Dr. Friday Radio Show – March 22, 2025

In this episode of The Dr. Friday Radio Show, Dr. Friday dives into the heart of tax season with critical updates, valuable guidance for filers, and answers to real listener questions. She covers everything from business tipping practices and tax bracket planning to BOIR confusion and capital gains insights—plus what to watch out for when trying to “save” on taxes with big purchases. Whether you’re a business owner, parent paying college tuition, or navigating retirement, there’s something here for you.

Topics Covered

• Tipping & Payroll Compliance
  • TN Dept. of Labor’s rules on tip handling by employers.
  • Federal law mandates tips belong solely to employees.
  • Risks for businesses using tips to supplement payroll.
• Filing Head of Household
  • When you can claim it (e.g., adult children, elderly parents).
  • Income thresholds and care requirements.
• Earned Income Credit Restrictions
  • Not available for those over 65 or under 22 (with exceptions).
• College Tuition & Tax Credits
  • Why higher-income families often miss out on education credits.
  • American Opportunity & Lifetime Learning Credit phaseouts.
  • Challenges with student loans and aid eligibility.
• Do You Need to File?
  • Elderly individuals and filing thresholds.
  • How to calculate whether Social Security income is taxable.
• BOIR (Beneficial Ownership Information Report) Update
  • Correction issued: Most U.S. small businesses no longer need to file under the Corporate Transparency Act.
• 2025 Gifting Limits
  • Increased to $19,000 per person without gift tax implications.
• Capital Gains Tax Brackets
  • Yes, 0% capital gains tax exists—but income limits apply.
  • Breakdown of thresholds for individuals, married couples, and trusts.
  • How the 3.8% Medicare surtax can sneak in.
• The Myth of ‘Buying to Save on Taxes’
  • Why spending $100,000 to save $16,000 in taxes isn’t wise unless the purchase is truly needed for business.
• Deadlines and Extensions
  • S-Corp and Partnership tax deadlines passed (March 15).
  • April 15 personal tax deadline approaching.
  • Benefits of filing an extension—even if you still file on time.
• Live Callers’ Questions
  • Can I claim my 28-year-old son as head of household?
  • Widowed caller unsure if she needs to file taxes.
  • What can higher-income parents do to lower taxable income while paying for college?
  • Donating a valuable historical item and using it to offset a Roth conversion.

Transcript

00:00-00:07 No, no, no, she’s not a medical doctor, but she can sure cure your tax problems or your financial woes. 00:07-00:10 She’s the how-to girl. It’s the Doctor Friday Show. 00:10-00:22 If you have a question for Doctor Friday, call her now, 737-WWTN. That’s 737-9986. 00:22-00:27 So here’s your host, financial counselor and tax consultant, Doctor Friday. 00:27-00:34 G’day, I’m Doctor Friday and the Doctor is in the house. 00:34-00:36 It is actually a gorgeous Saturday outside. 00:36-00:40 I stuck my head out a little bit, been working on taxes all morning. 00:40-00:43 I bet some of you have been working on your taxes, I am sure. 00:43-00:51 So if you’ve got questions concerning about how to file taxes, maybe you’ve run into something on your tax return and you weren’t sure how it works. 00:51-01:00 I’ve had some really interesting different situations coming up from, obviously the biggest is most people going, oh my gosh, I actually owe money. 01:00-01:03 And they weren’t prepared for it. 01:03-01:05 Sometimes it has to do with capital gains. 01:05-01:11 Normally it’s my self-employed, my business owners that come into play. 01:11-01:15 And I will say I had a really interesting phone call last night with an individual. 01:15-01:22 They’re not clients, but they were an individual that the Tennessee Department of Labor had come into their store. 01:22-01:26 And this is a store that does accept tips. 01:26-01:30 Well, their system does, even though the employees aren’t really paid based on tips. 01:30-01:37 But anyways, it’s really unique conversation because the state of Tennessee actually follows the federal tax laws. 01:37-01:41 They don’t really have their own on tipping in different situations like that. 01:41-01:44 And maybe a lot of you guys knew this. 01:44-01:49