1 00:00:00,120 --> 00:00:02,880 Speaker 1: Welcome to How the Money. I'm Joel and I am Matt, 2 00:00:03,040 --> 00:00:26,759 Speaker 1: and today we're debunking common tax misconceptions. Oh yeah, taxes man. 3 00:00:27,080 --> 00:00:29,840 Speaker 1: You know, taxes are are probably on everybody's mind right 4 00:00:29,840 --> 00:00:33,400 Speaker 1: about now, not because they're actually due tomorrow. Traditionally they're 5 00:00:33,400 --> 00:00:36,639 Speaker 1: doing on a course, but everyone got that automatic one 6 00:00:36,680 --> 00:00:39,800 Speaker 1: month I R S extension, but even still April fifteen 7 00:00:39,960 --> 00:00:42,360 Speaker 1: is it's kind of synonymous with tax day. So that's 8 00:00:42,360 --> 00:00:45,240 Speaker 1: what we're talking about today. And you know, another reason 9 00:00:45,479 --> 00:00:47,680 Speaker 1: we are covering taxes is because you know, when there's 10 00:00:47,720 --> 00:00:49,800 Speaker 1: something that you only do once a year, you always 11 00:00:49,800 --> 00:00:51,159 Speaker 1: come back to it and you're like, okay, how does 12 00:00:51,200 --> 00:00:53,279 Speaker 1: this work again? You know, like whether it's maybe your 13 00:00:53,320 --> 00:00:56,000 Speaker 1: pressure washer, where you're like, how does this work again? 14 00:00:56,040 --> 00:00:58,080 Speaker 1: Like what like what order am I supposed? Okay turn 15 00:00:58,120 --> 00:01:00,200 Speaker 1: the water on first, then start the thing up? You know, 16 00:01:00,280 --> 00:01:02,800 Speaker 1: like there's like an order of where put the cleaning solution? Yeah, 17 00:01:02,840 --> 00:01:04,440 Speaker 1: like what's what's the ratio? I feel like the same 18 00:01:04,440 --> 00:01:06,199 Speaker 1: thing is is true of our taxes as well, because 19 00:01:06,200 --> 00:01:07,840 Speaker 1: it's something is you know, when it's not something that 20 00:01:07,880 --> 00:01:11,240 Speaker 1: you do every single day, basically you forget about it. 21 00:01:11,280 --> 00:01:13,720 Speaker 1: And obviously that's probably one of the reasons why they 22 00:01:13,760 --> 00:01:18,280 Speaker 1: switched to the an expanded standard deduction. But there are 23 00:01:18,319 --> 00:01:20,320 Speaker 1: some things that we need to keep in mind, regardless 24 00:01:20,600 --> 00:01:22,640 Speaker 1: of the fact that many people only look at their 25 00:01:22,640 --> 00:01:25,160 Speaker 1: taxes once a year. Yeah, I'm glad we're talking about 26 00:01:25,200 --> 00:01:27,640 Speaker 1: taxes today, dedicating an entire episode to it. Yeah, I 27 00:01:27,680 --> 00:01:30,800 Speaker 1: think you know, taxes are complex and people feel bufuddled 28 00:01:31,000 --> 00:01:33,039 Speaker 1: by them, and so they probably a lot of our 29 00:01:33,040 --> 00:01:35,720 Speaker 1: listeners probably have you know, a few things that they've 30 00:01:35,720 --> 00:01:37,880 Speaker 1: heard that have crept in over the years in regards 31 00:01:37,880 --> 00:01:40,160 Speaker 1: to the way that they now think about taxes that 32 00:01:40,319 --> 00:01:42,120 Speaker 1: just aren't true. And so today on the show, we're 33 00:01:42,160 --> 00:01:45,240 Speaker 1: gonna cover the most popular misconceptions when it comes to taxes, 34 00:01:45,280 --> 00:01:47,320 Speaker 1: and we're gonna try to clear those things up. That's right. 35 00:01:47,360 --> 00:01:48,880 Speaker 1: But first, man, I wanted to share a little story 36 00:01:48,880 --> 00:01:52,440 Speaker 1: with you, which is so we talked about on the show. Honestly, 37 00:01:52,480 --> 00:01:55,440 Speaker 1: maybe it's pretty close to a year ago. I purchased 38 00:01:55,520 --> 00:01:58,080 Speaker 1: a new bike for myself use some of my stimmy 39 00:01:58,120 --> 00:02:01,800 Speaker 1: money from last spring, and uh, I looked around. One 40 00:02:01,800 --> 00:02:03,520 Speaker 1: of the best deals I could find on that particular 41 00:02:03,720 --> 00:02:05,280 Speaker 1: bike that I was looking for was at Ari I 42 00:02:05,800 --> 00:02:08,120 Speaker 1: and so I was getting ready to make the purchase there. Uh, 43 00:02:08,160 --> 00:02:10,880 Speaker 1: and then I got hit with the sales the online 44 00:02:10,880 --> 00:02:12,600 Speaker 1: sales pitch, which is, would you like to become an 45 00:02:12,600 --> 00:02:15,840 Speaker 1: ari I member for twenty bucks save ten percent? And 46 00:02:15,880 --> 00:02:18,239 Speaker 1: I was like, normally, I'm not a huge fan of 47 00:02:18,440 --> 00:02:20,480 Speaker 1: membership clubs, right like where you gotta you've gotta pay 48 00:02:20,520 --> 00:02:25,200 Speaker 1: money to be a part of whatever membership whatever club Costco. Sadly, 49 00:02:25,480 --> 00:02:27,440 Speaker 1: it's it's one of the reasons I don't like Costco. Yeah, 50 00:02:27,440 --> 00:02:29,280 Speaker 1: I don't. I don't like that kind of upfront money. 51 00:02:29,320 --> 00:02:32,200 Speaker 1: But in this instance, in that one purchase, it was 52 00:02:32,240 --> 00:02:35,040 Speaker 1: going to more than pay for the cost of the membership. 53 00:02:35,360 --> 00:02:38,480 Speaker 1: And with ari I specifically, Dude, it's a lifetime membership. 54 00:02:38,480 --> 00:02:39,960 Speaker 1: I didn't realize that, Like in my mind it was 55 00:02:39,960 --> 00:02:42,600 Speaker 1: sort of like this annual thing, but no, you pay 56 00:02:42,880 --> 00:02:45,720 Speaker 1: one time, you become a member for life. Uh. And 57 00:02:45,760 --> 00:02:47,400 Speaker 1: in my case, not only did I get you know, 58 00:02:47,440 --> 00:02:51,160 Speaker 1: that immediate savings or mentally I got that immediate savings. 59 00:02:51,160 --> 00:02:53,200 Speaker 1: It turns out actually didn't receive that until a couple 60 00:02:53,200 --> 00:02:54,640 Speaker 1: of weeks ago. That's why I wanted to talk about 61 00:02:54,639 --> 00:02:56,800 Speaker 1: it now, because I totally forgot about it. Dividend. You 62 00:02:56,840 --> 00:02:58,480 Speaker 1: get that once a year, right, Yeah, it's a yearly 63 00:02:58,520 --> 00:03:00,680 Speaker 1: payout and uh, you know, I guess they wait until 64 00:03:00,720 --> 00:03:03,680 Speaker 1: they calculate Q four, I guess, and then they send 65 00:03:03,720 --> 00:03:06,399 Speaker 1: sending out the checks to all the different members. But yeah, 66 00:03:06,400 --> 00:03:08,359 Speaker 1: a card showed up in the mail saying how much 67 00:03:08,520 --> 00:03:10,840 Speaker 1: money I had on that thing? Uh, And it reminded 68 00:03:10,880 --> 00:03:12,799 Speaker 1: me like, oh, yeah, of course, like I bought the 69 00:03:12,800 --> 00:03:14,800 Speaker 1: bike last year, and so I guess I wanted to 70 00:03:14,800 --> 00:03:17,560 Speaker 1: mention that to folks because that is for maybe folks 71 00:03:17,560 --> 00:03:21,000 Speaker 1: out there like me who are adverse to paying for 72 00:03:21,040 --> 00:03:24,080 Speaker 1: different memberships or clubs things like that. Um, something like 73 00:03:24,120 --> 00:03:26,280 Speaker 1: ari I mean it could really pay and plus I've 74 00:03:26,280 --> 00:03:28,480 Speaker 1: got you know, sixties seventy bucks sitting there waiting for me, 75 00:03:28,960 --> 00:03:31,239 Speaker 1: uh to use. The only downside you do have to 76 00:03:31,320 --> 00:03:32,720 Speaker 1: use it at ari e I. It's not like it's 77 00:03:32,919 --> 00:03:35,160 Speaker 1: cash in your hand. Yeah. Yeah, Well ari I has 78 00:03:35,200 --> 00:03:37,600 Speaker 1: been one of the best retailers in America for a 79 00:03:37,640 --> 00:03:39,840 Speaker 1: lot of years. To the rock Fature people, well like 80 00:03:39,920 --> 00:03:42,960 Speaker 1: that they offer good products and services h and at 81 00:03:42,960 --> 00:03:46,400 Speaker 1: the same time too a great return policy. So yeah, 82 00:03:46,400 --> 00:03:48,800 Speaker 1: I feel like this is not an ad for ari I, 83 00:03:48,840 --> 00:03:51,080 Speaker 1: but ari is like truly, like just an awesome company 84 00:03:51,160 --> 00:03:54,040 Speaker 1: or not sponsored at all by a right, but but yeah, yeah, 85 00:03:54,160 --> 00:03:56,600 Speaker 1: I think it's in particular if you're buying something at 86 00:03:56,720 --> 00:03:58,400 Speaker 1: r e I and you plan on doing it again, 87 00:03:58,520 --> 00:04:01,520 Speaker 1: like getting the twenty dollar membership, the lifetime membership makes 88 00:04:01,520 --> 00:04:03,760 Speaker 1: a whole lot of sense. That's right. Let's go ahead 89 00:04:03,760 --> 00:04:06,240 Speaker 1: and introduce the beer that we're gonna share on this episode. 90 00:04:06,280 --> 00:04:09,280 Speaker 1: You and I are drinking a beer called sponsho Via 91 00:04:09,720 --> 00:04:12,080 Speaker 1: and that is a collaboration between j Wakefield Brewing and 92 00:04:12,320 --> 00:04:15,480 Speaker 1: Arcane Ale Works. Looking forward to enjoying this one with 93 00:04:15,560 --> 00:04:17,359 Speaker 1: you and talking about it at the end of the 94 00:04:17,360 --> 00:04:20,080 Speaker 1: episode after we talk about taxes. All right, let's talk 95 00:04:20,120 --> 00:04:22,520 Speaker 1: about taxes. Everybody's favorite subject. Let's do it. Well, yeah, 96 00:04:22,560 --> 00:04:25,800 Speaker 1: I mean taxes. There this fixed certainty in our lives, right, 97 00:04:26,040 --> 00:04:29,800 Speaker 1: almost as certain as death, but basically just as certain. 