Self-employment tax
What’s New on the 2012 Form 1040
IRS has released on its website a number of the final tax forms and instructions for the 2012 tax year, including Form 1040, along with its related schedules. They reflect many administrative and law changes that apply for the 2012 … read more
Did You Know About the Stealth Tax Increase?
We have all heard about the approaching “fiscal cliff”, where in 2013, automatic spending reductions kick in, tax rates go up for all taxpayers, the temporary payroll cut goes away, estate and gift taxes go way up and various business … read more
No Net Income and He Still Owes Tax!
I recently prepared a tax return for a client that had a loss on their tax return. If fact, he had a Net Operating Loss on his return that we were planning on carrying back to prior years. He seemed … read more
Do I need to Pay Self-Employment Tax if I Have No Profit?
Do you remember your first job and the excitement that generated? Do you remember your first paycheck and the shock that was generated when you realized that there is a difference between gross pay and net pay? Self-employment income can … read more
8 Self-employed IRS Tax Tips
Many people love owning their own business. Making all the decisions and satisfying their customers. There are many benefits that come from being your own boss. If you work for yourself as an independent contractor, or you carry on a … read more
Tax Planning for a Foreign Assignment
Many taxpayers do their homework when it comes to planning for their domestic and international income tax obligations when they are going overseas. Often the consulting begins and ends with income tax planning only. The United States has entered into … read more
A Simple Tax Cut – Or Not!
Great news for wage earners – Congress has passed a bill that temporally extends the 2% reduction in the employee portion of FICA taxes. Of course, they did not make it that simple. For individuals that earn more than $18,350 … read more
Does Your S-Corp. Pay "Reasonable" Compensation?
Shareholders of an S-Corporation can generally receive distributions of profits without immediate tax consequences. However, the IRS has taken a long standing position that where the shareholder is also acting as an employee of the corporation, “reasonable” compensation must be … read more
Tips for Students With a Summer Time Job
The summer is almost over and many students are working or had been working summer jobs. Some of these students may not realize that taxes will have to be paid on their earnings. They may be under the impression that because it is only a … read more
The DPAD Goes to the Next Level
For years starting in 2010, the domestic production activity deduction (DPAD) increases to 9% from its current level of 6%. Also, the deduction is being scrutinized more closely by the IRS Large & Mid-Size Business Division. These facts give companies … read more