March 25, 2025 • 47 mins
In this comprehensive episode, Mark Rothstein, aka Mr. Money, provides crucial insights on surviving job loss, understanding tax filing requirements, and finding the best places to park your cash. Learn about unemployment resources, tax credits, and financial survival tips in an uncertain economic landscape.
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Episode Transcript
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Unknown (00:00):
The Information and opinions presented are for
(00:01):
general information only, andare not intended to provide
specific advice orrecommendations for any
individual you should contactyour investment professional,
attorney, accountant or taxadvisor regarding your
individual situation. Theopinions of the presenter are
not necessarily those of eventtax wealth management. It's
subsidiaries, officers ordirectors. Mark Rothstein, aka
Mr. Money, is a financialadvisor and the owner of tri
star financial LLC and tri starIncome Tax Services LLC, Mr.
(00:23):
Money is a marketing name onlyand is not intended as anything
other than a marketing name forentertainment purposes.
Securities offered through a vanTex investment services,
Incorporated Member FINRA SIPCinvestment advisory services
offered through a van TexAdvisor Services, Incorporated
insurance services provided by avan Tex Insurance Agency,
Incorporated and avantexInsurance Services Incorporated
tax and accounting servicesoffered through Tristar, the
event, tax entities are underseparate ownership from any
(00:46):
other named
Mark Rothstein (00:47):
entity. Welcome everyone to the Mr. Money show.
It is Saturday, it is twoo'clock, and that means Mr.
Money is on your dial. Thatwould be one Oh, 7.5 dial, FM
and 580, AM. Dial here at K I dotalk radio studios, and it's
about money. Show is called Mr.Money, and money covers
(01:10):
everything. Income Taxes areconnected with money. Your
finances, obviously, are allabout money. How about dating
that's connected with money. Infact, how about your children?
That's connected with money?Certainly seems like a whole lot
of things are connected withmoney. And so many people say, I
(01:31):
want to be wealthy. I want tohave millions. Great. Are you
taking the actions needed tohave all that money? That's not
my question to you, to all mylisteners, my listeners actually
are taking action to make themoney. So I invite you to listen
for the next hour, Mr. Money isgoing to go through action steps
(01:52):
to make money. There's no classexcept the Mr. Money class that
I know of, at two o'clock everySaturday to help you with your
wealth. Really. Everything Italk about is connected with
wealth and what's going on inthe world to help you create
your wealth or protect yourwealth. And for those with very
(02:13):
little wealth, certainly we cangrow it. For those with a lot of
wealth, it's certainly all aboutprotecting it and allowing it to
grow. And if you're in themiddle somewhere, you will
absolutely learn steps to takeif you have questions in this
regard. 5805436, is the numberagain. 5805436, check in with
(02:35):
Mr. Money, and I thought I wouldtalk about what's been in the
news. So, so much, just so much.It would be President Trump. It
would be tariffs. It seems,according to President Trump, he
says tariffs will usher in a newera of American prosperity. But
(02:55):
here's the but the US economyisn't sharing the anticipatory
enthusiasm that the Presidentspoke of, that's right, he had a
nice joint session of Congressand the senators and lots of
people to talk about his lastfew weeks already as president.
But there's a variety ofindicators in recent weeks show
(03:17):
a slowdown in the first quartergrowth, which success? This is
especially bad time to add newtaxes when the economy is
uncertain. What am I talkingabout? Employers cut close to
222,000 jobs in January andFebruary of this year. That
(03:40):
doesn't sound like good news toMr. Money. It's a new report
from Career Services challengergray and Christmas found that
the worst start to a year forlayoffs since 2000 now and is
right now since 2009 bad start,222,000 jobs in January,
February lost. Many people sayit's Elon Musk, it's the
(04:04):
government. Cost cutting effortsat D, O, G, E, has played a
major role, and it has, in fact,more than a third of these
222,000 jobs lost happened inFebruary, and that's when a lot
of federal government positionswere dropped. So again, there's
canceled government contracts,there's trade war concerns with
(04:27):
the tariffs, there's privatebankruptcies from companies.
These are all factors that arecoming into this point being, is
this unemployment currentlystands at 4% but when they tally
it, next time we may see theunemployment rate going up that
more people are unemployed, thegovernment's D, O, G, E is just
(04:50):
starting out. It certainly isn'tfinished. So I'm here to say,
what do you do? Mr. Money wantsto address exactly what's going
on in. World, this tariffWhiplash has continued just this
last Thursday, President DonaldTrump said he would delay his
broad 25% tariffs on Canada andMexico for a month for any goods
(05:13):
that are covered by the existingUnited States, Mexico, Canada
agreement. So we're going backand forth, and let's not forget,
there will be some retaliation.Chinese Foreign Minister Wang Yi
accused the Trump administrationof trying to suppress his
country and vowed to retaliateagainst the arbitrary tariffs
(05:34):
targeting China. The highestlevel has been going on right
now against China push back fromBeijing will come, and Trump
imposed sweeping 10% tariffs onimports from China last month,
followed up this last week withan additional 10% Levy, bringing
the total to 20% so wedefinitely got some trade war
(05:56):
issues going on. And Mr. Moneythought I would address that and
say, so what do we the Americansdo? What do we the unemployed
do? Are there resources to helpyou if you lose your job? Yes,
Mr. Money wants to talk aboutthat right now, so you may be
freaking out because maybeyou're one of the 10s of 1000s
(06:19):
of federal employees whorecently received a pink slip.
We're hearing about it in thenews. So figuring out what to do
after losing your job can bedaunting. Mr. Money's lost a
job. I know the feeling ofdaunting. Of course, it's
daunting. First thing you needto do is make a short term plan.
It's like triage before youstart looking for the long term
(06:42):
fix, you need to stop thebleeding. So Mr. Money wants to
talk about what resources.Resources are available to you.
Help you pay your bills. Are youeligible for unemployment
assistance? Did you get offereda severance pay again? Once you
understand how to navigate theimmediate future, you can start
(07:03):
thinking about next steps. Iegetting the job. So I thought I
would just talk about that. HasMr. Money? Had people I work
with lose their job? Of course,and there are things to do. And
here's some of the things to doagain, what if you're
financially strapped afterlosing your job. I'm hoping
you're not strapped. If there'sone financial rule every
(07:26):
financial planner talks about isto have an emergency fund. Have
a contingency fund. How muchshould it be? Certified
financial planners like myself,Mr. Money, recommend to clients
to have three to six months ofmoney in the bank on the side,
in case you lose your job orsome unexpected expense comes
(07:47):
along again. How do you figurethe three to six months? Mr.
Money? It's whatever costs youper month to live, whatever your
normal bills are. I want you tohave that money to continue
normal life for three to sixmonths to help you get the next
job. But Mr. Money, I don't knowit's three months. Should it be
six months? It all depends onhow long you think it'll take
(08:08):
you to get a job. Some jobs maytake six months. So Mr. Money
recommends having an emergencyaccount to pay your bills for at
least six months. If you feelyou could get it within three
months, then a savings emergencyaccount that lasts three months
is the right one. But Mr. Money,how do I put money away for
emergencies? The best way is,when you get paid, earmark some
(08:29):
of it to go to a separatekeyword, separate bank account
that's just there to build upmoney. In case of an emergency,
by the way, I'm okay to have aseparate amount go into a
separate bank account for yourtravel account to go traveling a
year from now, or a separateamount to go to money put away
for your college, for yourchild. So I like multiple
(08:50):
accounts. I like you puttingaway money towards your future,
toward what your wishes are. Andcertainly an emergency fund is
one to have. So that's the startof it, if we haven't done that
or we haven't gotten enough putaway there, which is many times
the case. Of course, apply forunemployment benefits. Federal
(09:11):
workers can apply forunemployment compensation for
federal employees, UC, Fe, wecall it, and which is
administered by the states, andthe same as regular
unemployment. So again, if it'sa regular job you lost, you
still go to the state. If it's afederal worker you are, you
still go to the state. Again,that's where you're going. So
(09:34):
yes, you're going here to Idaho.The amount you receive will be
based on what were earnings andstate maximums. States also
determine the number of weeksthat they'll pay you. By the
way, unemployment compensationyou receive from wherever you
receive it. In this case, fromIdaho. It is taxable, yep, goes
(09:55):
on the federal tax return. Mr.Money, what? What's that? Idaho
amount? It can be anywhere from$72 per week up to $499 per
week. Again, as I mentioned,it's based on what you were
earning and on your statemaxims. State maxims here is 499
a week. Obviously you're goingto look for a new full time job
(10:19):
or start being gig work to getsome bucks. Be Mr. Or Mrs. Uber
or Lyft, that's a possibility.Or other gig or side hustles,
side work you can do and havethat help you hold on, maybe a
compliment your unemploymentuntil you get the job. Couple
websites, Mr. Money researchedindeed.com, for jobs the
(10:44):
ladders.com, USA jobs.gov,
monster.com, and careerbuilder.com, again, new, new,
new refreshing. New listings arecoming weekly or daily. So keep
checking it if you think youwon't be able to meet your rent
(11:06):
or mortgage obligations,consider state run rental
assistance programs or mortgageforbearance options you don't
think that happened recently inLA with the fires, everybody
called their mortgage lender andsaid, My house burned down, or
I've got smoke so I can't stayin the house any longer. May I
have a forbearance. Can we talkabout that mortgage payment or
(11:29):
that rent payment? So again, goto your lender. Have that talk
if you have trouble payingutilities. Let's say, because
you lost your job, manycompanies will work with you, or
you can apply for governmentassistance throughout your
state's Energy AssistanceProgram Office, and yes, they'll
be able to help you with coolingand heating bills, etc. And Mr.
