Tag Archives: Labor

New Social Security Mismatch Rule

Shades of 1984 and McCarthyism! This new rule is going further than simply holding employers responsible for ensuring that the workers they hire are all legal. That is as it should be. Everyone should take responsibility for their own actions and choices. However, it includes a snitch-factor – encouraging employees to turn others in – […]

Over 65 and Working

Today TaxMama hears from Mike in New York City who’s got this question. “If you’re 65 or older and still working, does it still pay to open an IRA and get insurance coverage in case of disability? I have neither.”

EIN for Two Businesses

Today TaxMama hears from Linda in VA who has this story. “We have a small residential construction business and have established an EIN. We also have a very busy notary business. Until now we have used our Social Security numbers when registering as independent contractor to do notary work. We’d like to get better organized […]

Small Business and Work Opportunity Tax Act of 2007

By David & Mary Mellem, EAs This Act, made Public Law 110-28 by President Bush’s signature on May 25, 2007, increases the Federal Minimum Wage and provides some tax changes as well. It can be found at the government’s web site of thomas.loc.gov by searching for HR 2206 or by going to Public Laws and […]

Not Qualified Distribution

Today TaxMama hears from Harry in Pennsylvania, who tells us, “I withdrew money from an IRA which used to be an employer annuity, but became an IRA when I left them. I am over 55 and separated from service. Does exception 2, separation from service, apply to distributions from an IRA? Since I am under […]

Second Job Deductions

Today TaxMama hears from WW in the Tax Parlor, who tells us. “I have a full time job in a corporation. I also teach Yoga part time as an employee. My full time job has nothing to do with Yoga. Can I deduct the cost of Yoga teacher training and Yoga books?” Dear WW, You […]

Hiring Kids

Today TaxMama hears from Deanna in the Tax Parlor, who says “My husband and I are about to elect S-corp status in an LLC. We currently pay our kids wages in the LLC, but are wondering if there is any real benefit to continuing this in the S-corp?” Hi Deanna, The benefits for hiring your […]

Corporate Commuting Car

Today TaxMama hears from George in Brooklyn, NY who asks. “If a corporation gives an individual a car to use for commuting purposes, what amount gets reported on the individual tax return and how does the corporation report it on their side? Is the income subject to Social Security taxes for the employee?” ~~~~ Dear […]

Not Alimony

Today TaxMama hears from Lorrie in New York who just got a sudden shock, “My divorce settlement of 2004 clearly states that neither party can make a claim for maintenance or spousal support. I do get 1/2 the net of my former husband’s retirement pension. The State deducts our taxes on the full amount, before […]

LLC Now or Later

Today TaxMama hears from Tommi in NC who asks, “When would be the best time to change from a sole proprietor to an LLC? Now? Or would it be best to wait until the first of the year, since I will have to get a new tax ID number (I will have employees)? Do I […]

ITIN Not

Today TaxMama hears from Cindy in North Hollywood, CA who says. “I am 19 years old and am looking for a job that will hire me with an ITIN. Do you know of any websites or places? I have been looking around and just don’t get anywhere. Can you help me or give me any […]