When we say an employee business tax deduction we mean it to refer to an employee business expense, such as payroll. We will point out the difference between how to treat an employee tax expense versus a 1099 contractor expense, along with AMT under tax reform. For starters, one major difference between being an employee and being self-employed is how you deduct the expenses you incur related to your work. A self-employed individual is able to deduct expenses on his or her business schedule. However, an employee is generally limited to deducting them as itemized deductions.
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1099-MISC Filing Date: 1099 MISC Filing Deadline
1099-Misc Filing Date Deadline is January 31st What is Requirement to issue a 1099-MISC Form? The 1099-Misc filing date is January 31, 2019. Payment to independent contractors is known as non-employee compensation or NEC. There are specific requirements when you issue a 1099-MISC form. The IRS requires a business to issue a Form 1099-MISC to […]
IRS Tax Guidance: S Corporation Stockholder, Reasonable Compensation
S-Corporation Stockholders, Get IRS Tax Guidance For private corporations and their employees, the IRS provides initial guidance on the new tax benefit for stock options and restricted stock units. The Internal Revenue Service sent out Notice 2018-97 offering guidance on a recent tax law change. This change allows employees who qualify, from privately-held corporations, to […]
12 Common Tax Problems to Avoid
There are 12 common tax problems to avoid in order to succeed in your business. These issues also overlap to individual taxpayers as well. Here are specific steps you should take to help ease the struggle. These are 12 of the most common tax issues that people report each year.
Don’t Get Sick Over Medical Insurance and Taxes
The Affordable Care Act (ACA) put significant penalties on taxpayers and their families who do not have ACA-compliant health insurance. Even though the tax reform took out these penalties after 2018, they still apply for this year. And, they can be as high as the greater of $2,085 or 2.5% of the family’s household income. So, all taxpayers must carry medical insurance. Unfortunately, it is one of your largest expenses. While the penalty will go away in 2019, you must understand how to handle the health insurance expense for tax purposes. This is so you can get the most tax benefits possible.
Year-End Tax Planning is Not Business as Usual; Things You Need to Know # 2
With Tax Reform in 2018, there are significant changes for both individuals and businesses. If you remember, we told you about how the IRS has to create or revise approximately 450 forms, publications and instructions. Also, the IRS has to modify around 140 information technology systems to make sure it can accommodate the new tax forms. This will include writing tax regulations for all of these changes – a daunting task for sure. The following are issues that could affect your or you personally. So you may need to plan for these tax changes.