(11:52):
Money, I can't make my studentloan payments. I can't pay my
child's tuition again, samething. Contact your loan
servicer on the student loanpayments or the child's
financial aid office immediatelywork out a plan, find out your
options again federal studentloans, you may be able to lower
(12:14):
the monthly amount by switchingplans or pausing payments
through deferment orforbearance. Bottom line is,
yes, you have to get on thephone and yes, you got to see
what your options are, but byall means, collect unemployment
immediately. You've paid intothe system your whole life. Mr.
Money says, take the money untilyou get the next one. So that's
(12:36):
first up again. But Mr. Money,will I lose my health insurance
coverage? That's a big deal. AmI going to lose that? The
Federal Employees HealthBenefits will be terminated. If
you're a federal employee, itwill be terminated on the last
day of the pay period youseparate from your job, but
(12:59):
you'll have an additional 30 daytemporary extension of your
coverage at no cost, accordingto the free government employee
resource site, federalpay.orgMr. Money, I'm not a federal
employee. That's fine. If you'vegot let go from a regular
company, they will offer youCobra, and that's where you get
(13:20):
to keep your existing healthinsurance. You have to pay for
it. Company won't any longer, orthey'll keep you covered for so
many days, and then you've gotto replace it and get insurance.
So you could possibly do the oneand extend the one at your
regular job you've left, andkeep that alive. It's expensive,
but keep that one alive, you cango to the plan that the state
(13:44):
may have, Obamacare, that healthcare plan we know about, that
one. Again, apply to it. I nolonger have my company health
insurance. May I please getObamacare? May I please get the
coverage from the government?They've got it, it's there. And
again, check to see if that's apossibility for you and what the
(14:06):
cost is there. Again, you weremisfired. Maybe you were
misconduct, or maybe you werefired for reasons. So again,
find out what your rights areonce you've addressed your most
immediate needs. Again,unemployment, get the cash flow
going, consider your rights andwhether you want to appeal your
firing. How about that as anidea? Appeal your firing? We
(14:30):
know recently with some fedemployees, they were let go and
then they were brought back.Some employees were offered the
option to say goodbye, and somedid, and some did not. Some were
forced to be put back on thepayroll. So again, what are your
rights in regard to being letgo? That's again, as a federal
employee, not sure you have thesame rights as a private company
(14:52):
you're working for. The Officeof Personal Management resources
can help you understand andnavigate this. So again. One, if
you're a federal employee, checkand see. By the way, you can
also go to your union. If you'rea federal employee and you have
a union, ask them, what nextrecourse do I have to be
(15:12):
rehired? Or what are all thebenefits I may have? By the way,
if you let go because of adisability, there's definitely
federal agencies there requiredto help you. So very important,
Mr. Money, I've done that. Myunemployment fall falling out. I
just don't have enough money.Well, can borrow from friends
(15:37):
family. That's a possibility,and put some interest rate with
it. And maybe you don't have toput an interest rate when you're
borrowing from friends orfamily. Maybe you're going to
start living off your creditcard. Bad idea says, Mr. Money,
those credit card charges at 21%I just eat you alive. Try not to
(15:59):
use your credit card for living.That's exactly why we have our
emergency contingency fund.That's why Mr. Money, I'll sell
some stock. Sure, if you've gotsome assets, you could sell,
whether it's your householdgoodies you wanted to sell and
have a garage sale, sure, maybeit's Finley, you have some
stocks or bonds or someinvestments, sure. Why not?
(16:22):
That'll help the cash flow.Maybe you've loaned money to
others. They never paid youback, so it's time for you to go
after them to pay you back. Soagain, very important. The very
last point I want to make onthis is so realize you do have
resources. There are steps totake if you lose your job, and
Mr. Money fears with what'sgoing on, there may be more let
(16:46):
gos of people in the government.They've said it's coming. In
fact, they rested recently.Department of Education is one
of the ones aimed at to reduceemployees and reduce that
department that'll be againpeople being let go. So last
part I want to mention is totake care of yourself. That's
(17:07):
very important while jugglingall this practical issues
related to the surprise firingor not surprise firing, make
sure to practice self care.Layoffs are hard period. They're
just simply hard. Losing yourjob is having a rug pulled out
from under you. I get it. I getit. And for many federal workers
(17:28):
right now, it can feel like theentire floor simply disappeared.
Forget about the rug beingpulled out. The whole floor
disappeared being laid off atthe same time as a few 1000 of
your peers into a job marketright now that may no longer be
employing people with yourexperience that adds a whole new
level of stress, so set asidesome time to do things you
(17:52):
enjoy. Maybe it's journaling,talk to a trusted friend, speak
to a professional if you'restruggling. The idea is, Mr.
Money's here to say, take careof you. So when you go out
looking for the next job, you'representing a good you a good,
happy going for it, kind ofperson. We don't want others
seeing you as depressed andupset all the time from losing
(18:15):
your job again. Some places tohelp find help may include
better help.com 988,lifeline.org. I researched
Substance Abuse and MentalHealth Service Administration.
They may have something AmericanPsychological Association that
may be something bottom line isexercise. Get some of that angst
(18:39):
out. Talking. Get some of thatangst out. Very important to do.
I'm thinking, when I just spokeabout these resources to help
you get back up on your feet arevery important. And yes, even
the last one taking care of youthrough all of this when we come
back, Mr. Money's got an issue.Can I just skip filing my tax
(19:02):
return? Mr. Money? Do I evenhave to file I've got the rules
around that of why you may ormay not want to file your tax
return. All when we come back,this is Mr. Money. Let me tell
you.
Unknown (19:23):
There's one for you, 19 for me, because I'm the tax
Mark Rothstein (19:37):
man. Mr. Money is Mr. Tax man in this segment,
we do it every week, secondsegment of the show. And so it's
income taxes. Talk time now andthey're due April 15. Yes, make
sure you file an extension ifyou want more time till October
15. But not everyone is requiredto file tax. Taxes, but most
(20:02):
Americans usually do submit atax return. Then there are those
who don't have to file taxes atall, but you know what they may
want to anyway. Can talk aboutthat in a second. Certain
benefits can come from filingtaxes, believe it or not. Yes, I
said certain benefits, benefits,defined as money coming to you
(20:23):
can come from filing taxes. Youcan claim tax credits,
overpayments that could resultin money being returned to you.
Obviously, of the 176 point 2million, I got the statistic of
the 176 point 2 millionindividuals and married couples
who could file a return in theyear 2020, about 144 point 5
(20:46):
million of them did it. So thisback to the numbers of 2020, 144
point 5 million out of the 170 6million did file. So whether you
need to file usually dependsmost on three items, this is
what it depends on your income,your filing status, and how old
(21:06):
you are, your age. Of course,there's a couple special
situations I'll mention also sodetermine if you're one of the
millions who does need to file areturn. Again, your three items
are your gross income, which isyour total income before taxes
and adjustments. The secondbiggie is your age. The third
(21:27):
key item is your filing status.Start with the last one filing
status. That simply meanswhether you're a single person
filing so you put single in thebox. Are you married filing
jointly? Got a spouse with you?That's filing with you. By the
way, you can do married filingseparately, where you are
married, but your spouse filesher tax return with her numbers.
(21:48):
You file yours with yournumbers. You get to fight over
who gets to claim the kids,because you can't have a child
deduction on each return. One ofyou two has it, and you could
filing status be head of ahousehold because you're taking
care of a parent or a child.Maybe you're a widow or widower
because your spouse passed away.So again, key item is which ex
(22:11):
you putting in the box for yourstatus, a single, married filing
jointly or separately, you'rehead of a household or widow,
etc. Different rules apply toeach different tax brackets
apply to each and then,depending on your age, with this
filing status, the IRS hasminimal income thresholds that
determine whether you shouldfile the return or not. So we
(22:33):
look at your age, we look at howyou're going to file your
status, and we know singlefiling status, 14,600 if younger
than 65 if you're 65 or older,you do not have to file if
you're under 16,000 550,married. 29,200 if both spouses
are younger than 65 30,007 50,if one spouse is younger than 65
(22:58):
and one is 65 or older. Soagain, I could give all these
numbers, but again, ask your taxperson or look@irs.gov under
filing status requirements, andit'll be there too. I had one
this morning. I talked toPoland. That's right, I have
clients in Poland, and they weresaying, do we need to file? We
(23:19):
have no further income fromAmerica. We only have our social
security we receive fromAmerica. And yes, we're living
in Poland. Yes, we've beenliving here for a couple years.
