Key Insights
Why did Liz's fiancé not file taxes for 20 years?
Liz is not 100% sure of the reason, but she knows there was a history of not having a job, which made filing taxes unnecessary. When he did have a job, he didn't file taxes.
What are the potential consequences of not filing federal income taxes?
Not filing federal income taxes is a federal crime, and 2,581 people were incarcerated for it last year. The IRS is very good at collecting taxes, and they will catch up with you.
How can someone get current on their taxes if they haven't filed in years?
Proactively going to the IRS with the help of a tax professional can allow you to file about three to four years' worth of taxes without facing criminal charges. The criminal charges only occur when people try to hide from the IRS.
Why did Patrick's parents get upset when he asked them to forgive his loan?
Patrick's parents felt he was ungrateful and needed to work harder to pay off his debt. They believed he should take responsibility for his financial obligations.
What advice does Dave give Patrick about his financial situation?
Dave advises Patrick to get a real job that pays more than his current side hustle. He suggests looking into higher-paying jobs in the horse industry or getting a part-time job to quickly pay off his debt.
Should Eli and her husband buy or rent a house when relocating every 2-4 years?
Dave suggests renting in most markets, especially if the new city has a slow or non-appreciating housing market. He advises running numbers to see the rate of appreciation and average days on the market to make an informed decision.
What does Dave recommend Hadden do with his house during the NFL Draft?
Dave recommends Hadden rent out his house during the NFL Draft to make money, even if it means his parents have to stay elsewhere. He believes the financial opportunity is too significant to pass up.
How can Camel's brother settle the car loan co-signed with their late father?
Camel's brother should investigate whether there was credit life insurance on the loan, which would pay off the loan if their father died. If there was no such insurance, he should negotiate with the lender to settle the debt for a lower amount.
Why does Dave advise against cosigning loans?
Dave advises against cosigning because it puts you at risk of financial loss if the other party defaults on the loan. He quotes Proverbs 17:18, which says cosigning is a sign of lacking sense.
What is the best gift Justin can give his grandchildren to help them financially?
The best gift Justin can give is teaching his grandchildren financial principles, such as getting out of debt. He can offer to match their payments towards their car loans to incentivize responsible financial behavior.
How should Julia manage her finances after her husband's stroke?
Julia should look for remote work opportunities to supplement their income. She should also seek help from friends, family, and community to manage their expenses and avoid depleting their 401(k).
What does Dave suggest John do to pay off his car debt quickly?
Dave suggests John work extra hours for the next three months to pay off his car debt quickly, sacrificing his lifestyle temporarily to keep his hunting equipment and avoid selling the car.
Chapters
- Failing to file federal income taxes is a federal crime.
- Over 2,581 people were incarcerated for this offense last year.
- Proactively addressing tax issues with a tax professional can prevent criminal charges.
Shownotes Transcript