98 00:04:30,440 --> 00:04:32,880 Speaker 1: But they can also be confusing and matt um. When 99 00:04:32,880 --> 00:04:34,719 Speaker 1: I think about confusing things, I think about some of 100 00:04:34,720 --> 00:04:37,000 Speaker 1: the films that Christopher Nolan has put out right, like 101 00:04:37,160 --> 00:04:39,760 Speaker 1: seriously I had to watch as a second time, Like 102 00:04:40,040 --> 00:04:42,320 Speaker 1: is Leonardo DiCaprio in the real world or in the 103 00:04:42,400 --> 00:04:44,800 Speaker 1: dream world? At the end of inception, like when his 104 00:04:45,160 --> 00:04:47,680 Speaker 1: token is still spending whatever. Man, I think that's the 105 00:04:47,680 --> 00:04:49,120 Speaker 1: real world, that's the whole point. But I don't know, 106 00:04:49,320 --> 00:04:51,240 Speaker 1: you know, so I feel like I had to watch 107 00:04:51,279 --> 00:04:53,320 Speaker 1: it again to try to figure that out. Something else 108 00:04:53,440 --> 00:04:56,480 Speaker 1: that has always baffled me is how maybe like certain 109 00:04:56,480 --> 00:04:58,840 Speaker 1: folks became famous in the first place, like Paris Hilton 110 00:04:58,880 --> 00:05:01,279 Speaker 1: back in the day where Guy Fietti, Like, you know, 111 00:05:02,320 --> 00:05:03,599 Speaker 1: that's one of the things. When I see a headline 112 00:05:03,600 --> 00:05:05,920 Speaker 1: about what Guy Fietti's up to, I'm like, why who cares? 113 00:05:06,000 --> 00:05:09,760 Speaker 1: Like cares about right? I mean, like D D D 114 00:05:10,400 --> 00:05:12,279 Speaker 1: is a great show, but like I don't care what 115 00:05:12,279 --> 00:05:14,080 Speaker 1: he's up to it in three times, okay? And like 116 00:05:14,160 --> 00:05:18,120 Speaker 1: one more thing that confuses me putting together anything from IKEA. Uh, 117 00:05:18,160 --> 00:05:19,560 Speaker 1: like I'm bound to get lost at some point in 118 00:05:19,600 --> 00:05:21,960 Speaker 1: the process, even if I'm following the directions, and I'm 119 00:05:22,000 --> 00:05:24,479 Speaker 1: probably gonna, you know, make at least one mistake while 120 00:05:24,480 --> 00:05:27,599 Speaker 1: I'm doing right. Uh. But that that's like enough about 121 00:05:27,640 --> 00:05:30,080 Speaker 1: how easily I cant confused. It's actually confusing to me 122 00:05:30,480 --> 00:05:32,400 Speaker 1: because I mean, come on, you know, this is another 123 00:05:32,440 --> 00:05:35,000 Speaker 1: Scandinavian country that you hail from. Your right if anybody 124 00:05:35,040 --> 00:05:38,839 Speaker 1: should excel at Ikea directions with no words and odd 125 00:05:38,880 --> 00:05:42,080 Speaker 1: figurine who were putting these together only an Alan wrench. 126 00:05:42,480 --> 00:05:44,120 Speaker 1: It should be me, that's true. That's right. Yeah. So 127 00:05:44,120 --> 00:05:46,080 Speaker 1: I don't know why I get so easily baffled at 128 00:05:46,080 --> 00:05:48,680 Speaker 1: Ikea stuff, but I do. Um. But today we're gonna 129 00:05:48,760 --> 00:05:52,240 Speaker 1: tackle a subject that's even more perplexing than than those topics, 130 00:05:52,279 --> 00:05:54,960 Speaker 1: and it's taxes. And I think, basically, Matt, like, what 131 00:05:55,000 --> 00:05:57,839 Speaker 1: we don't want is people walking around with jankie stuff 132 00:05:57,839 --> 00:06:00,719 Speaker 1: in their head about such an important subject, assuming things 133 00:06:00,720 --> 00:06:03,520 Speaker 1: about taxes and their taxes in particular that could potentially 134 00:06:03,520 --> 00:06:06,640 Speaker 1: even cost them money. Um, that also aren't true. That's right. 135 00:06:06,720 --> 00:06:08,480 Speaker 1: And before we kind of keep talking about taxes, I'm 136 00:06:08,520 --> 00:06:12,520 Speaker 1: still thinking about Guy Fieri, which makes me think about 137 00:06:12,560 --> 00:06:14,680 Speaker 1: like it's all on the Food Network, right, which is 138 00:06:14,720 --> 00:06:16,760 Speaker 1: on which is a part of like Discovery plus that's 139 00:06:16,760 --> 00:06:20,680 Speaker 1: like another one of these streaming platforms another uh something 140 00:06:20,720 --> 00:06:22,719 Speaker 1: else you can subscribe to, you know, but because what 141 00:06:22,720 --> 00:06:25,600 Speaker 1: they've got going for them as well is h GTV. Right, 142 00:06:26,000 --> 00:06:27,800 Speaker 1: My mom's all about it, dude. I mean, it's it's 143 00:06:27,839 --> 00:06:31,479 Speaker 1: like it's catint for like homeowners or potential homeowners out there. 144 00:06:32,200 --> 00:06:34,560 Speaker 1: I don't see how they're not gonna crush because there's 145 00:06:34,600 --> 00:06:36,720 Speaker 1: so much content, you know, like just like slap anybody 146 00:06:36,800 --> 00:06:38,960 Speaker 1: up there, anybody gets a show. But I saw like 147 00:06:39,000 --> 00:06:41,240 Speaker 1: a commercial or an ad for Discovery Plus recently and 148 00:06:41,240 --> 00:06:42,839 Speaker 1: I was like, oh my gosh, this guy Fie on it. 149 00:06:43,160 --> 00:06:44,880 Speaker 1: I can't remember if it was, but I was looking 150 00:06:44,920 --> 00:06:47,000 Speaker 1: at the lineup and I couldn't believe how many different 151 00:06:47,040 --> 00:06:49,120 Speaker 1: shows that they have. They're gonna do pretty well. Yeah. 152 00:06:49,200 --> 00:06:51,000 Speaker 1: But you know, so we're we're talking about taxes. We're 153 00:06:51,000 --> 00:06:52,640 Speaker 1: talking about making sure that we have the right, you know, 154 00:06:52,680 --> 00:06:55,880 Speaker 1: the right tax information in our brains. And again, since 155 00:06:55,880 --> 00:06:58,240 Speaker 1: it's the day before taxes are traditionally due here in 156 00:06:58,240 --> 00:07:00,800 Speaker 1: the US, we figured now is the perfect time to 157 00:07:00,920 --> 00:07:03,960 Speaker 1: clear a few of these misconceptions up. You know, some 158 00:07:04,000 --> 00:07:07,159 Speaker 1: folks in Texas and Oklahoma have until June because of 159 00:07:07,200 --> 00:07:09,279 Speaker 1: the those awful winter storms. But for all the rest 160 00:07:09,279 --> 00:07:11,200 Speaker 1: of you procrastinators out there, you need to make sure 161 00:07:11,240 --> 00:07:13,520 Speaker 1: you get on it. Come on, make it happen. Five 162 00:07:13,560 --> 00:07:15,440 Speaker 1: your taxes, U Joel. You know you mentioned like that 163 00:07:15,480 --> 00:07:19,400 Speaker 1: quote unquote Janakie, stuff like floating around in our heads, 164 00:07:19,400 --> 00:07:21,440 Speaker 1: like that's often what we base our decisions on. You know, 165 00:07:21,520 --> 00:07:23,480 Speaker 1: like if if we don't have, say like a tax 166 00:07:23,520 --> 00:07:26,360 Speaker 1: professional in our life, if we have a misconception that 167 00:07:26,400 --> 00:07:28,680 Speaker 1: we're basing those decisions on, it's really important for us 168 00:07:28,680 --> 00:07:30,120 Speaker 1: to clear it up so that we can make the 169 00:07:30,160 --> 00:07:33,320 Speaker 1: best in legal tax moves as we move forward. And 170 00:07:33,360 --> 00:07:35,040 Speaker 1: so we want to make sure that we're all making 171 00:07:35,040 --> 00:07:37,680 Speaker 1: decisions based on what's true instead of what we've heard 172 00:07:37,920 --> 00:07:41,000 Speaker 1: maybe a friend say, or maybe what somebody on you know, 173 00:07:41,040 --> 00:07:43,960 Speaker 1: TikTok what they wrote wrote a song about. Although there 174 00:07:43,960 --> 00:07:46,080 Speaker 1: are you know, there is some good information on TikTok. Yeah, 175 00:07:46,200 --> 00:07:49,000 Speaker 1: there are some people uditioning some decent financial advice on TikTok. 176 00:07:49,000 --> 00:07:50,520 Speaker 1: I'm not hating on all of them. It's not like 177 00:07:50,560 --> 00:07:54,520 Speaker 1: the proven medium of podcasting, which has been around for years, 178 00:07:54,560 --> 00:07:57,640 Speaker 1: which only super high professional people who know exactly what 179 00:07:57,640 --> 00:08:00,880 Speaker 1: they're talking about can be a part of. Right. Well, um, yeah, 180 00:08:01,000 --> 00:08:03,680 Speaker 1: there is obviously some goofy financial stuff floating around on 181 00:08:03,680 --> 00:08:06,240 Speaker 1: TikTok these days, but but also too in podcasts. There 182 00:08:06,240 --> 00:08:08,440 Speaker 1: are some podcasts out there that you need to be 183 00:08:08,520 --> 00:08:10,480 Speaker 1: wary of, and you might not be getting the kind 184 00:08:10,520 --> 00:08:13,560 Speaker 1: of advice that you need, and you might be led astray. 