What do we got to do? Mr. Money,so again, ask your tax person if
you have special situations. Butyes, find that out. And by the
way, I said, special situationsmake some people have to file a
(23:44):
return. What's one of them?Alternative minimum tax. This
usually applies to very highincome people. They may have an
alternative minimum tax, whichis separate from regular income
tax. Maybe you pulled money outof an IRA retirement account
that could cause you to have tofile a return, whether you want
(24:04):
to or not. Because many times,if you pull money out of
retirement and you're under age59 and a half, there's
immediately income tax plus that10% penalty tax. So maybe you
got to file because you got topay the 10% penalty tax, maybe
you've got Social Security orMedicare tax on tips that you
did not report to your employer,or on wages you received from an
(24:28):
employer who didn't withholdthese taxes. You betcha. I've
seen some of my clients thisyear, certainly they did not
have any federal income taxwithheld, any state income tax
withheld, or even Medicare?Well, they got a file because
they made wages, just no taxeswere taken out on it. How about
(24:49):
household employee taxes? Ifyou've got an employee in the
house and they're an employeekeyword, and they're taking care
of children, more like fulltime. And you're paying them,
there are household employmenttaxes. I had a politician
client, and they clearly said,file it. No matter what, Mr.
Money, I got to have thecleanest record. No problem. We
(25:12):
filed household employment taxesfor the nanny that worked for
him. Again. Maybe this is thecase for you. You or your spouse
bought health insurance from thestate or federal marketplace. I
spoke about that last segment, Italked about getting Obamacare,
or getting, again, the healthinsurance from the state or
(25:35):
federal marketplace, key word,and you've received health
savings account distribution.Got to report all that if you
bought health insurance from thestate and federal or you've got
HSAs or MSAs medical savingsaccounts. How about this one?
Many people didn't know if youhad net earnings from self
employment. Mr. Money, I onlymade $600 as a self employed
(25:59):
person on the side, I had noexpenses. I just made $600 Yes,
you have to file why? Becauseonce you make $400 or more net
income, once you make $400 ormore again, the net income minus
expenses is more than 400 yougot to file your return so you
could pay Social Security taxes,not income taxes, but social
(26:22):
security taxes. How about thisone you must file if you had
wages of $108.28 or more from achurch or qualified church,
controlled organization that'sexempt from employer Social
Security and Medicare taxes.Again, you got to file let them
know you're with a qualifiedchurch, controlled organization.
(26:44):
The other thing I want tomention here is note, if you can
be claimed as a dependent onsomeone else's tax return, then
you can't go filing yourselftake your own dependency on your
own tax return because you gaveit to your folks or gave it to
someone else. Again, specialsituation, do you need to file
or you don't? Couple last itemshere about Mr. Money, Can I skip
(27:08):
filing? Couple last things Iwant to mention. If you think
you can get money back from thegovernment, absolutely consider
filing. For instance, let's sayyou had income tax withheld from
your paycheck. Mark, Mr. Money,I only made two grand. I'm
definitely under the threshold.Hold on. Now I'd consider filing
if they had income taxes takenout, federal estate tax
(27:32):
withheld, file it so you can getyour money back. So again, if
you had income tax withheld fromyour paycheck, you want to file
to get that money back. Maybeyou overpaid. For example, if
you made estimated tax paymentsduring the year, those are
called quarterly payments, andyou sent some money in during
the year because you thoughtyou'd be owing some income
(27:53):
taxes, or you had anyoverpayment from the prior year
you applied. That's all inthere. Maybe you get some of
that back. You got to file toget that money back. Here's the
big one, really big star. Starsbuy it, Earned Income Tax
Credit. You may qualify for thisrefundable credit. Let me say
(28:13):
the word again, refundablecredit. So you may have sent no
money to government, but you'regoing to get money back from the
government again. How does thatone work? Even if you don't owe
taxes, you can still get arefund. Lower income workers may
be eligible for a credit of 632to $7,830
(28:35):
depending on the income andnumber of children you have, but
you don't need to have childrento be eligible. The average EITC
earned income tax credit amountlast year, among 23 million who
claimed the credit was 2007 43they just got a check from the
government, nothing given to thegovernment, but got 2743 back
(28:57):
for no other reason, if it's lowincome and or low income and
children, you can get that E, IT, C, yes, I recommend a tax
man, a tax woman, to assist youwith that one. By the way, I
spoke to kids, there's anadditional child tax credit. If
you qualify, you can receive upto 1700 of the 2000 child tax
(29:21):
credit per child as a refund,again, extra money coming back.
Another one reason to file ifyou qualify for this one, it's
called the American OpportunityCredit. It's a help pay for post
high school education expenses.So post high school, you paid
some money for more education.You can get a maximum annual
(29:42):
credit of 2500 per eligiblestudent, and 40% or $1,000 could
be again refunded, even if youdidn't send money to the
government. Last point here iscalled the premium tax credit.
What's that one? If you qualify?You can get a refund on this
credit and that. How do you baseit? It's based on individual and
(30:05):
families that were covered thepremiums for their health
insurance purchased through theHealth Insurance Marketplace. So
again, if you went to Obamacareor the health insurance public
plan, and you were getting helpon your health insurance, and
your income ends up being muchlower than you originally
thought when you applied. Theremay be some rebate, some money
(30:26):
coming to you. So there's enoughreasons why check into
everything. I just said because,by golly, you may not want to
skip filing your return. When wecome back, I'm gonna do a double
on taxes. Got a little bit more.I've got some key items you just
need to know for this taxseason. Yes, you want to hear
(30:48):
it. Yes, it applies to you. Andyes, listen for it because it's
worth it. This is Mr. Money. Let
Unknown (30:59):
me tell you how it will be. There's one for you 19.
Mark Rothstein (31:20):
Mr. Tax man is here, and Mr. Tax man wants to
talk about errors that taxpayersshould watch out for. That's
right, taxpayers do makemistakes. Mr. Money makes
mistakes. I have a checkingdepartment to check every tax
return before it goes out. Soyes, I interview clients. Yes, I
(31:40):
asked lots of questions, since Iknow what's tax deductible, so
I'm looking for them. Fact, Ihad one this morning on tax
energy credits in your house.Client put in insulation energy,
there's a credit for it, and sothere was the credit, and I took
it. So again, you want to beinterviewed and then do the work
(32:04):
and then have it checked over.So that's one of the errors I've
got on my list here the mistakesthat can happen when you prepare
a tax return, and by all means,you make a mistake, it's going
to cause delays or even haveyour tax return rejected. So you
got to know what to look outfor. So you do the best tax
(32:24):
return. So it just gets filedagain, electronically filing
your tax return, where youautomatically file it with the
government, electronically notsign your name and send it in an
envelope to the IRS. When youelectronically do it, it's
automatically checked to acertain amount, and so it
therefore reduces errors,because the tax software that
(32:48):
does it is supposed to catch alot of errors, and it's supposed
to check a lot of the math. Soagain, looking to do that may be
good. Taxpayers can file forfree using IRS direct file. And
so consider that. But I gotother errors that people make.
Number one big error don't make,please is called missing or
(33:12):
inaccurate social securitynumbers. Each social security
number on a tax return shouldappear exactly as printed on the
social security card. So yes,check your card, if it has your
middle name in there, would youplease put your middle name on
the tax return? If it is with aninitial, would you please put
your name the initial and yourlast name just like it shows on
(33:34):
your social security card, andthen make sure you obviously put
the right number on the taxreturn. Another thing people
mess up is misspelled names. Thename listed on a tax return,
again should match the name onthe person's social security
card. But Mr. Money, I gotmarried. Okay, I'm glad you got
(33:56):
married. I'm glad even if youadded your spouse's last name,
super just make sure that SocialSecurity knows you're married,
because you should put the name,even if it's your maiden name on
the tax return that matches thesocial security number. So
again, misspelled names, itdon't work, so good. Along those
(34:19):
lines, had a client this weekagain, and she got married. And
I said, By the way, did you tellSocial Security you got married?
Yes, I did. I said, Did you tellSocial Security that all those
years when you were younger andworking at McDonald's or working
at Arby's or wherever you wereworking a department store, did
(34:41):
you tell them to move over allof the social security you paid
in under your original name? Soit got moved over to your name
now that you're married. Oh, no,I never did that. So I suggested
maybe you should call SocialSecurity and say, I want to make
sure all of my original namewhen I was younger and had all
those jobs pre married. Couragethat I got moved over to my new
(35:03):
married name. So when I retiresomeday and want my Social
Security I'm getting all myyears of credit, not only the
year since I was married. Soagain, just a little extra on
that one. Make sure you spellthe name correctly. Make sure
the name you put on therematches the social security
card. Another common error,incorrect filing status. Some
(35:25):
taxpayers choose the wrongfiling status. All right, Mr.
