WEBVTT 1 00:00:00.080 --> 00:00:05.040 It's Night Side with Dan Ray i WBZ Boston's radio. 2 00:00:06.120 --> 00:00:10.599 All right, welcome back everyone. It's nine oh seven in Boston, Massachusetts. 3 00:00:10.679 --> 00:00:14.679 You're listening to WBZ Radio where we are ten thirty 4 00:00:15.000 --> 00:00:18.359 right SMACKDB in the middle of your AM dial. If 5 00:00:18.359 --> 00:00:20.679 you're listening to us in a car somewhere in the 6 00:00:20.679 --> 00:00:23.160 Midwest or down south and picking us up for the 7 00:00:23.160 --> 00:00:25.559 first time, lock us in on your car radio. If 8 00:00:25.559 --> 00:00:28.519 you're listening at home, same way. If you're listening on 9 00:00:28.600 --> 00:00:32.479 your tablet or on some sort of social media device, 10 00:00:32.719 --> 00:00:35.280 feel free to lock us in there as well. You 11 00:00:35.320 --> 00:00:37.600 always can find us on the iHeart app. This is 12 00:00:37.759 --> 00:00:40.679 WBZ in Boston. As they say, my name is Dan Ray. 13 00:00:40.679 --> 00:00:42.960 I'm the host of the show and with us tonight, 14 00:00:43.039 --> 00:00:45.719 and I wish I kept a record mark, Misslbeck, of 15 00:00:45.759 --> 00:00:47.960 the number of years we've had you on at this 16 00:00:48.079 --> 00:00:51.799 time of year. But we are now entering, well, we 17 00:00:51.880 --> 00:00:55.479 have entered the income tax season, that time of the 18 00:00:55.520 --> 00:00:58.600 year when all of us get these missives in the mail, 19 00:00:58.000 --> 00:01:02.039 these forms, these two forms which tell us how much 20 00:01:02.119 --> 00:01:05.040 many we made and ten ninety nine from banks and 21 00:01:05.560 --> 00:01:09.480 can be kind of overwhelming. As we get on the 22 00:01:09.480 --> 00:01:12.239 glide path to April fifteenth. I want to welcome back 23 00:01:12.280 --> 00:01:15.959 my friend Mark Misselbeck. He's the core tax director of 24 00:01:16.040 --> 00:01:20.799 Cherry Beckett Advisory LLC CPA, and Mark, I was just 25 00:01:20.840 --> 00:01:23.840 saying that we've done this now, this probably is our 26 00:01:23.920 --> 00:01:26.959 fourteenth or fifteenth year at least doing this. How are 27 00:01:26.959 --> 00:01:27.439 you tonight? 28 00:01:29.359 --> 00:01:29.879 Pretty good? 29 00:01:31.680 --> 00:01:32.280 Busy time. 30 00:01:32.400 --> 00:01:35.959 I found an old posting that an appeal of an 31 00:01:35.959 --> 00:01:40.640 appearance March sixth, twenty eleven. I was fored. I thought 32 00:01:40.640 --> 00:01:42.280 we were eight or ten years Max. 33 00:01:43.079 --> 00:01:45.920 Yeah, No time flies when you're having fun, Mark, that's 34 00:01:46.000 --> 00:01:49.920 for sure. Yeah, Well that would that would make it 35 00:01:49.959 --> 00:01:53.599 now where this would be Well, if twenty eleven was 36 00:01:53.640 --> 00:01:57.120 the first, this must be the fifteenth year. But you're 37 00:01:57.159 --> 00:02:01.719 always great. You explained things so that people can understand 38 00:02:01.959 --> 00:02:04.760 they're what they are doing. And I always like to 39 00:02:04.760 --> 00:02:08.439 start off with my threshold question. And I think you've 40 00:02:08.479 --> 00:02:10.479 heard the question enough so you know the answer that 41 00:02:10.520 --> 00:02:13.800 I'm looking for, and that is what's the most important 42 00:02:13.879 --> 00:02:17.319 thing an individual? Because most of my listeners who are 43 00:02:17.360 --> 00:02:20.840 listening tonight are individuals who know they have to file 44 00:02:20.919 --> 00:02:24.199 taxes in April fifteenth. What's the most important thing they 45 00:02:24.240 --> 00:02:28.719 can do before they arrive at their CPA's office or 46 00:02:28.759 --> 00:02:35.000 their lawyer's office, or whatever tax filing service they are utilizing. 