Dr. Friday Radio Show – September 26, 2020 - a podcast by Dr. Friday Tax & Financial Firm, Inc.

Another episode of the Dr. Friday show is here! In this show, Dr. Friday talks about the new tax updates and deadlines, including the following topic:

• Will I Still Get My Stimulus Check?


• All About The Cares Act


• The Tennessee Business Relief Program


• Is The Stimulus Money Taxable?


• PPP Money & Forgiveness


• Why You Need Help With Tax Representation


• EIDL Information

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

Dr. Friday 0:31
All righty, we are live here. It's a wonderful Saturday, whether it's fairly nice, I guess you'd say fall is coming in, and tax season is upon us. October 15 is a major deadline for all of us that like to procrastinate or just the reason we like to extend it. So we can actually put more money into our SEPs or our 401 Ks, which can be extended to make payments if you're self-employed. So there's a couple of strategies we need to think about. We all know, it seems like I'm always talking a year behind, obviously, October 15 is for everyone that hasn't filed an extension, but basically, we're talking 2019. Meanwhile, 2020 is going to be probably one of the most unusual tax seasons I've seen in 25 years, which is how long I've been doing taxes. With the Cares Act, and all those different things happening, there's been some changes, something I haven't talked a lot about is during the Cares Act, they authorized an above the line deduction of $300 to donations. So you do not have to itemize to take $300 of donation. So you'll take your standard deduction plus 300. So if you haven't given to charity this year, because you're always like, "Well, it doesn't change, I can't give enough to make a difference as far as itemizing." It's part of the conversation. If it's not a tax deduction, maybe I don't do anything with it. Well, it comes down to it, it's going to be this simple, it's going to be that you can give up to $300. Do not itemize, furthermore, increase your charitable contributions or monetary gifts up in 2020. So you might want to think about giving, but the $300 is going to be above the line. So that is a kind of an important thing that happened during the Cares Act.

Dr. Friday 2:24
Again, it's a 2020 situation, 90% of my clients give more than $300 in a year no matter what, but if it's a year in which you haven't, and I realized, for many people, this has been a very difficult year. Keep in mind that sometimes doing this as far as giving charity, this is going to be an additional $300. So if you're at the 10% tax bracket, it will save you $30 right 10% of 300 if you read the 15 or 2020 will save you $60. So, depending on your tax bracket, it's going to put a few more dollars in your pocket. Small businesses are facing extremely unusual days, right? And we need to probably do more tax strategizing than we ever have. PPP money is coming in. I do want to make sure we talk about the Tennessee business Relief Program. There are quite a few people that I keep getting information on that there isn't anything going that direction. I mean, they did not know it existed. They're getting some letters, and they're not really sure. So keep in mind, you have to have had a 25% drop in income and you have to be within certain types of industries.

Dr. Friday 3:39
Most of them are tourism or restaurants, florists, and those kinds of the ones that had direct, most importantly, some pretty direct losses because income had dropped drastically during the lockdown and everything else. So many of them had some additional hardships compared to my business. I was fortunate, give or take a couple of weeks, we were able to cont

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