Dr. Friday Tax Tips

In this episode, Dr. Friday explains why tax planning for next year should start now. Learn how adjusting withholdings and contributions early can save you money and prevent 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. Year-end tax planning—now, you might be thinking, “Why is she talking about this at the beginning of March? We haven’t even finished our 2024 tax return!” Because now is exactly when you should be thinking about it. If you need to make a change—adjust federal withholdings, contribute more to your 401(k), or decide whether to save or withdraw money—this is the time to plan. Starting early gives you a full year to make adjustments. If you wait six or seven months, you’ll only have a few months to fix things, and chances are you’ll still owe taxes. Now’s the time to think ahead to 2025 while filing your 2024 return. 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.

In this episode, Dr. Friday explains how you can qualify for up to $7,500 in tax credits when purchasing a new electric vehicle—or $4,000 for a used one. Learn the key requirements and how to claim your credit. Transcript: G’day. I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment. Qualified plug-in electric car credit. You may qualify for a credit of up to $7,500 under IRS code 30D if you buy a new electric vehicle. Or now, they even have one for $4,000 if you buy a used EV. Now remember, it has to be used primarily in the United States, and it has to be for your own use—not for resale. Also, you’ll need the VIN number and the date of purchase to ensure it’s a qualified vehicle. But if you’re someone who’s been considering an all-electric car, this could be a great tax deduction. If you need help with this or any other tax questions, 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.

In this episode, Dr. Friday breaks down the tax implications of cryptocurrency. Learn why tracking transactions is crucial and how the IRS treats crypto like any other investment. 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. Cryptocurrency. Oh boy, over Christmas, my sister-in-law got big into crypto. Nothing wrong with that—just not sure she totally understands the tax implications. Remember, crypto is just like any other investment or stock. They’re going to tax you, and tracking it is key. So often, my crypto people think, “Okay, I take U.S. dollars, turn it into Bitcoin, then from Bitcoin, I went to Ethereum or whatever, and now there’s no paper trail.” That’s not true. If you ever bring it back to U.S. currency, all of those transactions become taxable. You’re not hiding, and if you want to sleep well at night, you better track it—that’s all I can say. If you need help, 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.

In this episode, Dr. Friday explains how managing the timing of your income can impact your taxes. Learn how accelerating or deferring income can be a strategic tax move, especially for self-employed individuals. 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. Managing receipts of income. When considering how to best manage your taxes, keep in mind that deductions are only part of the story. Income is also a major factor. For example, if you expect to have a higher tax break next year, you may want to think about accelerating income in your current year. That really only works, to be quite honest, when we’re talking about self-employed individuals. Sometimes, you can have someone say, “Hey, can you send me a check in December so I can pick it up for next year instead of having it all come in the next year?” That is doable sometimes. Most of the time, we don’t have control over what income comes in. If you need help, 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.

In this episode, Dr. Friday discusses how small business owners can lower their taxable income by paying their children for legitimate work. Learn how this strategy can benefit your family’s finances. 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. Lower your taxable income by shifting income to other family members. That works great, especially for self-employed or small business owners. You may have children who are 14, 15, 16, or 17, who are really working for you. Instead of just paying household expenses through yourself, think about paying those kids. It’s a great lesson for them and a smart tax move for you. Also, consider calculating the value of benefits for educational deductions. Another tip: if you put something on a credit card, according to tax law, that’s a deduction—not when you pay it, but when you charge it. If you need help and want to talk to someone, 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.

In this episode, Dr. Friday explains the tax consequences of selling your home, including home exclusions, rental conversions, and potential deductions. 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. Selling your home. So nowadays, it’s not quite as simple. Most people live in their home. As long as you’ve lived in it two out of the last five years, you can qualify for a home exclusion. But a lot of times, people will turn those homes into rentals, or they’ll rent part of the house out and live in the other. And when they’re doing that, they’re appreciating or turning that part of the home into an investment. And in doing so, there can be pros and cons. One of the pros is that we can’t take a loss if you happen to sell your primary home at a negative dollar amount. But if it’s a business, if it’s a rental, we can take that loss. So it’s important to understand if you’re making money or losing money. 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.

