Self-employed left out of Trump payroll tax holiday…for now
Being your own boss is a challenge even in good times. Now, with the COVID-19 pandemic disrupting your personal and professional life, keeping your individual enterprise operating is particularly dicey. So you probably were thrilled when Donald J. Trump took executive action last weekend to establish a temporary payroll tax holiday. Since…
Bad tax preparers again make IRS’ Dirty Dozen scam list
If tax it the time of coronavirus taught us anything, it's that tax professionals are indispensable. On the heels of getting a handle on the 2017 tax reform changes, tax pros this filing season were handed even more jobs. They helped people understand COVID-19 economic relief payments, what tax tasks were delayed…
It’s time for post-filing tax record keeping
It's been almost a week since Tax Day 2015. That's why today's Tax Form Tuesday is celebrating Form 1040. Actually, this week's feature includes not just the actual tax return you recently sent to the Internal Revenue Service, but also the many forms and schedules that accompanied your return, plus all the…
What a COVID-related payroll tax cut could mean to you now and your retirement later
The White House has dropped its push for a payroll tax cut as part of the next round of COVID-19 relief. Although Donald Trump cited Democrats' objections to the payroll tax cut, top Senate Republicans also disliked the idea, seeing it as too expensive as they struggle to craft a relief version…
Form W-4 Employee’s Withholding Certificate Redesigned for 2020
Every employer must withhold (and later deposit) income tax from wages paid to each employee using the computational procedures and tables prescribed by the IRS. To calculate the amount of income tax to withhold, the employer must have a properly completed Form W-4 (Employee's Withholding Certificate) on file for each…
New Form 1099-NEC (Nonemployee Compensation) for 2020
Beginning with reporting for the 2020 tax year, nonemployee compensation (NEC) will be reported in box 1 of Form 1099-NEC (Nonemployee Compensation). For 2019 and prior years, NEC is reported in box 7 of Form 1099-MISC (Miscellaneous Income). Statements to Recipients If Form 1099-NEC is required to be filed, the…
Crazy tax deductions: When they don’t – and do! – work
You're working on your tax return and discover that you are that close to shaving a few more dollars off what you owe Uncle Sam. Many in this situation are tempted to get creative. Don't. The Internal Revenue Service has seen it all. OK, most of it. The bottom line is that…
Applying for a tax payment plan
Are you one of those folks who's worrying about how you'll pay your tax bill on July 15? If it's an amount that you just can't come up with or cover with a credit card, look into paying off Uncle Sam over time. The Internal Revenue Service offers a couple of ways…
7 ways to pay your tax bill due July 15
We're into the home stretch of the coronavirus extended 2020 tax season. That means that millions of taxpayers (or their tax preparers) are working on 2019 returns or extensions to finish up those 1040s. While you can send the Internal Revenue Service Form 4868 to get until Oct. 15 to submit your actual…
White House stimulus letter is an official IRS tax document you need to save
Congress might be working on another round of COVID-19 economic relief payment (EIPs). I say might because although the House in mid-May approved the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act and its provisions for even more stimulus money, the Senate and White House are dragging their heels. Not quite the max: Democrats, in…
