Before I start-in on the answer to this question, please understand this article only pertains to individuals who use their personal vehicle for self-employed, freelance, or 1099 contract work. Any work you do for an employer from whom you receive a form w-2 does not apply; even if you are the owner. If you (as […]
So, You Want to Claim a Certain Someone As Your Dependent?
Everyone is looking for a way to lower their tax bill and maybe even get a little refund back. I see lots of people attempting to be really… “creative” in coming up with a few dependents to help them achieve this goal. Before you get too carried away with how easy it can be to […]
1099-Misc: Other Income vs. Nonemployee Compensation
One of my small business clients received a form 1099-misc from one of her customers for whom she’d performed a business service. The customer unknowingly reported the income using box 3: “Other Income” when she should have reported it in box 7: “Nonemployee Compensation”. So what’s the difference? One is for payment for services performed, […]
IRS Inadequacies -You Need To Know This
With the technology and requirement of e-file in place, the IRS customer service and document processing activities are more automated than ever. It’s easier to file your taxes, we’re not printing tons of paper copies any more, and the turn around time of the average refund has gone from 6 weeks to 2 weeks – […]