185 00:08:13,600 --> 00:08:16,240 Speaker 1: But all right, let's jump into the tax misconceptions, Matt. 186 00:08:16,360 --> 00:08:18,680 Speaker 1: Let's start with the first one, and this one is 187 00:08:18,800 --> 00:08:20,760 Speaker 1: if I file an extension, I don't have to pay 188 00:08:20,800 --> 00:08:23,559 Speaker 1: anything to the I R S until October. I've heard 189 00:08:23,600 --> 00:08:26,040 Speaker 1: about that, yeah, And we wanted to lead off with 190 00:08:26,080 --> 00:08:28,840 Speaker 1: that one because there might be some folks who are thinking, oh, man, 191 00:08:28,880 --> 00:08:30,440 Speaker 1: I don't want to have to deal with my taxes 192 00:08:30,560 --> 00:08:33,000 Speaker 1: over the next month. Maybe I should just file extension 193 00:08:33,160 --> 00:08:34,880 Speaker 1: right now, and if I do that, then I won't 194 00:08:34,880 --> 00:08:37,600 Speaker 1: have to pay any money. But that's just not the case, right. 195 00:08:37,600 --> 00:08:39,600 Speaker 1: It would be nice to hang onto your money for 196 00:08:39,640 --> 00:08:41,599 Speaker 1: a few more months, not give any to the I 197 00:08:41,720 --> 00:08:43,880 Speaker 1: R S, keep that money in your own account, earning 198 00:08:43,920 --> 00:08:48,240 Speaker 1: interest the entire time. But sadly this isn't true. Even 199 00:08:48,320 --> 00:08:50,560 Speaker 1: if you have filed an extension and are waiting to 200 00:08:50,600 --> 00:08:54,120 Speaker 1: file your return until this fall, you still have to 201 00:08:54,120 --> 00:08:55,800 Speaker 1: determine what you owe the I R S and you 202 00:08:55,840 --> 00:08:58,080 Speaker 1: have to pay them now, and if you don't do that, 203 00:08:58,120 --> 00:09:01,040 Speaker 1: you're gonna owe penalties in addition into the tax when 204 00:09:01,040 --> 00:09:03,319 Speaker 1: you do end up getting around to paying the money 205 00:09:03,480 --> 00:09:05,240 Speaker 1: that you owe the r S later. On this fall 206 00:09:05,280 --> 00:09:06,960 Speaker 1: in October. Yeah, so I'm sure a lot of folks 207 00:09:06,960 --> 00:09:08,960 Speaker 1: are thinking, well, what's even the point of filing an 208 00:09:08,960 --> 00:09:11,520 Speaker 1: extension if if I still have to pay? Right? But 209 00:09:11,760 --> 00:09:13,320 Speaker 1: you know, making sure that you don't screw this up 210 00:09:13,400 --> 00:09:16,360 Speaker 1: is important because you will owe half a percent in 211 00:09:16,360 --> 00:09:19,439 Speaker 1: interest every single month that you are late in paying 212 00:09:19,480 --> 00:09:21,280 Speaker 1: the I R S what you owe, So make sure 213 00:09:21,400 --> 00:09:23,640 Speaker 1: that you keep that in mind, Joel. Next up on 214 00:09:23,679 --> 00:09:26,080 Speaker 1: the list is maybe a saying or a phrase that 215 00:09:26,120 --> 00:09:28,319 Speaker 1: people kind of subscribe to, which is the thought that 216 00:09:28,760 --> 00:09:32,480 Speaker 1: tax refunds are great. Uh. You know, if you're getting 217 00:09:32,480 --> 00:09:35,400 Speaker 1: thousands of dollars back in your taxes, it feels so good, right, 218 00:09:36,440 --> 00:09:38,760 Speaker 1: But you could have been using that money all year 219 00:09:38,800 --> 00:09:41,520 Speaker 1: long to save more money, you know, whether you're paying 220 00:09:41,520 --> 00:09:44,000 Speaker 1: off debt, or maybe you're investing in yourself, or you 221 00:09:44,000 --> 00:09:46,959 Speaker 1: can put more money in tax advantage accounts to actually 222 00:09:47,000 --> 00:09:49,400 Speaker 1: grow your wealth. Uh. And so some folks will say 223 00:09:49,440 --> 00:09:51,559 Speaker 1: that the problem here is that you've given uh an 224 00:09:51,600 --> 00:09:53,760 Speaker 1: interest free loan to the government, and that does make 225 00:09:53,800 --> 00:09:56,600 Speaker 1: some sense, right, But the real problem is that when 226 00:09:56,640 --> 00:09:59,040 Speaker 1: you get money and it feels like a windfall, right, 227 00:09:59,080 --> 00:10:01,240 Speaker 1: that's it's not something you're necessarily counting on maybe kind 228 00:10:01,240 --> 00:10:03,760 Speaker 1: of feels like a lottery ticket. You're you're more apt 229 00:10:03,800 --> 00:10:07,079 Speaker 1: to spend it recklessly. A lump sum tax refund is 230 00:10:07,080 --> 00:10:10,040 Speaker 1: more of an emotional and behavioral money problem than just 231 00:10:10,160 --> 00:10:12,480 Speaker 1: then like I lost eight dollars and twenty cents and 232 00:10:12,520 --> 00:10:15,320 Speaker 1: interest to the I R S problem, right, yeah, And 233 00:10:15,360 --> 00:10:18,599 Speaker 1: I'm considering how low savings rates are right now, the 234 00:10:18,640 --> 00:10:20,520 Speaker 1: fact that you've got a thousand dollar tax refund. It's 235 00:10:20,559 --> 00:10:22,600 Speaker 1: not about the interest that you lost like that that's 236 00:10:22,600 --> 00:10:25,440 Speaker 1: almost negligible, right that this very little money, But it 237 00:10:25,559 --> 00:10:27,600 Speaker 1: is that idea like I just got a thousand bucks, 238 00:10:27,679 --> 00:10:29,719 Speaker 1: what am I gonna blow it on? That's the kind 239 00:10:29,760 --> 00:10:31,360 Speaker 1: of mindset that I think a lot of people have 240 00:10:31,440 --> 00:10:33,440 Speaker 1: when it comes to getting a tax refund. But at 241 00:10:33,480 --> 00:10:35,040 Speaker 1: the same time, on the flip side of the coin, Matt, 242 00:10:35,240 --> 00:10:38,719 Speaker 1: if you're smart about using that lump sum to immediately 243 00:10:38,760 --> 00:10:41,520 Speaker 1: boost your savings or to max out your wrath account, 244 00:10:41,800 --> 00:10:45,720 Speaker 1: then getting a tax refund isn't all that bad because, 245 00:10:45,760 --> 00:10:47,640 Speaker 1: as we said, it's not really costing you all that 246 00:10:47,760 --> 00:10:50,920 Speaker 1: much in actual money. The interest free loan thing is 247 00:10:50,920 --> 00:10:53,680 Speaker 1: is overblown. Just be intentional with the refund that you 248 00:10:53,720 --> 00:10:56,040 Speaker 1: are getting back, but we're also fans of trying to 249 00:10:56,080 --> 00:10:58,400 Speaker 1: minimize any refund that you might owe the I R 250 00:10:58,520 --> 00:11:00,600 Speaker 1: S so that you can, like Matt said, use that 251 00:11:00,640 --> 00:11:03,720 Speaker 1: money every single week, every month during the year, as 252 00:11:03,760 --> 00:11:05,720 Speaker 1: opposed to getting it in a big lump song. And 253 00:11:05,760 --> 00:11:07,000 Speaker 1: the best way to do this, the best way to 254 00:11:07,000 --> 00:11:09,120 Speaker 1: figure this out is to use the I R S 255 00:11:09,200 --> 00:11:12,360 Speaker 1: is tax withholding calculator so that you don't go overboard 256 00:11:12,679 --> 00:11:15,040 Speaker 1: in either direction. Well, Joel, I'm not note. I'm actually 257 00:11:15,040 --> 00:11:17,960 Speaker 1: proud to say that I actually owe the state a 258 00:11:17,960 --> 00:11:19,840 Speaker 1: little bit of money and I'm going to get a 259 00:11:19,880 --> 00:11:22,280 Speaker 1: small refund back from the federal government. So I feel 260 00:11:22,280 --> 00:11:24,120 Speaker 1: like I'm kind of like like straddling the fence a 261 00:11:24,160 --> 00:11:26,360 Speaker 1: little bit perfect Like it's tough to nail it, you know, 262 00:11:26,400 --> 00:11:28,600 Speaker 1: Like it's in particular when you're self employed and you 263 00:11:28,640 --> 00:11:30,680 Speaker 1: have no idea of like what you're gonna be making 264 00:11:30,679 --> 00:11:32,520 Speaker 1: that year, it's tough to make estimated payments and get 265 00:11:32,520 --> 00:11:35,400 Speaker 1: anywhere near you know, zero, which is like the most 266 00:11:35,440 --> 00:11:37,439 Speaker 1: ideal spot. But yeah, I feel like I got bragging 267 00:11:37,520 --> 00:11:39,560 Speaker 1: rights maybe for the next year. Yeah, you do, you do? 268 00:11:39,880 --> 00:11:43,800 Speaker 1: I think the nerd is bragging rights. Ever, Well, I'll 269 00:11:43,840 --> 00:11:45,160 Speaker 1: let you say it as often as you want on 270 00:11:45,160 --> 00:11:47,880 Speaker 1: the show, and also to just everybody out there who 271 00:11:47,920 --> 00:11:50,760 Speaker 1: should pat me on my head. Good for you, but 272 00:11:52,240 --> 00:11:54,040 Speaker 1: uh it, well, just just all of our listeners who 273 00:11:54,080 --> 00:11:56,520 Speaker 1: are getting a tax refund, who maybe just recently found 274 00:11:56,520 --> 00:11:58,600 Speaker 1: out or we're going to find out really soon that 275 00:11:58,640 --> 00:12:01,960 Speaker 1: they are owed ex refund um. Just be intentional with that, 276 00:12:02,320 --> 00:12:04,360 Speaker 1: and you know, do what you can next year to 277 00:12:04,400 --> 00:12:06,960 Speaker 1: maybe work towards having a smaller one. But don't treat 278 00:12:07,000 --> 00:12:09,120 Speaker 1: it like found money, like money that just fell into 279 00:12:09,120 --> 00:12:11,600 Speaker 1: your lap. It's your money, um, and so we want 280 00:12:11,640 --> 00:12:14,160 Speaker 1: you to use even a lump some like a tax 281 00:12:14,160 --> 00:12:16,480 Speaker 1: refund wisely. So make sure you don't like, just go 282 00:12:16,520 --> 00:12:18,480 Speaker 1: out and buy around for the bar or something like that. 283 00:12:18,559 --> 00:12:21,000 Speaker 1: You know that's awsome. I don't know, you're supporting your 284 00:12:21,040 --> 00:12:22,960 Speaker 1: local restaurant or a bar. If by doing that and 285 00:12:23,000 --> 00:12:26,240 Speaker 1: all the patrons there, everybody will everybody's best friend if 286 00:12:26,240 --> 00:12:28,600 Speaker 1: you do that. That's that's right, all right, Joel. We've 287 00:12:28,600 --> 00:12:31,080 Speaker 1: got several other tax misconceptions that we're gonna get to, 288 00:12:31,120 --> 00:12:33,040 Speaker 1: including what that you hear I feel like all the time, 289 00:12:33,320 --> 00:12:35,520 Speaker 1: which is, oh, you can just write it off. We'll 290 00:12:35,520 --> 00:12:37,959 Speaker 1: get to that one plus many others right after the break. 