Dr. Friday Tax Tips

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 friday@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 why self-employed taxpayers on marketplace insurance can face repayment surprises. She stresses updating income estimates during the year to reduce end-of-year penalty risk. 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. Premium tax credit rules for the marketplace. Again, guys, I am not a fan of the marketplace. Mainly because a large number of my clients in it are self-employed, which means we can’t always control our income, and therefore we end up making too much money and get penalized. That is never a good day when you have to tell somebody that expected to owe maybe a thousand or two that they owe five or six because of the penalty of not paying enough in the marketplace. Make sure you have told them how much money you’re making, and if it’s going up throughout the year, you can change the amount in the system. Don’t get caught having to pay a big fine at the end. If you need help, 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 uses a St. Patrick’s Day message to remind taxpayers to review all available deductions. She encourages filers to stay current with changing tax law and claim what they are entitled to. 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. Happy St. Patrick’s Day. Hopefully you’re going to enjoy something green, maybe even putting more green in your pocket by doing your taxes and saving tax dollars. What a great way to celebrate St. Patrick’s Day. You might not think so, but I would think it’s a great way to put more money in your pocket. One way to do that is to make sure you have taken all of your tax deductions. Tax laws are changing all the time. Make sure that you understand what you are entitled to and what’s available to you. If you need help filing taxes, just call our office at 615-367-0819, or you can send a message right through the internet 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 partnerships, S corporations, and many LLC filers that March 16 is a key filing deadline. She urges taxpayers to confirm that returns or extensions were actually submitted to avoid penalties. 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. Today is a big day for anyone that is a partnership, an S corporation, and many LLCs filing Form 1065, because today is your tax day. If you have not filed, or your tax person hasn’t communicated with you, you need to make sure and confirm that the extension is filed. The IRS is now saying if you haven’t confirmed that the extension is filed, you may be liable for penalties. It’s very important. All you have to do, if you’re one of my clients, is call our office at 615-367-0819 or send an email to friday@drfriday.com, and they can confirm filing or extension. 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 the Child and Dependent Care Credit can still provide nonrefundable relief for eligible care costs. She also mentions income limits and how 529 plans may help with related education expenses. 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. Child and Dependent Care Credit continues to offer non-refundable tax relief for qualified child care, with eligible percentages and expense caps adjusted over time. All I’m trying to say is maybe you have a kid in daycare, maybe you have a child in private school, and there are some tax credits that could apply. A lot of this depends on your income. Now, if you have a 529 plan, you could be taking money out of that and you won’t even have to worry about the taxes. If you need help understanding how you might be able to put money aside, or maybe even help your kids or grandkids because you have some money you want to help with, just go to drfriday.com and ask a question. 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 walks through key Child Tax Credit rules, including income phaseouts and age requirements. She also notes that the child must have a Social Security number and U.S. citizenship. 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. Child tax credit, wonderful thing. It’s now permanent, so we’re getting $2,000 per child. The child must be a U.S. citizen and must have a Social Security number. Other than that, you don’t have many other limitations besides income. Income for a single person, anything over $200,000 will phase you out. A married couple, anything over $400,000 will phase you out. That’s what you need to know, and make sure your child is under the age of 17. If they’re older than that, they will not qualify for that credit. If you need help, or you just want to know more about who I am or what I can do to help you, pick up the phone and give us a call. 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 who may qualify for the small business health insurance credit and why planning matters. She also notes the two-year limit and the value of employee benefits. 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. Small business health insurance credit. To claim the credit, businesses generally must purchase insurance through a SHOP marketplace, through available varieties by the state. The credit remains limited to two consecutive tax years, requiring employers to plan strategically, and rising health care costs make the credit particularly valuable. It’s really important for you to understand that we’re always looking for ways to give more to our employees without having to up their taxes. One of those ways would be benefits, and one would be health insurance. That way, you get a credit for doing it. It may not zero out the cost, but it does give something back to the employees as well as put money in your pocket. If you need help, 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 highlights expanded IRS partnership audit enforcement under the Bipartisan Budget Act framework. She stresses clean records for basis, allocations, and distributions to protect partners. 