Money, I left my wife. I left myhusband mid year, so I'm filing
a single Nope. According to theIRS, what you are on December 31
is what you are all year. So youwould not be filing married
filing jointly through June.Then I left my spouse, so then
(35:48):
I'm single from June on. Nope,you're gonna file either as
married filing jointly, becausethat's what you were at the end
of the year. There was nodivorce done yet, or you're
gonna file married filingseparately, because you were
married on December 31 you'restill married. Means married
filing separately, or marriedfiling jointly. You don't get to
do single because you haven'tdone the divorce yet. Key
(36:13):
another one, math mistakes. Matherrors are so common and can
range from simple addition andsubtraction errors to more
complex calculations again,please double check the math. Is
what Mr. Money is here to say.Next one where a lot of errors
are figuring credits ordeductions. Taxpayers can make
(36:36):
mistakes figuring things likethe earned income credit.
Everybody heard me talk aboutthat in the last segment. That
is the number one biggest error,but it gets you money right back
in your pocket from thegovernment. Make sure you slowly
do earned income tax credit ifyou're taking it, and don't
forget to go slowly and takethat child and dependent cares
(36:58):
credits too. Again, somethingimportant, something that can
get your money back. But again,the IRS finds more errors there
and rejects tax returns as aresult. By the way, it's one of
the biggest areas where there'sfraud also. So slowly do that
one next one, incorrect bankaccount numbers, yep, taxpayers
(37:18):
expecting a refund should choosedirect deposit. Please give me
my money back electronically.Directly deposit my bank
account. They should verify. Youshould verify your account
number, routing number, with thefinancial institution, and make
sure it's very accurate. Do notmiss a number. Don't put a blank
(37:39):
in there or a zero that doesn'tbelong. If you're looking for
that electronically filed returnto electronically send the money
fastest right into your bankaccount, by all means, make sure
you've got the right routingnumber and account number.
Here's another error. You mightscratch your head and said, how
do people do that? Here'sanother one. An unsigned tax
(38:00):
return is not valid. So forcertain filing statuses, both
spouses must file, like a jointreturn, you both got to sign the
return. However, exceptions mayapply for members of the armed
forces, because they're offsomewhere and we don't even know
where they are, other taxpayersmay have a power of attorney
(38:21):
form. Bottom line is, you gottahave those tax returns signed.
And if it's manual, and by theway, you sign it on the
electronic filing Form, even ifyou're doing electronically,
there's an x and a line for eachspouse to sign, if you're
single, for you to sign. Thelast one big error is filing
(38:44):
with an expired individual taxidentification number. If a
taxpayer has an expired ITIN,for people that don't have a
social security number, they mayhave an ITIN Individual Tax
Identification Number, theyshould go ahead and file using
the expired number. How do youlike that the IRS is saying the
only way we know yet is not anSS number, social security
(39:07):
number, by this I 10 number. Soyes, still do it. The IRS will
process that return, treated asa return filed on time. However,
the IRS won't allow anyexemptions or credits on a
return filed with an expired iti n so again, if you're not
Social Security numbered andyour ITIN number, make sure it
(39:30):
is not expired and it's good togo. So those are a couple of the
biggest errors. Make sure youdon't make them. And so what can
taxpayers do if the IRS isslashed? Mr. Money, what are you
talking about? Getting slashed?What do you mean the IRS is
facing a double whammy right nowof a hiring freeze and the
(39:52):
possibility of losing 1000s ofits employees in the next couple
of weeks as part of PresidentDonald Trump's. Aggressive
attempt to downsize federalgovernment. Yep, IRS is not
immune to it. Absolutely, theIRS is being looked at. People
have asked to leave, and that'sgoing on there. So drastic cost
(40:16):
cutting measures have alreadytouched a wide range of
agencies. IRS is now one ofthem. The IRS already has a
labor shortage. Should know,people don't want to work there,
and it's very hard of all theagencies to hire people. People
don't want to work at the IRS.And right now, it's inevitable
that the hiring freezecompounded by layoffs and
(40:40):
further reductions in staffthat's going to be mandated from
Elon Musk. We're going to haveless IRS agents there. So what
do you do then?
Processing centers will be understaff. Customer service lines
will have longer wait times,processing of correspondence and
(41:01):
amended returns, which havealready takes four to six
months, may double to now takeeight to 12 months to get your
correspondence answered from theIRS. Mr. Money, you got an
answer for me? Yes. File early,yep. File now, yep. It's more
important this year forAmericans to get a jump on their
(41:22):
taxes, particularly if they'resending in paper returns or
requesting a refund. Do it now.For those requesting refunds,
opt for direct deposit. Givethem the bank account
information e filing, plusclaiming refunds by direct
deposit can sometimes get yourrefund as fast as eight days. I
(41:44):
haven't seen one done in eightdays. They're usually two to
three weeks. But go for it.Electronic Filing is the best
way do it immediately, andthat's your best chance, by the
way. Mr. Money, I got to get ahold of the IRS. What do I do
then? Mr. Money, I just got todo it. Call them early in the
morning. That's the best timethey are staff, as early as 7am
(42:07):
Eastern Time. The later youwait, the busier they are. And
again, let's say Mr. Money, Igot an audit going on. What then
try to get it handled quickly,soon. IRS employees who took a
buyout offer must work throughMay 15. That's right through May
15, then they're out of there.So if you think they're
(42:30):
understaffed now, they're goingto be way understaffed on May
15. So to file that return nowis the most important thing when
we come back. Mr. Money's got alittle bit to share about a best
place to put some of your moneyright now, your cash, you got to
have a place to put it. Mr.Money's got the place all when
we come back, this is Mr. Money.
Unknown (42:56):
Welcome back to the Mr. Money show on K I do talk radio,
1075 FM and 580 AM, Mr.
Mark Rothstein (43:03):
Money's got a place to put some cash. Cash or
cash equivalents, should rangefrom two to 10% of one's
portfolio. In other words, whenyou're asset allocating, only
put so much in there. Talk toyour financial person of how
much should I have in cash in myportfolio for asset allocation,
(43:24):
but if you need some moneythat's liquid, where are some of
the best places you can go rightnow, everybody's noticed
interest rates have dropped atthe banks. So Mr. Money, I still
like banks. I still want to earnincome, but I don't want to have
too much sitting in cash or onthe sidelines, not invested, not
a good idea. You still need yourmoney to keep growing,
(43:44):
especially if we're livinglonger. You got to have that
money last while. You're Yes,lasting. So where do you put
your money? Sometimes, in thoseregular bank accounts is not the
best place. So where might beone? One's called high yield
savings accounts may be one.There's robust competition among
(44:05):
the bricks and mortar banks, theones we can walk into, versus
online banks, versus creditunions and other financial
institutions. Bottom line, dothe research. Who's paying the
most? One of the sites I like iscalled Bank rate.com they list
best banks around the wholecountry. Call them up and see if
(44:26):
it makes sense for you. Theseaccounts, yes, are federally
insured up to 250,000 per bankper depositor account type.
There's multiple different ones,but yes, you got FDIC, Federal
Deposit Insurance coverage. Andthere are good options on being
able to grab your cash if youneed it. Very important,
(44:48):
remember to call them and say,How much do I got to put in?
Also, many times they need Xamount of dollars to get the
good rate. And sometimes theylimit you on the withdrawals
you. Take out. So again, checkthem out. Bankrate day, com.com,
and see if that's a good place,another place called CD,
(45:08):
certificates of deposit. They'repaying pretty good rates these
days. Many times you have toleave them for a period of time.
But again, check it out and seeif that makes sense. Remember,
you pull it out of a CD. EarlyCertificate of Deposit going to
be a penalty there. So don'tpick a CD that's five years if
(45:29):
you know you need the moneysooner. Maybe pick a three month
CD or a six month CD. Last Ilooked six months CDs at 4.45
not so bad. And again, got acolumn, got to make sure it's
FDIC and see if that works foryou. Key Item is yes. It takes
some research to look at some ofthese high yield savings
(45:51):
accounts, or look for thesecertificates of deposit, by the
way, a CD. If you give them 100grand, you get more, called the
jumbo CD. So again, check andsee what makes sense. Mr. Money,
I may need the money. I may notneed the money. That means you
can leverage it. You can have somoney that comes due in three
months, put some money in withthat. Money comes due in six
(46:13):
months. Have some money thatcomes due in nine months or a
year, called laddering it. Soagain, you've always got some
money coming due every threemonths. That may make sense for
you. Sitting at the bank earningnothing is not the answer. Mr.
Money saying, do a littleresearch and see what makes
sense for you. Ask your creditunion, ask your bank what
(46:35):
options they have, and see whatmight be best for you.
Bankrate.com, has all the banksacross the country that paying
well, check with them also. Thisis Mr. Money. We'll see you next
week. The Information andopinions presented
Unknown (46:47):
are for general information only and are not
intended to provide specificadvice or recommendations for
any individual you shouldcontact your investment
professional, attorney,accountant or tax advisor
regarding your individualsituation. The opinions of the
presenter are not necessarilythose of avantex Wealth
Management, its subsidiaries,officers or directors. Mark
Rothstein, aka Mr. Money, is afinancial advisor and the owner
of Tristar financial LLC and tristar Income Tax Services LLC.
(47:10):
Mr. Money is a marketing nameonly and is not intended as
anything other than a marketingname for entertainment purposes.
Securities offered throughavantex Investment Services,
Incorporated member, FINRA SIPCinvestment advisory services
offered through avantex AdvisorServices Incorporated insurance
services provided by a van TexInsurance Agency, Incorporated
and avantex Insurance ServicesIncorporated, tax and accounting
services offered through Tristaravantex entities are under
(47:31):
separate ownership from anyother named entity.
