The short answer is yes, tips are taxable. If you work at a hair salon, barbershop, casino, golf course, hotel, or restaurant, or drive a taxicab, then the tip income you receive as an employee from those services is taxable income. Here are a few other tips about tips: Taxable income. Tips are subject to […]
Reporting Tip Income: The Basics Read More »
The Taxpayer Certainty and Disaster Tax Relief Act, passed on December 20, 2019, includes several provisions that may apply to tax-exempt organizations\’ current and previous tax years. As such, tax-exempt organizations should understand how these recent tax law changes might affect them. With this in mind, let\’s take a look at three key pieces of
New Tax Law Effects Tax-Exempt Organizations Read More »
Form 8962, Premium Tax Credit, reconciles 2019 advance payments of the premium tax credit and may also effect a taxpayer\’s ability to get advance payments of the premium tax credit or cost-sharing reductions. Taxpayers who don\’t file and reconcile their 2019 advance credit payments may not be eligible for advance payments of the premium tax
Form 8962: Reconciling the Premium Tax Credit Read More »
The Tax Cuts and Jobs Act (TCJA), enacted in December 2017, limited the itemized deduction for state and local taxes to $5,000 for a married person filing a separate return and $10,000 for all other tax filers. The limit applies to tax years 2018 to 2025. As in prior years, if a taxpayer chose the
Tax Treatment of State and Local Tax Refunds Read More »
The Tax Cuts and Jobs Act has resulted in questions from taxpayers about many tax provisions including whether interest paid on home equity loans is still deductible. The good news is that despite newly enacted restrictions on home mortgages, taxpayers can often still deduct interest on a home equity loan, home equity line of credit
Home Equity Loan Interest Still Deductible Read More »
As part of final guidance issued that pertains to the Tax Cuts and Jobs Act of 2017, new rules and limitations are in effect for taxpayers who deduct depreciation for qualified property acquired and placed in service after September 27, 2017, and, as a business owner, they could affect your tax situation. Let\’s take a
New Rules for Depreciation and Expensing Read More »
If you haven\’t contributed funds to an Individual Retirement Account (IRA) for tax year 2019, or if you\’ve put in less than the maximum allowed, you still have time to do so. You can contribute to either a traditional or Roth IRA until the April 15th due date, not including extensions. Be sure to tell
It\’s Not Too Late to Make an IRA Contribution Read More »
If you hire someone for a long-term, full-time project or a series of projects that are likely to last for an extended period, you must pay special attention to the difference between independent contractors and employees. Why It Matters The Internal Revenue Service and state regulators scrutinize the distinction between employees and independent contractors because
Worker Classification: Employee vs. Contractor Read More »
Social Security benefits include monthly retirement, survivor, and disability benefits; they do not include Supplemental Security Income (SSI) payments, which are not taxable. Generally, you pay federal income taxes on your Social Security benefits only if you have other substantial income in addition to your benefits such as wages, self-employment, interest, dividends and other taxable
Are Social Security Benefits Taxable? Read More »
If you are ready to file your taxes but are missing important tax forms here\’s what you should do: Form W-2 You should receive a Form W-2, Wage and Tax Statement, from each of your employers for use in preparing your federal tax return. Employers must furnish this record of 2019 earnings and withheld taxes
What to Do If You Are Missing Important Tax Forms Read More »