In this episode, Dr. Friday breaks down the home office deduction. Find out if you qualify, what expenses you can deduct, and why W-2 employees working from home may not be eligible. 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 space. So again, I want to say if you are a W-2 individual and you’re working from home, that is a benefit. It is not a tax deduction. I know you’re going to say that you’re spending your own electricity and you’re having to take up space, and you have heating and air conditioning. The IRS has pretty much come back and said, yeah, but you’re not putting wear and tear on your car, and you’re not paying for any more petrol. So it’s a give or take on that one. But if you are self-employed or an individual that has the ability, a home office is a great deduction—if you know how to account for it. So make sure, if you need help, 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.

In this episode, Dr. Friday discusses the tax implications of divorce. Learn how to navigate financial pitfalls, minimize taxes, and avoid unexpected liabilities before finalizing your divorce. 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. Taxes and divorce. I can’t tell you how many meetings I take on this particular subject. Sometimes I actually am fortunate enough to have both people getting divorced in the office, and we’re really able to do serious tax planning because there are ways that you can save money when you’re divorcing, and there are ways that you can make that other partner pay big if that is your dream. But either way it looks, you do need to consider—if you’re in the process of getting divorced or getting married—sit down. Talk about the finances. Talk about the taxes. Again, how many people even ask the person they’re marrying if they’re up to date on their tax returns? If not, you could end up paying that person’s tax bill. 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.

In this episode, Dr. Friday shares a tax-savvy way for parents to help their working teens save for the future. Learn how contributing to a traditional or Roth IRA can provide long-term financial benefits and tax advantages. 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 want to put the caveat first that I am not a financial planner. I look for ways to save tax dollars. But one way is, let’s say you have a 15-year-old child that’s doing babysitting or working, and maybe they even work for your company as a partner in a partnership or sole proprietorship, and they’re making that $7,000 to $10,000. One thing they could do is open up a traditional IRA, and that $7,000 would be tax-deferred, or $8,000. And then the other side of that would be, let’s say they put it into a Roth. They would defer all of that growth for the next, what, 60 years? That sounds like a wonderful tax plan for your kids. 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 phase-out thresholds for tax credits like child tax credits, adoption credits, and education deductions. She highlights how marriage can impact eligibility. 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. Some things have what we call a phase-out. For example, the child tax credit—it starts at about $200,000 for a single person and about $400,000 for a married couple. Adoption credit? Pretty much $252,000 for a single, and guess what? The same exact number for a married couple. So there’s the marriage penalty for you. Interest on education? $80,000 for a single, $165,000 for a married couple. You get where I’m going here. In most cases, the limit doubles for married couples, but not always. Educational savings bonds? Again, another marriage penalty. You need to understand these dollar amounts—otherwise, you won’t be able to take the tax credit. Need help? 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 depreciation rules, including accelerated depreciation and recapture. She highlights mandatory depreciation for rental property owners. 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 think about depreciation, especially for business owners or renters. There are a lot of different things that can be depreciated. And the thing is, do you want to accelerate? We still have accelerated depreciation. You need to understand how that will affect you in the long run for recapture of depreciation. Also, keep in mind that you don’t have a choice with rental properties—you have to depreciate. It is not an “Oh, I might want to or not.” Tax law says it’s a mandate. So understanding what you have to do to stay in compliance, how you might be able to reduce it now for less recapture later—these are important things to know. Understanding taxes is what I do, so call me if you need help. 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 how marriage can impact your taxes, including penalties on capital gains, child tax credits, and educational savings. She highlights why understanding these tax rules is important before making financial decisions. 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 Valentine’s Day! And for some of you, maybe even an anniversary. That being said, let’s think a little bit about getting married and how the tax law doesn’t necessarily reward individuals who are married. There are a lot of marriage penalties. Look at capital gains—if I’m single, I have $200,000. If I’m married, I only get $250,000. Also, keep in mind child tax credits if your income is too high. So when you’re thinking about Valentine’s, your sweetheart, and being smart about your money, consider what kind of tax advantage it may be to stay single or file as head of household. If you need help, 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 tax requirements for household employees, including the need to file a Schedule H and pay Social Security and Medicare taxes for workers earning over $2,700 per year. 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. Domestic helpers. Now, a lot of times people think that, well, they don’t really have to do much. Someone comes to my house, I’ll give them a 1099 at the end of the year and make a payment. But keep in mind, if you’re paying somebody basically as an employee and it’s over $2,700 per year, they really do need to file a Schedule H. Schedule H is where you report your household employees. You actually need to pay their Social Security and Medicare, just like an employer would. It’s important to understand—just because someone is working in your house, that’s still a job for them, and therefore, they are still your employee. If you don’t understand that or need help, give us a call at 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 clarifies that estimated tax payments are not optional but required to avoid penalties. She explains how failure to pay on time results in monthly penalties from the IRS. 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 estimated tax payments. So often people come in and think it’s some sort of voluntary thing that all of us are doing—as if we would voluntarily want to pay money before we had to pay it! That’s not the case. We don’t want to pay penalties. There is an exact penalty for failure to make estimated tax payments. So you make a choice: You can pay 0.5% every month that you forget to do it or choose not to, or you can pay it on time. I kind of like to get the IRS out of my bank as soon as possible, so I make my payments. But people make that choice. Just understand there’s a penalty for not doing it. Need help? 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 reminds taxpayers enrolled in the health care marketplace to obtain their 1095-A form. She also discusses the importance of the IRS-issued IPN number for certain individuals. 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. If you still participate in the health care marketplace, do not forget to get the 1095-A form—that is necessary for us to prepare your taxes. We so often have individuals that forget two major things. One, the 1095-A from the marketplace because you don’t really think about it since you have an insurance card or whatever, and it’s there. The other is the IPN number that the government will give to individuals who are already listed at risk. If you don’t have those, we can’t file your taxes, and they will be wrong. You need help? Give us a call at 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 the benefits of 529 savings plans, including the ability to contribute five years’ worth of gifting at once. She highlights how these funds can grow tax-free for future educational 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. A 529 plan. That is something that I find is great if you happen to have a fairly big family or some very nice grandparents. One of the laws that they’ve passed is that you can actually give up to five years’ worth of gifting into a 529 in one year. So, for example, if it’s $17,000—this year’s actually $18,000—but let’s say they want to give five years’ worth or $85,000. They could do it all at once, not worry about the gifting laws, and put it into that 529 to grow for later, for where your children are going to go to school. Very important. These funds can even be used for secondary or even preschool if necessary. 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 various education-related tax benefits, including student loan interest deductions, employee tuition assistance, and tax-free scholarships. She highlights income limits and how 529 plans can help families save for education. 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. Educational-related tax benefits. Let’s talk about student loan interest. If you make less than $90,000 as an individual, less than $185,000, you will be able to take up to $2,500 of interest. Employee tuition assistance—$5,200 is tax-deferred. If you have scholarships, some of that can be non-taxable and some can be used for tuition and fees. Make sure you’re maximizing these benefits, especially if you have kids in college. It’s expensive! So if you need help understanding what you can deduct and how a 529 plan can help, give us a call at 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 what qualifies as a legitimate business expense and highlights common misconceptions. She warns against claiming personal trips as business expenses without proper justification, as the IRS scrutinizes such deductions. 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 expenses. What really is a business expense? Probably the biggest thing that people think about for a trade or business is something that it takes for you to actually do your business. So I have sometimes people that will say they’re real estate agents, and then they say that they’ve taken four trips to other states or other countries to possibly look at real estate, but yet they don’t actually own or have even licenses in those states. Keep in mind, the government isn’t quite that gullible, right? So make sure that it’s a necessary expense, not just something you want to take as a family vacation. You need help? Give us a call at 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.