291 00:12:47,600 --> 00:12:50,600 Speaker 1: All Right, we're back. We're talking about common tax misconceptions, Matt. 292 00:12:50,640 --> 00:12:52,560 Speaker 1: Let's get to one that you and I've heard a 293 00:12:52,600 --> 00:12:56,040 Speaker 1: lot of small business owners say throughout the years that, uh, 294 00:12:56,080 --> 00:12:58,000 Speaker 1: and this one's about tax right offs, like you mentioned 295 00:12:58,160 --> 00:13:00,840 Speaker 1: before the break, and it's that mindset of I'll just 296 00:13:00,880 --> 00:13:02,960 Speaker 1: buy it because I can write it off. Yeah why not. 297 00:13:03,080 --> 00:13:04,880 Speaker 1: You're like, I need a new laptop maybe, or maybe 298 00:13:04,920 --> 00:13:07,800 Speaker 1: I don't even need one, but I can write it off, 299 00:13:08,080 --> 00:13:10,400 Speaker 1: So why not. Maybe we need new mics for the podcast, 300 00:13:10,600 --> 00:13:13,560 Speaker 1: let's write it off exactly. They're basically free then, right, 301 00:13:13,880 --> 00:13:17,240 Speaker 1: Well not really so. And it makes me think of 302 00:13:17,360 --> 00:13:20,440 Speaker 1: met this scene from The Princess Bride where Innigo Montoya says, 303 00:13:20,640 --> 00:13:22,480 Speaker 1: you keep using that word. I do not think it 304 00:13:22,480 --> 00:13:24,840 Speaker 1: means what you think it means. And I think it 305 00:13:24,880 --> 00:13:28,480 Speaker 1: can be easy to fall into that trap of thinking 306 00:13:28,520 --> 00:13:31,400 Speaker 1: that we can justify an expense, especially when we're talking 307 00:13:31,400 --> 00:13:33,720 Speaker 1: about a business here. Uh, and then it's not actually 308 00:13:33,760 --> 00:13:37,520 Speaker 1: costing us anything. Unfortunately, that's not how tax write offs work. 309 00:13:37,720 --> 00:13:40,520 Speaker 1: If it did, our studio would be filled with microphones, 310 00:13:41,840 --> 00:13:44,800 Speaker 1: lots and lots of very expensive microphones. In reality, we've 311 00:13:44,840 --> 00:13:47,120 Speaker 1: got like some of the cheapest mics you can buy, 312 00:13:47,240 --> 00:13:49,680 Speaker 1: but man, they work really well. But okay, so let's 313 00:13:49,679 --> 00:13:52,000 Speaker 1: talk about then in reality, like how it actually works, 314 00:13:52,679 --> 00:13:54,680 Speaker 1: which is that when you quote quote write something off, 315 00:13:54,679 --> 00:13:58,640 Speaker 1: you're actually deducting that expense from your taxable income and 316 00:13:58,679 --> 00:14:00,800 Speaker 1: then you're your only taxed on what's left. Right, So, 317 00:14:00,840 --> 00:14:03,520 Speaker 1: for instance, to keep things simpler, let's say you're in 318 00:14:03,679 --> 00:14:06,160 Speaker 1: fifty thou dollars and you had an expense last year 319 00:14:06,160 --> 00:14:08,280 Speaker 1: of one thousand dollars for that that laptop joll that 320 00:14:08,320 --> 00:14:10,960 Speaker 1: you mentioned, So you're now only going to be paying 321 00:14:11,000 --> 00:14:13,400 Speaker 1: taxes on the remaining forty nine thousand dollars. You're not 322 00:14:13,400 --> 00:14:16,160 Speaker 1: getting that computer for free, but you are paying less 323 00:14:16,200 --> 00:14:19,120 Speaker 1: overall taxes. And so again let's keep things over really 324 00:14:19,160 --> 00:14:22,160 Speaker 1: simple here and say that your tax rate was that well, 325 00:14:22,240 --> 00:14:24,720 Speaker 1: that means by deducting your taxable income by that one 326 00:14:24,720 --> 00:14:27,400 Speaker 1: thousand dollars, you're not sitting in the government two dollars, 327 00:14:27,400 --> 00:14:30,480 Speaker 1: which is of that one thousand dollars. So you know, 328 00:14:30,480 --> 00:14:32,920 Speaker 1: maybe a better way to think about quote unquote right 329 00:14:32,920 --> 00:14:35,560 Speaker 1: off is the ability to purchase something with a you know, 330 00:14:35,800 --> 00:14:38,200 Speaker 1: with a discount basically like you're getting something on sale 331 00:14:38,440 --> 00:14:42,000 Speaker 1: at whatever your tax rate happens to be, you know off, 332 00:14:42,280 --> 00:14:44,600 Speaker 1: like that's that is pretty good, but it's not free. 333 00:14:44,680 --> 00:14:47,240 Speaker 1: And oftentimes that can be the mindset is that we're 334 00:14:47,240 --> 00:14:49,320 Speaker 1: not really paying for this, and no, you are paying 335 00:14:49,320 --> 00:14:51,200 Speaker 1: for it, but you are getting a decent deal on 336 00:14:51,200 --> 00:14:53,240 Speaker 1: it because you're using it to benefit your business. Yeah, 337 00:14:53,240 --> 00:14:55,440 Speaker 1: so it's not caused to go overboard when it comes 338 00:14:55,440 --> 00:14:57,800 Speaker 1: to buying stuff just so you can take the deduction. Um, 339 00:14:57,840 --> 00:15:00,520 Speaker 1: but it is nice because you can essentially a discount 340 00:15:00,560 --> 00:15:02,760 Speaker 1: on something that you need for your business. But that 341 00:15:02,800 --> 00:15:04,680 Speaker 1: being said, Matt, let's talk about what that means for 342 00:15:04,680 --> 00:15:07,600 Speaker 1: people's personal tax returns because you know, most of our 343 00:15:07,640 --> 00:15:10,400 Speaker 1: listeners are not business owners and they're just individuals in 344 00:15:10,440 --> 00:15:13,520 Speaker 1: the UH. So when they're thinking about writing something off, well, 345 00:15:13,680 --> 00:15:17,040 Speaker 1: you're gonna need to itemize your deductions in order to 346 00:15:17,080 --> 00:15:20,240 Speaker 1: write anything off. But most Americans take the standard deductions, 347 00:15:20,240 --> 00:15:22,960 Speaker 1: which means they won't be able to write anything off 348 00:15:23,000 --> 00:15:26,320 Speaker 1: on their taxes. It's estimated that around nine of folks 349 00:15:26,520 --> 00:15:29,760 Speaker 1: are taking the standard deduction, and honestly, there's there's not 350 00:15:29,800 --> 00:15:32,520 Speaker 1: really a surprise because the standard deduction was more than 351 00:15:32,560 --> 00:15:35,200 Speaker 1: doubled from a couple of years ago to twelve four 352 00:15:35,280 --> 00:15:38,400 Speaker 1: hundred if you're single, or eight hundred dollars if you're 353 00:15:38,440 --> 00:15:40,320 Speaker 1: married filing jointly. It's a lot of money. That's a 354 00:15:40,360 --> 00:15:43,000 Speaker 1: lot of money. That's a huge standard deduction. So the 355 00:15:43,120 --> 00:15:46,240 Speaker 1: likelihood that you're going to exceed that and itemize your 356 00:15:46,240 --> 00:15:49,520 Speaker 1: deductions is is unlikely for most folks. So that just 357 00:15:49,560 --> 00:15:51,240 Speaker 1: means that if you want to be able to deduct 358 00:15:51,360 --> 00:15:54,400 Speaker 1: specific items like your mortgage interest, your student loan interest, 359 00:15:54,560 --> 00:15:58,200 Speaker 1: charitable giving, if you think all that totals more than 360 00:15:58,240 --> 00:16:00,520 Speaker 1: what you'd get with the standard deduction, that's when you're 361 00:16:00,520 --> 00:16:03,440 Speaker 1: gonna want to itemize, that's right. Uh. And so kind 362 00:16:03,440 --> 00:16:05,080 Speaker 1: of on that note too, you know, there actually isn't 363 00:16:05,160 --> 00:16:08,040 Speaker 1: a standard deduction when it comes to businesses, so if 364 00:16:08,040 --> 00:16:11,400 Speaker 1: you're a small business owner, you gotta itemize all your expenses. Uh. 365 00:16:11,480 --> 00:16:13,480 Speaker 1: And one of the deductions that a lot of folks 366 00:16:13,560 --> 00:16:17,200 Speaker 1: might be wondering about is the home office deduction. Many 367 00:16:17,200 --> 00:16:19,480 Speaker 1: folks think that because they started to work from home 368 00:16:19,520 --> 00:16:22,000 Speaker 1: full time last year, or because maybe they have a 369 00:16:22,040 --> 00:16:24,720 Speaker 1: desk in a room, that they can deduct that entire 370 00:16:24,760 --> 00:16:27,360 Speaker 1: space on their taxes. But it needs to be the 371 00:16:27,400 --> 00:16:31,480 Speaker 1: primary location of the business, uh, and that needs to 372 00:16:31,520 --> 00:16:33,560 Speaker 1: be the only thing that that space is used for 373 00:16:33,800 --> 00:16:36,920 Speaker 1: in order to qualify for that deduction. So it won't 374 00:16:36,920 --> 00:16:39,520 Speaker 1: apply to you unless you're self employed, if you're an 375 00:16:39,600 --> 00:16:42,480 Speaker 1: independent contractor or a gig worker. And you know, the 376 00:16:42,520 --> 00:16:47,760 Speaker 1: tax law overhaul of late eliminated the home office deduction 377 00:16:48,120 --> 00:16:53,400 Speaker 1: for most traditional employees from eighteen through and this is 378 00:16:53,400 --> 00:16:54,960 Speaker 1: from the I r S website, but they say that 379 00:16:55,240 --> 00:16:58,240 Speaker 1: employees who received a paycheck or a W two exclusively 380 00:16:58,360 --> 00:17:01,920 Speaker 1: from an employer are not eligible for the deduction, even 381 00:17:02,000 --> 00:17:04,960 Speaker 1: if they are currently working from home. So unfortunately, that's 382 00:17:04,960 --> 00:17:06,719 Speaker 1: where things stand right now. A lot of folks are 383 00:17:06,720 --> 00:17:09,320 Speaker 1: thinking that they can take that home office deduction, but 384 00:17:09,440 --> 00:17:12,240 Speaker 1: not if you are a traditional W two earner. Yeah, 385 00:17:12,320 --> 00:17:15,639 Speaker 1: and obviously you know, this was put in place before 386 00:17:15,800 --> 00:17:18,679 Speaker 1: the pandemic um and not great timing for a lot 387 00:17:18,680 --> 00:17:21,320 Speaker 1: of people because you might have been able under previous 388 00:17:21,400 --> 00:17:23,680 Speaker 1: I r S rules to take some sort of a deduction, 389 00:17:23,920 --> 00:17:26,040 Speaker 1: but not now. All right, man, let's get to the 390 00:17:26,080 --> 00:17:29,800 Speaker 1: next misconception that we hear. Uh. Basically a tax delusion 391 00:17:29,840 --> 00:17:32,640 Speaker 1: that I've seen people believe, and it's if I get 392 00:17:32,680 --> 00:17:35,080 Speaker 1: a raise, I'm actually gonna lose money, so I don't 393 00:17:35,119 --> 00:17:37,720 Speaker 1: want to make more. The assumption is that earning more 394 00:17:37,760 --> 00:17:40,120 Speaker 1: money is going to push somebody into a higher tax bracket, 395 00:17:40,320 --> 00:17:42,399 Speaker 1: and therefore you're gonna owe a whole lot more in 396 00:17:42,480 --> 00:17:46,040 Speaker 1: tax because of the increased paycheck that you're gonna be getting. 397 00:17:46,240 --> 00:17:49,040 Speaker 1: There are lots of people that assume that their tax 398 00:17:49,080 --> 00:17:52,520 Speaker 1: bracket is equivalent to their tax rate. But that's just 399 00:17:52,560 --> 00:17:54,640 Speaker 1: not true, right, because we live in a country where 400 00:17:54,680 --> 00:17:57,960 Speaker 1: there are marginal tax rates, because we have a progressive 401 00:17:58,000 --> 00:18:00,760 Speaker 1: tax system in the United States, the dollars you earn 402 00:18:00,840 --> 00:18:02,879 Speaker 1: or tax at a lower rate than the dollars you 403 00:18:02,920 --> 00:18:05,240 Speaker 1: earned later in the year. It's actually getting a raise 404 00:18:05,520 --> 00:18:07,840 Speaker 1: isn't bad for you. It's it's it's only good. Yeah, 405 00:18:07,840 --> 00:18:10,720 Speaker 1: And that's actually called your effective tax rate. And that's 406 00:18:10,720 --> 00:18:12,760 Speaker 1: a far better judge for most folks to see what 407 00:18:12,800 --> 00:18:15,160 Speaker 1: they're paying in tax each year. Because you know, let's 408 00:18:15,160 --> 00:18:18,240 Speaker 1: say you're single and you make eight thousand dollars annually. 409 00:18:18,480 --> 00:18:21,159 Speaker 1: You might think that you're incent tax bracket, and you 410 00:18:21,160 --> 00:18:23,480 Speaker 1: know what, three thousand dollars of your income will be 411 00:18:23,560 --> 00:18:25,680 Speaker 1: taxed at that rate, But huge chunks of your income 412 00:18:25,680 --> 00:18:29,320 Speaker 1: will be taxed at and at twelve percent, respectively, so 413 00:18:29,480 --> 00:18:33,040 Speaker 1: you're effective tax rate won't. It'll actually kind of be 414 00:18:33,119 --> 00:18:36,680 Speaker 1: somewhere closer to So you know what, go ahead, get 415 00:18:36,680 --> 00:18:38,920 Speaker 1: that raise. It won't bump you up into a new 416 00:18:38,960 --> 00:18:41,720 Speaker 1: bracket uh and cost you a ton of money. Uh. 417 00:18:41,760 --> 00:18:43,919 Speaker 1: You know, and even if some of those increased earnings 418 00:18:43,960 --> 00:18:46,280 Speaker 1: will be taxed at a higher rate, you will still 419 00:18:46,320 --> 00:18:48,840 Speaker 1: easily be coming out ahead by growing your income. This 420 00:18:48,880 --> 00:18:50,439 Speaker 1: is an instance where you know you don't want to 421 00:18:50,440 --> 00:18:52,080 Speaker 1: like chop off your nose in order to spite your 422 00:18:52,080 --> 00:18:53,800 Speaker 1: face just because you don't want to pay that additional 423 00:18:54,000 --> 00:18:56,600 Speaker 1: higher rate of tax on those additional dollars. I feel 424 00:18:56,640 --> 00:18:58,080 Speaker 1: like there was a dad saying, my dad, you say 425 00:18:58,119 --> 00:19:00,000 Speaker 1: that to me a life, I find myself saying more 426 00:19:00,000 --> 00:19:02,120 Speaker 1: of those things, like the older I get, yeah, I'm 427 00:19:02,119 --> 00:19:04,360 Speaker 1: a dad. I want to know where that's saying came 428 00:19:04,359 --> 00:19:06,920 Speaker 1: from too. But is there actually somebody who did that? 429 00:19:06,960 --> 00:19:08,880 Speaker 1: I don't know. I don't know, maybe in some sort 430 00:19:08,920 --> 00:19:11,000 Speaker 1: of fairy tale or something. I'm gonna look that one 431 00:19:11,040 --> 00:19:13,159 Speaker 1: up maybe after we get done with this episode. But 432 00:19:13,440 --> 00:19:15,840 Speaker 1: all right, so let's get into the next big misconception 433 00:19:16,119 --> 00:19:18,440 Speaker 1: that people have when it comes to taxes. And here's 434 00:19:18,480 --> 00:19:20,480 Speaker 1: one that could cause people a lot of money. Matt. Uh, 435 00:19:20,520 --> 00:19:22,360 Speaker 1: this is a lot of heartache and a lot of heartache. Yeah, 436 00:19:22,359 --> 00:19:23,919 Speaker 1: a lot of back and forth with the I R S. 437 00:19:24,040 --> 00:19:26,520 Speaker 1: That's never fun. This one is if I can't afford 438 00:19:26,520 --> 00:19:28,080 Speaker 1: to pay the tax I owe, I don't need to 439 00:19:28,119 --> 00:19:31,480 Speaker 1: file my taxes at all. And this is something Matt, 440 00:19:31,520 --> 00:19:34,480 Speaker 1: I've heard over the years and people wonder like, well, 441 00:19:34,520 --> 00:19:36,720 Speaker 1: why should I file my taxes if I can't pay 442 00:19:36,760 --> 00:19:38,760 Speaker 1: the bill? It seems like a waste of time, right, 443 00:19:39,000 --> 00:19:41,400 Speaker 1: If I can't also send them the money that's due, 444 00:19:41,680 --> 00:19:44,439 Speaker 1: why do I even bother filing? And in actuality, you 445 00:19:44,440 --> 00:19:46,800 Speaker 1: have to file your taxes even if you can't pay 446 00:19:46,800 --> 00:19:49,400 Speaker 1: the tax you Oh, and if not, you're gonna owe 447 00:19:49,440 --> 00:19:51,919 Speaker 1: more in the end, because the I R S can 448 00:19:51,960 --> 00:19:55,040 Speaker 1: assess a failure to file penalty that can increase your 449 00:19:55,080 --> 00:19:58,440 Speaker 1: tax bill even more than it originally was. The fee 450 00:19:58,560 --> 00:20:01,040 Speaker 1: is literally four and a half percent per month that 451 00:20:01,119 --> 00:20:04,600 Speaker 1: you're late, up to a total of Yeah, so the 452 00:20:04,680 --> 00:20:07,800 Speaker 1: failure to file penalty and the failure to pay can 453 00:20:07,840 --> 00:20:10,399 Speaker 1: add up to almost fifty percent if you drag it 454 00:20:10,440 --> 00:20:13,840 Speaker 1: out that long. So even if you can't pay, file 455 00:20:13,880 --> 00:20:15,880 Speaker 1: your taxes. And even if you can't pay the full 456 00:20:15,920 --> 00:20:18,480 Speaker 1: amount of what you owe, pay what you can because 457 00:20:18,480 --> 00:20:21,040 Speaker 1: if not whatever you're unable to pay, you're gonna owe 458 00:20:21,080 --> 00:20:24,119 Speaker 1: increased penalties on that money, and that can really add up. 459 00:20:24,160 --> 00:20:25,880 Speaker 1: That's right, YOU'RENNA. You're gonna be paying off the nose. 460 00:20:26,240 --> 00:20:31,639 Speaker 1: That's another nose saying, not if you cut it off. Uh. 461 00:20:31,800 --> 00:20:33,159 Speaker 1: You know this kind of makes me think about like 462 00:20:33,200 --> 00:20:35,680 Speaker 1: the movies where like somebody owes a bookiees some money. 463 00:20:35,720 --> 00:20:38,439 Speaker 1: You know, like you can try running away, and if 464 00:20:38,440 --> 00:20:40,760 Speaker 1: you do that, they assume the worst. You know, they're 465 00:20:40,760 --> 00:20:42,400 Speaker 1: gonna find you and they're gonna hut you down. They're 466 00:20:42,400 --> 00:20:45,159 Speaker 1: gonna do something awful like like break your knees or 467 00:20:45,200 --> 00:20:48,280 Speaker 1: cut your nose off. Uh. And now you know, obviously 468 00:20:48,280 --> 00:20:50,520 Speaker 1: the i r S doesn't inflict physical harm on that 469 00:20:50,640 --> 00:20:54,320 Speaker 1: we know of, not yet, but it's important to note 470 00:20:54,359 --> 00:20:56,520 Speaker 1: that that the response you get is gonna be far superior. 