47 00:02:37.000 --> 00:02:39.319 If you have a folder, take it and put all 48 00:02:39.360 --> 00:02:45.319 of your information, your documentation into the folder. W two's 49 00:02:45.400 --> 00:02:51.719 ten ninety nine's stock trade information, documentation of charitble donations, 50 00:02:52.439 --> 00:02:57.639 the property tax bills, the auto excise tax, medical costs, 51 00:02:58.280 --> 00:03:01.120 anything and everything along the lines. If you're a partner 52 00:03:01.159 --> 00:03:05.159 and a partnership that information. If you are a sole proprietor, 53 00:03:05.280 --> 00:03:09.120 you need your business records of income and expenses for 54 00:03:09.199 --> 00:03:13.199 the year, and particularly if you're using your vehicle in 55 00:03:13.240 --> 00:03:19.039 that business, the mileage records for business versus personal use. 56 00:03:20.280 --> 00:03:25.759 Yeah, I mean it's a lot. It's overwhelming to most people. 57 00:03:26.879 --> 00:03:31.280 I don't know how any individual with any sense of 58 00:03:32.439 --> 00:03:37.039 certainty can do this without some professional help. And I 59 00:03:37.120 --> 00:03:39.560 mean that seriously. I think, thank God that there are 60 00:03:39.599 --> 00:03:44.520 people like you and others around who not only do 61 00:03:44.639 --> 00:03:46.800 work for corporations but also do work, you know, for 62 00:03:47.360 --> 00:03:50.479 sub chapter s and individuals and corporations. I mean, it's 63 00:03:50.560 --> 00:03:55.719 just it's overwhelming. As I get older, I think to myself, 64 00:03:55.840 --> 00:03:58.240 it just seems to get more complicated every year. Is 65 00:03:58.280 --> 00:04:01.199 that my imagination? Or is it indeed becoming more complicated 66 00:04:01.240 --> 00:04:01.680 every year. 67 00:04:03.039 --> 00:04:06.319 I don't know to a degree it's more complicated, but 68 00:04:06.639 --> 00:04:10.719 the Congress seems to perceive that with computers available, the 69 00:04:10.800 --> 00:04:13.840 programmers can set up anything to deal with whatever it 70 00:04:13.879 --> 00:04:15.840 is they write into the tax codes so they feel 71 00:04:15.879 --> 00:04:19.839 free to do so. Yeah, and as far as being overwhelming, 72 00:04:20.120 --> 00:04:22.879 the guide you need is your last year's return. Look 73 00:04:23.079 --> 00:04:27.279 for the information this year for what you reported in 74 00:04:27.319 --> 00:04:31.920 the return last year, bank accounts and brokerage statements. 75 00:04:32.399 --> 00:04:37.439 Yeah, and at this point you're you should have I 76 00:04:37.480 --> 00:04:40.040 think you know your W two's and your ten ninety 77 00:04:40.079 --> 00:04:43.439 nine from banks, you know your simpler accounts, if you 78 00:04:43.480 --> 00:04:45.959 have investments. A lot of that stuff can come later, 79 00:04:46.120 --> 00:04:49.079 but most of that stuff should have arrived on it 80 00:04:49.120 --> 00:04:50.480 before January thirty. 81 00:04:50.199 --> 00:04:52.800 First, correct, pretty much? 82 00:04:52.879 --> 00:04:56.680 So yes, right, and so ope, get a Manila folder, 83 00:04:56.800 --> 00:05:00.199 put it together, you know, use some paper clips, you know, 84 00:05:00.279 --> 00:05:02.959 paper clip what if you have more than one ten 85 00:05:03.040 --> 00:05:06.160 ninety nine, or if you happen to have, you know, 86 00:05:06.240 --> 00:05:08.759 more than you know a W two, clip them together, 87 00:05:08.800 --> 00:05:12.000 et cetera. The other thing which people should be aware of. 88 00:05:12.120 --> 00:05:15.639 And I know that these are very elementary observations. I'm 89 00:05:15.639 --> 00:05:18.959 trying to establish and get out of the way. There's 90 00:05:19.000 --> 00:05:21.160 going to be a lot of talk in the next 91 00:05:21.399 --> 00:05:25.279 few weeks about changes in the tax code and the 92 00:05:25.399 --> 00:05:31.720 tax the Trump tax plan, and specifics dealing with assault limitations, 93 00:05:31.920 --> 00:05:36.439 you know, all of that. But in terms of this 94 00:05:37.519 --> 00:05:42.480 tax year, which is really twenty twenty four, nothing's going 95 00:05:42.519 --> 00:05:45.600 to change. So don't sit around thinking, oh, I'll be 96 00:05:45.600 --> 00:05:48.560 able to delay filing my taxes for twenty twenty four 97 00:05:48.720 --> 00:05:51.160 because they're going to change the tax code anyway. If 98 00:05:51.240 --> 00:05:53.800 they change the tax code, it's going to be effective 99 00:05:54.160 --> 00:05:58.439 as of January first, twenty twenty six, or the effective 100 00:05:58.519 --> 00:06:00.600 January first, twenty twenty five. Correct. 