In this episode, Dr. Friday breaks down what counts as taxable income and clears up common misconceptions. She emphasizes the importance of reporting all income sources, including business earnings, rental income, interest, royalties, dividends, and alimony (if applicable under pre-2019 rules). Dr. Friday also warns against misinterpreting new tax laws regarding alimony. 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. What is income? I mean, what do we really have to report? What can we just say, “Ah, that’s not really income, so Uncle Sam does not need to know about it?” One would be, of course, the simple things—gross income from your business or W-2s. How about rental income, interest, royalties, dividends, and alimony if it happened before 2019? I’ve had a number of people come in after hearing that alimony is no longer taxable, so they stopped reporting it—even though they’ve been divorced for 20 years. This is a new law that only affects recent cases, so make sure you’re reporting all your income. 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.

The 1099 filing deadline has passed—did you file yours? Businesses must issue 1099-NEC, 1099-MISC, and 1099-INT forms for payments over $600. However, corporations with “Inc.” in their name are exempt. Ensure compliance to avoid IRS penalties. Need help? Call Dr. Friday! 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 1099 filing deadline has passed! Make sure you’ve sent out all required forms, including 1099-NEC, 1099-MISC, and 1099-INT. Businesses must issue 1099s for any payments over $600 to contractors or service providers. If you paid a corporation (one with “Inc.” in its name), they are usually exempt, but they must provide a W-9 form to confirm their status. If you haven’t filed your 1099s yet, get them done now! 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.

