Dr. Friday Radio Show – December 6, 2025

G’day! In this episode of the Dr. Friday Show, the Doctor is in the house to help you navigate the end of the year and prepare for the 2025 tax season. Dr. Friday breaks down the major changes introduced by the “One Big Beautiful Bill” (OBBB), including shifting tax brackets, new credits for families, and substantial changes for service industry workers. Whether you are looking to maximize your retirement contributions before December 31st or trying to understand the new rules regarding auto loan interest, this episode is packed with essential financial advice.

Episode Summary Points:

• Year-End Retirement Planning: Reminders to maximize 401(k) contributions before the final paycheck of the year and utilizing Spousal IRAs.
• The “SALT” Cap Increase: The State and Local Tax (SALT) deduction cap has increased from $10,000 to $40,000 for the 2025 tax year.
• Social Security Taxation: Clarification that Social Security is not tax-free, but seniors (65+) now receive a qualified deduction ($6,000 for individuals, $12,000 for couples).
• Service Industry Tax Breaks: New exemptions for federal withholding on tips (up to $25k) and overtime pay (up to 250 hours).
• Auto Loan Interest Deduction: A new ability to deduct up to $10,000 in interest for new, U.S.-assembled vehicles purchased for personal use after Dec 31, 2024.
• Student Loan Updates: Warning regarding the expiration of forgiveness programs in July 2026 and hardship deferments in 2027.
• Estate & Gift Tax: The annual gift exclusion rises to $19,000 per person for 2025.
• The “Trump Account” for Children: Details on the $1,000 government contribution for U.S.-born children starting in 2025.

Episode FAQ:

Q: Is Social Security income tax-free in 2025?A: No. Social Security can still be taxed up to 85%. However, under the new bill, there is an additional standard deduction for those age 65 and older ($6,000 for singles, $12,000 for married couples) which may reduce your overall tax liability.

Q: Can I deduct the interest on my car loan on my 2025 taxes?A: Yes, but there are strict requirements. The vehicle must be new, assembled in the U.S. (VIN starting with 1, 4, or 5), purchased after Dec 31, 2024, and used solely for personal reasons. The deduction is capped at $10,000 in interest and phases out for high-income earners.

Q: I have a teenager who is working. Can I put money into an IRA for them?A: Absolutely. As long as the child has earned income, you (or a grandparent) can contribute to a Roth IRA in their name. You can contribute up to the amount they earned or the annual limit ($7,000), whichever is lower.

Q: Are there stimulus checks coming for seniors in 2026?A: There are discussions about a potential payment (rumored around $1,390) for low and middle-income individuals in 2026, but this is not yet confirmed. If it happens, Social Security recipients likely won’t need to file extra paperwork to receive it.

Transcript:

00:01 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your financial woes. 00:07 She’s the how-to girl. 00:09 It’s the Doctor Friday show. 00:15 If you have a question for Dr. Friday, call her now. 00:17 737-WWTN. 00:19 That’s 737-9986. 00:23 So here’s your host, financial counselor, and tax consultant, Dr. 00:27 Friday. 00:30 G’day, I’m Dr. Friday, and the doctor is in the house. 00:34 We are here live in studio and we are going to be talking about planning for 2025. 00:42 some of the things that came in with the one big beautiful bill, making sure that we understand maybe some of these uh child tax credits that are coming up 00:51 When they expire, when they change. 00:53 If you’ve got questions, you can certainly join our show at 615-737-9986-615-737. 01:04 9986 taking your calls talking about my favorite subject, which is taxes and what’s going to qualify and what’s not going to qualify. 01:15 Hopefully gets the bottom of a couple of the questions I’ve been asked uh during this last week or so, just simple questions about IRAs converting them, what the um 01:26 marginal tax rates are, things like that. 01:28 So we can actually make some good decisions on capital gains. 01:32 If you sold something, if it’s over. 01:34 um you know 139,000 under 139 if you’re married filing separately the you know 119 or single 01:42 what that means, how that works, and what that’s going to do for all of us. 01:46 So if you want to join the show, you can