Category Archives: Income

Income Distribution or Payroll?

Today TaxMama® hears from ASquare in the TaxQuips Forum with this question. “I work as a full time employee for a company on W2. I own S-CORP that i get income for the services provided in my free time. Do I need to run the payroll for that money earned on S-CORP or can I […]

Family Caregiver

Today TaxMama® hears from KP in the TaxQuips Forum, with this question.  “My sister-in-law received a 1099-Misc with an amount in box 6 for medical health care payments for providing care for her husband, a veteran receiving VA benefits. I know the amount is taxable to the federal government, but is it subject to social security […]

Gift or Income

Today TaxMama® hears from Asdfgh in the TaxQuips Forum, who tells us.  “My daughter plays piano for school choir. Doesn’t ask for money. She gets “thank you” from school PTO in form of flower bouquet and check for a few hundred dollars. Is that taxable income?”

Tax Exempt Rentals

Today TaxMama® hears from Grace in the TaxQuips Forum with an interesting question. “I understand that if you rent/lease your home for production filming for 14 days or less, then that income you earn is “exempt” from California and Federal taxes. Although a 1099 will still be issued by the filming company, on our taxes […]

Income Not Reported

Today TaxMama® hears from Ninja in the TaxQuips Forum who got an IRS notice. Since her problem is universal, let me generalize her situation.  “This is the time of year IRS starts sending out the CP2000 notices. These letters are computer-generated. The IRS computer compares your income to the information it has received from W-2s, […]

Sloppy 1099ing

Today TaxMama® hears from Gary in the TaxQuips Forum who has this problem. Let me paraphrase:  “Gary has already filed his LLC’s tax return, reporting all his income properly. Suddenly, nearly three weeks past the 1099 deadline, he gets a 1099 showing income he received, plus reimbursements for materials and supplies – that were not […]

Child Chips In

Today TaxMama® hears from Susan in the TaxQuips Forum with a well-reasoned question. “This concerns a mentally disabled 20-year-old living at home. She just started receiving money from her father’s pension, instead of Social Security Disability. At what point does contributing to the household become income. I contend that as long as you are the […]

Hypothetical Questions

  Today TaxMama hears from someone in the TaxQuips Forum with another question about a barter. Rather than going into the details of her question (which you can read here), let’s talk about hypothetical questions.

What is Income?

  Today TaxMama hears from Jude in the Tax Quips Forum, with a wise question. “After reading about how barter and other unthought-of things are considered taxable, I started wondering. Are any of the following considered taxable – and how much is worth worrying about?” And Jude lists a few common happenings – which you […]

Frequent Flyer Miles

Today TaxMama hears from Diana in the TaxQuips Forum with a question about a fun topic. “I am hearing some confusing opinions on whether or not I am supposed to claim my awarded airline miles…My husband and I have actually already received some awarded airline miles for opening credit cards this year. I would love […]