101 00:06:01.680 --> 00:06:03.839 Well, historically that's the case. 102 00:06:04.040 --> 00:06:07.839 There has been talked on occasion of making things retroactive, 103 00:06:08.680 --> 00:06:12.040 but so far they've held off from actually doing that. 104 00:06:12.800 --> 00:06:17.439 So it's largely a safe bet that what was in 105 00:06:17.439 --> 00:06:20.959 effect as of December thirty first will be what you 106 00:06:21.040 --> 00:06:23.600 need to deal with in your return this year. There 107 00:06:23.680 --> 00:06:28.000 is some past year end work that can be done 108 00:06:28.639 --> 00:06:32.519 in terms of doing an IRA, or if you have 109 00:06:32.639 --> 00:06:36.480 a business adopting a pension plan. It used to be 110 00:06:36.639 --> 00:06:39.040 that self employes had to have their pension plan in 111 00:06:39.079 --> 00:06:44.519 place or they defaulted to a simple IRA with off 112 00:06:44.519 --> 00:06:48.519 the rack terms to it. That may be a little 113 00:06:48.519 --> 00:06:51.959 more of a straight jacket than you wanted. Congress a 114 00:06:51.959 --> 00:06:55.959 couple of years back changed the law. It isn't December 115 00:06:55.959 --> 00:06:57.839 thirty first that you need the plan in place. You 116 00:06:57.920 --> 00:06:59.480 need to do it by the time you file your 117 00:06:59.480 --> 00:07:03.639 return including extensions. So people with a business, if they 118 00:07:04.000 --> 00:07:06.399 haven't had a pension plan in place, had a decent 119 00:07:06.480 --> 00:07:08.800 year last year, want to put some money aside and 120 00:07:08.839 --> 00:07:12.480 a pension plan, can still adopt it. Those who are 121 00:07:12.519 --> 00:07:16.360 on a W two, if their income is below the 122 00:07:16.519 --> 00:07:21.519 phase out threshold, they can still do deductible iris. If 123 00:07:21.560 --> 00:07:23.399 they'd rather, they can do roth iras. 124 00:07:24.800 --> 00:07:27.240 Yeah, roth ira. I think most people are beginning to 125 00:07:27.319 --> 00:07:31.560 understand that you convert your four h one k into 126 00:07:31.600 --> 00:07:35.560 a ROTH, you pay the taxes to convert it, but 127 00:07:35.680 --> 00:07:38.600 then the money that is left over goes into the 128 00:07:38.680 --> 00:07:40.639 roth will never be taxed again. 129 00:07:40.920 --> 00:07:44.000 Correct, Well, you've got to pay money on the money, 130 00:07:44.079 --> 00:07:47.560 pay tax on the money going into the raw because 131 00:07:47.600 --> 00:07:50.680 it's not deductible. So if you if you decide to 132 00:07:50.720 --> 00:07:55.959 do a conversion, understand you can't undo it. Years ago, 133 00:07:56.120 --> 00:07:58.240 you used to be able to Congress took that away 134 00:07:58.279 --> 00:08:01.959 from us. So once you make the decision and make 135 00:08:02.000 --> 00:08:03.639 the change, you're stuck with it. 136 00:08:04.360 --> 00:08:08.959 Yeah. And the theory on that is that your earning 137 00:08:09.079 --> 00:08:16.519 power will probably not necessarily always, but probably diminish upon 138 00:08:16.600 --> 00:08:17.319 your retirement. 139 00:08:17.480 --> 00:08:22.439 Correct, not your earning power, but your overall income if 140 00:08:22.519 --> 00:08:25.800 you are not going to solder on in the workforce 141 00:08:26.240 --> 00:08:27.480 beyond your retirement date. 142 00:08:28.199 --> 00:08:31.920 Yeah. So the idea is you probably if you're relying 143 00:08:32.000 --> 00:08:35.759 upon either a pension or social security some combination thereof, 144 00:08:36.159 --> 00:08:41.080 and you've left a job, your your tax rate probably 145 00:08:41.120 --> 00:08:44.919 would be higher through the time that you work, and 146 00:08:45.000 --> 00:08:47.720 once you actually retire, your tax rate is going to 147 00:08:47.759 --> 00:08:51.320 go