Dr. Friday Radio Show – October 4, 2025

Dr. Friday is back in the house! After a couple of weeks away, she returns to tackle the most pressing financial questions. In this episode, Dr. Friday breaks down the crucial November 3rd tax deadline for 2024 returns and clarifies the rules around estimated tax payments for 2025. She also discusses the impacts of a potential government shutdown on IRS refunds, dives into the major changes from the “One Big Beautiful Bill,” including a massive increase in the SALT deduction and new, larger standard deductions for seniors. Later, she answers listener calls on everything from investing in mutual funds and inheriting IRAs to the best way to handle estate planning for your home.

Summary Points

• Final 2024 Tax Deadline: The deadline to file your extended 2024 tax return is November 3, 2025, due to a federal extension granted to all Tennessee counties.
• Estimated Tax Penalties: Dr. Friday clarifies that even with the filing extension, penalties can still apply for not making required estimated tax payments throughout 2024.
• 2025 Estimated Payments: For 2025, the first, second, and third quarter estimated tax payments are all due by the November 3rd deadline.
• Government Shutdown & IRS: A potential government shutdown could delay IRS tax refunds and halt progress on resolution cases, like offers in compromise, as many IRS divisions would be short-staffed.
• SALT Deduction Increase: The “One Big Beautiful Bill” increases the State and Local Tax (SALT) deduction from $10,000 to $40,400, a significant benefit for those with high property or state income taxes.
• Major Deduction Increase for Seniors: Seniors over 65 receiving Social Security will see a substantial standard deduction increase. A married couple will see their deduction rise to $46,700, and a single person’s will increase to $23,750.
• Tax Planning Opportunities: These larger deductions create room for strategic tax planning, such as performing larger Roth IRA conversions or selling stocks with capital gains at a lower tax impact.
• Inherited IRAs: A caller’s question highlights that inheriting an IRA now falls under new rules requiring the funds to be withdrawn within 10 years, which can create a higher tax burden for the beneficiary.
• Estate Planning for Your Home: Dr. Friday advises a caller not to put children on the deed to a house. Instead, using a will or, preferably, a trust ensures children inherit the property at a stepped-up basis, saving them from paying capital gains taxes if they sell it.

Episode FAQ

Q1: What is the final deadline to file my 2024 taxes if I filed an extension? Due to a federal disaster extension covering Tennessee, the final deadline to file your 2024 taxes is November 3, 2025.

Q2: I’m over 65. How much is my new standard deduction under the proposed “One Big Beautiful Bill”? If you are over 65 and receiving Social Security, the new standard deduction will be $23,750 for a single individual. For a married couple where both spouses are over 65 and on Social Security, the deduction will be $46,700.

Q3: I inherited my brother’s IRA. Do I have to take all the money out at once? Under the new laws, you are required to withdraw the entire balance of the inherited IRA within 10 years. This differs from the old rules that allowed you to stretch distributions over your lifetime.

Q4: Should I add my children to the deed of my house to make things easier when I pass away? No. Dr. Friday strongly advises against adding children to your deed. Doing so can eliminate the “step-up in basis,” which could create a large tax bill for your children if they sell the home. A will or a trust is the proper way to pass the property to them tax-free.

Transcript

00:01-00:07 No no no, she’s not a medical doctor, but she can sure cure your tax problems or your financial woes. 00:08-00:09 She’s the how-to girl. 00:09-00:10 It’s the Dr. 00:10-00:12 Friday show. 00:15-00:16 If you have a question for Dr. 00:16-00:17 Friday, call her now. 00:17-00:19 737-WWTN. 00:19-00:23 That’s 737-9986. 00:23-00:27 So here’s your host, financial counselor, and tax consultant, Dr. 00:27-00:28 Friday. 00:30-00:31 G’day, I’m Dr. 00:31-00:34 Friday and the doctor is in the house. 00:34-00:36 I played hooky the last couple weeks. 00:36-00:39 Some of my listeners obviously caught that when they said it was the same. 00:39-00:40 information though. 00:41-00:44 I am back