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. And this is really for people that are in partnerships, which would also be LLCs. The IRS is expanding its partnership audit regime against the Bipartisan Budget Act framework, which allows adjustments to be assessed at the partnership level rather than partner level. That means the partnership can actually end up with the partner being in trouble, so you need to make sure proper documentation is in place. The partnership must maintain clear records supporting basis calculations, income allocations, and distributions. These are important words, and you need to make sure your tax person and accountant are doing them. You need help? 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 entity choice planning still matters, even with the 21% corporate tax rate remaining in place. She recommends working with both a tax professional and an attorney before deciding. 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 permanency of the one big beautiful bill comes into play when it comes to business entity selection. One of the big things that people weren’t sure about is how long the 21% corporate tax rate would stay in play. Should I be an LLC, a C Corp, an S Corp, a partnership? It’s a lot. Really, your best bet is to sit down with two important people. One would be a tax person. We can give you all the advantages and disadvantages of the entities. The second is a good attorney, because without that person you’re never gonna have it set up properly. You need to make sure you’ve got all those people working together as a team. If you need help, first go to the web, 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 annual vehicle depreciation limit adjustments and why business-use percentage matters. She reminds owners that personal-use vehicles generally cannot be fully depreciated. 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. Vehicle depreciation limits continue to adjust annually for inflation, impacting deductions for business owners’ cars, SUVs, and trucks. Luxury auto vehicle depreciation treatment is an important thing to understand. If your vehicle is not used 100% for business, and if you only have one vehicle that would be impossible, you do not qualify for full depreciation. You need help with your car, taxes, anything, just 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 explains that self-employment tax rules still apply, including annual Social Security wage base changes and Medicare add-ons for higher earners. She encourages self-employed taxpayers to review projected taxes before filing. 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. Self-employment tax obviously continues under the current tax law. Social Security wage base increases annually, and the Medicare surcharge applies to higher earners. 2025 self-employed taxpayers must plan for potential higher tax burdens due to inflation. Again, everyone loves the idea that they’re making more money because, well, last year I made 20, this year I made 25. That’s great, but you also have higher tax rates you’re going into because they’re not adjusting them for the higher dollar amounts people are making. It’s a great way for the government to make more money. If you’re self-employed, you need to review your tax stuff before you file. 615-367-0819. 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 warns that Employee Retention Credit claims from 2020 and 2021 are still under heavy IRS scrutiny. She emphasizes tracking the claim details now so audit responses are easier later. 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. And it’s not really about current taxes, but I wanted to bring up employee retention tax credit. It really was about 2020 and 2021. But in 2025, audit and compliance reviews remain very aggressive. A number of people have come to my office and we’re having to deal with audits because somebody else filed the ERC. Now they’re like, well, I don’t know how we got that number, and we spent the money, and we don’t know where the money went. This is important to be able to track. If you haven’t done it, you might want to go ahead and get it set up in your system because the IRS is aggressively reviewing these numbers. If you need help, check us out on the web, 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 current deduction split between business meals and entertainment. She explains what documentation is needed and why a true business meal is different from entertainment spending. 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. Business meals and entertainment. Currently, business meals remain a 50% deduction while entertainment continues to be a 0% deduction. That’s right. If you’re taking someone to a football game or you’re taking them out to the clubs, whatever, to entertain them, that is not a tax deduction. Sometimes people seem to be confused on what is or what isn’t. A meal needs to be a meal, not just hors d’oeuvres and liquor. It needs to be a meal and you need to be able to write that off for business purposes, which means you need to have discussed something about business. You still need names, receipts, and who you had that bill with. If you need help, just check us out on the web, 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 gig workers and freelancers now face tighter reporting under Forms 1099-K and 1099-NEC. She also highlights self-employment tax exposure and why estimated payments matter to avoid penalties. 