down. So therefore, when you go and you take 148 00:08:51.360 --> 00:08:55.080 your money out of your your wroth account, it's it's 149 00:08:55.120 --> 00:08:58.879 going to be taxed at a lower rates. As a consequence, 150 00:08:59.240 --> 00:09:02.879 there'll be no tax. There'll be no tax on it. 151 00:09:02.879 --> 00:09:06.480 It's not necessarily no tax, but a lesser tax. If 152 00:09:07.039 --> 00:09:11.000 you don't have a substantial accumulation to your benefit of 153 00:09:11.080 --> 00:09:14.000 a pension plan, if you've been packing money away and 154 00:09:14.080 --> 00:09:17.080 the market has been rewarding you with its rise over 155 00:09:17.120 --> 00:09:21.159 the last some years, you may in fact have a 156 00:09:21.200 --> 00:09:24.720 balance in your account that can produce an income that, 157 00:09:24.879 --> 00:09:28.519 in combination with Social Security benefits, pushes you into the 158 00:09:28.519 --> 00:09:31.919 same or a higher bracket. In that case, doing a 159 00:09:31.960 --> 00:09:35.559 wroth conversion will pay the tax now at the turnent 160 00:09:35.679 --> 00:09:38.720 rates in case they rise in a later year, and 161 00:09:38.759 --> 00:09:42.279 you need never tap the wroth if you choose not to, 162 00:09:42.440 --> 00:09:44.679 or if you do and you have it in there 163 00:09:44.720 --> 00:09:49.720 long enough five years, whatever comes out is tax free 164 00:09:50.039 --> 00:09:55.120 and doesn't impact your Medicare charges and your income levels 165 00:09:55.360 --> 00:09:56.279 and your tax rates. 166 00:09:57.120 --> 00:10:00.960 Yeah, they just don't make it simple. Guess Mark Misselbeck. 167 00:10:01.759 --> 00:10:04.440 Mark is a CPA. He knows his stuff. He's the 168 00:10:04.480 --> 00:10:07.840 core tax director. I'm not familiar with the phrase core 169 00:10:07.960 --> 00:10:10.240 tax director. Is that a new phrase or is that 170 00:10:10.279 --> 00:10:12.519 a phrase that I should be familiar with? 171 00:10:13.879 --> 00:10:23.799 Nolly, Different firms have different designations. Principal director, partner, echley partner, 172 00:10:24.960 --> 00:10:29.639 non equity partner, profit participant. It's all over the lot. 173 00:10:30.159 --> 00:10:34.639 It's stratified. And the higher up you get, the bigger 174 00:10:34.720 --> 00:10:35.480 the title. 175 00:10:35.600 --> 00:10:38.320 The bigger the title. Okay, fair enough. I wasn't sure 176 00:10:39.600 --> 00:10:41.720 if there was a meaning that I was missing. He's 177 00:10:41.759 --> 00:10:46.799 with Cherry Beckett Advisory LLC. We'll give at some point 178 00:10:46.879 --> 00:10:50.320 later on tonight. They're located in Waltham, pretty easy to 179 00:10:50.399 --> 00:10:53.399 find if you're interested. But now it's an opportunity for 180 00:10:53.440 --> 00:10:55.399 you to get some free tax advice. If you have 181 00:10:55.440 --> 00:10:58.639 a question six one, seven, two, five, four, ten thirty, 182 00:10:58.679 --> 00:11:04.320 six one seven thirty, do not hesitate. Feel free. As 183 00:11:04.320 --> 00:11:06.480 I've often said, there is no such thing as a 184 00:11:06.559 --> 00:11:11.120 dumb question. If you you may be able to save 185 00:11:11.159 --> 00:11:14.600 yourself some aggravation. So feel free to join the conversation. 186 00:11:14.639 --> 00:11:16.360 We're going to take very quick break, be back with 187 00:11:16.759 --> 00:11:20.200 Mark Misselbeck, and my call is questions, So feel free 188 00:11:20.519 --> 00:11:24.200 just dial that number and ask away. This is not 189 00:11:24.240 --> 00:11:26.200 going to cost you anything, and it may save you 190 00:11:26.279 --> 00:11:28.159 some money in the long run or in the short run. 191 00:11:28.200 --> 00:11:29.600 Back on night Side right after this. 192 00:11:30.480 --> 00:11:33.639 Now back to Dan Ray live from the Window World 193 00:11:33.759 --> 00:11:36.879 Nightside Studios on WBZ News Radio. 