Dr. Friday Radio Show – September 6, 2025

On this rainy Saturday, Dr. Friday jumps right into critical tax information, starting with an urgent reminder about the upcoming September 15th deadline for S-Corps, Partnerships, and LLCs, which is not covered by the federal disaster extension. She then unpacks the major tax law changes coming in 2025, including a new senior deduction, tax-free tips and overtime, and a deduction for auto loan interest. Throughout the show, Dr. Friday answers a wide range of listener calls on topics from 1031 exchanges and Social Security earnings limits to fixing W-4 withholdings to avoid a surprise tax bill.

Key points from the show:

• Urgent Deadline: The federal disaster extension to November 3rd does NOT apply to S-Corporations, Partnerships, and LLCs that were on extension. Their filing deadline is still September 15th.
• 2024 Contributions Still Open: Individuals under the federal disaster extension have until November 3rd to make contributions to their SEP, traditional IRA, or Roth IRA for the 2024 tax year.
• New Senior Deduction (2025): Starting with the 2025 tax year, individuals over 65 may qualify for a $6,000 deduction, which will be added to their standard deduction to help reduce taxes on Social Security income. This is not a refundable credit.
• Tax-Free Tips (2025): A new law will make up to $25,000 in qualified tips deductible, though this phases out at higher income levels ($150,000 for single, $300,000 for married).
• Tax-Free Overtime (2025): The time-and-a-half portion of overtime pay will be non-taxable for W-2 employees from 2025 through 2028. Dr. Friday cautions that this likely won’t apply to 1099 workers.
• Auto Loan Interest Deduction (2025): A deduction of up to $10,000 for interest paid on a loan for a qualified, US-assembled personal vehicle will be available for loans originated after December 31, 2024.

Episode FAQ

Q1: I thought the federal disaster declaration extended all tax deadlines to November. Is my business tax return also extended? A: No. While the federal disaster extension moved the deadline for individual returns to November 3rd, it did not change the deadline for S-Corporations, Partnerships, and LLCs. Those returns are still due on September 15th.

Q2: I’m over 65. How do I get the new $6,000 tax credit for seniors? A: It is a $6,000 deduction, not a credit, and it begins with the 2025 tax year, not 2024. It will be added to the standard deduction for qualifying individuals over 65, which will lower your taxable income. You do not need to amend your 2024 return.

Q3: My wife started collecting Social Security at age 62 and still works. How much can she earn before her benefits are reduced? A: The annual earnings limit for those taking Social Security early is around $21,000. This limit applies only to earned income from a W-2 or 1099 job, not to distributions from pensions or 401(k)s.

Transcript

Announcer 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. Announcer 00:07-00:09 She’s the how-to girl. Announcer 00:09-00:13 It’s the Doctor Friday show. Announcer 00:14-00:15 If you have a Question for Dr. Announcer 00:15-00:16 Friday, call her now. Announcer 00:17-00:19 737-WWTN. Announcer 00:19-00:23 That’s 737-9986. Announcer 00:23-00:27 So here’s your host, financial counselor, and tax consultant, Dr. Announcer 00:27-00:28 Friday. Dr. Friday 00:29-00:31 G’day, I’m Dr. Dr. Friday 00:31-00:37 Friday, and the doctor is in the house on this very, very wet Saturday. Dr. Friday 00:38-00:42 Actually, uh my my yard needed it, so I’m kinda happy we had some of it. Dr. Friday 00:42-00:48 Maybe a little too much rain in the Spring Hill area, but All in all, can’t complain when you get what you ask for. Dr. Friday 00:48-00:53 So anyways, it’s a great Saturday to be listening to the radio, hopefully, and enjoying uh the Dr. Dr. Friday 00:54-01:09 Friday show So that being said, the first thing I wanted to hit, because I have had a number of phone calls that we all know, or at least by now, many of my listeners should know that we are under a federal disaster extension. Dr. Friday 01:09-01:12 That took place for anything that was extended after 4. Dr. Friday 01:13-01:13 8. Dr. Friday 01:13-01:23 So if you are an LLC that was due on 315, extended till 915, if you are a sub-s corporation. Dr. Friday 01:24-01:28 Originally due on 315 would have been extended till 915. Dr. Friday 01:29-01:33 These entities are not extended to the 11. Dr. Friday 01:33-01:34 3. Dr. Friday 01:34-01:37 So if you have not completed your partnership. Dr. Fr