The Information and opinions presented are for
(00:01):
general information only, andare not intended to provide
specific advice orrecommendations for any
individual you should contactyour investment professional,
attorney, accountant or taxadvisor regarding your
individual situation. Theopinions of the presenter are
not necessarily those of eventtax wealth management. It's
subsidiaries, officers ordirectors. Mark Rothstein, aka
Mr. Money, is a financialadvisor and the owner of tri
star financial LLC and tri starIncome Tax Services LLC, Mr.
(00:23):
Money is a marketing name onlyand is not intended as anything
other than a marketing name forentertainment purposes.
Securities offered through a vanTex investment services,
Incorporated Member FINRA SIPCinvestment advisory services
offered through a van TexAdvisor Services, Incorporated
insurance services provided by avan Tex Insurance Agency,
Incorporated and avantexInsurance Services Incorporated
tax and accounting servicesoffered through Tristar, the
event, tax entities are underseparate ownership from any
(00:46):
other named
Mark Rothstein (00:47):
entity. Welcome everyone to the Mr. Money show.
It is Saturday, it is twoo'clock, and that means Mr.
Money is on your dial. Thatwould be one Oh, 7.5 dial, FM
and 580, AM. Dial here at K I dotalk radio studios, and it's
about money. Show is called Mr.Money, and money covers
(01:10):
everything. Income Taxes areconnected with money. Your
finances, obviously, are allabout money. How about dating
that's connected with money. Infact, how about your children?
That's connected with money?Certainly seems like a whole lot
of things are connected withmoney. And so many people say, I
(01:31):
want to be wealthy. I want tohave millions. Great. Are you
taking the actions needed tohave all that money? That's not
my question to you, to all mylisteners, my listeners actually
are taking action to make themoney. So I invite you to listen
for the next hour, Mr. Money isgoing to go through action steps
(01:52):
to make money. There's no classexcept the Mr. Money class that
I know of, at two o'clock everySaturday to help you with your
wealth. Really. Everything Italk about is connected with
wealth and what's going on inthe world to help you create
your wealth or protect yourwealth. And for those with very
(02:13):
little wealth, certainly we cangrow it. For those with a lot of
wealth, it's certainly all aboutprotecting it and allowing it to
grow. And if you're in themiddle somewhere, you will
absolutely learn steps to takeif you have questions in this
regard. 5805436, is the numberagain. 5805436, check in with
(02:35):
Mr. Money, and I thought I wouldtalk about what's been in the
news. So, so much, just so much.It would be President Trump. It
would be tariffs. It seems,according to President Trump, he
says tariffs will usher in a newera of American prosperity. But
(02:55):
here's the but the US economyisn't sharing the anticipatory
enthusiasm that the Presidentspoke of, that's right, he had a
nice joint session of Congressand the senators and lots of
people to talk about his lastfew weeks already as president.
But there's a variety ofindicators in recent weeks show
(03:17):
a slowdown in the first quartergrowth, which success? This is
especially bad time to add newtaxes when the economy is
uncertain. What am I talkingabout? Employers cut close to
222,000 jobs in January andFebruary of this year. That
(03:40):
doesn't sound like good news toMr. Money. It's a new report
from Career Services challengergray and Christmas found that
the worst start to a year forlayoffs since 2000 now and is
right now since 2009 bad start,222,000 jobs in January,
February lost. Many people sayit's Elon Musk, it's the
(04:04):
government. Cost cutting effortsat D, O, G, E, has played a
major role, and it has, in fact,more than a third of these
222,000 jobs lost happened inFebruary, and that's when a lot
of federal government positionswere dropped. So again, there's
canceled government contracts,there's trade war concerns with
(04:27):
the tariffs, there's privatebankruptcies from companies.
These are all factors that arecoming into this point being, is
this unemployment currentlystands at 4% but when they tally
it, next time we may see theunemployment rate going up that
more people are unemployed, thegovernment's D, O, G, E is just
(04:50):
starting out. It certainly isn'tfinished. So I'm here to say,
what do you do? Mr. Money wantsto address exactly what's going
on in. World, this tariffWhiplash has continued just this
last Thursday, President DonaldTrump said he would delay his
broad 25% tariffs on Canada andMexico for a month for any goods
(05:13):
that are covered by the existingUnited States, Mexico, Canada
agreement. So we're going backand forth, and let's not forget,
there will be some retaliation.Chinese Foreign Minister Wang Yi
accused the Trump administrationof trying to suppress his
country and vowed to retaliateagainst the arbitrary tariffs
(05:34):
targeting China. The highestlevel has been going on right
now against China push back fromBeijing will come, and Trump
imposed sweeping 10% tariffs onimports from China last month,
followed up this last week withan additional 10% Levy, bringing
the total to 20% so wedefinitely got some trade war
(05:56):
issues going on. And Mr. Moneythought I would address that and
say, so what do we the Americansdo? What do we the unemployed
do? Are there resources to helpyou if you lose your job? Yes,
Mr. Money wants to talk aboutthat right now, so you may be
freaking out because maybeyou're one of the 10s of 1000s
(06:19):
of federal employees whorecently received a pink slip.
We're hearing about it in thenews. So figuring out what to do
after losing your job can bedaunting. Mr. Money's lost a
job. I know the feeling ofdaunting. Of course, it's
daunting. First thing you needto do is make a short term plan.
It's like triage before youstart looking for the long term
(06:42):
fix, you need to stop thebleeding. So Mr. Money wants to
talk about what resources.Resources are available to you.
Help you pay your bills. Are youeligible for unemployment
assistance? Did you get offereda severance pay again? Once you
understand how to navigate theimmediate future, you can start
(07:03):
thinking about next steps. Iegetting the job. So I thought I
would just talk about that. HasMr. Money? Had people I work
with lose their job? Of course,and there are things to do. And
here's some of the things to doagain, what if you're
financially strapped afterlosing your job. I'm hoping
you're not strapped. If there'sone financial rule every
(07:26):
financial planner talks about isto have an emergency fund. Have
a contingency fund. How muchshould it be? Certified
financial planners like myself,Mr. Money, recommend to clients
to have three to six months ofmoney in the bank on the side,
in case you lose your job orsome unexpected expense comes
(07:47):
along again. How do you figurethe three to six months? Mr.
Money? It's whatever costs youper month to live, whatever your
normal bills are. I want you tohave that money to continue
normal life for three to sixmonths to help you get the next
job. But Mr. Money, I don't knowit's three months. Should it be
six months? It all depends onhow long you think it'll take
(08:08):
you to get a job. Some jobs maytake six months. So Mr. Money
recommends having an emergencyaccount to pay your bills for at
least six months. If you feelyou could get it within three
months, then a savings emergencyaccount that lasts three months
is the right one. But Mr. Money,how do I put money away for
emergencies? The best way is,when you get paid, earmark some
(08:29):
of it to go to a separatekeyword, separate bank account
that's just there to build upmoney. In case of an emergency,
by the way, I'm okay to have aseparate amount go into a
separate bank account for yourtravel account to go traveling a
year from now, or a separateamount to go to money put away
for your college, for yourchild. So I like multiple
(08:50):
accounts. I like you puttingaway money towards your future,
toward what your wishes are. Andcertainly an emergency fund is
one to have. So that's the startof it, if we haven't done that
or we haven't gotten enough putaway there, which is many times
the case. Of course, apply forunemployment benefits. Federal
(09:11):
workers can apply forunemployment compensation for
federal employees, UC, Fe, wecall it, and which is
administered by the states, andthe same as regular
unemployment. So again, if it'sa regular job you lost, you
still go to the state. If it's afederal worker you are, you
still go to the state. Again,that's where you're going. So
(09:34):
yes, you're going here to Idaho.The amount you receive will be
based on what were earnings andstate maximums. States also
determine the number of weeksthat they'll pay you. By the
way, unemployment compensationyou receive from wherever you
receive it. In this case, fromIdaho. It is taxable, yep, goes
(09:55):
on the federal tax return. Mr.Money, what? What's that? Idaho
amount? It can be anywhere from$72 per week up to $499 per
week. Again, as I mentioned,it's based on what you were
earning and on your statemaxims. State maxims here is 499
a week. Obviously you're goingto look for a new full time job
(10:19):
or start being gig work to getsome bucks. Be Mr. Or Mrs. Uber
or Lyft, that's a possibility.Or other gig or side hustles,
side work you can do and havethat help you hold on, maybe a
compliment your unemploymentuntil you get the job. Couple
websites, Mr. Money researchedindeed.com, for jobs the
(10:44):
ladders.com, USA jobs.gov,
monster.com, and careerbuilder.com, again, new, new,
new refreshing. New listings arecoming weekly or daily. So keep
checking it if you think youwon't be able to meet your rent
(11:06):
or mortgage obligations,consider state run rental
assistance programs or mortgageforbearance options you don't
think that happened recently inLA with the fires, everybody
called their mortgage lender andsaid, My house burned down, or
I've got smoke so I can't stayin the house any longer. May I
have a forbearance. Can we talkabout that mortgage payment or
(11:29):
that rent payment? So again, goto your lender. Have that talk
if you have trouble payingutilities. Let's say, because
you lost your job, manycompanies will work with you, or
you can apply for governmentassistance throughout your
state's Energy AssistanceProgram Office, and yes, they'll
be able to help you with coolingand heating bills, etc. And Mr.