194 00:11:38.559 --> 00:11:44.039 We're talking taxes. April fifteenth is the deadline. April fifteenth 195 00:11:44.039 --> 00:11:48.679 this year? Does the Patriots Day celebration get us an 196 00:11:48.679 --> 00:11:49.639 extra couple of days? 197 00:11:49.639 --> 00:11:49.840 Mark? 198 00:11:49.879 --> 00:11:51.440 Do you know that off the top of your head? 199 00:11:52.440 --> 00:11:55.919 It's April fifteenth, and it is Patriots Day that gets 200 00:11:56.000 --> 00:11:56.799 you extra time? 201 00:11:56.799 --> 00:11:57.279 Anymore? 202 00:11:57.480 --> 00:11:59.720 It's Emancipation Day down on DC. 203 00:12:01.360 --> 00:12:04.200 Yeah, I see. Yeah, okay, well Patriots Day here is 204 00:12:05.080 --> 00:12:08.120 the twenty first, so tax Day is indeed the fifteenth. 205 00:12:08.200 --> 00:12:11.919 And if people one thing people should know, and I 206 00:12:11.919 --> 00:12:14.279 think we could should get this out quickly, and that 207 00:12:14.440 --> 00:12:18.039 is that people have a right to seek an extension, 208 00:12:18.080 --> 00:12:22.279 a six month extension automatically, but they have to make 209 00:12:22.320 --> 00:12:25.759 a good faith effort to pay the taxes owed by 210 00:12:25.919 --> 00:12:28.480 April fifteenth. Can you explain that a little bit better 211 00:12:28.480 --> 00:12:30.720 than I can explain it. So people, if they're up 212 00:12:30.720 --> 00:12:32.600 against the deadline and they know they're not going to 213 00:12:32.639 --> 00:12:33.759 make it, they do have an option. 214 00:12:35.480 --> 00:12:40.000 Yeah, based on your information that you have in hand, 215 00:12:40.600 --> 00:12:44.480 you make your best reasonable estimate of your taxes, do 216 00:12:45.360 --> 00:12:50.000 and pay in what you haven't paid so far. We 217 00:12:50.200 --> 00:12:56.320 usually think about putting in the first quarter estimate because 218 00:12:56.320 --> 00:12:59.240 the people who have that problem usually have to pay 219 00:12:59.360 --> 00:13:06.840 estimates and thereby increasing by that depositing that first quarter 220 00:13:07.000 --> 00:13:12.600 estimate an additional level of security against a surprise income 221 00:13:12.639 --> 00:13:16.840 coming in the door from somewhere they weren't anticipating. Then 222 00:13:16.879 --> 00:13:19.399 their first quarter estimate is short, they can make it 223 00:13:19.480 --> 00:13:24.080 up with June the second quarter, and they only suffer 224 00:13:24.279 --> 00:13:27.279 a charge of two months interest for not having paid 225 00:13:27.279 --> 00:13:28.440 the first quarter correctly. 226 00:13:30.879 --> 00:13:34.440 Tell you it's keeping the rules in your head. You 227 00:13:34.519 --> 00:13:36.759 always amaze me. Let's go to phone calls. We got 228 00:13:36.799 --> 00:13:40.240 John in Dorchester, starts us off tonight. Hey, John, welcome 229 00:13:40.279 --> 00:13:45.000 your first This Hour with Mark Misselbeck talking taxes. What's 230 00:13:45.039 --> 00:13:46.440 your question? What do you call it? John? 231 00:13:47.440 --> 00:13:50.080 So, thank you Dan, and thank you Mike. I appreciate 232 00:13:50.120 --> 00:13:56.320 your help and what you're doing. Absolutely, I am. I 233 00:13:56.320 --> 00:14:01.360 filed twenty twenty three last year on time single and 234 00:14:02.120 --> 00:14:04.559 I'm sixty five now I'll be sixty six in May. 235 00:14:06.879 --> 00:14:10.000 But I didn't do twenty twenty two. But my understanding 236 00:14:10.039 --> 00:14:13.080 is it's not too late to file, so I could 237 00:14:13.120 --> 00:14:17.600 file for that. And why did you do that? 238 00:14:17.679 --> 00:14:20.440 John, John woll Woa, WHOA, what do you mean you 239 00:14:20.440 --> 00:14:22.679 you didn't do twenty twenty two, which would have been 240 00:14:22.759 --> 00:14:25.279 ding April at twenty twenty three? Did you just forget 241 00:14:25.519 --> 00:14:26.360 or did. 242 00:14:26.279 --> 00:14:29.519 You had had I had some health issues going on. 243 00:14:30.000 --> 00:14:32.000 I took care of all the I took care of 244 00:14:32.000 --> 00:14:34.679 all the other years and that effect they just I 245 00:14:34.799 --> 00:14:36.240 just got a refunded enough. 