What are the tax obligations of a “gig worker”?

If you’re a “gig worker” or freelancer, your tax obligations are different from an employee’s. You’re considered self-employed, so clients don’t withhold taxes from your payments. But even if they don’t send you information returns (such as Form 1099-K), you owe tax on that income. Gig workers may have to pay quarterly estimated taxes. Or, […]

Taxpayer loses deduction because of recordkeeping

To help defray the sky-high cost of gas, taxpayers who use their vehicles for business saw the standard mileage rate rise on July 1, from 58.5 cents to 62.5 cents. But you could lose that tax benefit if you neglect to keep good records as you go. In one case, a consultant and his wife’s […]

Who Needs Earthquake Coverage and Why

Who Needs Earthquake Coverage and Why – Insurance Journal https://bit.ly/3OvzTxl

Taxpayer data at risk?

Did IRS hiring practices during COVID-19 put taxpayer data at risk? The Treasury Inspector General for Tax Administration (TIGTA) recently took a look. By Jan. 2022, about 1,900 people hired from late March 2020 to mid-July 2021 hadn’t yet had their employment eligibility documents physically inspected, including some I-9 forms. Many were hired with deferred […]

Children employed in family businesses

Taxpayers can hire their children to work in their businesses but the children must hold legitimate jobs. In one case, a consultant and his wife’s estate weren’t entitled to business deductions for payments to “assistants,” who were the couple’s children and a grandchild. The payments were for alleged reimbursement or compensation for services provided in […]

IRS again faces backlog, bringing refund delays for paper filers

IRS again faces backlog, bringing refund delays for paper filers – Detroit Free Press https://bit.ly/3IVpLgc

Toyota Electric Vehicle tax credit phaseout

Toyota is the latest auto manufacturer to sell enough plug-in electric vehicles (EVs) to trigger a gradual phaseout of federal tax incentives for specified models sold in the U.S., joining Tesla and General Motors. Toyota reported that it has sold more than 200,000 EVs, meaning that its federal EV credits will begin to dwindle in […]

An update on the global minimum tax initiative

President Biden’s nominee to lead U.S. negotiations on the global minimum tax initiative recently told the Senate Finance Committee that the levy on profits of large multinational corporations would discourage their use of tax havens. Jay Shambaugh, nominated as Treasury undersecretary for international affairs, said that the 15% global minimum tax included as part of […]

OECD impacts international cooperation and treaties

Obstructing the international Organization for Economic Cooperation and Development (OECD) can have consequences. Recently, Hungary (whose corporate tax rate is 9.9%) blocked the European Union from finalizing an OECD agreement to set a minimum tax of 15% on large multinational corporations. Now, the U.S. Treasury Department is dismantling the United State’s tax treaty with Hungary. […]

Tax Incentives to own a home

There are several tax incentives for owning residential real estate. For example, eligible taxpayers can claim home mortgage interest deductions and property tax deductions. If eligible, they can also exclude from gross income up to $250,000 ($500,000 for married couples filing jointly) of gain realized on the sale of a principal residence. The Joint Committee […]