Tag Archives: Labor

Ask TaxMama Issue 674 – Happy Prez Weekend

Dear Family, Odd-funny things keep happening around here. Like scraping ice off my windshield – in California! Like going to our breakfast meeting and the restaurant is closed. Like the IRS press release that that help and information is available in Spanish – but the press release was in English. Like my friend sending me […]

Missing Your W-2? Here’s What to Do

Courtesy of the IRS [TaxMama note: Don’t be in a hurry to file. Wait until you’re sure you have ALL the W-2s, 1099s, etc., including the corrected 1099s your brokerage sends out in March.] It’s a good idea to have all your tax documents together before preparing your 2012 tax return. You will need your […]

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 […]

Health Insurance Zinger

Today TaxMama® hears from Larry in the TaxQuips Forum with a quick question. “If an employee pays for his family’s health insurance through payroll withholding, is the amount he pays free from taxes? My clients paid $6,000 in 2012 through payroll withholding and his W-2 gross income in block 1 (and blocks 3 & 5) […]

Proposed Regulations Issued on Additional Medicare Tax

Courtesy of the IRS A new Additional Medicare Tax goes into effect starting in 2013. The 0.9 percent Additional Medicare Tax applies to an individual’s wages, Railroad Retirement Tax Act compensation, and self-employment income that exceeds a threshold amount based on the individual’s filing status. The threshold amounts are:

Life Insurance

Today TaxMama® hears from Hernandez in the TaxQuips Forum with good question. “I am one of two partners in a architecture service partnership. We are considering using life insurance, specifically whole life, as a way to save excess cash and lower our taxes. Are payments for insurance considered business expenses for a partnership? What is […]

Employer Leave-Based Donation Programs to Aid Victims of Hurricane Sandy

[TaxMama Summary: As long as the employer and employees follow the IRS guidelines, employees will be allowed to donate their sick pay, vacation pay or personal leave payments to the organizations helping victims of Hurricane Sandy. Effect on Employees: The amount donated will not be added to employees’ wages – so they will not have […]

Employers Hiring Veterans by Year’s End May Get Expanded Tax Credit

Employers planning to claim an expanded tax credit for hiring certain veterans should act soon, according to the IRS. Many businesses may qualify to receive thousands of dollars through the Work Opportunity Tax Credit, but only if the veteran begins work before the new year. Here are six key facts about the WOTC as expanded […]

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 […]

IRS Announces 2013 Pension Plan Limitations

Courtesy of the Internal Revenue Service WASHINGTON — The Internal Revenue Service today announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for Tax Year 2013.  In general, many of the pension plan limitations will change for 2013 because the increase in the cost-of-living index met the statutory thresholds […]