246 00:14:36.679 --> 00:14:39.360 Okay, so let me come back. I just want to 247 00:14:39.440 --> 00:14:42.960 understand and I want Mark to understand. So you never 248 00:14:43.120 --> 00:14:45.879 filed twenty twenty two. Do you think your owed tax 249 00:14:46.039 --> 00:14:48.159 you have to file, But do you think your owe 250 00:14:48.200 --> 00:14:48.919 taxes did that? 251 00:14:49.639 --> 00:14:53.799 I want to say that I'd be surprised if I 252 00:14:53.840 --> 00:14:57.440 wasn't getting a refund. Okay, I'd be surprised if I 253 00:14:57.480 --> 00:14:58.519 wasn't getting a refund. 254 00:14:59.159 --> 00:15:03.399 Okay. So so let's find out from Mark what sort 255 00:15:03.440 --> 00:15:07.399 of jeopardy you're in. You as I'm sure you probably know, 256 00:15:07.440 --> 00:15:12.200 you're supposed to file. Correct Mark situation as John presents it, 257 00:15:12.600 --> 00:15:16.519 presents it. He didn't file. He had some health complications 258 00:15:17.679 --> 00:15:20.039 and he thinks that he should be doing a refund. 259 00:15:20.440 --> 00:15:23.399 What's the best guidance for him? 260 00:15:23.840 --> 00:15:27.080 File and file as soon as you can. If you 261 00:15:27.159 --> 00:15:31.159 wait another two years, you may you still have the 262 00:15:31.200 --> 00:15:34.440 obligation to file, and the statute of limitations, which runs 263 00:15:34.480 --> 00:15:38.559 typically three years from filing, will start when you submit 264 00:15:38.600 --> 00:15:41.879 the return. The problem is if you go three years 265 00:15:41.919 --> 00:15:47.399 out from the original do date, the refund may not 266 00:15:47.480 --> 00:15:50.159 be due you any longer. He may be shut out 267 00:15:50.200 --> 00:15:52.840 from it. So you need to get on your horse 268 00:15:52.879 --> 00:15:57.120 a little bit. And if you're owed money, there may 269 00:15:57.120 --> 00:16:01.919 be a small late penalty for not having filed timely. 270 00:16:02.000 --> 00:16:05.519 But there should be no penalty for under payment. And 271 00:16:05.600 --> 00:16:08.399 there is a program with the IRS. If you are 272 00:16:08.440 --> 00:16:12.919 a first time penalty assessment and you haven't had penalties 273 00:16:12.960 --> 00:16:16.639 assessed in the last three years, and use this first 274 00:16:16.679 --> 00:16:20.000 time escape patch, you can ask them to waive the 275 00:16:20.039 --> 00:16:22.759 penalty under that program. 276 00:16:23.159 --> 00:16:25.480 Is that what they call the amnesty program? 277 00:16:26.519 --> 00:16:29.480 No, no, no Mass had an amnesty hasn't had or 278 00:16:29.519 --> 00:16:32.279 has an amnesty program going on. I think it may 279 00:16:32.279 --> 00:16:34.919 have been shut down by now. It was a second 280 00:16:34.960 --> 00:16:38.879 one in the last decade that you could file, pay 281 00:16:38.919 --> 00:16:42.320 your taxes, pay the interest and not get hit with penalties. 282 00:16:43.480 --> 00:16:47.399 But no, this is just an abatement program on first 283 00:16:47.399 --> 00:16:50.840 time penalty assessments first time, the first time in the 284 00:16:50.879 --> 00:16:51.840 last three years. 285 00:16:52.159 --> 00:16:55.879 Okay, but remember John, you got your mass resident I assume, 286 00:16:55.960 --> 00:16:59.440 so did you file in twenty twenty three, either for 287 00:16:59.600 --> 00:17:01.720 state or federal or. 288 00:17:01.799 --> 00:17:05.920 I took care of twenty twenty three on time, which 289 00:17:05.960 --> 00:17:07.680 was I was supposed to do when things worked out 290 00:17:07.680 --> 00:17:08.680 well in my half. 291 00:17:09.000 --> 00:17:10.920 Okay, and both authorities. 