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. Gig workers and freelancers face increased tax reporting requirements as the platform economy expands with Form 1099-K and Form 1099-NEC. In 2025, enforcement efforts focus on accurate income reporting. Many gig workers are newly exposed to self-employment tax, and they’re not sure exactly how they’re supposed to be doing it, especially paying estimated tax. Understanding current gig economy tax rules is essential to avoid penalties, and that includes making estimated tax payments. If you need help doing taxes, or maybe you just got some love letters and you’re like, I have no idea what the IRS is talking about, give our office a call, 615-367-0819. 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 the home office deduction can still apply to self-employed taxpayers who use a space exclusively and regularly for business. She also reminds listeners to document details like square footage and household expenses. 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. Home office deduction remains available for self-employed who work part-time from their home exclusively and regularly for business. With remote or hybrid working becoming more common, many taxpayers are seeking clarification on how this works. Well, basically what you have to make sure is, A, you’re working from home for the benefit of the company you’re doing it for. If you’re self-employed, well it’s for your own self. Documenting the essential parts of square footage, utilities, how involved the landscape and cleaning services are. 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 difference between Section 179 and bonus depreciation when writing off business equipment. She notes that the best choice can depend on your situation and encourages taxpayers to understand how the percentages affect them. 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. Section 179: it’s a depreciation, it’s a bonus depreciation concept, but you have two things. You have Section 179 and you have bonus depreciation, and sometimes you need to figure out which one is going to be better for you. Bonus depreciation rate, 40%, decreasing over the years. Now it’s 100% again. And then you have Section 179, which is 100, but you need to figure out sometimes bonus is better than Section 179 and sometimes Section 179 is better than bonus. You need to understand the different percentages and how that’s going to affect you. If you need help, just check us on the web, 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 why inherited property can receive a step-up in basis, which may reduce future taxes. She cautions that quitclaiming property to children early can be a poor tax decision and mentions the Medicare or Medicaid look-back rules. 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. Step-up in basis for inherited properties: seems to be a misconception out there of how this works. Because a lot of times I talk to someone and they’re like, oh no, I quitclaim my property to my children, so I knew they would get it. That is not a good tax decision. It may be a mental or physical or some other kind of decision, but you know, there’s a five-year look back from Medicare or Medicaid. Therefore, unless it’s gonna be something that happens after that, you really just want to let them inherit. And you know that also applies if a husband and wife own joint property, half of them dies, the other half can get a step-up. Need help? Call me. 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 the adoption tax credit can still help reduce taxes, even if it is not fully refundable. She notes it can carry forward up to five years and stresses having proper documentation and a Social Security number for the child. 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. Adoption tax credit is in play, and I always think it’s pretty awesome. My parents had eight children, so I don’t think adoption was ever on the table, but I have a number of clients that have adopted children. And there’s also a credit that you can get, and it can be carried forward up to five years. It may not all be refundable, in fact, very little is it now, but it is still something that can go towards paying your taxes. So if you have adopted a child, then you might want to think about making sure that you’ve gotten all the documentation and you must have a Social Security number for that child. Otherwise, we are not able to report them on the tax return. If you need help with taxes, check us out, 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 W-2 and 1099 deadlines generally fall at the end of January, unless an extension is requested. She recommends contacting payers promptly and making a list of every employer and company so you do not miss forms and have to amend later. 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 IRS has put some new deadlines for filing W-2s and 1099s, and again, those deadlines should have already passed. January 31st would have been the last day they should have given you an email, unless they file for an extension and they should have notified you of that. If you have not received your W-2, 1099, 1099-K, 1099-B, 1099-Rs, and all the other ones, then you need to make sure you’re contacting the companies. Do make a list, because sometimes you forget you work for somebody and you have two W-2s, not just one. Then you have to amend the return, which takes longer. You need help? All you have to do is check us out on the web, 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 encourages taxpayers to pause before filing and make sure they have considered available deductions. She also mentions planning ahead for an extra $1,000 charity amount in 2026 that can be taken above the line. 