(11:52):
Money, I can't make my studentloan payments. I can't pay my
child's tuition again, samething. Contact your loan
servicer on the student loanpayments or the child's
financial aid office immediatelywork out a plan, find out your
options again federal studentloans, you may be able to lower
(12:14):
the monthly amount by switchingplans or pausing payments
through deferment orforbearance. Bottom line is,
yes, you have to get on thephone and yes, you got to see
what your options are, but byall means, collect unemployment
immediately. You've paid intothe system your whole life. Mr.
Money says, take the money untilyou get the next one. So that's
(12:36):
first up again. But Mr. Money,will I lose my health insurance
coverage? That's a big deal. AmI going to lose that? The
Federal Employees HealthBenefits will be terminated. If
you're a federal employee, itwill be terminated on the last
day of the pay period youseparate from your job, but
(12:59):
you'll have an additional 30 daytemporary extension of your
coverage at no cost, accordingto the free government employee
resource site, federalpay.orgMr. Money, I'm not a federal
employee. That's fine. If you'vegot let go from a regular
company, they will offer youCobra, and that's where you get
(13:20):
to keep your existing healthinsurance. You have to pay for
it. Company won't any longer, orthey'll keep you covered for so
many days, and then you've gotto replace it and get insurance.
So you could possibly do the oneand extend the one at your
regular job you've left, andkeep that alive. It's expensive,
but keep that one alive, you cango to the plan that the state
(13:44):
may have, Obamacare, that healthcare plan we know about, that
one. Again, apply to it. I nolonger have my company health
insurance. May I please getObamacare? May I please get the
coverage from the government?They've got it, it's there. And
again, check to see if that's apossibility for you and what the
(14:06):
cost is there. Again, you weremisfired. Maybe you were
misconduct, or maybe you werefired for reasons. So again,
find out what your rights areonce you've addressed your most
immediate needs. Again,unemployment, get the cash flow
going, consider your rights andwhether you want to appeal your
firing. How about that as anidea? Appeal your firing? We
(14:30):
know recently with some fedemployees, they were let go and
then they were brought back.Some employees were offered the
option to say goodbye, and somedid, and some did not. Some were
forced to be put back on thepayroll. So again, what are your
rights in regard to being letgo? That's again, as a federal
employee, not sure you have thesame rights as a private company
(14:52):
you're working for. The Officeof Personal Management resources
can help you understand andnavigate this. So again. One, if
you're a federal employee, checkand see. By the way, you can
also go to your union. If you'rea federal employee and you have
a union, ask them, what nextrecourse do I have to be
(15:12):
rehired? Or what are all thebenefits I may have? By the way,
if you let go because of adisability, there's definitely
federal agencies there requiredto help you. So very important,
Mr. Money, I've done that. Myunemployment fall falling out. I
just don't have enough money.Well, can borrow from friends
(15:37):
family. That's a possibility,and put some interest rate with
it. And maybe you don't have toput an interest rate when you're
borrowing from friends orfamily. Maybe you're going to
start living off your creditcard. Bad idea says, Mr. Money,
those credit card charges at 21%I just eat you alive. Try not to
(15:59):
use your credit card for living.That's exactly why we have our
emergency contingency fund.That's why Mr. Money, I'll sell
some stock. Sure, if you've gotsome assets, you could sell,
whether it's your householdgoodies you wanted to sell and
have a garage sale, sure, maybeit's Finley, you have some
stocks or bonds or someinvestments, sure. Why not?
(16:22):
That'll help the cash flow.Maybe you've loaned money to
others. They never paid youback, so it's time for you to go
after them to pay you back. Soagain, very important. The very
last point I want to make onthis is so realize you do have
resources. There are steps totake if you lose your job, and
Mr. Money fears with what'sgoing on, there may be more let
(16:46):
gos of people in the government.They've said it's coming. In
fact, they rested recently.Department of Education is one
of the ones aimed at to reduceemployees and reduce that
department that'll be againpeople being let go. So last
part I want to mention is totake care of yourself. That's
(17:07):
very important while jugglingall this practical issues
related to the surprise firingor not surprise firing, make
sure to practice self care.Layoffs are hard period. They're
just simply hard. Losing yourjob is having a rug pulled out
from under you. I get it. I getit. And for many federal workers
(17:28):
right now, it can feel like theentire floor simply disappeared.
Forget about the rug beingpulled out. The whole floor
disappeared being laid off atthe same time as a few 1000 of
your peers into a job marketright now that may no longer be
employing people with yourexperience that adds a whole new
level of stress, so set asidesome time to do things you
(17:52):
enjoy. Maybe it's journaling,talk to a trusted friend, speak
to a professional if you'restruggling. The idea is, Mr.
Money's here to say, take careof you. So when you go out
looking for the next job, you'representing a good you a good,
happy going for it, kind ofperson. We don't want others
seeing you as depressed andupset all the time from losing
(18:15):
your job again. Some places tohelp find help may include
better help.com 988,lifeline.org. I researched
Substance Abuse and MentalHealth Service Administration.
They may have something AmericanPsychological Association that
may be something bottom line isexercise. Get some of that angst
(18:39):
out. Talking. Get some of thatangst out. Very important to do.
I'm thinking, when I just spokeabout these resources to help
you get back up on your feet arevery important. And yes, even
the last one taking care of youthrough all of this when we come
back, Mr. Money's got an issue.Can I just skip filing my tax
(19:02):
return? Mr. Money? Do I evenhave to file I've got the rules
around that of why you may ormay not want to file your tax
return. All when we come back,this is Mr. Money. Let me tell
you.
Unknown (19:23):
There's one for you, 19 for me, because I'm the tax
Mark Rothstein (19:37):
man. Mr. Money is Mr. Tax man in this segment,
we do it every week, secondsegment of the show. And so it's
income taxes. Talk time now andthey're due April 15. Yes, make
sure you file an extension ifyou want more time till October
15. But not everyone is requiredto file tax. Taxes, but most
(20:02):
Americans usually do submit atax return. Then there are those
who don't have to file taxes atall, but you know what they may
want to anyway. Can talk aboutthat in a second. Certain
benefits can come from filingtaxes, believe it or not. Yes, I
said certain benefits, benefits,defined as money coming to you
(20:23):
can come from filing taxes. Youcan claim tax credits,
overpayments that could resultin money being returned to you.
Obviously, of the 176 point 2million, I got the statistic of
the 176 point 2 millionindividuals and married couples
who could file a return in theyear 2020, about 144 point 5
(20:46):
million of them did it. So thisback to the numbers of 2020, 144
point 5 million out of the 170 6million did file. So whether you
need to file usually dependsmost on three items, this is
what it depends on your income,your filing status, and how old
(21:06):
you are, your age. Of course,there's a couple special
situations I'll mention also sodetermine if you're one of the
millions who does need to file areturn. Again, your three items
are your gross income, which isyour total income before taxes
and adjustments. The secondbiggie is your age. The third
(21:27):
key item is your filing status.Start with the last one filing
status. That simply meanswhether you're a single person
filing so you put single in thebox. Are you married filing
jointly? Got a spouse with you?That's filing with you. By the
way, you can do married filingseparately, where you are
married, but your spouse filesher tax return with her numbers.
(21:48):
You file yours with yournumbers. You get to fight over
who gets to claim the kids,because you can't have a child
deduction on each return. One ofyou two has it, and you could
filing status be head of ahousehold because you're taking
care of a parent or a child.Maybe you're a widow or widower
because your spouse passed away.So again, key item is which ex
(22:11):
you putting in the box for yourstatus, a single, married filing
jointly or separately, you'rehead of a household or widow,
etc. Different rules apply toeach different tax brackets
apply to each and then,depending on your age, with this
filing status, the IRS hasminimal income thresholds that
determine whether you shouldfile the return or not. So we
(22:33):
look at your age, we look at howyou're going to file your
status, and we know singlefiling status, 14,600 if younger
than 65 if you're 65 or older,you do not have to file if
you're under 16,000 550,married. 29,200 if both spouses
are younger than 65 30,007 50,if one spouse is younger than 65
(22:58):
and one is 65 or older. Soagain, I could give all these
numbers, but again, ask your taxperson or look@irs.gov under
filing status requirements, andit'll be there too. I had one
this morning. I talked toPoland. That's right, I have
clients in Poland, and they weresaying, do we need to file? We
(23:19):
have no further income fromAmerica. We only have our social
security we receive fromAmerica. And yes, we're living
in Poland. Yes, we've beenliving here for a couple years.
