Blog Archives

Can You Establish a SEP Plan if you are a Sole Proprietor? What if that Sole Proprietorship Had Historically Passive Income?

Regardless of their nature or topic matter, off beat questions are one of the spices of life. When it comes to the realm of taxation generally speaking the answers frequently distill down to - it depends. These two questions were

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Posted in Business Expense, Deductible Expense, Employee Business Expense, Employment Tax, Partnership, Passive Activity, Payroll Tax Problems, Self Employ, Sole Proprietor, Sub-chapter S, Tax Deductible Expenses, Unemployment

Worker Classification & the Colorado Department of Labor & Employment CRS 8-70-115

This post is about my experiences with C.R.S. 8-70-115 as they pertain to the Colorado Employment Security Act of 2013.  First off let me start by saying that there are some really good hard working bureaucrats paid by our tax dollars working

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Posted in Colorado Department of Labor & Employment, Employment Tax, FICA, Payroll Tax Problems, Small Business, Tax Guidance & Preparation, Tax Problems & Requests, Unemployment

IRS Publication 503 – Dependent Care Expenses

A taxpayer came to me today for verification on dependent care expenses. Their basic profile may be similar to yours. A husband and wife with two children in day care. The wife is a full time student that does not

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Posted in Children, Dependent, Disallowed Expenses, Husband/Wife, Tax Guidance & Preparation, Tax Problems & Requests, Taxable Income, Unemployment

Unemployment Benefits and the IRS

Unemployment compensation generally includes, among other forms, state unemployment compensation benefits, but the tax implications depend on the type of program paying the benefits. You must report unemployment compensation on line 19 of Form 1040, line 13 of Form 1040A,

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Posted in Income, Tax Guidance & Preparation, Unemployment

IRS Form 8952 – Voluntary Worker Classification Settlement Program

I received an interesting call today from a small business employer who was reported to the IRS by a disgruntled past worker who claimed that he was paid as an independent contractor (and received IRS Form 1099) when in actuality

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Posted in Employee Business Expense, Employment Tax, Independent Contractor, Trust Fund Recovery Penalty, Unemployment, Worker Classification

Scum Bags Millionaires Collecting Unemployment

Its a rare occasion that I pontificate in my tax blog but this just took me over the top this morning....... Recently released IRS data indicates that 2,840 households making at least $1 million collected $18.6 million in unemployment insurance

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Posted in Unemployment

How to Classify Worker – Independent Contractor or Employee

The IRS uses the common-law factors listed below to determine whether a worker is an independent contractor or an employee. All the factors below must be taken into consideration in determining worker classification Instructions. An employer should not tell an

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Posted in Employee Business Expense, Payroll Tax Problems, Self Employ, Small Business, Social Security, Social Security Tax, Sole Proprietor, Sub-chapter S, Tax Abuse, Tax Deductible Expenses, Tax Guidance & Preparation, Tax Problems & Requests, Tax Relief, Trust Fund Recovery Penalty, Unemployment, Wage Garnish

Tax implications of unemployment benefits

Taxpayers who received unemployment benefits in 2009 are entitled to a special tax break when they file their 2009 federal tax returns. This tax break is part of the American Recovery and Reinvestment Act of 2009.  Here are five important

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Posted in Unemployment

IRS Publication 4128 – Tax Impact of Job Loss

IRS Publication 4128 Tax Impact of Job Loss was released in August of 2009. The publication explains the job loss tax issues connected to severance pay, unemployment compensation, pension plans, IRAs, expenses for a job search, and possible moving costs. It also

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Posted in Unemployment

Unemployed Tax Ramifications

The loss of a job may create new tax issues. Severance pay and unemployment compensation are taxable. Payments for any accumulated vacation or sick time also are taxable. You should ensure that enough taxes are withheld from these payments or

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Posted in Unemployment
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