Tag Archives: Employment

Doubling My Income

Today TaxMama® hears from Idlkotr  in the TaxQuips Forum, with a good question.  “I have the opportunity to be an independent contractor. I am an occupational therapist who will be working with disabled children in their home. Thus, a lot of driving. I will be doubling my income. I do not have a clue how […]

Renting to LLC

Today TaxMama® hears from RJ in the TaxQuips Forum, with a travel question. “I am a single member LLC. I have a long-term (3 year) out-of-state contract, which requires me to be physically onsite at the client’s location 75% of the time (3 weeks per month). I am currently renting an apartment and deducting the […]

Using Per Diems

Today TaxMama® hears from Raj in the TaxQuips Forum, with a common issue. Let me summarize. (You can read the discussion here ) His tax return is being audited and the IRS auditor wants copies of receipts for his hotel stays for all his travel. But he used the IRS per diem rates, so he […]

No Per Diem

Today TaxMama® hears from Angel in the TaxQuips Forum, with a naive question. “I travel out of the country, on average, 6 months a year. My company handles everything pretty well, but I do have one question. If we take a day off for whatever reason, we lose our per diem for that day. Is […]

Employee or Contractor

Today TaxMama® hears from Roger in the TaxQuips Forum who is frustrated with the concept. “I guess my question would be, what is different about what I’m doing and, say, a general contractor ICing a plumber regularly to plumb houses he is building? Or a magazine that subs out to a freelance writer? These guys […]

Deducting My Labor

Today TaxMama® hears from Kevin with an idea others have had. “Recently our investment property is actually turning into a little bit of income property. If I hire out a job to be done, I usually write off the expense, including labor. If I do the work myself, is there any way that I can […]

Fighting Abusive Employers

Today TaxMama® hears from Nick in the TaxQuips Forum who is angry. “This year I saw some disturbing instances where independent contractors were issued 1099-MISC for higher amounts than they were actually paid. Some of contractors were paid in cash and there are no supporting documents on how they were paid. The reason for these […]

Employers Need to Act Soon to Get Expanded Credit for Hiring Vets

Courtesy of the Internal Revenue Service Employers that hired unemployed veterans during late 2011 and early 2012 had an expanded period to request the required certification for claiming the expanded Work Opportunity Tax Credit (WOTC). That expanded period ends on Tuesday, June 19. The IRS is reminding employers that for eligible veterans hired on or […]

Paying Double SS Tax

Today TaxMama® hears from Stanton in the TaxQuips Forum with this scenario. “A person by June 2012 will have earned $110,200 as an employee, with the maximum Social Security deducted. Then that person becomes an independent contractor for the balance of 2012. Is this person subject to the SS tax for the additional compensation over […]

Missing Hotel Receipts

Today TaxMama® hears from Tim in the TaxQuips Forum with this question. “A relative was sent by his company to work far away from home in different places for weeks at a time. He was given a nonaccountable per diem that was included in Box 1 of his W-2. He did not save the hotel […]