What do we got to do? Mr. Money,so again, ask your tax person if
you have special situations. Butyes, find that out. And by the
way, I said, special situationsmake some people have to file a
(23:44):
return. What's one of them?Alternative minimum tax. This
usually applies to very highincome people. They may have an
alternative minimum tax, whichis separate from regular income
tax. Maybe you pulled money outof an IRA retirement account
that could cause you to have tofile a return, whether you want
(24:04):
to or not. Because many times,if you pull money out of
retirement and you're under age59 and a half, there's
immediately income tax plus that10% penalty tax. So maybe you
got to file because you got topay the 10% penalty tax, maybe
you've got Social Security orMedicare tax on tips that you
did not report to your employer,or on wages you received from an
(24:28):
employer who didn't withholdthese taxes. You betcha. I've
seen some of my clients thisyear, certainly they did not
have any federal income taxwithheld, any state income tax
withheld, or even Medicare?Well, they got a file because
they made wages, just no taxeswere taken out on it. How about
(24:49):
household employee taxes? Ifyou've got an employee in the
house and they're an employeekeyword, and they're taking care
of children, more like fulltime. And you're paying them,
there are household employmenttaxes. I had a politician
client, and they clearly said,file it. No matter what, Mr.
Money, I got to have thecleanest record. No problem. We
(25:12):
filed household employment taxesfor the nanny that worked for
him. Again. Maybe this is thecase for you. You or your spouse
bought health insurance from thestate or federal marketplace. I
spoke about that last segment, Italked about getting Obamacare,
or getting, again, the healthinsurance from the state or
(25:35):
federal marketplace, key word,and you've received health
savings account distribution.Got to report all that if you
bought health insurance from thestate and federal or you've got
HSAs or MSAs medical savingsaccounts. How about this one?
Many people didn't know if youhad net earnings from self
employment. Mr. Money, I onlymade $600 as a self employed
(25:59):
person on the side, I had noexpenses. I just made $600 Yes,
you have to file why? Becauseonce you make $400 or more net
income, once you make $400 ormore again, the net income minus
expenses is more than 400 yougot to file your return so you
could pay Social Security taxes,not income taxes, but social
(26:22):
security taxes. How about thisone you must file if you had
wages of $108.28 or more from achurch or qualified church,
controlled organization that'sexempt from employer Social
Security and Medicare taxes.Again, you got to file let them
know you're with a qualifiedchurch, controlled organization.
(26:44):
The other thing I want tomention here is note, if you can
be claimed as a dependent onsomeone else's tax return, then
you can't go filing yourselftake your own dependency on your
own tax return because you gaveit to your folks or gave it to
someone else. Again, specialsituation, do you need to file
or you don't? Couple last itemshere about Mr. Money, Can I skip
(27:08):
filing? Couple last things Iwant to mention. If you think
you can get money back from thegovernment, absolutely consider
filing. For instance, let's sayyou had income tax withheld from
your paycheck. Mark, Mr. Money,I only made two grand. I'm
definitely under the threshold.Hold on. Now I'd consider filing
if they had income taxes takenout, federal estate tax
(27:32):
withheld, file it so you can getyour money back. So again, if
you had income tax withheld fromyour paycheck, you want to file
to get that money back. Maybeyou overpaid. For example, if
you made estimated tax paymentsduring the year, those are
called quarterly payments, andyou sent some money in during
the year because you thoughtyou'd be owing some income
(27:53):
taxes, or you had anyoverpayment from the prior year
you applied. That's all inthere. Maybe you get some of
that back. You got to file toget that money back. Here's the
big one, really big star. Starsbuy it, Earned Income Tax
Credit. You may qualify for thisrefundable credit. Let me say
(28:13):
the word again, refundablecredit. So you may have sent no
money to government, but you'regoing to get money back from the
government again. How does thatone work? Even if you don't owe
taxes, you can still get arefund. Lower income workers may
be eligible for a credit of 632to $7,830
(28:35):
depending on the income andnumber of children you have, but
you don't need to have childrento be eligible. The average EITC
earned income tax credit amountlast year, among 23 million who
claimed the credit was 2007 43they just got a check from the
government, nothing given to thegovernment, but got 2743 back
(28:57):
for no other reason, if it's lowincome and or low income and
children, you can get that E, IT, C, yes, I recommend a tax
man, a tax woman, to assist youwith that one. By the way, I
spoke to kids, there's anadditional child tax credit. If
you qualify, you can receive upto 1700 of the 2000 child tax
(29:21):
credit per child as a refund,again, extra money coming back.
Another one reason to file ifyou qualify for this one, it's
called the American OpportunityCredit. It's a help pay for post
high school education expenses.So post high school, you paid
some money for more education.You can get a maximum annual
(29:42):
credit of 2500 per eligiblestudent, and 40% or $1,000 could
be again refunded, even if youdidn't send money to the
government. Last point here iscalled the premium tax credit.
What's that one? If you qualify?You can get a refund on this
credit and that. How do you baseit? It's based on individual and
(30:05):
families that were covered thepremiums for their health
insurance purchased through theHealth Insurance Marketplace. So
again, if you went to Obamacareor the health insurance public
plan, and you were getting helpon your health insurance, and
your income ends up being muchlower than you originally
thought when you applied. Theremay be some rebate, some money
(30:26):
coming to you. So there's enoughreasons why check into
everything. I just said because,by golly, you may not want to
skip filing your return. When wecome back, I'm gonna do a double
on taxes. Got a little bit more.I've got some key items you just
need to know for this taxseason. Yes, you want to hear
(30:48):
it. Yes, it applies to you. Andyes, listen for it because it's
worth it. This is Mr. Money. Let
Unknown (30:59):
me tell you how it will be. There's one for you 19.
Mark Rothstein (31:20):
Mr. Tax man is here, and Mr. Tax man wants to
talk about errors that taxpayersshould watch out for. That's
right, taxpayers do makemistakes. Mr. Money makes
mistakes. I have a checkingdepartment to check every tax
return before it goes out. Soyes, I interview clients. Yes, I
(31:40):
asked lots of questions, since Iknow what's tax deductible, so
I'm looking for them. Fact, Ihad one this morning on tax
energy credits in your house.Client put in insulation energy,
there's a credit for it, and sothere was the credit, and I took
it. So again, you want to beinterviewed and then do the work
(32:04):
and then have it checked over.So that's one of the errors I've
got on my list here the mistakesthat can happen when you prepare
a tax return, and by all means,you make a mistake, it's going
to cause delays or even haveyour tax return rejected. So you
got to know what to look outfor. So you do the best tax
(32:24):
return. So it just gets filedagain, electronically filing
your tax return, where youautomatically file it with the
government, electronically notsign your name and send it in an
envelope to the IRS. When youelectronically do it, it's
automatically checked to acertain amount, and so it
therefore reduces errors,because the tax software that
(32:48):
does it is supposed to catch alot of errors, and it's supposed
to check a lot of the math. Soagain, looking to do that may be
good. Taxpayers can file forfree using IRS direct file. And
so consider that. But I gotother errors that people make.
Number one big error don't make,please is called missing or
(33:12):
inaccurate social securitynumbers. Each social security
number on a tax return shouldappear exactly as printed on the
social security card. So yes,check your card, if it has your
middle name in there, would youplease put your middle name on
the tax return? If it is with aninitial, would you please put
your name the initial and yourlast name just like it shows on
(33:34):
your social security card, andthen make sure you obviously put
the right number on the taxreturn. Another thing people
mess up is misspelled names. Thename listed on a tax return,
again should match the name onthe person's social security
card. But Mr. Money, I gotmarried. Okay, I'm glad you got
(33:56):
married. I'm glad even if youadded your spouse's last name,
super just make sure that SocialSecurity knows you're married,
because you should put the name,even if it's your maiden name on
the tax return that matches thesocial security number. So
again, misspelled names, itdon't work, so good. Along those
(34:19):
lines, had a client this weekagain, and she got married. And
I said, By the way, did you tellSocial Security you got married?
Yes, I did. I said, Did you tellSocial Security that all those
years when you were younger andworking at McDonald's or working
at Arby's or wherever you wereworking a department store, did
(34:41):
you tell them to move over allof the social security you paid
in under your original name? Soit got moved over to your name
now that you're married. Oh, no,I never did that. So I suggested
maybe you should call SocialSecurity and say, I want to make
sure all of my original namewhen I was younger and had all
those jobs pre married. Couragethat I got moved over to my new
(35:03):
married name. So when I retiresomeday and want my Social
Security I'm getting all myyears of credit, not only the
year since I was married. Soagain, just a little extra on
that one. Make sure you spellthe name correctly. Make sure
the name you put on therematches the social security
card. Another common error,incorrect filing status. Some
(35:25):
taxpayers choose the wrongfiling status. All right, Mr.
Money, I left my wife. I left myhusband mid year, so I'm filing
a single Nope. According to theIRS, what you are on December 31
is what you are all year. So youwould not be filing married
filing jointly through June.Then I left my spouse, so then
(35:48):
I'm single from June on. Nope,you're gonna file either as
married filing jointly, becausethat's what you were at the end
of the year. There was nodivorce done yet, or you're
gonna file married filingseparately, because you were
married on December 31 you'restill married. Means married
filing separately, or marriedfiling jointly. You don't get to
do single because you haven'tdone the divorce yet. Key
(36:13):
another one, math mistakes. Matherrors are so common and can
range from simple addition andsubtraction errors to more
complex calculations again,please double check the math. Is
what Mr. Money is here to say.Next one where a lot of errors
are figuring credits ordeductions. Taxpayers can make
(36:36):
mistakes figuring things likethe earned income credit.
