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Licensed Real Estate Agents
Most real estate professionals operate their business as a sole proprietorship. This means that you are not someone’s employee, you haven’t formed a partnership with anyone, and you have not incorporated your business. Statutory Nonemployees Licensed real estate agents are statutory nonemployees and are treated as self-employed for all Federal tax purposes, including income and…
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Types of Child Care Providers
“Kith and Kin” (Care Provided by Relatives, Friends and Neighbors) These caregivers are generally the most informal type of child care providers. It is often called “Kith and Kin” care and can take place in the caregiver’s home or in the child’s home. In some instances, the provider will be a spouse caring for his/her…
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Partnerships
A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business. A partnership must file an annual information return to report the income, deductions, gains, losses,…
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Interest Rates for the Second Quarter of 2016
Interest rates have increased for the calendar quarter beginning April 1, 2016. The rates will be: four (4) percent for overpayments, three (3) percent in the case of a corporation, one and one-half (1.5) percent for the portion of a corporate overpayment exceeding $10,000, four (4) percent for underpayments and six (6) percent for large…
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Small Business Health Care Tax Credit
Do you own a small business or run a tax-exempt organization with fewer than 25 full-time equivalent employees? If you do, the Small Business Health Care Tax Credit can help you provide insurance to your employees. You may be able to save on your taxes if you paid for at least half of their health…
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Information for Restaurant Owners
Question As an employer, do I have any liability for social security and Medicare taxes if my employees receive tips but don’t report them to me? Answer: Yes. Employers in industries where tipping is common know that they must report and pay taxes on tips employees report to them. However, many employers do not realize…
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Self-Employed
Who is Self-Employed? Generally, you are self-employed if any of the following apply to you. You carry on a trade or business as a sole proprietor or an independent contractor. You are a member of a partnership that carries on a trade or business. You are otherwise in business for yourself (including a part-time business).…
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Required Minimum Distributions
Information for Seniors and Retirees You cannot keep retirement funds in your account indefinitely. You generally have to start taking withdrawals from your IRA, SIMPLE IRA, SEP IRA, or retirement plan account when you reach age 70½. Roth IRAs do not require withdrawals until after the death of the owner. Your required minimum distribution is…
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Hiding Income Offshore
Income from Abroad is Taxable Many United States (U.S.) citizens and resident aliens receive income from foreign sources. There have been recent reports about the interest of the Internal Revenue Service (IRS) in taxpayers with accounts in Liechtenstein. The interest of the IRS, however, extends beyond accounts in Liechtenstein to accounts anywhere in the world.…
