Self-Employment Tax Rate
The 2010 Tax Relief Act reduced the self-employment tax by 2% for self-employment income earned in calendar year 2011. The self-employment tax rate for self-employment income earned in calendar year…
Read moreSelf-Employment Tax
Self-employment tax is a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld…
Read moreBusiness or Hobby? Answer Has Implications for Deductions
The Internal Revenue Service reminds taxpayers to follow appropriate guidelines when determining whether an activity is a business or a hobby, an activity not engaged in for profit. In order…
Read moreHow does an employee recover FICA taxes that were erroneously withheld by the employer?
Employees are encouraged to contact their employers and request that they seek a refund of the erroneously withheld FICA on the employees’ behalf. Because employers also pay a portion of FICA…
Read moreWhat is military differential pay?
Some employers voluntarily agree to continue paying full wages to their employees who are called to active duty. This is commonly referred to as differential pay. Differential pay is any…
Read moreIRS Statement on Airline Ticket Taxes
Today’s Congressional action extending the Federal Aviation Administration authorization reinstates retroactively the airline ticket taxes for passengers who traveled during the lapse of the FAA’s authorization. As a result of…
Read morePersonal Residence/Real Property
Be sure to take photographs as quickly as possible after the casualty to establish the extent of the damage. Contact the title company, escrow company or bank that handled the…
Read moreReconstructing Your Records
Reconstructing records after a disaster may be essential for tax purposes, getting federal assistance or insurance reimbursement. Records that you need to prove your loss may have been damaged or…
Read moreDo’s and Don’ts of Hardship Distributions
Given the current economic climate, a greater number of participants may be requesting hardship distributions from their retirement plans. To avoid jeopardizing the qualified status of the plan, employers and…
Read moreGambling Income and Losses
The following rules apply to casual gamblers. Gambling winnings are fully taxable and must be reported on your tax return. You must file Form 1040 (PDF) and include all of…
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