292 00:17:11.039 --> 00:17:13.319 And then like I said, this year, I am you know, 293 00:17:13.359 --> 00:17:15.960 I'm sixty five this year, so I know there's a 294 00:17:16.039 --> 00:17:19.920 I think there's a special exemption right off if you're 295 00:17:19.960 --> 00:17:21.680 sixty five, I think it might be a twenty five 296 00:17:21.720 --> 00:17:24.920 hundred dollars exemption. I could be all, well. 297 00:17:24.799 --> 00:17:31.480 Listen, it's an increased standard deduction in the deduction, but 298 00:17:33.160 --> 00:17:36.599 under deduction, those who attained a certain age get an 299 00:17:36.599 --> 00:17:40.640 extra right off both state and federal because the state 300 00:17:40.720 --> 00:17:42.960 is a little bit less the Fed is a little 301 00:17:42.960 --> 00:17:43.400 bit more. 302 00:17:44.440 --> 00:17:46.519 Yeah, I could be as I want to say. They 303 00:17:46.559 --> 00:17:48.640 said it was twenty five hundred. I could be, well, 304 00:17:49.039 --> 00:17:51.559 but I think that's what they said. I don't know 305 00:17:51.559 --> 00:17:53.559 if that's a total pan off, but that's what they said, 306 00:17:53.599 --> 00:17:55.400 it was twenty five hundred. 307 00:17:55.400 --> 00:17:59.319 That assumes you're filing a standard with a standard deduction, 308 00:17:59.680 --> 00:18:01.119 not not to deducted. 309 00:18:01.359 --> 00:18:05.759 Okay, s sixty five and twenty twenty three, you got 310 00:18:05.759 --> 00:18:08.799 an extra eighteen hundred and fifty dollars. In twenty twenty 311 00:18:08.839 --> 00:18:11.160 four it'll be nineteen hundred and fifty dollars as a 312 00:18:11.160 --> 00:18:12.039 standard deduction. 313 00:18:13.240 --> 00:18:15.559 I want to come back to my original question, John, 314 00:18:16.319 --> 00:18:20.119 what was the tax year that you failed to file 315 00:18:20.240 --> 00:18:22.559 and did you fail to file for both federal and 316 00:18:22.720 --> 00:18:25.160 state or did you fail to file for just one? 317 00:18:26.440 --> 00:18:29.960 Twenty twenty two was the and I unfortunately and file 318 00:18:30.039 --> 00:18:31.279 for both federal law state. 319 00:18:32.079 --> 00:18:36.400 Okay, but I held hopefully you got the answers that 320 00:18:36.480 --> 00:18:38.279 you need here. Is there anything that you need to 321 00:18:38.319 --> 00:18:41.039 clear up with with Mark before we let you go? 322 00:18:42.519 --> 00:18:45.680 No, I are you answered all my questions. But I 323 00:18:45.720 --> 00:18:48.720 greatly greatly appreciate it and appreciate you volunteer any time 324 00:18:48.759 --> 00:18:50.799 now that Mark, and again you always do a great job. 325 00:18:50.839 --> 00:18:54.400 And welcome back whatever year it is, Mark twentieth or 326 00:18:54.400 --> 00:18:56.000 fifteenth or whatever it is. 327 00:18:56.039 --> 00:18:59.440 At least fifteen, at least fifteen. Yeah, all right, thank 328 00:18:59.559 --> 00:19:01.680 thanks you. I appreciate you getting us going here. You 329 00:19:01.720 --> 00:19:03.000 broke the ice. Thanks my friend. 330 00:19:03.079 --> 00:19:05.119 Math wasn't my strong point. That's why I always sat 331 00:19:05.160 --> 00:19:06.200 next to the spotkits. 332 00:19:06.200 --> 00:19:09.960 But not that you'd look on the paper or anything 333 00:19:10.039 --> 00:19:10.880 like that for answers. 334 00:19:13.559 --> 00:19:16.000 The chiefs would ask a question if I go that way? 335 00:19:16.039 --> 00:19:17.319 They did. 336 00:19:17.400 --> 00:19:19.799 I didn't do it intentionally. Yeah, we got it, all right, 337 00:19:19.799 --> 00:19:20.920 Thank you, John, appreciate it. 338 00:19:20.960 --> 00:19:22.920 Okay, Well, God bless thanks again. 339 00:19:24.079 --> 00:19:25.920 That was a good one to start off with. Mark. 340 00:19:26.240 --> 00:19:29.240 We'll we have other callers on the line and waiting, 341 00:19:29.799 --> 00:19:31.880 and one line open at six one, seven, two, five, 342 00:19:31.920 --> 00:19:35.039 four ten thirty that John just left and one line 343 00:19:35.039 --> 00:19:37.960 at six one, seven, nine, three, ten thirty. My guess 344 00:19:38.079 --> 00:19:43.400 is Mark Misselbeck, CPAH. He has an extraordinary knowledge of 345 00:19:44.160 --> 00:19:47.519 tax law and uh, he always amazes me. He's a 346 00:19:47.599 --> 00:19:52.799 core tax director at a firm called Cherry Beckert Advisory LLC. 347 00:19:53.079 --> 00:19:57.000 They're located in Waltham and will give ways in which 348 00:19:57.000 --> 00:19:59.119 you can contact him if you want. He has plenty 349 00:19:59.119 --> 00:20:02.119 of work and I'm surprised that he's always as generous 350 00:20:02.119 --> 00:20:05.039 with his time, but he is. It benefits me and 351 00:20:05.039 --> 00:20:08.559 it benefits you if you take advantage and dial the calls. 