471 00:20:56,480 --> 00:20:58,920 Speaker 1: It's gonna be way better when you stay in contact 472 00:20:58,960 --> 00:21:01,880 Speaker 1: with the I r S and follow those procedures. Even 473 00:21:01,920 --> 00:21:03,600 Speaker 1: if you don't have any money at all, they just 474 00:21:03,600 --> 00:21:05,320 Speaker 1: want to keep tabs on you. Yeah, yeah, And I 475 00:21:05,320 --> 00:21:07,520 Speaker 1: think that the Bookie reference is true, right, Like if 476 00:21:07,560 --> 00:21:08,800 Speaker 1: you go up to and you know, hey, I can't pay, 477 00:21:08,840 --> 00:21:11,119 Speaker 1: they're like, all right, well the juice is running right, Like, 478 00:21:11,240 --> 00:21:14,159 Speaker 1: so you're you're gonna owe them more, but they're like 479 00:21:14,240 --> 00:21:15,680 Speaker 1: rough you up a little bit. But yeah, they're not 480 00:21:15,680 --> 00:21:17,800 Speaker 1: gonna break your knees. Yeah, I mean they break your 481 00:21:17,840 --> 00:21:19,760 Speaker 1: knees and then you can't work exactly. They still want 482 00:21:19,760 --> 00:21:23,400 Speaker 1: to get paid. So there's that. Uh, it's probably not 483 00:21:23,440 --> 00:21:27,920 Speaker 1: a great reference, but referencing like nineties mobster movies like 484 00:21:28,000 --> 00:21:32,960 Speaker 1: Good Fellas, yeah, um. And to following those procedures means 485 00:21:33,000 --> 00:21:35,320 Speaker 1: signing up for an installment agreement with the I r 486 00:21:35,400 --> 00:21:37,240 Speaker 1: S to pay the tax you. Oh, you've got to 487 00:21:37,240 --> 00:21:39,600 Speaker 1: do that too. That's what it means. By like going 488 00:21:39,600 --> 00:21:41,040 Speaker 1: back to the Bookie and saying like, I don't have 489 00:21:41,080 --> 00:21:44,280 Speaker 1: the money yet. That's the equivalent of an installment agreement. 490 00:21:44,480 --> 00:21:47,320 Speaker 1: And if you owe like an insurmountable amount of tax, 491 00:21:47,359 --> 00:21:50,320 Speaker 1: you can attempt and offer and compromise which might allow 492 00:21:50,359 --> 00:21:52,320 Speaker 1: you to actually pay less than the full amount you owe. 493 00:21:52,560 --> 00:21:54,600 Speaker 1: But those can be a little difficult. The I r 494 00:21:54,680 --> 00:21:56,439 Speaker 1: S reviews every one of those, and you'll have to 495 00:21:56,440 --> 00:21:59,440 Speaker 1: meet certain criteria to qualify, and we would say too, 496 00:21:59,480 --> 00:22:02,440 Speaker 1: because this can be a complicated process, you might want 497 00:22:02,440 --> 00:22:04,639 Speaker 1: to consult a tax professional before giving it a go. 498 00:22:05,040 --> 00:22:07,480 Speaker 1: And giving it a go on your own is probably 499 00:22:07,520 --> 00:22:10,879 Speaker 1: ill advised. But basically, don't not file your taxes just 500 00:22:10,960 --> 00:22:13,520 Speaker 1: because you can't pay. That's a misconception that can cost 501 00:22:13,520 --> 00:22:15,639 Speaker 1: you dearly. That's right, all right, we're gonna get to 502 00:22:15,640 --> 00:22:18,640 Speaker 1: a few more misconceptions. Uh, We're gonna continue to attempt 503 00:22:18,640 --> 00:22:20,639 Speaker 1: to clear the air when it comes to taxes, including 504 00:22:20,640 --> 00:22:22,719 Speaker 1: we're gonna talk about audits. We're gonna get to that one, 505 00:22:22,760 --> 00:22:34,240 Speaker 1: plus a few others right after the break. All right, 506 00:22:34,240 --> 00:22:37,240 Speaker 1: we're back. We're talking about taxes, Matt. There's so much 507 00:22:37,440 --> 00:22:40,040 Speaker 1: that confuses people when it comes to taxes, and so 508 00:22:40,160 --> 00:22:42,119 Speaker 1: we wanted to clear up some of the biggest misconceptions. 509 00:22:42,160 --> 00:22:44,760 Speaker 1: That's what we're doing today. Let's keep going. The next 510 00:22:44,880 --> 00:22:48,040 Speaker 1: misconception we want to cover applies to married folks. A 511 00:22:48,080 --> 00:22:50,439 Speaker 1: lot of people assume that if they're married, they have 512 00:22:50,560 --> 00:22:54,199 Speaker 1: to file jointly with their spouse. No, you don't. You 513 00:22:54,240 --> 00:22:56,640 Speaker 1: can choose to file separately as a married couple if 514 00:22:56,640 --> 00:22:59,359 Speaker 1: you want. And although most folks choose to file together, 515 00:22:59,400 --> 00:23:01,840 Speaker 1: and that is then the best move from a tax standpoint. 516 00:23:02,080 --> 00:23:05,639 Speaker 1: For a really high percentage of married folks, filing jointly 517 00:23:05,960 --> 00:23:09,280 Speaker 1: just makes the most sense, um because filing separately, for instance, 518 00:23:09,400 --> 00:23:12,040 Speaker 1: that will disqualify you from getting the child tax Credit, 519 00:23:12,200 --> 00:23:14,000 Speaker 1: which is a pretty big one if you have kids, 520 00:23:14,280 --> 00:23:16,120 Speaker 1: and that's going to be an even bigger deal this year, 521 00:23:16,160 --> 00:23:19,159 Speaker 1: as the child tax credit has expanded from two thousand 522 00:23:19,160 --> 00:23:22,080 Speaker 1: dollars per child to three thousand dollars per child or 523 00:23:22,119 --> 00:23:26,080 Speaker 1: even thirty per younger child. And so changes like that 524 00:23:26,119 --> 00:23:28,840 Speaker 1: should make you think twice about your filing status and 525 00:23:28,840 --> 00:23:31,000 Speaker 1: maybe you need to change it, because that's a whole 526 00:23:31,040 --> 00:23:32,920 Speaker 1: lot of money you could be missing out on if 527 00:23:33,000 --> 00:23:36,119 Speaker 1: you're just filing the wrong way. That's true, man, you know, 528 00:23:36,160 --> 00:23:39,040 Speaker 1: but in some cases it does or it could make 529 00:23:39,080 --> 00:23:41,520 Speaker 1: more sense to file separately as a married couple. So, 530 00:23:41,560 --> 00:23:44,600 Speaker 1: for instance, let's say that one spouse has a lot 531 00:23:44,680 --> 00:23:47,560 Speaker 1: of student loan debt uh but also has a lower 532 00:23:47,600 --> 00:23:49,960 Speaker 1: salary UH. If if that were the case, then filing 533 00:23:49,960 --> 00:23:53,439 Speaker 1: separately could lower the necessary student loan payment and allow 534 00:23:53,480 --> 00:23:55,879 Speaker 1: for more of that student loan debt to ultimately be 535 00:23:56,000 --> 00:23:58,760 Speaker 1: forgiven so in that way, it's a little more strategic, right, 536 00:23:59,160 --> 00:24:01,440 Speaker 1: But filing separately also means that you won't be able 537 00:24:01,440 --> 00:24:03,639 Speaker 1: to deduct the interest you paid on the student loans, 538 00:24:04,040 --> 00:24:05,399 Speaker 1: so you know, you need to kind of weigh the 539 00:24:05,400 --> 00:24:07,639 Speaker 1: pros and the console. Oftentimes it kind of comes down to, 540 00:24:07,880 --> 00:24:10,280 Speaker 1: you know, it's a simple math problem. It's not simple, 541 00:24:10,480 --> 00:24:13,680 Speaker 1: but it's a math problem. That's maybe what we should say. Uh. 542 00:24:13,720 --> 00:24:16,320 Speaker 1: There are other situations too, like if your marriage is 543 00:24:16,359 --> 00:24:19,360 Speaker 1: maybe headed for a divorce, that you'll want to file separately. 544 00:24:19,560 --> 00:24:21,879 Speaker 1: But again, for most folks, filings together is going to 545 00:24:21,960 --> 00:24:24,680 Speaker 1: be the best route from a tax standpoint, even though 546 00:24:24,960 --> 00:24:27,080 Speaker 1: you don't have to take it truth all right, now, 547 00:24:27,119 --> 00:24:30,080 Speaker 1: let's get to the next one. This one is one 548 00:24:30,119 --> 00:24:33,600 Speaker 1: I'm sure you've heard before and people, Uh, this this 549 00:24:33,600 --> 00:24:35,560 Speaker 1: one has to do with debt. I've heard people say 550 00:24:35,680 --> 00:24:37,240 Speaker 1: I don't want to pay off a loan because I 551 00:24:37,280 --> 00:24:39,879 Speaker 1: can deduct the interest from my tax bill. Another another 552 00:24:39,960 --> 00:24:42,200 Speaker 1: deductions question here, but this sounds a little bit different. Yeah, 553 00:24:42,240 --> 00:24:45,800 Speaker 1: And so like, basically someone is thinking that they should 554 00:24:45,800 --> 00:24:47,680 Speaker 1: hold on to debt in their life because it gives 555 00:24:47,720 --> 00:24:50,800 Speaker 1: some a tax break. That's their assumption, but most people 556 00:24:50,840 --> 00:24:53,359 Speaker 1: actually overestimate the tax break that they get from a 557 00:24:53,440 --> 00:24:56,600 Speaker 1: home mortgage or other interest deductions let's say student loan 558 00:24:56,680 --> 00:25:00,720 Speaker 1: interest deduction that they're allowed. And in fact, because most Americans, 559 00:25:00,760 --> 00:25:02,720 Speaker 1: again like we said earlier in the episode, take the 560 00:25:02,760 --> 00:25:06,560 Speaker 1: standard deduction, under today's current tax