Nonprofits and 501(c)(3) organizations must file Form 990 annually to maintain tax-exempt status. If a nonprofit fails to file for three consecutive years, it will lose its exemption. The IRS provides tools to check compliance, so verify your standing today. Don’t risk losing your status—file on time! Need guidance? Call Dr. Friday. 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. If you work for a 501(c)(3) nonprofit, make sure you’re in compliance! The IRS requires nonprofits to file Form 990 every year. If you fail to file for three consecutive years, your organization will lose its tax-exempt status. You can check your standing on the IRS website by searching for your organization’s name under Tax Exempt Status. If you’re not listed or marked as non-compliant, you may need to take action. Need help? Call me today. 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.

If you or your child is in college, don’t miss out on valuable education tax credits! To qualify, you need Form 1098-T, which details tuition payments, scholarships, and grants. Additionally, if you have a 529 plan, make sure all distributions are properly reported. Education expenses like housing and meals may also be deductible. Need assistance? Call Dr. Friday at 615-367-0819. 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. When preparing your tax forms, don’t forget about college expenses! Many people qualify for education tax credits, but you’ll need Form 1098-T to claim them. This form shows how much tuition was paid, as well as grants and scholarships received. If you have a 529 plan, ensure you report the distributions correctly. Keep in mind that while tuition is covered, housing, food, and other education-related expenses may also be deductible. Need help? Give us a call at 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.

Tax season is in full swing! If you haven’t made your tax appointment yet, visit drfriday.com and schedule one today. Before filing, ensure you have all necessary documents, such as 1099-B forms (which may not arrive until late February). Filing without all your documents could lead to amended returns—a costly and time-consuming mistake. Stay organized and file correctly the first time! Need help? Call Dr. Friday at 615-367-0819. 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. We are busy working on taxes! If you haven’t scheduled your appointment yet, go to drfriday.com, click on the calendar, and book a time so we can help you. If you’re new to our services, give us a call at 615-367-0819, and let’s see how we can assist you. When preparing your taxes, don’t rush! Make sure you have all your documents, or you may end up needing to file an amended return. For example, 1099-B forms—which report investment income—often don’t arrive until late February. Filing without them could cause major issues. Be patient and make sure everything is in order before submitting your return. If you need help, call my firm today! 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.

Waiting for a 1099 form before reporting your income? That’s not how it works! The IRS requires you to report all earned income, regardless of whether you receive a 1099 or not. Even if someone pays you in cash or provides payments in another form, it’s still taxable. Audits can uncover unreported income, and the IRS can retroactively issue 1099s for past years. Stay compliant and report your income correctly. Need help? Call Dr. Friday at 615-367-0819. 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. If you are waiting to receive a 1099 before figuring out how much money you earned for the year, let me tell you—that’s not how it’s supposed to work. It doesn’t matter if you receive a 1099 or not. I’ve seen cases where people were audited, and after reviewing past records, the IRS went back three years and reissued 1099s. This caused major tax issues for those involved. Remember, tax law states that any money you earn must be reported unless it’s tax-free income. Whether you’re paid in cash, checks, or another form, it’s still taxable. Don’t risk an audit by underreporting! If you need help, call my office at 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.

Casualty loss deductions have changed significantly over the years. Previously, if your insurance didn’t fully cover a fire or other loss, you could deduct the remaining amount on your taxes. However, under current tax law, you can only claim casualty losses if they are related to a federally declared natural disaster. If you’ve been affected by a qualifying disaster, be sure to review your casualty loss eligibility, as it could mean tax savings for you. Need assistance? Contact Dr. Friday at 615-367-0819. 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. Casualty loss has changed a lot over the last few years. It used to be that if you had a fire in your house and your insurance company didn’t cover the full amount, you could write off the losses on your taxes. However, under current tax law, that is no longer allowed—unless the loss is due to a federally declared natural disaster. There are a few on record, so if you’ve been affected by storms or other disasters, be sure to check your eligibility for a tax deduction. You could be entitled to some tax savings. If you need help understanding this, just call my office at 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 discusses mortgage interest deductions for primary and secondary homes. Mortgages over $750,000 are only deductible for the first $750,000, especially if refinanced after 2017. Interest on second homes, like a camper or houseboat, also qualifies for deduction. Stay informed about limitations to avoid surprises during tax season. 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. Interest paid on a house. One of the things I think people need to remember is that in 2017, if you have a mortgage over $750,000 and you had it from that point, you can continue to take your interest. But let’s say you refinanced in 2019 or 2020, and you have a million-dollar mortgage. You cannot write off all of that interest, only up to $750,000. Now, you can also write off the interest on your second home. Maybe you have a house in Florida or a camper or a houseboat. Remember, those are considered second residences, and they are deductible for tax purposes. 615-367-0819. Looking forward to hearing from you. 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.