352 00:20:08.599 --> 00:20:11.279 We'll be back on Nightside run after this break, news break, 353 00:20:11.559 --> 00:20:14.400 this news break, and they think I have one commercial 354 00:20:14.440 --> 00:20:15.880 to read and then we'll be done for the night. 355 00:20:15.880 --> 00:20:19.279 On the commercials, it's Night Side with. 356 00:20:21.720 --> 00:20:22.960 Boston's News Radio. 357 00:20:23.839 --> 00:20:27.200 My guest is Mark Misselbeck. He's a CPA. He takes 358 00:20:27.240 --> 00:20:29.319 your tax questions. He done it, He's done it with us, 359 00:20:29.319 --> 00:20:31.440 he did it with David bread Noo. As a matter 360 00:20:31.480 --> 00:20:34.319 of fact, how many years did you did you coordinate 361 00:20:34.359 --> 00:20:35.599 with David brednege on this. 362 00:20:35.640 --> 00:20:39.039 Mark, I gotta be either ten. 363 00:20:39.680 --> 00:20:44.160 Yeah, yeah. David's great friend, great guy, and I'm happy 364 00:20:44.160 --> 00:20:46.079 to carry on to tradition with you and appreciate you 365 00:20:46.119 --> 00:20:47.799 spending some time with us. Tonight, let me go to 366 00:20:47.839 --> 00:20:51.000 Pat in Waymouth. Pat, you are next this hour with 367 00:20:51.079 --> 00:20:52.559 my guest Mark Misselbecker. 368 00:20:52.599 --> 00:20:56.000 Right ahead, Pat, Hi, Dan, thanks for taking my call, 369 00:20:56.039 --> 00:20:58.720 and Mark, thank you for any advice you can give me. 370 00:21:00.000 --> 00:21:05.160 Seventy six years old, I've always filed as individual short form. 371 00:21:06.039 --> 00:21:11.440 This year I was awarded a lawsuit proceeds, and I 372 00:21:11.599 --> 00:21:16.240 understand that that those proceeds that I was awarded are 373 00:21:16.400 --> 00:21:17.160 not textical. 374 00:21:20.440 --> 00:21:24.799 It depends upon the nature of the claim, what you 375 00:21:25.079 --> 00:21:28.759 base the claim on, and I would have to get 376 00:21:28.759 --> 00:21:33.480 into it with you as to what that lawsuit claimed 377 00:21:34.079 --> 00:21:37.440 in order to obtain the settlement. In order to make 378 00:21:37.480 --> 00:21:40.519 the determination, you need to. 379 00:21:40.519 --> 00:21:46.559 Say yes, and I do have an appointment. But yeah, 380 00:21:46.640 --> 00:21:51.160 it was a motor vehicle accident and the f fault 381 00:21:51.240 --> 00:21:55.079 driver went over double line and hit me head on, 382 00:21:55.480 --> 00:21:58.400 and of course my car was total and I was 383 00:21:58.440 --> 00:22:00.359 in the hospital for two days. 384 00:22:00.839 --> 00:22:03.359 And I think you were not this was this was 385 00:22:03.400 --> 00:22:09.079 a torch claim. You were injured and you you want 386 00:22:09.119 --> 00:22:10.599 some money a Mark, I. 387 00:22:13.119 --> 00:22:15.720 Was was boarded money. 388 00:22:16.279 --> 00:22:20.240 You said, yeah, okay, yeah, all right, now if it 389 00:22:20.559 --> 00:22:23.880 if the basis of the claim is your physical injuries. 390 00:22:24.680 --> 00:22:30.480 Compensation for physical injuries is typically going to be untaxable, okay, 391 00:22:30.519 --> 00:22:35.359 And anything else would be taxable. It was replacing wages 392 00:22:35.759 --> 00:22:39.400 or income earning capacity, that's probably. 393 00:22:39.160 --> 00:22:39.920 Going to be taxable. 394 00:22:40.920 --> 00:22:41.400 Okay. 395 00:22:41.680 --> 00:22:44.480 No, it would be all for the physical I was 396 00:22:44.480 --> 00:22:48.200 in the hospital for two days and I underwent a 397 00:22:48.240 --> 00:22:50.400 lot of tests, and so. 398 00:22:50.880 --> 00:22:54.480 Your medical pain, medical and pain and suffering and things 399 00:22:54.519 --> 00:22:55.640 like that, I assume. 400 00:22:55.720 --> 00:22:57.720 Oh yeah, oh yeah. When I got out of the 401 00:22:57.759 --> 00:22:59.319