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 are now ready to prepare your taxes. You are doing everything you can to prepare your taxes, and now you’re ready to move forward. And this is the time when you need to think about what do I need to understand? Have I taken all of my tax deductions? Maybe you can’t itemize, meaning there’s not a lot of room for deductions, right? Maybe you have the ability to start putting some money into charity. Well remember, in 2026 we have that extra thousand dollars this year that will be coming in. So sometime during this year you might want to set aside a thousand dollars for charity so you can get that above the line. So 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 explains what an enrolled agent is and why that credential matters for tax preparation and IRS representation. She also clarifies when you may want a CPA for financial statement work. 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. I am Dr. Friday, an enrolled agent licensed by the Internal Revenue Service to do taxes and representation. If you’re looking for someone to do your taxes, make sure they are enrolled agents. We are the only tax person that is licensed by the IRS. We have been tested by the IRS. This is what we do. We do taxes. If you’re looking for someone to audit your financial statements, to do a compilation, go to a CPA. But there are awesome CPAs too. Don’t want to knock them, but there’s a lot of tax preparers. Those are people that just prepare taxes. They’re not gonna help you with tax audits though. They’ll throw numbers in the return. You need help? You need to check us on the web, 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 highlights areas the IRS tends to prioritize for enforcement, including higher-income taxpayers and complex pass-through entities. She also notes increased attention on digital assets and offshore holdings, and stresses good documentation. 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 IRS enforcement priorities for 2021: the IRS expanding enforcement in several key areas. Higher income taxpayers, not a surprise, they always like them. Large pass-through entities, that would be like 1065s, 1120-S’s, complex partnerships facing heightened scrutiny. Again, 1065s usually are one of the areas that they like to audit, prioritizing audits related to digital assets and offshore holdings. This is all those kind of things. You want to make sure you have good documentation. You’re not in trouble if you’re doing these things. All you need to do is make sure you document right. You need help with taxes? 615-367-0819. 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 more W-2s and 1099s may be delivered electronically, which can surprise people waiting for mail. She recommends updating your email with employers and payers so you receive your tax documents. 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. So you’re sitting there thinking, I haven’t received my W-2, I haven’t received my 1099s. It’s halfway through February almost, and we do not have our documents, so I can’t do my taxes. Well beginning in twenty-five, employers and payers face extended rules of electronically issuing W-2s and 1099s. They do have the ability to just file them electronically to you, making you print out those forms. So if you have not updated your email, not just your address, but your email with an old employer or someone else, then you need to contact them because it could be your responsibility to get that form. If you want to check out more about us, 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 shares a positive IRS update: some notices can now be handled through a digital correspondence portal. She explains how uploading your response can reduce mail delays and help the IRS reply faster. 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. IRS digital correspondence update in 2025: this is actually a positive. Just like everything else in the world, we’re getting more AI and getting more computerized, and the IRS is finally catching up to this. There is a portal now that you can use to upload your communication for a number of different IRS letters that you might receive. So if you’ve received a CP504B for your business, you can go on there and you can upload your correspondence, which you don’t have to worry about snail mail, which means it should get responded to faster. If you need help with any of your IRS issues, call me, 615-367-0819. 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 IRS relief options may be available when taxpayers face hardship, disasters, or serious processing delays. She recommends documenting issues and getting help when resolving a case with the IRS becomes difficult. 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. IRS protocol updates: IRS relief options in 2025 may include expanded criteria for taxpayers impacted by economic hardship, natural disasters, or just delay in IRS processing. Keep in mind the IRS is basically closed for almost two to three months, and even now it’s difficult to get information. Now they will not say if you can’t reach someone on the phone that that’s a good reason for hardship, but you could put together a decent case of explaining how many times you called, how many times you got misinformation, or maybe no information because the person answering the phone doesn’t know. You need help with that? 615-367-0819. 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 the IRS may send letters asking you to verify your identity after a return is filed. She warns that ignoring these notices can delay processing and prevent refunds from being released. 