Are you paid commissions and taxed as an employee?
If so, you could be a business owner under the common law classification system.
“So what?” you might say. Well, we’ll tell you what, and it’s a lot! You are likely losing tens of thousands of dollars in business expense deductions each year. You may even think you are getting those deductions, without realizing that they are disappearing in the calculation of your tax return.
Don’t worry–we’ve got the tips you need to save you from bad tax treatment in our new article titled Tax Tips: Are You Really an Independent Contractor But Getting a W-2 as an Employee? Change Tax Forms to Cut Your Tax Bill?
Three ways our fact-filled article can help you:
- We’ll explain how Allstate insurance agent Dan Butts who was paid his commissions as a W-2 employee easily escaped the sneaky alternative minimum tax (AMT) when the IRS tried unsuccessfully to disallow his $37,000 in business expenses. He had a very simple solution that you can use, too, when you read the full article.
- We’ll tell you the three-factor test that the IRS uses to decide whether you are an independent contractor or an employee. It will all become quite clear when you read the full article.
- You’ll learn why we think it is a good idea for non-statutory employees to file Form 8275 and how it can help you to avoid potential penalties. This optional form gives the IRS information that will be in your favor, as you’ll discover when you read the full article.