Dr. Friday Radio Show – June 20, 2020 - a podcast by Dr. Friday Tax & Financial Firm, Inc.

Welcome to the Dr. Friday show! In this episode, Dr. Friday talks all about taxes, tax representation, and the following questions:

• Is A 401K Or Roth IRA better?


• Why Have I Not Received My Stimulus Check?


• How To Do Taxes As A Small Business Owner


• How Much Of Social Security Is Taxed?


• Do You Need Help With Tax Preparation?


• Will The Stimulus Check Be Taxed?


• Get Help With QuickBooks


• Do You Need Help With Tax Representation?

And so much more!
Transcript
Announcer 0:01
No, no, no, she's not a medical doctor, but she can share cure your problems or your financial woes. She's the how-to girl. It's the Dr. Friday show. If you have a question for Dr. Friday, call her now at 615-737-9986. So here’s your host financial counselor and tax consultant, Dr. Friday.

Dr. Friday 0:30
Good morning, this is Dr. Friday and the doctor is in the house and we are talking about my favorite subject which is taxes and that day is coming quickly. Have we ever thought that we'd be saying July 15 as our filing date? I can guarantee you, no, that was never something that I wanted to extend as far as I was concerned. I think anytime we do we just extend the whole thing but it has happened. We are working on it and so if you need you might want to go ahead and make sure your tax appointment if you're using all services or anyone else's, I'm assuming that they've opened their calendars up again. So just make sure that you have an appointment to get your taxes completed, make sure they are done or an extension is filed. Again, extensions do not extend the amount of money that you owe, but they do extend the time that you can file the taxes, which sometimes is necessary, especially if we're working with multiple entities and having to wait for other tax returns to be completed before we can complete your individual tax return. The Internal Revenue Service has come out with for any of you and a lot of people I know that we have about 200 individuals that receive PPP money through our firm, our systems I should say we don't offer PPP money. But one of the questions that we've been going back with is, is PPP money the forgiveness? So the IRS has basically answered the question in public guidance saying to prevent double taxation, the expenses are not deductible. So if you get forgiveness for the PPP loan, whatever money that was forgiven, which most likely is going to be payroll, rent, and utilities, that you would then have to claim that you will not be able to claim those expenses. So it's going to be a little interesting with individuals that are sole proprietors.

Dr. Friday 2:16
As you know, Schedule C individuals are able to get a percentage that is now based on line 31 of your 2019. schedule C. So the problem is, let's say you get two and a half percent of that and you pay yourself now you're going to have to pick that up as income because you did not pay somebody else that money, you paid it directly to yourself. I will tell you that there are many firms that have pledged to reverse this with Congress and we are waiting to see if that is going to be reversed. Otherwise, Schedule C individuals that did not pay other individuals through forms of payroll or rent. Now if you paid rent or utilities, you won't be able to claim those but your actual payroll which is always based on total profits will have to somehow be reversed and that's going to be the interesting part of that conversation. Now I have many people that are facing a dilemma and you may or may not be but they were unemployed. So they went to collect unemployment and then they also a Schedule C individual went to collect PPP money. So the question is going to come back as if you're paying yourself a full wage, are you actually allowed to collect unemployment? So that's something we're working on as well. My answer immediately based on what the state is saying, if you received PPP m

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