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. And yes, the IRS is expanding. In fact, I can probably say five, maybe even eight of my people got love letters saying something like, you need to verify your information. A tax return was filed, but we need to confirm it is you who filed it. This is the kind of information you’re getting. Those are not fraudulent letters. And if you have not responded, they will not process that tax return, which means if you filed it, you get a letter and you don’t respond to them, you’ll never get the refund, or you’ll not get proof that it was received on time. You need to respond, and if you need help, go to our website, which is 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 a new IRS form, 1099-DA, that begins in 2025 for digital assets. She notes it will work much like a 1099-B and makes it easier for the IRS to track crypto activity. 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 IRS is significantly expanding oversight of digital assets through the rollout of a form called a 1099-DA. All of my crypto people, all of my people into virtual currency need to listen. 1099-DA is new and it begins in 2025. This form will functionally simulate the 1099-B for stock trades, but guess what? It’s going to be showing all that for cryptocurrency and digital assets. If you do not have this or understand what this is, you need to talk to us because this is new and they’re gonna know where your money is. 615-367-0819. 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 why 1099-K reporting matters for people selling online or earning through apps. She warns that ignoring these forms can lead to IRS notices because the IRS receives the same information. 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. Making sure that you are paying taxes on all the income you earn. 1099-K thresholds have gone up. So they originally planned for $600, then they went up to $5,000. $5,000 isn’t much in a year if you’re selling items on the internet or you’re doing a small business through the internet. This is merchant fees. 1099-K is, if you’re an Uber driver, you get a 1099-K. If you don’t understand and you’re getting these forms, or you’re ignoring them thinking, well, no one knows about them, guess what? The IRS does. I’ve had a number of people come in my office that have prepared their own taxes but did not report that. Guess what? They now are reporting it. 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 IRS modernization efforts like expanded e-filing and faster processing. She points out that it can still be difficult to reach an IRS agent, and that representation can help when you need answers. 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 comes from the IRS. The IRS continues a multi-year modernization effort and expands electronic filing capacities and digital communication tools. In 2025, taxpayers benefited from the faster processing speeds. I’m gonna kinda stop right there, because we all live in the real world. You can’t reach an agent on the phone, and you have a difficult time confirming if something’s been e-filed, where the money is actually at. They may be able to get it into the system faster, they still need to expand the telephone system. So if you need help and you need help contacting the IRS, as an enrolled agent I can represent you. All you have to do is call 615-367-0819. 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 the higher estate and gift tax exclusion continues and rises with inflation. She shares why this helps families plan wealth transfers and when you may need help with an estate tax return. 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. Because of the OBBA permanent extension, the higher estate and gift tax exclusion continues to rise annually with inflation. In 2025, the exemption reaches its highest level ever, providing substantial protection for family wealth and transfers that money onto the beneficiaries. It helps us plan, finalize the valuations due to certain favorable tax environments, and makes it easier for surviving spouses and children and married couples. Anybody that has an estate is gonna benefit from these higher rates, and it also keeps the government out of our pocket, which is what we’ve done after working so hard to build up these assets. You need help with an estate tax return? Just call our office. 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 why the premium tax credit through the Marketplace can be confusing and how it is based on your taxable income. She warns that income changes during the year can create a large repayment if you do not update the Marketplace. 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. And personally, this is one of the most confusing tax things we have. It’s the premium tax credit. It has to do with the Marketplace, and how much money you’re paying for your insurance and how much money you’re actually earning. Remember the Marketplace bases this all on your taxable income, and the problem is sometimes people don’t know how much money they’re making. They sell something, they get a second job, they increase their income, and don’t tell the Marketplace. And guess what? I had a couple last year that had to pay $21,000 back, another one that paid $16,000, and another one that had to pay. That’s a lot of money. Make sure you’re keeping up with these taxes with the Marketplace. 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 employer-provided commuting benefits like transit passes and workplace parking can be tax-free. She notes that inflation adjustments may raise the monthly limits and that small businesses can use these perks to help employees. 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. Qualified transportation fringe benefits, including mass transit passes and workplace parking allowances, continue to offer tax-free benefits to employees when offered by an employer. For 2025, inflation adjustments may increase monthly limits, providing greater tax savings for commuters. Employers offer these benefits mostly to upgrade the payroll system and help benefit their employees. This is a great way. If you’re a small business owner and people have to pay for parking or they have to pay to come in and they’re willing to use transit, you can give them those passes for nothing, and that actually increases their payroll. If you need help, give us a call, 615-367-0819. 