Supreme Court Says No to Double Taxation!

If you have ever earned income in another state, you may have been unpleasantly surprised when your tax adviser informed you that you owed taxes to two states – to the state where the income was earned and to your state of residency. What?! How can this double taxation be? The concept of double taxation …

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Supreme Court Decides Severance Pay is Subject to FICA Tax

In a unanimous decision (with Justice Kagan recused), the Supreme Court, reversing the Sixth Circuit Court of Appeals, has held that severance payments that were made to involuntarily terminated employees and that weren’t tied to the receipt of State unemployment insurance, are subject to tax under the Federal Insurance Contributions Act (FICA). The Court easily …

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