in other cases, it was helpful. It was a way of keeping because many companies were not sure exactly if their businesses were going to get closed, what was going to happen, especially restaurant owners. But with lots of my clients, I will have to say we’ve been blessed to the extent that they were able to make up or to move forward with money that came from the PPP, but they can drive through and pick up and delivery. A lot of local people were great as far as using the local services. And so they really did not have any layoffs. And they didn’t have as much loss of income as they were expecting.
Dr. Friday 1:45
So one of the big questions comes is by using the money and getting it forgiven. That means that in the case of let’s just say a small restaurant that maybe received $30,000 in PPP money, but they didn’t really have any major loss because they were able to tighten down they were able to continue to pay their rent and everything with the profits. So the PPP was really used to pay the payroll. So now they paid payroll, they can get it forgiven because they met the criteria, but now they have $30,000 more income in 2020 than what they would have normally had because they’re going to lose that $30,000 deduction. PPP paid for it, they didn’t, they now have a larger profit. So the question comes is this, if you don’t go for forgiveness, you have a 1% loan for five years. And the question comes in, it’s gonna be different for everyone but something you might want to talk to your tax person or do some number crunching depending on how much money you made, and how much profit you are showing for 2020. We pay tax and most of my clients are many of them in the 22% to 25% tax bracket in some cases, would it be better not to ask for forgiveness and to pay that money back over a period of time, or to claim the profits and have to pay 22% tax and in some cases self-employment tax, which adds that another 7.65%. So that could be almost a 30% tax, in some cases or anywhere somewhere there. So that’s the question you need to really think about in some of my business cases, we have come to the conclusion that it may be smarter not to ask for forgiveness, but to actually pay the loan back at 1% interest. Better to have control and do what you need to with it than to even though they would legitimately qualify for forgiveness, the prophets are getting into a tax
47 min

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The Dr. Friday Radio Show is a weekly radio show broadcast live on 99.7/WWTN every Saturday from 2PM-3PM CST. If you are outside of the listening area of the radio station (Nashville, TN), you can also download the iHeart App on your smartphone and search WWTN to hear the LIVE show.

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