rules, you aren't getting 561 00:25:06,840 --> 00:25:10,040 Speaker 1: any mortgage interest deduction. And so, you know what's happening 562 00:25:10,040 --> 00:25:12,159 Speaker 1: here is that a lot of folks might be thinking 563 00:25:12,280 --> 00:25:14,760 Speaker 1: the same way they had been for years, but due 564 00:25:14,760 --> 00:25:17,600 Speaker 1: to the law change, uh and the change in tax 565 00:25:17,640 --> 00:25:21,480 Speaker 1: code structure, that strategy has now become a misconception. The 566 00:25:21,560 --> 00:25:24,320 Speaker 1: mortgage interest deduction used to apply to a whole lot 567 00:25:24,359 --> 00:25:27,160 Speaker 1: more folks, and there's just very few people that actually 568 00:25:27,240 --> 00:25:31,320 Speaker 1: qualify that actually take a mortgage interest deduction on their 569 00:25:31,320 --> 00:25:33,920 Speaker 1: taxes these days. Yeah, so keeping debt around in order 570 00:25:33,960 --> 00:25:36,400 Speaker 1: to deduct that interest has Yeah, it's become a strategy 571 00:25:36,440 --> 00:25:38,919 Speaker 1: that no longer works for a lot of folks. And really, like, 572 00:25:38,920 --> 00:25:41,440 Speaker 1: it only makes sense to keep debt hanging around if 573 00:25:41,520 --> 00:25:45,160 Speaker 1: you're going to be incredibly proactive and intentional with that money, 574 00:25:45,200 --> 00:25:46,720 Speaker 1: you know, Like we're talking about some of the different 575 00:25:46,720 --> 00:25:50,399 Speaker 1: money gears, like creating an emergency fund, investing that money 576 00:25:50,760 --> 00:25:53,960 Speaker 1: saving for some important goals or life events. It's almost 577 00:25:54,000 --> 00:25:56,560 Speaker 1: less about the different numbers and the percentages, uh, And 578 00:25:56,600 --> 00:25:58,640 Speaker 1: it's more about the kind of mental shift that takes 579 00:25:58,640 --> 00:26:01,960 Speaker 1: place when you're able to wipe out that debt completely. 580 00:26:02,080 --> 00:26:04,159 Speaker 1: For some folks, when they're able to solely focus on 581 00:26:04,200 --> 00:26:07,120 Speaker 1: a single goal like a you know, like a laser, uh, 582 00:26:07,160 --> 00:26:08,960 Speaker 1: they're going to be able to achieve that much better. 583 00:26:09,000 --> 00:26:11,359 Speaker 1: So this is an instance where it helps and to 584 00:26:11,440 --> 00:26:13,439 Speaker 1: know what types of goals you need to you know, 585 00:26:13,520 --> 00:26:16,600 Speaker 1: set for yourself in order to be successful at achieving 586 00:26:16,600 --> 00:26:19,600 Speaker 1: those goals. Yeah, So if you're holding on to debt 587 00:26:19,960 --> 00:26:21,879 Speaker 1: on purpose, even though you can pay it off and 588 00:26:22,280 --> 00:26:24,600 Speaker 1: you know you should be paying it off because you're 589 00:26:24,680 --> 00:26:27,200 Speaker 1: assuming there's a tax break associated with it, we'll dig 590 00:26:27,200 --> 00:26:29,679 Speaker 1: a little further. Did you itemize your deductions last year? 591 00:26:29,720 --> 00:26:32,600 Speaker 1: Are you planning on itemizing your deductions this year? And 592 00:26:32,680 --> 00:26:35,439 Speaker 1: even so, even if you are itemizing, it might make 593 00:26:35,480 --> 00:26:37,639 Speaker 1: sense to pay off that debt anyway, because the tax 594 00:26:37,640 --> 00:26:40,000 Speaker 1: deduction isn't as big as you thought it was going 595 00:26:40,040 --> 00:26:42,280 Speaker 1: to be. And otherwise maybe you'd be tempted to spend 596 00:26:42,280 --> 00:26:43,919 Speaker 1: the money, right and we we certainly don't want that 597 00:26:43,920 --> 00:26:46,919 Speaker 1: to be the case. That's right. Another misconception, Matt, is 598 00:26:46,960 --> 00:26:50,119 Speaker 1: people being scared about getting audited. I don't know if 599 00:26:50,160 --> 00:26:52,520 Speaker 1: it's like eighties movies that have us thinking that the 600 00:26:52,520 --> 00:26:53,800 Speaker 1: I R S is is going to come to our 601 00:26:53,840 --> 00:26:55,840 Speaker 1: home and just like terrorize our families or something like 602 00:26:55,880 --> 00:26:58,320 Speaker 1: that if we screwed up on our taxes. But that's 603 00:26:58,400 --> 00:27:00,760 Speaker 1: kind of like the bookie A K A I R. Yeah, 604 00:27:01,080 --> 00:27:03,240 Speaker 1: there's like some fear for people in that. And they're like, man, 605 00:27:03,480 --> 00:27:05,600 Speaker 1: they either think, one, I don't make enough money thinking 606 00:27:05,600 --> 00:27:08,400 Speaker 1: audited basically, like I make so little, they don't. They're 607 00:27:08,400 --> 00:27:09,800 Speaker 1: not gonna care about me, and I can do whatever 608 00:27:09,840 --> 00:27:12,280 Speaker 1: I want. Um, that's not a good way to think 609 00:27:12,320 --> 00:27:14,879 Speaker 1: about things. Uh. And other people would say I should 610 00:27:14,880 --> 00:27:17,080 Speaker 1: be really scared of getting audited, and they're freaking out 611 00:27:17,080 --> 00:27:19,679 Speaker 1: about every little thing because they think there's this just 612 00:27:19,800 --> 00:27:22,920 Speaker 1: high risk of being audited, and actually neither of those 613 00:27:22,920 --> 00:27:25,160 Speaker 1: things is true. First of all, the I R S 614 00:27:25,240 --> 00:27:27,399 Speaker 1: can audit you if you make ten thousand bucks or 615 00:27:27,680 --> 00:27:30,399 Speaker 1: ten million dollars right that they can still take a 616 00:27:30,400 --> 00:27:32,320 Speaker 1: look at your tax return and flag some stuff and 617 00:27:32,320 --> 00:27:35,000 Speaker 1: say that's not accurate. We need more information, and they 618 00:27:35,040 --> 00:27:37,000 Speaker 1: can go down that path with you, So there's no 619 00:27:37,080 --> 00:27:40,040 Speaker 1: guarantee that they're just gonna ignore you because you don't 620 00:27:40,119 --> 00:27:42,400 Speaker 1: make very much money. But before you start freaking out, 621 00:27:42,560 --> 00:27:44,760 Speaker 1: it's also worth noting that the I r S doesn't 622 00:27:44,800 --> 00:27:48,040 Speaker 1: audit that many returns. We're literally talking about half a 623 00:27:48,080 --> 00:27:51,679 Speaker 1: percent of overall returns, So they're very picky, they're very choosy. 624 00:27:51,760 --> 00:27:54,399 Speaker 1: They don't actually have all that much staff to be 625 00:27:54,480 --> 00:27:56,800 Speaker 1: able to do a lot of audits, so very few 626 00:27:56,800 --> 00:27:59,639 Speaker 1: people are getting audited. And then even more relief, if 627 00:27:59,640 --> 00:28:01,800 Speaker 1: you make less than two hundred thousand dollars, you haven't 628 00:28:01,840 --> 00:28:05,520 Speaker 1: even lesser likelihood of being audited, although like glaring errors 629 00:28:05,520 --> 00:28:07,280 Speaker 1: like we said, could still make you a target. If 630 00:28:07,280 --> 00:28:09,440 Speaker 1: you make a hundred thousand dollars a year and you're 631 00:28:09,440 --> 00:28:12,000 Speaker 1: doing a bunch of crazy stuff on your taxes, there 632 00:28:12,080 --> 00:28:13,879 Speaker 1: is a much higher likelihood that you are going to 633 00:28:13,920 --> 00:28:16,639 Speaker 1: be the person that's singled out foreign audit. That's right, man, 634 00:28:16,640 --> 00:28:18,199 Speaker 1: This guy says he's got twenty two kids and all 635 00:28:18,200 --> 00:28:20,800 Speaker 1: these social Security numbers are made up, Like that's not 636 00:28:20,840 --> 00:28:22,919 Speaker 1: gonna fly, Like, maybe we should audit that. Felon yea 637 00:28:23,240 --> 00:28:26,080 Speaker 1: not saying I tried that or anything but uh. And 638 00:28:26,160 --> 00:28:27,639 Speaker 1: you know to the idea too that you should be 639 00:28:27,680 --> 00:28:31,160 Speaker 1: scared of getting audited, like most audits are are fairly painless. 640 00:28:31,200 --> 00:28:34,600 Speaker 1: The most common version of an audit is called the 641 00:28:34,840 --> 00:28:37,840 Speaker 1: correspondence audit, or also it's also known as the male audit. 642 00:28:38,320 --> 00:28:40,640 Speaker 1: Is a it's it's just simply a letter asking for 643 00:28:40,680 --> 00:28:43,920 Speaker 1: some clarification on your income or on a deduction that 644 00:28:43,960 --> 00:28:46,880 Speaker 1: you took, and if you answer it in a satisfactory way, 645 00:28:47,200 --> 00:28:49,880 Speaker 1: that's the end of the audit. The end. So you know, 646 00:28:49,920 --> 00:28:52,760 Speaker 1: don't let the fear of an audit prevents you from 647 00:28:52,800 --> 00:28:55,200 Speaker 1: taking a deduction that you know that you're entitled to. 648 00:28:55,720 --> 00:28:58,520 Speaker 1: You can file your your returns with confidence. Yeah, I 649 00:28:58,560 --> 00:29:00,800 Speaker 1: think that's a good point to Matt, Like, if there's 650 00:29:00,920 --> 00:29:03,080 Speaker 1: something that you qualify for yet don't be afraid to 651 00:29:03,120 --> 00:29:05,640 Speaker 1: take advantage of it. You're not going to get audited 652 00:29:05,680 --> 00:29:07,440 Speaker 1: for playing by the rules. And if you make a 653 00:29:07,480 --> 00:29:09,920 Speaker 1: minor mistake and do get audited, it's in all likelihood 654 00:29:09,960 --> 00:29:12,160 Speaker 1: going to be the most painless audit of all the 655 00:29:12,440 --> 00:29:15,680 Speaker 1: mail audit where you're able to clarify that really simply, 656 00:29:15,920 --> 00:29:17,520 Speaker 1: and it's not something that most people need to worry 657 00:29:17,520 --> 00:29:20,520 Speaker 1: about unless you are, like you said, completely fudging things up, 658 00:29:20,560 --> 00:29:23,000 Speaker 1: and you're you're saying you're saying something like I do 659 00:29:23,120 --> 00:29:25,360 Speaker 1: have a bunch of kids that I don't actually have, 660 00:29:25,760 --> 00:29:27,720 Speaker 1: and there's a bunch of weird stuff on your return. 