This is our annual reminder that if you use workers other than employees to perform services for your business and pay them $600 or more for the year, you are required to issue each one a Form 1099-NEC after the end of the year to avoid facing the loss of the deduction for their labor and expenses. The 1099s for 2020 must be provided to workers no later than February 1, 2021. The forms are normally due January 31, but since it falls on a Sunday in 2021, the due date is extended until February 1.
One frequently overlooked tax benefit is the spousal IRA. Generally, IRA contributions are only allowed for taxpayers who have compensation (the term “compensation” includes wages, tips, bonuses, professional fees, commissions, taxable alimony received, and net income from self-employment). Spousal IRAs are the exception to that rule and allow a non-working or low-earning spouse to contribute to his or her own IRA, otherwise known as a spousal IRA, as long as the spouse has adequate compensation.
You have probably heard others discussing living trusts but may not understand the reasons for them or whether you should have one. Living trusts are an estate-planning tool, and there is not a one-type-fits-all living trust. … Read More
Individual Planning Opportunities Did You Collect Unemployment Income This Year? If you did, you should be aware that it is taxable for federal purposes and that most states also tax unemployment benefits. Even if you had … Read More
With the passage of the CARES Act stimulus package earlier this year, the federal government added $600 to the normal state weekly unemployment benefits and increased the number of benefit weeks to a total of 39. … Read More
If you have lost your job, there are a number of tax issues you may encounter. How you deal with these issues related to job loss can profoundly impact your taxes and finances. The following are … Read More
Paper Tax Return: The IRS Will Not Open Your Mail Right Away IRS Paper Tax Returns are just another item on the list that coronavirus is affecting our lives? The Internal Revenue Service has completely flipped … Read More
May 2020 Live Updates and News The world continues to shift with all the economic changes and fallout of COVID-19 outbreak. This is hitting people personally and professionally. Businesses are prematurely opening without authorization of the … Read More