Everybody heard me talk aboutthat in the last segment. That
is the number one biggest error,but it gets you money right back
in your pocket from thegovernment. Make sure you slowly
do earned income tax credit ifyou're taking it, and don't
forget to go slowly and takethat child and dependent cares
(36:58):
credits too. Again, somethingimportant, something that can
get your money back. But again,the IRS finds more errors there
and rejects tax returns as aresult. By the way, it's one of
the biggest areas where there'sfraud also. So slowly do that
one next one, incorrect bankaccount numbers, yep, taxpayers
(37:18):
expecting a refund should choosedirect deposit. Please give me
my money back electronically.Directly deposit my bank
account. They should verify. Youshould verify your account
number, routing number, with thefinancial institution, and make
sure it's very accurate. Do notmiss a number. Don't put a blank
(37:39):
in there or a zero that doesn'tbelong. If you're looking for
that electronically filed returnto electronically send the money
fastest right into your bankaccount, by all means, make sure
you've got the right routingnumber and account number.
Here's another error. You mightscratch your head and said, how
do people do that? Here'sanother one. An unsigned tax
(38:00):
return is not valid. So forcertain filing statuses, both
spouses must file, like a jointreturn, you both got to sign the
return. However, exceptions mayapply for members of the armed
forces, because they're offsomewhere and we don't even know
where they are, other taxpayersmay have a power of attorney
(38:21):
form. Bottom line is, you gottahave those tax returns signed.
And if it's manual, and by theway, you sign it on the
electronic filing Form, even ifyou're doing electronically,
there's an x and a line for eachspouse to sign, if you're
single, for you to sign. Thelast one big error is filing
(38:44):
with an expired individual taxidentification number. If a
taxpayer has an expired ITIN,for people that don't have a
social security number, they mayhave an ITIN Individual Tax
Identification Number, theyshould go ahead and file using
the expired number. How do youlike that the IRS is saying the
only way we know yet is not anSS number, social security
(39:07):
number, by this I 10 number. Soyes, still do it. The IRS will
process that return, treated asa return filed on time. However,
the IRS won't allow anyexemptions or credits on a
return filed with an expired iti n so again, if you're not
Social Security numbered andyour ITIN number, make sure it
(39:30):
is not expired and it's good togo. So those are a couple of the
biggest errors. Make sure youdon't make them. And so what can
taxpayers do if the IRS isslashed? Mr. Money, what are you
talking about? Getting slashed?What do you mean the IRS is
facing a double whammy right nowof a hiring freeze and the
(39:52):
possibility of losing 1000s ofits employees in the next couple
of weeks as part of PresidentDonald Trump's. Aggressive
attempt to downsize federalgovernment. Yep, IRS is not
immune to it. Absolutely, theIRS is being looked at. People
have asked to leave, and that'sgoing on there. So drastic cost
(40:16):
cutting measures have alreadytouched a wide range of
agencies. IRS is now one ofthem. The IRS already has a
labor shortage. Should know,people don't want to work there,
and it's very hard of all theagencies to hire people. People
don't want to work at the IRS.And right now, it's inevitable
that the hiring freezecompounded by layoffs and
(40:40):
further reductions in staffthat's going to be mandated from
Elon Musk. We're going to haveless IRS agents there. So what
do you do then?
Processing centers will be understaff. Customer service lines
will have longer wait times,processing of correspondence and
(41:01):
amended returns, which havealready takes four to six
months, may double to now takeeight to 12 months to get your
correspondence answered from theIRS. Mr. Money, you got an
answer for me? Yes. File early,yep. File now, yep. It's more
important this year forAmericans to get a jump on their
(41:22):
taxes, particularly if they'resending in paper returns or
requesting a refund. Do it now.For those requesting refunds,
opt for direct deposit. Givethem the bank account
information e filing, plusclaiming refunds by direct
deposit can sometimes get yourrefund as fast as eight days. I
(41:44):
haven't seen one done in eightdays. They're usually two to
three weeks. But go for it.Electronic Filing is the best
way do it immediately, andthat's your best chance, by the
way. Mr. Money, I got to get ahold of the IRS. What do I do
then? Mr. Money, I just got todo it. Call them early in the
morning. That's the best timethey are staff, as early as 7am
(42:07):
Eastern Time. The later youwait, the busier they are. And
again, let's say Mr. Money, Igot an audit going on. What then
try to get it handled quickly,soon. IRS employees who took a
buyout offer must work throughMay 15. That's right through May
15, then they're out of there.So if you think they're
(42:30):
understaffed now, they're goingto be way understaffed on May
15. So to file that return nowis the most important thing when
we come back. Mr. Money's got alittle bit to share about a best
place to put some of your moneyright now, your cash, you got to
have a place to put it. Mr.Money's got the place all when
we come back, this is Mr. Money.
Unknown (42:56):
Welcome back to the Mr. Money show on K I do talk radio,
1075 FM and 580 AM, Mr.
Mark Rothstein (43:03):
Money's got a place to put some cash. Cash or
cash equivalents, should rangefrom two to 10% of one's
portfolio. In other words, whenyou're asset allocating, only
put so much in there. Talk toyour financial person of how
much should I have in cash in myportfolio for asset allocation,
(43:24):
but if you need some moneythat's liquid, where are some of
the best places you can go rightnow, everybody's noticed
interest rates have dropped atthe banks. So Mr. Money, I still
like banks. I still want to earnincome, but I don't want to have
too much sitting in cash or onthe sidelines, not invested, not
a good idea. You still need yourmoney to keep growing,
(43:44):
especially if we're livinglonger. You got to have that
money last while. You're Yes,lasting. So where do you put
your money? Sometimes, in thoseregular bank accounts is not the
best place. So where might beone? One's called high yield
savings accounts may be one.There's robust competition among
(44:05):
the bricks and mortar banks, theones we can walk into, versus
online banks, versus creditunions and other financial
institutions. Bottom line, dothe research. Who's paying the
most? One of the sites I like iscalled Bank rate.com they list
best banks around the wholecountry. Call them up and see if
(44:26):
it makes sense for you. Theseaccounts, yes, are federally
insured up to 250,000 per bankper depositor account type.
There's multiple different ones,but yes, you got FDIC, Federal
Deposit Insurance coverage. Andthere are good options on being
able to grab your cash if youneed it. Very important,
(44:48):
remember to call them and say,How much do I got to put in?
Also, many times they need Xamount of dollars to get the
good rate. And sometimes theylimit you on the withdrawals
you. Take out. So again, checkthem out. Bankrate day, com.com,
and see if that's a good place,another place called CD,
(45:08):
certificates of deposit. They'repaying pretty good rates these
days. Many times you have toleave them for a period of time.
But again, check it out and seeif that makes sense. Remember,
you pull it out of a CD. EarlyCertificate of Deposit going to
be a penalty there. So don'tpick a CD that's five years if
(45:29):
you know you need the moneysooner. Maybe pick a three month
CD or a six month CD. Last Ilooked six months CDs at 4.45
not so bad. And again, got acolumn, got to make sure it's
FDIC and see if that works foryou. Key Item is yes. It takes
some research to look at some ofthese high yield savings
(45:51):
accounts, or look for thesecertificates of deposit, by the
way, a CD. If you give them 100grand, you get more, called the
jumbo CD. So again, check andsee what makes sense. Mr. Money,
I may need the money. I may notneed the money. That means you
can leverage it. You can have somoney that comes due in three
months, put some money in withthat. Money comes due in six
(46:13):
months. Have some money thatcomes due in nine months or a
year, called laddering it. Soagain, you've always got some
money coming due every threemonths. That may make sense for
you. Sitting at the bank earningnothing is not the answer. Mr.
Money saying, do a littleresearch and see what makes
sense for you. Ask your creditunion, ask your bank what
(46:35):
options they have, and see whatmight be best for you.
Bankrate.com, has all the banksacross the country that paying
well, check with them also. Thisis Mr. Money. We'll see you next
week. The Information andopinions presented
Unknown (46:47):
are for general information only and are not
intended to provide specificadvice or recommendations for
any individual you shouldcontact your investment
professional, attorney,accountant or tax advisor
regarding your individualsituation. The opinions of the
presenter are not necessarilythose of avantex Wealth
Management, its subsidiaries,officers or directors. Mark
Rothstein, aka Mr. Money, is afinancial advisor and the owner
of Tristar financial LLC and tristar Income Tax Services LLC.
(47:10):
Mr. Money is a marketing nameonly and is not intended as
anything other than a marketingname for entertainment purposes.
Securities offered throughavantex Investment Services,
Incorporated member, FINRA SIPCinvestment advisory services
offered through avantex AdvisorServices Incorporated insurance
services provided by a van TexInsurance Agency, Incorporated
and avantex Insurance ServicesIncorporated, tax and accounting
services offered through Tristaravantex entities are under
(47:31):
separate ownership from anyother named entity.
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