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 the Social Security wage base keeps rising and can increase payroll taxes for many workers. She also notes that Medicare tax stays uncapped, so higher earners should plan for it. 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. Social Security wage base continues to rise due to the national average wage income inflation, increasing the amount we have to pay. So as employees, we pay 6.2% in Social Security tax. As employers, we pay 6.2% in Social Security tax. Higher wage earners will eventually threshold out. It’s around $200,000 this year. And then after that, you’ll still continue to pay your Medicare, but it will continue to go up. The remaining Medicare tax will stay uncapped, which means you will always be paying your Medicare tax. Again, something you should be working and planning on. If you’re in the higher income, you may be able to maximize some other taxes. If you need help, give me a call. 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 long-term capital gains rates still generally fall into the 0%, 15%, and 20% brackets. She also reminds higher earners to factor in the 3.8% net investment income tax when planning a sale. 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. Long-term capital gains structure remains intact due to the one big beautiful bill, and those three rates are 0%, 15%, and 20%. But I do want to throw in there, there is a 3.8% net investment income tax that came with Obama, and that is still also in play, which means that those rates of 0%, 15%, and 20% most of the time go 0%, 15%, 18.8%, and 23.8%. We really do not have a 20% capital gains. If you’re selling, you need to understand taxes because if you don’t, you’re gonna pay more money or be surprised when tax day comes. You need help? Check us out, 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 closes out January by reminding listeners that tax season is underway. She shares a simple system for gathering W-2s and 1099-Rs and using SmartVault to speed up preparation. 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. And the last one for the month of January, which means we are fully into tax season. If you haven’t, you should be receiving your final W-2s and your 1099-Rs. You should have an envelope on your kitchen table, or someplace where you’ve written all the forms you need. So if you prepare your own taxes, or you’re coming to us or some other tax person, you’ve got everything organized. And if you’re coming to us, remember we have the SmartVault. So you should be uploading those documents so that we can get your taxes done as fast as possible. And if you have no idea what I’m talking about, you need to call our office: 615-367-0819. 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 why knowing your earned income and investment numbers matters for tax planning. She shares how tracking those numbers can help maximize credits and avoid unpleasant surprises later. 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. Maximizing your earned income tax credit. Thresholds help taxpayers maximize the value they get under the tax law. Understanding your tax numbers: so often people are like, I don’t know how much my earned income is. I don’t know how much I’ve made in investments. You need to at least keep those numbers somewhat in your head. I get it, none of us know exactly, especially as self-employed people. Sometimes that’s a moving target, right? But you do need to know if you’re going to do any kind of tax planning, not just throw numbers on a tax return and hope you don’t owe money, but actually plan. Because sometimes paying taxes today will be lower than paying them later, with penalties. 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 explains how marriage and divorce affect your taxes, especially filing status. She clarifies that a divorce at any point in the year counts for the entire year, which can create surprises. 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 know, when life happens, sometimes people get married, sometimes people get divorced, sometimes you have children, sometimes the children grow up and move out. All these things are life-affecting and mostly tax-affecting events. So if you are divorcing, I have to reiterate what people I thought knew but I have found out don’t: it doesn’t go into effect the day you divorce, it goes into effect the year you divorce. So if you divorce any day today or December 31st, you are considered divorced the entire year. It’s not a half-year thing, it’s not a quarter-year thing. So that means if you’ve been claiming married, you may end up with a huge tax problem. If you need help, call me. 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 the earned income tax credit amount hasn't changed much, but the IRS audits these claims frequently. She stresses the importance of documenting where a qualifying child actually lives. 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 earned income tax credit amount for 2025 hasn’t really changed. It has remained the same. One thing you do need to know: the IRS has specifically put out that it remains the most frequently audited part of a tax return. One of the reasons that’s happening is because a lot of times people are not keeping record of the residency of where that child is living. If that child is not living with you for more than six months and one day a year, and you’re not the primary custodian, and you’re claiming your girlfriend’s child or something else, you may be breaking the 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 why she is a strong advocate for health savings accounts (HSAs), even though she doesn't sell insurance. She describes how HSAs can grow and help cover medical costs in retirement. 