Tag Archives: Medicare

Why no SS Withholding?

Today TaxMama® hears from Inteph in the TaxQuips Forum, who made a new discovery.  “A young lady made about $15,000 in 2012. The employer (a city in California) withheld income tax and Medicare tax but not SS tax. Boxes are 3 and 4 are blank.  What do I tell her and how do I prepare her […]

Mom Provides Child Care

  Today TaxMama hears from Scott in the TaxQuips Forum who needs guidance. “My mother in law babysits for me, and I pay her a flat amount every month to do so. Her only job is working for us right now. She needs 3 more years of income to earn enough credits to be fully […]

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:

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 […]

Ask TaxMama Issue 654 – Still Summer

  Dear Family, Friday is a nice, gray day here in the Valley. The sun is not burning brightly down upon our heads and shoulders – at least, not yet. Thank goodness. It’s been tough out there – and my car’s A/C unit seems to have a leak. It only blows cool air when Rick […]

SB 924: The Bill That Ended Physical Therapy Benefits For CA Seniors

This is a plea from Chris Reed, who is asking for your help. Family, Friends, Current and Former Patients,   Many of you know that I have become heavily involved in the politics of my profession. I am writing to ask your help. We are fighting for our profession right now. I have attached a letter […]

Ask TaxMama Issue 653 Happy Aviation Weekend

 Dear Family, Our celebration this week is all about aviation, flight and fancy. This takes me back to a rather taxing incident in high school. My boyfriend was a pilot and I loved to go flying with him. So did his sociology instructor, the Reverend Carroll N. O’Dell. When Allen was in Mr. O’Dell’s class, […]

Medicare Premiums and SE HI Deduction

In a Chief Counsel Memorandum (CCM) dated May 1, 2012, released July 13, 2012, IRS addressed the issue of Medicare premiums and the self-employment health insurance deduction.     For years IRS has stated in its publications that Medicare premiums do not qualify for the self-employed health insurance deduction. In early 2011 IRS stated in its […]