Useful tax tips and information from Jerry Coon of Action Tax Service.
Jerry Coon, Enrolled Agent Taxable Social Security income There are few items on a tax return that are more confusing or more difficult to explain to taxpayers than that of taxable Social Security. Prior to the late 1980s, Social Security was not taxable. Tax-free income is the best deaa still too good of a deal, because the law was changed to tax up to 85% of gross [...]
Non-taxable fringe benefit disappearing Jerry Coon, Enrolled Agent A non-taxable fringe benefit that appears to be disappearing is the employer-provided vehicle. This type of fringe benefit is called a Working Condition Fringe. It is non-taxable to the employee, because the expense is a deductible business expense whether the employee or the employer is paying for the [...]
Jerry Coon, Enrolled Agent Healthcare providers declare profits, increase rates You wonder what the thought process is sometimes when you read a headline like we read last week. One of the largest health insurers in California, Anthem Blue Cross, a subsidiary of Indianapolis’ Wellpoint Inc., declared record profits on one hand and then on the other hand announced it was [...]
Words on tax refunds Jerry Coon, Enrolled Agent The tax season is well under way. As is usually the case, each tax season takes on a flavor of its’ own. Some tax seasons are known as early filing tax seasons. Everyone’s refund seems to be large and they want it today. We find that some seasons have so many changes that affect their tax returns; it seems that people [...]
Jerry Coon, Enrolled Agent What exactly can be done if you receive a 1099-MISC as a subcontractor when you think you should receive a W-2 as an employee? Receiving a 1099-MISC is not always a negative, but as my discussion of last week pointed out, we just have to say the tax implications are immense. But, regardless of the tax consequences, does the Internal Revenue [...]