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. I do not sell insurance. I’m putting that at the beginning of this because I am a huge advocate for health savings accounts. HSA contributions increase with inflation, and if you happen to be blessed where you don’t need to use it, you don’t have to. You don’t lose it. It just grows and grows. It’s another way of increasing your retirement. And you’ll need it, let’s be honest. Statistically, you’re going to have to have 200,000 to 400,000 in retirement just for medical expenses. Imagine if you had that sitting in your HSA, so you could take your other retirement and live off it or pass it down, whatever works for you. If you need help, check out the video. Check us on the web, 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 encourages taxpayers to think beyond filing their 2025 return and start planning for 2026. She highlights common events like conversions, real estate sales, and IRA moves that can change your tax bill. 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. Preparing taxes is what I do. I’m Dr. Friday, an enrolled agent, licensed by the Internal Revenue Service to do taxes and representation. When you’re doing your taxes, right now it’s tax time, guys, and all you’re thinking about is preparing your 2025 taxes. And you’re not thinking about what do I need to be looking towards in 2026? When you’re working on your ’25s, put a thought in your mind about what might be happening. Do you want to do a conversion? Are you selling real estate? Are you taking money out of an IRA? Are you doing a bad thing, a backdoor IRA? All these things affect your taxes, and if you know in advance what the tax bill is, you can plan for it. If you need help, go to the web 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 retirement plan contribution limits keep increasing with inflation and highlights catch-up contribution rules. She encourages taxpayers to take advantage of these options as they approach retirement. 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. Retirement plan contribution limitations for 401(k)s, 403(b)s, and 457 plans continue to rise with inflation. The SECURE Act 2.0 enhancements remain in effect, expanding those catch-up contributions for all of us that are over the age of 55, and in some cases, some of the catch-ups that qualify for over 50. Then you can actually start putting more money aside. They understand a lot of times when you’re raising your family and doing things, you don’t have the ability to maximize retirement. But sooner or later we will have to retire. So putting your money into a retirement plan is a good idea. If you need help with taxes, 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 how inflation and income changes can affect tax brackets and credit eligibility. She warns that raises can sometimes push taxpayers out of credits like EITC or the child tax credit without planning. 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. Taxpayers should evaluate how inflation changes thresholds, especially for credits like the child tax credit and earned income tax credit. High inflation years can meaningfully increase brackets, and reduce effective tax rates. What I’m basically saying is everyone’s making more money. But when you’re making more money and they’re not adjusting those thresholds, you could be getting yourself outside of earned income credit because you made too much money. You may not qualify for the child tax credit because you’ve made too much money, even though all those raises help you feed your family and do good things. It doesn’t always help you when it comes to taxes. You need to plan. If you need help, 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 why permanent tax provisions make long-term planning easier than laws that constantly expire. She also clarifies how enrolled agents help taxpayers plan, prepare, and handle IRS issues. 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. One of the things we all like about the one big beautiful bill is, plain and simple, it gives us the tools to do long-term planning. Under the last couple passes of tax law, there’s been four years, five years, and then they expire. A lot of expiring, and that leads to a difficult time for us as tax people and also just as taxpayers to sit down and say, hey, in the next five years I’m going to do this, this, and this. If you don’t have that kind of window, it’s difficult to do good planning. And remember, tax preparers are preparers. Enrolled agents help you plan as well as prepare your taxes, and also represent you if you need help. 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 the cash charitable deduction limit is now permanent at 60% of income. She also discusses how the higher standard deduction makes itemizing harder and why bunching may still help some taxpayers. 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. Cash contributions were 50%, went up to 60%, and now that is permanent under the one big beautiful bill. The years of having 100% of our charitable deductions deductible probably isn’t going to be on the table for a long time, especially with the standard deduction going up every year. It’s harder and harder for individuals to actually itemize under the current tax law unless you have a very healthy mortgage, or unless you do bunching. Bunching is basically taking your sales tax, adding it up, buying bigger things in the year, and you also pay your property taxes. Remember here, we don’t have a state income tax. If you need help, just 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.