By coinnews 
00:00 Speaker A
April 15th is under two weeks away when taxpayers will have to file their taxes for 2024, but looking ahead of future years, Senate Republicans have issued their tax plan with many potential changes, like not taxing tips, or even eliminating income tax. Joining me now, Mark Kohler, KKOS lawyers founding and senior partner. Um so I know you want to quiz me, but I, like, we always talk about these plans. We don’t know how much of this is going to get through, but what should people be watching in terms of what it’s going to change for them?
00:29 Speaker B
Yeah.
00:30 Speaker B
Well, you bet I actually read the 70-page blueprint last night. It was a nice little bedtime story. No and, uh, but a couple things people need to know. There is nothing in it that says we’re going to eliminate income tax.
00:43 Speaker A
I’m sure.
00:50 Speaker B
Right.
00:51 Speaker B
It’s about trying to find the savings to provide tax cuts to help give average Americans, middle-income Americans some more breathing room financially. And it means we either got to make more money, or we’ve got to cut money somewhere to do that and make it balance in 10 years. So this was the Republican’s first shot at it. It kind of goes back and forth, it’s like watching sausage made, you do not want to see this.
01:17 Speaker A
No.
01:17 Speaker B
It’s a little ugly, but it’s getting clear and clear. Now it’s on the house Republican side to take their shot at it.
01:25 Speaker A
And you wanted to quiz me about common tax myths. I’m sure I have a lot.
01:29 Speaker B
Well, you know, it’s been a stressful day for a couple of people. I was on the floor of the stock exchange yesterday. No one was jumping out of windows. It’s short-term pain, long-term gain. Let’s try to stay strong. But one thing I do want to add is to people is to not stress further. Tax season is upon us. The tax extension deadline is April 15th. Let’s change our perspective. Everybody, we don’t need to freak out this weekend. So I’m going to ask you, I’ve got a few questions real quick.
02:23 Speaker A
I see.
02:44 Speaker A
Yeah, let me know.
02:45 Speaker B
So do you think it’s better to file by April 15th or file an extension? What would you say?
02:51 Speaker A
I don’t know, but I have filed for extensions before, I will say.
02:56 Speaker B
Okay. Did the sky fall? You were okay?
03:00 Speaker A
Okay.
03:00 Speaker B
Yeah, you’re right. You know, you actually increase your you you actually decrease your chances of an audit when you file an extension, and it gives you more time to file, to prepare. Maybe you’re going to interview new tax advisor, so that’s the time to do it. So people don’t need to rush now. It’s not an extension to pay. So if you think you owe, send in some money, and if you’re certainly do a refund, go ahead and file. But don’t listen to anyone that says, “You got to hurry and file.”
03:33 Speaker A
Got it.
03:34 Speaker B
File an extension.
03:35 Speaker A
File an extension. Okay. I, yes? Quiz question?
03:42 Speaker B
Oh, no. Go ahead.
03:44 Speaker A
Oh no. Go ahead.
03:45 Speaker B
Okay, I’ll I’ll ask you another. So, so
03:47 Speaker A
It’s when I know the answer too.
03:49 Speaker B
Oh, you do. Okay. Well over 50 million Americans now have a side hustle, and the question is, is that going to be, um, tax greater or not? Uh, it’s having a side hustle going to increase your tax rate?
04:08 Speaker A
Right, is gig income higher tax at a higher rate?
04:12 Speaker B
Yeah.
04:13 Speaker B
But what do you think? True or false?
04:14 Speaker A
I I I think false.
04:18 Speaker B
Yeah, you’re absolutely right. And the reason why is because with you have a side gig, you now get additional write-offs, home office, auto, dining, computers, electronics. So with that side gig, again, it’s a, an idea, a common strategy, take more time, dig up all those write-offs, and you’re actually pay less tax on that gig income because you don’t get those write-offs with your day job.
04:46 Speaker A
This is one of my favorite ones is, is it good to get a refund?
04:51 Speaker B
Oh, yes, yes. We could jump with that. Yeah. Um, I don’t know. What do you think? Do you want a refund?
04:57 Speaker A
I think you don’t want a refund.
05:00 Speaker B
Yeah, you are so smart. I’ve got to tell you, you’re doing great. Well, when you get a refund, you really just realized you gave the IRS an interest-free loan. Right. So ideally, we want to end up at zero. We don’t want to owe, we don’t want to pay, we want to shoot for that the best we can. Now, if you’re going to need a big refund, don’t go buy a big screen TV, people, of course. But let’s maybe adjust our withholdings or deposits so that we get closer to that zero.
05:44 Speaker A
We got to leave it there, Mark. I’m sorry. It’s a busy day. Mark Kohler, thank you so much for coming in.
05:49 Speaker B
Oh, that’s okay.