CPA Mark Kohler discusses last-minute tax filing strategies with NBC San Diego anchors. He covers how to handle 1099 gig income, common write-offs, HSA and IRA contributions, and explains why the recent tax law changes won't affect this year's filing. The deadline is April 17.
Chapters
A lot of people are asking this question, or at least talking about it. Have you filed your taxes yet?
Such a fun question, right? It's something we all have to do but often dread doing. Here with us this morning to make sense of this time of year, we have Mark, who is a tax expert, cpa, and a number of other credentials to your resume. As I was looking. Long list there. Yes.
Like the Alphabet, apparently.
Dreaded too.
So you're not the enemy here. You're here to help. So tell us, let me ask you, what are the questions you're receiving? What are some of the big ones that people want to know? These.
Well, a lot of people want to know, is this new tax legislation going to affect your tax return and the filing process? The answer is no. It's business as usual. Just same way you've been filing your return or tackle it. Just go along the same path.
That's next year.
Yeah, next year you're going to feel it. Hopefully you've seen a little something in maybe your paycheck that was, you know, Congress's hope. But nothing changes on your tax return this year.
So the deadline is approaching. Do you. Is it time? Can you file an extension? What's the process for that? Are people. People asking those types of questions?
Yeah, and I think extensions are a great idea. If you're not totally prepared, get some software like Tax Layer run through it, get kind of an estimate of estimate of what you think you owe and send in a payment. But file an extension. You actually reduce your chances of an audit when you file an extension. A lot of people don't know that.
They think by filing an extension, it's triggering something.
Yeah, a lot of people stress out, oh, I gotta get my taxes done. Hey, if you're not ready, that's cool. Buy some time, do a little draft in the software, find out what you might owe and send in some money you don't want to end up owing late. There might be some penalties in interest, but take your time.
You know, a lot of people have a job and then they're like an independent contractor. They're driving for Lyft or Uber, doing some of these other apps so they can make money on the side. How does that play into filing your taxes?
Yes, this gig economy, the freelance income. I got this gig on the side. Then it's stressful, I guess. You got a 1099 too. So you're really excited about this.
It's a $24 thing I did. I charge scooters in my condo.
I know. Well, for any of you out there that are getting this freelance income, don't stress again, there's a schedule on your 1040 for it. And again, the software will walk you through it if you're doing your own return. But think of this. Some of the. You have to claim it, but a lot of times you're going to have plenty of write offs to wipe it out. So there's a process for it. You're now a small business owner. Did you know that? That's what you have for $24.
Congratulations.
Congrats.
Really Any different?
I've heard that There are some CPAs out have programs that you can look at to sort of see how you will be affected next year. Like if you were to apply the same income this year to next year's tax criteria, is that something that's out there and that people should be interested in?
Yeah. In fact, there's a lot of different software models. I like New York Times. They have a great site on their website that you can page on their website you can go to, and it's fantastic. You can kind of guesstimate where you might be. They're saying 80% of Americans should see savings. And so if you're kind of wondering how it might affect you, you can get in some of these sites and play it out.
Yeah. Okay. Speak to someone real quick, though, who hasn't filed their taxes and is freaking out. Aside from the extension, what else can you say to them?
Don't stress. I think there's some good tips, too. Think about contributing to a health savings account, hsa, maybe to an ira. There's still things you can do to reduce your tax bill. So get in and run some models. Get engaged soon. Don't procrastinate.
Good stuff.
Okay, thank you so much, Mark Coleridge. I really appreciate you're busy right now and you took the time to come out this morning.
Well, you know, it's Sunday. We get one day off.
Throwing up some of the deadlines there for you. April 17th. I know that that's two days later than a lot of people maybe thought it would be.
Right? Yep. There's a holiday on Monday, plus the 15th was on a weekend. So you can take your time that weekend and get it off on Tuesday. And I think direct deposits are pretty exciting. That's at tax layer two. You can get your money immediately if you are due a refund. So if you're expecting a refund, you might want to get on it too.
All right, Mark, thank you.
Thank you.
Thank you very much. Okay. See, Talking about taxes wasn't so bad, was it?