Self-employed individuals, including partners and S-corporation employees, can deduct 100% of their health insurance premiums above the line. This tax benefit reduces taxable income while encouraging health coverage. Dr. Friday explains how this deduction could save thousands annually and emphasizes the importance of understanding its application for tax savings. 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. If you’re self-employed, you may deduct 100% of your health insurance premiums above the line. And this could also go for individuals that are part of partnerships, limited liabilities, or employees’ share of an S-corporation. These are all considered self-employed for the purpose of tax law. So this could be a great thing if you are paying $4,000 or $5,000 a year in premiums, and this is an above-the-line tax deduction. This is a way of putting more money in your pocket while also making sure that you have health insurance. You need help? Just call our firm. The easiest way to do it is to pick up the phone, 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 the 2024 auto mileage rates: 67 cents per mile for business, 21 cents for medical, and 14 cents for charity. Business owners can benefit from these deductions but must maintain a mileage log. Employees with W-2s cannot claim mileage or home office deductions. With rising fuel and maintenance costs, tracking mileage accurately is more important than ever. 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. Auto expense. Now let’s first clarify: if you work for an employer that you have a W-2, you’re not deducting mileage. There’s no place, no 2106, no home office—that isn’t going to happen. But if you’re a sole proprietor or business owner, you will be. And it’s 67 cents a mile in 2024 for business, 21 for medical, and 14 for charity. These are huge numbers, especially for business owners. The cost of petrol and maintenance has gone up, and they’re accounting for that in these numbers. But you must have a mileage log to justify these deductions. 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 discusses the challenges of itemizing medical expenses on your tax return. To deduct medical costs, they must exceed 7.5% of your adjusted gross income. For example, with $100,000 in earnings, only expenses above $7,500 are deductible. Proper planning is essential to maximize savings in years with substantial medical costs. Take advantage of itemizing only when it benefits your financial situation. 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. Many times people will ask me about medical deductions, because when I talk about itemizing, I very rarely bring that up because of the fact that first you have to say, let’s say you earn $100,000. And if that’s the case, then you have $7,500 worth of exemption, right? So if you have a $10,000 bill that you’ve paid for medical and you’re thinking you can deduct that, you’re really only going to get $2,500 of it under that scenario. Itemizing medical is very hard, and making sure you maximize the year that you do have a lot of medical will be the only way you’re going to put more money in your pocket. 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.

The 2024 Child Tax Credit has reverted to $2,000 per child after the temporary increase under the American Rescue Plan in 2021. Children over 17 qualify for only $500. Dr. Friday highlights the importance of adjusting withholdings in January to avoid surprises when filing your tax return. These changes could significantly impact families relying on prior years’ expanded credits. 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. We all know the ARP, the American Rescue Plan that came in in 2021, temporarily expanded the tax credit, right? It was up to $3,000 and $3,600 depending on the age of the children. But in 2024, remember, that is only $2,000. And if they’re over the age of 17, it drops to $500. That can make a huge difference. If you’ve been using these other numbers and kind of calculating your withholding and now you’ve lost up to $1,600 on a child, that can make a difference on you owing taxes. Again, making sure now in January that you’re making these adjustments so you’re not going to feel the pain when the tax returns are being e-filed. 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.

The 2024 Adoption Tax Credit offers adoptive parents up to $16,810 as a dollar-for-dollar reduction of their tax liability. Unlike deductions, this credit directly lowers the taxes owed, provided expenses are documented. Ensure you have your adopted child’s Social Security number to claim this benefit and avoid filing delays. Dr. Friday emphasizes the importance of proper paperwork for a seamless filing process. 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 2024 adoption tax credit is $16,810. The tax credit is not a deduction that reduces your income for the purpose of determining tax liability. Rather, it’s a tax refund that is based on a dollar-for-dollar reduction of your tax liability. So it’s a credit, right? Simply put, an adoption credit in, and you will save $16,810 if you have spent that. You need to make sure you have a Social Security number for the child that you have adopted. We’ve had to file extensions more than once just to make sure we had the paperwork in line. You need help, 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.