What is Form 1099-NEC? It’s simple; it’s the 1099 given to those that receive non-employee compensation, also known as independent contractor income. Non-employee compensation used to be represented in box 7 of Form 1099-MISC. It’s interesting to note that Form 1099-NEC is actually not new, but hasn’t been used since 1982, being first introduced as [...]
This article is about the somewhat strangely named Form 8379 – Injured Spouse Allocation. I say that it’s an odd name for a form because when you hear the word injury, the idea of physical injury pops into one’s head. However that is not the purpose surrounding this form. What the IRS means by injury [...]
Supplemental wages include, but are not limited to: bonuses, commissions, overtime pay, payments for accumulated sick leave, severance pay, awards, prizes, back pay, reported tips, retroactive pay increases, and payments for nondeductible moving expenses. As you can probably gather, supplemental wages more or less function as a catchall for income paid by your employer or [...]
This post has to do with what you can contribute in the realm of the three most common types of retirement accounts, those being the traditional and Roth individual retirement accounts (IRAs) and 401(k) plans. Generally, people that rely on an IRA to save for retirement aren’t covered by a 401(k). Conversely, those that rely [...]
This article deals first with Form W-4, Employee’s Withholding Certificate, and then gets into the specific types of taxes that are withheld in regards to employee wages, salaries, and tips. As usual, there’s the disclaimer that this article is not an exhaustive treatment of this subject. Specifically, this article primarily goes into the purpose of [...]
When people say the word “employment” they mean that they work for a living. That’s the colloquial definition. When people talk about their employer, they mean the person or company from which they derive income due to labor. However, these colloquialisms don’t necessarily correspond to the tax definition of what an employee is. This differentiation [...]
The self-employment tax seems to lend itself to an intuitive definition. What is the self-employment tax? It’s a tax on the self-employed. Who pays the self-employment tax? The self-employed pay, clearly. However, there’s more to this than meets the eye due to the nuance associated with the nexus of real life and arbitrary rules. This [...]
https://www.complexbuilders.com When disaster strikes just know that the government has your back. Don’t believe me? Well, the IRS offers some easing of your potentially cataclysmic loss through the tax code, specifically taxpayer disaster relief. This allows you to keep more money in your pocket rather than paying it to Uncle Sam. I suppose the idea [...]
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