When the Federal Housing Authority (FHA) made the Alternative Minimum Tax (AMT) apply to mortgage brokers, a lot of them got upset. Which should come as no surprise. You see, the IRS was disallowing business expenses on Schedule C and moving those expenses to the itemized deduction category. Of course, miscellaneous itemized deductions are not deductible for the AMT, so … [Read more...]
Independent Contractor
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Avoid a fatal mistake with independent contractors
If you’re using independent contractors who are paid on a 1099, be careful. Be very careful. You see, if you don’t handle things exactly right, the IRS may decide that your independent contractors are actually W-2 employees. Which can open a large can of worms. If you want to play it safe and make sure that your independent contractors stay independent, don’t miss my new … [Read more...]
How to avoid payroll taxes and penalties
Did you goof and incorrectly classify an employee as an independent contractor? No need to panic. I can show you a perfectly legal way to avoid payroll taxes, penalties, and interest if you’ve incorrectly classified workers as 1099 independent contractors rather than W-2 employees. Want to find out more? I invite you to read my new article titled Tax Tips: New IRS … [Read more...]
How to keep your 1099 from starting an IRS audit
Careful! An incorrect 1099 that overstates your income is a problem that can lead to a painful tax audit. What can cause errors? One huge cause of incorrect 1099s is a misunderstanding of what 1099 income really is. Another cause of problems is correcting your 1099 the wrong way. But don’t worry. We’ll clear up the confusion when you read our brand new article titled Tax … [Read more...]
Get your independent contractor’s tax status right
Do you work with independent contractors? If you do, it’s vitally important to get their tax status right from day one. Why? Because if you get the contractor’s status wrong, and they are considered by the IRS to be “employees,” you could suffer major penalties. That’s why it’s so important to read my latest article titled Tax Tips: Tax Lawyer Is an Employee, Not an … [Read more...]