661 00:29:28,000 --> 00:29:30,360 Speaker 1: That's when you're gonna raise those chances. It's like, yeah, 662 00:29:30,360 --> 00:29:32,959 Speaker 1: I've claimed all my pets as dependents, uh, and I 663 00:29:33,000 --> 00:29:35,800 Speaker 1: would like child tax credit for them as well. You're 664 00:29:35,800 --> 00:29:38,280 Speaker 1: not allowed to do that, right, And so hopefully we 665 00:29:38,320 --> 00:29:40,400 Speaker 1: were able to debunk a few of the major tax 666 00:29:40,440 --> 00:29:43,680 Speaker 1: misconceptions in this episode. You know, if if you're in 667 00:29:43,760 --> 00:29:46,160 Speaker 1: real tax trouble, like we would recommend that you get 668 00:29:46,200 --> 00:29:48,800 Speaker 1: some professional help, right, if you've been contacted by their 669 00:29:48,800 --> 00:29:50,800 Speaker 1: I R s and they're looking at running a field 670 00:29:50,840 --> 00:29:53,520 Speaker 1: audit on you, you don't want those. That's where they 671 00:29:53,560 --> 00:29:55,200 Speaker 1: like they like show up at your house and like 672 00:29:55,200 --> 00:29:57,320 Speaker 1: set up camp. Yeah, that's bad news. And that's like 673 00:29:57,440 --> 00:29:59,200 Speaker 1: when you show up in court and you're like, I'm 674 00:29:59,240 --> 00:30:01,560 Speaker 1: gonna defend myself and the judges like, are you sure? 675 00:30:01,840 --> 00:30:04,120 Speaker 1: You should probably get some representation, And if there's a 676 00:30:04,160 --> 00:30:07,040 Speaker 1: field not involved, you should also get some representation. Things 677 00:30:07,040 --> 00:30:09,200 Speaker 1: get a lot more complicated than but you know, You 678 00:30:09,240 --> 00:30:11,240 Speaker 1: can also reach out to the I R S Taxpayer 679 00:30:11,280 --> 00:30:15,120 Speaker 1: Assistance or the taxpayer Advocate if you have bigger issues 680 00:30:15,320 --> 00:30:17,520 Speaker 1: and you're not totally sure how to proceed. But most 681 00:30:17,520 --> 00:30:19,520 Speaker 1: of the things that we mentioned today are are you know, 682 00:30:19,640 --> 00:30:21,360 Speaker 1: they're more in the good to know so that you 683 00:30:21,360 --> 00:30:23,160 Speaker 1: don't make a minor goof and run a foul of 684 00:30:23,160 --> 00:30:25,080 Speaker 1: the I R S category like these aren't gonna this 685 00:30:25,120 --> 00:30:27,120 Speaker 1: isn't you know, the end of the story for you. 686 00:30:27,520 --> 00:30:29,400 Speaker 1: If you make a small mistake out a lot of times, 687 00:30:29,560 --> 00:30:32,080 Speaker 1: you can easily remedy that mistake. And so that's why 688 00:30:32,120 --> 00:30:34,520 Speaker 1: we wanted to cover some of these misconceptions ahead of time. 689 00:30:34,560 --> 00:30:36,960 Speaker 1: And so, yeah, if you had any of these misconceptions, 690 00:30:36,960 --> 00:30:40,320 Speaker 1: hopefully they're cleared up and you can abide by the rules, 691 00:30:40,440 --> 00:30:42,240 Speaker 1: because not abiding by some of them could cost you 692 00:30:42,280 --> 00:30:44,680 Speaker 1: a lot of money in a lot of aggravation. All right, 693 00:30:44,800 --> 00:30:45,880 Speaker 1: let's get back to the beer that we had on 694 00:30:45,880 --> 00:30:48,160 Speaker 1: the show. This one's called sponso Via and it's by 695 00:30:48,240 --> 00:30:51,160 Speaker 1: Jay Wakefield and Arcane Ale Works or your thoughts on 696 00:30:51,200 --> 00:30:54,920 Speaker 1: this sour ale with strawberries, coconut marshmallows and lactose and 697 00:30:54,960 --> 00:30:57,840 Speaker 1: maybe it's called sponso Via instead of poncho via. Maybe 698 00:30:57,880 --> 00:31:00,600 Speaker 1: because it's spontaneously fermented. I don't know. It actually doesn't 699 00:31:00,600 --> 00:31:02,280 Speaker 1: say that here on the cane, but this one kind 700 00:31:02,280 --> 00:31:04,480 Speaker 1: of poured a nice strawberry kind of reddish orange color, 701 00:31:04,560 --> 00:31:07,920 Speaker 1: really pretty, uh, and it was super fruity, like big time. 702 00:31:08,080 --> 00:31:10,280 Speaker 1: I mean, like you cannot deny that there are strawberry 703 00:31:10,280 --> 00:31:13,320 Speaker 1: in here. Uh, coconut like less so like the coconut 704 00:31:13,360 --> 00:31:16,320 Speaker 1: and marshmallow, I got a lot of marshmallow. Really. Yeah, 705 00:31:16,320 --> 00:31:18,760 Speaker 1: I feel like I picked up on like marshmallow weight, 706 00:31:19,120 --> 00:31:21,440 Speaker 1: like like if it drank kind of fluffy. I don't 707 00:31:21,440 --> 00:31:23,920 Speaker 1: know what that means, but like I felt like I 708 00:31:24,080 --> 00:31:26,560 Speaker 1: was drinking something that was a little bit fluffier but 709 00:31:26,640 --> 00:31:28,959 Speaker 1: not I feel like not a lot of the marshmallow 710 00:31:29,200 --> 00:31:31,040 Speaker 1: sweetness that you know, that like that you would get 711 00:31:31,040 --> 00:31:32,880 Speaker 1: with like s'mores or something like. That's so funny because 712 00:31:32,880 --> 00:31:34,120 Speaker 1: I feel like I got a ton of sweet really, 713 00:31:34,480 --> 00:31:36,240 Speaker 1: I feel like it's the strawberry sweetness that I taste 714 00:31:36,240 --> 00:31:39,280 Speaker 1: that it's not like that candy sweetness. In my mind, 715 00:31:39,280 --> 00:31:40,640 Speaker 1: it's like, I don't know, I associate it more with 716 00:31:40,640 --> 00:31:43,840 Speaker 1: the strawberries because you get a good ripe strawberry so sweet, 717 00:31:43,880 --> 00:31:45,680 Speaker 1: that's true. Sadly though, on this one, I felt like 718 00:31:45,720 --> 00:31:47,520 Speaker 1: I got a little bit of like a chemical flavor. 719 00:31:47,560 --> 00:31:49,240 Speaker 1: I don't know if you were feeling that, Like, um, 720 00:31:49,560 --> 00:31:51,640 Speaker 1: I did like some of the vice, but there's this aftertaste. 721 00:31:51,640 --> 00:31:53,120 Speaker 1: It was a little off pudding, so what I would 722 00:31:53,160 --> 00:31:55,240 Speaker 1: call that? Like Initially I think I kind of chocolate 723 00:31:55,280 --> 00:31:57,280 Speaker 1: up to kind of like a like a pepperinus, but 724 00:31:57,440 --> 00:32:00,600 Speaker 1: really it's like a clove like flavor. I'm it really 725 00:32:00,600 --> 00:32:02,200 Speaker 1: does taste like, you know, like the clothes that you 726 00:32:02,240 --> 00:32:05,000 Speaker 1: like shove into a you know, New Year's Day ham 727 00:32:05,120 --> 00:32:07,320 Speaker 1: or whatever, Like when do people eat hams? I don't know, Christmas, 728 00:32:07,440 --> 00:32:11,080 Speaker 1: New Year's but it's it's got that Easter Really people 729 00:32:11,120 --> 00:32:14,280 Speaker 1: to Easter ham's. Yeah, yeah, I don't know, we don't 730 00:32:14,280 --> 00:32:17,479 Speaker 1: really have like a big Eastern meal in tradition, but 731 00:32:17,520 --> 00:32:20,280 Speaker 1: it totally has that flavor. It tastes like clothes to me. 732 00:32:20,800 --> 00:32:22,280 Speaker 1: Uh And so I'm not Yeah, I'm not sure if 733 00:32:22,280 --> 00:32:24,040 Speaker 1: that was intentional because it doesn't say anything about that 734 00:32:24,080 --> 00:32:26,640 Speaker 1: on here. But simultaneously, it wasn't like a necessarily a 735 00:32:26,680 --> 00:32:28,560 Speaker 1: big turn off for me. Yeah, I mean I thought 736 00:32:28,600 --> 00:32:30,280 Speaker 1: it was a really good beer, but I will say 737 00:32:30,600 --> 00:32:33,000 Speaker 1: the aftertaste left a little something to be desired for me. 738 00:32:33,160 --> 00:32:35,080 Speaker 1: So not my favorite that we found on the show, 739 00:32:35,120 --> 00:32:37,800 Speaker 1: but still strong. Still got to enjoy a craft beer 740 00:32:37,800 --> 00:32:39,800 Speaker 1: with you, buddy. And for listeners who once to find 741 00:32:39,800 --> 00:32:41,640 Speaker 1: our show notes up there, we'll have some of the 742 00:32:41,640 --> 00:32:44,080 Speaker 1: different resources that we mentioned during this episode, will link 743 00:32:44,120 --> 00:32:45,760 Speaker 1: to those and you can find those notes up at 744 00:32:45,800 --> 00:32:47,720 Speaker 1: how to money dot com. Al Right, well, that's gonna 745 00:32:47,720 --> 00:32:50,680 Speaker 1: do it for this episode. Until next time, Best Friends Out, 746 00:32:50,720 --> 00:33:02,960 Speaker 1: Best Friends Out, bo