THEO: WELCOME BACK. WE’RE DOWN TO THE WIRE TO FILE
THOSE TAX RETURNS THIS YEAR. IF YOU STILL HAVE LAST MINUTE
QUESTIONS, THAT’S WHY WE BROUGHT
IN CARA KING BESS FROM KING,
KING AND ASSOCIATES TO HELP. GOOD MORNING.>>GOOD MORNING. THEO: BUSY RIGHT NOW.>>VERY BUSY. THEO: LET’S GET TO THE
QUESTIONS. FIRST QUESTION, ARE INVESTMENT
FEES DEDUCTIBLE?>>SO INVESTMENT FEES. INVEST ADVISORY FEES USED TO BE
CONSIDERED MISCELLANEOUS
ITEMIZED DEDUCTIONS. IF THE PERSON IS TALKING ABOUT
INVESTMENT INTEREST EXPENSE,
THAT’S DEDUCTIBLE. YOU HAVE TO FILL OUT A FORM
4952. AFTER THAT, IT CARRIES OVER TO
THE ITEMIZED DEDUCTIONS. SO INVESTMENT ADVISORY FEES, NO. INVESTMENT INTEREST EXPENSE,
YES. THEO: MY WIFE AND I ARE RETIRED
AND DRAW SOCIAL MEDIA. WE DON’T WORK AND DRAW OUT OF
OUR IRA AS NEEDED. WHAT IS THE MAX WE CAN DRAW
WITHOUT HAVING TO PAY TAXES.>>THERE’S A COMPUTATION THAT
HAS TO BE DONE. BECAUSE I DON’T KNOW WHAT THEIR
SOCIAL SECURITY IS, I WOULD SAY
THE MAXIMUM IS THE STANDARD
DEDUCTION. FOR MARYLAND FILING JOINTLY,
BOTH UNDER 65, IT’S 24,000. ONE OVER 65, IT’S 25,300. BOTH OVER 65, IT’S 26,6. SO THERE’S A COMPUTATION THAT
INCLUDES HALF OF YOUR SOCIAL
SECURITY BENEFITS ALONG WITH
YOUR OTHER INCOME. IF THEY WANT TO GIVE US A CALL,
I CAN GIVE THEM A BETTER ANSWER. THEO: WHAT’S THE NUMBER?>>410-486, 4500. THEO: CAN I INCLUDE CHILD CARE
EXPENSES TO A PROVIDE HERE WON’T
GIVE ME A SOCIAL SECURITY OR TAX
ID NUMBER.>>YOU CAN. BUT YOU HAVE TO FILE A PAPER TAX
RETURN. ON THE FORM 2441, WHICH IS THE
CHILD CARE TAX CREDIT, IT ASKS
FOR THE ID NUMBER OF THE
PROVIDER. THERE’S A FORM W-10, THAT IS A
PROVIDER’S IDENTIFICATION. ANY TIME THAT YOU EMPLOY SOMEONE
OR GO TO A DAY CARE PROVIDER,
YOU SHOULD GET THAT INFORMATION
UP FRONT SO YOU DON’T HAVE THIS
SITUATION. BUT THEY CAN FILE A PAPER RETURN
AND ATTACH WHAT INFORMATION THEY
DO HAVE, THE NAME AND ADDRESS OF
THE PROVIDER AT A MINIMUM AND
THEY CAN GET THE TAX CREDIT. THEO: WHAT EXPENSES QUALIFY FOR
EDUCATION CREDITS, ARE THERE
INCOME LIMITS ON THE CREDITS?>>THE THINGS THAT QUALIFY FOR
THE EDUCATION CREDITS ARE
TUITION AND QUALIFIED FEES FOR
ENROLLMENT. THERE ARE TWO MAIN EDUCATION
CREDITS. THE AMERICAN OPPORTUNITY CREDIT
AND LIFETIME CREDIT. THE AMERICAN OPPORTUNITY CREDIT
HAS A LIMIT OF $90,000 FOR
SINGLE OR HEAD OF HOUSEHOLD. 180,000 FOR MARRIED FILING
JOINTLY. AND THAT AMERICAN OPPORTUNITY
CREDIT IS AVAILABLE FOR THE
FIRST FOUR YEARS OF TUITION
COSTS. THE LIFETIME CREDIT IS AVAILABLE
FOR A LIFETIME, AS IT SAYS. BUT THE INCOME LIMITS ON THAT
ARE $67,000 FOR INDIVIDUAL OR
HEAD OF HOUSEHOLD, AND $134,000
FOR MARRIED FILING JOINTLY. SO THE OTHER THING IS YOU HAVE
TO HAVE THE FORM 1098-T FROM THE
INSTITUTION IN ORDER TO GET
THOSE KRIDS. THEO: IF YOU OWE, WE HAVE UNTIL
APRIL 15 TO FILE. IF YOU’RE GETTING A REFUND, YOU
HAVE LONGER?>>ABSOLUTELY. TO GET A REFUND, YOU HAVE UP
UNTIL THREE YEARS AFTER THE DUE
DATE OF THE ORIGINAL TAX RETURN. YOU CAN STILL GET YOUR REFUND. IF YOU OWE, YOU CAN FILE FOR AN
EXTENSION. BUT IT’S AN EXTENSION OF TIME TO
FILE, NOT AN EXTENSION OF TIME
TO PAY. YOU STILL NEED TO SEND THAT
MONEY IN WITH THE EXTENSION IF
YOU THINK YOU’RE GOING TO OWE. THEO: IF YOU’RE GETTING A
REFUND, I DOUBT PEOPLE ARE
WAITING THREE YEARS. WE WANT OUR MONEY.>>EXACTLY. THEO: THANKS FOR COMING IN. THE KINGS WILL BE WITH US NEXT
WEEK AS TAX SEASON WINDS DOWN. IF YOU HAVE QUEST