Dr. Friday Radio Show – February 8, 2025

On this episode of the Dr. Friday Radio Show, Dr. Friday tackles key tax season concerns, from handling 1099 discrepancies to adoption tax credits. She also answers listener questions about property tax freezes, Social Security taxation, and dealing with IRS notices. Tune in for expert tax tips and real-world scenarios to keep you informed and prepared this tax season.

Topics Covered:

• Tax Season Prep: Ensuring you have all your W-2s, 1099s, and other necessary documents before filing.
• 1099 Income Mismatches: What to do when a 1099 doesn’t match what you received in the bank.
• Adoption Tax Credit: Eligibility and how to claim up to $16,810 in 2024 for adoption expenses.
• Dependent Care Tax Considerations: Qualifying conditions for claiming an elderly parent or adult child.
• Property Sale and Taxes: How escrow delays affect when you owe taxes on home sale proceeds.
• Head of Household Filing Status: Who qualifies and how it can increase deductions.
• IRS Notices & Disputed 1099s: Steps to take when the IRS claims you owe taxes for income you never received.
• Medical Reimbursement & HSAs: Reporting rules for HSA distributions and tax-free employer medical stipends.
• Social Security & Taxes: Income limits before Social Security becomes taxable and filing requirements.
• Property Tax Freeze for Seniors: How homeowners on limited income may qualify for property tax relief.
• Extensions & Tax Payments: Why filing an extension doesn’t delay your tax payment deadline.

Transcript

00:00-00:03 G’day, I’m Dr. Friday and the doctor is in the house. 00:04-00:09 And if you want to join our show on this beautiful Saturday right before the Super Bowl, you certainly can. 00:09-00:14 You can join us at 615-737-9986. 00:15-00:19 615-737-9986. 00:19-00:23 Taking your calls. Talking about my favorite subject, which is taxes, which is what I’m working on all weekend. 00:24-00:29 But it’s also the time to think about what you’re going to be needing to organize, right? 00:29-00:34 It’s time for you to think, okay, so have I received all of my W-2s? 00:35-00:36 Did you work any part-time jobs? 00:36-00:41 Did someone send you a 1099, but it doesn’t match what you actually put in the bank. 00:41-00:46 Sometimes that happens, you know, sometimes depending on when they paid you. 00:46-00:51 I had a situation where one of my clients said, well, I didn’t get the check until January 4th, 00:51-00:53 but they mailed it and it was posted. 00:53-00:57 I mean, theoretically, it was dated December 21 or something like that, 21st. 00:58-01:02 So the 1099 was higher than they expected. 01:03-01:03 And that’s fine. 01:04-01:06 They wrote the check at the time that they received it, 01:06-01:10 and you’re cashing it at the time that you’re going to pay it. 01:10-01:12 Now, here’s the biggest problem. 01:12-01:17 If that is your only payment, and the IRS gets a check for more, 01:17-01:21 and you report less, you need to put explanation in there why. 01:22-01:25 The 1099, there is a way of doing that, but you want to explain it, 01:25-01:28 because otherwise the IRS is going to think you understated your income 01:28-01:30 based on what somebody had reported. 01:30-01:32 So it’s important that you address it. 01:32-01:34 You don’t just let it slide and then you turn around 01:35-01:38 and you’re like, oh, wow, what do I need to do on this 01:39-01:39 or whatever. 01:39-01:43 You need to make sure that you have all that information 01:44-01:48 because again, the IRS is going to match that information 01:49-01:51 and if you don’t hav