Welcome to another episode of the Dr. Friday Radio Show! In this episode, Dr. Friday gives all the newest tax updates and answers the caller's questions:
Why You Need To File An ExtentionDo I Report My Stimulus Check As Income?Tax Extensions Expires October 15, 2021Go To Irs.gov To Find Your Stimulus CheckWhat Can I Deduct From Charitable Contributions?Tax Filing Deadline Is May 17, 2021Where can I Find My Tax Refund?How To E-File Your Tax ReturnsFile The 4868 Form for A ExtensionUnemployment Is Taxable IncomeDo You Need Help With Tax Representation?
and other caller's questions!
No, no, no, she's not a medical doctor, but she can sure cure your tax problems or your financial woes. She's the how-to girl. It's the Dr. Friday show. If you have a question for Dr. Friday, call her now at 615-737-9986. So here’s your host, financial counselor, and tax consultant, Dr. Friday.
Dr. Friday 0:30
Good day, I'm Dr. Friday and the doctor is in the house. It is the last weekend before tax day, a lot of people thought Friday was tax day, our phones went crazy. But it is actually Monday, so of all of you that may have procrastinates that last or didn't get ahold of somebody, or me, hopefully, I've returned everyone's phone calls or text texting at this point is probably the fastest. But extensions can still be made IRA payments can still be done on Monday. So you have until Monday to hit the button, pay the taxes. And remember, if you're filing an extension, it only extends the paperwork. So just means that if you owe money, filing an extension isn't going to stop that from happening. It's going to basically continue and if you don't file an extension and you owe money, you're going to have 5% per month. If you file an extension and owe money, then it only points to 5% per month. So there's a huge difference no matter what. So filing that extension.
Dr. Friday 1:34
Let me clarify the extension doesn't last for years, it does expire come October 15, 2021. So, people that come in a lot of times, they'll say, "Well, I file extensions every year," but they never filed taxes for the last 5, 10, 15 years. So you know you were good up until you pass the October 15 deadline. At that time, you just kind of fell off the radar. So very, very important to file an extension, you can go to irs.gov. There are some free ones on there. The 4868 is the form you're looking for. So if you have a tax form, and you're looking to file something, you can do that 4868 you can also go to irs.gov, click on pay, and you can either make a payment with a credit card or your bank account. That is now just kept in mind, if you're filing money and you file it under the 48 extension, that doesn't mean an extension has been filed. All it means is that you're making a payment with an extension. So you need to make sure you have electronically filed ideally, the 4868. If you owe money, put some of it towards it. Anything's going to be better than nothing. I understand it's difficult, but it is crazy. Alright, let's go ahead and hit the phone lines. We got Jim in my town of Smyrna. What's happened in Jim?
Hey, thank you for taking the call. Here's my question. My wife inherited an annuity from her aunt who passed last year. As far as filing tax, we took it and rolled it into another. I don't even know exactly what it was, but in the Merrill Lynch and they took it and put it into basically a tax-deferred product. So my question is when we're filing taxes, do we put this into our income tax?
Dr. Friday 3:29
Great question. I get it. So here's the deal. The year which we inherit something like an IRA or a 401k. I'm not too sure about an annuity, if it's in essence, it's in a tax-deferred account, she will have, I believe the law is 10 years to empty that out, she has to ta